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Tesco Case Study

2630 words - 11 pages

Motivational theory in practice at Tesco

Curriculum Topics • Motivation • Taylor’s theory • Mayo effect • Maslow and Herzberg

Tesco began in 1919 with one man, Jack Cohen, a market stallholder selling groceries in London. TESCO was formed out of a merger with T.E. Stockwell from whom he purchased tea for sale on the stall. The first store opened in 1929. Since then, Tesco has expanded across the world. It now has over 2,200 stores including hypermarkets and Tesco Express outlets to meet different customer needs. As a conglomerate Tesco also offers alternative goods and services such as insurance, banking and online shopping. With net profits of ...view middle of the document...

A motivated workforce will work harder and achieve greater output in less time, therefore reducing labour costs. It requires less supervision and demonstrates pride in its work, making a greater impact on the customer. Motivated employees have greater concentration and are less likely to make mistakes, cause accidents or be involved in conflict. They are also likely to show greater loyalty to the company and have less absenteeism. An unmotivated workforce will be the opposite, being dissatisfied with its role in the work environment. This can negatively affect both the quality of the work as well as how efficiently employees carry out their jobs.

Conglomerate: A group of businesses joined in a single entity. Each of the businesses focuses on a different product or service area.

Net profit: The gross profit less all fixed overheads and other expenses. Logistics: The logical organisation of a cost-effective supply chain.

Motivation: Attracting a person to do something because he or she wants to do it.

Skills: Specific abilities and capabilities.



Tesco | Motivational theory in practice at Tesco



Tesco considers that the business depends on two groups of people – customers and staff. It appreciates that staff are unique and have diverse lifestyles outside of work. To this end Tesco supports staff with a work/life balance and offers reward through: • flexible working • free or reduced rate health benefits • discount gym membership • competitive salaries • staff discount • company share options. Tesco has discovered that it is important to create trust and respect. It has found that by valuing employees, providing realistic goals and an interesting environment for them to work in, it increases employees’ motivation. At Tesco a motivated member of staff ‘works in partnership with others to achieve individual and team objectives’. This means that he or she focuses on customers, treats people fairly and is determined and devoted to receiving feedback from others.

Tesco’s Employee Reward Programme has some similarity to Taylor’s theory. Its financial reward packages are one motivating factor. However, there are factors other than money which motivate people in both their personal and working lives. Tesco goes far beyond Taylor and gives more than just simple pay increases. It supports the varied lifestyles of individual employees through relevant and targeted benefits. Many non-financial factors can and do motivate employees to improve their output. One such factor may be the desire to serve people; others may be to improve personal skills or achieve promotion. A person may be motivated to be a professional footballer not because of the salary but because they love football.

Tesco rewards for hard work

Taylor’s motivational theory
In 1911 the engineer Frederick Taylor published one of the earliest motivational theories. According to Taylor’s...

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