Chapter 1: Introduction
1.1 Overview and background of the research
Today with rise of globalisation, competition among organisations increases more rapidly. They are dealing with numerous challenges for getting sustainable competitive advancement, both at domestic and international level. It includes retention of high skilled workers, develop and maintain relationship between employees having different cultural background etc. In this regard, retaining talented employees and motivating.
them to give their contribution and efforts towards achievement of business objectives and more, are considered as one of the long term objective for a company (Fearon, McLaughlin and Morris, 2013). For this purpose, companies dealing at global context adopt various motivational techniques to retain workers for longer period of time. This would help in giving a tough competition to other organisations dealing in same sector.
1.2 Overview and background of the organisation
This present research is context to Sainsbury which is the second largest chain of supermarkets in UK, having a share of near about 16.9% in same sector. It was founded by John James Sainsbury and headquartered in London. It offers a wide range of products which includes more than 30,000 branded items, among them 20% are labelled with own brand of Sainsbury. Due to increasing competition in retail sector, Sainsbury faces issues related to gain sustainability and maintain its position among other retailers. Therefore, to remain competitive it is essential for this company to increase productivity of workers. This would help in giving best services to customers and gain their retention for longer period.
Reward system in this regard, has been identified as one of the most effective factors for maximising productivity of workers. This system is developed for providing appreciation to high performer-workers. In addition to this, incentives are also given to low performers for boosting their morale to increase performance. The main purpose of this reward system is to attract, retain and motivated highly talented workers within workplace (Wilton, 2016).
1.3 Rationale of the research
Employee performance refers to a key consideration for achievement of business objectives. In this context, organisation use reward system to shape behaviour of workers towards business and respective jobs. It also helps in monitoring performance of employees and motivating them to perform at their level of best. In context with Sainsbury, main vision of the company is to provide best services to customers for getting satisfaction of them. While to maximise productivity of workers is its main mission to achieve high competitive advantage. In this regard, present research is going to identify how reward system helps in motivating workers, to give contribution in achievement of business objectives. It also evaluates role of employees in Sainsbury in running its business successfully in international market (Bridger, 2014). The main reason behind choosing this is to analyse the importance of reward system for employee motivation.
1.4 Research Aim, objectives and questions
This part entails aims and objectives of chosen topic in order to carry out research in appropriate manner. Therefore, aims and objectives according to this topic are given as below:-
Research Aim: “To assess the influence of reward system on employee motivation in the context of UK retail sector . A study on Sainsbury”
- To ascertain the importance of employee motivation in an organisation.
- To evaluate role of workers in improving business performance of Sainsbury.
- To determine the impact of reward system on employee motivation within Sainsbury.
- What is the importance of employee motivation in an organisation?
- What is the role of workers in improving performance of Sainsbury?
- How reward system impacts on employee motivation within Sainsbury?
Chapter 2: Literature Review
2.1 Importance of employee motivation in an organisation
According to the article Importance of Employee Motivation (2019), it has evaluated that motivating and encouraging workers is vital for any business. If employees are highly motivated than it reflects their higher productivity within workplace. It aids organisations in achieving their business growth and success in desired way. Therefore, it should be main objective for every organisation to motive its workers in regular manner. In context with Sainsbury, it has a large network of operation and an adequate number of staff-members. In order to get retention of such a large workforce, it needs to build an effective motivational strategy. But before building the same, it is essential for managers to understand in what manner employees can be motivated. It drives to get peak performance of workers by developing programs to motivate and retain talented staff. As every people has own need and desires therefore, motivational factors are also different as person to person. Some people prefer to get high monetary incentives, appraisals and promotions, etc. for their respective performances. While other individuals simple wants dynamic organisational policies which support work-life balance and provide job satisfaction.
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Thus, from perceptions of Moon, (2014)it has identified that employee incentive programs are considered as easiest way for motivating the workforce. It includes both intrinsic (monetary) and extrinsic (non-monetary) motivational techniques which helps in getting highly satisfied workers. In this regard, salary increment, annual and monthly bonuses, purchase allowance etc. are referred as monetary rewards. In contrast, extrinsic rewards include training sessions for enhancing skills of workers, constant appraisals and more, which appeal internally to workers. Managers of Sainsbury use most effective motivational strategy i.e. to offer salary bonus to those workers who have given outstanding performance at workplace. Contribution of these employees in achievement of business objectives, are recognised by giving both monetary and non-monetary rewards.
2.2 Role of workers in improving performance of business of Sainsbury
According to Harrison (2013),it has evaluated that workers play major role in improving and increasing performance of a business. They would help in increasing internal capabilities of business for maintaining sustainability and getting high competitive advantage. In context with Sainsbury, as it operates business in international level, where many retailers are already run. Therefore, it is essential for this company to gain high-commitment of workers for running business successfully. As per article Achieving competitive advantage through people (2019), which is given by John Berry, it has evaluated that competitive advantage can be defined as ability to gain profitability. For this process, it is essential for organisations to develop distinctive competencies which are difficult for competitors to replicate. It would help in increasing sustainability and getting high profitability as well. According to view points of Mudie and Pirrie, (2012) it has analysed that people are the main resource for organisation to achieve such objectives. They create innovation in business to differentiate its products or services distinct from others. In addition to this, they develop customer base, intellectual property, reputation of business and more.
