Job Satisfaction And Employee Performance In Tesco

Factors Affecting Employee Job Satisfaction And Employee Performance In Tesco

Table of contents

Chapter 1: Introduction

1.0 Background to study

1.1 Background to Company

1.2 Research Question/Problem

1.3 Terms of Reference

1.4 Any historical aspect of problem

1.5 Research rationale

1.5 Summary of Relevant Theory


Chapter 2: Literature review

2.0 Introduction

2.1 Importance of Right workforce

2.2 Importance of employee involvement

2.3 Theoretical Framework of Job Attitude

2.4 Job Satisfaction

2.5 Employee Job Satisfaction Determinants

2.6 Job Involvement

2.7 Organizational Commitment

2.8 Job Factors and Job Attitudes

2.9 Present Situation

2.10 Why Job Attitude Is Important


Chapter 3: Research Methodology

3.1 Introduction

3.2 Research strategy

3.3 Research approach

3.4 Research timescale

3.5 Data collection

3.6 Feasibility


Chapter 4: Results and Discussion

4.1 Introduction

4.2 Individual Factors

4.3 Organizational Determinants

4.4 Rewards systems

4.5 Job satisfaction and employee turnover

4.6 Summary


Chapter 5: Conclusion & Recommendations

5.0 Introduction

5.1 Summary of Main Findings


Chapter 1: Introduction


1.0 Background to topic

Due to the high competition in the global market, there has been a great need for various companies to re-strategize their operation formulae to ensure success. There are various methods of improving productivity in an organization. Improving employees’ morale in a company enhances feel of ownership and satisfaction among employees which helps in improving performance quality. There are many factors that affect satisfaction of employees in an organization. The dissertation looks into the factors affecting the satisfaction of Tesco employees and how the overall performance of employees is affected.  Tesco has many challenges of integrating specific requirements of various employees.


1.1 Background to company

Tesco is a leading United Kingdom retailer headquartered Chestnut, United Kingdom. Tesco is among the largest retailer, as measured by the total revenues and the world’s second biggest retailer after Wal-Mart as measured by total profits (Potter & Mahlich, 2011). Currently, the retail giant has a firm foot print in Asia, Europe, and North America. In the UK alone, it enjoys a 30 percent share of the local market. It also enjoys market dominance in the Republic of Ireland, Malaysia and Thailand (Deloitte, 2010). Since 1919, when the company opened its first doors, it has rapidly diversified its market share courtesy of its aggressive marketing strategies of responsive product development and differentiation that is built around modern information technology innovations such as virtual selling. Today, the company sells a wide range of merchandise including groceries, electronics, books, clothing, fuel, music and even financial products.


1.2 Research Question/Problem

The research aims at examining the factors affecting employee job satisfaction and relationship among the factors and the performance of employee in Tesco.


1.3 Terms of Reference

  1. The objective is to find out the factors affecting the performances of Tesco’s employees and how the overall performance of the company is affected.
  2. Through the research, various methods and techniques employed in Tesco in retaining their employees are determined. The limitations as related to employee satisfaction and retention are also highlighted.
  3. The research provides recommendation based on the analysis of the steps and strategies Tesco should employee to retain and satisfy their employees.


1.4 Any historical aspect of problem

According to Diaz-Serrano & Cabral (2005), to ensure optimal productivity, a company has to ensure that their employees are satisfied with their job descriptions and positions. There have been different techniques and methods that have been used by different companies to satisfy their employees. As stated by Diaz-Serrano & Cabral (2005), workforce has great desire for social recognition compared to other factors affecting satisfaction of employees. A better working condition motivates employees and thus enhanced productivity and cooperation between employee and management. Additionally, even though there are different methods that an organization can use to retain and satisfy its workforce, the applicability and efficacy of the methods depends on the company. According to Miller (2007), regardless of the methods a company employs, the methods should be one that takes care of components that affect the social components of workforce. This is an indication that for any method to excel, it must incorporate and affect communication, sense of ownership and relationship between management and employees.


It is important for Tesco to investigate the factors affecting employee satisfaction thoroughly as a crucial aspect and procedure of business survival and growth. Through employee satisfaction analysis, the company not only gain knowledge of the employee satisfaction drivers but establish techniques of employee retention and having a competing edge over other companies. Knowledge of the employee satisfaction factors is a strong backbone on which a company can base its employee retention. This is when the company knows the satisfaction drivers its workforce. According to Cooper (2008) and Pink (2009), the knowledge of factors affecting employee satisfaction helps in strengthening the intermarriage of different variables in a company regarding employee’s satisfaction and retention.


1.5 Research rationale

Employees are considered as one of the important aspects of an organization and improving their morale improves their performance. Understanding people from different backgrounds is challenging especially to managers from different origins where they have different life experiences. A lot of wisdom is required of the managers dealing with employees from different nationalities to link the needs of different people and improve their productivity while maintaining low employee turnover.


The researcher believes that the research will improve knowledge to managers at Tesco especially in the areas of human relations. The research will be helpful in improving employee morale and understanding different needs of employees working in a diversified environment.



1.6 Summary of Relevant Theory

Various studies have noted that satisfaction of workforce depends on behaviors of management and employees themselves. There is a need to understand how consumers’ and employees’ behaviors, geographical location and gender affect overall performance of a company. However, it must be noted that behavior of workforce is not only the factor and that it has many intervening variables which have to be considered.


For example, suppose a business is not willing to increase employee loyalty, there are lower chances of its success. On a similar basis, a company which wants to make sure it satisfies its employees has to ensure it examines their behavior with respect to changes in service quality and market approach techniques used may also not be planning to be successful.


