Employee Motivation in Carrefour - Assignment Example

Employee Motivation in Carrefour CHAPTER 01 Introduction Business giants invent new strategies as markets globalise, competition intensifies, and both consumers and investors become more demanding. They provide high remuneration packages to their employees with the view of motivating the workforce towards achieving specific organizational goals. Such companies identify motivation as what “energizes, directs and sustains employee behavior” (Perry & Porter 1982, p.89). It is interesting to find how successful companies use motivation to achieve specific business goals. Thus I examine the employee motivation in Carrefour in this study. Carrefour is listed as the Europe’s leading retailer and the second-largest in the world followed by Wal-Mart. It was selected for this study because of its success and achievements in the world retail industry. In fact, more than 10 million customers annually visit Carrefour stores and 25,000 suppliers provide fresh food, grocery and other items such as small house-hold goods, textiles, home appliances (photo equipment, DVDs, sound and multimedia equipment) to these stores. Annual net sales at Carrefour amounts approximately 76,789million Euros of which forty-six percentage, proportion is generated in France and the rest from abroad. Fournier, Badin and Defforey founded Carrefour in France in 1959 with the purpose of “creating, acquiring and operating, in France and abroad, stores for the sale of all items, products, food and merchandise and, secondarily, providing within the said stores all services that may be of interest to the customers” (Carrefour 2012 p.272). Now Carrefour is a multi-format, multi-channel and multi-local group, comprising of 9,994 stores in thirty three different countries in the Europe, America, Middle-East and Asia. Motivation in today’s economy Employee motivation is viewed traditionally as the “struggle to get more for less” because more the performance of individual employees, less the cost of salaries for the company (Perry & Porter 1982). Cutting down the number of employees however helped sustain some businesses during the last economic recession. It suggests the importance of improving the workforce productivity rather than hiring new labour. In a study conducted in Germany revealed the economic recession in 2009 affected employment in many companies. Some employers had modified employees’ working conditions and pay in addition to the employment levels and staffing measures. Example, 67% of respondents in metalworking and electrical industry, 53% of respondents in chemical industry, 47% of respondents in financial services and 45% of respondents in hotel and catering sector reported fall in employment in their organizations during the economic recession in 2009 (Bispinck et. al. 2010). They also reported worsening financial situation of their employers simultaneously. Thus improving the labour force productivity in today’s economy is very important. Global giants annually invest a large sum of financial resources and expertise to motivate employees to work because motivation is viewed as promising when it comes to increasing workforce productivity. Example, Microsoft, Apple Inc. and Firefox have designed office furniture particularly to inspire creativity and innovative ideas. Giants in the hospitality industry such as Hilton Worldwide, InterContinental Hotels Group and Wyndham Hotel group offer annual trips to famous holiday destinations to motivate employees for work. Financial incentives are given as bonus, profit sharing and salary increments by most of the companies. In today’s competitive economy, presence of dedicated and brilliant employees is clearly a result of managerial effort and investments rather than a passive, coincidental phenomenon. It is worth investigating. Research Question The current study addresses the question on, how talented people in Carrefour can be motivated by the management to create a highly productive work force in the organization. Objectives Specific objectives of this study are; 1) To summarize the previous research findings relating to employee motivation, motivational programs and other mediating factors of employee motivation and 2) To examine how Carrefour uses employee motivation, motivational programs and mediating factors to achieve its specific business goals Chapters of this report are organized as follows. Chapter one on “Introduction” describes the inspiration of this study. Chapter two on “Literature Review” contains the concepts and previous research findings relating to employee motivation, motivational factors, programs and mediating factors in different organizations. Chapter three on “Methodology” contains the details of the survey that was adopted in this study. Fourth chapter on “Conclusions and Recommendations” suggests how the findings of this study can be used by the companies and researchers for their future work. Finally the references are listed. CHAPTER 02 Literature Review Work Motivation Motivation explains individual employee’s willingness to use their skills and knowledge to achieve the organizational goals set by the management. It is defined in research literature as “a set of