• Identify the relationship between strategic objectives, functional management and business environment
• Demonstrate how management structures are influenced by the size of a company and the technology it employs, and how control procedures are an important corollary of management delegation.
• Determine the management problems arising from organizational change and how these might be mitigated.
The paper focuses on evaluating the motivational initiatives undertaken by Tesco’s management for enhancing the productivity and performance levels of the staffs operating across different levels and branches of Tesco. It would focus on evaluating two potential motivation theories and thereby in reflecting on the applicability of the motivational theories in Tesco Plc. The evaluation of the effectiveness of the use of the motivational theories in Tesco Plc would be subsequently evaluated based on understanding the potential of the customer servicing and operational staffs in servicing the needs of its customers. The research activity based on conducting needed evaluation on the above respect would further focus on the generation of effective recommendations for enhancing the customer servicing potentials of its staffs to both attract and retain potential customers.
Herzberg’s Two Factor Theory
Herzberg’s Two Factor theory of motivation identifies two factor sets as Hygiene and Motivation factors that contribute in motivating people in an organisation for fulfilment of business and organisational objectives. Hygiene factors are identified as factors that help in retaining employees in an organisation. The existence of effective policies and regulations, generation of effective compensation and incentive schemes, development of effective working conditions for the employees in the organisation and also enhancement of needed job security for the employees encourages the people to work in an effective fashion in the organisations. Similarly, the development of effective relationships between the managers and staffs along the different levels in the organisation further helps the managers in understanding the needs and problems of the staffs and thereby in addressing them in an effective fashion. The above activities largely help in enhancing the commitment levels of the employees in the organisation for generation of needed productivity. The hygiene factors also encourage the staffs to generate their opinions and suggestions for improvement in the working standards and other financial and non-financial factors that would help them to work in a productive fashion in the organisation (Longest, 2014).
On the other hand, motivational factors are identified as such factors that would help in motivating the people to work in a more committed and productive fashion in the business institution. The different sets of motivational factors are identified generation of greater opportunities for achieving higher positions in the organisation, recognising the activities and work done by employees in the organisation through generation of financial and non-financial rewards or statuses like high performing employees, generation of higher responsibility and authority in the organisation and also through the enhancement or generation of salary increments (Nelson & Quick, 2013). The above factors rightly help in motivating the staffs for working in an effective fashion in fulfilment of institutional and business needs. Herzberg’s Two Factor model discussed above is reflected as follows.
Herzberg’s Two Factor Theory
(Nelson & Quick, 2013)
The ERG Model or the Existence, Relatedness and Growth Model were developed by a psychologist, Clayton Alderfer. The first set of needs is identified as Existence needs that are demanded by an individual to meet their physical needs associated with better pay, better living and pay standards, financial and non-financial benefits and also needed job security and safety. The same requires the business institutions for generation of effective pay and safe work standards, right type of compensation structures based on industry standards and also generation of needed employment related security to the employees. The second set of needs identified as Relatedness where the individuals require the development of healthy and meaningful relationships with other people in the organisation and along the greater society (Williams, 2014). The business managers are thus required to encourage the growth of team work in the organisation and also to potentially interact with the staffs along the different levels. Finally, the third sets of needs are identified as Growth needs where the people desire the availability and generation of growth opportunities in the organisation. The fulfilment of growth needs require individuals to be effectively involved with the activities in an organisation. The individuals expect growth based on the performance generated by them relating to the different groups and departments in which they are involved. The same requires the business managers for training and empowering employees and also in providing chances for the people to gain growth along the organisational hierarchy (Kessler, 2013).
Tesco Plc operates as the market leader in the grocery retail sector of United Kingdom. The retail organisation operates based on a total strength of 480,000 employees operating across 11 different international markets to service the needs of its diversified customers. Tesco Plc also operates based on the development of a multichannel environment that helps the retail institution for servicing the needs of its customers through the use of different internet based mediums like Smartphones, tablets, laptops and personal computers. The use of the multichannel environment has largely helped Tesco Plc in cultivating a seamless retail and shopping environment for the consumers. Apart, from operating in the retail sector, Tesco Plc is also observed to service its customers through the development of Tesco Bank. The same helps in the generation of financial services and support to its customers. Tesco Plc operating as a multinational retail company and also acting based on a virtual environment rightly gains needed potential in serving around million customers visiting their different retail outlets on a weekly basis. The company continually focuses on providing needed training to its staffs such that the same can gain needed expertise for effectively servicing the needs of its customers (Tesco Plc , 2016).
Alderfer’s ERG Model
Implementation of Herzberg’s Two Factor Theory
Herzberg’s Two Factor theory of motivation is observed to be effectively implemented in regards to Tesco Plc. The retail organisation takes ample initiatives both along the hygiene and motivational aspect for encouraging needed employee productivity. The managers of Tesco Plc continually focuses on motivating the people based on the generation of effective communication of new business and employee policies. Further, the organisation also focuses on empowering individuals to take key business decisions and also in delegating responsibility for shouldering increased tasks (Davila & Epstein, 2014). The same generates adequate opportunity for the people to reflect needed talents and productivity and thereby to be recognised and promoted along higher organisational hierarchies. The management of Tesco also encourages the employees to take part in forums where they can present opinions and suggestions for work and pay improvements. Moreover, the management of Tesco takes further initiatives in training and enhancing the knowledge development of the people in the organisation such that same helps in enhancement of the expertise of the employees for servicing the needs of customers (Barrow & Mosley, 2011).
