A well written, detailed assignment which meets the criteria for P3 - Unit 16, Human Resource Management in Business. BTEC Level 3 Extended Diploma in Business.
P3 - Outline how an organisation motivates its employees
(a) You have been asked by Miss Leeming to produce an investigatory report outlining
how an organisation motivates its employees and the reward systems used. Your
investigation should be based on an organisation of your choice. (P3)
Your reports should contain the following main sections:
Theories of motivation
Reward Systems
Theories of motivation in Tesco
Motivation is extremely important in business. Theories are useful because they can be used
to identify main factors that help motivate an individual. Subsequently, because of
motivated staff, the business is more likely to perform better. Tesco motivate their
employees in a number of ways as they help their employees fulfil particular needs such as
their basic needs and growth needs. Tesco offer their staff so much and this keeps them
working hard and dedicated to their work, meaning that the business operates more
successfully. To support its growth, Tesco needs staff that are motivated, flexible and well-
trained and who recognise customer needs. In turn, Tesco's employees are supported by the
company in their various roles and at different levels. Tesco recognises that employee
motivation is important for the continued growth of the company.
Below will look at different theories used to motivate employees within Tesco. There are
different theories which all have different ways in which employees are motivated.
Maslow's hierarchy of needs
Maslow’s theory of motivation is a hierarchy which possesses a set of motivation systems.
Maslow stated that people are motivated to achieve certain needs. When one need is
fulfilled, a person seeks to fulfil the next one and will
climb their way up the pyramid.
The hierarchy included five motivational needs which
can be see in the pyramid below. The five stage
model is divided into basic needs (the lower four)
and growth needs (the top of the pyramid). One
must satisfy lower level basic needs before
progressing on to meet higher level growth needs.
Once these needs have been satisfied, a person may
be able to reach the highest level called self-
actualisation.
Tesco use this model for their employees and motivate their employees in the following
ways;
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,Conor Cunningham
Physiological needs; this includes the place of work for Tesco’s employees. Tesco
offer pleasant working conditions, a good and steady rate of pay, flexible working
and staff facilities. This is the very basic requirements which Tesco will provide for its
employees. Once this need has been fulfilled, employees can progress further up the
hierarchy.
Safety needs; by offering contracts, Tesco employees are offered a sense of job
security. Pension schemes and sickness schemes are also offered as well as the
option to join a union which provides safety and security for the staff of Tesco. Once
staff feel their physiological needs and safety needs are met, they can then work
toward fulfilling their social needs.
Social needs; Tesco offer equal opportunities, a friendly environment, perks cards,
holidays and memberships for leisure actives such as gyms and fitness centres. Once
employees have fulfilled all needs up to and including social needs, they can look at
whether or not their esteem needs are being met.
Esteem needs; Tesco praise employees who work hard. The company has an
appraisal system in place which helps to recognise individual’s contribution and
importance and celebrate achievement. This is the last basic need to be met in the
hierarchy. Once is has been met, as well as the three basic needs before it,
employees can look to see if their growth needs are being met, which is the highest
part in the hierarchy.
Self actualisation needs; Tesco offer personal development plans to their staff. This
recognises employee’s skills and talents and puts them in the position to aim for
promotion or to improve their opportunities for growth. This pushes employees to
aim higher as they wish to progress further within the company. After all needs are
met and the employee progresses within the business, self actualisation needs are
now being fulfilled.
Being a staff member for Tesco is not all about just getting food pay but offering great
opportunities such as a whole package of other ways to help you make more of your money,
secure your future and look after your health. Tesco also offer a proportion of profits to
their employees, they support flexible working, staff loyalty and perks cards, training for
staff and staff cafes and restaurants. This helps to increase staff morale and increases
motivation within the company.
Elton Mayo; the Hawthorne Effect
Elton Mayo looked at the results of early motivation experiments and concluded that
psychological and social factors played a larger role in productivity than physical elements.
In the early 1930s, he suggested that motivation at work was promoted by such factors as:
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, Conor Cunningham
Greater communication. Tesco have excellent communications
with their employees and this comes through the use of the
Hawthorne Effect. Greater communications increase motivation
within Tesco as staff constantly know what they are doing.
Good teamwork. Tesco are a company which involves a lot of
team work and each store have different teams who will carry
out specific tasks. Working together as a team increases
motivation to carry out specific jobs successfully and this can
improve the work output of Tesco.
Showing interest in others. Tesco listen to what different
employees have to say and the views of others. This increases
staff motivation as they are seen as important within the company.
Involving others in decision making. Tescos managers make some decisions based
on the opinions of other employees within the company. This increases motivation
of staff as they feel they are being listened to and are involved in the organsiation.
Ensuring the wellbeing of others. Tesco offer sick-paid leave for employees. Support
is also offered to employees who are mentally unstable and this ensures that
employees are well looked after and this shows that the wellbeing of employees is
something Tesco feel is very important.
Ensuring work is interesting and non-repetitive. Tesco offer their employees
different tasks and jobs to carry out which means employee’s aren’t bored. This helps
increase motivation within Tesco as employees are genuinely interested in the variety
of work they carry out.
The work of Elton Mayo is famously known as the 'Hawthorne effect'. It was a series of
studies on the productivity of workers. Elton carried out experiments, introduced breaks in
between the work performance and also introduced refreshments during the pauses. On the
basis of this he drew the conclusions that motivation was a very complicated subject. It was
not only about pay, but work conditions as well as including psychological and social factors
too. The Hawthorne Effect, as it applies to the workplace, can be summarized as "Employees
are more productive because the employees know they are being studied." Tesco are a
company known for the excellent working conditions for their staff and this contributes to
the successfulness of the business as employees are happy and motivated in their work.
The main conclusions drawn were:
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