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Investigation of the impact of remuneration on employee motivation in UK retail industry: A case study of ‘Tesco PLC’

Harvard, 14000 Words

Abstract

 

The purpose of the study to analyse the impacts of remuneration system at UK retail industry can motivate employees at work and improve different features of UK retail business operations. Different previous literatures about remuneration and employees motivation has analysed with proper in-text citation to develop literature part of the study. The researcher used interpretive research philosophy, survey research strategy, and questionnaire and interview survey for primary data collection technique. The researcher also uses random sampling procedure to collect questionnaire data from Tesco employees and interview data from Tesco managers. The researcher maintained research ethics properly for ensuring effective scientific research conducting process. The researcher has found 96 percent Tesco employees have high motivation at work due to the effect of remuneration package and theoretical practices. Tesco provide support to family and social stability for gaining high motivation of employee and that is supported by 91 percent respondents. Remuneration with economic solvency motivates employees at work and Tesco employees have 91 percent positive response on this issue. Therefore, Tesco needs to improve smart remuneration package and HR managers’ roles for improving employees’ motivation to gain business success.

 

 

 

Table of Contents

 

Acknowledgement

Declaration

Abstract

Chapter 1: Introduction

1.1        Background of the study

1.2        Brief Introduction to TESCO PLC

1.3        Rationale of the Study

1.4        Research Aim

1.5        Research Objectives

1.6        Research Questions

Chapter 2: Literature Review

2.1 Introduction

2.2 Motivation

2.3 Sources of Motivation

2.3.1 Intrinsic Motivation

2.3.2 Extrinsic Motivation

2.4 Theories of Motivation

2.4.1 Maslow’s Hierarchy of Needs

Figure 2.1: Maslow’s Hierarchy of Needs

2.4.2 Herzberg’s two factor theory

Figure 2.2: Herzberg’s two factor Theory

2.4.3 Expectancy Theory

Figure 2.3: Expectancy Theory

2.4.4 Equity Theory

Figure 2.4: Equity Theory

2.5 Retail Industry in UK

2.6 Motivation in retail industry

2.7 Remuneration and Motivation

2.8 Conclusion

Chapter 3: Research Methodology

3.1 Introduction

3.2 Philosophy of the Research

Figure 3.1: Research Philosophy

3.2.1 Positivism philosophy

3.2.2 Realism philosophy

3.2.3 Interpretive philosophy

3.2.4 Pragmatism philosophy

3.2.5 Selected research philosophy

3.3 Design of the research

3.3.1 Selected research design

3.4 Strategy of the Research

3.4.1 Selected Research Strategy

3.5 Approach of data collection

3.5.1 Quantitative data collection approach

3.5.2 Qualitative data collection approach:

3.5.3 Selected data collection approach

3.6 Sources of data collection

3.6.1 Primary sources

3.6.1.1 Selected Primary Data Collection Technique

3.6.2 Secondary sources

3.6.2.1 Selected Secondary Data Collection Techniques

3.7 Sampling techniques

3.7.1 Selected sampling method

3.8 Research time management

3.9 Ethical Considerations

3.10 Conclusion

Chapter 4: Findings and Analysis

4.1 Introduction

4.2 Findings of Questionnaire Survey

4.2.1 Personal Information of Respondents

Table 4.1: Age of Respondents

Figure 4.1: Age of Respondents

4.2.2 Motivation at Work

Table 4.2: Tesco employees have high motivation at work

Figure 4.2: Tesco employees have high motivation at work

Table 4.3: Tesco cares a lot to employees that motivate employees at work

Figure 4.3: Tesco cares a lot to employees that motivate employees at work

Table 4.4: Smart remuneration package is motivating employees at work

Figure 4.4: Smart remuneration package is motivating employees at work

Table 4.5: Workplace safety measures are improving employees motivation

Figure 4.5: Workplace safety measures are improving employees motivation

4.2.3 Application of Maslow’s Hierarchy of Needs

Table 4.6: Tesco fulfil employees psychological needs

Figure 4.6: Tesco fulfil employees psychological needs

Table 4.7: Tesco provide support to employees family and social stability

Figure 4.7: Tesco provide support to employees family and social stability

Table 4.8: Tesco create friendly working environment that motivates employees at work

Figure 4.8: Tesco create friendly working environment that motivates employees at work

Table 4.9: Tesco set remuneration by considering uniqueness of employees

Figure 4.9: Tesco set remuneration by considering uniqueness of employees

Table 4.10: Moral business practices increase employees motivation and creativity at work

Figure 4.10: Moral business practices increase employees motivation and creativity at work

4.2.4 Application of Expectancy Theory

Table 4.11: Care of employees increase the effort of employees at work

Figures 4.11: Care of employees increase the effort of employees at work

Table 4.12: High responsibility of HR Managers on employee motivates employees at work

Figure 4.12: High responsibility of HR Managers on employee motivates employees at work

Table 4.13: Reward options are increasing employees motivation and effort

Figure 4.13: Reward options are increasing employees motivation and effort

4.2.5 Application of Equity Theory

Table 4.14: Intrinsic and extrinsic rewards are increasing employees motivation

Figure 4.14: Intrinsic and extrinsic rewards are increasing employees motivation

Table 4.15: Equity and justice practices are motivating employees at work

Figure 4.15: Equity and justice practices are motivating employees at work

Table 4.16: Ethical practice of Tesco equity model is motivating employees at work

Figure 4.16: Ethical practice of Tesco equity model is motivating employees at work

