Chapter 1: Introduction

1.1 Introduction
In recent decades, organisations faces issues in relation to retain employees and keeping
motivated to meet the organisational goal. Due to the cultural diversity, and evolving ICT and
Internet, increasing awareness regarding the products and business operation among
customers has concerning the organisations to bring competitiveness. Thus, this research will
shed light on examining the “Effectiveness of rewards system in motivation and satisfaction
of employees” from the perspective of Tesco Supermarket. In this context, the study will
frame some objectives to discuss the effectiveness of different reward system and also
generate recommendations to improve employees’ performance with the support of this
motivational factor in the organisation.
1.2 Background of the Study
Achieving long-term sustainable competitive edge, the organisations need to be focused on
talent retention and motivational factors to accelerate high-quality performance which
depicted as crucial challenge in modern business environment nowadays. Increasing
productivity and profitability of the company, reward system has been addressed as most
effective that helps in enhancing employee motivation and productivity. Depending on the
needs and expectations of employees, the implementation of reward system can be beneficial
for Tesco Supermarket (Ali and Anwar, 2021). However, it has seen that the global retail
market went through a drastic transformation in last few years and plays a major role in
global economic level. According to statista report, $23.74 trillion retail sale was occurred in
2020 globally, which can be expected to increase around 31.27 trillion within 2025
dynastically.
 Figure 1.1: Global retail sales
(Source: Statista.com, 2023)

In the UK, retail sector contributes over 5% of GDP, in this case, Tesco has been identified as
a gigantic Supermarket and has achieved 3rd rank in global retail position. From company
website, it has been observed that the company operates global marketplaces with more than
354744 employees in 2022 (Tesco.com, 2023). Therefore, it is important for the company to
focus on employee retention and motivation to employ effective business practices and
achieve competitiveness in this highly competitive world.
1.3 Research Aims and Objectives
The research aims “to examine the effectiveness of the rewards system in Tesco
supermarket” for which the researcher will discuss the research elements based on framing
some objectives. Those are:

● “To examine the effectiveness of financial rewards in meeting employee’s extrinsic

motivation needs”
● “To examine the effectiveness of the non-financial rewards in meeting employee’s
intrinsic motivation needs”
 ● “To identify gaps between employee expectations and the current rewards system
(in terms of both financial rewards/extrinsic motivation and non-financial
rewards/intrinsic motivation)”
● “To make recommendations about how to improve the effectiveness of the rewards
system (in terms of both financial rewards/extrinsic motivation and non-financial
rewards/intrinsic motivation)”

1.4 Research Questions

Meeting these objectives, the researcher will need some questions to evaluate the
effectiveness of reward system, therefore, they will focus on the below-mentioned questions.

● “What are the effectiveness of financial rewards in meeting employee’s extrinsic

motivation needs?”
● “What are the effectiveness of the non-financial rewards in meeting employee’s
intrinsic motivation needs?”
● “What is the gap between employee expectations and the current rewards system (in
terms of both financial rewards/extrinsic motivation and non-financial
rewards/intrinsic motivation)?”
● “How to improve the effectiveness of the rewards system (in terms of both financial
rewards/extrinsic motivation and non-financial rewards/intrinsic motivation)?”

