How Effective Motivational Incentives Used Within the Organization to Increase Employee Performance

Case study: Tesco Plc.

By

DECLARATION

This research is my own work and does not represent the ideas of the university. This project belongs to me and only me.

ABSTRACT

The main aim of this research was to study the impact of motivational Incentives on employee performance at Tesco. The researcher studied the concept of motivational incentive in detail and came to meaningful conclusion. The research formulated the research questions after studying the literature in-depth. The main research questions addressed in this research were what are the different incentive programs at Tesco? How employees are motivated through incentives at Tesco? How incentives increase employee performance at Tesco? Apart from the research questions the researcher also designed two hypotheses to study the important variables motivation, employee performance and organizational performance. The researcher chose mixed research method to conduct the study. The researcher used the instrument of questionnaire to collect the data from respondents working at Tesco. The researcher discusses the concept of motivation, types of motivations, job satisfaction, reward system and kind of incentive plan used at Tesco. The researcher analyzed the collected data through Microsoft Excel and SPSS software. This research will fill out the gaps in the existing literature and open new horizon for future research.

ACKNOWLEDGEMENT

This research became possible only because of support from my research supervisor and my loved ones. Hence, I would like to say thanks for their support

TABLE OF CONTENTS

DECLARATIONII

ABSTRACTIII

ACKNOWLEDGEMENTIV

CHAPTER 1: INTRODUCTION1

Introduction1

Company Introduction1

Problem Statement2

Reward System and strategy2

Motivation and Incentives5

Significance of the Study6

Rationale of the Study7

Research Questions7

Hypothesis8

Structure of the thesis8

CHAPTER 2: LITERATURE REVIEW10

Introduction10

Understanding Motivation10

Motivational Theories12

Content Theories12

Process Theories15

Types of motivation17

Intrinsic Motivation and Extrinsic Motivation17

Monetary Rewards and Theory of Incentives in Economics19

Job Satisfaction22

Reward System23

Monetary-Based Reward Program24

Nonmonetary-Based Reward Program25

Total Rewards and Employee Attraction and Retention25

Impact of Total Rewards on Organizational Effectiveness27

Impact of Total Rewards on Employee Engagement28

Types of Incentive Plans30

Use Incentives Strategically34

Summary35

CHAPTER 3: METHODOLOGY36

Section I36

Section II40

Mixed Research40

Classification of research methods41

Multi-method studies41

Mixed method studies41

Steps in mixed methodology41

Instrument for data collection42

Purposeful Sampling42

Data Collection43

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION44

Survey Analysis44

Data Analysis Method44

Hypothesis testing59

CHAPTER 5: DISCUSSION60

Relationship between motivation, organizational culture, and its effect on business performance at Tesco Plc67

CHAPTER 6: CONCLUSION AND RECOMMENDATIONS69

Recommendations70

REFERENCES71

BIBLIOGRAPHY75

APPENDIX84

CHAPTER 1: INTRODUCTION

Introduction

Every organizations aims to reduce the employee turnover ratio and increase retention rates. Whenever any employee is employed, the organization bears a huge cost of training and development and when the employee leaves the organization, the cost incurred on the employee becomes an expense. The management strives to increase the retention rate so that their cost does not exceed. There are many strategies which are used by all over the world to retain employees. The research studies the impact of monetary and non monetary rewards on employee's turnover. The researcher will study as to how the incentives and rewards affect the motivation of the employees at Tesco Plc. The researcher will study the incentives plan at Tesco to gain an insight to the organizational culture of Tesco. It is human nature that when humans are rewarded with incentives, their motivation level increases and they perform ...