4.2.6 Impact of Remuneration on Employee Motivation

Table 4.17: Employees are satisfied over remuneration package of Tesco

Figure 4.17: Employees are satisfied over remuneration package of Tesco

Table 4.18: Effective remuneration package motivate employees at work

Figure 4.18: Effective remuneration package motivate employees at work

Table 4.19: Remuneration with economic solvency motivates employees at work

Figure 4.19: Remuneration with economic solvency motivates employees at work

4.3 Findings of Interview Survey

4.4 Conclusion

Chapter 5: Conclusion and Recommendation

5.1 Concluding Remark

5.2        Summary of Objectives based Findings

5.3 Recommendations

5.4 Scope for Further Research

References

Appendix A: Questionnaire Survey

Smart remuneration package is motivating employees at work

Tesco create friendly working environment that motivates employees at work

Tesco set remuneration by considering uniqueness of employees

Appendix – B: Qualitative Interview

 

 

 

 

 

List of Figures

 

Figure 2.1: Maslow’s Hierarchy of Needs. 11

Figure 2.2: Herzberg’s two factor Theory. 12

Figure 2.3: Expectancy Theory. 13

Figure 2.4: Equity Theory. 14

 

Figure 3.1: Research Philosophy. 20

 

Figure 4.1: Age of Respondents. 31

 

Figure 4.2: Tesco employees have high motivation at work. 32

Figure 4.3: Tesco cares a lot to employees that motivate employees at work. 33

Figure 4.4: Smart remuneration package is motivating employees at work. 34

Figure 4.5: Workplace safety measures are improving employees motivation. 34

 

Figure 4.6: Tesco fulfil employees psychological needs. 36

Figure 4.7: Tesco provide support to employees family and social stability. 36

Figure 4.8: Tesco create friendly working environment that motivates employees at work. 37

Figure 4.9: Tesco set remuneration by considering uniqueness of employees. 38

Figure 4.10: Moral business practices increase employees motivation and creativity at work. 39

 

Figures 4.11: Care of employees increase the effort of employees at work. 40

Figure 4.12: High responsibility of HR Managers on employee motivates employees at work. 41

Figure 4.13: Reward options are increasing employees motivation and effort 42

 

Figure 4.14: Intrinsic and extrinsic rewards are increasing employees motivation. 43

Figure 4.15: Equity and justice practices are motivating employees at work. 44

Figure 4.16: Ethical practice of Tesco equity model is motivating employees at work. 45

 

Figure 4.17: Employees are satisfied over remuneration package of Tesco. 46

Figure 4.18: Effective remuneration package motivate employees at work. 47

Figure 4.19: Remuneration with economic solvency motivates employees at work. 48

 

 

List of Tables

 

Table 4.1: Age of Respondents. 30

 

Table 4.2: Tesco employees have high motivation at work. 31

Table 4.3: Tesco cares a lot to employees that motivate employees at work. 32

Table 4.4: Smart remuneration package is motivating employees at work. 33

Table 4.5: Workplace safety measures are improving employees motivation. 34

 

Table 4.6: Tesco fulfil employees psychological needs. 35

Table 4.7: Tesco provide support to employees family and social stability. 36

Table 4.8: Tesco create friendly working environment that motivates employees at work. 37

Table 4.9: Tesco set remuneration by considering uniqueness of employees. 38

Table 4.10: Moral business practices increase employees motivation and creativity at work. 39

 

Table 4.11: Care of employees increase the effort of employees at work. 40

Table 4.12: High responsibility of HR Managers on employee motivates employees at work. 41

Table 4.13: Reward options are increasing employees motivation and effort 42

 

Table 4.14: Intrinsic and extrinsic rewards are increasing employees motivation. 43

Table 4.15: Equity and justice practices are motivating employees at work. 44

Table 4.16: Ethical practice of Tesco equity model is motivating employees at work. 45

 

Table 4.17: Employees are satisfied over remuneration package of Tesco. 46

Table 4.18: Effective remuneration package motivate employees at work. 47

Table 4.19: Remuneration with economic solvency motivates employees at work. 48

 

 


Chapter 1: Introduction

  • Background of the study

Employee satisfaction is important for every company in this current competitive business era (Flynn, 2010). This one factor can lead towards progress or relapse (Beswick, 2007). In the absence of a motivation plan, employees will not fill ready to accomplish their objectives. Moreover, managers should look for to empower them through promotion opportunities, monetary rewards (Greenberg and Baron, 2008; Skudiene and Auruskeviciene, 2012). The number one customers of a company are its people. Look after employees first and then customers last. Motivation is an internal feeling which is interrelated with productivity and efficiency (Manolopoulos, 2008; Leopold and Harris, 2009; Eisele et al., 2013).  Motivation is a set of attitudes which stimulated a person to act in a specific goal directed way (Warr, 2007; Ankil and Palliam, 2012). Employee motivation depends on various factors among them remuneration is very important (Gignac and Palmer, 2011).

 

Remuneration can motivate employees to be more productive and efficient. Remuneration can also be praise or acknowledgment (Amar, 2004; Hitt, Black and Porter, 2005; Nohria, Groysberg and Lee, 2008). The relationship between remuneration and employee motivation changes according to situation of employees but many factors remain same (Armstrong, 2006; Panagiotakopoulos, 2013). In the first remuneration must be enough to meet the basic human needs. Secondly it must be remembered that people compare their remuneration to those of others (Bjerke, Ind and De Paoli, 2007; Deci and Ryan, 2008). If inequality rises it will lead to dissatisfaction (Latham and Pinder, 2005). Organisations are under extreme pressure to improve performance and become increasingly competitive (Mullins, 2005; Flynn, 2011). So, it emphasise the importance of market research and identify the best rewards to properly motivate the employees of Tesco in the retail industry (Eisele et al., 2013).