The applied motivation theories in tesco

1. The Applied Motivation Theories In TESCO Page 1
Course name: Organization Behavior
Lecturer: Dr. Arwa Al-Twal
Subject: Project about the applied motivation theories in TESCO.
Student: Tareq Daoudi – STD #:120036
Introduction
“Tesco began in 1919 with one man, Jack Cohen, a market stallholder selling groceries in
London. TESCO was formed out of a merger with T.E. Stock well from whom he purchased tea
for sale on the stall. The first store opened in 1929.
Since then, Tesco has expanded across the world. It now has over 2,200 stores including
hypermarkets and Tesco Express outlets to meet different customer needs. As a conglomerate
Tesco also offers alternative goods and services such as insurance, banking and online
shopping. With net profits of around £3.4 billion Tesco has become the largest British retailer
and one of the world’s leading retail outlets on three continents.
Tesco’s growth has resulted in a worldwide workforce of over 468,000 employees. To
support its growth, Tesco needs staff that are motivated, flexible and well-trained and who
recognize customer needs. In turn, Tesco’s employees are supported by the company in their
various roles and at different levels - from customer assistants in stores to department
managers; from warehouse employees to office and logistics staff. Tesco recognizes that
employee motivation is important for the continued growth of the company.”
Tesco’s Vision:
Tesco’s vision can be summarized in 5 main lines:
1- Wanted and needed around the world:
They mean that they want their business to be the first choice ever for the customers,
and also they want the business to be the first choice for the people who want to work,
and for share holders who’s want to invest.
2- A growing business, full of opportunities :

2. The Applied Motivation Theories In TESCO Page 2
They want their business to be full of opportunities for both customers and employees.
They want their business to offer something new every time.
3- Modern, Innovation and full of ideas:
They always focusing on satisfy the customer and also trying to innovating to make
customers live easier by extended the working hours and established the online website
for shopping.
4- Winners locally whilst applying our skills globally:
Based on the success what they made in UK, they standardize the skills to be applied in
the other cultures around the world such as Asia.
5- Inspiring, earning trust and loyalty from customers, our colleagues and communities:
They are looking to earn the trust, not just the respect. They want their business to be a
business that customers, employees and communities trust and are loyal to.
From the Tesco’s vision we can concludes that Tesco focusing not only for they services
and the quality of their products, they also focusing on their employees. We can
understand their focusing on their employees by using the word (Colleagues) instead of
the word employees, this word can be founded almost in all of their descriptions of their
organization. From using such a word we can understand that they are closer to work as
groups and the managerial levels inside the organization –somehow- is not a big deal.
Now we’ll go throw the motivation theories applied in Tesco.
1- Maslow’s Hierarchy of needs:
A. PhysicalBasic needs: Tesco prepare a good condition work place, give the
employees regular and fair monthly payments, provide good facilities such
as restaurants for employees, and also Tesco provide a private locker for each
employee to put hisher personal stuff.
B. Security needs: Tesco provide formal contracts of employment, health
insurance.
C. Social needs: Tesco enabled the team and group working at the different
levels inside the organization, and also enables store staff to work as a team. And
also Tesco gives discounts and special offers for its staff on theme parks, gym
membership.
D. Self-Esteem: Tesco praise for hard workers and also celebrate achievement
and emphasis self-respect and respect for others.

3. The Applied Motivation Theories In TESCO Page 3
E. Self-Fulfillment: Tesco offers a personal development plan that gives the
employee the opportunity to enhance hisher skills and talents to reach higher
levels.
2- Herzberg (the two factor theory):
Tesco paying attention to the hygiene factors and enabling the satisfiers, which can
be recognized by promote the employees, recognition and personal growth
opportunities as a motivation factors, fulfilling the security, social needs and also
give the employees the opportunity to be involved in the organization’s decision
making.
Tesco applying this theory also by making an annual survey called (View Point) to
Measure its Staff Satisfaction which gives the staff the opportunity to express their
views on almost every aspect of their job. So the results help Tesco to make sure if
it’s offering the right things to the employees to keep them motivated.
3- Adam’s Equity theory:
Tesco is applying this theory by applying a fair and equal rewards system, it can be
mentioned below:
1. Share our success:
a. Shares in success:
Tesco gives the employees whose complete a 1 year of service and at the end of
financial year shares in business.
b. Save as you earn:
Tesco give the employees after a 1 year of service a chance to save 50 £ every 4
weeks for 3-5 years, and the employees is free to choose either if they want to
redeemed as a tax free bonus, or it can be taken as a cash whenever they want.
2. Staff privilege card:
It is a staff loyalty card that gives 10% discount on most of Tesco’s products.

