Evaluation Of The Realtionship Sample Assignment

AN EVALUATION OF THE REALTIONSHIP BETWEEN REWARD SYSTEM, EMPLOYEE MOTIVATION AND WORKFORCE PERFORMANCE: A CASE STUDY OF TESCO

Abstract

The current research study reflects on the relationship between reward system, employee motivation and workforce productivity. Since rewards are supposed to be prioritised by modern day employees, the study attempts to investigate whether reward strategy in contemporary business environment influence employee motivation and workforce performance taking into consideration the case of Tesco. The study is comprised of seven chapters. The first chapter introduces the context of the research study along with the research aim and objectives. The second chapter reflects a range of literatures regarding various human resource functions like rewards, motivation and workforce performance and these functions have been linked with each other to assess possible relationship among the factors. The third chapter highlights the research methods and various approaches of the researcher during several research operations. Positivism philosophy has been chosen to conduct the study while the research design is descriptive in nature and the research approach is deductive. The research has conducted quantitative data analysis taking into consideration the responses of 50 employees from Upton Park branch of Tesco. On the other hand, qualitative data analysis has been conducted evaluating managers responses. The primary findings achieved from chapter 4 promote the fact that Tescos reward policy is quite effective and the organisation has managed to improve employee motivation which has ultimately lead to improved workforce performance. The discussions of the findings have been depicted in chapter 5. Chapter 6 finally concludes the research study by summarising the findings and linking the research findings with the research objectives. Based on the findings, recommendations like frequent audit process, employee feedback evaluation and paid holiday benefits are proposed to Tesco so that existing reward policy can be improved and better workforce motivation can be expected. The study finally ends with a reflection report showcasing the learning outcomes the research has experienced after completion of the research study.

Acknowledge

After successful completion of the study, I have managed to gain a significant amount of knowledge regarding practical application of various HR functions. The evaluation of the case of Tesco has enabled me to develop knowledge regarding real time business environment. However, the completion of the research project might not be possible with my contribution alone. I would like to thank my project supervisor Mr .... who had constantly mentored me during my research project. Without the help of my project supervisor, it would have been impossible for me to complete the research. I would also like to thank my friends and colleagues for helping me whenever I requested for assistance. Finally, I would like to thank my parents who have supported me constantly during the research project. Thank you all

Yours sincerely,

Chapter 1

Introduction

1.1 Background and context:

Organisational reward system plays a crucial role in maintaining a well-motivated workforce that can be capable of producing optimum output. It is a proven fact that based on the effectiveness of a reward system, employees motivation level can be determined. In the words of Armstrong (2012) the effectiveness of a reward system often reflects in the morale of the workforce. Boxall et al. (2007) simplified the concept by proposing that the efficacy of a reward system and employee motivation is directly proportionate with each other and an appropriate reward system is likely to enhance employee motivation. However, Hyvnen et al. (2009) argued that an effective reward system is a myth as not every employee is going to be motivated with same sort of rewards.

Recent studies have highlighted the facts that contemporary workforces have started prioritising several non-monetary rewards with the basic compensation packages. The fact is quite interesting as considering the scenario till the late 1980s or early 1990s, monetary benefits were the sole priority for the employees (May et al. 2008). With changing time, managers have started realising that monetary benefits alone might not be enough to keep the workforce motivated and that a combination of intrinsic and extrinsic rewards are needed to be provided for ensuring employee motivation.

Perhaps the most crucial reason behind the overhaul of the reward system modification is the positive impact of reward on workforce performance. Taking into consideration the proposition of Harter and Hayes (2009), an effective reward policy could influence employees to thrive for higher achievements which in due Assignment would enhance workforce productivity. However, Raes et al. (2011) contradicted that an inappropriate reward system or a reward system failing to address the workforce perception might demoralise the employees and hamper workforce performance.

In the context of the above scenario the current study attempts to evaluate the case of Tesco. Tesco is not only the leading retail supermarket chain in UK but also the second largest in the world. More than 597,700 employees are currently employed in the enterprise as per the report of 2013 is concerned (Tesco-careers.com). With such a large workforce, Tesco is perhaps following an effective reward management strategy for managing and retaining employees as the employee retention scenario concerning the brand is found to be better compared to rival organisations. The current study would investigate the reward system of the brand and try to determine whether the reward system if effective enough in motivating the employees and hence, ensuring improved workforce performance.

1.2 Aim and objectives:

Research aim:

The current research study aims to investigate the efficacy of the reward system of Tesco and whether the reward system is effective enough in ensuring employee motivation. The research would also attempt to assess whether the Tescos reward system is contributing positively to workforce performance by means of motivating the employees.

Research objectives:

The objectives of the current research study are as followed:

• To investigate the current reward policies followed at Tesco.
• To determine whether Tescos employee are motivated with the existing reward strategies
• To assess whether Tescos reward policies is compatible for generating improved workforce performance.
• To recommend reward strategies to Tesco so that employee motivation can be ensured along with improved workforce performance.

1.3 Scope and Importance:

Employees are the most important asset in contemporary business environments. Therefore, proper management of the workforce is significant in the context of business as a motivated and satisfied workforce can lead business organisations towards sustainability. Therefore, the findings from the current study can help contemporary business organisations to assess the significant of a proper reward system so that employees can be made motivated and desired workforce performance can be expected. Furthermore, findings, from Tescos case can create a benchmark for other organisations and following similar approaches, positive results can be expected.

1.4 Rationale:

Tesco is a renowned retail supermarket chain and the organisation is often appreciated by critics for the innovative workforce management approaches. The organisation is currently managing one of the largest workforces in the world which is comprised of more than 597,700 employees. Tesco is certainly following some effective approaches in keeping such a large workforce motivated and the existence of an effective reward system is almost inevitable in this context. Therefore, analysing the reward system of Tesco would help assessing some innovative reward policies that could be helpful in enhancing employee motivation and overall workforce performance in other business organisations as well.

1.5 Structure of the dissertation:

The overall dissertation is comprised of six chapters as described in the following section followed by a personal development at the end of the research.

Chapter 1: Introduction

A background context of the research has been depicted in the chapter along with the aim and objectives of the research. Accordingly, the scope of the research and rationale of the study have been highlighted.

Chapter 2: Literature review

The chapter covers a range of literatures and theoretical information concerning reward, motivation and workforce performance. The reviews of various authors and scholars have been critically reviewed to develop a theoretical platform for the study.

Chapter 3: Methodology

The chosen research methods along with all the strategic approaches of the researcher during various research operations have been covered in this chapter. The chapter highlights methods such as research design, data collection methods and sampling process.

Chapter 4: Data presentation and analysis

Quantitative and qualitative data collected have been converted into numeric and graphical format for ease of analysis. Quantitative data have been represented in tabular format which are accordingly represented using graphs and charts.

Chapter 5: Results and discussions

A thorough analysis of the findings from data presentation has been done in this chapter. The findings have been compared with the proposition of various authors in order to judge the accuracy.

Chapter 6: Conclusion and recommendations

The chapter concludes the research study by summarising the findings from the study. A range of recommendations have been provided at the end.

Chapter 7: Personal development

The chapter highlights the key learning outcomes before and after the research study. The personal development of the researcher has been evaluated in the chapter considering the learning during the research project.

Chapter 2

Literature review

2.0 Introduction:

The chapter covers a range of theories and literatures in the domain of reward management, employee motivation and workforce performance. Approaches have been made to align the three elements that are reward, motivation and performance. On the other hand, the literatures have been critically reviewed to obtain the best possible information. On the outset, each of the elements including reward, motivation and workforce performance have been individually analysed along with the influencing factors. Accordingly, these elements have been interlinked to determine the relationship that exists between the elements. Finally, an alignment between reward management, employee motivation and workforce performance has been done and Tescos reward polices are analysed to conclude the chapter.

2.1 Reward System:

The value of employee to the organisation can be effectively addressed by formulating and implementing potential strategies and policies. As opined by Saks (2007), potential strategies and policies could be implemented in organisational layout for rewarding the people equitably, fairly and consistently. A potential reward management system would consist of controlling employee compensation, remuneration and all other benefits offered to the employee. Contrary to this, Meyer et al. (2009) argued that implementing a sound reward management system could be difficult for organisations operating in global environment. Several organisations follow different types of reward system depending on the nature of the business and the workforce present in organisation.

2.1.1 Types of rewards:

Two types of reward system could be found in organisations intrinsic and extrinsic reward.

Intrinsic reward:

Intrinsic reward could be termed as an intangible award for achieving a conscious satisfaction or a sense of achievement. Considering the fact, Gully et al. (2009) stated intrinsic reward as Psychic rewards as these rewards are self-granted. As a matter of fact, intrinsic rewards can be termed as healthy and sustainable source of employee motivation (Bakker and Demerouti, 2008). However, several types of intrinsic reward could be found in organisations such as high range reward, middle range reward and low range reward.

