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The motivation of employees plays a bigger role in organisational performance. For an organisation to be considered high-performing, it needs to meet its goals. As per Mason and WRLC (2020), maximising profits, sales, innovation, and market share are the objectives of organisational performance. Employees are important for any organisation’s growth, as the capability of employees to complete the tasks efficiently defines its success. Therefore, a positive employee attitude needs to be valued as it is vital for a thriving and functional organisation. Also, a high-performing organisation needs to ensure the proper management of a multitude of things. The performance of the organisational plant, equipment, systems, financial resources, and employees is crucial to reach strategic objectives.
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Setting clear priorities is the first step towards achieving outstanding results. The organisations must focus on building a positive environment for their employees. It is because their success is dependent on the motivation level of their employees. The lower the motivation, the lower the productivity. That is why the achievements and the successful completion of complex tasks of employees must be rewarded and acknowledged. It gives them the motivation to keep doing the good work, and it is reflected in their behaviour. They act appropriately and intelligently. It all leads to the growth of the organisation. Factors like productivity, customer satisfaction, profitability, service standards, quality of work life, and employee turnover determine organisational performance.
Employee motivation is defined by the willingness to work, commitment, enthusiasm, and creativity brought by the employees to their organisation. As highlighted by Lasisi (2018), motivation is the spark that drives employees to perform in a manner that can help achieve organisational goals. Employee motivation is required in an organisation, regardless of the fact whether the economy is going up or facing challenges. It should be among the priorities of the management. There are different approaches taken by large and small businesses in order to motivate employees. It can be done through either intrinsic or extrinsic methods.
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It is easy for large businesses to provide extrinsic rewards to their employees. Whereas small businesses, sometimes, are not capable of rewarding employees through extrinsic methods. However, small businesses can sustain an ideal office environment. For them, it is quite easy to get feedback from employees in a quick manner. Asking for feedback makes the employee feel valued and free to share their opinion. The performance of employees surges when they get to work in a free and open work environment. At this point, the creativity of the employees is unleashed, resulting in innovative solutions and greater productivity. When the employees work diligently, the business owners feel less burdened. Inherently, good work performance is followed by a feeling of accomplishment.
Likewise, the rewards are also crucial. As mentioned by Pohjolainen (2021), material rewards are necessary for improving the motivation levels of employees. Developing policies that enhance employee performance is the responsibility of organisations. They must know what are the key functions of motivation. Other than the incentive policy, organisations can also apply different motivational theories. To establish them, they need to have a deep understanding of the employees’ traits. Basically, motivation is the internal feeling that drives employees to willingly perform their tasks.
Every individual is different, and they have different preferences for feeling motivated. Some people embrace challenges and are fueled by overcoming them. While others prefer autonomy in their work. They feel motivated when there are no restrictions imposed on them. Eventually, every individual is motivated by seeing the growth opportunities. Hence, organisations must offer lucrative growth opportunities for their employees. For instance, TESCO rewards hard work through pay and organises seminars and training sessions to enhance the skills of employees. According to Ratemo (2018), to motivate employees, the job itself should provide satisfaction. Employees get motivated by the sufficient scope for growth, challenges, variety, and opportunities to apply and learn new skills.
The feeling of competence is the result of enough motivation. Increased compensation, getting opportunities to get promoted, and advancing their career are some of the major sources of motivation. Other than this, discipline also has a slight role to play. Employees need to work within the established rules and guidelines. Along the same lines, it can be noticed how people generally dislike criticism. Therefore, they work in a manner that ensures they do not receive any negative feedback. Moreover, the fear of financial penalties drives the employees to perform. Thus, it can be said that the motivation can be derived from various sources.
There are two types of employee motivation: Intrinsic and Extrinsic motivation. According to Barrett et al. (2020), organisations need to recognise that employees are individuals with different characteristics. By acknowledging various types of motivation, the organisations can motivate their employees more effectively. For that, they need to categorise different employees according to their character traits and motivate them accordingly. This way, the satisfaction of employees and their engagement can be increased. However, please note that these two types of motivation - intrinsic and extrinsic elicit different responses from the employees.