energetic forces that originate both within as well as beyond an individuals being, and determines the form, direction, intensity and duration of a work-related behavior” (Latham and Pinder 2005) which is a rather complex and multifaceted phenomenon. Thus employee motivation is resulted by “combination” of characteristics in individual and organization (Gandalf 2005). Companies can obtain the best from their employees if the workforce is well motivated. The relevant behavioral outcomes of employee motivation are directly related to the successful completion of organization’s goals. Example, some behavioral outcomes include membership behaviors, reliable role behaviors and innovative, spontaneous action. Managers thus design specific programs to influence the mediating variables that results in these behavioral outcomes. Example, receiving financial incentives (i.e. motivational program) can improve job involvement of the employee (i.e. mediating variable) resulting in achieving the required sales target (reliable role behaviors) (Perry et. al. 2006). Motivational Factors Various causes of their motivation are known as employee motivational factors. Coyle- Shapiro 2002 adopted external characters approach and categorized common motivational factors into five groups namely; Financial rewards i.e. the provision of appropriate monitory rewards in terms of bonus, profit sharing and salary increments Job Content i.e. Work needs to be interesting, challenging and varied. Duties have to be relevant to the training and educational achievements of the employees. Further, the provision of right job for which one has the best aptitude and attitude can increase work place performance of the most talented employees. Getting employees participation in relevant decision-making is also important. Career development opportunities i.e. the established path for promotions should be transparent. Employees should have opportunities for getting required training and qualifications to promote within the organization and in the area of work. Supportive and social atmosphere i.e. the presence of ethical conduct and unbiased rewarding systems can motivate employees. Moreover, the congenial and cooperative working environment can increase the employee’s performance at work. Respect for private i.e. Employer‘s should respect and understand the employee‘s personal situation and support through the difficult times. Employees attached to the public and private sector are motivated by different factors. This is mainly due to the public and private sector differences in management and organizational culture (Wright, 2001). Example, Rashid and Rashid, 2012, reported employees in the public sector banks are more motivated by work contents and experience, balance between work and family life, whereas, private sector by financial rewards, career development opportunities, and supportive environment. Other empirical case studies reveal following motivational factors as important to the organizations; financial and other incentives, interesting work, job security, promotions, success, appreciation and feasibility of continuing further studies are reported as important motivational factors (Franco et. al, 2004; Timreck, 2002 & Jameson, 2000). Amiable et al., 1994, reported, competence and the curiosity are internal motivational factors while competitive atmosphere, evaluation, execution, working in force as the external motivational factors. Motivation encourages people internally to do the task while completing the task helps them to achieve a preferred other benefit (Saleem et. al., 2010). Enhancing intrinsic motivation drives employees to work in order to experience the pleasure and satisfaction inherent in that activity. Receiving a reward is interpreted acknowledging individual’s competence while satisfying their need for autonomy, thus resulting in intrinsic motivation (Deci, et. al., 1989). Motivational factor can be subjective i.e. such factors effective on one individual may not trigger the same level of motivation in a different employee in other industries or organizations or departments (Azar & Shafighi 2013). Therefore, motivation programs and mediating factors have to be considered. Increasing work performance via Motivating employees Work performance is considered to have a positive, direct relationship with the employee motivation and ability. Empirical studies have supported this relationship in many cases. For example, Azar and Shafighi (2013) examined the job performance and employee motivation relationship in Pakistan and reported a positive, significant relationship. Saleem et. al., 2010, also found a significant positive relationship between motivation and Job Satisfaction in Mobile Telecommunication Service Organizations of Pakistan. CHAPTER 03 Methodology This study comprises of two sections namely, literature review and empirical case study. In the literature review, about 20 peer reviewed journal papers are thoroughly analyzed. Research papers for reviewing are selected from the voluminous body of social and behavioral science research on motivating employees in public, private, and nonprofit organizations. Selection criteria is 1) published in an international journal after