4. The Applied Motivation Theories In TESCO Page 4
3. Leisure Time:
Tesco gives discounts and special offers for its staff on theme parks, gym
membership.
Based on the above we noticed that Tesco are using one of the best rewards
systems which is the shares I business reward because of such a reward most of
Tesco’s employees have the sense of belonging, and it’s gives them a feeling that the
company cares about them. And also it is one of the best motivating system (the
shares scheme) because the employees know when they perform better that will
increase the Tesco’s profits then the employees will get higher dividends.
4- Bandura’s Self-Efficacy theory:
Tesco increase the self-efficacy of the employees by gives them the opportunity to
attend many training sessions and developments. Every employee in Tesco has an
access not just to the training they need to do for their job, but also to leadership
training to grow up within the company.
And also we can notice that Tesco opened recently (in 2011) the Tesco’s Asia
academy in South Korea. This academy graduate about 24,000 staff across Asia,
because of such facility we can be sure about the importance of self-efficacy
improvement for the employees in Tesco.
5- Self-Determination theory:
By giving Tesco’s employees the opportunity to train in many sectors and also in
many levels we can recognize the applying of the self-determination theory and also
the Maslow’s Hierarchy of needs theory by giving the employees the ability to
enhance their performance and skills in order to get a better occupation inside the
organization; that’s fulfillment the two theories at the same time. When we talk
about the self-determination theory the training will enhance the performance of
the employee and that always will energize himher to train more and perform
better to improve the skills what heshe have, and that will increase the intrinsic
reward for himher.
About the Maslow’s Hierarchy of needs theory when the employee train more and
increase hisher performance that will level up his occupation inside the
organization and that will track himher to level up hisher level in the Maslow’s
Hierarchy of needs by getting closer to the self-esteemlevel .

5. The Applied Motivation Theories In TESCO Page 5
Finally:
 Non-managerial employee hired in 1974 become the CEO of Tesco in 2011
Mr. Philip Clarke. It is a clear proof of the effective of the motivation system
inside Tesco.
 In Tesco’s vision, mission and about them essays, they use the word
COLLEAGUES instead of the word EMPLOYEES, that gives us an indication
that Tesco structured as a family or a team not as the traditional
organizations which is always clarify the levels and the positions inside the
company. So that gives the Tesco’s employees the feel that they are in their
owned place and that motivates them to perform the best they can.
 To be a global organization you must adopt the DIVERSITY, and Tesco
adopted the diversity and the proof is the success what they make in USA
and Asia.
 Tesco requires staff who can be flexible and who can adopt the changes in
order to deal with the multi cultures what the employees can face (The
Openness Employees).
 Tesco’s aimis to expand and diversify the requirement of people in the
business on right place at right time. And Tesco thinks that the key point of
business success is to train & develop their employees.
 Things can be learn from Tesco:
1- To success in a business the key factor for that is the employees, so Tesco
knew that and they motivates its employees effectively and that’s leads
Tesco to be one of the best organizations around the world.
2- To be a successful multinational organization you must know the
targeted cultures and communities to avoid any conflict or
misunderstanding between the organization and the community, that’s
can be done by adopt the diversity inside the organization and that will
expand the organization’s angle of view to the community to identify any
possibilities of problems can be faced by the organization.
References:
 www.essay.uk.com/free-business-essays/significance-of-motivation-in-tesco.php
 http://businesscasestudies.co.uk/tesco/motivational-theory-in-practice-at-
tesco/introduction.html#axzz2pLMq0ror
 www.ukessays.com/essays/business/what-incentives-do-tesco-use-to-keep-motivating-their-employees-
business-essay.php
 www.ukessays.com/essays/general-studies/human-resource-practices-at-tesco.php
 http://www.tescoplc.com/index.asp?pageid=6