According to findings of Lin (2007), there exists a strong positive correlation between service quality and workforce satisfaction in most companies. Form the 134 respondent in Lin (2007)’s study, nearly 92% showed a grater satisfaction when perceived the services offered to be of high quality. Refrain to marketing strategies, a significant proportion of respondents, nearly 83%, showed that marketing technique used by a company is important in determining employees’ satisfactions and retention.


One study carried out in Germany (Bryan and Locke 1967a), indicated that there is a connection between job satisfaction of employees and consumers. Employee satisfaction which is related to enhanced employee loyalty, employee retention, continuity and finally increased productivity. These findings are also similar to Bryan and Locke 1967a who state that employee satisfaction and brand loyalty are related. This indicates that that greatest care must be considered when attempting to develop satisfaction strategies (Lin, 2007).


Chapter 2: Literature review

2.0 Introduction

The second chapter, literature review entails an investigation of past research and articles and explanation of the involved concepts in regard to jot attitude and employee job satisfaction. Literature review covers various topics. The first section covers the significance of employee retention and performance engagement. Role of Tesco’s philosophy and culture in creating and engaging workplace environment is also discussed. The theoretical framework of this study maintains a top-down order that begins with the current business environment and ends with a review of the issues associated with leadership, motivation, rewards, and human resource management.


2.1 Importance of Right workforce

The volume of research on employee job attitudes reflects their importance to organizations in terms of identifying satisfaction, estimating loyalty, and reducing turnover (Knoop, 1995; Porter, Steers, & Modway, 1974). The value of examining performance in terms of manufacturing or assembly has been an important area of research, in which job attitudes has a direct correlation on job performance (Anderson & Mohr, 2003; Bettencourt, Gwinner, & Meuter, 2001). Job performance on the other hand, is also critical especially on the field of treatment services to the victims of natural disasters.


As of late, no studies are known to have been conducted on the job attitudes of employees providing disaster relief services. This study intends to explore the possibility of enhancing the state of employee engagement and retention in the disaster management sector (DMS), and also to explore the ways to attract quality employees to the DMS. Since this sector demands a wholehearted commitment from the employees to deal successfully with one of the noble professions in the world.


2.2 Importance of employee involvement

The importance of employee involvement and interaction in supporting disaster victims (Beck & Franke, 1996), who are immediately confronted with emotions that include fear, a profound sense of loss, and anxiety cannot be understated (Albano, Causey, & Carter, 2001). Disaster victims face life-altering injury and death resulting from natural disasters (Beck & Franke, 1996). The trauma of experiencing a natural disaster may result in extreme stress-related disorders such as posttraumatic stress disorder (Miller & Kraus, 1994).


The aforementioned consequences of disasters clearly show the gravity of the jobs associated with providing relief, and they hint at the challenge of attracting and retaining talented and committed employees in the DMS. Higher remuneration cannot be the sole driver of engaging, attracting, or retaining quality employees in this sector; prospective employees with qualifications can easily choose risk-free jobs instead. Thus, the DMS needs to strike the right chord in employees to ignite the missionary approach in them.


A brief explanation of the activities of the American Red Cross (ARC) corroborates the fact that the DMS truly needs committed and motivated workers more than anything else (ARC, 2006). The ARC’s disaster relief employees are charged with providing assistance and meeting victims’ immediate emergency disaster-caused needs, where they must support the ARC’s mission and extend every available courtesy. In response to these natural disasters, the ARC deploys volunteers to provide emergency services to victims.


The magnitude of devastation can sometimes leave relief workers wondering where to start. During the 2005 hurricane season, Hurricanes Katrina and Rita devastated the Gulf Coast of the United States. Hurricane Katrina flooded neighborhoods and literally destroyed part of the state of Louisiana, particularly the city of New Orleans, by killing more than 1,193 people and destroying most of the human made structures (Hine, 2005). Hurricane Rita followed Katrina weeks later, further damaging what was left in that region and causing more power outages and evacuations.


The aforementioned examples highlight the gravity of disaster management and show the levels of dedication and commitment required to meet such challenges. Therefore, researching the attitudes of employees in disaster relief work may provide valuable information to first responders. The groundbreaking work by Steers and Porter (1979) underscored the importance of work and motivation. Bettencourt et al. (2001) also supported this premise. According to Steers and Porter, The concept of the organization has long symbolized the efficiency, effectiveness and rational allocation of resources for tasks to be accomplishment (p. 555).


Employers may perceive that their employees are pleased or at least content with their jobs based on performance (Wright & Cropanzano, 2001); compliance with the rules of power sources that may reflect what employees are experiencing (Koslowsky et al., 2001); and low employee turnover rates (Spillane, 1973). Employees also may formulate perceptions of their organizations based on their employers’ concern about, commitment to, and appreciation of their employees (Brief & Weiss, 2002; Hershberger, Lichtenstein, & Knox, 1994; McAllister & Bigley, 2002) and their consumers (Anderson & Mohr, 2003; Bettencourt et al., 2001).


A characteristic of company loyalty and organizational citizenship behavior is reflected in the employees’ representation of their organizations to consumers. Bettencourt et al. (2001) asserted that “contact employee participation in organizational citizenship behaviors is basic to a company’s ability of meeting changing employee needs (p. 30). Job satisfaction, job involvement, and organizational commitment are components of the attitudes descriptive of the workplace environment. These attitudes affect job behavior and can be instrumental in the level of employee output.