Intrinsic reward involves four basic steps such as sense of meaningfulness, sense of choice, sense of competence and sense of progress. As stated by Darbi (2012), sense of meaningfulness parameter could make an employee to feel that the path is giving the workforce a better sense of direction or the purpose of doing job associated with it. Furthermore, Macey and Schneider (2008) opined that sense of choice could make the workforce to feel ownership of the allocated task. However, sense of competence deals with increasing the satisfaction level of employees and sense of progress could give the direction of accomplishing the satisfaction. Each intrinsic reward system can be effectively broken down into three levels:

High range scores:

High range scorer employees experience four types of intrinsic rewards. This rewards acts as highly energising and engaging factors for the employees (Suutari and Tornikoski, 2008).

Middle range scorers:

Middle range scorers could experience the same as high range scorers but to a moderate degree.

The given score makes the workforce to feel less satisfied than the workforce would like.

Low range scorers:

Low range scorers are dissatisfied with various aspects of the work and workforce feels that the work is relatively meaningless or pointless.

Considering the case of Tesco, it has been observed that the employees are getting rewarded in terms of the job role, job enlargement in each quarter. This approach has helped Tesco to reach better employee satisfaction and the same has been acted as a factor rewarding employees in a broader way.

Extrinsic reward:

Extrinsic rewards are usually financial in nature which is given by the managers to the employees such as pay hike, bonuses or other extra benefits. Since it is external to the work itself, it could be treated as extrinsic reward (Salanova and Peiro, 2009). Considering the fact, Lockwood (2007) argued that although pay is an important consideration for getting motivated workforce, the unfair pay could act as a strong demotivator.

However, along with the extrinsic reward system intrinsic reward system could be implemented to the reward system for motivating the workforce. Tesco has been employed huge extrinsic reward by enhancing the pay of customer assistance around 7% higher than another retail companies (Ons.gov.uk, 2014).

2.2 Employee motivation:

A motivated workforce is much required in the context of a modern-day business environment as studies suggest that greater productivity can be achieved when the workforce morale is high. Considering the words of Boxall et al. (2007), rewards based on higher performance criteria leads the employees to work over the standard working capacity.

As depicted by Caldwell (2005), motivation drives the employees to concentrate on the work to increase the potentialities of the employees as well as increase in productivity of that company. The reward would be provided to the employees to work beyond and above capacities. An effective reward policy can be treated as motivational factors to the employees. These rewards may not be always provided in monetary aspects but in non-monetary benefits. On the contradiction, Eby et al. (2008) argued that sometimes motivation has a negative impact on the employees working ability or morale.

It can be observed in the retail sector of UK, the high employee turnover leads to earn low revenue, while low employee turnover or high retention of the employees resulting to the high earning capabilities of revenue.

As stated by Gully et al. (2009), motivated workforce may help to grow interest and bring enthusiasm to the working place to increase companys revenue. The dynamic workforce might be created if the employees are highly motivated. The motivated workforce may increase the competencies between other existing industries. The adoption of change management may be resulting to the positive workforce. The application of change management leads to promotion of various ideas which includes approval of different changes made as time changes. Macey and Schneider (2008) cited the word of mouth helps in promote some new ideas between different employees which help to increase the brand value of the company as well as self motivation has grown. The positive viability might be seen in the employees behavior as well as in whole organization.

Vrooms Expectancy Theory:

Vrooms Expectancy theory provides the explanation of different individuals reaction. This theory evaluates the motivational factors (MF) of several behaviours. The motivational factors might be summarized by the following formula:

=

Expectancy (E):

It indicates the effort-performance relationship. Expectancy refers to the individuals perception to make effort to attain a performance. This perception may include self-confidence, past experiences and personality (Cipd.co.uk, 2014).

Instrumentality (I):

Instrumentality refers to the relationship between performance and reward. The individual has evaluated the performance level to achieve reward (Cipd.co.uk, 2014).

Valence (V):

Valence referred to the excess of outcomes i.e. reward which is associated with outcome. As depicted by Raes et al. (2011), a positive performance i.e. achieving goal leads to the positive valence. On the other hand, Scullion and Starkey (2009) contradicted there also exist the negative valence which may not concerning to the fulfilments of goal. A negative thinking always drives the employees to the discouraging position which results the negative valence.

The expectancy, instrumentality and valence can be observed in recent situation. This theory drives the employees to maximize interest towards the work. The maximization of interest or encouragement is resulting to the positive valence to the employees (Cipd.co.uk, 2014).

In UK retail sector, it might be observed that the encouragement of employees leads to positive valence i.e. rewards.

Adams Equity Theory:

Adams equity theory promotes the fact that there is needed to be a balance between employee inputs and outputs. Budhwar and Debrah (2001) supported the fact by acknowledging that improved motivation can be experienced if employees inputs such as hard work, devotion, enthusiasm etc can be addressed properly with outputs like compensation and benefits. It is believed that employees are likely to get motivated if the hard work is paid of fairly. As mentioned by Caldwell (2005), better workforce performance can be expected if organisations manage to maintain a proper balance between employee inputs and outputs.

During evaluation of the theory, Armstrong (2012) acknowledged that employees can be demotivated if the perceived inputs are greater than the perceived outputs. The consequence of such scenario can result in reduced effort, conflicts or even job quit. Therefore, achieving the right balance between the employee inputs and outputs is needed to be the benchmark so that a dynamic workforce can be achieved. Organisational reward policy is assumed to be crucial in this context as it could determine the motivational index concerning workforce and accordingly workforce performance can be influenced.

2.3 Factors influencing workforce motivation:

Workforce motivation can be considered as a collective morale of the organisational employees that would only be high if majority of the employees possess high morale (Ajila and Abiola, 2004). For instance, a certain department with high motivation and other departments with low motivation would not be sufficient to enhance overall workforce output. In the words of Carraher et al. (2006), the average case complexity would need to be higher than standard so that a healthy motivation level can be expected from the workforce. Adding to that, Hadjimanolis (2010) attributed that, if majority of the employees are motivated, the employees would work in same wavelength giving rise to overall workforce performance. The study of Eisenberger and Cameron (2006) showed that a combination of motivational factors or incentives and nonmonetary incentives can enhance workforce motivation.

2.3.1 Motivational factors or incentives to boost workforce motivation:

Past literatures suggest that there are a range of motivational factors for improving workforce motivation. Filipkowski and Johnson (2008) precisely referred the factors as incentives that can be provided along with the basic compensation packages so that employees morale can be boosted. Monetary incentives are found to be the basic motivating factors among the employees as it would enhance the purchase power of the employees. However, Chris and Awonusi (2004) cited that monetary benefits alone might not be sufficient for motivating all kinds of staffs. While the lower level staffs can be satisfied with basic monetary incentives, higher level staffs or the management staffs would expect a range of non-monetary benefits to be motivated. Monetary incentives can further be classified into two categories including individual incentives and collective monetary incentives. As mentioned by Bishop (2007), employees are needed to be individually and collectively motivated to enhance the workforce performance.

Individual financial incentives:

Individual financial incentives are generally provided to the workers based on superior performance or productivity. For instance, if a certain worker produces performance beyond the standard benchmark, organisations provide added financial benefits to increase motivation level. Hage and Dewar (2003) attributed that addressing superior performance within the workforce would not only help boosting individual morale but also the group morale as well. In this process, peers often get motivated with the concept of added monetary benefits for superior performance and aim to thrive for the same in due Assignment. The motivation ultimately influence workers to thrive for personal objectives and eventually, the combined efforts give rise to the overall workforce performance.

Collective financial incentives:

Collective monetary benefit has turned out to be a crucial factor in motivating the workforce and at the same time ensuring workforce productivity. Generally, organisations focusing on teamwork culture prioritise collective monetary incentives where the benchmark is set based on team performance and output (Rothwell, 2012). The most common practice includes provision of pension, bonus payments, provident fund, profit sharing etc for the team members. In the words of Mumford (2010) the provision of collective monetary benefits allows workforce to thrive for a specific cause and the process is compatible for promoting teamwork culture. Apart from that, Reio and Callahon (2004) mentioned that collective reward management is compatible for promoting an effective employee relation within the work environment which can result in improved workforce performance.

2.3.2 Non-monetary incentives to increase workforce motivation:

With the growing time, business organisations have analysed that employees cannot be motivated with monetary incentives alone. The study of Williams (2004) highlighted that a contemporary employee expect several non-monetary incentives in order to be motivated. These intangible benefits might not increase the motivation level of the workforce to some significant extent but absence of these elements might cause demotivation. Following section highlights some of these non-monetary benefits that can help improving workforce performance.

Job security and enrichment:

Employees by nature desire job security and the study of Scott and Bruce (2004) pointed that job security ensures employee motivation. Therefore, business organisations managing to assure employees of job security can expect enhanced motivation of the workforce. However, Tosti and Herbst (2009) argued that job security cannot be assured as it would be determined by the performance of the employees. Recent trend suggests that organisations experiencing high employee turnover fail to maintain effective employee morale in the workforce. According to Carraher et al. (2006), it is the fear of job cutting that prevents the employees to maintain a high morale. Therefore, the job security along with recognition and enrichment are needed to be focused to ensure workforce motivation.