Chapter 2: Literature Review

2.1 Effectiveness of financial rewards in employees extrinsic motivation
Financial rewards can be referred as extrinsic motivational aspects that has been given to
employees in the way of performance bonus, financial benefits, increasing payments which
can stimulate external motivation of employees. In this rapidly global changes, implementing
the change management, the employees should be motivated to perform efficiently, therefore,
these rewards helps the company to engage employees in organisational operations (Ngwa et
al. 2019). This research will discuss this domain in detail to determine the fact gradually.
2.2 Effectiveness of non-financial rewards in employees intrinsic motivation
This reward system is directly linked with psychological or behavioural motivation of
employees, hence, intrinsic or non-financial rewards includes employee development,
procurement, appraisal, training and skill development facilities. These elements help
employees to improve self-efficacy and boost confidence to make decision in hard times of
the company and can survive (Kurdi, Alshurideh and Alnaser, 2020). Apart from these,
flexibility, empathetic organisational culture and other components of intrinsic motivation
can enhance employees performance and generate increasing productivity.
2.3 Gaps between employee expectations and current reward system
The cultural gap has been identified in Tesco in meeting employees expected rewards, as
differentiated cultural backgrounds increased issues in employing reward system by the HR
of the company. Due to diverse regional and national policies, Tesco management has faced
trouble to satisfy employees and talent retention (Fadeyi, 2020). On the other hand, the
burden of cost, the company ignored training and employee development program facilitation
2.4 Improvement strategies for effective reward system
Improving employee motivation and reward system, Tesco needs to employ some strategic
innovation, such as it should impose employee recognition schemes to motivate employees
(Quadri, 2019). Additionally, enhancing responsible leadership will be effective, providing
online low-cost training and development program will also help to motivate employees and
generate desired productivity.
2.5 Theoretical Underpinning
Increasing globalisation and robust competition in the contemporary world maximised huge
challenges for organisations to sustain in this rapidly changing environemt and achieve a
competitive advantage. Examining the effectiveness, the researcher will evaluate “Maslow’s
Theory” regarding job satisfaction and employee motivation which will be effective for
further analysis of the study (Fadeyi, 2020). Consequently, “Herzberg’s Two Factor
Theory” will also be used to critically investigate reward systems’ impact.
Chapter 3: Methodology
3.1 Research Approach
Among the “inductive, deductive and abductive approach”, this study will follow “inductive
approach” to satisfy research needs. As it will be based on secondary sources, this approach
will help the researcher to evaluate huge data accountably and reliably.
3.2 Research Philosophy
The researcher will utilise “interpretivism philosophy” to conduct this study, out of
positivism, and realism philosophy, this philosophy will be suitable to discuss the secondary
evidences prominently and will create a path to meet the objectives.
3.3 Research Strategy
It will be conducted by following content analysis which will examine the facts and ideas
that has previously explained and will support the research outcaomes as per desire.
3.4 Data Collection Process
Investigating the effectiveness of reward systems in employee motivation, this research will
collect data from secondary qualitative sources. For this it will access electronic database
from Google Scholar, PubMed, online resources, company websites, CIPD data, government
websites, ResearchGate and books and journals.
3.5 Data Analysis Plan
Extracting data and analysing the relevant aspects of this study, the researcher will use
thematic analysis based on the research findings.
3.6 Ethical Considerations
The researcher will maintain ethics and norms while conducting this study, they will focus on
“Data Protection Act, 2018” and “Copy Right Act 1998” effectively.
References

Ali, B.J. and Anwar, G., 2021. An empirical study of employees’ motivation and its influence
job satisfaction. Ali, BJ, & Anwar, G.(2021). An Empirical Study of Employees’ Motivation
and its Influence Job Satisfaction. International Journal of Engineering, Business and
Management, 5(2), pp.21-30.

Fadeyi, A.P., 2020. An Analysis on the Application of Motivational Theories at Workplace

and the Impact on Employee Engagement: A Study of Tesco Ireland (Doctoral dissertation,
Dublin, National College of Ireland).

Kurdi, B., Alshurideh, M. and Alnaser, A., 2020. The impact of employee satisfaction on
customer satisfaction: Theoretical and empirical underpinning. Management Science Letters,
10(15), pp.3561-3570.

Ngwa, W.T., Adeleke, B.S., Agbaeze, E.K., Ghasi, N.C. and Imhanrenialena, B.O., 2019.
Effect of reward system on employee performance among selected manufacturing firms in
the Litoral region of Cameroon. Academy of Strategic Management Journal, 18(3), pp.1-16.

Quadri, A.A., 2019. Employees perception on effective reward system and motivating
incentives to enhance performance in Irish owned restaurants: A case study of reward
management system in Comet Restaurant Dublin (Doctoral dissertation, Dublin Business
School).

Websites

Statista.com, 2023 global retail sales [online] Available at:

https://www.statista.com/statistics/443522/global-retail-sales/ [Accessed on: 24th February
2023]

Tesco.com, 2023 Reward Systems and Employee motivation [online] Available at:
https://www.tesco.com/ [Accessed on: 24th February 2023]