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The internal factors within the organisation are responsible for steering employee motivation. For instance, factors like appraisals, job security, teamwork, training, and employee satisfaction play a crucial role in influencing employees' performance. By looking at the example of TESCO, the importance of motivated employees can be easily understood. TESCO offered support to their employees in different ways, and this helped in widening the growth of the organisation. It took measures which supported the work-life balance. Some of the key factors incorporated by TESCO to motivate its employees are rewards, training, and appraisals. The motivated employees achieve the desired goals ahead of the deadlines. This results in the growth of the organisation, which enables it to support the customers’ needs.
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Motivated employees are more attentive and produce quality work with almost no mistakes. The quality work leads to the organisation’s growth and more career opportunities. For example, TESCO’s growth resulted in an increased workforce globally. That is why it has established itself as the leading grocery retailer. It is operating well with the support of its motivated employees.
Intrinsic motivation arises from within. The urge to perform well comes from within the individual without leaning on any external rewards. Employees are more likely to perform better when organisations implement strategies to support the intrinsic method. As per Kadir (2019), employees act according to their belief systems. They derive motivation from these deep-rooted beliefs. Also, intrinsically motivated employees exhibit qualities such as self-acceptance, respect, curiosity and an urge or desire to succeed. Praise and constructive feedback can further motivate these intrinsically motivated employees. To instil intrinsic motivation among employees, intentional positive and meaningful feedback given by supervisors and managers helps a lot. Similarly, it's important to make sure that the employees clearly understand their expectations.
Look at the example of TESCO. It encouraged its employees to improve their skills and perform better (academia.edu,2022). It also motivated their employees to properly understand the importance of the task. For this, it used intrinsic motivation methods. TESCO provided employees with positive feedback as well as giving them autonomy in their work.
Extrinsic motivation comes from external factors. An individual gets motivated when there are rewards and recognition for the work they do. This motivation stems from external influences, which is why it is called extrinsic motivation. While intrinsic motivation works for some people, it may not resonate with others. For such employees, extrinsic motivation is important. As noted by Weinstein (2018), employees are more likely to learn new skills if they get rewarded with extrinsic rewards. Incentives, bonuses, perks, awards, etc., motivate individuals towards growth, and they promote willingness to perform in employees. The higher the incentives, the higher the energy to perform in extrinsically motivated employees. This urge to perform better reflects in their ability to achieve goals set by the organisation.
For instance, TESCO provided its employees with impressive external rewards. Performance appraisals played a major role in employees feeling satisfied and motivated. They worked together towards achieving a collective aim of widening the growth of TESCO. This resulted in increased profits and reinforced the credibility of the company. All this was possible because TESCO supported its employees with rewards and incentives.
TESCO counts on motivated staff to foster its continuous growth. For that, it ensures staff are well-equipped with proper training and adaptable to understand the customer demands. TESCO provides comprehensive support at all levels to its employees, such as department managers, logistics staff, and warehouse workers. It is because TESCO understands the significance of motivated employees in performing better. As stated by Weber and Badenhorst (2018), TESCO motivates its employees by giving them regular performance appraisals, incentives and training.
TESCO also recognise and appreciates the high performance of the employees and their achievements. Doing this ensures the employees’ commitment towards the organisation. For such continuous encouragement and motivation, TESCO employs the following models.
As stated by Abraham Maslow, humans are motivated by five basic types of needs. He used a pyramid called the “hierarchy of needs” to explain these needs. Food and shelter, the most basic needs, are placed at the bottom. Then comes the next level, which is safety and security. As noted by Matacena (2019), TESCO provided security to its employees by offering pension and sickness plans. To make employees feel more connected to the company, it gave them the option to join a union. Moreover, TESCO took care of the health and safety of the employees.
The next level is of the social needs, which is at the 3rd position from the bottom. TESCO helped employees feel like they belonged here by encouraging teamwork. It also supported them by giving them a positive work environment. At the 4th level comes self-esteem. TESCO prioritised the employees' self-esteem by treating them with respect and praising them for their hard work. This helped them build their confidence and self-worth.
Now, self-fulfilment comes at the top of Maslow’s pyramid. It focuses on utilising the full potential of the employees. TESCO supported its employees by recognising their talent, making personal development plans, and providing promotion opportunities. Also, it ensured the growth of the company by developing skilled leaders through its fast-track management program.