Fair treatment policy:

Workforce performance can be hindered due to biased management treatment. Williams (2004) acknowledged that grievance can be experienced among the employees if the employees are mistreated. Therefore, employers need to give attention to needs and expectations of the employees from a neutral perspective while effective communication process can be established to minimise any possible perception gap. Tosti and Herbst (2009) cited that co-operation can only be expected from employees if the employees are treated with equal love and affection.

Appreciation for superior work:

Recognition for superior work often motivates the employees and influences the employees to thrive for further achievement. According to Hage and Dewar (2003), employees by nature love appreciation and therefore, recognition for quality work would motivate the workers. Employee recognition even imposes positive impact on peers as well. For instance, the peers are likely to get motivated seeing the others get rewarded for superior performance. Leading modern day organisations tend to reward employees based on the achievement of core competencies. As mentioned by Tosti and Herbst (2009), rewarding employees for achievements would ensure better productivity in the long run.

Encouragement for self development:

Organisations focusing on a continuous learning and development philosophy manage to prosper in the long run by encouraging the employees for self-development (Carraher et al. 2006). In continuous development process, employees can be engaged in training process on a regular basis so that continuous learning process can be made feasible. As per Williams (2004), continuous workforce development would require the implementation of various change management process which is why, an intense training and development module is needed to be run continuously. With the required skill set acquired through training programs, employees would be flexible to change management and motivated to adapt the new system.

Authority delegation:

Employees get motivated when supervisors delegate authorities and rely on certain personnel for the tasks. As mentioned by Hage and Dewar (2003), with the delegation of authority, employees are motivated due to the supervisors belief in respective ability and skill set. The delegation eventually works as mental satisfaction for the employees and accordingly, employees try to get the job done by means of every possible way. The process not only ensures workforce competency but also improved workforce performance (Carraher et al. 2006).

Working conditions:

Working condition can be considered as a non-financial incentive that can improve employee motivation considerably. It is a proven fact that workforce performance can be influenced with an effective work environment. Scott and Bruce (2004) discussed that employees manage to provide improved performance in a favourable working condition. A work condition ensuring employees health and safety is likely to improve the level of motivation among the staffs and according improved work performance can be expected.

Supportive management:

The approach of management towards employees could turn out to be an influential factor behind workforce motivation in the long run. Hage and Dewar (2003) argued that in majority of the business organisation, one of the major reasons behind workforce demotivation is supposed to be a rigid management system that focuses only on one-way communication process. The authoritative approach of the top management is not considered to be compatible in the business framework. Contemporary workforces have turned out to be more sensitive and aware of the latest corporate practise benchmark (Carraher et al. 2006). Supportive management is the new approach to be followed. Employees are found to be more productive when the management staffs are more supportive.

Promotion opportunity:

Providing employees with fair opportunities of promotion could help improving the motivation level of the workforce. The opportunity of promotion creates enthusiasm among the employees and as a result, better commitment can be expected from the workforce (Scott and Bruce, 2004). Therefore, maintaining a fair promotion policy is crucial for the organisations so that a desired level of motivation can be expected from the workforce. By this way, employees can be lead for a personal development cause and accordingly, collective efforts of the employees could lead to enhanced workforce performance.

Employee participation in management:

Among the non-monetary incentives, employee empowerment can be a feasible option for business organisations to boost employee morale and enhance workforce motivation. Carraher et al. (2006) referred that engaging employees in various management functions is a recent trend followed by a considerable number of organisations. Employees feel empowered given top responsibilities and responsibilities of various management functions are likely to boost motivation level. The process not just helps boosting individual morale but creates a benchmark for the fellow workers and the organisational workforce gets motivated.

Designation and status:

Employees are bound to get motivated with the change of designation. Carraher et al. (2006) identified that a certain degree of enhancement in job level can change the status for employees which accordingly gives rise to employee motivation. However, Scott and Bruce (2004) contradicted that promotion of fellow employees can also create demotivation among the employees and workforce conflict can be a possible consequence in this context.

2.4 Reward and motivation:

Motivation stands at central position in the discipline of organisational behaviour. As stated by Scullion and Starkey (2009), motivated employees could become highly productive and the employees can provide high quality job. Contrary to this, Katz and Else (2007) argued that rewarding good performance could be a challenging task for the employers. As a matter of fact, reward management policy could be formed such that the organisational goal and the goal of the employee can belong to the same horizon. For achieving the desired goal of organisation, a highly motivated and skilled workforce is required. Furthermore, a motivated workforce can be achieved by giving proper reward to the staff.

Motivation can be divided into three components such as direction, effort and persistence (Dalal et al. 2008). Direction parameter describes what staffs are trying to do, effort parameter describes the level of trying of a person and persistence refers the longevity of doing a behaviour.

Employee motivation could become the result of analysing the unsatisfied needs of the employees. Eventually, the unsatisfied need creates want which could turn into desire of achieving something (Budhwar and Debrah, 2001). Goals are created per the needs and reward could be given to the employee based on the achieved goal.

Figure 1: The process of motivation

(Source: Cabrera, E. F. and Cabrera, A. 2006, pp. 729)

However, managers can motivate employees by following Herzberg theory of motivation.

2.4.1 Herzbergs two factor theory:

Two factor theory depicts the differentiation between the cause of satisfaction and dissatisfaction. According to this theory, the management of a firm would be able to motivate workforce for achieving better job performance.

Motivators:

Intrinsic rewards can be given to the employees by providing recognition, responsibility and challenging work to the workforce (Eby et al. 2008).This factor could provide better job satisfaction and the same could act as the motivators.

Considering the fact, Tesco has also implemented job enlargement, job rotation for providing better responsibility to the workforce to make the workforce feel valued by the management.

Hygiene factors:

Hygiene factors are the factors that do not provide any positive satisfaction, but the absence of which could create a dissatisfaction among the workers. As per the opinion of Caldwell (2005), hygiene factors can be addressed by providing extrinsic reward to the workforce. Job security, salary hike, fringe benefits etc can be termed as extrinsic reward and the same factors could be treated as hygiene factors. Contrary to this, Fine et al. (2010) argued that most of the organisation does not follow these factors and reward systems for motivating workforce. As a result, the organisations are failing to achieve its corporate goals.

Although most of the organisations are failing to follow these techniques to motivate employees, Tesco is following a strategic platform for motivating its workforce by providing better rewards. Tesco has enhanced the wage level 87% higher than the minimum wages for the employees below 18 years old. Furthermore, Tesco has increased its medical expenditure towards the employee up to 75% of the total cost of medical bills (www.tesco-careers.com, 2014). All these facilities provided by Tesco have made it to achieve a satisfied workforce thereby enhancing the job performance of the organisation.

2.6 Motivation and workforce performance:

Motivation and workforce performance is directly proportional to each other. In this context, Schmitt and Sadowski (2008) stated that with a well-motivated workforce, an employee performance can be improved by means of enhanced skills and knowledge, effectiveness and ethics. With enhance motivation, reward, skills and knowledge, the workforce focuses on satisfying the customer needs thereby increasing the wider base of loyal customers. On the contrary, Treven (2007) argued that a demotivated workforce could result in failing to achieve the organisational goals. The negativity among the workers could decrease the service quality resulting in decrease in customer satisfaction. However, among all critical factors of business growth human resource stands at biggest challenging position for experiencing higher productivity. A motivated workforce delivers long term benefits to the organisation.

Employees can be motivated by two ways- monetary and nonmonetary. Satisfying the employees in both ways could be done by employing performance appraisal process. Performance appraisal process could help the employees to know about the performance level and rectifying the errors made by the staff (Dalal et al. 2008). Depending on the performance level of the workforce, the employees are being rewarded and the workforce becomes highly motivated. Contrary to this, Treven (2007) argued that presence of unfair review method could create negativity among the workforce that could be responsible for declining in workforce performance.

Workforce performance as a product of declarative knowledge, procedural knowledge and motivation:

Product of declarative knowledge, procedural knowledge and motivation establishes the overall performance of workforce. Declarative knowledge and productive knowledge could be taken as constant factor whereas the motivation acts as the variable. According to the statement of Treven (2007), if any employee receives zero motivation from the employer the overall productivity becomes zero. So, the major focus of the organisation could be focusing on employee motivation which could even lead a significant job performance by the workforce as a whole.

Workforce performance=Declarative Knowledge*Procedural Knowledge* Motivation.

Considering the case of Tesco, the organisation is giving high motivation to the existing members by providing family pension scheme, giving gym membership to the staffs along with other facilities. Tesco is standing at one of the largest retail firm in UK. Starting from the beginning, it has implanted a highly motivated work structure in terms of pay benefits, fair appraisal and providing other benefits. Furthermore, allowing flexible working schedule and incorporating a cross cultural workforce allowed the workforce to come up with new ideas and sharing the same for achieving organisational goals.

2.7 Total Reward system:

The reward management approach has been revolutionised recently with the emergence of total reward strategy. Majority of the contemporary business organisations are prioritising the total reward system in order to retain the current workforce while at the same time ensuring high commitment from the employees. As mentioned by Tosti and Herbst (2009), the purpose of the total reward strategy is the optimum utilisation of the available tools so that workforce can be motivated and retained. In the modern business environment context, organisations are trying to utilise the total reward strategy in order to enhance workforce performance while at the same time maintaining competency in the industry.

