ABSTRACT

SUBMISSION DATE:
25TH MAY 2023
WORD COUNT: 3000

Student ID: S220732

LSC UOS BA IN BUSINESS

TESCO
Literature Review
Student ID: S220732

Table of Contents

1.0 Abstract ………………………………

2.0 Introduction ………………………………………………………
2.1 Definition of employee motivation ………………………………
2.2 Types of employee motivation ……………………………………
2.2.1 ……………………………………………………………….
2.2.2 ……………………………………………………………….
2.3 Model of employee motivation …………………………………..
2.4 Key aspect of employee motivation ……………………………
2.5 Organisational performance …………………………………….
2.6 Key Drivers for organisational performance ……………………
2.7 Impact of employee motivation on organisational performance …
Conclusion …………………………………………..

● TOPIC:
Evaluating the impact of employee motivation on organisational
performance in Mid-sized UK grocery retail sector – A Case study of
Sainsbury’s

● AIM:
To evaluate the impact of entry-level employee motivation on
organisational performance in mid-sized UK retail grocery sector – A
case Study of Sainsbury’s

Objectives:

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● To identify the key aspects of employee motivation

● To evaluate the key drivers of employee motivation in the UK
retail grocery sector
● To identify the impact of entry-level employee motivation on
organisational performance for Sainsbury’s UK
● To make recommendations to enhance entry-level employee
motivation and organisational performance in UK retail grocery sector

1.0 Abstract
To fully comprehend the factors that performance management tends
to change, defining performance is essential to understanding the
notion of performance management.
The performance is described in such a way that the accomplishment
of the goals is quantifiable and has a significant implication, namely,
how individuals decide to accomplish the goals. The performance
then refers to the method and manner of action used to accomplish the
predetermined goals. Competence should be integrated into the
process of producing results, which he refers to as a mixed model of
performance management.
Goal congruence maintenance is another crucial component of
organisational performance management. Organisational and personal
goals are synchronised through performance management. The most
fundamental objective of performance management is to align
organisational and employee goals. This can be done by translating
higher-level corporate objectives to lower-level organisational
objectives. Lower-level objectives shouldn't be predetermined; rather,
management and staff should agree on the objectives that should be
accomplished through open communication.
Performance management may be one of the primary components of
the control system. Most workers demand freedom without direct
management while also expecting top bosses to provide them with

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direction and incentives at work. As a result, performance

management techniques could lead to developments. Additionally, by
making certain adjustments to its procedures, it might move in the
direction of strategic development and make indirect employee
control easier by articulating a clear goal (Haerifar, 2011).

2.0 Introduction

Tesco is a top international retailer that provides customers with food

every day at reasonable, healthy, and sustainable costs. One business
that employs leadership in the retail sector and performance
management techniques to boost profitability is Tesco.
It was established in 1919 in East London and immediately began to
sell food, clothing, and banking products. The first supermarket was
opened in Maldon, Essex, during their rapid development during
which they bought new locations (Tesco, 2022).
Tesco has since grown all over the world. To accommodate various
client needs, it presently has over 2,200 stores, including
hypermarkets and Tesco Express locations. Tesco is a corporation that
also provides alternative products and services like internet shopping,
banking, and insurance. Tesco has grown to be the largest retailer in
the United Kingdom and one of the top retailers globally, operating on
three continents, with net profits of over £3.4 billion.
Tesco's expansion has led to a global workforce of more than 468,000
"employees." Tesco needs employees that are driven, adaptable, well-
trained, and aware of customers' needs to support its growth. The
company supports Tesco's employees in their many positions and
levels, from customer service representatives in stores to department
managers, from warehouse staff to office and logistics personnel.
Tesco understands the significance of employee motivation to the
sustained success of the business.