the year 2000 2) empirical case study or review of literature on employee motivation theories 3) paper can be accessed through a database that is available to the author. In the empirical case study a secondary data survey will be conducted on human resource management in Carrefour. Annual reports of the company that are available in the web will be thoroughly examined to identify the real world, success applications of motivational factors and mediators in a given organization. Carrefour was founded in 1959 by Fournier, Badin and Defforey, two families who ran a discount supermarket in Annecy. It is now a multi-format, multi-channel and multi-local group comprising of 9,994 stores operating in thirty three different countries throughout the Europe, America, Middle-East and Asia. More than 10 million customers annually visit Carrefour stores while 25,000 suppliers provide fresh food, grocery and other items such as small house-hold goods, textiles, home appliances (photo equipment, DVDs, sound and multimedia equipment) to these stores worldwide (Carrefour, 2012). CHAPTER 04 Results and findings Empirical Study Managers in Carrefour believe high returns come from challenging industry wide assumptions and not adopting the same policies as everyone else. In order to find innovative business models Carrefour is seen as a pool of scarce and valued resources and capabilities that are leveraged via a model. In this 365,000 employees around the world are the leading asset of the Group. Almost 90% of the Carrefour employees are involved directly the customers. These employees receive support and training required for the job. Carrefour operates in a competitive world retail industry where the principal risk factors found can be categorized into four groups namely; 1) Business Environment: i.e. trade policies and regulations, consumer preferences, and economic condition, market volatility, natural hazards, regulatory changes, terrorism, crime and political unrests 2) Strategy And Governance: i.e. Strategy definition, adjustment and implementation, Compliance and fair practices, Corporate responsibility, Disputes/Litigation 3) Operations: i.e. Relevance and performance of economic and business models, Operational and financial control of growth and expansion, Partnerships and franchising, Control of the supply chain, Product quality, compliance and safety, Safety of people and property, Human resource management, Continuity, integrity and confidentiality of information systems and Control and valuation of assets and 4) Financial: i.e. Liquidity risk, Interest-rate risk, Foreign-exchange risk, Equity risk, Quality of financial management, and Credit risk. Carrefour has defined human resource strategy to address and prepare employees for the above risk factors (2012, pp. 116-123). Studies show that the companies in competitive industries would not be able to survive unless they adopt two corporate strategies. These strategies include “cost strategy” which focuses on processing the value chain in the most efficient way, in order to produce products or services with the lowest price without jeopardizing the quality, and “differentiation strategy” which focuses on producing unique products or services compared to its competitors, with better quality, simpler way to operate, better looking and in other words, innovation (Baroto et al., 2012 p.120). Large companies such as Carrefour gain competitive advantage in the market mainly by using innovation. Carrefour stores Carrefour stores operate in a range of different formats and channels including hypermarkets, supermarkets, convenience stores, cash and carry stores for professionals and hypercash stores which are specifically designed to address the requirements of different consumer segments. Some of the formats are designed by vertically integrating the stages in the value chain example, Hypercash stores combines the benefits of Cash and carry stores (wholesale) and convenience of hypermarkets (retail). By creating specific investment between stages helps firms to internally exploit their pool of knowledge and capacities, and to guarantee quality of inputs and services employed. High level of vertical integration is not recommended to the firms operating in industries where high demand fluctuations may occur (Díez-Vial, 2007). However, the low market demand elasticity in the retail industry is favorable for Carrefour in its vertical integration process. Carrefour has also designed stores for achieving the competitive advantage by differentiation in a narrow part of the market example, Montagne stores for the shoppers in ski resorts. Moreover, a number of banners have been established to implement the Niche strategy in the company. The store types of Carrefour are further described below (2012, pp.8-14) Supermarkets Supermarkets are considered as the leading grocery format of Carrefour. It had 3,454 supermarkets under Group banners and 1,538 consolidated supermarkets throughout the world by the end of 2012. These modern and welcoming stalls provide fresh products, a selection of non-food products at competitive market prices (Carrefour, 2012). Hypermarkets Carrefour’s hypermarkets feature a very wide range of food (groceries