Job attitude is the outcome of the collective influence of several factors that include organizational philosophy, leadership behavior, motivation and reward systems, and cultural and demographic influences. These factors are dispersed among three spheres of the workplace: company dimensions, job dimensions, and payment or compensation system.


2.3 Theoretical Framework of Job Attitude

Organizations generally value employee loyalty and dedication (O’Driscoll & Randall, 1999). Organizational behavior research over the past 15 years has resulted in empirical studies involving job- and work-related attitudes (Steel & Rentsch, 1997; Taber, 1991). Specific focus has been applied to employee job satisfaction (Hart, 1999); job involvement (Brown, 1996); and job commitment (Shore & Tetrick, 1991).


Job involvement, often referred to as job commitment, has been associated with organizational support (O’Driscoll & Randall, 1999). The constructs of job attitudes and job involvement have been paired in studies of research stability (Steel & Rentsch, 1997); commitment and support (O’Driscoll & Randall, 1999); and organizational citizenship behaviors (Bettencourt et al., 2001; Moorman, 1991; Organ & Konovsky, 1989).


Job-related attitudes, similar to attitudes in general, are derived from individual perceptions. Individuals can formulate perceptions according to their thought processes or outside influences (Elbert, Seale, & McMahon, 2001). Employers may perceive that employees are pleased or at least content with their jobs based on performance (Wright & Cropanzano, 2001); compliance with the rules of power sources (Koslowsky, Schwarzwald, & Ashuri, 2001); and low turnover rates (Spillane, 1973). Employees may also formulate perceptions of their organizations based upon their employers’ concern about, commitment to, and appreciation of the employees (Brief & Weiss, 2002; Hershberger et al., 1994; McAllister & Bigley, 2002) and consumers (Anderson & Mohr, 2003; Bettencourt et al., 2001).


A characteristic of company loyalty and organizational citizenship behavior is reflected in the employees’ representation of the organizations to consumers (Bettencourt et al., 2001). Thus, research on attitudes is important because it contributes to job behavior. O’Driscoll and Randall (1999) provided an example of the importance of understanding job attitudes and the ways in which they affect job behavior. Job-related attitudes such as job satisfaction, job involvement, and organizational commitment are general representations of distinct constructs (Brooke, Russell, & Price, 1988).


2.4 Job Satisfaction

According to Paul (1989), features of job satisfaction can include pay, security, working conditions, need for autonomy responsibility, or accomplishment.


Wright, Cropanzano, Denney, and Moline (2002) described job satisfaction as “a reflection of how desirable or attractive an employee considers their job to be” (p. 146). A generally positive attitude about one’s job is associated with satisfaction with one’s job. These needs are individualized and include the personality style of the employee.


The overall job satisfaction of employees warrants periodic review by employers in their efforts to maintain a valuable workforce. Employees can anonymously submit information regarding their needs and desires through surveys, which can provide an unobstructed view of employees’ needs and collect information without fear of retaliation from employers (Rogelberg, Fisher, Maynard, Hakel, & Horvath, 2001).


2.5  Employee Job Satisfaction Determinants

Employee job satisfaction still remains a very important topic in the facet of organizational behavior. The satisfaction of employees is the way they expresses orientation towards their jobs. It is as well the extent of connection that the employees have with their jobs. Other scholars regard it as the pleasurable emotions state that comes from one’s job appraisal, effectual reaction to one’s job and their attitude towards and the perception they have regarding their jobs. The other factors that job satisfaction is based on are; workload, attitude, physical condition, and even the career aspirations of employees. Well satisfied employees have positive attitudes towards their jobs and makes psychologically healthy community.

Realization that a satisfied employee is highly likely to perform better than unsatisfied counterparts has made social scientists to attempt establishing the factors that lead to higher employee job satisfaction. The past consultations from the TESCO staff at every managerial level identified problems with consistency and literacy. The innovative skills that were introduced led to the analysis of the employees’ job roles and satisfaction. However, it is also important to establish the relationship that subsists between a particular variable and overall employee job satisfaction.  The problem is to evaluate if there is any relationship between gender and overall job satisfaction, age and overall job satisfaction, tenure and the overall satisfaction of the employee, position and overall satisfaction, and lastly, the relationship between the extrinsic /intrinsic variables and the employee satisfaction. The study conducted by Delaney has shown that there is connection between demographic variables like gender, age, race, and education and job satisfaction. The more educated employees or older are being satisfied more than the younger and or with less education. However, this seems to have less or no impact on the TESCO’s employees’ job satisfaction.


Primarily, the function of TESCO is to export and import shipment on clients’ behalf in London and so has relation with employee satisfaction. In organizations where job satisfaction evaluation has taken place, results have been analyzed and mapped and this provided exact precise skills picture. Regarding the attraction ability, train and retain clients has promoted TESCO to explore ways of performance improvements. Workers’ turnover has decreased terribly since its launch. This has in turn produced important savings in training cost and recruitments.


Job satisfaction affects the life of individuals. Suppose the workers are satisfied with the jobs that they do, this covers all their lives. Workers who have high job satisfaction do have more positive behaviors and better psychological health in the organization than those who don’t. The study of TESCO (in the past) has explored the effect of gender on the employees’ perception of job satisfaction. The result indicates that there are many person variables that influence job satisfaction in various and complex ways. Trust is one of the factors that influence job satisfaction in TESCO.