In UK's supermarket and food retail industries, competition level has become more intense. Therefore, each organisation dealing in this sector like TESCO, Sainsbury, ASDA and more, is seeking to develop unique strategies to develop competitive advancement. With respect to Sainsbury, its workers perform various role to achieve the same in highly efficient manner. It includes enhancing productivity, effectiveness, innovation, quality of products or services and more. In this regard, for increasing productivity of workers and business too, managers of Sainsbury concern more on human resource allocation. Under this process, they identify strengths and capabilities of all workers on individual level to distribute roles and responsibilities accordingly. While for developing effectiveness and innovation in business, management formulate strategies to get high contribution of workers. Since in retail sector, success of entire business is mostly depended on retention of customers. Therefore, Sainsbury concerns more on service excellence. For this assistance, workers give their cooperation in providing best services to both national and international customers, as per demand.
2.3 Impact of reward system on employee motivation within Sainsbury
According to different views and opinion of Goffee and Scase, (2015)it has ascertained that every company seeks to get highly talented and motivated workers for achieving growth and success of business. For this process, they implement an effective reward system for recognising performance of workers. It addresses four key areas of motivation that are- compensation, recognition, benefits and appreciation. In this regard, contribution of workers are evaluated on the basis of their performance and behaviour. Here, performance is considered as easiest process to recognise or measure productivity of workers within workplace. For example: Implementing an incentive plan helps in fulfilling desires of workers and motivating them to give best performance. While rewarding specific behaviour of people aid Sainsbury in developing and maintaining positivity at workplace. Managers of this company used to identify behaviour of workers first, as this would concerns more on building reputation of business. Under this process, by rewarding people having good behaviour under workplace, motivate other workers to work in same manner. This would help in maintaining positivity and improving efficiency of employees as well.
According to Hughes and Kitson, (2012)it has evaluated that efficiency and effectiveness of an organisation is totally depends on performance of individuals. In this regard, if workers excel at performing their role then such company is also bound to excel in marketplace, as compared to its competitors. So, it is essential for Sainsbury to give appraisals and other kind of monetary and non-monetary awards. This would encourage and motivate workers to give outstanding performance for raising profitability of business.
Chapter 3: Research Methodology
It refers to systematic procedure which is used to select, identify and analyse information related to specific topic. It is study related to way in which research is to be carried out. In this researchers describe, explain and predict phenomena about research topic. This will help researcher to research questions, collect data and information for making effective decisions.
3.1 Research Philosophy
It refers to way in which data is accumulated, analysed and utilized. It is phenomenon which helps researcher to analyse different perspectives by which valid outcomes can be derived.
Basically there are two types of philosophies, scientific or positivist and anti-positivist or interpretivist. Researcher has used interpretivism research philosophy. As this is subjective interpretation of reality which can be recognized.
3.2 Research Purpose
It specifies that why specific research is being carried out. Aims and objectives of research are analysed. In this research, researcher assess influence of reward system on employee motivation. This research will analyse effects of rewards on employees and evaluate different aspects related to this perspective.
3.3 Research methods
These are techniques or processes, strategies used to collect data and analyse them so that better understanding of topic can be developed. It depends on topic or subject on which researcher is conducting research. Most frequent methods are observations, surveys, interviews, experiments or combination of some of these methods. Questionnaire is used by researcher for conducting this research.
3.4 Logic and approach
Logical research implies that any type of research must carry by obeying certain rules of logical reasoning and process of deduction and induction approach. Here, induction defines as a process of reasoning from a part to the whole. While deduction includes a process of reasoning obtaining from premise. In this regard, mostly project-makers use this method for drawing probable conclusions and result from findings.
3.5 Data sources (primary and secondary)
Primary and secondary sources of data are available. In primary sources data is collected by researcher in different ways like conducting surveys, questionnaires or interviews. In secondary sources data is collected by researcher from books, journals, surveys on internet or articles (Pearson, 2016).
3.6 Data collection strategy
It refers to process of collecting and measuring information related to specific variables which will enable individual to answer questions in specific research domain. Data is collected by primary and secondary methods. Primary collection refers to data collection by conducting experimentations, observations and surveys. Secondary collection methods refers to collection data which is already available and is analysed by someone. This includes data published on journals, newspapers, magazines or books. Primary research is used by researcher by preparing questionnaires.
3.7 Data population, sampling and sample
Population refers to collection of elements which have similar characteristics. Number of elements which are in population depicts size of population. Sample refers to subset of population. Process by which samples are selected is referred to as sampling. It is a statistical analysis technique which is used to analyse and influence data patterns. Probability and non-probability are types of sampling. Non-probability sampling is used by researcher. In this questionnaire is prepared by researcher to collect data (Eccles, Krzus and Ribot, 2015). Here, researchers have chosen a sample of 30 respondents from total population of size 100.
3.8 Research instrument
It includes tools and techniques to measure reliability and validity of a research, including methods which are used for collecting the data. Here, researchers can use rating scales, flowcharts, tally sheets, performance checklists and more.
