Case Study and Analysis on Employees Job Satisfaction in Tesco


  • Unit No: 5
  • Level: Undergraduate/College
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Organization Selected : TESCO

PART 1 Action Plan

Basis of company issues

In recent times there has been increase in number of cases related to employee satisfaction. It is because many organisations is not able to identify the need for employee and fulfil it. Also, for this no proper planning is done. This leads to conflicts between employees and management. Similarly, a case study of tesco is taken and analyse. For the present case study organisation selected is tesco. As tesco operates globally, it has to analyse various factors and develop strategies. Also, it has to change its policies to according to countries. They have to motivate employees from time to time. Also, tesco has to ensure that employee needs are fulfilled and their efficiency is enhanced.

Motivation in work place

Tesco is facing some more problems that are related to motivation at workplace. This has affected the product quality and goals are not achieved on time. It can be observed that in recent times the quality of products is not up to the standards. It is due to lack of motivation among employees (Houghton, Shaw and Casey, 2015). The decision taken by each division is varying a little bit. So this has affected production and services. Due to this there brand image has been declined. They are not able to meet needs of people effectively. Also, there has been rise in number of complaints related to this. It has enabled tesco to improve quality so that it can regain market share. This is because in recent times tesco is facing issues related to management and managing change in organisation. These issues are occurred due to change in policies. The new policies have provided rights to managers to take individual decision. The decisions are affecting the overall performance of enterprise (Yazan, 2015). Also, Tesco is facing many other issues that are related to corporate governance. Therefore, in order to analyse the issues and to identify the root cause of problem tesco is taken. The case study is all about how change in top management has affected the overall operations of Tesco. Besides this, it shows that how decisions are taken and implemented without involving employees. So this has changed their behaviour and performance.

Treating employees badly

There has been rise of disputes between management and employees. It is because workers are forced to implement change. Moreover, they are not allowed to work freely. So goals and objectives are not achieved on time. Another issue that has been shown in case study is regarding implementing change. As new director is appointed it has forced to implement change. This is because the new director wants to change process so that products can be developed. So it has resulted in change in ethics (Fallatah and Syed, 2017). Tesco has been enforced follow new ethics. This has impacted the culture of company as well as employee behaviour. Due to this there motivation level has also been reduced. They are not able to perform effectively. So overall efficiency of tesco has fallen. In addition to this there are many issues that has not been solved by management. They are related to modifying the process and methods that has not been implemented till yet. This has frustrated employee as well as managers. So goals and objectives are not achieved on time.

Relevant theories

Herzberg motivation Hygiene theory

The psychologist Frederick Herzberg extended the work of Maslow and proposed a new motivation theory popularly known as Herzberg’s Motivation Hygiene (Two-Factor) Theory. it is known as one of the effective theory which can be adopted by Tesco company in order to motivate its employees and improve its productivity and profitability. As per the theory the opposite of satisfaction is not dissatisfaction. The main heading is that removal of dissatisfying characteristics from job do not lead to make job dissatisfy (Sekhar, Patwardhan and Singh, 2016). Further it can be said that, if hygiene factors that are salary, working condition safety and security, and work environment are unsuitable within the company then it leads to demotivate employees for work. Apart from these motivating factors such as job satisfaction, based suitable working environment, high salary this all lead to motivate employees to work hard for company. if all these elements are effective then it can easily motivate employees to accomplish above average performance. For instance, to have achievements or responsibilities lead to increase job satisfaction. On the other side, hygiene factors are those which lead to make sure that employees are not dissatisfied. While motivation factors lead to make sure that employees are highly satisfied from their work.

Here below are provided five factors of job satisfaction that can be implemented By Tesco company

  • Work itself
  • Advancement
  • Recognition
  • Achievement

Herzberg five factors of Job dissatisfaction are as follows:

  • company policy and administration
  • supervision
  • salary
  • interpersonal relationships
  • working conditions

Further it is analysed that there are four different combinations which can exist at work that are as follows:

  • High hygiene and high motivation
  • high hygiene and low motivation
  • Low hygiene and high motivation
  • Low hygiene and low motivation

Tesco company can create a condition for satisfaction at the workplace. It can think about the way of creating conditions so that employee’s performance can be improved. further companies can provide opportunities to their employees for growth and development. It is considered as best technique through which company productivity can be improved and they can work hard for the firm. At the time when company adopt this theory the it should not only provide hygiene factors to ensure that employees are not dissatisfied but it should provide factors such as intrinsic to work itself so that employees can be satisfied from their job.