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Their offerings are built on quality, providing healthier alternatives,

and enhancing packaging to make products easier for customers to
recognise. In terms of revenue, Tesco is ranked second in the nation.
2.1 Definition of employee motivation
Employee empowerment and confidence growth are essential for a
productive workplace because they encourage workers to perform to
their fullest potential.
This demonstrates the employee's commitment to their work,
involvement in everyday tasks, and drive to accomplish both
professional and personal goals (Jaiswal, 2022).
Employee motivation is crucial for improving productivity,
dependability, and creativity at work. Helping the business during
challenging times promotes employee satisfaction and increases the
organization's lifespan.
2.2 Types of employee motivation
Employee motivation comes in two types intrinsic and extrinsic. The
intrinsic type refers to the internal forces that influence employee
motivation. Extrinsic motivation, on the other hand, refers to the drive
that comes from outside sources (Jaiswal, 2022).
2.2.1 Intrinsic motivation
Employees who are self-motivated to finish a task to reach their goals
and perform better do not need any additional outside pressure to do
so. This is known as intrinsic motivation. This element is for those
who enjoy providing the best results through getting excellent results.
A competent employee who is motivated by intrinsic learning will
focus on education and professional development at work to learn
new information.
Employees that are intrinsically motivated to be creative develop their
skills and apply their enthusiasm to their work.

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Employees are inspired by their leaders to work harder and appreciate

their value to the company. Offering people, the option to select has a
bigger impact, it has an impact on how they carry out their everyday
tasks. By assigning them challenging and demanding duties, he shows
them respect and preserves their expertise.
When an employee has a motivated mindset, he is inspired to adopt a
new way of seeing things, which improves communication. These
workers are knowledgeable and have the tools needed to increase
social participation.
Employers may foster a pleasant and productive work environment by
using intrinsic motivation. It aids businesses in creating a working
environment that changes to meet the needs of the employees. It aids
managers in comprehending the personalities of their staff. Finally,
because the employees are recognised and valued by the business, it
increases the efficiency of the organisation.
Tesco encourages teamwork and rates individual work as intrinsic
motivation. The corporation provides employees with a sense of
belonging by allowing them to join a union and by offering the
security of employment contracts, as well as pension and sickness
plans. In addition, it guarantees worker health and safety. It provides
them benefits like a consistent monthly wage, a restaurant, and
lockers for their possessions. The grading system also promotes the
value of praising accomplishments and recognising employee
contributions. The Tesco firm provides career advancement chances,
personal growth plans, skill and talent recognition, and promotion
opportunities.

Extrinsic motivation is the practice of encouraging workers to go

beyond their comfort zones by using the threat of reward or
punishment.

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Employees are motivated by their affiliation with the team, which

encourages them to succeed.
The incentive to succeed provides the gratification that an employee
receives from completing his or her goals. Because this sort of
motivation has deadlines and goals, employers support their use.

From this, it becomes clear that employees who are driven by the
accomplishment of the objectives become responsible for the
accomplishment of the objectives, creating a sense of
accomplishment.
The incentive that motivates a worker to perform at work is referred
to as the reward.
Extrinsic motivation benefits businesses by providing personnel with
opportunities for growth and retraining. Encouraging teamwork aids
in maintaining a favourable relationship between teams. Employees
who receive rewards for their work are more likely to be satisfied with
their jobs.
At Tesco, extrinsic motivation is accomplished through the incentive
system, which boosts output.
The desire to help others may be one of these factors, along with the
desire to advance personally or get a promotion. A person could be
inspired to work professionally not for the money but because they
enjoy what they do.
Tesco runs an employee satisfaction survey every year, giving
workers the chance to share their thoughts on their jobs. The survey's
findings encourage employees to work harder by providing the things
they are missing (CareersHelp, 2019).

2.3 Model of employee motivation

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Abraham Maslow's hierarchy of needs theory is one of the most well-

known needs theories. According to Maslow, motivation results from
an individual's efforts to meet five basic needs: physiology, safety,
sociability, esteem, and self-actualization. Maslow contends that these
needs can lead to internal pressures that have an impact on behaviour.
Humans require certain physiological demands to survive, such as air,
food, drink, shelter, clothes, and sleep.
Sense of security and well-being needs are included in the category of
safety needs. All these things are included in safety needs, along with
protection from accidents, injuries, and their negative repercussions.
Social needs, also known as love and belonging, describe the desire to
have a sense of acceptance and belonging. People need social
interaction to prevent feelings of isolation, depression, and loneliness.
Intimacy, family, and friendships serve to satisfy social demands
(Vaughan, 2020).

