1. The Times 100 Business Case Studies Edition 15
Motivational theory in practice at Tesco
Tesco

2. Introduction to Tesco Largest British retailer
Net profit c £3.4 billion
Leading retail outlet on
3 continents
Over 2,200 stores across world
Worldwide workforce of over 468,000 people
Continued growth relies on satisfied customers
Depends on motivated, flexible and well-trained staff

3. Motivation Motivated people achieve more
Less likely to be absent
Have greater loyalty
Take more pride in work
Many different factors can motivate
Financial
Pay, bonus,
Benefits - e.g. holidays, pension
Non-financial
Sense of achievement
Responsibility and empowerment
Opportunity for advancement
Challenge and enjoyment

4. Motivation theory – Frederick Taylor
One of earliest theories on motivation
Published 1911
People motivated only by money
Paid for what they produced – ‘piece rate’
Most often applied in industrial/manufacturing setting
Jobs broken down into small units of work
Repetitive – individual only did one element
Little opportunity for creativity
No incentive to develop

5. Motivation theory - Elton Mayo
1930s research at Western Electric Company, Hawthorne, USA
‘Hawthorne effect’
Motivation improved by paying attention to people
Giving degree of freedom to make choices
Supporting factors
Good teamwork
Non-repetitive work
Involving people in decision making

6. Motivation theory – Maslow
Maslow’s ‘Hierarchy of Needs’
Basic needs must be met first
Achieving one level motivates to achieve the next

7. Motivation theory – Herzberg
‘Two-factor’ theory
Satisfiers
Necessary for motivation
Hygiene factors
Create dissatisfaction if absent or inadequate
Cannot improve motivation alone

8. Tesco approach to motivation
Values employees
Provides realistic but challenging goals
Creates interesting work environment
Supports work/life balance
Competitive salaries
Flexible working
Offers lifestyle rewards
Discount gym membership
Health benefits
Staff discount

9. Tesco’s motivation activities
Tesco’s financial rewards package
Relevant and targeted financial and non-financial benefits
Effective communication
Intranet, newsletters, daily team meetings, 1-to-1 discussions
Regular staff satisfaction survey highlights views
Value Awards
Recognition of staff effort by staff themselves
Strategic career planning
Personal Development Plans – focus on the whole person
Training and learning opportunities
Appraisal with 360-degree feedback
Involvement in decision-making
Staff forums on pay rises