Maslow need theory

This case also shows that how the motivation of employees can be increased. This can be done by hiring new leaders. Also, by applying the Maslow theory in which emphasis can be on employee needs. Furthermore, it can be solved by setting short term goals that is easy to achieve. This will help employees to get the task done in specified time period. Furthermore, by identifying the needs of employees they can be motivated (Lappe and Spang, 2014). In this training can also be given to them. Along with this, hertberg two factor theory can also be followed. It is based in two factors that are motivator and hygiene. Then employees cane be divided into two groups and they can be motivated. For this theory many authors have given positive reviews. It can be analysed from case study that tesco is facing problems that has affected employee productivity. Also, it has affected the overall operations in tesco. This is the main reason why issues are rising. However, some measures are taken by tesco to manage work so that change can be implemented properly. Leader are assigned new roles and responsibilities on how they will motivate employees. Various new policies are introduced that has resulted in improving tesco culture. Maslow theory focus on fulfilling the needs of employees which help in keeping them satisfying from their job and way of working.

Hence adoption of both the theories that are Maslow and Herzberg motivation theory can easily improve company performance and enhance satisfaction of employees. Further it also help in retaining experienced employees for longer period of time. Company should be careful while adopting method of motivation because employees are important part and their way of working can directly affect the sales and profit of the firm.

McKinsey's 7 S model

In context to this case a theory can be applied that will help in solving this issue. In this McKinsey's 7 S model can be applied. It will help in improving the overall organisation performance. Also, with this it can be determined that how change can be implemented. In this there are 7 elements that divided into two categories. These are hard and soft. In hard strategy, structure and system are included whereas in soft skills, style, staff and shared values are included (Pishgar-Komleh and , 2015). By using this model director can implement change in tesco. Furthermore, it will help in determining in what ways change will help Tesco to develop products. This model is suitable as it has been applied by many other organisation. According to Lappe and Spang, 2014, this model is the best way to implement change. It is because it contains all the 7 elements that are essential for an organisation. Besides this, it is beneficial for maintaining change for long term as well. This can be done by applying the kaizen model. In this tesco can make continuous improvements in process and methods. As per the view of Hancock and Algozzine, 2016 this model has given advantage to companies that operate on large scale. In addition to this it has been identified that in many cases this model has been successful. Management has developed proper and effective strategies to implement change.


Tesco is facing several issues related to employee satisfaction. It has also affected the behaviour of employees. Due to this tesco sales and profits are declining. Besides this, there is rise is employee turnover. The issues are identified and theories are implemented to solve them.


Case study

Introduction – Corporate governance is a set of rules and regulations that is followed by company to engage in practices doing business. They are similar to ethics that is followed by stakeholders. It has been the core function of business that allows contributing towards society. Besides this, it enforces business to deal in fair practices and work with regard to interest of stakeholders. Also, motivation is an important aspect that is taken into consideration. It is very important to motivate employees so that their efficiency can be enhanced (Zareen, Razzaq and Mujtaba, 2015). Also, motivated employees helps in creating a better and positive environment. In recent time there has been many complaints of employees in tesco regarding the work culture. These complaints are related to improper behaviour of supervisors. Moreover, it has been said identified that employee performance has declined. Motivation plays a vital role in improving worker efficiency so that goals are achieved in specified time period.

Company background

For present case study tesco has been selected and the issue regarding motivation at workplace is discussed. Tesco is a retail company that operates at global level. It provides variety of products to customers. Apart from this, tesco provide various services to retain people. Also, company has successfully retained their customers. This has enabled them to create a large customer base in different markets. By this tesco has earned huge revenues. Company motivates their employees by providing them training by various methods. Apart from this, the level of tesco productivity has been declined. Thus, in order to analyse the impact of training on employees tesco is chosen.

