Writing a Problem Statement

 Problem/ Issue: The level of employee performance of Tesco is not improving despite significant
resources being allocated for employee rewards

 “Why” Question: Why employees are not improving their performances even after receiving
sufficient intrinsic and extrinsic rewards for their expected performance?

Employees lack
sufficient skills
Employees are not
finding the rewards
satisfactory Supervisors are not
effective
Rewards cannot
improve abilities
Value of the
rewards are not
enough

Employees are not Inaccurate performance

motivated enough feedback
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Sorting:

Reward issues Employee issues Management issue

Employees are not

finding the rewards Employees are not Inaccurate
satisfactory motivated enough performance feedback

Employees lack Supervisors are not

Rewards cannot sufficient skills effective
improve abilities

Connection: In this, today’s highly competitive and ever-changing business world employee

retention is the major concern for many organizations. Employees are the assets of the organization

and retaining them will give the organization competitive advantages and sustainability in the

modern business environment. Rewards are given to the employees with the aim of increasing the

productivity of their as well motivate them to work more enthusiastically to achieve the goal of

the organization. As employees are the major strength of the organization they need to be

motivated and give their best of efforts so that they can contribute to the organizational goal

achieving. There are many ways that organization can motivate the employees those can be

financial and non-financial rewards which had a great impact on the performances of the

employees. There are primarily two types of reward systems; extrinsic rewards to be one that is

giving a financial reward to the employees for them. Offering additional payments, bonuses are

common form extrinsic reward. On the other hand, in case of intrinsic reward, the rewards come

in non-monetary forms (Moon, 2014).

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Although better rewards should lead to enhanced performance, Tesco is having a hard time

improving the overall level of the employee performance even with what they think to be sufficient

reward.

Five Whys Root Cause Analysis:

Defined Problem: Rewards are turning out to be ineffective when it comes to improving the

level of employee performance.

Why is the overall level of employee performance in Tesco is not increasing?

 The ability and the skill of the employees are not up to the mark

Why is that?

 Due to a flawed recruitment process and lack of training the employees are not being

efficient

Why is that?

 The management style is not effective enough to recognize the skill gap

Why is that?

 Due to lack communication and ineffective supervising

Why is that?

 Supervisors and recruiters are concentrating more on achieving their individual quotas

Why is that?

 There is a lack of inspiration leading to teamwork and rewards are not designed in a way

where collaborated teamwork is especially rewarded.

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Validation Root Cause:

The management style is concentrating more on individual goals while collective

achievements are not being valued enough. Due to such individualistic management style, a clear

lack of effective communication is hampering smooth flow of information. Therefore, the skill gap

of the organization is slowly growing. Even though rewarding can increase motivation to improve

performance, without training and appropriate job placements the performance cannot be

improved as rewards cannot increase the skills and abilities which are two core components of

employee performance.
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References

Moon, T.C., Beck, S. & Laudicina, R.J. (2014), "Retaining Experts: Administrators' Views on

Retention Incentives and Older Employees", Clinical Laboratory Science, vol. 27, no. 3,

pp. 162.