Without the trust of the lack of trust among the members of organization, and between the managers and the employees, there may be a close down of the organizations operations. It is a crucial ingredient for the effectiveness of an organization.  Mistrust can result suppose there is a disconnection between the managers and the workers. This disconnection may lead to mistrust and job dissatisfaction and hence the difficulty in the attraction and the retention of the talents that the workers have. The important difference exists between the managers/supervisors and the non-supervisors on how they give an interpretation on the term “leadership” whether they actually give attention to the concern of the employees or not. How the organization handles gender and equality also contributes to employee satisfaction. There should be no significant difference that exists between the female and male employees.


All the employees are to considered and rated equal unless they differ in experience ort education. The significance is only in the attitude that the workers have towards the employers/supervisors. It has also shown that there is significant association between the genders, age group, and location of job, worker position, occupation and agency. The gender roles have been highlighted through these analyses. There are many factors that determine the job satisfaction of an individual in an organization (factors like salary, gender, administration and guiding among others).  It has been noted that the family ties also affects the job satisfaction on an individual in an organization.


2.6 Job Involvement

Job involvement describes the employees’ interest in specific job duties (O’Driscoll & Randall, 1999; Rhoades & Eisenberger, 2002). Employees who relate to their job tasks and value the importance of those tasks are generally concerned about their work. Healthy self-esteem, self-worth, and a positive work ethics can be considered antecedents to job involvement (Steel & Rentsch, 1997). Lodahl and Kejner (1965) asserted that job involvement is rooted in individual values according to job involvement theory. Job Involvement is another trait that has a significant impact on job attitude in relation to performance.


Brown (1996) and Kanungo (1979) described complete engagement in one’s work as a state of involvement and alienation as a separation from one’s work. Employee involvement versus alienation of the workforce is preferable to employers. The consequences can be extremely costly to employers if the workers in disaster response organizations were to neglect specific duties incidental to the care to victims.


2.7 Organizational Commitment

Meyer and Allen (1991) noted that commitment reflects the three general themes of effectual involvement to the company, perceived costs connected with abandoning the company obligations to remain with the organization. These attitudes are present in any organization. Research has distinguished between two types of commitment to an organization: affective and continuance. The level of commitment of disaster relief workers, as with other members of the workforce, can provide valuable information to service agencies in terms of the employees’ desire to remain (Andrew et al., 2002; Rhoades & Eisenberger, 2002).


  1. 8 Job Factors and Job Attitudes

Job factors generally are divided into intrinsic factors and extrinsic factors. Intrinsic factors include recognition and achievement, and refer to the work itself, whereas extrinsic factors include working conditions, coworkers, and compensation, and they relate to the environment in which the work in done (Spillane, 1973). Each employee holds opinions on both groups of factors and can rate their significance or importance, that is, one set of factors may hold more significance to one employee versus another (Spillane, 1973). Studies have been conducted aligning job attitudes with job factors. For example, some studies have reviewed the relationship between organizational commitment and turnover (Blau & Boal, 1987; Porter, Steers, & Mowday, 1974). These studies have reported distinctions in predicting turnover using the construct of organizational commitment.


2.9 Present Situation

The global recession has served as a notice of reorientation to all companies, which are now busy reorganizing their workforce and reshaping their employees’ attitudes to cope with the recession (Duff, 2009). Companies also are required to produce more for less, and they have to bank on human capital more than ever. Thus, the issue of employee engagement and retention has become more intense because most companies now cannot afford to pay more to attract or retain quality employees, nor can they afford to lose talented employees with experience.


From the employees’ perspective, it is difficult to work more for less, especially because of the fear of losing their jobs or the downgraded state of the market. Yet the competition, which is actually a struggle for existence in disguise, has become intense. The entire global trade circuit is experiencing confusion while trying to identify the right moves to rejuvenate employees, the market, and the business. Market analysts also are in a quandary to offer any bold solutions. A professional suggestion would corroborate this view (Suster, 2010).


According to Brown (2008), director of HR services at PriceWaterhouseCooper, companies need to review and rectify four areas. Considering a pay increase for the performers, Brown stated, “The main question is how to link reward with performance, and not whether to link it” (p. 22). As for the issue of equal pay, Brown suggested, it is important to make sure salary differences are explained (p. 22), thereby identifying the need to eliminate pay disparities. As for effectiveness, Brown asserted that it could be an important tool to reduce the cost and increase the productivity.


Brown’s (2008) suggestions seems confusing because it is doubtful whether companies are in a position to reward the top performers or to maintain a policy of equal pay, which may result in more spending. If the companies are not in a position to cover the first two issues, they naturally would not be able to enhance the effectiveness of the employees, if one ascribes to the common concept that money plays a central role in enhancing the effectiveness of employees. Otherwise, Brown would have suggested different ways to enhance the same.


Observers such as Wellins (2008) have commented that it should be the responsibility of the employees to become more engaged amid this crisis (i.e., the economic downturn) and that their leaders should support them. These suggestions (Ulrich, 1997) are almost directionless because the desired job attitudes of the employees primarily are a reflection of the collective performance of the management, leadership, and the HRM department. Therefore, such equivocal prescriptions and comments lead to one conclusion: The issue of getting more productivity from employees at less cost requires more insight than previously thought. Therefore, Wagner and Harter (2006) fathoming the significance of employee engagement and retention, this study reviewed some literature that was relevant to the topic.


2.10 Why Job Attitude Is Important

Kahn (1990) asserted that employees are more satisfied when they find themselves voluntarily engaged in their work. This mental state actually contributes to the profit of an organization in more than one way. For example, happy employees develop more creative thinking or seldom are absent from work. Wagner and Harter (2006) added another vital dimension to the aforementioned state. They noted that happy employees experience fewer job-related injuries. Thus, from this perspective, job attitude benefits the companies.