Issue 1 : Change in laws and regulations

In 2012 tesco made changes in their policies of appraisals and training methods. This was done to provide a better work place environment. The board of directors decided to hire new leaders so that employees can be motivated in better way. For this new teams were created. The changes were made regarding wages (Dutta, S.O.N.A.M. and Kant, K.R.I.S.H.A.N., 2015). Due to this reward management system was changed. There was unequal distribution of incentive and rewards between them. Some employees complained that performance was not measured properly and incentives was given to them. This created disputes among employees and management. They are less satisfied with incentives that has been given to them. This has affected the overall tesco operations. With this employees were not working well. In addition to this, it has created a bad impact on culture of tesco. There has been increase in conflicts. Employees are coordinating with each other in completing work. They teams are not working well. Also, managers are not able to solve conflicts so this is frustrating employees. They want to solve those issues first so that task can be done properly. This is the reason absenteeism has increased.

Issue 2 : Following structure at work place

There are various policies and laws that has to be followed by employees at workplace. These laws consist of health and safety, data protection, etc. but in tesco law was changed related to training method. The changed was made as there was lot of complaints of employees and managers in managing work. In this major changes was made in communication structure. The relationship between management and employees was not good. It was due to lack of motivation at work place (Hughes, McCulloch and Valdes, 2018). Due to excessive work load employees has to perform several tasks at one time. So this affected individual goals as it was not achieved on time. Moreover, employees were not given training of performing other task in which they were not specialised. Due to this their performance was affected and this lead to decrease in motivation. They were not happy with the working environment. This demotivated them. Furthermore, management was not looking in to this. They have to follow structure strict6ly in case of emergency. The structure was changed because there was lack of non executive directors. This made structure more complex. Tesco was not in position to hire them.

Issue 3 – Bad treating with employees

Every organisation must maintain strong and effective relations with employees. This is because it helps them to develop better and positive working environment that is beneficial for organisation as well as employees. Also, employees must be treated equally so that their motivation is enhanced. They must be treated with respect organisational culture is maintained. A better culture will reflect positive image in the industry. But in tesco the case was different. There was lot of discrimination practices followed by management. The new leaders were not treating well with them (Essop and Hoque, 2018). They were forcing them to apply their strategies. Leaders have chosen some best employees and guided them in easy way leaving others. With some they were working well while with other discrimination was done. Moreover, employees complaints were ignored by managers. In tesco no one was listening to their problems. Leaders were given some power to take action against them. They didn't allow them to work together. Leaders were disrespecting some workers. Due to this their behaviour was changed. They were not highly participating in decision making process. A feeling of disrespect was created among them. They started taking leaves and not performing their work in proper way. In this employees were also discriminated on the basis of caste, creed, colour, etc. it was found that racism was also done with them. In addition to this there was no right given to them to refuse to work. In this some employees were forced to work for long hours and some were paid less wages as per their performance. This has also created differences between teams and their psychology. They now feel discriminated from others.

Issue 4 Unequal distribution of power-

In an organisation there is proper power of distribution among people. It is because it helps in taking decision in developing policies. The power is distributed according to the position. This means that manager will have different power than director. Employee power will differ from superior. In tesco there was unequal distribution of power (Kiruja and Mukuru, 2018). The board of directors has the authority of assign power to people. But some people were taking advantage of this. They started taking decision that was not in favour of company. Moreover, employees found that there was unequal distribution of power. This lead to conflicts among them. Also, they complained about this but no proper action was taken. Due to this employees was dissatisfied. Their performance declined and it affected the organisational culture. Furthermore, tesco rendered some policies related to employee performance. Employees were not assigned equal rights according to the equality act. It has resulted in conflicts among management as well. They try to dominate with their rights. It has created a negative impact on their juniors so they do not interrupt between them. Due to conflicts work is not properly assigned and work load increased. Goals was not attained and tesco productivity was declining.