Objectives:

The primary objective concerning total reward strategy is to achieve desired employee behaviour within the workforce. In the words of Armstrong (2012), total rewards can be deployed in a wide range of policies so that employees can be rewarded with a combination of financial and non financial rewards. The foundation of the total reward strategy is building enhanced employee relationship within the work environment. In this context, approaches are made to ensure different rewards are interrelated to each other so that the contribution of the employees can be complemented with the compensation policy and a motivated workforce can be achieved. Considering the words of Boxall et al. (2007), total reward strategy is vertically integrated along with the business strategies while sometimes the strategy is horizontally integrated with supportive HR policies in order to develop an internal consistency.

2.8 Reward policies at Tesco:

Tesco has been providing a blend of monetary and non-monetary reward policy to motivate the staffs. The officials at the organisation believe the basic compensation package alone might not be sufficient to motivate the employees. Therefore, with the tagline More than just good pay, Tesco has been trying to obtain optimum employee satisfaction and improve the turnover ratio. Wooldridge et al. (2008) argued that majority of the organisation fail to maintain a healthy turnover ratio due to the lack of an effective reward management system. However, Tesco has managed to keep the employees motivated by providing a healthy reward package which comprises of the following elements.

Share our success scheme:

Tesco prioritises each of the employees regardless of the employment experience. Whether an employee is there for 3 months or 3 years does not matter as all of the employees are given free shares. The shares are held for five years and after completion of the time period, the shares can be withdrawn in tax free provision. There is a save as you earn provision for the employees which can be triggered after one year of employment. In this process employees can save up to 50 for 3 to 5 years and at the end, a tax free bonus can be achieved. Furthermore, employees can use personal savings to buy Tesco shares with up to 20% discounts. Finally, there is a buy as you earn scheme (BAYE) that enables employees to buy shares every 4 weeks and in Assignment, tax saving and national insurance clauses on basic salary are mitigated (Tesco-careers.com).

Colleague proviledgecard scheme:

The loyal employees at Tesco are rewarded with Colleague Priviledgecard scheme. Employees working for at least six months at Tesco are given Priviledgecard for the loyalty. In this scheme, the colleague loyalty card provides 10% discounts while added Clubcard points are provided on most of the products provided at Tesco. Adding to that, eligible candidates for Colleague Priviledgecard scheme are also provided with lucrative discounts in Tesco Personal Finance scheme and Tesco Telecoms (Tesco-careers.com).

Pension scheme:

Pension facility is there for the employees of Tesco in order to ensure that the employees lead a happy and peaceful life even after retirement. With the tagline we look after your future too, Tesco treats each of the employees with equality and ensure employee security during old age. Currently, Tesco has integrated a life insurance scheme along with the pension scheme so that financial stability can be provided to employees and respective families as well (Tescocareers.com).

Your leisure time scheme:

Workers hard work attitude is complemented with the leisure benefits so that employees can enjoy leisure with the assistance of the organisation. The policy is initiated with providing special offers and discounts to the Tesco colleagues. The reward scheme includes discounts on holidays, theme parks and gym membership that are applicable yearly basis. Apart from these offers, there are a range of special offers ensuring there are always something for every employees (Tesco-careers.com).

Protecting your health scheme:

There are a number of healthcare schemes for the employees at Tesco. Employees are provided a considerable amount of discounts in some of the renowned healthcare companies. Employees are provided with exclusive discounts on popular healthcare plans along with dental cover and self medical insurance so that the increasing healthcare cost can be minimised.

Supporting your lifestyle scheme:

The supporting your lifestyle scheme has focused on the work-life balance of the employees. Management at Tesco believes that Tesco colleagues possess a busy lifestyle outside the workplace and therefore Tesco is attempting to integrate several policies so that the employees can maintain the work-life balance.

2.9 Summary:

Summarising the findings from the chapter, it can be stated that reward system has a positive and direct impact on employees performance thus responsible for workforce performance. Based on the appropriateness of reward strategy, organisational employees can be motivated. Since it is a well known fact that motivated employees can enhance workforce performance, it can be assumed that organisational reward system is a crucial element in maintaining desired workforce productivity. Evaluating various theories, it has been understood that basic pay packages might not be sufficient for enhancing employee motivation. Contemporary organisations need to focus on a mix of monetary and non-monetary employees benefits so that a high morale can be maintained within the workforce. Tesco has been following an effective reward strategy that is comprised of various intrinsic and extrinsic rewards. Along with the basic pay packages, Tesco is provides benefits like health protection, pension, lifestyle support and even company share so that employees can be motivated and long term commitment can be expected.

Chapter 3

Research methodology

3.0 Introduction:

A thorough discussion of the research methods has been presented in the chapter along with relevant justifications for the choice of the methods. At the outset, methodologies regarding research philosophy, research design and research approach have been discussed. In the cue Assignment of the chapter, strategies including data collection process, data analysis procedures and sampling mechanism have been depicted. Finally, research ethics and limitations have been highlighted while a Gantt chart has been pointed highlighting the time duration concerning various research operations.

3.1 Overview of methodologies:

The overall research methods can be segregated in two segments. The initial segments highlights the research methods promoting the mindset of the researcher while later segments disclose various strategic approaches relating to data collection, data analysis and sampling process. The research philosophy is positivism and the research approach is deductive in nature. A descriptive research design is followed throughout the study. Majorly two types of data have been analysed throughout the study including primary data and secondary data. Primary data used in the research study is further categorised into quantitative and qualitative data types. Sampling process concerning quantitative data collection is simple random while non probability convenience sampling process has been followed for qualitative data collection.

3.2 Research philosophy:

Considering the layers of a research onion, research philosophy is found to be the first layer of the research onion which is needed to be addressed primarily. Bernard (2011) mentioned that the choice of research philosophy is crucial as it could influence the flow of a particular research study. After assessing a range of literatures, it has been found that research philosophy can be categorised into three broader categories including epistemology, ontology and axiology. Epistemology is concerned with the application of acceptable knowledge while ontology prioritises the nature of reality concerning the research study. On the other hand, axiology is concerned with social values (Hair and Money, 2011). According to Amitabh and Gupta (2010), epistemology can further be classified into three categories including positivism, realism and interpretive philosophy. Positivism philosophy promotes the concept of scenario explanation using facts and figures while realism philosophy prioritises authenticity of information. On the other hand, interpretive philosophy focuses on human values. The chosen philosophy for the current research study is positivism.

3.2.1 Justification for choosing positivism philosophy:

Positivism philosophy has been chosen for conducting the study since the current study is scientific in nature. As mentioned by Dubois (2002), positivism philosophy supports scientific studies that consider evaluating real life facts and figures to analyse various research scenarios. The researcher has opted for collecting quantitative and qualitative data from various internal stakeholders of Tesco in order to evaluate the relationship between reward, motivation and workforce performance. Since the current study is scientific in nature, positivism philosophy is assumed to be appropriate. On the other hand, McGuire (2006) cited that positivism philosophy complements quantitative data analysis. Due to the similarity of aspects, positivism philosophy is chosen for conducting the study.

3.3 Research approach:

In the words of Cameron (2009), research approaches can be categorised into two segments including inductive approach and deductive approach. Inductive approach is based on a staircase model in which data are first collected followed by theory development. According to Armstrong and Shimizu (2007), inductive approach can be used for new theory development. On the other hand, deductive approach follows a waterfall model in which, theories are evaluated followed by data collection and data analysis and finally testing of theories. As mentioned by Larsson (2003), inductive approach can be associated with researches that aim to invent some new theories unlike the deductive approach. The current study has considered focusing on the deductive approach in order to conduct various research operations.

3.3.1 Justification for choosing deductive approach:

One of the major reasons for choosing deductive approach is that the current study has attempted to evaluate the relationship between rewards, motivation and workforce performance. Since, it is a proven fact that effective rewards can enhance employee motivation and influence workforce performance, the study is going to test the existing theories rather than innovating new theories. Considering the words of Brannen (2009), deductive approach can be followed to test available theories with several real life facts and figures. The study has first evaluated a range of existing theories and accordingly, primary data have been collected from the internal stakeholders of Tesco to assess the efficacy concerning organisational reward policies. Therefore, the framework concerning the study is similar to that of deductive approach.

3.4 Research design:

In the words of Allen (2001), determining appropriate research design is crucial as it can influence the flow of the entire research project. Johnson and Onwuegbuzie (2006) proposed that research design can be either exploratory, explanatory or descriptive based on the nature of the research. Exploratory research design is often used when there is lack of knowledge concerning the research domain. Explanatory research design is followed if the existing range of theories and literatures are found to be not sufficient in evaluating the concerned research scenario. On the contrary, descriptive research design is considered to focus on different aspects concerning the research study. In the context of the current research study, descriptive research design has been followed.

