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The main target of any organization is to earn profit and for this it need to have many factors. One of the main factors of organization which plays a vital role in making profit is employees, which can also be stated as asset of a company. And we all know that it's a huge loss for any organization to lose an employee who is fully trained and had been working in the organization for a long period. Hence, an organization should always try to motivate its employees at work so that they give their best and don't think of leaving the job. If employees are motivated at work it not only helps in employee retention but also in increasing employee efficiency which leads to an increase in output. According to Winterton (2004) to establish an effective strategy for skill formation labor retention must be high enough for the average length of service provide a return on HRD investment.
Barrows and Powers (2008) conceeived that the term motivation is derived from 'motive' which means an idea, need, emotion or organic state that prompts an individual to action. There are many influenceing factors that control human behaviour and boost an employee to give the best fulfillment while meeting individual needs and emotions. Analyzing these factors and pleasing human needs helps to motivate an individual. Barth and Hayes (2008) opine that motivation is the employees' eagerness to perform effectively and to attain organizational goals while fulfilling some individual or personal needs. Bassett-Jones and Lloyd (2008) pointed out that motivation is the process of getting employees' need satisfied so that they adjust their personal objectives with the organizational objectives strategically.
Boella and Goss-Turner (2012) implied stress in case of service based industry, motivation is critical to ensure the chaimn of service quality and customer achievement. To behave successfully and challenge with other industries it is essential to have motivated employee base and maintain the standard service ranges. Endter (2011) excellent services provided by employees to advocate create a long-term positive experience and maintain customer loyalty. Demotivated employees deliver poor work which is not useful for the health of the organization.
Brenda and Hy (2008) articulate that building motivation for employees is possible by making of an environment those awards excellence at each level of activity. In Chan and Wong (2006) pointed the key factors for employee motivation that include job satisfaction, timely recognition, desired appreciation, adequate compensation and inspiration. Employee weakening in the industry is quite high. Charles and Marshall (2007) determined that the bad crash of employee demotivation in any industry is increase in staff turnover intention. Hence, keeping employees motivated is crucial for the extension, survival and maintenance of the business.
I am interested in this proposed area of research since it is somewhat similar to the experience I have gained while I working in a company for almost two years. I was well trained and I almost knew how to do all work perfectly but due to lack of motivation and lack of fair treatment at work I resigned from that job.
The company that I have chosen to do my research is Tesco, since it is the third largest grocery shop worldwide and second largest in making profit after Wal-Mart. They have the largest domestic market share as well as international market share with around 3 billion in revenue. Tesco was founded on 1919 by Jack Cohen from a market stall in London's east end. It has stores in 14 countries and it is one of the leader grocery markets in the UK. The name Tesco was founded in 1924 and the first Tesco store was opened in 1929 in Burnt oak, Middlesex. Originally Tesco in UK only focused on grocery retailer but now it has increasingly diversified into areas like selling of books, electronics, clothing, furniture, petrol, telecoms etc. There are more than 2900 Tesco stores altogether in 14 countries.
The main aim of this report is to investigate the human resource operation of one of the busiest and high pressured business organization in analyzing the factors which affect employee retention and how management handles such problem in order to decrease high employee turnover. Tesco's customer services have been the role model for UK retail industry. This is because the company very intelligently motivates its employees which raise the customer's satisfaction level. The knowledge on this subject is widely available, but is fragmented. This research study will allow identifying and understanding the human resource techniques used by the company for employee motivation.
1.3. Research objectives:
To review the existing literature on the techniques used by retail sector for employee motivation
To conduct a survey to gauge the motivation level of the employees
To conduct interviews from the store managers asking about the techniques used by them for employee motivation
To evaluate the contribution of employee motivation towards customer satisfaction.
1.4. Research questions:
This research will mainly focus following questions:
What is employee motivation?
What are the various concepts and theories of motivation which help in employee retention?
What are the factors which creates obstacles in employee motivation and increase high turnover?