and fresh products) and non-food products (clothing, electronic goods and decorative products). Broad selections of competitively-priced products that are suited to various consumer habits are available at these stores. In 2012, Carrefour had 1,366 hypermarkets throughout the world and introduced the “Lowest Price Guarantee” campaign which is an initiative designed to offer the most competitive prices in the market (Carrefour, 2012). Convenience stores Carrefour had 5,010 convenience stores in 2012, established under a number of different franchise banners which give a clear idea of their purposes example, Express: for daily purchases, City: features a range of ready-to-eat products aimed at urban dwellers in a hurry, Contact: everything a rural family needs and Montagne: for shoppers in ski resorts. Carrefour is currently expanding the network of convenience stores for facilitating a convenient and close to home, everyday shopping experience to its customers. Long opening hours and providing a wide range of products and services is considered as important aspects of convenience stores (Carrefour, 2012). Other types Cash and carry stores provide a range of food and nonfood products at wholesale prices, together with bespoke services to caterers and food businesses. Major-brand products, own-brand products, fresh products and products intended to be resold to grocers can be found in these stores. The product range includes specific items useful for catering such as assembly and hygiene products, crockery are available in cash and carry stores. At the end of 2012, Carrefour had a total of 164 cash & carry stores. Hypercash stores are designed to combine the benefits wholesale and convenience of hypermarkets. The Group is currently increasing the number of hypercash stores worldwide. At the end of 2012 Carrefour had 23 consolidated cash & carry stores. The products presented on pallets and sold in large quantities at wholesale prices at these stores are used by both the professionals and individuals. Carrefour’s franchised partners include Atacadão in Brazil, Label’Vie group in Morocco and the GrossIper in Italy (Carrefour, 2012). Motivational programs Mediating factors CHAPTER 05 Conclusions List of the References Amiable, TM, Hill, KG Hennessey, BA & Tithe, EM, 1994, ‘The work preference inventory: assessing intrinsic and extrinsic motivational orientations’, Journal of Personality and Social Psychology, vol. 66, no. 05, pp. 67-95. Azar, M & Shafighi, AA 2013, ‘The Effect of Work Motivation on Employees’ Job Performance (Case Study: Employees of Isfahan Islamic Revolution Housing Foundation)’,International Journal of Academic Research in Business and Social Sciences, vol. 3, no. 9, pp. 432-445. Baroto M. B., Abdullah B. M. M. and Wan H.L. 2012, Hybrid Strategy: A New Strategy for Competitive Advantage. International Journal of Business and Management,7(20), pp.120-133 Carrefour, 2012 2012 Registration Document, Annual Financial Report. Emile Zola: Carrefour Carrefour, 2012. 2012 Registration Document, Annual Financial Report. Emile Zola: Carrefour Coyle-Shapiro, JM 2002, ‘ A psychological contract perspective on organizational citizenship behavior’, Journal of Organizational Behavior, vol.23, no. 08, pp. 927-946. Deci, E. L., Connell, J. P., & Ryan, R. M. (1989). Self-determination in a work organization. Journal of Applied Psychology, 74, 580–590. Díez-Vial, I. 2007., Explaining Vertical Integration Strategies: Market Power, Transactional Attributes and Capabilities. Journal of Management Studie,44(6), pp.1017-1040. Franco, LM Bennett, S Kanfer, R Stubblebine, P 2004, ‘Determination and consequences of health worker Motivation hospitals in Jordan and Georgia’, Social Science & Medicine, vol. 58 no. 02, pp. 343-55. Gandalf, A 2005, ‘Why do nurses at a university hospital want to quit their jobs?’, Journal of Nurse Management, vol. 13, pp.9-327. Jameson, C 2000 ‘Helping people change: the magic of motivation’, Dent Today, 2000; 19(1): 78-81. Latham, GP & Pinder, CC 2005, ‘Work motivation theory and research at the dawn of the twenty-first century’, Annual Review of Psychology, vol. 04, pp. 230-516. Perry, JL & Porter, LW 1982, ‘Factors Affecting the Context for Motivation in Public Organizations’, The Academy of Management Review, vol.7, no. 1, pp. 89-98 Rashid, S & Rashid, U 2012, ‘Work Motivation Differences between Public and Private Sector’, American International Journal of Social Science, vol. 1 no. 02, pp. 25-33. Saleem, R Mahmood, A & Mahmood, A, 2010, ‘Effect of Work Motivation on Job Satisfaction in Mobile Telecommunication Service Organizations of Pakistan’, International Journal of Business and Management , vol. 5, no. 11, pp. 213-22 Styles, C. and AU - Goddard, J., 2004. Spinning the Wheel of Strategic Innovation. Business Strategy Review, 15(2), pp.63-72. Timreck, TC 2002, ‘Managing motivation and developing job satisfaction in the health care worker environment’, Health Care Manage, vol. 20, no. 1, pp. 42-58. Wright, BE 2001, ‘Public-sector work motivation: A review of the current literature and a revised conceptual model’, Public Administration Review, vol. 11 no. 4, pp. 559-586. Read More

 

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