Here, the motivational theories used by Tesco will be demonstrated.

1. Maslow's Hierarchy of Needs:
A. Physical \ basic needs: Tesco sets up a well-kept workplace, pays
employees on time and fairly each month, offers nice amenities like
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staff eateries, and even offers a private locker for each employee to
store their personal items.
B. Security needs: Tesco provides official job contracts and health
insurance.
C. Social needs: Tesco has made it possible for teamwork at various
organisational levels and permits retail personnel to function as a
team. Tesco also provides discounts and exclusive deals on
amusement parks and gym memberships for its employees.
D. Self-esteem: Tesco emphasises self-respect and respect for others
while praising diligent staff, celebrating accomplishments, and
praising hard work.
E. Self-fulfilment: Tesco provides employees with a personal
development plan that allows them to advance their abilities and
skills.
2. Herzberg theory
Tesco pays attention to hygiene factors and enables satisfiers, which
can be seen by elevating employees, recognising employees, and
providing opportunities for personal growth as motivating factors.
Tesco also satisfies security and social needs while enabling satisfiers,
and it also provides employees with the chance to participate in
organisational decision-making. Tesco also employs this approach by
using a yearly poll called Viewpoint to gauge employee happiness and
give employees a chance to voice their opinions on virtually every
element of the workplace. As a result, Tesco may use the statistics to
ensure that they are providing the correct incentives for its staff.
3. Adam`s Equity theory
Tesco implements this notion by using an equitable and fair
compensation structure.
1. Share our achievement:
a. Successful actions:

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Tesco provides employees with a complete year of service and who

act in the company at the end of the fiscal year.
b. Save as you earn: Tesco offers employees the ability to save £50
every four weeks for three to four years after one year of
employment. Employees can choose to redeem their savings as a
tax-free incentive or take them as cash anytime they wish.
2. Staff Privilege Card: This employee loyalty card gives a 10%
discount on most Tesco goods.
3. Recreation: Tesco provides staff employees with discounts and
exclusive deals on theme parks and gym memberships. Based on the
foregoing, it can be shown that Tesco employs one of the best reward
systems, namely business reward quotas. As a result of these rewards,
most Tesco employees feel a sense of belonging and that the firm
genuinely cares about them. Employees know when they are
performing better, which will raise Tesco's profit and employees will
receive bigger dividends, making it one of the finest motivating
systems (share programme).
4. Tesco boosts its staff members' self-efficacy by providing them
with numerous opportunities for training and growth, according to
Bandura's theory of self-efficacy. Every Tesco employee gets access
to leadership development opportunities as well as the job-specific
training they require. Additionally, it should be remembered that
Tesco opened its Asia Academy in South Korea only lately (in 2011).
Because of this facility and the approximately 24,000 employees it
has graduated throughout Asia, it is clear how crucial it is for Tesco
employees to increase their self-efficacy.
5. The theory of self-determination: Tesco employees are given the
chance to train in a variety of fields and at various levels, which
demonstrates the application of Maslow's Hierarchy of Needs theory
and the self-determination theory at the same time by enabling
employees to enhance their performance and skills to obtain a better
position within the organisation. According to the self-determination
hypothesis, training will improve an employee's performance, which
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will constantly encourage him to train more and perform at a higher

level to hone the talents he already possesses and raise his intrinsic
pleasure. According to Maslow's Hierarchy of Needs theory, when an
employee trains harder and performs better, this raises his position
within the company and causes him to move up the hierarchy of
needs, eventually reaching the level of self-esteem.
(Schosser, 2022a)
2.4 Key aspect of employee motivation
Employee motivation is one of the most important aspects that an
organisation must include, according to Parameswaran (2019).
The initial step is to communicate. Making a friendly conversation
with the staff demonstrates to them that someone from the company
values them and makes them feel valued. It becomes a more
successful and enjoyable place of work the more they communicate
with one another.
Regardless of experience, every individual who works for a firm
wants to be valued and rewarded for the contributions they make. A
small act of appreciation can inspire an employee.