How are these obstacles addressed by the management and what are the factors that management should follow in order to motivate its employees at work?
2. Literature Review:
The literature review is a description of what has been previously researched by different authors. It may have critical perspective of either chronologically or comparing similarities and differences between authors and management schools of thought.
In UK, as viewed in a recent survey, Tesco in recent years aimed at reversing poor performance in its UK market. One of the most important reason, customers was too abashed to put the cheap and cheerful items in their trolleys.
The main aim of this part is to review relevant literature on employee retention through motivation at work. According to Winterton (2004) there are three main reasons why employees leave work: retirement, dismissal or voluntary resignation. The first two, retirement and dismissal, are heavily influenced by management, whereas the last represents a personal decision to quit work. Hence, voluntary resignation is mainly occurs when an employee gets better opportunity in another job. Most conceptual models of voluntary labour turnover assume that job dissatisfaction is the root cause of labour turnover, and there is considerable evidence of the negative relationship between employee turnover and job satisfaction (Brayfield and Crockett 1955; Employee turnover is a high loss to an organization because the institution of personnel and development estimated that it cost £1426 in advertising, recruiting and training cost for each manufacturing operative who leaves (IPD 1997). Hence, management should focus on motivating employees cause if one employee leaves another had to be hired, which will again require cost of hiring. Suggested that employee motivation is very essential for the success of the companies, mainlyly during the current technological changes .Managers should arrange their employees all the necessary tools such as coaching, training program, agreement to motivate the employees for a better performance (Chun and Soo, 2008). There should be active administration and guidancewhich will guide the employees to strive for the organizational ambition.
One of the main factors enhancing employee retention is talent management. As identified by Lewis and Heckman (2006) talent management focuses on sourcing, developing and rewarding employee talent. Talent management in an organization must include performance management, leadership development, workforce planning, and recruitment of the best talents in the industry. The acquisition, utilization, development and retention of the human capital are the most important task of the human resource management in today's organization. Today the human resource department of an organization has the responsibility to implement strategies and policies that would help the organization to fulfill the aims and objectives of the organization thus organizations that implement talent management process are more likely to develop and effectively manage their human capital which ultimately leads to the growth and development of the organization (Handfield, 2001).
Hence, labour retention strategies should therefore focus on these four areas (Winterton, 2004);
Job satisfaction: Job satisfaction is the result of a wide range of factors that affect quality of working life and the most influential examples are Maslow's (1943) hierarchy of needs and Herzberg's (1968; Herzberg et al. 1959) theory, in which motivator, the presence of which create job satisfaction, are distinguished from hygiene factor, the absence of which produce job dissatisfaction (Winterton, 2004). Vroom's expectancy theory (1964), considered whole work environment and argues the individuals are motivated to work when they anticipate achieving what they expect from their jobs.
Maslow hierarchy of needs:
Psychological needs: These are the basic needs that every employee required for their survival. These include food, water and oxygen. Barth and Hayes (2008) opined that in employees in the industry also seek for salary, heat, air so as to ensure their survival.
Safety needs: Safety needs are concerned for a safe and secure physical and economic environment. Tesco provides the security of formal contracts of employment as well as pension and sickness schemes and the option to join a union to give people a sense of belonging. It ensures health and safety in the work place.
Social needs: Social needs deals with the needs for love and belongingness. Included here are the needs for friends and compassion. Supportive family. Tesco promotes team and group working at various levels. The company "Steering Wheel" assesses individual and group work and enables store staff to work as a team. Working conditions and home-from-home ethos encourage long service.
Self-esteem, confidence, achievement, respect of others, respect by others.
Friendship, family, sexual intimacy
Security of: body, employment, resources
Morality, the family, health, property
Breathing, food, water, sex, sleep, homeostasis, excretion
Lack of prejudice.
