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From reading the previous article on "break the model on employee behaviour", it can be seen that several issues rose upon the subject due to lack of understanding within mangers. For this reason it is vital to narrow the research in order to specify what information is needed. Therefore a depth literature review will be conducted which will focus on Tesco specifically. This is done to narrow the research as the previous article focused on different corporation. The purpose of the research is to examine "what has Tesco been doing over the years to gain high employee productivity and customer satisfaction".
The terms, employee motivation can be defined in several different ways as every author will have a different view upon the subjects. For this reason different theories and sources of motivation, employee productivity and customer satisfaction will be carried out to gain a deeper knowledge and understanding of the ways different individuals could be motivated and how that lead to customer satisfaction as well as how Tesco go about achieving this.
The research approach which will be used to give an appropriate answer to the topic will mainly be secondary research. However in order to gain secondary research the following steps of thesis statement, defining the key concept and creating the search statement will be carried out. This is due to being critical when finding books, magazines and journal article as well as make a direct way to understand the research and capture the reader's attention.
The thesis statement for the topic question of "What has Tesco been doing over the years to gain high employee productivity and customer satisfaction" is "Tesco uses pay as their primary motivator and aim to provide the best possible value for their customers' money, to achieve high employee productivity and customer satisfaction. This is why they're voted the best supermarket in the UK up against Sainsburys and Asda".
The key concepts of the topic are
Creating a key concept will link in helping to create the search statement. On the other hand the following three concepts are used to write the search statement:
Tesco AND employee productivity
Tesco AND customer satisfaction
Tesco OR Tesco plc
Employee productivity AND customer satisfaction NOT employer satisfaction.
These strategies will be used to find secondary data which is relevant to the topic. This will consist of books, websites, journals, newspapers, Tesco's annual report and text books for models and theories.
What has Tesco been doing over the years to gain high employee productivity and customer satisfaction?
The main reason of using secondary data is relatively because it is "quickly available and can therefore help to provide the first answers to some of the questions asked in a relatively short timescale" (Evaluating Socio Economic Development, 2006). For this reason different theories used by Tesco to motivate their stuff will be carried out as well as a comparison between how other super markets such Asda, Sainsbury etc gained customer satisfaction. This is done in order to provide a basic understanding of how these theories and research influenced the way in which Tesco operates today.
The time spent on collecting the relevance research upon the topic is therefore likely to be considerably less than the time spent on using primary data collection. Secondary data will be beneficial in answering the topic question as it provides a basis for comparison for the data that is collected as well as being less costly (HENRIK TOFT S0RENSEN, 1996).
The main drawback of secondary data is related to the fact that their selection and quality, and the methods of their collection, are not under the control of the researcher (HENRIK TOFT S0RENSEN, 1996). This is due to the fact that every research is conducted with a specific purposes. This means there will be a wide range of different source, which are sometimes impossible to validate. This could also take up sometime to identify and confirm the quality of the data which will be appropriate in answering the topic upon (Michael G. Maxfield, 2010) "What has Tesco been doing over the years to gain high employee productivity and customer satisfaction".
Another research approach that would be used in the future to help answer the topic question will be the grounded theory. This will help to analyse the main feature of different motivational theories which means when comparison is made it is easy to conclude and support ample evidence to back up statements (Denscombe, 2007). Grounded theory will benefit this particular research as the method produces a variety of rich qualitative data (Chakravarthy, 2003). However the advantages of grounded theory could also be its main disadvantages, for examples since grounded theory encourages systematic detailed analysis of the data and provides a method of doing so it also tends to be outdated and therefore not relevant to the modern industries. Therefore to overcome the era, journals, broadsheet newspapers and relevant websites would be used to update the information. The collecting of journals would be obtained from databases the university provides as well as the library. Websites would be used to find the relevant information about Tesco, for example how they motivate their employees as well as how Tesco gained a higher market share to its competitors. Books will also be used to find theories and definitions to motivation which will be available online and library. The main reason why grounded theory will not be used to answer the question is due to being complicated as well as being time consuming.
Although secondary data is the suitable method of collecting data that will help in answering the topic, primary data should have also been used as the information conducted is specific, up to date and relevant to the topic question. This should have included interviewing tesco managers or telephoning, create quetionnaire in order to gain customer's feedback, observing employee's behaviour etc. However, the main reason why primary data will not be conducted in answering the topic question is due to the fact that primary sources are usually costly and time consuming than collecting secondary data (Sak Onkvisit, 2009).
