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Effective Motivational Incentive Used Within the Tesco to Increase Employee Performance - Essay Example

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This research study was undertaken to examine the impact of incentives on employee performance within the Tesco PLC. The research was conducted during the period of January-March 2010. The study results indicate that incentives have a definite positive impact on employee performance …
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Effective Motivational Incentive Used Within the Tesco to Increase Employee Performance
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The HR manager of the company perceives that providing incentives to the employees is an accurate strategy to motivate the employees to perform more productively. Motivation is one of the most frequently researched topics in organizational behavior (Hackman & Oldham, 1980). In a huge retail chain like Tesco PLC, it becomes all the more an important issue as the company has core values of ‘customer service’ and ‘commitment’. As the company strives to achieve its core values the HR manager adopts a strategy wherein the employees are offered incentives in the form of rewards, benefits and training schemes.

Clearly, the study shows that Tesco employees perceive such incentives positively and these motivate them to perform better. Employees become more and more committed to their jobs and it equips them with a sense of achievement. Finally, such incentives have an effective impact as well as they generate trust and respect towards the management and company.Currently, the company uses several incentives in the form of rewards and benefits, for example, privilege card, bonus schemes, pensions etc.

and other incentives in the form of training programmes like an apprenticeship, TWIST etc. Some of these schemes are a part of the annual review and some of them are offered to the employees on a more regular basis. From the present study, it can be analyzed that there is a strong relationship between effort and performance, performance and rewards, and the rewards and satisfaction of personal goals. Each of these relationships, in turn, depends on many other HR factors, for example, the appraisal system of the company.

Thus, it can be said that while on one hand motivation through incentives is a definite precursor to better performance, on the other hand, other factors should also be in place for a smooth running of the system.   

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