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3.9 Analysis methods
It is critical part of research study. Data has no meaning until it is analysed. Data analysis refers to process of summarising data. It is process of applying logical and statistical techniques to illustrate, describe and evaluate data. In this research, researcher is using thematic analysis which is part of qualitative method. This will help to determine influence of rewards on motivation level of employees.
3.10 Research ethics
Researcher should know research ethics before research is conducted. To maintain validity and reliability of research, research ethics plays vital role. Individual focus on collecting primary data by consent of contestant. In order to assist interest of contestants, consent has been taken by researcher on paper. For collecting secondary data permissions and approval has been taken from respective authorities.
3.11 Limitations of research methods
There are various limitations which occurs while conducting research. Some of them are as: formulation of aims and objectives of research. Researcher might formulate them broadly, they must be narrow, so that focus can be maintained on specific point. For data collection extensive experience is required, in case of secondary methods books or number of articles must be evaluated and analysed. In case of primary research their may be lack of confidence, as businesses have viewpoint that their data may be misused.
Q1) Do you think employee motivation will help in getting high-performance of workers for a company?
Q2) Is focusing on employee motivation is important for retailers?
Q3) What is the main role of workers that enables Sainsbury to gain high competitive advantage?
a) Provide best services to customers
b) Give contribution in introducing innovation in business
c) High dedication towards growth and success of business
Q4) What is the major cause behind increasing staff turnover rate within an organisation?
a) Lack of employee motivation
b) Rise in global competition
c) Weak internal management
Q5) Which is the most important reward that motivates workers at Sainsbury?
a) Monetary rewards
b) Appreciation and Promotions
c) Non-monetary rewards
Q6) Which are the motivational activities Sainsbury can use to increase productivity of workers?
a) Working hours flexibility
b) Training and development
c) Dynamic Organisational Policies
Q7) What is the main impact of reward system on employee motivation under Sainsbury?
a) Boosting morale
b) Enhancing level of performance
c) Retaining workers for longer period
Q8) Do you think Sainsbury is able to remain competitive at international marketplace?
Q9) Provide some recommendation to Sainsbury for improving employee motivation
Chapter 4 : Discussion, Recommendation And Conclusion
Importance of employee motivation in an organisation
While working in an organisation, motivation is a crucial factor for keeping morale of employees higher because if morale of employees will be higher than productivity will increase and if it is not so than it can work as a negative factor for a company. Therefore, Sainsbury can think of implementing new policies or and must consider the requirements of employees so that employees can be motivated in an effective manner. Along with this, managers of a company has to determine whether workers wants monetary, non-monetary, performance appraisal etc., because there might be a possibility that some of the employees doesn't want bonuses and required extrinsic motivational techniques. Therefore, whatever actions is being performed by company its consequences can be seen on employees and their performance.
Role of workers in improving performance of Sainsbury
Workers, in an organisation are an important factor as they perform their job for providing better results and outcomes. Further, it is crucial that company develop different competencies which can be difficult for other rival companies to compete. As a result, it will help firm in increasing their sustainability for a longer period of time and gaining maximum benefits as well. Therefore, it can be said that employees are the main resources with the help of which company can achieve their goals and objectives. Along with this, company can make many strategies for managing things in a systematic manner. This would help Sainsbury in improving its performance and enhance sales more effectively.
Impact of reward system on employee motivation within Sainsbury
There are many ways through which a company can motivate its employees and reward system is one of the effective process. Rewards system cab have both positive as well as negative impact on worker's motivation and can further help them in achieving goals and objectives. For instance: Sainsbury, with the help of proper planning and its implementation they can think of identifying who is the person who best suits for reward. For example: by evaluating behaviour of employees manager of the company can provide rewards to the same.
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By performing this research it has been analysed that motivation is an important factor which is required by a company to focus on. Based on motivation success and failure of company can be analysed. For instance: if Sainsbury uses appropriate methods of motivation than they can develop a sense of motivation in employees as a result, better outcomes can be gained. But if firm shows least interest on encouraging worker's motivation than company can fail in grabbing opportunities from the market area. As Sainsbury is a retail company and since its establishment they are providing better services and facilities to its customers. As a result, it is helping them in sustaining a better position in the market area. But in order to become one of the leading company it can be recommended to company that on a regular basis must change the procedure of reward system according to the needs and requirements of employees. Company, in their policies should have both monetary as well as non-monetary forms of reward so that the same can be provided according to the choices and preferences. Other than this, to boost the morale of employees company should include different kinds of activities within organisation so that better relations can be maintained between works. This will not only encourage employees for working in collaboration but also aid them in achieving goals and objectives.
From the above report it has been evaluated that, employees performance is totally depends upon how strongly company has motivated its employees for achieving goals and objectives in a speculated time frame. Therefore, developing and implementing different strategies company can boost morale of employees as a result, it can provide better outcomes to firm in return. Therefore, it is necessary for a company to introduce reward system in business, for motivating its employees. By recognising workers for their outstanding performance and provide incentives to low performers, help in boosting morale of them to give high contribution.
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