Chapter 3: Research Methodology

3.1 Introduction

This chapter entails an elaboration of the manner in which data for analysis was collected, arranged, sorted and analyzed in order to generate information for formulation of conclusions and recommendations. Data relevant to the aspects of employee job satisfaction at Tesco  was collected from secondary sources and analyzed to help in evaluating various aspects of employee satisfaction at the Tesco , Thailand. These models are deemed sufficient to ensure reliability of the responses and the outcomes of analysis.

3.2 Research strategy

In this study, the research applied qualitative research strategies in order to capture all aspects of the data collected. Through this model, hypotheses are tested in order to assess the impact of variability in the data. The qualitative approach helped in the examination of the current organizational elements that would impact the employee job satisfaction while exploring the various factors that may act as drivers to the satisfaction of employees at the Tesco  outlets. By evaluating the aspects in this format, it was possible to come up with or propose strategies to be adopted by the Tesco organization to ensure utmost satisfaction of the employees and also make recommendations for future research where a gap is deemed to exist.

The research design for this study is of the case study type, and Tesco  is the subject of the case. Ayelet et al (2008) state that the primary concern of such studies should be to find out “what is fit for a particular setting or case under given circumstances”. By conducting the employee job satisfaction research, the study attempted to assess the best method of handling the employees to ensure maximum satisfaction hence maximum productivity.


3.3 Research approach

The study takes qualitative approach was to achieve the desired objectives. It is only questionnaires that were employed in this research. The qualitative approach was to help in the examination of the current job-related demographic factors. Various factors that act as drivers to the compensation strategies adopted by the organization were explored. This method was appropriate because the research aims were to examine the employee job satisfaction in Tesco bearing in mind the diverse nature of the contemporary workforce.


Random sampling was used whereby questionnaires were issued at random to people working in Tesco. This was with expectations of ensuring that each person in the organization is accorded similar chance of participating in the research.


For the part of the questionnaire, the study intended to use an introductory letter to clarify what the research study was all about and give a clarification of the estimated or approximate duration of the interview. The letter was also be an opportunity to explain the purpose of the study, assure the respondents of confidentiality, and emphasize to them that contribution is voluntary. Two types of questionnaires that capture all that the researcher would like to get from the respondent were designed and several copies produced. A different questionnaire was to be administered to management.


The questionnaires were sent three days after sending the introduction letters (Kacel et al., 2005). This was to give sufficient time for the employees to make a decision to participate in filling the questionnaire or not. The questionnaires were numbered and employees were either choose to write their names or not. Where probing was necessary, the researcher will first asked for employee’s permission to do so.


There are various advantages of using questionnaires. Caldwell (2003) states that qualitative research is targeted at comprehending human behaviors and reasons that govern those characters. The why and how of decision making are investigated by qualitative research design. In qualitative research, smaller samples are mostly required as compared to bigger samples (Balabanis and Souitaris, 2007).


Qualitative data gained from questionnaires helps the research to analyze information in much less time as compared to interviewing people. This further helped the researcher to come up with feasible conclusions relating to employee job satisfaction in Tesco. With the confidentiality of the information, respondent will also feel free to provide sensitive information which they could have not provided through interview. One disadvantage of questionnaires is that it does not allow room for further probing. It also becomes disadvantageous when the respondent fills irrelevant information.


3.4 Research timescale

November-December 2012: collecting information related to the research and writing a work plan for the entire project proposal.


December-January 2012: writing introduction on the selected research topic and collecting the secondary materials in dealing with employee satisfaction. It is during this period that literature review will be written. All the relevant materials will be collected either from internet, journals and books. Preference will be given to the materials form Tesco as they directly touch the company’s performance and employees.


Late January 2012: writing the methodology and justifying the selected research methods. Determining relevant data collection methods based on the research topic and company (Tesco).

Feb 2012: designing the questionnaires to be used for research. It is during this time that the researcher will familiarize himself with the Research Company and targeted respondents.


March 2012: Sending questionnaires to various company departments and employees. Collecting the questionnaires after two weeks and analyzing the collected data. Analysis based on the collected information will be carried out in March.


April 2012: Writing the research outcomes and recommendations for Tesco in regard to employee satisfaction. The recommendations are important as they will assist Tesco and other companies to adjust on their current employee motivation methods.


May 2012: writing the abstract, checking the completed paper, and submitting the entire research.


3.5 Data collection

The researched focused on qualitative data about the employees of Tesco. The questions were based on factors that influence employees’ morale working in the organization (Tesco). Questionnaires were designed with board members to understand the overall employee satisfaction in all subsidiaries of the organization and other factors affecting international relations between employees. The researcher identified the strategies being adopted by the management to understand specific needs of different employees from different cultural backgrounds. Data from employees about how they think managers influence their morale, how they feel when their morale is low and how this influences their performance, how they feel when their morale is high and how this influences their performance, what they feel when a manager behaves in a way that increase and decreases their morale were collected.


3.6 Feasibility

Data collection from the organization will be possible since the author has accessibility with the management teams in the company. Access to data required in the research will be possible since permission has been granted by all the management staff of the company. The management team has promised to cooperate in making the project a success as there are many benefits to be accrued from it. Respondents to be interviewed from the organization have responded positively and a smooth process of data collection will be possible.


The author has the required expertise to extract necessary data from the organization as well as from the employees. Direct access to data relating to human resources from different subsidiaries of the company is possible; hence analyzing different aspects of human resources from the different countries where the company operates will be done efficiently. The data to be used will relate to a three year period before the date of conducting the research.