3.4.1 Justification for choosing descriptive research design:

Descriptive research design has been chosen in order to analyse various aspects of reward management system and how the reward policy can dictate employee motivation and workforce performance. The initiative has been to evaluate the case Tesco and whether the organisational reward policy is effective enough in enhancing workforce productivity. Therefore, the approach is similar to descriptive design. On the other hand, Ellis and Levy (2009) attributed that descriptive research design supports quantitative data analysis to evaluate research scenarios. Likewise in the current research, quantitative research has been conducted in order to assess the relationship between reward, motivation and workforce performance. Therefore, descriptive research design is supposed to be compatible for the current research study.

3.5 Purpose of research:

The purpose of the research is to determine whether Tescos reward policy is suitable for motivating the employees and enhancing workforce performance. The strategy is to obtain responses from Tescos employees that would be quantitative in nature and opinions of the managers that would be qualitative in nature. The combined quantitative and qualitative data would be evaluated to assess the research context. Aldag and Steams (2008) argued that without proper range of primary data, actual research scenario cannot be addressed. Therefore, following a mixed method approach, the research study has attempted to analysed efficacy concerning Tescos reward policy.

3.6 Data type:

A range of primary and secondary data has been evaluated throughout the study. As mentioned by Gummesson (2006), proper combination of primary and secondary data can help in conducting a rigorous research. Secondary data concerning the study are data that has been collected from various popular secondary sources of information including books, articles, journals and informative websites. Adding to that, Tescos official website has also been monitored to obtain previous organisational records.

Primary data concerning the study is quantitative and qualitative in nature. Allen (2001) acknowledged that a mixed method approach comprising of quantitative and qualitative data analysis could help in deriving the actual research scenario. Quantitative data represents the responses of the employees of Tesco regarding reward policies. On the other hand, qualitative data reflects managers perception regarding the relationship between reward and employee motivation.

3.7 Data collection process:

The data collection process has been conducted in three phases. Bernard (2011) cited that particular emphasis is needed to be given on data collection procedure as it could determine the outcome from the data analysis process. At the outset, secondary data have been collected followed by quantitative and qualitative data collection from the field research.

Secondary data have been collected from various popular resources like the university eresources, library database and internet. Authentic secondary data in the form of theories and literatures have been collected from the university library databases. On the other hand, various informative websites have been evaluated for obtaining e-journals and articles. Adding to that, Tescos official website has been evaluated to retrieve past organisational data. Brannen (2009) supported the approach by suggesting that internet is a reliable source to obtain a wide range of secondary data.

A survey questionnaire approach has been initiated engaging various employees of Tesco in order to collect quantitative data. As cited by Allen (2001), survey questionnaire approach is a proven mechanism when it comes to collecting quantitative data. On an approved date, a number of employees at Tesco have been gathered and the responses of the employees have been collected by providing the survey questionnaire form. Employees were instructed to fill up the questionnaire form within 15 minutes and the filled up questionnaire forms contributed required quantitative data for the study.

3.8 Sample size:

In order to collect quantitative data, 50 employees from Tesco have been engaged in a survey questionnaire process for perception evaluation. Therefore, sample size for quantitative data is 50. On the other hand, 6 managers of Tesco have been interviewed to collect qualitative data. Therefore sample size for qualitative data is 6.

3.9 Sampling process:

Simple random probability sampling mechanism has been followed during quantitative data evaluation in order to conduct a fair data analysis process. as mentioned by Dubois (2002), simple random sampling is useful in providing equal opportunities to the respondents. Adding to that, Brannen (2009) acknowledged that simple random sampling can be considered when the sample size in larger than 50. Since the sample size concerning the current study is 50, simple random sampling technique has been followed. On the other hand, non probability sampling convenience process has been followed for qualitative data evaluation as it would help in accessing data easily. According to Aldag and Steams (2008), convenience sampling would ensure easy accessibility of data.

3.10 Data analysis:

Quantitative data has been analysed in MS Excel sheet. In this process, the responses of Tescos employees have been converted into numeric format and represented in tables and graphs. As cited by Brannen (2009), graphically represented data can be easily analysed and interpreted. On the other hand, qualitative data or the responses of the managers of Tesco have been critically analysed and compared to assess the actual scenario. The primary findings have been compared with the theoretical findings in order to assess the gap in knowledge.

3.11 Ethical consideration:

In order to make the research a social study, various ethical considerations have been focused on during the research operations. In the words of Dubois (2002), a research failing to address the required ethics might not be accepted in the society. Therefore, the researcher has made sure the questions that have been asked to the respondents are free of controversial contents such as race, religion or ethnicity. While approaching the respondents, it is ensured that the feelings and the sentiments of the respondents are not hurt. The consent of the respondents has been evaluated prior to the primary research and none of the respondents were forced to take participation in the data collection process. The researcher has also ensured that the data collected during the research would not be used for any commercial use and that the candidatures regarding the organisational staffs would be kept in privacy.

3.12 Research limitations:

Data has been collected only from the internal stakeholders of Tesco by means of employees and the managers. Therefore, biased opinions to some extent are expected that can influence the outcomes of the research. The sample size for quantitative data is 50 and for qualitative data, the size is 6. Considering more samples would have helped in generating more relevant results.

Finally, the research fails to evaluate data regarding a number of Tescos supermarkets. Conducting a comparative study could have been better.

3.13 Time horizon: Gantt chart

Chapter 4

Data presentation and analysis

Chapter 4

Data presentation and analysis

4.0 Introduction:

The primary data collected during the research study has been processed and findings have been showcased in the chapter. At the outset, findings from quantitative data have been highlighted through graphical representation using tables and charts. Quantitative data represents the perception of the employees of Tesco. Accordingly, qualitative data or the responses of the managers have been presented in tabular format by means of a transcript. Findings from the chapter have given rise to overall conclusion concerning the research study.

4.1 Findings from quantitative data:

Question 1: Does Tesco provide financial benefits as per the industry standards?

Table 1: Compensation as per industry standards

Figure 2: Compensation as per industry standards

Question 2: Does Tesco provide some non-monetary benefits along with the basic pay packages?

Table 2: Inclusion of non-monetary benefits in compensation

Figure 3: Inclusion of non-monetary benefits in compensation

Question 3: Does your compensation package include fringe benefits like health insurance or bonuses?

Table 3: Inclusion of fringe benefits like health insurance or bonus in compensation

Figure 4: Inclusion of fringe benefits like health insurance or bonus in compensation Question 4: Does Tesco prioritise work-life balance?

Table 4: Whether prioritise work-life balance

Figure 5: Whether prioritise work-life balance

Question 5: Tick from the following options your preferred benefits scheme.

Table 5: Preferred benefits scheme

Figure 6: Preferred benefits scheme

Question 6: Are you satisfied with your current compensation package?

Table 6: Satisfaction due to current compensation package

Figure 7: Satisfaction due to current compensation package

Question 7: Do you experience job satisfaction due to the current compensation policy? Table 7: Job satisfaction due to current compensation policy

Figure 8: Job satisfaction due to current compensation policy

Question 8: Does the ‘Colleague Priviledgecard’ scheme encourage you to improve performance level?

Table 8: Encouragement to perform better due to ‘Colleague Priviledgecard’ scheme

Figure 9: Encouragement to perform better due to ‘Colleague Priviledgecard’ scheme Question 9: Are you convinced that the work-life balance provision prioritised by Tesco has helped you keeping a high morale?

Table 9: High morale due to work-life balance provision

Figure 10: High morale due to work-life balance provision

Question 10: Would you agree that the organisational reward policy motivates you to produce better performance?

Table 10: Motivation to produce better performance due to rewards

Figure 11: Motivation to produce better performance due to rewards

Question 11: Have you experienced better employee relations recently in the work environment?

Table 11: Experiencing better employee relations currently

Figure 12: Experiencing better employee relations currently

Question 12: Does the extra benefits encourage you to commit future to the organisation? Table 12: Better commitment due to extra benefits

Figure 13: Better commitment due to extra benefits

Question 13: Have you experienced improved team performance due to the collective incentive scheme?

Table 13: Experiencing improved team performance due to collective incentive scheme

Figure 14: Experiencing improved team performance due to collective incentive scheme

Question 14: Would you agree that considering employees’ feedback could help Tesco deploying an improved reward policy?

Table 14: Improved reward policy considering employees’ feedback

Figure 15: Improved reward policy considering employees’ feedback

Question 15: Would you be tempted with the paid holiday reward policy?

Table 15: Motivation due to paid holiday provision

Figure 16: Motivation due to paid holiday provision

Question 16: Could the ‘Family health protection’ plan motivate you to produce better performance?

Table 16: Motivation due to ‘Family health protection’ plan

Figure 17: Motivation due to ‘Family health protection’ plan

Question 17: How would you rate the provision of succession planning considering family members should some mishap happens with the employees?

Table 17: Job for family members during mishap

Figure 18: Job for family members during mishap

4.2 Findings from qualitative data:

4.4 Conclusion:

The findings from the chapter promote the fact that Tesco has been following an effective reward policy which is being appreciated by the employees and the managers as well. Tesco’s compensation structure is comprised of several monetary and non-monetary benefits, addressing various social needs of the employees. However, sustainability of the existing reward policy is still not ensured and therefore, the brand can focus on employee feedback evaluation process to improve reward strategy by time.