Acceptance of facts
Figure 1: Maslow's Hierarchy theory
(Source: Jfetcher, J., Fall, A., Gilbert, D. and Wanhill, S., 2007, p 85)
Esteem needs: According to Maslow once people being to satisfy their needs to belong they want to be held in esteem both by themselves and by others. Tesco value emphasise self-respect and respect for others and praise for hard work, its self estimation,360 degree feedback appraisal system help to recognize individual's contributions and importance.
Self-actualization: Tesco offers Personal Development Plans, recognition of skills and talents, opportunity for promotion and career progression programme. The options fast-track management programme provides a route for capable staff to reach higher levels. .
Bassett-Jones and Lloyd (2008) suggested that Maslow's ideas have been criticized for the lack of the conceptual matter. If special study is not undertaken, Maslow's theory of hierarchy of needs will appear to be correct. However, many researchers have opposed this theory and given their own criticisms which are as follows:
Maslow's hierarchy of needs is not permanent. These changes according to the situation.
It is not necessary that the needs of one category be strong at a time and the remaining remain unimportant.
Herzberg two factors theory:
Hygiene factors: These factors in contrast created dissatisfaction if they were absent or inadequate, dissatisfaction of their work do not lead to higher levels of motivation. Hygiene factors include working condition, quality of supervision, salary, status, job security, administration. It is those factors that are not strong contributors to satisfaction but that must be present to meet a worker's expectations and prevent job dissatisfaction.
Motivation factor: Tesco aims to motivate its employees both by paying consideration to hygiene factors employing satisfiers. It motivates and empowers its employees by relevant and timely communication, by assigning responsibility and involving staff in decision making. It holds forum every year in which staff can be part of the discussions on pay rises. It is those factors that are strong contributors to job satisfaction.
Figure 2: Herzberg two factors theory
(Source: Herzberg. F. (1974). Motivation-hygiene profiles: Pinpointing what ails the organization. Organizational Dynamics, 3(2), 18-29)
Expectancy theory: VROOM:
Vroom theory is based on individual's factors such as personality, skills, knowledge, experience and abilities.
The theory suggests that although individuals may have different sets of goals, they can be motivated if they believe that:
There is a positive correlation between efforts and performance,
Favorable performance will result in a desirable reward,
The reward will satisfy an important need,
The desire to satisfy the need is strong enough to make the effort worthwhile.
The theory is based upon the following beliefs:
Valence refers to the emotional orientations people hold with respect to outcomes [rewards].The need of an employee for money, promotion, time-off, benefits). Management must discover what employee's value.
Employees have different expectations and levels of confidence about what they are capable of doing. Management must discover what resources, training, or supervision employees need.
The perception of employees as to whether they will actually get what they desire even if it has been promised by a manager. Management must ensure that promises of rewards are fulfilled and that employees are aware of that.
Vroom suggests that an employee's beliefs about Expectancy, Instrumentality, and Valence interact psychologically to create a motivational force such that the employee acts in ways that bring pleasure and avoid pain.
Figure 3: Vroom's Expectancy Theory
Organizational commitment: The effect of organizational commitment on labour retention is emphasized in much of the turnover literature (Winterton, 2004). Satisfaction tends also to be consistently and strongly related to subjective reports of organizational commitment (Lee & Mowday, 1987; Williams & Hazer, 1986). Mayer and Allen (1991) distinguished three components of organizational commitment: affective, continuance and normative commitment.
1. Affective Commitment:
It is the most common type studied and refers to "an employee's emotional attachment to and identification with the organization" (The Pennsylvania State University, 2010).Â Affective commitment can enhance job satisfaction because employees agree with the organization's objectives and principles, because employees feel they are treated fairly in terms of equity, and because employees receive organizational care, concern, and support (Hawkins, W.D. 1998).