Chapter 4: Results and Analysis

4.1 Introduction

Improving employee morale benefits all stakeholders of an organization. The results of boosting employee morale are increased loyalty to the jobs allocated, high rate of attendance at work, and improved productivity (Bruce, 2002, P.45). Employees tend to become efficient when they have high morale and they reduce costs related to low morale. Achieving a high level of employee morale is attained through several methods. Money is not the only motivator since employee morale is affected by both monetary and non-monetary factors. Managers must be interested in the welfare of their employees and appreciating every effort being made by them towards achieving the organizational goals. Personal experience with all employees is required to improve understanding about their specific needs. Employees are motivated to work in environments which meet their needs and they will perform better in organizations with better mechanisms of satisfaction (Gunsch, 2010, p. 52).


The project established there are two main categories of employee job satisfaction determinants. One of the broad categories comprises organizational determinants and the other comprises individual determinants.


Employee satisfaction in Tesco Company

Tale 1.0 shows the overall level of employee satisfaction in Tesco

Factors influencing job satisfaction Mean
Working conditions 62%
Pay and promotion 60.4%
Fairness 60.4%
Job security 61%
Relation with Co-workers 66%
Relation with management 56.2%
Average 61%


In connection to the working conditions, promotion and payments the research revealed that employees are not happy with their current conditions.



4.2 Individual Factors

Individual determinants of job satisfaction are factors that are either biosocial or relate to the individual’s personality. These factors provide an opportunity for the organization to satisfy the individual employee by satisfying the employee’s individual motivational needs. The position of the individual employee in the organization has been generally associated with the level of satisfaction of the individual (Green & Heywood 2008). In addition, literature indicates that on general perspective, the higher the position, the higher the level of satisfaction. One explanation that has been attributed to this relationship is that when an individual holds a higher status in the organization it implies that the individual has better working conditions as compared to others. The rewards the individual gets while holding a higher status are better than those received by the lower level individuals are.


Age of the Employee

Literature provides evidence that age and employee job satisfaction exhibit direct linear relationship (l-Aameri 2003). Organizational change has made the long-term workers to develop feelings of being not being needed in the organization. This especially goes with the advent of increased mergers and downsizing. Thus with introduction of such changes in the organizations, the long-term feel less satisfied with their jobs while the younger employees feel satisfied with their work (Kacel, et al 2005).



Job satisfaction among doctors and nurses has been studied in the recent past (e.g. Quinlan et al 20009) in relation to gender. Quinlan et al (2009) while carrying out an investigation into the employee job satisfaction among the Russian physicians to establish the relationship between work attributes and job satisfaction sought to determine if gender has any relationship with the job satisfaction of these physicians.


The findings of the study revealed that on overall scale, male physicians exhibited higher job satisfaction than their female counterparts. The study also established that the job satisfaction of the Russian physicians who work in hospitals showed lower job satisfaction as compared to their counterparts employed in polyclinics (O’Leary et al 2009). In relation to other facets that relate to job environment, female physicians demonstrated more satisfaction in their relations with clients and coworkers than their male counterparts did. The study also found that a majority of physicians are dissatisfied with management and time constraints.


4.3 Organizational Determinants

The Leadership Factor

Leadership factor includes supervisory behavior and style. Research has shown that employee job satisfaction is bolstered when they perceive their supervisor to be competent. Such a supervisor is therefore perceived by the employees as taking keen interest into their best interest and accords them respect and dignity.

The supervisor that takes keen interest into the welfare of the employees and provides them with appropriate advice is one that employees would wish to identify with. This kind of a supervisor makes the employees feel more satisfied with their job.  This is according to the findings of a research study conducted recently by O’Leary and associates (2009) attempting to assess job satisfaction.


Working Conditions

Organizational policies and the work environment have been changing to align with the organizational dynamics and the rapid changes that the organization has seen over the past years. Change in the organization is one of the areas that the organization design experts have been keen of given that the change in the way of doing things dictates the working conditions as well and this finding is also supported by findings of Green and Heywood (2008).

To further corroborate the importance of working condition as a broad-based concept that determines employee job satisfaction, Quinlan et al (2009) added that it holds a defining position in the organization’s existence since it helps in managing diversity at work.


The Reward System

Saiyadain M. S (2003) contends that there is sufficient evidence, which suggests that an organizational reward system is a significant contributor and determinant of employee job satisfaction. The reward system includes the pay and other monetary benefits that accrue to the employees. Existing literature also supports that organizational reward system has a relationship to the employee job satisfaction, for instance, Barriball et al (2009).


The organization’s method of dealing with payment of benefits, how it distributes promotions, both determine the levels of satisfaction of the organization’s employees (Quinlan et al 2009).  Research studies have pointed to the positive relationship between fair reward system and the employee satisfaction. The employees perceive the fairness of the organizational reward system in terms of the level of the compensation they receive, and the method the organization uses to distribute the pay.


It has been found that employee job satisfaction increases when they are given flexible fringe benefits where they select their own benefits Saiyadain 2003).  This implies that the overall employee job satisfaction increases while at the same time boosting their satisfaction with the reward system.


Saiyadain (2003) adds that the top management in the organization is more responsive to the relationship between their satisfaction and the pay they receive. However, as indicated earlier from the findings of the Hawthorne studies, not all research studies have come up with evidence to support a strong positive correlation between job satisfaction and the pay or salary.  Even the Hawthorne researchers concluded after conducting their studies that the employee salary or monetary benefits are not necessary for the employee job satisfaction. Some other studies have also indicated that the two variables (salary and employee job satisfaction) do not have any relationship (Saiyadain 2003). Therefore, more research needs to be carried out in this area as the already available literature does not offer sufficient evidence for drawing up a conclusion.