Chapter 5

Results and discussion

5.0 Introduction:

The findings from primary data achieved in the previous chapter, have been analysed in the current chapter and cross referenced with the findings from literature review segment. The chapter highlights the actual research findings and at the same time compares the findings from primary data with the secondary data. By this way, attempts have been made to find out whether the primary findings are supported by the secondary findings and possible gaps could lead to solution to the research problem.

5.1 Quantitative data analysis:

Compensation as per industry standards:

In reference to the findings from question 1 (refer to section 4.1 in chapter 4), majority of the employees (78% approximately) are agreed with the fact that Tesco provides rewards and benefits as per the industry standards. Therefore, it can be assumed that Tesco has focused on employees’ expectation while at the same time maintaining industry benchmark. Saks (2007) proposed similar fact by acknowledging that a fair reward policy is needed to be implemented to address both employee expectation and industry standards (refer to section 2.1 in chapter 2). Therefore, it can be assumed that Tesco has addressed legal implications to addressed the reward policy.

Inclusion of non-monetary benefits in compensation:

While questioning the employees, majority of the respondents (94% approximately) are convinced that Tesco provides various non-monetary benefits along with the basic pay packages.

Gully et al. (2009) attributed that several intrinsic rewards or ‘psychic rewards’ are needed to be considering in a reward policy for enhanced motivation (refer to section 2.1.1 in chapter 2). Adding to that, Tesco has been providing benefits such as profit sharing, priviledgecard, leisure time benefits etc along with several financial benefits (refer to section 2.8 in chapter 2). Hence, it is found that Tesco’s compensation package is comprised of a mix of monetary and nonmonetary benefits.

Inclusion of fringe benefits like health insurance or bonus in compensation:

Majority of the employees (96%) have gained various fringe benefits such as health insurance or bonuses along with the basic pay package. Tesco has been providing fringe benefits to the employees to improve employee motivation to further extent. As mentioned by Tosti and Herbst (2009), total reward strategy should be the benchmark for business organisations. Considering the current context, it can be understood that Tesco is focusing on deploying a total reward strategy by including fringe benefits along with several monetary benefits. Tesco’s reward strategy includes benefits such as ‘Protecting your health’ scheme or ‘Share our success’ scheme that often helps in enhancing the employee motivation index (refer to section 2.8 in chapter 2).

Whether prioritise work-life balance:

Tesco has recently been prioritising work life balance at least the findings from question 4 suggest so. Majority of the employees (82% approximately) appreciated the fact. Therefore, it is assumed that employees’ desire of work-life balance is being addressed by Tesco following the reward policy. Caldwell (2005) cited that balancing the work time and social time would enable employees to produce better performance at the workplace (refer to section 2.2 in chapter 2). Tesco has managed to address the concept as the organisational reward policy is included with a work-life balance provision in the name of ‘Your leisure time’ scheme (refer to section 2.8 in chapter 2).

Preferred benefits scheme:

In reference to the findings from question 5, reward schemes like ‘share our success’ and pension are strong favourites among the employees of Tesco. Adding to that, schemes like ‘your leisure time’, ‘supporting your lifestyle’, ‘protecting your health’ and ‘colleague priviledgecard’ are also preferred reward schemes among the employees. Armstrong (2012) attributed that a total reward strategy is needed to be deployed focusing on a combination of monetary and non-monetary benefits (refer to section 2.7 in chapter 2). Therefore, considering the current context, Tesco has been providing a wide range of non-monetary benefits along with the financial benefits for ensuring employee motivation.

Satisfaction due to current compensation package:

It can be assumed that employees at Tesco are satisfied with the current compensation package as majority agreed with the fact when questioned (refer to findings from question 6). Eby et al. (2008) are convinced with the fact that rewards can motivate employees to produce better performance (refer to section 2.4.1 in chapter 2). Since majority of the employees are found to be satisfied with the current compensation policy it can be assumed that Tesco’s reward policy is compatible for enhancing employee motivation.

Job satisfaction due to current compensation policy:

Majority of the employees of Tesco are found to be satisfied with the respective jobs as the reward policy is relevant to the respective perceptions (refer to question 7 in chapter 4).

Considering the findings, it can be said that Tesco’s reward policy has been fair enough as per various organisational designations. Therefore, employees are satisfied with the current job profiles. As per Scullion and Starkey (2009), motivated employees are likely to be more productive (refer to section 2.4 in chapter 2). Since, employees are well satisfied with the current job profiles, improved performance can be expected.

Encouragement to perform better due to ‘Colleague Priviledgecard’ scheme:

The ‘colleague priviledgecard’ reward scheme is found to a preferred scheme among the employees of Tesco as majority (76% approximately) of the employees agreed with the fact (refer to findings from question 8 in chapter 4). This particular reward scheme enables the loyal employees to enjoy 10% discounts on Tesco’s products. Thus, the employees can reduce the amount of expense on various daily commodity products. Considering the opinion of Chris and Awonusi (2004), monetary benefits alone is not sufficient for addressing employee motivation and therefore, various non-monetary benefits are needed to be incorporated within the reward policy. It seems the ‘colleague priviledgecard’ scheme is an innovative reward policy that can encourage the employees to perform better.

High morale due to work-life balance provision:

Tesco’s employees are found to be motivated due to the provision of work-life balance (refer to question 9 in chapter 4). The work life balance provision is letting the employees enjoy the respective job roles while at the same time enjoying personal and social space. As per Caldwell (2005), extrinsic rewards like work life balance might not trigger employee motivation every time but the absence of these factors might trigger dissatisfaction (refer to section 2.4.1 in chapter 2). Therefore, it can be said that Tesco has managed to motivate the employees following the work-life balance provision.

Motivation to produce better performance due to rewards:

In reference to the findings from question 10 (refer to section 4.1 in chapter 4), more than 84% of the employees would likely to produce better performance due to the existence of organisational reward policy. Considering the responses of majority of the respondents, it can be presumed that reward policy motivates employees to produce improved performance. Dalal et al. (2008) acknowledged that rewards influence psychological factors like effort, direction and persistence leading to improved performance (refer to section 2.4 in chapter 2). Thus, Tesco has managed to increase employees’ effort through the reward policy.

Experiencing better employee relations currently:

Although majority of the employees (72% approximately) have experienced better employee relations recently, a considerable number of employees (12% approximately) disagreed with the fact. However, since majority are agreed with the fact, it is believed that Tesco has experienced better employee relations recently and organisational reward policy can be a major reason behind that. Employees at the organisation are supposed to be happy with the current reward policy and therefore a healthy work environment is being achieved. The current fact is supported by Raes et al. (2011) as the author proposed that rewards can address valence would leads to employee motivation (refer to section 2.2 in chapter 2). Tesco is certainly managing to motivate employees with respective reward policy as a result of which, improved employee relations is being experienced.

Better commitment due to extra benefits:

Employees of Tesco are willing to commit more due to the extra benefits provided by the organisation. In reference to the findings from question 12, majority of the respondents (96% approximately) agreed with the fact. Tesco provides various extra benefits to the employees along with the basic compensation packages. The strategy has turned out to be effective as employees are highly motivated and willing to commit more for the organisation. Considering the words of Armstrong (2012), employees would be able to improve performance if the perceived inputs are matched with the perceived outputs. It seems that Tesco has managed to address the employees’ inputs with perceived outputs and therefore, enhanced commitment can be expected.

Experiencing improved team performance due to collective incentive scheme:

Majority of the employees (60% approximately) at Tesco have experienced improved team performance due to the implications of collective incentive scheme (refer to question 13 in chapter 4). Ajila and Abiola (2004) discussed that collective morale influences overall workforce performance with high collective morale would likely to enhance workforce productivity. Tesco has managed to motivate the employees with the collective incentive scheme. As a consequence, better team performance is a likely scenario.

Improved reward policy considering employees’ feedback:

Taking into consideration the findings from question 14, majority of the employees (over 82% of total population) are agreed with the fact that considering the employees’ feedback would help improving organisational reward policy. It seems Tesco can focus on employees’ feedback so that the respective perceptions can be addressed and reward strategies can be developed accordingly. According to Caldwell (2005), employees are generally motivated if the inputs are addressed with proper outputs or reward policies (refer to section 2.2 in chapter 2). Therefore, Tesco can focus on the feedback of the employees to analyse the perceived outputs and deploy the reward policies accordingly.

Motivation due to paid holiday provision:

The provision of paid holiday could help in motivating the employees as majority of the employees of Tesco are found to be convinced with the fact (refer to question 15 in chapter 4). Tesco is well appreciated for the innovative reward policies. The brand has even tied up with various travel agents to provide discounts to the employees when booking for a tourist destination (refer to section 2.8 in chapter 2). However, the employees would still need to pay a considerable amount of money to the travel agents. Therefore, the provision of paid holiday would likely to motivate the employees.