2. Continuance Commitment:
It refers to an employee feeling that he/she has to stay with the company because the costs of leaving are too great. This is manifested by an individual who maintains commitment to the organization because he/she is unable to match salary and/or benefits at another employer.Â The vested time and effort put into their work has developed what could be considered non-transferable investments such as a retirement plan, relationships with other employees, and other special interests that may have accumulated over time. For example, in today's turbulent economy it is likely to see an increase in the amount of employees who have a continuance commitment to the organization, as it is not only hard to find a job to match salary and/or benefits of another, but it is hard to find a job at all.Â
3. Normative Commitment:
Of the three types of commitment, normative is the least researched of all of them and refers to the employee that feels that he/she owes it to the employer to stay out of a perceived obligation. These feelings of obligation may come because the employer takes a chance on the employee when nobody else would. In turn, the employee feels indebted to the employer. Therefore, by a show of loyalty and duty, it would be difficult to leave.
Labour market opportunities: Labour market condition may be expected to have a profound influence on labour turnover since employees are less likely to quit if there are few alternative job opportunities. Hence, no matter how much employees are dissatisfied in their job they will hardly think of quitting unless they get another better job in the market. Moreover, management can also influence employee perception through communicating information relating to the benefits of employment in their enterprise, implicitly making the comparison with alternative labour market opportunities (Winterton (2004).
Ease of movement: Ease of movement is a key factor affecting actual separation, although it is difficult to separate its effect from organization commitment and job satisfaction (Trevor, 2001). Ease of movement is a comfort that an employee feels to quit the job. Hence, so as to decrease ease of movement management should provide an employee with various incentives. According to (Winterton, 2004) financial incentives, family- friendly policies and training are three ways of reducing ease of movement.
2.1. Employee Motivation:
Motivating employees can be a manager's bulk of contest. Employee motivation is a key to overall success of an organization. An understanding of an applied workforce, also known as organizational behaviour, can highly motivate workforce. Endter (2011) opined that employee motivation is not new in the world of human resource management. Eshetu (2012) suggested that motivation is derived from the word "motive" which means idea emotion or organic state that prompts a man to action. Motive is a centralized factor that brings about a man's behaviour. Josse and Robert (2007) indicated that motivation is the way of gaining the needs of people realized with a view to get them to work hard for the accomplishment of organizational objectives. Motivation is nothing but an act of attraction, a real force that forces individual to take steps to accomplish goal(s). From the text of physiological context, motives of a human being can be defined as hunger, thirst, avoidance of pain, need for air and sleep, elimination of wastes, of body temperature. All these factors are untaught motives and native in the organism (Kovach 2007).
2.2. Importance of Employee's Motivation:
Chun and Soo (2008) affirm that managers these days are alert about increasing importance of employee's elemental motivation. Endter (2011) found that if employees are motivated towards work then they try to give in their best effort which boosts reliability of the company. Thus, employee who beats in service delivery to the customer should be satisfied in terms of their job willing so that they can be motivated for providing better quality of services. Fred et al. (2007) disagreed that employee motivation is built over a period of time and does not assure the increase in tenure. However, it cannot be rejected that if employees of any company are well motivated then the quality of work done is much better when related to any other company. Motivated employees have greater consolidation of effort and likely to make mistakes. The fact is that employee motivation is directly allied to business profits, and more self-motivated the employees will be, the more differentiated and successful the business will be. They are likely to show greater loyalty to the company and have less defection. An unmotivated workforce will be opposite annoying its role in the environment. It can negatively affect both the quality of the work and how employees carry out their work.
Tesco considers that business depends on two groups, people customers and staff. It acknowledges that staffs are different and have separate lifestyles outside of work. Tesco support staff with a work/life balance and offers reward through:
free or reduced rate health benefits
discount gym membership
Company share option.
