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How employee motivation can result in meeting customer satisfaction? A case study on Tesco PLC, UK.

Harvard, 17000 Words

Abstract

Employees are the assets of the company. This statement seems to be very attractive for the employees working for different organization. However, practical implementation of this statement is not as simple as the statement itself. Though employees of an organization is very much essential for it, but the main aim or the long term aim of a firm is to make growth of it. There are so many changes have come in this modern era. There is a positive relationship between the behaviour of the customer and the employee’s motivation (Kreitner, 1995). The employees will do positive for the customer or serve well to the customer’s only if the motivated positively by the organization (Lindner, 1998). The satisfaction of a customer depends on the fulfilment of his demands. Service oriented firms mainly focus on the level of satisfaction that it gives to the customers and for that reason they motivate their employees. The core aim of this research was to investigate how employee motivation results in customer satisfaction in the retail industry, UK. The research methodology of this research was based on deductive approach and quantitative method. The questionnaire survey was conducted among the 100 customers of Tesco and semi-structured interview of the 20 employees taken for collecting empirical data. The descriptive statistics was used to analyse the research findings. Finally, the regression model was used to investigate the impact of employee motivation on customer satisfaction. It is found that the tradition and culture of the organization, flexibility in routine work, empowerment through involving in the decision making process of the company and respect to the creativity and skilled manpower are the key factors considered by Tesco to motivate their employees. Tesco has a culture to show respect in reply to their good job. Tesco also gives time to discuss their problem with the manager and they try to solve the problem of the employee immediately. Tesco is very concerned about the problems and needs of its employee. It is found that Tesco provides bonus or reward in return of employees’ good work to motivate employees. It is found that most of the employees are motivated and satisfied with the working environment, relationship with the colleague and supervisor, financial benefits, career development opportunity and promotion prospect. It is found that there is significant direct positive impact of service quality provide by motivated employees on the customer satisfaction. This research focused on the employee motivation and the customer satisfaction in Tesco plc. Every company is largely dependent on customer satisfaction. If customers are satisfied with the company’s product or service, the company will be booming day by day. And it will be only then when the company’s employee motivation works properly. In every super shop or vast retail business, good service is the most important issue and good service comes from well-motivated employee. Tesco plc needs to focus on employee motivation that can do a great result in creating higher customer satisfaction and also to make ultimate customers for the company.

 

 

