TESCO

What incentives does Tesco use to keep motivating their employees to achieve its strategic goals?

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ACKNOWLEDGEMENT

I would take this a great opportunity to thank my study supervisor, family and associates for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and last name here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not before been submitted for academic examination in the direction of any qualification. Furthermore, it comprises my own opinions and not necessarily those of the University.

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Abstract

This dissertation is based on the topic “What incentives does Tesco use to keep motivating their employees to achieve its strategic goals?” The first chapter provides an introduction to the topic followed by literature review. In literature review, motivation and the theories related to the topic are covered. The third chapter covers the methodology based on a case study approach. The fourth chapter presents the findings and the fifth chapter concludes the dissertation, providing implications and suggestions for future research.

Table of Contents

ABSTRACT1

CHAPTER 1 : INTRODUCTION3

Background of the Study4

Purpose of the Study5

Problem Statement5

Research Question6

Objectives6

Significance of the Study6

CHAPTER 2: LITERATURE REVIEW8

History Of Work Psychology Contributions To Compensation10

The Current State Of Affairs14

Compensation Strategy15

Government Reform and Compensation Strategy17

Individual Differences and Compensation Strategies18

Organisational Structure and Compensation Strategies20

Base Pay21

Job Evaluation22

Market Surveys23

Pay Structures24

Person-Based Pay26

Merit Pay28

Variable Pay29

Individual Incentives31

Ownership33

Benefits34

Flexible Benefit Plans34

Cash Balance Pension Plans35

Employer-Based Rehabilitation37

Organisational Effectiveness37

New Directions39

Practice43

Global Compensation45

Competing models of high involvement work systems50

Model 1: High involvement work system first-order factor model51

Model 2: high involvement work system second-order factor model52

Model 3: opportunity, motivation, and skill participation bundles model52

Model 4: technical and strategic HRM bundles model54

Model 5: skill enhancement, job design, and compensation bundles model55

Validating the models57

Job satisfaction57

Affective commitment58

Continuance commitment60

CHAPTER 3 : METHODOLOGY62

Case study research design62

What is a case study?62

How To Design And Conduct A Case Study63

How to Analyse The Results64

CHAPTER 4: FINDINGS AND ANALYSIS66

Growth Strategy at Tesco66

The decentralised system68

The centralised system68

The revision of the centralised distribution system70

Management Information74

Other areas of enterprise development75

Bet on house brands76

The system of Clubcard77

Diversification of supply of products and brands78

The internationalisation of business80

Evolution Performance82

The deployment of Internet Strategy83

System operation85

The choice of system87

Future prospects89

CHAPTER 5 : CONCLUSION93

Summary93

Limitations and future directions for research98

Conclusion103

REFERENCES105

Chapter 1: Introduction

Background of the Study

Motivation is generally defined as the processes that account for an individual's intensity, direction, and persistence of effort toward attaining a goal. The three core concepts when explaining motivation—intensity, direction, and persistence—refer to how hard an individual tries; where the effort is channelled, and how long the effort is maintained. Motivation explains why an individual behaves in certain ways; management can use this concept to guide the practice of encouraging or discouraging certain behaviours of employees and thus improve performance.

What motivates an individual? In general, researchers and managers identified two kinds of motivators: intrinsic and extrinsic. Intrinsic motivators refer to an individual's internal desire to do something, due to such things as interest, challenge, and personal satisfaction. Extrinsic motivators are those that come from outside the person, such as pay, bonuses, and other tangible ...