Issue 5 Lack of proper training

Organisation must retain their employees so that efficiency can be maintained. It also helps in creating a positive image in the market about their culture. In present times, there has been tesco is facing issues related to improper training. The efficiency of workers has declined. This is due to lack of proper training provided to them. Due to this they are not able to perform their roles and responsibilities effectively (Fallatah and Syed, 2017). Also, tesco is not having proper tools and equipments through which training must can be provided. Beside this, the tools that are already installed are outdated. Even if training is provided to employees it is not sufficient enough to perform the task that has been assigned to them. Alongside this, the manager also is not paying attention in providing training. They just do the formality. This has impacted employee behaviour to a great extent. They felt demotivated. Moreover, the goals and objectives were not achieved. Also, there was burden of attaining goals and objectives on employees head. With this the goals were achieved but quality of work was reduced. It also leads to rise in amount and resources that was used by them. The expenses of tesco was increased. Employees motivation was affected. This issue has been refereed as most affecting one because of downfall in tesco growth and revenue. The superiors are responsible for this. They also did not monitor their performance and evaluated it. It was the main reason weakness was not found out and proper actions were taken. With this tesco there was constant job rotation of employees. So they were not able to focus on their work. The poor relations with manager also restricted them to perform in creative way. By this their working ability was affected. The sales declined. Tesco employees got frustrated and they were not able to complete task.

Issue 6 Lack of job security

Job security refers to the probability that an employee is having a high level of satisfaction in his or her job. When an employee will have high level of job security then he or she will work in more effective way. It is the responsibility of company to ensure that employee job is secured. This will make him happy. A greater level of job security provided by organisation helps in enhancing their productivity (Sekhar, Patwardhan and Singh, 2016). Due to this employees are leaving tesco. They are giving resign. This created a negative impact on others. In tesco most of them works for usually one year. Then, they left the job due to improper culture. Sometimes, employees make groups and then force each other to leave the job. Tesco is not having basic measures to provide job security and to retain them. Due to this many employees has left the organisation. The manager has also laid emphasis on retaining them but failed as there was no proper policies that can be provided. The decision taking was not in their hands as they have to consult to high level management.


From the above it is concluded that in tesco there was lack of motivation among employees. Due to this their performance was affected. Also, goals and objectives was not achieved on time. Therefore, in order to solve issues management decided to implement some policies for this. It will help both the employees and tesco. For this management decided to involve other stakeholders. Their suggestions was also taken on how employee motivation can be improved and in what ways strong relations can be maintained. With this motivation level of employees will be enhanced. This will lead to enhance in overall tesco productivity. However, reward system must be modified so that staff is given appropriate incentives. Tesco should start employee retention scheme in which benefits are given to them. It will be beneficial for tesco to retain their employees (Zareen, Razzaq and Mujtaba, 2015). Manager should also take initiative. They should improve their behaviour with employees. They must treat them with respect. Then, staff will also give them respect. In this way relations will be strengthened. Furthermore, conflicts will get reduced.


Analysis of case study


By analysing the case study it is concluded that tesco has faced issues of employee management. It has restricted tesco growth as strategies are not implemented properly. Along with this, individual goals are not achieved on time. It has also crated an environment where employees are finding it hard to survive. A feeling of fear is created among them. This has affected the overall departments of tesco. But the major impact is on production and marketing department. By this there has been downfall in their productivity and sales. Tesco is not able to retain them. This is creating poor image of company in the industry. The market share and product quality has declined. Due to this customer satisfaction has declined. They are now shifting to other brand to fulfil their needs.

Issue 1 Solution

This issue can be solved by interruption of trade union. They can force management to improvise their reward management system so that employees are treated properly. Also, management must involve them in discussion while deciding rewards and incentives. Moreover, certain rights must be provided to employees so that they can discuss it with management. Apart from this, tesco can take the help of experts in modifying reward management. In this changes can be made on how each employee performance will be measured with set goals. The system must be updated according to rule of government. For solving issue tesco management must analyse what are root cause of issues (Dutta, S.O.N.A.M. and Kant, K.R.I.S.H.A.N., 2015). Then, they must discuss it with employees so that it can be solved. Moreover, those who are responsible for creating issues must be fired. Also, necessary action must be taken against those who are involved in it. This will create positive impact on other employees mind. Furthermore, experienced executives must be hired so that proper structure can be formed. Stakeholder must be involved in this.

Issue 2 solution

This issue can be solved by tesco in several ways. There has been concern regarding how employees communicate with their superiors. In this it can be observed that structure is little complex. For this it must be made easy so that employees feel free to discuss with managers. Also, freedom must be provided to employees to communicate with top management. Beside this, manager should also take a step forward to discuss once in a month about what issues or problems employees are facing. It will help in creating better relations with them. Moreover, providing flexibility in structure will help in proper communication. Experienced executives must be hired so that proper reporting can be done. It will also help in listening to employees problems and issues (Hughes, McCulloch and Valdes, 2018). More will be the flexibility more comfortable employees will feel in coordinating. It will create strong relation between management and employees. Similarly, in this way reward management system must be improved so that employees are rewarded on the basis of their performance.