Motivation due to ‘Family health protection’ plan:

When employees were asked about the provision of ‘Family health protection’ plan (refer to the findings from question 15 in chapter 4). Tesco provides a range of added benefits to the employees along with the health insurances of the employees. However, there is no provision like family health protection. Therefore, when asked the employees about the plan, majority of the employees were found to be encouraged by the fact. As stated by Treven (2007), employees would be highly motivated with an innovative reward policy (refer to section 2.6 in chapter 2). Hence, the application of such rewards is likely to motivate employees while enhancing the workforce performance.

Job for family members during mishap:

In reference to the findings from question 17 (refer to question 17 in chapter 4), majority of the employees (96% approximately) would appreciate the provision of job opportunity for family members should a probable mishap occurs. Tesco cares for the employees and even provide pension benefits to the employees for smooth post service life during retirement. However, there is lack of contingent plans during possible mishaps. Hence, the succession planning of the family members of the employees during probable mishaps would be appreciated by the employees.

5.2 Qualitative data analysis:

What are the aspects being prioritised by Tesco in the reward policy?

Considering the responses of Tesco’s managers, the management is trying to keep a balance between the work and social life of the employees so that employees can enjoy working in the organisation. Majority of the managers have discussed that Tesco has been attempting to provide a combination of monetary and non-monetary benefits to the employees so that desired level of motivation can be maintained. One of the managers emphasised on the fair compensation policy of the organisation which is based on the provision of fair rewards based on performance review.

Do you think the current reward strategy is effective enough in ensuring workforce motivation?

While majority of the managers are convinced with the efficacy of the current reward policy of Tesco, two of the managers were found to be unsure of the sustainability of the organisational reward policy in the long run. It can be assumed that the Tesco has been following an effective reward policy. However, the changing needs and demands of the workforce might be a concern for the organisation. Therefore, Tesco needs to monitor the reward policy continuously so that the efficacy concerning the reward policy can be controlled by time.

Do you believe improved workforce performance can be experienced following the current reward strategy?

While questioning the managers whether workforce performance can be improved following the current reward policy, all the managers agreed with the fact. Considering the managers’ opinions, Tesco has experienced improved workforce performance already following the current reward policy. One of the managers even mentioned that the newly developed reward policy has set a benchmark in the industry while all of the managers are confident of the efficacy concerning the reward policy. Therefore, improved workforce performance is expected due to he reward strategy.

What aspects can be focused so that an improved reward strategy can be developed and workforce performance can be enhanced?

Managers of Tesco highlighted several aspects that can be focused to modify the reward strategy and motivate the employees. A considerable number of managers have discussed options such as frequent audit process and employee feedback evaluation so that the employees’ perception regarding organisational reward policy can be gauged and strategies can be altered accordingly. Adding to that, managers focused on new policies such as team based rewards, family benefits and paid recreational activities so that improved motivation can be experienced.

5.3 Conclusion:

Conducting the quantitative and qualitative data analysis, it has been found that Tesco has developed an effective reward policy comprising of both monetary and non-monetary benefits so that employees could be motivated and increased workforce performance can be experienced.

Tesco’s employees are found to be quite satisfied with the current reward policy while provisions such as family benefits and paid holidays can be considered. Managers are also agreed with the fact that the current reward policy is compatible for enhancing workforce performance. However, the long-term sustainability of the reward policy is questionable and therefore, employee feedback evaluation and assessment have been recommended.

Chapter 6

Conclusion and recommendations

6.0 Introduction:

The chapter summarises the findings from the entire research project and thus attempts to derive conclusion regarding the relationship between rewards, motivation and workforce performance. Initially, the research objectives have been addressed focusing on the primary findings from the research study. The linkage between the research objectives and research findings highlights the critical success factor concerning the research study. Accordingly, some recommendations have been provided considering the findings from the study so that Tesco can improve the reward policy to further extent and improve the motivation scenario.

6.1 Linking of research objectives with research findings:

Objective 1: To investigate the current reward policies followed at Tesco

Tesco is currently following a wide range of reward policies. Findings from question, question 2, question 3, question 4 and question 5 (refer to section 4.1 in chapter 4) help understanding the reward policies that are currently followed by the organisation. In reference to the findings from question 1, Tesco is providing rewards and benefits as per industry standards. Findings from question 2 suggest that the compensation provided by Tesco to the employees include a mix of monetary and non-monetary benefits. Gully et al. (2009) supported the fact by suggesting that a combination of intrinsic and extrinsic rewards could help organisations motivating the employees (refer to section 2.1.1 in chapter 2). Considering the findings from question 3, the compensation packages provided to the employees include fringe benefits such as health insurance or bonus. On the other hand, Tesco also prioritise work-life balance (refer to findings from question 4 in chapter 4). Caldwell (2005) agreed with the fact and cited that work life balance provision would significantly enhance employee morale (refer to section 2.2 in chapter 2). Adding to that, findings from question 5 imply the fact that Tesco has developed an innovative reward policy. Some non-monetary benefits like ‘Share our success’, ‘Your leisure time’, ‘Supporting your lifestyle’, ‘Protecting your health’ etc are provided to the employees so that employees can stay motivated. The managers have also discussed that Tesco has been focusing on maintaining work life balance while several non-monetary benefits are provided along with the basic pay packages to motivate the employees and improve workforce performance.

Objective 2: To determine whether Tesco’s employee are motivated with the existing reward strategies

In order to address the current research objective, findings from question 6, question 7, question 8 and question 9 can be assessed (refer to section 4.1 in chapter 2). In reference to the findings from question 6, Tesco’s employees are found to be satisfied with the current compensation packages. Employees have also experienced job satisfaction due to current compensation policy (refer to findings from question 7). As mentioned by Starkey (2009), employees would likely to be more satisfied with the job profile in the existence of relevant reward policy (refer to section 2.4 in chapter 2). Findings from question 8 promote the fact that employees are encouraged to produce better performance due to the ‘Colleague Priviledgecard’ scheme. Adding to that, findings from question 9 highlight that the work life balance provision has encouraged the employees to keep high morale in the work environment. Caldwell (2005) supported the fact by acknowledging that extrinsic reward such as work life balance would help keeping a high morale in the workforce (refer to section 2.4.1 in chapter 2). The findings have been further established by the responses of the managers of Tesco as all the managers are agreed with the fact that improved workforce motivation has been observed following the current reward policy. Therefore, it can be concluded that Tesco has been following an effective reward policy which is being appreciated the workforce. However, some of the managers are not convinced with the sustainability of the existing reward policy. Therefore, workforce perception is needed to be monitored consistently to ensure the effectiveness of the reward policy.

Objective 3: To assess whether Tesco’s reward policies are compatible for generating improved workforce performance

The research objective can be addressed with the findings from question 10, question 11, question 12 and question 13 (refer to section 4.1 in chapter 4). Considering the findings from question 10, employees are convinced that organisational reward policy motivates the employees produce better performance. Not only the individual motivation but also the collective morale has been boosted as improved employee relation has been experienced (refer question 11 in chapter 4). The proposition of Raes et al. (2011) supported the fact as the author mentioned that rewards can address valence that ultimately leads to employee motivation (refer to section 2.2 in chapter 2). It seems Tesco has managed to address the perceived valence with the respective reward policy and therefore improved workforce motivation has been experienced. Adding to that, employees are willing to commit future to Tesco due to the effective reward policy (refer to question 12 in chapter 4). Furthermore, in reference to the findings to from question 13, improved team performance has been experienced due to the provision of collective incentive scheme. Therefore, it can be summarised that overall workforce productivity of Tesco has been increased due to the organisation reward policies. As mentioned by Dalal et al. (2008), workforce performance is likely to enhance in the existence of effective reward policy. The fact has also been supported by the managers of the organisation. The managers have experienced improved workforce performance recently and reward policy is supposed to be a major reason behind the fact. Considering all these findings, it can be concluded that Tesco’s reward policies are compatible for generating improved workforce performance.

Objective 4: To recommend reward strategies to Tesco so that employee motivation can be ensured along with improved workforce performance

This particular research objective can be addressed with the findings from question 14, question 15, question 16 and question 17 (refer to section 4.1 in chapter 4). In reference to the findings from question 14, considering employees’ feedback could help Tesco improving the organisational reward policy. Caldwell (2005) mentioned that improved employee motivation can be expected if the inputs are addressed with perceived outputs (refer to section 2.2 in chapter

2). Considering the employees’ feedback in this context would help Tesco understanding the perception of the employees and thus reward strategies can be improved. In reference to the findings from question 15, Tesco could focus on a paid holiday provision so that the employees’ motivation can be improved. Adding to that, findings from question 16 promote the fact that employees’ compensation packages are needed to be included with provision like ‘’Family

Health Protection’ as employees expect the organisation to take some initiative regarding family protection plan. Treven (2007) supported the fact by acknowledging that innovative reward policy helps in motivating the employees (refer to section 2.6 in chapter 2). Finally, Tesco could focus on succession of family members of the employees should a possible mishap occurs (refer to question 17 in chapter 4). The managers of Tesco have provided recommendations like frequent audit process and employee assessment program. On the other hand, the managers have discussed new reward policies such as paid recreational activities, team based rewards and family benefits so that employees can be motivated to further extent. Considering the primary findings from the study, it can be concluded that employee’ feedback evaluation and frequent audit can be conducted to monitor the perception of the employees regarding reward policies. On the other hand, arrange of non-monetary benefits such as paid holidays, family benefits, succession planning of family members etc can be focused to motivated the workforce.

