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What incentives do Tesco use to keep motivating their employees

Paper Type: Free Essay Subject: Business
Wordcount: 1563 words Published: 1st Jan 2015

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Motivation is an effective way to generate enthusiasm within the working environment to reach the desired output. In today’s market where different companies with different products are available, which increase high competition. In such circumstances it is difficult to become the marketing leader as well as retain the position in the competitive market. Tesco is number one PLC in Britain and Tesco retains this position from so many years. My topic is ‘What incentives do Tesco use to keep motivating their employees to achieve its strategic goals’. It’s all on the motivation of employees throughout Tesco. There are so many different ways which help company to stay in top position in the market. One of the important factors is motivation of employees or good use of human resources. To make good result from human resources or employee it is important how you treat them, the first or important part to make good use of employees or take good work from them is to motivate the employee.

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Tesco is the UK leading retailer. Tesco is one of the top three retailers in the world. It operates over 3,700 store globally and employing 440,000 people. Tesco operates in 13 countries. The first Tesco store was opened in 1929. Tesco adopted all the theories given below to motivate its employee. Tesco use different ways to motivate its employee some of them are reward, training and development, Personal development which shows employees are able to develop and grow, Staff housing and voluntary benefits, Christmas benefits, Employee Share Scheme plans, timely communication, hygiene factors and by enabling satisfiers and so on.

Research for motivation

Rensis Likert (n.k) said ‘motivation is the core of management’. In each and every organisation manager has the responsibility to co-ordinate and motivate its subordinates, how much skills does a manager has, is calculated by the way how he manage and motivates its employees to reach the organisation strategic goals. What are the ways to motivate the employees, how to take maximum effort from employee and how make them interested towards work, how they motivate, these all are the question for research for which we are going to discuss through following five major approaches that show the way to our understanding of motivation are David McClelland’s (May 20 1917 – March 1998 ), Frederick Winslow Taylor (1856 – 1915), Elton Mayo (1880 – 1949), Frederick Herzberg (1923- 2000), Abraham Maslow (1908 – 1970)

Frederick Winslow Taylor theory motivation through pay

In 1917, Taylor published “The Principles of Scientific Management.” In this Taylor proposed that by optimizing and simplifying jobs, productivity would increase and he gave idea that through pay workers are motivated. He said that if we want to motivate worker it happen through money. He said pay should be set according to the number of work done by the workers in a day. As much worker is productive he gets money according to that so the difference in money of different workers motivated all the workers to do more work in order to earn more money. Taylor, Frederick Winslow. (1917) The Principles of Scientific Management. New York: Harper & Brothers.

Elton Mayo theory motivation through social needs

In 1933 Elton Mayo published his book “The Human Problems of an Industrialized Civilization.” According to Mayo money is not everything to motivate employee. He said working condition; atmosphere is important part to motivate. According to Mayo workers are motivated by following

Working in a group or as team

Greater management participation

Better communication

Frederick Herzberg theory factor of motivation

Frederick Herzberg published his theory in 1959 in a book entitled ‘The Motivation to Work’ and put presumptuous a two factor content theory which is often referred to as a two need system. In this theory he define any workers can motivated by analysing their need and desire. The two type of motivation he defines are


The hygiene factor is dissatisfaction factor because if it not maintain then it include dissatisfaction or unhappiness within the workers. The hygiene factor includes safety of workers, company policies, salary, and working condition if it all there then workers motivated.


The motivator factor lead to satisfaction as it includes responsibility, growth, achievement, appreciation. These entire factors motivate employee.

Abraham Maslow theories five level of human need for motivation

Abraham Maslow book Motivation and Personality, published in 1954. He defines five level of human need which automatically motivate employee. They are as follows

Biological and physiological needs

Basic life need like food, drinks etc.

Safety needs

Protection, security, law,

Belongingness and love needs

Family, relationship


Personal growth

Esteem needs

Achievement, responsibility, reputation

McClelland’s theory on motivation

According to David McClelland’s he describe need of employee by which they can motivate and any organisation reach its strategic goal by motivating employees. He described three types of motivation or need the analysis in order to motivate the employees. McClelland, D. (1961) the Achieving Society

Need of achievement (n-ach)

Need of affiliation (n-affil)

Need of power (n-power)

Need of Achievement

These people are Achievement motivated that means they are motivated by their achievement and like to take challenge and try to complete goal with full enthusiasm in order to get personal satisfaction which they obtain through praise or appreciation. These people like to take responsibility, set their goals and achieve them that make them happy and satisfy.

Need of Affiliation

These people like to work in a team and they motivated through friendly interaction or affiliation. They love to interact with peoples.

Need of power

These people are motivated through power and authority. They want to make their own ideas and work on it and direct others according them.

All these research theories show different method to motivate employees, they all are different but their motive is same to each other as they all shows how to motivate employees and help industries and business to fulfil their strategic goal by give way to motivate employee and they realise employer that employee or worker should get proper respect and value. The above mention research theories shows that how much motivation is important and the ways they explain to motivate worker in order to get maximum output and how make them interested towards work, how they motivate.

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Case Study

Tesco as we mention above is no. one PLC in Britain and operates its store internationally. Tesco has 440,000 employees all over. There are so many contributions, strategy, planning, and human resources, behind the Tesco success. Tesco always give attention towards its employee and maintain the human resources and take desire output from workers, which help Tesco a lot to maintain its position. Tesco in different phase handle so many different problems related to employees and adopted motivation theories from the researchers in order to motivate its employee. Tesco adopted all above given theories in order to motivate their employee and it get success. Tesco give so many benefits, rewards to its employee to motivate them and its shows through Tesco success story because without human support or employee support no organisation reach the place where Tesco is today. But recently an article is printed by Louisa Peacock editor on Personnel today, i.e. Tesco is faced with a “real problem” in motivating its young staff, the supermarket giant’s head of resourcing has told Personnel Today.

Lorna Bryson, who supervise the company’s admitted that employee age between 17 and 24 are least motivated. She said these new generation need more motivation through manager. “We have got a real problem with [motivating] our young people,” she said. “We have got to teach our managers in how to manage Generation Y, as they are high-maintenance and needy. We need to hand-hold them, as they absolutely want to know where their career is going.”

Nearly 20,000 Tesco employees are between, 17-24. Lorna Bryson said that in order to fulfil the need of younger employee they started A-level programme, which help to provide valuable career path for youngster.

So this case study shows us that the company Tesco which is prove to be very good motivator from last decade now has risen some problem related to motivation as the generation is changing the need and the desire of the young employee is changing, so according to their need for career path for youngster Tesco started A- level programme in order to motivate the employee. Now we can say the need and desire of motivation change according to the generation it never be same always.


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