Herzberg’s model is a two-factor theory of motivation. Those two factors are : satisfiers and hygiene factors. Satisfiers incorporate elements like achievement, recognition, promotion, responsibility, and career growth opportunities. Whereas the hygiene factors include working conditions, job security, relationship with co-workers, company policies, supervision, salary and personal life.
It was noted by Shi (2018) that TESCO empowered its staff and managers by supporting their goals and needs. So that they take an interest in their work. The company provided a supportive work environment and offered competitive salaries. This supportive environment was made possible through the helpful teammates, one of the main hygiene factors. Hence, the workplace becomes more productive and comfortable when hygiene factors are in place. That is why, to bring out the best in their employees, TESCO provided both satisfiers and hygiene factors.
Lack of motivation in employees due to all the stress at work can negatively affect the organisation. For instance, if a diligent employee leaves the company feeling uninspired, then it is the company’s loss. It may take a long time to find a suitable replacement who matches the performance and satisfaction level (ism.edu, 2022). To avoid such a scenario, companies must encourage their workers and keep them motivated. This will help build loyalty in employees, and they will work for years with the company.
In the case of TESCO, it engages employees and sustains their interests by giving them new and challenging tasks. These efforts make the employees feel motivated, and they remain productive. Creative tasks help reduce boredom as they make employees feel energised. Challenging tasks provide the opportunity to expand learning and build a sense of purpose among the employees within the organisation.
There are some key aspects of the strategies used by the companies to keep their employees motivated, including:
The atmosphere of the workplace is a major factor in determining a company’s productivity. As stated by Pohjolainen (2021), the overall setup of the workplace can either have a strong positive or negative effect. This impacts the employee's feelings, behaviour or their engagement with the work.
To boost motivation among employees, regular communication is necessary between employees and management. This is the most simple and effective way to make employees feel respected and their opinions valued. The open and friendly conversations give the employees confidence and build trust in them for the management.
Positive feedback from managers is the main source of employees feeling motivated to work. But as Jackson (2018) highlights, overly positive feedback can make employees deter from being serious about their work. So, the feedback should be balanced and constructive, including both positive and negative points. This helps employees identify the areas to work on and enhance their performance.
Supporting the well-being and working to inspire the employees are important things for any organisation. This results in individuals with a positive and loyal mindset working to improve themselves. They will strive to serve the company with their best efforts.
Organisational performance is the capability of the organisation to achieve its targets, goals and improve the results. In the dynamic world of today, with ever-changing and highly competitive markets, adaptability is a key factor to thrive. To ensure the company’s success, it is the responsibility of the management and leadership to make employees work effectively. So, the collective and sincere efforts of employees guided by strong leadership lead to the company’s growth.
For instance, TESCO is one of the top retail companies that has used strong leadership strategies to grow the company. As mentioned by Elberg and Noton (2019), the journey of TESCO started from London in 1919, and then it began selling products in 1924. From that time to the current period, TESCO has grown into a global company. It ranks second in the world as per revenue generated. In 2019, the UK turnover of TESCO reached nearly $6000 every minute. But there was a time when the company faced financial difficulties in 2010, and it negatively impacted shareholder value.
The main aim of this performance management is to help the company succeed in the long run by increasing its productivity, quality and efficiency of resources. As per Pohjolainen (2021), TESCO has the aim to remain a strong competitor in the retail industry. It plans to achieve this by offering high-quality products and services at affordable prices, lower than its competitors.
This statistical graph highlights the company’s steady growth and success each year by showing the average number of individual employees at TESCO in the UK. As noted by Schamp(2019), TESCO has enhanced its performance by cutting costs, taking innovative measures, using performance measurement tools and having open communication with stakeholders. Not just this, the company takes feedback from both the customers and employees. It also takes careful measures to manage its balance sheet, monitors financial performance and takes well-calculated risks. All these efforts drive the growth of the organisation and help in enhancing employees' performance.
The culture of an organisation is the foundation for everything. Every other thing is dependent on or built on it. For the organisation to remain sustainable for a long time, it needs a positive and healthy environment and culture. Also, strong and balanced leadership is important to ensure organisational performance, especially in times of disruption. However, many leaders who think about the company’s welfare prioritise protecting assets during those times of disruption. They do not focus on organisational culture.