Similarly, Alderfer’s ERG Theory is also observed to be effectively implemented relating to employee motivation pursuits of Tesco Plc. The Existence needs of the people are aptly met by Tesco Plc based on the generation of effective compensation and incentive payment systems while also through the development of an effective work culture in the organisation. Further, the management of Tesco Plc also focuses on generation of effective amenities for its employees through the generation of restaurant facilities and also through the development of locker facilities for the staffs. Tesco Plc also addresses the security needs of its employees through the generation of schemes for protecting sick and retired individuals. Similarly, the retail organisation also focuses on generation of adequate measures for enhancing the safety and health standards of employees in the organisation. The Relatedness needs of the employees in the organisation are aptly met by the management of Tesco Plc through the encouragement of teamwork among various departments and levels in the organisation (Craig & Campbell, 2012). Use of the Steering Wheel approach is undertaken by Tesco Plc for both evaluating individual and group work activity while also encourages team performance in the organisation. Finally, the Growth needs of the employees are met by Tesco Plc based on generation of a work culture that requires growth and recognition of efforts generated by employees and managers along different levels and departments. The management of Tesco Plc focuses on conducting a 360 degree performance appraisal system that helps both in evaluating individual performance and also in recognising and celebrating growth generated by individual and group efforts. Further, other than recognition of skills and expertise reflected by employees Tesco’s management also focuses on generating career growth for all based on the incorporation of promotional opportunities. The existence of a fast-track management program at Tesco Plc contributes in helping staffs with needed potential and expertise to rise up to higher levels in the business organisation (Maslow, 2013).
Overview of Tesco Plc
A report published by the Institute of Customer Service (ICS) in United Kingdom reflects that Tesco ranks high regards to customer satisfaction compared to other retail firms operating in the retail sector of the region. ICS’s Index of Customer Satisfaction highlights Tesco Plc as a high rank based company related to the aspect of customer satisfaction. The high rank of Tesco Plc in the dimension of customer satisfaction is observed to be generated based on the customer services actions provided by the sales and customer services staffs operating in Tesco Plc. Sales staffs of Tesco Plc are generated adequate training and also duly motivated for operating in a committed fashion for meeting the customer satisfaction and sales objectives of the retail organisation. The sales staffs of Tesco duly motivated by the company management focuses on providing the right quality of customer service and also in providing access of the customers to the products and commodities demanded by customers. Further, the customer servicing staffs of Tesco Plc are also observed in providing the right quality of customer services based on generating potential solutions to the problems faced by customers on a day-to-day basis. The above activities conducted by the committed and loyal staffs of Tesco Plc increasingly help in both attracting and retaining a larger customer base for the retail organisation (Ward, 2015).
The management of Tesco Plc generates increased importance to the parameter of customer satisfaction. Customer satisfaction is identified as a strategic initiative undertaken by the grocery retail institution such that it focuses on understanding the changing demands and needs of customers based on continual interaction of its customer servicing and sales staffs with the customers through the use of different channels and mediums. Information gained on the above respects contributes in helping Tesco Plc service the needs of customers in an effective fashion. Moreover, the use of the multichannel mediums is also made by Tesco Plc based on training its staffs to generate customer services in the digital and multichannel environment. Customer servicing and sales initiatives carried out by Tesco Plc along the multichannel environment not only help the retail organisation in penetrating a larger consumer base while also help in the generation of a seamless shopping experience to the consumers. The above initiatives carried out by the high performing employees in the increasingly motivated environment and thriving work culture in Tesco rightly contributes in the generation of increased customer satisfaction for the retail organisation (Payne & Frow, 2013).
Implementation of Motivational Theories in Tesco Plc
Tesco Plc can effectively motivate its staffs in a much enhanced fashion based on conducting of employee satisfaction surveys on an annual basis. The conducting of employee satisfaction surveys would rightly help Tesco Plc understand the needs and expectation of both the sales and customer servicing staffs and thereby help in generating right quality of training to the employees for enhancing their current level of expertise and knowledge. Further, Tesco Plc also needs to incorporate a 360 degree performance appraisal program for its sales and customer servicing staffs such that inputs and feedbacks gained from the customers regarding the quality and potential of services and support generated by the staffs would effectively help in motivating the internal people for generating increased productivity and sales and customer servicing performance in the long run. The management of Tesco Plc is also required to focus on selecting and appointing supervisors along various departments and levels in the organisation such that the same can help in rightly monitoring the activities and performances of the staffs for generating quality customer services. The supervisors duly appointed by Tesco’s management can also help in highlighting to the management high performing sales and customer servicing staffs and thereby helping them to get aptly recognised and rewarded by the top management.
The conducting of the analysis helped in gaining an effective theoretical understanding of two major motivational theories like Herzberg’s Two Factor model and Alderfer’s ERG Theory. The conducting of analysis of the specified motivational theories is subsequently followed by a discussion that reflects the applicability of the motivational theories outlined above on the retail operations of Tesco Plc. The analysis reflects the manner in which Tesco’s management effectively motivates its customer servicing and retail operations staffs based on the guidelines generated by the motivational theories. Further, evaluation is also generated based on the impacts of motivational initiatives generated by Tesco’s management on enhancing the parameter of customer satisfaction for the retail organisation. The analysis reflects that the use of the motivational theories by Tesco’s management rightly helps in encouraging the staffs to generate quality customer services thereby generating increased customer satisfaction. Effective recommendations are also generated for enhancing the motivational level of Tesco’s staffs such that they can generate greater productivity and performance in the long run.
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