6.2 Recommendations:

Evaluating the findings from the research study, following recommendations can help Tesco improving the reward policy and thus enhancing the workforce motivation.

Frequent audit process:

Tesco can initiate and frequent audit process in order to track the efficacy of the reward policy and the workforce performance. Although Tesco follows yearly audit process to monitor the workforce performance, increasing the frequency of the audit process might help the organisation tracking the internal business environment more effectively. For instance, a monthly audit can be initiated to monitor workforce performance. Enhancement of workforce performance would reflect positive motivation among the employees. The scenario would establish a successful reward strategy. On the contrary, dip in workforce performance would reflect employee demotivation pointing faulty reward policies.

Employee feedback evaluation:

From the findings from the study, it is to be believed that considering employees’ feedback would help Tesco evaluating the perception of the employees and thus, the organisational reward policy can be altered. Although Tesco empowers the employees, employees’ feedback is not considered during developing reward policies. However, employees’ inputs can be considered as it could help assessing workforce perception towards the organisational reward policy. Tesco can conduct timely survey engaging the employees so that the perception towards rewards and compensation can be gauged. Based on the employees’ perception, required measurements can be taken to improve reward policy.

Assistance of specialist consultants:

Tesco can consider taking assistance of various third party workforce management consultants to analyse the state of organisational reward policy and employee motivation. The organisation can hire external consultants to evaluate the workforce motivation level and judge the efficacy concerning organisational reward policy. Although the outsourcing of the process could turn out to be costly for Tesco, the proven mechanism of these specialist consultants is likely to promote the actual scenario. Thus, Tesco would be able to address various workforce issues without increasing the operational complexities.

Transparency in performance appraisal:

Workforce conflicts often lead to demotivation among the employees and unfair compensation policy might be a major reason behind that. Employees expect fair outputs in terms of rewards to address the inputs. Therefore, Tesco is recommended to emphasis on a transparent performance appraisal process. By this way, the employees can be ensured of a fair treatment policy for everyone. Employees’ compensation can be determined comparing with the core competencies mentioned in the job roles. A transparent performance appraisal process is likely to reduce organisational conflicts and accordingly the improved workforce motivation can be experienced.

6.3 Future work:

The study has been reflected the reward policies of Tesco and whether the organisational reward policies have helped in motivating the employees. From the primary findings from the study it has been found that Tesco has managed to improve employee motivation scenario and thus managed to enhance workforce performance through rewards. However, the sample size concerning the quantitative and qualitative data is considerably less. Responses of 50 employees have been considered during quantitative data analysis while 6 managers’ responses have been considered during qualitative data analysis. Considering more samples could help in deriving more accurate results. Therefore, future studies can be conducted in similar domain considering more sample size. Adding to that, this research project focuses only on the workforce of Tesco’s

Upton park branch. Therefore, findings from this particular study might not be relevant with

Tesco’s other branch organisations. As a consequence, a comparative study can be conducted considering similar organisations so that a general conclusion can be derived on whether reward has a positive and direct impact on employee motivation and workforce performance.

Chapter 7

Personal Development

7.1 Introduction:

The current chapter promotes a personal development process of during the research study. During the Assignment of the research study, a range of learning outcomes have been assessed that might help enriching personal and professional life in future. The overall chapter has been segregated into two parts. Initially, the personal skills prior to the research project have been reflected followed by the skills developed after successful completion of the study. Thus, attempt has been made to compare the self development process after the research work.

7.2 Skills before this project:

Before the initiation of the research project, I was not familiar with the real life business context. However, I had theoretical knowledge regarding various human resource functions like rewards, motivation and workforce performance while I could evaluate various types of data and estimate the probable research outcomes.

Theoretical knowledge:

Before the research project, I managed to develop a certain degree of knowledge regarding various human resource functions as I have been a student in similar field. After evaluating a range of theories and literatures, I understood that employees are motivated with various intrinsic and extrinsic rewards and as a consequence, workforce performance is improved. However, I also found out that despite knowing the fact, a considerable number of modern day organisations still experience dip in workforce performance. This fact has encouraged me to venture with the current research topic.

Estimation of probable research outcomes:

After evaluating several literatures and past researches I understood that rewards and compensation play crucial role in dictating workforce morale. As a consequence, workforce performance is influenced. I had also found that top multinational organisations offers a range of monetary and non-monetary benefits to the employees to motivate them. Tesco comes under this category and after evaluating various online articles I found some positive reviews regarding

Tesco’s reward policy. Therefore, I knew the probability of achieving positive results regarding Tesco’s reward policy was greater. In the due Assignment of the research, I found the same with the research findings.

Data evaluation techniques:

Throughout my academic career, I have learnt a range of data evaluation techniques whether it is secondary data or primary data. I used to analyse numeric data using MS Excel software during various workshop in my college. I also learnt to critically analyse theories so that the argument help assessing gaps in secondary data. I knew I had to analyse a range of primary and secondary data during the research study. Since I already had the required knowledge for primary and secondary data analysis, a significant amount of complexity had been reduced.

7.3 Skills after this project:

The research project has helped me developing a range of new skills that could help me in future. I have now developed practical knowledge when it comes to human resource management. I have also gained knowledge regarding a range of data collection techniques while I can now link the theoretical and practical knowledge.

Practical Knowledge:

Before the research project I had studied various books and journals and gained knowledge regarding rewards and its relation with employee motivation and workforce performance. However, I was not that aware of the practical scenario. The research study has helped me developing a practical knowledge. I managed to evaluate the case of Tesco and I found that employees’ expectation has been changing by time when it comes to rewards and compensation. Therefore, contemporary organisations like Tesco provide compensation packages comprising of various non-monetary benefits along with financial benefits. I have found that there is a gap between the theories and practical knowledge thanks to the research project.

Data collection techniques:

The primary findings from the research study have been achieved following quantitative and qualitative data analysis. Although I had knowledge about various data analysis techniques, I was not aware about the data collection procedures. I studied various techniques of collecting quantitative and qualitative data. I finally managed to conduct a survey questionnaire technique to collect quantitative data and followed interview process to collect qualitative data, Although I faced some problems initially, ultimately the data collection processes were successful. I believe the experiences gained from the field research activities have not only helped my research skills but also the communicating abilities with human participants that could help me in near future.

Ability to link primary and secondary findings:

The research study has enabled me to link the primary and secondary findings. In the due Assignment of the research study, I first analysed a range of past literatures and accordingly I analysed various primary and secondary data. I tried to compare the findings from secondary data and primary data at the end of the research study to gauge the level of accuracy. I found that findings from both primary and secondary data analyses were similar. From now on, the experience would help me assessing real life scenario with a blend of primary and secondary findings.

7.4 Conclusion:

The research project has helped me enhancing my knowledge base through the assessment of various learning outcomes. I can now analyse real life scenarios considering various primary and secondary data. I have gained practical knowledge regarding how modern day reward policies are used to enhance employee motivation and workforce performance. I believe the learning outcomes from the research study would help me enhancing my decision making skills that could be useful throughout my career.

 

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Appendix:

Exhibit 1: Survey questionnaire for the employees of Tesco Name:

Age:

Designation:

Question 1: Does Tesco provide financial benefits as per the industry standards?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 2: Does Tesco provide some non-monetary benefits along with the basic pay packages?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 3: Does your compensation package include fringe benefits like health insurance or bonuses?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 4: Does Tesco prioritise work-life balance?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 5: Tick from the following options your preferred benefits scheme.

• Share our success
• Colleague priviledgecard
• Pension
• Your leisure time
• Protecting your health
• Supporting your lifestyle

Question 6: Are you satisfied with your current compensation package?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 7: Do you experience job satisfaction due to the current compensation policy?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 8: Does the ‘Colleague Priviledgecard’ scheme encourage you to improve performance level?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 9: Are you convinced that the work-life balance provision prioritised by Tesco has helped you keeping a high morale?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 10: Would you agree that the organisational reward policy motivates you to produce better performance?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 11: Have you experienced better employee relations recently in the work environment?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 12: Does the extra benefits encourage you to commit future to the organisation?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 13: Have you experienced improved team performance due to the collective incentive scheme?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 14: Would you agree that considering employees’ feedback could help Tesco deploying an improved reward policy?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 15: Would you be tempted with the paid holiday reward policy?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 16: Could the ‘Family health protection’ plan motivate you to produce better performance?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

Question 17: How would you rate the provision of succession planning considering family members should some mishap happens with the employees?

• Excellent
• Good
• Fair
• Poor
• Very poor

Exhibit 2: Interview questions for the managers of Tesco

Q1. What are the aspects being prioritised by Tesco in the reward policy?

Q2. Do you think the current reward strategy is effective enough in ensuring workforce motivation?

Q3. Do you believe improved workforce performance can be experienced following the current reward strategy?

Q4. What aspects can be focused so that an improved reward strategy can be developed and workforce performance can be enhanced?