Tesco Reward System Analysis

1.0 Introduction The chosen organization for this assignment is Tesco. Tesco began its business in 1919 by Jack Cohen who is a market stallholder selling groceries in London. It was formed out of a merger with T.E Stockwell and the first store was opened in 1929. It then expands across the world and now has over 2,200 stores including hypermarkets and Tesco Express outlets.(Tesco.com, 2014) Tesco originally specialised in food and beverages and now offers a wide range of products including consumer electronic, clothing and increasing range of services such as telecoms, internet, health insurance and financial services.(Marr, 2009) Tesco require staffs that are motivated, flexible and well-trained to recognize customer needs in order to support

The system begins when starting of the job and ends when the employee leaves the organization.(Heathfield, 2014) It is used for the purpose of communicating organizational objectives and goals, tracking and evaluating individual and organizational performance results, reinforcing individual accountability for meeting the goals.(Hr.commerce.gov, 2014)

Reward system is designed to determine the amount of compensation given to individuals in an organizational in order to fulfil their satisfaction and increase motivation in contributing their effort.(T. Schmidt, 2006) Figure 1 – Performance Appraisal Process

Performance Management in Tesco

Tesco has their unique way of performance management in different management departments which is through a Steering Wheel designed by Tesco as shown in Figure 2. Every single quadrant represents the highlighted function and area for Tesco which aim to perform well. Every quadrant further divided into segments which shows the key performance indicators set for the organization.(Tesco Corporate Responsibility Review, 2005) They are regarded as demanding by Tesco but at the same time achievable by

Besides that, he also concluded that high level of group cohesion is created by intensified interaction and cooperation.(Mayo, 1946) The Mayo Theory by Elton Mao is a theory of motivation which examined the social needs of the employees. In the current market, salary alone is not sufficient to keep employees motivated to perform their best abilities, the social needs is one of the main consideration that should be taken. This theory recommends that the employers of Tesco should treat their employees with care and humane fashion that brings out the interest in the individual in order to make them perform their best work.(Silver, 2014) This will not just improve the communication between departments but also makes job less