Company policy Interpersonal relations

After individuals begin to satisfy their need to belong, they generally want to be more than just a member of their group. They then feel the need for esteem both self-esteem and recognition from others. Most people have a need for a high evaluation of themselves that is firmly based in reality, recognition and respect from others. Satisfaction of these esteems produces feelings of self-confidence, prestige, power, and control.

Once an employee at Tesco has managed to maintain his or her job and has been assured of their job security, whilst becoming socially active they begin to feel that they are useful and have some effect on their environment. There are other occasions, though, when employees are unable to satisfy their need for esteem through constructive behaviour. When this need is dominant an individual may resort to disruptive or immature behaviour; employees may engage in work restriction or arguments with their co-workers or boss. This recognition is not always obtained through mature or adaptive behaviour.

It is sometimes garnered by disruptive and irresponsible actions. Therefore is this was to occur, Tesco's are obliged to carryout a form of disciplinary action against the employee to ensure that the employee doesn't cause any further damage to the working environment. However Tesco must ensure that they fairly discipline the employee in order to prevent any repercussions and to ensure that all employees can fulfil their need for esteem through constructive behaviour. Self-Actualisation Needs Once esteem needs begin to be adequately satisfied, the self-actualisation needs become more important.

Self-actualisation is the need to maximize one's potential, whatever it may be. A musician must play music, a poet must write, a general must win battles, a professor must teach. As Maslow expressed it, "What a man can be, he must be. " Thus, self-actualisation is the desire to become what one is capable of becoming. Individuals satisfy this need in different ways. The way self-actualisation is expressed can change over the life cycle. A self-actualised manager in Tesco's may eventually look for other areas in which to maximize potential as his or her managerial attributes change over time or as his or her horizons broaden.

Therefore an assistant manger at Tesco will feel that he or she obtain the qualities and experience to become a manager of that department in order to fulfil their desire. However this can also lead to the loss of employees for Tesco, for example if an employee was led to believe that he or she had the ability and potential to perform a job to the required standards, but was continuously overlooked the employee may feel that he or she must go elsewhere to fulfil their potential.

Therefore it is essential for Tesco's to maintain their workforce and allow employees to believe and fulfil their potential if they are to remain the UK's leading retailer. 3. 6bii Herzberg's two-factor theory In the 1960s, Herzberg identified two different sets of factors that influence job satisfaction. Herzberg stated that the first set of factors are those that induce job satisfaction, known as motivators. These factors are: Achievement in the job. Satisfaction deriving from the work itself. Being granted additional responsibility.

Recognition of good performance. The opportunity for advancement at work. Managers must focus upon these factors if they want to increase job satisfaction and motivate employees. The second set of factors that Herzberg identified are referred to as hygiene factors. These are the necessary conditions to prevent dissatisfaction but, in themselves, they are not sufficient to motivate employees. Hygiene factors include: Supervision and technical conditions An employee's salary Working conditions Company policy Interpersonal relations

Herzberg's theory suggests that an increased salary might only have a short-term effect upon employee efficiency and satisfaction. However, if Tesco's employees were given additional responsibility, such as being placed in charge of a specific project, or department this would have a long-term motivating effect. This form of job enlargement contributes to job enrichment. Another strategy used by Tesco's for long-term motivation is job rotation, which involves exchanging tasks between workers to provide greater variety.

For example a Tesco employee who operates a cash point may also be given the chance to work within the customer service kiosk as a form of job rotation to ensure that the employee does not become disheartened and de-motivated. This form of job rotation also ensures that Tesco employees do not become complacent and suffer from task repetition. The fundamental aim of job motivation via any strategy is to give employees greater control over the planning and execution of their work. Herzberg felt that this motivates employees as it means that their abilities and potential are utilised more fully.

This philosophy of utilising employee's abilities more fully also lies behind the idea of quality control circles. These are part of the total quality management (T. Q. M) approach. Tesco embraces the TQM principle by offering employees equality and responsibility and emphasising their involvement in the company. Tesco's circles are made up of employees who meet on a regular basis to discuss problems and propose their ideas. Encouraging employee input enables Tesco's to correct problems before they escalate and to consider ideas, which may be more cost and time effective.

It also provides a more satisfying working environment for Tesco's employees. The two-factor theory suggests that the prospect of receiving rewards (expectancy) will be more likely to motivate individuals than the possibility of, for example, improved working conditions, job security or salary improvements. Salary enhancements and other hygiene factors might be viewed in the short term as advantageous but Herzberg suggested that they have only a small effect on sustained motivation within the workplace. The theory behind salary enhancements has been strongly supported by Tesco's.

For example employees of the electronicall department at Tesco receive wage bonuses fixed at a certain percentage depending upon the price of the item sold. Thus proving that Herzberg's theory of improved salary will improve motivation, due to the fact that large organisations such as Tesco employ the system. The reason for this being that wage bonuses give employees a greater incentive to work harder. Tesco's also encourage and provide employees with the opportunity for personal advancement, recognition for one's contribution, enhanced responsibility for the outcome of an individual's or group's effort.