Contents

Chapter 1: Introduction

1.1 Research Background

1.2 Background of the Case Company- Tesco Plc

1.3 Problem statement

1.4 Research aim

1.5 Research objectives

1.6 Researcher questions

1.7 Research Hypotheses

1.8 Rationale of the study

1.9 Research Structure

Chapter 2: Literature Review

2.1 Introduction

2.2 Theoretical Background

2.2.1 Motivation

2.2.2 Motivational theory

2.2.2.1 Maslow’s hierarchy of needs

2.2.2.2 Herzberg’s two-factor theory

2.2.2.3 Adams’ Equity Theory

2.2.2.4 McClelland’s theory of needs

2.2.2.5 McGregor’s theory x and y

2.2.3 The Basic Motivational Process

2.3 Empowerment

2.3.1 Empowerment process

2.4 Employees development

2.4.1 Recruitment

2.4.2 Training the employee

2.4.3 Promotion of team work

2.4.4 Providing needed support system

2.4.5 Employee retention

2.5 Customer satisfaction

2.5.1 Customer Service

2.5.2 Customer Perceived Service Quality

2.6 The Link between Employee motivation and Customer Satisfaction

2.7 Previous Researches on How Employee Motivation Result in Customer Satisfaction

2.8 Conceptual Framework of the study

2.9 Summary

Chapter 3: Methodology

3.1 Introduction

3.2 Research Philosophy

3.2.1. Positivism

3.2.2. Realism

3.2.3. Interpretivism

3.2.4 Chosen research philosophy and justification

3.3 Research Approach

3.3.1 Chosen research approach and justification

3.4 Research method

3.4.1 Chosen research method and justification

3.5 Research Strategies

3.5.1 Chosen research strategy and justification

3.6 Sampling method

3.7 Data collection method

3.7.1 Secondary data collection

3.7.2 Primary Data Collection

3.7.2.1 Interview of Employees

3.7.2.2 Questionnaire Survey of Customer

3.8 Data analysis tools

3.9 Validity & Reliability

3.10 Ethical issues

3.11 Research limitations

Chapter 4: Findings & Analysis

4.1 Introduction

4.2 Findings & Analysis

4.2.1 Demographic Characteristics of the Sample

4.2.2 Findings & Analysis of Employee Interview Findings

4.2.3 Findings and Analysis of the Customer Survey

4.2.3.1 Customers’ perception towards services quality provided by the staff of Tesco

4.2.3.2 Customer Satisfaction

4.3 Regression Analysis

Chapter 5: Conclusion & Recommendations

5.1 Overview of the Research Objectives

5.2 Conclusion

5.3 Recommendations

5.4 Limitations and Suggestions for Future Researches

References

Appendix A

Appendix B

 

 

List of Table

Table 3.1: key differences between inductive and deductive approach 25
Table 3.2: key differences between quantitative and qualitative method 27
Table 3.3: Research strategies 28
Table 4.1: Regression result of the impact of employee motivation on service quality 48
Table 4.2: Regression result of the impact of service quality on customer satisfaction 48

List of Figure

Fig.2.1: Maslow’s Hierarchy Pyramid 08
Fig. 2.2: Dual structure theory of motivation 10
Fig. 2.3: Phase of motivation process 12
Fig.2.4: Empowerment process management model 14
Fig.2.5: Human Resources Strategies for employee’s development 17
Fig.2.6: The Link between Employee motivation and Customer Satisfaction 20
Fig.2.7: Conceptual Framework 22
Fig.4.1: Responses on the employees working hours 34
Fig.4.2: Level of employee satisfaction with current work 35
Fig.4.3: Level of employee satisfaction with present salary 36
Fig.4.4: Level of employee satisfaction with the promotion prospect in Tesco 37
Fig.4.5: Level of employee satisfaction with the Individual growth & career development in Tesco 37
Fig.4.6: Level of employee satisfaction with the colleagues 38
Fig.4.7: Responses on whether employees are being praised for good work 40
Fig.4.8: Responses on whether employees have access to discuss with line managers  regarding problems 41
Fig.4.9: Responses on the Assurance of Service of Tesco 43
Fig.4.10: Responses on the Reliability of Service of Tesco 44
Fig.4.11: Responses on the Empathy of Service of Tesco 45
Fig.4.12: Responses on the Tangibility of Service of Tesco 46
Fig.4.13: Responses on the Responsiveness of Service of Tesco 47
Fig.4.14: Level of Customer Satisfaction to Tesco 48


Chapter 1: Introduction

1.1 Research Background

Employees are the assets of the company. This statement seems to be very attractive for the employees working for different organization. However, practical implementation of this statement is not as simple as the statement itself. Though employees of an organization is very much essential for it, but the main aim or the long term aim of a firm is to make growth of it. There are so many changes have come in this modern era. There is a positive relationship between the behaviour of the customer and the employee’s motivation (Kreitner, 1995). The employees will do positive for the customer or serve well to the customer’s only if the motivated positively by the organization (Lindner, 1998). The satisfaction of a customer depends on the fulfilment of his demands. Service oriented firms mainly focus on the level of satisfaction that it gives to the customers and for that reason they motivate their employees.

In UK retail firms have to face a very big and really competitive situation and for that reason they are only able to make a little turnover for the employees working for them. If employees of a firm remain unemployed then the turnover of that firm will also remain low. The retail firm of UK discovered that the employees of a firm themselves are big stakeholders for the firm. If the any organization faces problem then the main sufferer of that firm are its employees (Sparks et al., 2003). On the other hand a very big turnover also doesn’t give a very positive position to that firm, and then the customers will not also be able to receive service effectively. So the store manager of a firm has to have a position to make decision for the staff and judge the complaints of the customers, and the store manager also has to make sure the flow of his judgement to all the staffs (Linder, 1998).

This research will demonstrate on the employee motivation and the customer satisfaction in Tesco plc. Every company is largely dependent on customer satisfaction. If customers are satisfied with the company’s product or service, the company will be booming day by day. And it will be only then when the company’s employee motivation works properly. In every super shop or vast retail business, good service is the most important issue and good service comes from well-motivated employee. Tesco plc needs to focus on employee motivation that can do a great result in creating higher customer satisfaction and also to make ultimate customers for the company.