Every organisation requires a number of resources, techniques and aims in order to succeed. As for Tesco, it will start from it's capital to it's stores to employees and customers, all these are essential element needed within Tesco's inorder to succeed. While these factors are significant, motivation is also recongised as a vital element within every organsation. According to ultimate resource "a positive motivation philosophy and practise should improve productivity, quality and service" (the ultimate resource, 2002). This illistrates that managers are able to encourage their employees to work towards a common goal, which then leads to the firm being more productive and enabling enhancment. On the other hand the term motivation has become a discussion topic for many years and yet it remains a complex. Peter F. Drucker asks "what motivation is needed to obtain peak performance from the workers?" He then states "the answer that is usually given today in industries is 'employee satisfaction'", however "employee satisfaction would still not be sufficient motivation to fulfil the needs of the enterprise (Drucker, 1955). Mayo also argues that "the key factor in productivity improvement was the social relationship of the work group" (Mackay, 2006). This relatively links to Fran Tarkenton quote as he stated that "People don't change their behaviour unless it makes a difference for them to do so" (Fran Tarkenton, 1986).
Modern theories of motivation are considered to have grown out of the Fredrick Winslow Taylor study of scientific management as he states that "one best way work could be done and that the best way to improve output was to improve the techniques or methods used by the workers" (Taylor, 2005). He also argues that "humans as instruments or machines to be manipulated by their leaders" (Taylor, 2005). Within the mid 1940s, the introduction of several researches on employee motivation has introduce several theories illistrating factors that motivate employees. These include hygiene/motivator and the hieratchy of needs. Frederick herzberg classified his theory into factors which include pay, style of supervision and physical working condition. He then argues that "this must be right to avoid dissatisfaction, but increasing them above the appropriate level will not increase motivation" (Mackay, 2006). On the other hand, maslow categorised his needs into five primary level, which includes physiological, social, ego, safety and self-actualising needs. He then argues that in order to be motivated "each level must be satisfied to some extend before the next becomes dominant" (Mackay, 2006).
Based from the theories, it clear illistarted that in order for employees to be motivated they must receive something in order to encourge them to be productive towards enhancement. Manager must now take into count that applying these motivational theories without taking factors into consideration, could result in doing more harm than good. There are several ways of adopting these theories into workplace. According to Benham "promotion is also synonymous to career success where employees are given higher responsibilities or place on higher authority levels" (Benham, 1993).
As for Tesco, the company adopts these theories to motivate their staff. Tesco uses both maslow and herzberg theory within their work place. The following diagram shows how Tesco uses maslow's heirarchy of needs in order to increase productivity within their work place.
REFERENCE THE IMAGE
Tesco also aims to motivate its employes both "by paying attention to hygiene factors and by enabling satisfiers". For example, "it motivates and empowers its employees by appropriate and timely communication". It also holds "forums every year in which staff can be part of the discussions on pay rises" (The times newsapaper limited, 2010).
Tesco also believes that "business depends on two groups of people customers and staff" (The times newsapaper limited, 2010). Tesco also states that "It appreciates that staff are unique and have diverse lifestyles outside of work" (The times newsapaper limited, 2010). For this reason Tesco believes that if it "supports staff with a work/life balance and offers reward" it will create trust and respect. Tesco also recognised that by "valuing employees, providing realistic goals and an interesting environment for them to work in, it increases employees' motivation" (The times newsapaper limited, 2010). This is done through providing "flexible working, free or reduced rate health benefits, discount gym membership, competitive salaries, staff discount, and company share options" (The times newsapaper limited, 2010).
Every business may have have difference ways of motivating their staff. For example "Asda believes that for benefits to motivate staff, they must make employees feel valued and part of the company" (Golding, 2007). Asda has therefore enabled their staff to join in the overall success of the company. "It offers a sharesave plan which permits both full-time and part-time employees to buy monthly shares in parent company Wal-Mart at a 20% discount"(Golding, 2007). On the other hand, sainsbury belive that "awarding Sainsbury's gift vouchers and cards shows employees that their efforts have been recognised, and makes them more likely to keep performing at the same high level" (Sainsbury plc, 2009). Therefore "Sainsbury's gift vouchers and cards are brilliant motivators, encouraging staff to increase their input and enthusiasm in the future (Sainsbury plc, 2009). Where as the arcadia group limited belive that when a manager should be highly motivated as this will "encourages others to use their initiative and is renowned for his energy and for his attention to detail" (The times newspaper LTD, 2005).