The reason behind this idea is that Tesco believe if employees have a greater incentive to work they will have greater motivation for what they aim to achieve. However the reward systems in many organisations serve to 'reward' undesirable behaviours while, simultaneously, ignoring or even punishing more positive ones. The feedback and reinforcement processes appear to be essential to achieve and sustain a motivated workforce, yet many company practices and policies, usually unknowingly, serve to depress employee motivation.

As a consequence, when individuals feel they are not being rewarded for a job well done they become dissatisfied and, potentially, under motivated. Therefore it is essential for Tesco's to ensure that they have a rewarding system which if fair and accurate rewarding employees or departments for aims or objectives which they have achieved. Consequently employees will become further motivated, however Tesco need to ensure that their rewarding system is continuously updated in order to prevent any failure of praising an employee for their work, which if undetected could lead to lower levels of motivation.

Generally, prior to Herzberg's work, job satisfaction and performance were thought to result largely, if not exclusively, from extrinsic stimulants, such as pay. He raised the very real vision of complexity and the likelihood that the factors contributing to workplace satisfaction, motivation and performance undoubtedly include intrinsic rewards. Herzberg's theory is supported World Wide, which includes Tesco's as they too use many ways to enhance motivation, but none more than pay related performance.

Tesco use pay related performance to enhance motivation for employees and departments in order to improve profitability and remain as the UK's leading retailer. 3. 6iii Taylor's principle of scientific management Taylor argued that efficiency, standardisation and discipline would result from a process of scientific management of work tasks. To be more precise, he suggested that: Each worker should conduct a minimum of movements, preferably involving just one set of actions. A scientific selection process should identify the correct person to perform the task.

There was 'one best way' of organising any set of tasks to be performed and it was management's responsibility to conduct exhaustive measurements in order to achieve this desired state. Jobs should be standardised and simplified. A clear distinction should be made between planning a job, a management role, and conducting the tasks of a worker's role. Frederick Taylor in his 1911 work, Principles of Scientific Management advanced the view that employees are basically motivated by money.

The job of management was to provide formal order and control in the working environment. Management did the planning and provided the support to show the workforce how best to do the job. Taylor felt that, with this clear line and staff organisational structure, productivity would increase because the employee would recognise that higher output would lead to higher pay. Tesco have clearly agreed with Frederick Taylor as they have adopted a similar approach where employees receive pay bonuses depending upon the level of output.

However Tesco's have not used pay bonuses in a simple manner, for example Tesco's do not only provide bonuses based upon commission but also provide bonuses for any aims or objectives which employees or departments have achieved. For example during the Christmas period the Slough Tesco branch set the store a total amount of income which they believe they can achieve trough extensive teamwork and hard work. If Tesco then achieve the total that they set each and every employee will receive a bonus depending upon the amount of hours they worked.

Obviously, this approach tends to address what are perceived to be lower level needs and, by its very nature, is far more relevant to labour intensive industries. Taylor's principles would support the use of these three pay systems. Performance-related pay (PRP) is a scheme, which links output and performance to pay. Employees receive bonuses, which are dependent upon their ability to reach specific targets. PRP rewards good performance, so it should motivate employees to work harder. Tesco's use performance-related pay in order to further motivate employees and aid the level of output achieved.

Tesco's use performance-related pay to benefit employees by providing individual departments including hierarchy employees such as departmental managers achievable targets which if obtained result in a bonus. Thus consequently providing employees with a greater incentive to succeed, resulting in higher levels of motivation within the workforce. However, some critics argue that factors beyond an employee's control, such as the breakdown of machinery, could affect their performance. Critics also argue that PRP categorises employees as good or bad performers and this can have a de-motivating effect upon those who fail to achieve their targets.

Therefore to ensure that Tesco do not encounter such problems or to overcome the problem, managers arrange a regular date in which they conduct a consultation with employees and ensure that the targets set are specific, measurable, achievable, realistic and timed. Thus ensuring that any targets that managers set for employees are achievable and realistic, thus preventing any employees becoming de-motivated due to a lack of achieved targets. Price rates provide employees with a variable income; payment is directly linked to output. Employees are encouraged to produce as much output as possible and maximise productivity.

The price rates system allows employers to identify good performers. Tesco use the price rate system in order to motivate employees to produce as much output as possible. For example an employee who replenishes stock receives bonuses via the amount of output achieved. Thus meaning that the more boxes emptied and stock placed upon the shelves the greater the bonus received by the employee. However, Tesco have recognised that by paying for quantity they are risking the level of quality, as standards can be sacrificed as employees strive to gain rewards.

Therefore Tesco have employed a system where an employee is restricted to certain zones within store. By doing so Tesco have discovered a system where they can perform an inspection upon the area in which the employee is working. For example an employee may be restricted to the fruit and vegetable section, thus allowing the department manager to not only assess the quantity but the quality of work performed by the employee. Commission-based pay is often used for sales staff and employees are paid a percentage of the value of the goods they sell.

Commission-based pay motivates employees because the level of their salary is determined by their own performance and ability to sell the organisations products. For example Tesco employees within the electronic department may receive a fixed percentage upon which they can earn depending upon the number of sales the employee managers to achieve. Therefore the commission-based pay acts as an incentive for employees to increase sales and improve the profitability of Tesco's, whilst improving the motivation of the workforce.