The aesthetics and comfort of the workplace must be upgraded to

increase productivity. A comfortable workplace has the ideal
atmosphere. Even natural light boosts workers' productivity.
Utilising human resource management strategies, motivation is how
employees are made committed and given mental stimulation. It is
among the most crucial duties of managers. It is feasible to raise
overall results, develop the organisation, and accomplish goals by
raising service standards by inspiring staff (Leroy et al., 2018).
Managers inspire their staff to grow in self-assurance and
commitment to the workplace by using a variety of motivational
tactics. Giving prizes to employees is the most popular strategy, and
the rewards that employers receive from their workers include the

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following features. Employee performance is strong, and production

rises. Motivated employees build enduring bonds with devoted clients
and their employers. They can contribute to organisational decision-
making and improve any organization's assets (Kramar and Syed,
2012).
The use of numerous theories of motivation that scholars have created
based on the requirements of organisations is a commitment made by
managers. Two motivating theories that Tesco uses and finds to be
quite beneficial in the workplace are outlined below.
Tesco tries to increase employee pay and provide an annual bonus
based on increased performance. It first aims to meet the employee's
physiological and safety needs (Leroy et al., 2018). Then, Tesco
concentrates on creating a better working environment, offering a
work-life balance, and promoting health and safety at work as well as
their general well-being. After a specific period, they also make their
employees' jobs permanent. The company cares deeply about the
safety, health, and other issues that affect their workers daily and
works to reduce their anxiety as much as possible by meeting their
social needs.
From the perspective of Tesco's success, they offer formal and
informal assistance in a variety of ways for the need for esteem and
self-actualization (Kramar and Syed, 2012).
Aligning individual aspirations with organisational goals is crucial for
successful teamwork. Tesco builds and inspires teams for them to
focus on their tasks and accomplish the necessary results. Tesco
encourages its staff members to build strong bonds with one another
to work as a stronger team. They give their staff members the chance
to interact, build trust, and express their views and viewpoints to one
another for the benefit of the organisation (Blum and Wall, 1997).
Here, Tuckman's concept is utilised to describe some strategies for
fostering teamwork.

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Forming is a technique for teaching employees the knowledge and

skills necessary to execute their jobs. Most employees here make
every effort to learn and increase their expertise for their benefit.

Employees get to know one another and develop positive working

relationships through the storming process. They are directly provided
by managers or leaders to address issues and disputes to increase
performance (Blum and Wall, 1997).
Employees who have undergone norming are more aware of their
roles and duties and concentrate on both individual and collective
performance to meet organisational objectives. Tesco encourages
employees to work harder and more effectively.
In the performing stage, workers carry out their duties to satisfy both
organisational needs and requirements as a whole and their personal
organisational needs and requirements to live up to Tesco's
expectations of them.
2.5 Organisational performance
Analysing an organization's performance concerning its aims and
objectives entails doing such. To put it another way, the organisational
performance includes actual outcomes or results in comparison to
expected outcomes. The study is driven by three key outcomes:
market performance, financial performance, and shareholder value
performance (Nordqvist, 2017).
For instance, Tesco aims to provide a sense of direction by taking tiny
steps towards a specific objective.
Tesco's objective is to reach more of the right customers, boost
productivity, enhance customer service and experience, reduce
employee turnover, develop, and retain a strong corporate culture, and
increase earnings by 6%.
A - Agreed/Achievable - All Tesco employees accepted the deadline
that was proposed.

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R - Realistic - The goal must be practical considering available

resources, including money and people.
T - Time - A deadline should be established to accomplish a particular
objective, such as 6% more revenue in 12 months.
As a retailer, Tesco has goals and objectives. Their main purpose is to
turn a profit but to do this, they must accomplish objectives like
making customers happy and providing better offers than their rivals,
among other things. Tesco offers promotions for its products on its
website, for example. Tesco has been a successful company, and I
think that's because they set SMART goals that help them see where
they're going.
A corporation can inform the public about its service by using
advertising. Tesco employs this technique to advertise its product and
demonstrate its superiority to its rival. Since television is a common
medium for customer interaction, advertising on television is another
opportunity for businesses to introduce themselves to consumers.
They are a retail business that sells goods for a profit; thus, this is
another significant objective. They accomplish this in several ways,
including customer service. The support and guidance a company
offers to consumers who purchase its products are referred to as
customer service.
Tesco has a variety of numbers for various inquiries and offers good
customer service. This demonstrates to them your concern for them.
Additionally, if someone needs assistance when shopping and it is
provided, that person will spread the word to their friends or relatives
about how great it is to buy at Tesco. This will increase Tesco's client
base and help it maximise profits.
Financial performance includes the health of the company's finances,
the return on assets and additional value invested, and changes in
liabilities.

