Impact of employee motivation on their job satisfaction: a ... of employee motivation on their job satisfaction: ... the present study will investigate the impact of employee motivation on job ... 2.3 Theories of motivation

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    Impact of employee motivation on their job satisfaction: a case study of Tesco, UK

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    ABSTRACT

    This study analysed the impact of employee motivation at Tesco on enhancing job satisfaction

    of its employees.For conducting the research study, secondary information were gathered from

    various external and internal secondary sources. Primary information was collected by

    conducting individual in-depth interview with manager and self-administered survey with

    employees of Tesco, UK. The study findings revealed that, Tesco implemented various

    motivations programs like training and development programs, rewards and recognitions

    programs and staffs discounts for enhancing employee job satisfaction. Most of the employees

    were satisfied with motivational programs of the company. However, over work pressure,

    sudden changes in company policies, long working hours and lack of salary increments created

    employee dissatisfaction. The researcher recommended for the adoption of effective training

    and development programs, increment in salary and incentives andconsideration of employees

    opinions for enhancing the job satisfaction of the employees.

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    Table of Contents

    ABSTRACT ........................................................................................................................................ 2

    LIST OF FIGUERS AND PIE CHARTS .................................................................................................. 5

    CHAPTER 1: INTRODUCTION ........................................................................................................... 6

    1.1 Introduction .......................................................................................................................... 6

    1.2 Aim and objectives of the research ...................................................................................... 7

    CHAPTER 2: LITERATURE REVIEW ................................................................................................... 8

    2.1 Introduction .......................................................................................................................... 8

    2.2 Employee motivation ............................................................................................................ 8

    2.3 Theories of motivation .......................................................................................................... 8

    2.4 Job satisfaction .................................................................................................................... 13

    2.5 Factors effecting employee job satisfaction in UK retail sector ......................................... 13

    2.6 Significance of employee motivation in UK retail industry ................................................. 15

    2.7 Importance of employee motivation on job satisfaction in retail industry ........................ 15

    2.8 Case study of Tesco, UK ...................................................................................................... 16

    CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY ................................................................. 18

    3.1 Introduction ........................................................................................................................ 18

    3.2 Research philosophy ........................................................................................................... 18

    3.3 Research approach .............................................................................................................. 18

    3.4 Research Design .................................................................................................................. 19

    3.5 Research strategy ................................................................................................................ 19

    3.6 Data collection methods ..................................................................................................... 20

    3.7 Sample selection ................................................................................................................. 20

    3.8 Data analysis ........................................................................................................................ 21

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    3.9 Ethical issues ....................................................................................................................... 21

    CHAPTER 4: DATA ANALYSIS AND DISCUSSION ............................................................................ 22

    4.1 Introduction ........................................................................................................................ 22

    4.2 Qualitative analysis ............................................................................................................. 22

    4.3 Quantitative Data Analysis .................................................................................................. 24

    4.4 Identifying gaps ................................................................................................................... 32

    4.5 Summary ............................................................................................................................. 33

    CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS............................................................... 34

    5.1 Introduction ........................................................................................................................ 34

    5.2 Conclusions ......................................................................................................................... 34

    5.3 Recommendations .............................................................................................................. 35

    5.4 Research limitations ............................................................................................................ 36

    5.5 Recommendations for future researches ........................................................................... 36

    REFERENCE .................................................................................................................................... 38

    APPENDIX ...................................................................................................................................... 42

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    LIST OF FIGUERS AND PIE CHARTS

    List of figures

    Figure: 2.1 Maslows Theory of Motivation /Satisfaction .9

    Figure: 2.2 Herzbergs Two-Factor Theory ..10

    Figure 2.3: Vrooms expectancy theory .11

    List of pie charts

    Pie chart 4.1: Gender of the survey respondents ..........................................................25

    Pie chart 4.2: Age class of the survey respondents ......................................................26

    Pie chart 4.3: Working experience at Tesco Plc ............................................................27

    Pie chart 4.4: Parameters that influence employee's job satisfaction levels .................28

    Pie chart 4.5: Satisfaction among employees in concern to Tesco ambience ..............29

    Pie chart 4.6: Strategy adopted at Tesco for motivating employees .............................30

    Pie chart 4.7: Issues at Tesco plc ..................................................................................31

    Pie chart 4.8: Recommendations to Tesco ....................................................................32

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    CHAPTER 1: INTRODUCTION

    1.1 Introduction

    Due to high competition in the market, employee job satisfaction is necessary for retaining

    potential staff in the firm. As per Ali and Ahmed (2009), employee motivation is an important

    strategy applied by many organizations for improving job satisfaction of employees. Incentives,

    effective working environment, reasonable pay and effective training and development

    programs are the commonly used motivation programs for enhancing the job satisfaction and

    thereby performance of employees (Saleem, Mahmood and Mahmod, 2010). However, Spanier

    (2015) observed that, presently most of the retail and fast food organizations like KFC, Asda,

    Primark and McDonalds face high number of employee turnover due to over work pressure,

    lack of effective communication, gender and racial discriminations and unequal pay. Such issues

    in the firms demotivated the staffs and it negatively affects the employee performance. In this

    context, the present study will investigate the impact of employee motivation on job

    satisfaction by focusing on the retail sector in UK.

