The Times 100
Business Case Studies
Editi 15
Edition
Motivational theory in practice at Tesco
Tesco
Introduction to Tesco
„
Largest British retailer
‰
„
Leading
g retail outlet on
3 continents
‰
‰
„
Net profit c £3.4 billion
Over 2,200 stores across world
Worldwide workforce of over 468,000 people
Continued growth relies on satisfied
customers
‰
Depends on motivated, flexible and well-trained
staff
Motivation
„
Motivated people achieve more
‰
‰
‰
„
Less likely to be absent
Have greater loyalty
Take more pride in work
M
Many
different
diff
t factors
f t
can motivate
ti t
‰
Financial
„
„
‰
Pay, bonus,
Benefits - e.g. holidays, pension
Non-financial
„
„
„
„
Sense of achievement
Responsibility and empowerment
Opportunity for advancement
Challenge and enjoyment
Motivation theory –
Frederick Taylor
„
One of earliest theories on motivation
‰
„
People
p motivated only
y by
y money
y
‰
‰
„
Published 1911
Paid for what they produced – ‘piece rate’
Most often applied in industrial/manufacturing
setting
i
Jobs broken down into small units of work
‰
‰
‰
Repetitive
R
titi – individual
i di id l only
l did one element
l
t
Little opportunity for creativity
No incentive to develop
Motivation theory
- Elton
Elt Mayo
M
„
„
1930s research at Western Electric
Company, Hawthorne, USA
‘Hawthorne effect’
‰
‰
„
Motivation improved by paying attention to people
Giving degree of freedom to make choices
Supporting factors
‰
‰
‰
Good teamwork
Non-repetitive work
Involving people in decision making
Motivation theory –
Maslow
„
Maslow’s
Maslow
s ‘Hierarchy
Hierarchy of Needs’
Needs
‰
‰
Basic needs must be met first
Achieving one level motivates to achieve the next
Motivation theory –
Herzberg
„
‘Two
Two-factor
factor’ theory
‰
Satisfiers
„
‰
Necessary for motivation
Hygiene factors
„
„
Create dissatisfaction if
absent or inadequate
Cannot improve
motivation alone
Tesco approach to
motivation
ti ti
„
Values employees
‰
‰
„
S
Supports
t work/life
k/lif b
balance
l
‰
‰
„
Provides realistic but challenging goals
Creates interesting work environment
Competitive salaries
Flexible working
Offers lifestyle rewards
‰
‰
‰
Discount gym membership
Health benefits
Staff discount
Tesco’s motivation activities
„
Tesco’s financial rewards package
‰
„
Effective communication
‰
‰
„
Recognition of staff effort by staff themselves
St t i career planning
Strategic
l
i
‰
‰
‰
„
Intranet, newsletters, daily team meetings, 1-to-1 discussions
Regular staff satisfaction survey highlights views
Value Awards
‰
„
Relevant and targeted
g
financial and non-financial benefits
Personal Development Plans – focus on the whole person
Training and learning opportunities
Appraisal with 360-degree feedback
Involvement in decision-making
‰
Staff forums on pay rises