4.4 Rewards systems

Rewards systems adopted by multinational companies must match the specific economic conditions in the countries they are established. It can be argued that rewards are the benefits which employees accrue from the organization. And when creating the employment contract between the employees and the organization; the package of rewards may provide a clear understanding about the benefits to be obtained for each activity done (Kotelnikov, 2001, p. 80-82). Stating that, the management may change the reward strategies according to prevailing conditions in each country.


Management uses different strategies to motivate their employees by the use of different reward strategies. They use monetary and non-monetary strategies to improve performance of employees. Monetary rewards include promotions, increment in wages, paid leaves, hospital allowances and others. Non-monetary rewards include thanksgiving for improvement in workplaces, recognition by top management and others. Management improves employee morale and encourages workers to improve their performance when they create good reward incentives within the organization. Managers need to be good leaders so that they can integrate all the needs of employees as well as understanding particular characteristics of employees (Kotelnikov, 2001, p. 81).


Understanding the cultural aspects of all employees is important to be able to understand their needs. “Organizational culture may be generally described as a set of norms, beliefs, principles and ways of behaving that together give each organization a distinctive character” (Willcoxson and Millett, 2000, p. 32).ultinational organizations operate in different cultures and the management may have to understand the cultures of each country they are operating in. However, many companies located in diverse cultures have failed due to failure to adopt better strategies to handle the cultural differences of the employees they operate with. Competitiveness of organizations in global markets depends on the ability to understand different cultures and integrating culture in products manufactured by the company.


Open and honest communication is required of managers and employees to create trust between all stakeholders of the organization. Micromanagement of employees is required especially where large number of employees is being controlled by a few managers. This provides opportunities of splitting and grouping employees according to how closely related they are with each other (Wiseman & Shuter, 1994, p. 62). In an organization, employees have different personalities, attitudes, responsibilities and views.  Employees require different leadership and motivation styles to ensure successful organizational operations. There are common elements required to be used by leaders irrespective of the leadership style adopted. These elements are grouped as either hygiene factors or motivational factors. The overall goal of the leader is to create job satisfaction among the employees. This strategy aims and increasing productivity of the human resources to an organization (Saari & Judge, 2004, p. 12).


Motivators increase the efficiency of employees. For example, Hertzberg provided five motivators in the workplace: recognition, achievement, advancement, responsibility and the work itself. He differentiated motivators and hygiene factors by suggesting that motivators aim at achieving job satisfaction in the long run but hygiene factors are focused on short term satisfaction of the employees (Fisher 2000, p. 321).


4.5 Job satisfaction and employee turnover

In addition to increasing productivity, job satisfaction reduces employee turnover and eliminates counterproductive behavior. There is a positive correlation between job satisfaction and employee performance. Improving the welfare of employees boosts their morale and increases their output. Dissatisfaction among the employees affects the performance of public companies and has an impact on the financial position of such organizations. Leadership is a factor which has influence in the morale of the employees. Employee-centered leadership behavior contributes more to job satisfaction and improved performance compared to the job-centered leadership behavior. The roles of leaders and their subordinates need be clearly established to avoid conflicts in the performance of duties (House, 1971, p. 211).


Multinational organizations operate in many countries. Over the last decade, many organizations have explored operations in the global markets where multinational operation strategies are being adopted as a mechanism of improving profitability. Globalization has been experienced in many countries and many investors are focusing on international markets. As globalization continues to take place in the global markets, managers are required to adopt better strategies to manage their workers (Cooke, 2003, p. 65).


Managers have been concerned about the morale of employees for a long period of time especially at the international scene. The morale of employees is affected by many factors and managers are concerned about effects of low employee morale on performance of their jobs. Employee morale also affects their turnover rate in an organization. High employee turnover has a very high cost to the organization especially when recruiting new employees. In addition, there is a higher cost of productivity when employee turnover increases. According to go2 Tourism HR Society (2010, para. 1) “compared to motivated employees, disengaged workers are less efficient, miss more workdays and cost organizations thousands of dollars in lost productivity. Keeping employee morale high is one of the best things you can do to instill loyalty and maintain productivity.”


4.6 Summary

There are several depended factors which affect employee morale; and they relate to the individual employee or the workplace environment. Such factors include; employee training program, compensation, organizational policies and practices, recognition, performance evaluations and others. Many managers fail to adopt different employee retention strategies when dealing with people from different nationalities. Multinational organizations have a great challenge of integrating specific needs of different employees from different countries. To improve the morale of their employees, many managers use remuneration as the only factor to regulate and fail to recognize other factors affecting employees especially at the international level. Employees like being treated differently and that better payment is not the only factor that employees consider as a motivator (Gunsch, 2010, p. 54).


Chapter 5: Conclusion and Recommendations

5.1 Introduction

The findings of this study indicate that employee job satisfaction still remains a very important topic in the facet of organizational behavior. The satisfaction of employees is the way they expresses orientation towards their jobs. It is as well the extent of connection that the employees have with their jobs. Other scholars regard it as the pleasurable emotions state that comes from one’s job appraisal, effectual reaction to one’s job and their attitude towards and the perception they have regarding their jobs. The other factors that job satisfaction is based on are; workload, attitude, physical condition, and even the career aspirations of employees. Well satisfied employees have positive attitudes towards their jobs and makes psychologically healthy community.


5.1 Summary of Main Findings

The research findings demonstrate the importance of establishing proper leadership styles at the workplace to ensure that employees are properly motivated by their leaders and management. Alongside the leadership factor, the organisation must establish good working conditions that encompass health and safety factors for the employees.


