Motivational theory in practice at Tesco
A Tesco case study

Page 1: Introduction

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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. Stockwell 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...
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Page 2: What is motivation?

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Motivation may stem from personal interest such as keeping safe or from external factors such as praise and reward. Different theories have been suggested for motivating employees. Pay is considered a primary motivator. Other motivating factors include: appreciation of hard work a sense of achievement responsibility and empowerment opportunity for advancement a sense of challenge and...
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Page 3: Taylor´s motivational theory

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In 1911 the engineer Frederick Taylor published one of the earliest motivational theories. According to Taylor´s research, people worked purely for money. In the early years of the car assembly industry, work on a production line was based on producing quantity and was repetitive. Workers were paid 'piece rate', that is, paid for every item produced. This approach of paying workers by...
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Page 4: The Mayo effect

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Internal or external factors may motivate a person to change or develop their actions. For example, an internal factor may be the desire to learn a new skill. This would reward the individual. External factors include, for example, sales targets and incentives. A more negative motivator might be no pay rise if targets are not achieved. In the early 1930s the theorist Elton Mayo suggested that...
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Page 5: Maslow and Herzberg

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Maslow Abraham Maslow argued that humans are motivated by five essential needs. He formed a pyramid demonstrating these needs which he called the 'hierarchy of needs'. At the bottom of the pyramid are basic needs, those that motivate people to work food and shelter. Once these needs are met through pay, individuals want safety and security through, for example, good job conditions. Social...
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Page 6: Conclusion

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Employee motivation is an important task for managers. Early motivational theory such as that of Taylor suggested that pay motivated workers to improve production. However businesses now need employees to have greater motivation and have a stake in the company for which they work, as shown by Mayo. Maslow and Herzberg demonstrated that employees are motivated by many different factors. Tesco...
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