Case Study of Tesco Assignment Sample

Introduction

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This report is based on a case of Tesco which is about opening new discount stores of the company named as ‘Jack’. The company is opening these stores to compete against Lidl and Aldi. To motivate the employees to work in new Jack stores of Tesco, different motivational theories which can be used will be examined under this report.

Motivational Theories

Motivation can be defined as the set of forces that make the people i.e., the employees of Tesco work and behave in a certain manner. It is the internal drive of employees to achieve their work targets (Rheinberg and Engeser, 2018). In regards to working in the new 'Jack' stores of the company, motivation can be defined as what makes the employees want to work there. One of the major motivational factors which can motivate the employees to work in ‘Jack’ stores in this case is the new learning opportunities.

There are various motivational theories that the human resource of Tesco can use to motivate the employees for working in 'Jack' stores. Such motivational theories include:

1. Maslow’s Hierarchy of Needs

This is one of the basic and most prominent theories of motivation which the HR team of Tesco can use in this case. The theory has given by Abraham Maslow and it defines a pyramid of employee needs which should be considered by Tesco to motivate their employees for working in 'Jack' stores (Hopper 2020). This theory assumes that the lowest level of need i.e., psychological is the basic one to keep employees of Tesco motivated.

Figure 1: Maslow's Motivation Theory

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Maslow's theory assumes that no need from above-specified needs can ever be fulfilled fully, it is because as one need is substantially fulfilled by the management, the next need of employees becomes dominant. Maslow's theory assumes that the employees always want more and more which depends on the current things they have or their current level of satisfaction.

In this case of Tesco where the company needs to motivate the employees to work in ‘Jack stores’, they have to fulfill one need specified in the hierarchy of this theory, and then immediately shift to the next need. These needs in the case of Tesco can be satisfied with monetary and non-monetary rewards. Maslow's theory assumes that some rewards can satisfy different needs of employees altogether (Stewart, Nodoushani and Stumpf, 2018). For example, giving a hike in salary to employees for working in ‘Jack’ stores will satisfy their safety needs, self-esteem, and self-actualization needs as well which will lead to motivate them to work in these stores.

The examples (in the context of this case) of every need demonstrated above in the need of pyramid of Maslow’s theory are as follows:

Needs of Tesco Employees	Examples (in the context of this case)
Physiological Need	Basic and fair remuneration for working in ‘Jack’ stores
Safety and Security Need	Job security and a healthy work environment in ‘Jack’ stores
Social Need	A healthy relationship with employers and extra benefits for working in ‘Jack’ stores
Ego/Esteem Need	Consistent increment and promotion to employees who would work in ‘Jack’ stores of Tesco
Self-Actualization Need	Individual growth and development of employees

 

Table 1: Implementation of Maslow's Theory in Tesco's case

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Advantages of using this theory in Tesco’s case

• It will help to convince the employees and enhance their motivation level to work in 'Jack' stores of Tesco
• One reward can satisfy various needs together which will help the HR team to save time and cost
• It will help Tesco to compete with Aldi and Lidl more effectively

Disadvantages of using this theory in Tesco’s case

• The model may not work on all employees of Tesco as needs and perception of everyone is different
• It will be difficult for Tesco to satisfy all the needs to motivate the employees
• It will be complex to identify the current need and satisfaction level of employees on an individual level

2. Herzberg’s Theory of Motivation

This theory of motivation was given by Fredrick Herzberg. The theory assumes that some factors result in employee satisfaction, and some other factors lead to dissatisfaction among them. In the context of Tesco's 'Jack' stores' case, the theory can be applied to motivate the employees to work in these new stores.

Figure 2: Herzberg's Motivational Theory

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In the case of Tesco, hygiene factors are the ones that Tesco must consider for existing motivation levels within the organization. According to the theory, the hygiene factors will not always positively motivate Tesco employees, but the absence of these factors will lead to dissatisfaction among employees (Kotni and Karumuri, 2018). This is why considering hygiene factors is important. These factors are such maintenance factors that are needed for the fulfillment of the physiological needs (described in Maslow's theory) of employees in Tesco. The motivational factors, in this case, will always help to generate positive motivation among employees to work in 'Jack' stores (Bevins 2018). The motivational factors will help Tesco to satisfy the psychological needs of employees.

The examples of both hygiene and motivational factors in the context of the case of Tesco are as follows:

Table 2: Application of Herzberg's theory in case of Tesco

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Hygiene Factors	·       Higher pay to the employees who will work in ‘Jack’ stores ·       Fair and flexible policies for the employees working in the new stores ·       Fringe benefits and job security ·       Safe working conditions ·       Retained status of the employees working in ‘Jack’ stores within the organization
Motivational Factors	·       Fair recognition of work ·       More opportunities for growth and promotion within Tesco ·       Meaningful work will help to develop and refine the skills

 

Advantages of using this theory in Tesco’s case

• It involves fewer complexities, and will allow the HR team to easily motivate the employees
• Hygiene factors will ensure the presence of motivation always among the employees

Disadvantages of using this theory in Tesco’s case

• Relying on just these factors may not successfully level up the motivation level of Tesco employees
• The application of theory may generate biases

Conclusion

This report concludes two theories i.e., Maslow’s and Herzberg’s theory of motivation which can be effectively used in the case of Tesco to motivate the employees of the organization for working in ‘Jack’ stores.