Effectiveness of the methods for enhancing both employee

and business performance.

the organisation structures in Tesco operate in sort of a bureaucratic structure
where authority and power flow from the upper to the lower level in the company,
this evenly has propinquity in the rewards structure also as higher level staff get
more reward than what the lower level, athough the lower level staff are more
effectual in the performing of the operational functions that have important role in
the company success.
team or individual effort is not rewarded under the current salary structur.
Employees get the anticipated automatic annual raises that are integrated into
their base pay. Also, the employees receive the cost of living increment which is
set by the place, this structure show the rising value that employees are consider
to afford to the company as they obtain experience in their job, this has serious
cons as increments would reward the path of time and disregard performance as it
is the existing reward structure is consequently adapted toward rewarding
employee for their loyalty and their time in the company and ignore their
individual performances within the company(Boyne,2002)
The pay structure is standardised as directors, senior managers are set on
individual basis, and new employees are normally placed on the lowest salary point
within the grade for their post and service longetivity, the appropriate grade for a
post is identified using HAY job evaluation scheme, progression in the grade is
reached by acquisition of annual increments until the maximum of the grade is
reached which however leaves employees "stuck" at the top of their grade with no
real prospects to progress further or get a promotion into the next salary grade as
this could be considered as a factor which derails the morale of individual and it
certainly affects performance too.
Hence, there is a big issue that needs to be solved as Tesco needs to balance the
advantages of having a long service,reliable,experienced,commited workforce
against the inherent conservatism, inflexibility and resistance to change usually
associated to them, the organisation faces pressures to become more efficient and
performance-oriented. Automatic service increments are costly to Tesco and they
are not fully appreciated by employees that feel they are entitled to annual
increases and progression though star performers are encouraged and signed on to
a programme called Options which is training on how to be a manager but there
are still questions if everyone is motivated with such motive as some wouldn't be
interested in this initiative.

As a result they may put in the "minimum" effort as they are fully aware that they
will be guaranteed a pay increase at the end of the year which some writers
referred to as a golden handcuff as poor performers continue to stay with the
organisation because they continue to be rewarded well, as a matter of fact, a
director mentioned 2we have many long-serving staff", as pay and conditions here
are very good and there are not too many performance expectations. (Dittenhofer,
2001). This might contribute to organisational inertia if managers are reluctant to
manage poor performances through the performance management system and
employees may feel as the programme manager put it so they can get away
mediocre and contribute to under- performance.
Additionally, there is a free company shares given annually to employees as a way
to reward them for their hard work which is a good idea and gives them the
advantage of 10% discount from any of their purchases from the company by
issuing employees a discount/privileged card after six months of service but how
are the exceptional performers rewarded? It is left be unknown which is a major
challenge to be considered and looked into.
Therefore, the challenges faced by Tesco from the discussion above could be listed
as follow

Non-existence of Individual/Team Reward

Lack of Motivation

Organisation is Less Performance Oriented

Low Performance Output from Employees

Inability to Manage Poor Performances

Hence, the need for comparison with a relatively successful and large retail
organisation is needed in order to justify the challenges the retail sector is facing in
the reward and performance management world, this would enable one to
evaluate the situation more and leads me to the discussion of reward and
performance management in Waitrose supermarket in the subsequent paragraphs.

RECOMMENDATIONS:
it is very important that managers at Tesco take into consideration the following
recommendations in relation to rewards, recognition and performance
management:

 management should ensure that they provide rewards that are needsatisfying for their employees because effective rewards motivate people by
satisfying their desires. This is because if a manager offers rewards to
employees who have no interest in these rewards offered, this will likely have
worse, may send the signal that the manager does not care about the
employee. One way to do this is to take into consideration the demographic
group within their organization, so as to find the most effective reward and
recognition practices.
Rewards offered to employees must equal to the effort they put in their jobs.
Top Managers have to ensure that employees do not feel that their duties in
the organization are going unnoticed. They should try to ensure that the
rewards offered to employees, measures up to their input in the organization.
This is because employees will be more willing to stay in the organization if
they feel a sense of pride in their jobs.
Managers should ensure that the rewards offered to employees are
generously distributed and are timely. One way is by making sure that the
rewards do not take a long time before they are offered to employees.
rewards must meet the needs of employees. they would prefer job security,
time-off and career development to existing rewards that Tesco offers. For
many employees, the ability to control their own schedules and have flexible
hours might be the most valuable non-monetary reward that management of
organisations could offer. For others praise from the top management of the
company can go a long way, whether in the form of handwritten notes, small
awards like trophy or plaque that shows why the employee is highly
appreciated by organization.
More so, in order to motivate employees managers have to come up with
some appropriate kinds of non-monetary rewards that will motivate their
employees. These non-monetary rewards may include: Certificate of
accomplishment, more autonomy for employees to determine how their work
is completed, selecting the employee of the month, letter of appreciation
with copies to employee's file, regular recognition lunches for employees and
tickets to local events. They also have to understand and evaluate which
non-monetary rewards are suitable for their employees.

Tesco, however, should consider whether the employees are really interested
in all the benefits offered to them and if some other benefits may suit them

as well. For example, introduction of a cafeteria system, or an optional menu

system, where the employees themselves within the chosen financial limit,
will choose by themselves, what benefits they want to use, etc. The system
would be challenging for the organization, but it would increase the impact of
the provided benefits of the company.
In addition, the company should consider whether employees are sufficiently
familiar with the benefits they are entitled to and how to obtain them. With
the Tesco's benefits, all employees are awarded once already in the
admission procedure. In the adoption period in the company, typically
everybody will receive a brochure "Welcome to Tesco", where all employee
benefits are properly described along with the conditions of obtaining them.
Because the benefits offer is being constantly updated, Tesco must ensure
that all changes are introduced to employees in time. In the premises, the
employees have the opportunity to learn all this information from the local
boards, which the personnel managers of the specific branches have to
update regularly. In addition to message boards and brochures, all the
information is available on the company Intranet, where the lists of benefits
along with the terms of usage are also constantly updated. If Tesco
implements radical changes in providing benefits, it will certainly not rely
solely on the message boards, but should follow up with the appropriate
training and provide sufficient information material to all employees.

In order to improve the team performance of the staff Tesco needs to adopt
a top to bottom approach as communication is very vital for implementing
the strategy in any organization. Moreover if the top management does not
have communication with the lower staff it gets difficult to assess and
monitor strategic objectives and processes going on in the company (Mabey
2002). For this Tesco needs to develop various channels to have a smooth
flow of communication to transfer information and to have a better check on
the performance of the employees. The higher management needs to keep a
healthy relation with the employees to assess them accurately against PDP
folder.
Moreover identification of the work objectives, key dates and support
materials should be provided by the management and also at their daily and
weekly staff meetings so that staff can measure their contribution to the
steering wheel.
Moreover the steering wheel should be monitored strictly against the
performance of the employees as it enables the company to strengthen its

objectives and attain competitive advantage through workforce efficient

performance (Prahalad and Hamel, 1990).
References:
Read more: http://www.businessteacher.org.uk/essays/business/personnelmanagement-and-human-resource-management.php#ixzz3WMdpaCrd
Read more: http://www.businessteacher.org.uk/essays/business/the-link-betweenmotivational-theory-and-reward.php#ixzz3WLWQxwvP
Read more: http://www.businessteacher.org.uk/essays/business/the-link-betweenmotivational-theory-and-reward.php#ixzz3WGcWWHuE