Issue 3 solution

This issue can lead to serious consequences so that it essential to stop discrimination practices in tesco. For this management of company first can develop strict polices regarding this. Then, policies must be monitored so that severe action can be taken against the person who are involved in this. Employees must be given rights to report any act of discrimination that is been practised. When any action will be taken it will increase confidence among employees to report it to management. Also, it will lead to reduction in those practices. However, there human resource must ensure that everyone is treated fairly (Essop and Hoque, 2018). It can be done by taking the feedback of workers. Besides this, HR is responsible to look after the matter related to discrimination. HR must inform this to management so that certain actions are taken. It will help in creating work place environment. Furthermore, employees will be treated well. This will automatically enhance their motivation. They will put more efforts in completing their goals. However, tesco will improve their culture. It will create a positive image in industry. Employee will become more loyal towards them.

Issue 4 solution

This is a very important issue that must be solved. Now, in power distribution each person must be assigned power based on his or her authority. Board of directors must be responsible for assigning power to employees, manager, etc. Apart from this, limitations of using the power must be set so that it gives an insight to them on to how much extent power can be used. Also, policies must be developed so that in case of misusing the power strict action can be taken against the person (Kiruja and Mukuru, 2018). It will help in providing equal rights to person. They will now use power within the boundaries. This will lead to effective taking of decision. Top management must monitor how decision are being taken. It will help them to guide them on where they are lacking. Employees must be given rights to report if any person is taking advantage of their powers.

Issue 5 solution

In order to solve the problem of improper training it is essential to implement the latest tools and equipments. Also, tesco must provide training with the help of new techniques. It will result in providing proper and effective training to employees. Moreover, manager in tesco must identify the strengths and weakness of staff. It will be beneficial in providing training accordingly. Basically, there are two common ways in this. These are on the job and off the job. Tesco manager must use them as per the requirements. By giving effective training to staff on the basis of their skills and abilities it will enable them to do work in effective way. In this way goals and objectives will be achieved in specified time period. They will feel motivated and when incentives and rewards will be given to them, it will encourage others to get those rewards. There are many benefits of providing effective training to employees. It also helps in increasing coordination among each other. Moreover, employees will be ready to take challenging task. In this way goals set will be high. Alongside this, the quality of service as well as product will be enhanced. In this way tesco will be able to increase satisfaction of customers. They can develop more variety of products. With this tesco can gain more markets share.

Issue 6 solution

The issue of job security must be solved in tesco. It is because it is affecting the overall performance of tesco. For this management must develop employee retention plan. In this they can include various things. Employee must be given proper rewards and incentives. This will make them happy. Along with this, they must be given achievement so they feel proud. Also, it will encourage others to get those achievements. This will automatically create a positive feeling among them. The rise in employee retention will reflect a positive image to other people who want to apply for job in tesco. An effective culture will help in attainment of goals with proper utilisation of resources. Furthermore, appraisals must be done from time to time. This will create a positive feeling among them. They will contribute more towards their goals. There will be no conflicts in tesco. Staff will ignore those and focus on their work. It will also help the new joinee to work with effectively. It will enable them to set their own targets. However, employees will negotiate with manager in case of any situation. They will try to solve conflicts themselves without the involvement of top management.


From this it can be concluded that tesco needs to revitalise their organisational culture in order to enhance employee motivational level. For this they must take proper action to do so. By following the solutions or recommendations, tesco will be able to motivate their employees. It will also help them to retain them and reduce conflicts. Besides this, by providing proper and effective training, manager will be able to evaluate and measure their performance. By giving effective training to staff on the basis of their skills and abilities it will enable them to do work in effective way. In this way goals and objectives will be achieved in specified time period. With this staff will be able to take more challenging task. A better work place environment will create a positive feeling all around. If all employees are treated equally, it will benefit in maintaining effective and strong relations with management. They will also be involved in decision making process where their ideas and opinions will consider as well. They will put more efforts in completing their goals. However, tesco will improve their culture. It will create a positive image in industry. Employee will become more loyal towards them.

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