This shows that different people are motivated differently and therefore one person could be motivated by promotion while the other by incentives. For this reason business should take this matter into consideration and understand the key difference that motivates each employee. As studies show that "a positive motivation philosophy and practise should improve productivity, quality and service" (the ultimate resource, 2002). This shows that customer service is a vital aspect within any business. Therefore if a firm lack a relationship with it's consumers it is at a down fall. For this reason competition is within every business. Businesses must achieve customer satisfaction in order to survive. This is done through providing high quality products as well excellent customer service. For example Tesco's aim is to Tesco is aim to provide the best possible value for their customers' money. And they state that they are determined to offer quality products, good services, attractive stores and low prices to their customers (Tesco PLC, 2006).
For the last couple of years Tesco has expanded it service rapidly, in order to gain differentitaion as well as customer satisfaction among it's competitor. This services include: insurance, loans, personal finance, mortagages, travel insurance, pet insurance, home insurance. Tesco also offers a services called telecom which includes Tesco internet, Tesco mobile, Tesco home telephone. Some Tesco store also has store pharmacy which has grown into one of the country's leading pharmacy chain (Tesco PLC, 2006).
Tesco has established a reputation for providing a great customer service. As for every business to find out customer's expectations and needs are crucial as these are the key element which will increase the sales and profit. Tesco has done this through their club card as this establishes customer's favourites buying. From this it has allowed Tesco to expand on their product range for example, Tesco value, variety of brand and organic brands. This is done to meet different customers' expectation as some customers are able to afford the high priced products where others can't. Tesco also provides other services to meet their customer needs and expectation by dealing with problems and complains quickly by having a good and clear communication system. Tesco also treat their customers with courtesy and integrity. By offering good customer service Tesco has build their reputation maximise their profit as well as being competitive. Tesco has done in such a way that its opens 24 hrs a day offering free computers to schools which has helped builds it reputation and gain customer loyalty.
Tesco created their club card in 1993 as a form of promotion which then bought customer closer to them. This is done through earning point from shopping and slowly are accumulated after a while which is then transformed into vouchers and is able to be spend at any Tesco store. This shows that Tesco's gain customer loyalty, as customer fell they are gaining more out of the shopping products they purchase. Tesco also uses different technique to increase their customer satisfaction this is done by frequently updating their customers with their current sale and among its competitor Tesco is cheaper than Sainsbury by 4% (Tesco PLC, 2006). However Asda uses different methods in gainig customer satisfaction this includes: introducing several different products into their range to meet the ever changing customer needs. They have also modified their merchandising to improve the consumer shopping experience as well as online shopping (Golding, 2007).
In order for Tesco to measure their level of customer service, they employee mystery shoppers who carry out in depth checks of customer's experience, which is then assessed and analysed whether customers find it easy to shop and enjoy shopping at Tesco.
In addition, if Tesco continues to provide excellent customer service, it will grow rapidly as satisfied customers are more likely to return and purchase more products and are also most likely to recommend their friend and family through word of mouth. As every business knows bad customer service are main subjects of gossip which could destroy the business reputation and loss customers and sales.
According to the NCSI-UK the records of customer satisfaction at Tesco has diped by 1% to 72 (NCSI-UK Fourth Quarter, 2010). Whereas Asda gains 4% to 79 and Morrisons is up 1% to 77.Â Tesco's decline coupled with Asda's big gain means that the customer satisfaction gap between the two has doubled from a year ago" (NCSI-UK Fourth Quarter, 2010).
Although Tesco has been defeated among its major competitor by satisfying its customers, it is however ranking the highest with a market share of 31.8% (TNS world planet, 2007). Whereas Asda is positioned at 16.8% and Sainsbury on the other hand is ranking at 15.8% as shown on the pie chart with other competitors.
Despite the amount of literature and research Tesco carried out into the most effective ways of motivating their employee, human motivation will always be complex and a subjective matter. So long as there is freewill, it is highly unlikely that any theory of motivation will work for all people. There is no grand motivation theory that can be applied to every person or situation and as such, the only way to truly motivate someone is to simply treat them individuals. Tesco would always be successful, despite the amount of work they put into being successful and profitable. So as long as they don't change for worse Tesco would always have the best reputation.
This assignment could have used wider sources to conduct information upon the topic. This could include conducting individual quantitative and qualitative data such as survey questionnaire interview and other sources of web address.