3. Research Methodology:
The main aim of this topic research methodology is to describe how data will be collected for this study. The research questions will be the main focus for collection of data with the help of quantitative method. In UK only there are almost 3000 Tesco stores; hence in London Tesco stores are located in the gap of every 10 to 20 minutes. In my local area there are at least 15 stores which will be my main focus in collection of data. Therefore I will be visiting these stores personally to collect information for my report. According to McClelland, 1995 knowing which data- gathering methods or combination of methods to use depends on a number of factors, such as organizational culture, environment, policies, and the effects or causality that drove the project (Martin, 2000). Research methodology provides a structural framework to carry on with the process of research in a systematic manner. Leedy and Ormrod (2012) pointed out that appropriate methodology helps to resolve the research problems and satisfy the research objectives.
3.2. Research Method Outline:
Researcher chooses the philosophy of belief as the research deals with factors related to social facts and events. To test existing theories, research approach has been chosen along with qualitative and quantitative data collection. Descriptive research design helps to present, explain and study collected data using statistical methods, tables and charts.
3.2.1. RESEARCH APPROACH:
Cresswell (2007) asserted the importance of illustrating the research approach as an effective strategy to increase the validity of social research. The major part of this chapter is the presentation of the research approach. The research adopted a qualitative research approach.
There are mainly two types of approach deductive and inductive. Deductive research approach allows the research to establish a hypothesis by using theory. Variety of data and information is collected by the researcher to confirm or reject the hypothesis to resolve issue (Gill and Johnson 2010). Inductive research is a flexible approach because there is no requirement of pre-determined theory to collect data and information. The researcher uses observe data and facts to reach at tentative hypothesis and define a theory as per the research problem. This helps the research to give inductive arguments (Mertens 2008).
3.2.2. RESEARCH ONION:
One of the most difficult things about understanding research design is that scholars disagree about the name, the order and the nature of research stages. Disagreement was very clear between Crotty (2007) and Saunders et al. (2007). Saunders et al. (2007) classified research into six stages and labelled the model which presented them as 'the research onion'. Saunders et al. (2007) divided the research to include: philosophies; approaches; strategies; choices; time horizons; techniques and procedures. On the other hand, Crotty (2007) narrowed them down to be: epistemology; theoretical perspective; methodology; methods.
Figure 4: Research Onion
(Source: Saunders et al., 2009, p 52)
3.2.3. QUALITATIVE RESEARCH:
Qualitative research is about study the brief of a market from first to last in-depth examine that the environment and history for advertisement production. (Malhotra, 2004) said Qualitative Research is an irregular, examining explore line of show aggression stand on small sample projected to make available just round the corner and considerate of the crisis situation. (Houser, 1998) abiding that by qualitative examine method researchers know how to get some advantages: The beneficiary can increase an extra extensive accepting of the phenomenon of concentration than with quantitative do research. It is cooperative or flame extraordinary situation that could not be accepted through comprehensive quantitative methods. The researchers can feel with data collected works alloted during the breakthrough, based on the issue that come up.
3.2.4. QUANTITATIVE RESEARCH:
Quantitative research is regarding the measure of a bazaar and checks that quantity with data. Mainly often the figures binding related to advertise amount, marketplace split, and publication, install base and advertise debate charge. It is also worn to drive secure manner, happiness, promise and a choice of other practical marketplace statistics that can be tailed over time. Quantitative research helps the marketers to complete purchaser alertness and attitude amongst unlike manufacturer to diagonse on the whole customer activities in a marketplace by amusing an analytical sample of clients and the marketplace as a complete. (Muijs, 2004) originate that quantitative explore is illumination phenomenon by collect arithmetic data that are analyse by means of precisely based method.
3.2.5. RESEARCH METHODOLOGIES USED IN THIS THESIS:
According to my research topic attention I have mainly used qualitative examine method. Qualitative investigate is added partisan in natural world then quantitative examine. But from time to time I tried to enclose quantitative investigate technique as well to appear at the choice. Qualitative and Quantitative main data have been collected by client examination and individual interview leave shopping section manager and employees of Tesco. I have visited many stores at hetrogeneous areas in London.