    Measurement of job contentment is a complicated task because the description of work

    satisfaction varies according to different organizations and also from each individual to another

    within the company suggests Aziri (2011). Retail industry is most sophisticated in terms of

    segmentation, integration and concentration. It employs almost 3 million personnels i.e.; over

    11% of the total workers and the retail sector contributes to almost 8% GDP of the UK (Akter,

    2012). Also Akter (2012) states that innovative management schemes and cultures are utilized

    by these retailers to enhance and ensure efficiency at all levels of its development. One of the

    important tools for HR and management control is the reward system.

    Tesco PLC, worlds second largest retailer in terms of revenue and third largest in terms of

    profits, is a general merchandise and multinational grocery retailer headquartered at England,

    UK. With 28.4% market share, Tesco has its stores across 12 countries (Tesco, 2015). Having its

    outlets at various cultural domains, motivation of the employees on continuous basis is vital for

    preserving job satisfaction among the employees and thus realizes the aims and objectives of

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    the business venture. Hence this study investigates the impacts of employ motivation on job

    satisfaction, considering Tesco, UK as a case study.

    In the competitive business world, job satisfaction of employees is necessary for the retention

    of potential employees in the firm. Employee motivation programs play an important role in

    enhancing job satisfaction and performance level of staffs.However, unfair wages andoverwork

    pressure in retail sector demotivated employees and it reduces employee performance (Singh

    and Tiwari, 2011). Being one of the leading retailers in UK, Tesco offers career development and

    training programs, high basic pay packages, pension and incentive schemes to motivate and

    improve the satisfaction level of its employees (Rangaraju and Kennedy, 2012). However, Tesco

    has recently been accused of poor labour relations with its employees for sick leave regulations,

    cutting down pay for employees working in holidays and overtime and anti- labour union

    policies (Lowery, 2016). In this context, the present study is significant for evaluating

    effectiveness and issues associated with the motivational strategies of Tesco and it offers

    suggestions for improving the strategies.

    1.2 Aim and objectives of the research

    The present study mainly aims to analyse the role of employee motivation on enhancing the job

    satisfaction of the employees by considering the case of Tesco in UK.

    The main objectives are:

    To analyse the major factors affecting employee job satisfaction in retail sector.

    To investigate the significance of employee motivation in retail industry

    To assess the role of employee motivation on enhancing employee job satisfaction at

    Tesco.

    To provide recommendations for improving the employee motivation programs of Tesco

    for enhancing job satisfaction.

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    CHAPTER 2: LITERATURE REVIEW

    2.1 Introduction

    Employee motivation and its various influential factors such as incentive pay, reward system

    and working environment have been a common theme for academic practitioners and

    researchers from marketing disciple (Hameed and Waheed, 2011).

    2.2 Employee motivation

    Hameed and Waheed (2011) defined employee motivation as an internalized process which

    stimulates the performances of employees, through making alternation on their attitude and

    behavior that works well for the amelioration of the organization. In essence, Furham,

    Eracleous and Chamorro-Premusiz (2009) highlights employee motivation as the central theme

    of organization that encourages employees to perform tasks assigned to them with great

    commitment and additional effort.

    2.3 Theories of motivation

    Maslows Theory of Motivation /Satisfaction

    The main aspects of motivation includes interesting, challenging work and experiencing new

    opportunities which is developing professionally and personally for providing valuable

    contributions to the work. Maslows (1968) theory was proven to be the best theory on

    motivation. Even though this theory was not focused on work incentives, the effect can easily

    be identified and can draw keen attention, states Pullen (2014.)

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    Figure: 2.1 Maslows Theory of Motivation /Satisfaction

    Source: Pullen (2014)

    According to Maslow, there are five types of grades allocated to classified needs. The

    dissatisfaction of one will affect the other needs also. When all the needs are satisfied it will

    lead to individual satisfaction and thereby initiating motivation, says McKenna (2012).

    The hierarchy of needs is mostly illustrated using a pyramid with the fundamental needs at the

    bottom and the self actualisation needs at the top.Maslow classified these needs in to different

    sections that are, social needs, self-actualization, for respect and the safety and physiological

    needs. In physiological needs covers the needs for oxygen, food, clothing and water .These are

    the prime needs specified by Maslow. Next is the safety need, every person have the right to

    work in a safe condition. The next need is the social need. It covers the need for appreciation,

    respect, success, status and fame. The final need in the top of the pyramid is the self

    actualization need which aims the dreams and hopes of the employee.

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    McKenna (2012) identified that, it is difficult to use qualitative measurements in these

    dimensional needs specified by Masglow. This in turn affects the timing and satisfaction of the

    next level needs, reports McLeod (2014).

    Herzbergs Two-Factor Theory

    According to this theory job satisfaction and dissatisfaction are independent of each other.

    Motivational factors and hygiene factors are one of the two factors that affect the satisfaction

    and dissatisfaction and also linked with higher and lower human needs. Company policy, work

    conditions, interpersonal relationships, job security, salary and social status are coming under

    hygiene factors. Hygiene factors are the fundamental factors that should be provided by any

    organization before they think about motivational aids, views Whitehead (2015).Motivational

    factors associated with nature of work, progress, responsibility, sense of personal growth,

    achievement and recognition.

    Figure: 2.2 Herzbergs Two-Factor Theory

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    Source: Whitehead (2015)

    As observed by Herzberg, dissatisfact...

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