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Gaining or losing market share, updating newly developed products,

and products with rising sales are all examples of how the market is
performing.
The way a firm benefits its shareholders, how it measures its success,
and how senior management prioritises are all factors that contribute
to shareholder value.

For a firm to remain competitive for a longer period, performance

management and measurement are used to improve the quality,
efficiency, and control of available resources (Mackie, 2008).
Tesco's goal, according to Burton (2016), is to stay in business longer,
dominate the supermarket industry, and provide high-quality goods
and services at reasonable costs and at rates that are less expensive
than those of its rivals.
Tesco only sought to provide better customer service and high-quality
goods. Customers can provide service feedback online, and using this
system, they improve by five points. By launching new brands like

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Hearty Food Co. and ready meals at lower rates, they hope to stand
out from the competition, make clients feel special, and draw in more
customers. Customers remarked that Tesco helps them live a healthy
life in May 2017 when they launched a campaign to change a tiny
product with minimal fat, salt, and sugar content; it received the
highest score since it was developed (Tesco plc, 2022).
Their plans aim to enhance savings by £1.5 billion through cost
reductions. They have a culture that promotes saving so they can
make investments in new products for their clients. They also offer
devices that "scan while you shop," saving both parties time and
money. They generated savings of £50 million while enhancing
facility management, transportation, and media services (Tesco plc,
2022).
Their most crucial strategy is to pay attention to consumer needs and
respond creatively. As the percentage of vegetarian customers at
Tesco rises, the retailer introduces an exclusive Wicked Kitchen line
of plant-based meals. Technology investments are essential for
enhancing operational efficiency, enhancing the customer experience,
and generating income from services like shopping carts and delivery
(Tesco, 2022).
The outcome of business operations throughout a year is reflected in
the financial record, which aids employees in demonstrating the
impact of all prior decisions and what they may change going
forward. Making a return to shareholders with a specific interest if the
company does successfully is sometimes the most crucial aspect of a
corporation. Tesco measures financial and performance views using
the steering wheel (Marr, 2018).
No of the size of the organisation, people are crucial to organising
performance. Even if the managers create the plan and the procedure,
the employees create and implement the written material. The
organisation cannot operate effectively if its employees lack
organisation and motivation (Bourne and Bourne, 2011).

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Tesco is in charge of employment. There is always a chance for

workers to be treated with respect at work (Marr, 2018).
People first submit an online application for the position before
meeting with the manager for an interview. They join the company as
employees if they are qualified for the position. Tesco provides
employees with the chance for training and growth after they are
hired, as well as a 10% store discount, vouchers and share schemes
(Cariera Tesco, 2018).

2.6 Key Drivers for organisational performance

Effective leadership, a purpose, ongoing education, and inclusivity
are the four key components of excellent organisational performance
(Rische, 2023).
The most crucial factor is effective leadership, which is connected to
powerful leaders who must be fully aware of how their actions and
behaviours affect an organisation.
The second most crucial performance aspect is purpose. Every
manager must ensure that everyone on their team knows why their
work is important and has a purpose. The ideal leader encourages
everyone to feel proud of their contribution to the company's
overarching objectives.
Performance clearly also depends on ongoing education. Every
employee needs to know exactly what is expected of them. Everyone
must continue receiving training and assistance to advance in their
roles after this is accomplished. Leaders need to be patient and
persistent to do this.
Performance is ultimately driven by inclusion. Fairness and
participation are the two most crucial aspects of inclusion in terms of
performance and motivation. Fairness is achieved by valuing people's
differences. Performance is driven by distinct strategies used by
different employees. Performance is also influenced by allowing