3.2.6. INFORMATION COLLECTION:
There are two types of data that have been used in this research, Main Data and Secondary Data. Main data has been possessed by alluring some meeting with clientele, store manager of online shopping section boss; professional etc. (Lush et al. 2003) said to expedite main data is to collect by the member exactly for the difficulty at give. On top of the earlier hand minor data have been before gathered (by the researchers or by others) for a number of past purposes. (Malhotra, 2004) show that Qualitative Data and Quantitative Data are main data. (Gibson, 2004) said that the data joining method chosen is to provide a good base on which to conclude some conclusion. Every question was intented so that actual data could be gathered, each investigation import certain issue or convinced data. Minor data composed from book, journal, Newspaper, publication, booklet, business web sites, Researchers web sites etc.
3.2.7. QUALITATIVE DATA COLLECTION METHOD:
Within qualitative research, the recipient is highly concerned in collecting and resolves the information. In this information the gathering and examination are often supervised accordingly, rather than as separate and disconnect aspect. According to (Saunders et al. 2004), qualitative information is base on meaning spoken from side to side language and joining marks in non-standardized data require allotment into category and examination conduct from side to side the use of apprehension.
3.2.8. PRIMARY DATA ANALYSIS:
This work has especially used bench, chart, and patty diagram to examine quantitative data. These are the essentially used to apply data examination means in advertising research. These are easy and for with no trouble intelligible inspection. (Quarterman and Parks, (2003) found that main data observation means that the member confident the data first hand. The irregular and open ended question has been produced by sharp account.
3.2.9. SECONDARY DATA ANALYSIS:
For the collection of secondary data with will help in judging the data collected, I am going to request for the organization report and documents available. It will support in strengthening the quality and give information to ensure the safety and authority of data collected.I encompass used Internet examine for electrical journal, deliberate records book; some explore also deliberate which has complete by others, periodical, web sites of Tesco. (Stage, 2003) establish that the limits of less important data examination embrace the lack of accessibility of information, the error of databases for sure investigate question, and the complexity obtain precise credentials on the database.
3.2.10. QUESTIONNAIRE DESIGN:
As there are lots of people working in a single branch of Tesco according to the size of it, it is not possible for me go and take interview of each and every staffs, therefore I have decided to make a questionnaire focusing on my topic and mainly staffs working in Tesco. Paper and pencil questionnaire are often used to gather information from a large number of people. Hence to receive as much as response available I have decided to go personally and distribute questionnaire to staffs as far as possible. The survey also used Dichotomous and manifold option organization as well.
In each and every branch of Tesco there are different managers like branch manager, store manager, duty manager etc. hence, these are the people whom I will be interviewing for my data collection. For this I will be using structured interview where there will be same pre- determined questions for all. In this research meeting has been conducted synchronously, like a typical face-to-face meeting, so that I could talk about each query. This method was practical when the meeting was conducted with the manager of superstore. The meeting was conducted from side to side phone and mainly of the occasion face to face chat.
3.2.12. POPULATION AND SAMPLING:
My main focus will be Tesco Green Street, Upton Park since I am one of the staff of that branch. It is a Tesco metro which is bigger in size that other Tesco express which we can see in every single street due to which there are more than 30 staffs and more than 5 managers in different sector. Hence, I will be selecting at least one manager, one supervisor for interview and at least 15 staffs for questionnaire from this branch and one person from management area and two to three staffs from other branches according to its size and population. For this process I will be using simple random sampling method.
3.2.13. RELIABILITY AND VALIDITY:
The most important part of research is that all the findings of data must be reliable and valid. The questions that are to be asked in interview will be structured and simple to understand by interviewee. Questionnaire will be prepared and presented for testing so that unnecessary and unreliable questions will be removed. All interviews will be done in polite manner in order to show respect and to avoid interviewer bias. The questionnaire will be prepared purely on ethical ground so that there won't be any biasness and all staffs will be assured about privacy and confidentiality of their response. They will also be ensured that overall data that are being collected is only for academic purpose.