Stress is another factor that affects employee job satisfaction. Job satisfaction diminishes when negative stress is incessantly high and jobs that meddle into employees’ private or personal lives contribute to high level of negative stress since they are stressful and great source of worry to them. To alleviate such stress that lead to low job satisfaction, appropriate actions need to be undertaken which include:

  1. Encouraging a balance of work and employees’ private lives
  2. Even and fair distribution of work within the work teams
  3. Constant review of procedures followed at work so that any unnecessary bureaucracy is done away with
  4. Managing and limiting the number of disruptions at the workplace
  5. Proper utilization of exercise breaks at work so that employees usehem to release stress

Leadership at the workplace impacts significantly on employee job satisfaction. Previous inquiries into employee job satisfaction indicate that when managers of an organization are good leaders the employees of that organization are more satisfied. Managers that encourage the employees and motivate them to do better are desirable. In addition, they should strive for excellence on their own side too. These features therefore require that the managers be well trained since leadership is an intermarriage of behavior and attitudes and therefore it can be learned through training. The managers should trust-worthy people and inspiring.


Fair rewards for the work done by employees are just as important in achieving job satisfaction. This means that when rewards or reward systems are being formulated consideration must be made as to the amount of effort employees put forth to accomplish a given assignment, the demands of a particular task and responsibilities of the employees. In order to ensure that fair rewards are used as a way to reach employee job satisfaction, it should be ascertained that the rewards are designed for genuine input to the organization. Consistency must also be maintained in the reward policies to avoid any double standards. Employees must be made aware of all the features of the wages for instance if the wages bear a competitive feature. Rewards should be diverse to incorporate other forms of benefits other than money.


Adequate authority for the employees has been identified as a good driver to job satisfaction. Therefore, the employees should have the authority and freedom to accomplish their tasks. Appropriate actions that have been cited as able to help an organization achieve this are:

Allowing employees to make decisions

  • Allowing employees to contribute in decision making especially those decisions which will affect them
  • Establishing work goals though allowing employees to determine the way they will attain them
  • Identification of decisions that make the best options in terms of value addition to the organization

Dedication that has been made in terms of working to establish the patterns in job satisfaction has led to revelation of clear patterns that are common to employees that are highly satisfied with their jobs. A workforce that is characterized by high job satisfaction has features that are common among the employees of the workforce. They believe that the institution they are working for will be satisfying in the long run.


Employees that have higher job satisfaction are also concerned about the quality of the work and are more productive than those who have lower job satisfaction. They have high commitment to the organization and their retention rates are also higher.


Realization that a satisfied employee is highly likely to perform better than unsatisfied counterparts has made social scientists to attempt establishing the factors that lead to higher employee job satisfaction. The past consultations from the TESCO staff at every managerial level identified problems with consistency and literacy.he innovative skills that were introduced led to the analysis of the employees’ job roles and satisfaction. However, it is also important to establish the relationship that subsists between a particular variable and overall employee job satisfaction.  The problem is to evaluate if there is any relationship between gender and overall job satisfaction, age and overall job satisfaction, tenure and the overall satisfaction of the employee, position and overall satisfaction, and lastly, the relationship between the extrinsic /intrinsic variables and the employee satisfaction. The study conducted by Delaney provided an insight into the connection between demographic variables like gender, age, race, and education and job satisfaction. The more educated employees or older are being satisfied more than the younger and or with less education. However, this seems to have less or no impact on the TESCO’s employees’ job satisfaction. A number of studies consulted also pointed toward a connection between employee job satisfaction and customer satisfaction. However, the connection seems to be brought out superficially since there is no study that specifically targeted the relationship between employee job satisfaction and customer satisfaction as a subject for research. For these reasons, a number of recommendations are made for future inquiry.

The proposed project raised the possibility for further research in:

  • The relationship between employee satisfaction and customer satisfaction at multinational companies.
  • Developing appropriate culture in multinational organizations to improve better understanding between all stakeholders.
  • The different leadership strategies that can be used to promote the morale of employees at multinational organizations


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Appendix 1

Employees’ Satisfaction Interview Schedule

The following questions are designed only for research purpose. The researcher has no intention to represent this information negatively in his paper. The information will be kept confidently. For the following questions, respondents should be asked to indicate whether they Agree (A), Disagree (D), Strongly Agree (SA), Strongly

Disagree (SD), or are Neutral (N).






  Agree (A) Strongly Agree (SA) Disagree (D) Neutral (N)
I am satisfied with the working environment of the company.        
I am satisfied with job location        
I am satisfied with the present working hour.        
I am satisfied with the existing salary structure of the company        
I am satisfied with the compensation I get & I think it matches with my responsibility        
I am happy with my work responsibilities        
I feel comfortable in carrying out my responsibilities        
I am satisfied with work relationships with the people around me.        
I am satisfied with various activities in the firm & love participating in them        
I am happy with your overall job security        
I am satisfied with the given right to put forward my opinions        
I am satisfied with the leaders in my workplace as positive role models.        
I am satisfied with the present performance appraisal policy of the company.        
I am happy with the recognition and rewards for my outstanding works and contributions        
I am satisfied and think I’ve been awarded right set of duties, as per my ability        
Fulfilling my responsibilities give me a feeling of satisfaction & personal achievement.        
I am satisfied with the leave policy of the company.        
I am satisfied employee assistance policy (e.g.- lunch & transport etc.) of the company        
I am satisfied with long term benefit & insurance policies of the company.        


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