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involvement involving different personnel in major decisions or

overall procedures.
Due to its flat organisational structure, which enables every employee
to contribute to the success of the company, Tesco has been able to
adopt a democratic leadership style. Tesco's management and
leadership approach has shown to be effective in assisting the
company's ongoing growth. Tesco is dedicated to assisting its
employees in locating the position that best reflects their training.
Management is aware of this and attempts to be accommodating to
help staff adjust to any strategy change, whether it be due to religious
needs, assistance for sickness or handicap, or for any other cause.
Tesco's primary goal is to serve its customers, communities, and the
earth a little bit better each day. As a result, they constantly put their
customers first while also considering their obligations to the
communities they work with and to society (Tesco PLC, 2023b).
Tesco, as one of the biggest employers, is dedicated to continuing
education to support the creation of the next generation of talent and
provide staff with the tools necessary for success.
Their personnel, who supply everything required for their clients, are
the lifeblood of their enterprise.
The workforce is improved and retrained to meet both the demands of
today's jobs and those of tomorrow's emerging jobs. In addition, it
helps young people develop the employability skills they need to
launch successful professions (Tesco PLC, 2023c).
Everyone is welcome at Tesco, which embraces inclusivity. Everyone
is treated equally and with respect; this fosters a sense of belonging
through valuing originality and uniqueness.
Tesco's core values have always been diversity and inclusivity. It is
ingrained in their core beliefs. People are handled in accordance with
their preferences. NE is dedicated to supporting its employees'
success and constantly wants its staff to feel free to be themselves at
work.

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The Tesco group is creating an inclusive workplace where employees'

cultures, personalities, and preferences are actively celebrated. This
will help the company succeed and reflect the variety of the
communities they serve.
Tesco is totally dedicated to creating a more diverse workplace where
all employees have equal access to training networks about the value
of inclusion as well as recruitment, learning, and development
opportunities.
They build a staff that represents their clients globally as well as in
the UK. Their objective is to draw in and welcome a wide variety of
candidates from various backgrounds.
Tesco has a zero-tolerance policy for harassment, discrimination, or
harassment of any type since all employees are treated equally.
They must establish and uphold a culture that does not tolerate
harassment in any form, whether these acts are committed by a Tesco
colleague or supplier partner against a Tesco employee, to ensure that
they continue to build a truly inclusive workplace that actively
celebrates the unique differences of its employees.
Employee networks empower businesses in making inclusive
decisions for employees, clients, and the community to advance
equity within the organisation and support their ambitions for
diversity and inclusion (Tesco PLC, 2022).

2.7 Impact of employee motivation on organisational performance

An organization's development is directly correlated with how
motivated its workforce is. There are several indicators that
demonstrate how employee motivation affects the effectiveness of the
organisation as a whole and its overall development.
Employees who are driven focus their efforts on accomplishing
organisational objectives and generating benefits. Achieving their
objectives and appreciating their labour gives them satisfaction.

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Employee motivation is demonstrated in organisational performance

by factors that increase employee productivity, increase profits,
decrease employee turnover, improve quality of work life, where the
quality of the product is directly related to the quality of work life,
and emphasise customer satisfaction.
Any organisation must prioritise employee motivation. It makes it
possible for businesses to grow and effectively utilise the skills of
their workforce. Every business must work hard to maintain the
motivation and engagement of its staff (Rahaman, 2020).
One of the best methods to inspire employees is through employee
recognition. Employees feel more engaged and motivated when
suitable acknowledgement attempts are made.
Organisations can most effectively recognise their personnel by using
online recognition systems. These tools correctly and quickly identify
employees, which is essential for effective employee motivation
(Recognise, 2022).

Conclusion

One of the greatest supermarkets for treating workers well and

providing for them in any way is Tesco. They offer monetary and non-
monetary incentives to keep employees motivated and consistently
seek out the most qualified candidates to improve performance
assurance (Blum and Wall, 1997). The organisation also offers
training and learning opportunities to enhance their abilities and

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skills. They pay close attention and care about maintaining their
employees' happiness to get the most out of them in the long run.

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