According to the research by Dos Santos (2020), the most inspiring and effective leaders are those who can take strong measures for the future. They do not remain in the safe zone and provide support to the initiatives that focus on enriching the company’s culture. Hence, many industry leaders have been treating the challenges as an opportunity to develop a long-term plan for the company that ensures its growth. Also, values and rituals that determine the culture of the company are being given importance. It is because these strong values play a key role in organisational performance. These shared values help the leaders to communicate and guide employees and steer the company in the right direction.
Changing an organisation’s regressive culture into a more inclusive and productive culture demands strong leadership. The leaders must guide their teams in a way that values the personal growth of employees, along with boosting the overall performance of the company. It is more important in the sense that leaders see the cultural transformation as a way to achieve that. As stated by Lasisis (2018), the two main components of a company’s success are employee and organisational performance.
The impact of successfully managing to achieve company goals while seeing the employees grow individually is lasting and powerful. It builds a happy and strong team that thrives professionally due to the company’s positive culture. This positive energy is also felt by the customers. Leaders who take time to engage in strengthening the company culture reap rich rewards. Even in the times of disruption, their company shows stability. Therefore, focusing on implementing key performance drivers like positive organisational culture enables the company to move toward a bright future.
Having motivation to work is the main reason behind employees working diligently and having a positive attitude towards their job. This can be ensured by implementing strategies that make employees stay motivated and committed to the company. For example, TESCO believes in employing such strategies that make employees remain loyal, happy and motivated to work. As it had resulted in better performance of the company, TESCO made it a priority to ensure employees stay motivated.
There are various motivation methods which have been developed by business experts. Depending on the needs of the organisation, supervisors in different companies use the preferred motivation methods. It is one of the main tasks of any company’s leadership, as per the words of Mason and WRLC (2020). It is so because when employees feel motivated and inspired, it reflects through the increased profits, among many other things. The company’s service quality improves, and targets are met.
That is why, to build confidence in employees and to inculcate loyalty in them, different tools and techniques are being used by the supervisors. For instance, TESCO gives attractive pay, along with yearly and occasional bonuses based on the employees’ performance. Not just this, it also makes sure that the basic safety needs are met, so that employees feel safe. Moreover, it also takes care of the psychological needs of employees by supporting work-life balance. TESCO ensures that employees get to work in a healthy work environment that provides important things like medical facilities. Additionally, it treats every employee fairly and makes them permanent after a certain period of service.
In general, one of the widely used mechanisms to make employees motivated is to give them rewards and commissions for their good performance. Doing this brings a lot of advantages, some of them are:
The efficiency of employees increases as they work better. This leads to higher productivity. Motivated employees are able to build long-term relationships with the company and a strong relationship with loyal customers. They take part in decision-making discussions. Their inputs and suggestions make them a valuable asset for their company.
As noticed generally, motivated employees are very loyal and add value to the company, and generate respect for their roles. Their dedicated efforts help in achieving the goals of the company and help it to grow. As stated by Balthu and Clegg (2021), the work process becomes more efficient when employees put in their best efforts. This results in raising the company’s performance and overall service standard. As time passes, the motivated employees begin to take more responsibility without compromising the quality of their work. According to Kadir (2019), if a company applies motivational theories, it can enhance both these things: productivity and product quality. Reciprocally, companies can offer incentives and proper recognition of their efforts.
Employee motivation plays a major role in organisational performance. By rewarding the good performance of the employees and recognising them, companies can keep employees motivated. Motivation can be classified under two main types - intrinsic motivation and extrinsic motivation. Intrinsic motivation comes from inside, guided by beliefs and values, whereas external rewards drive extrinsic motivation. In addition, the culture of the company is the foundation on which everything is built. For long-term sustainability, having a motivated workforce and a thriving work culture is significant. Moreover, the company can reward their staff for their good performance to encourage and recognise their efforts. Hence, the company’s growth is largely dependent on the ability of its employees to work productively. For that to happen, employee motivation should be focused on, which ultimately leads to the long-term success of the company.
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