Motivational methods are very important in an organisation. This blog is about responses from staff to request in newsletter about how effective Tesco is using these methods.
In this blog post, I will talking about how Tesco are able to use financial motivational techniques, the financial method that I will be looking at is commission that Tesco's offer to their employees.
Commission: Commission is a type of pay that employees may receive. It is an amount of money that an employee will receive for completing a certain task, this task, as an example, could be for selling x amount of goods. Not only that, but it can also be paid as a part of percentage the businesses sales, or each department sales.[1] The benefits that we, as employees are able to get are that there are discounts, for all of Tesco's different facilities, such as pharmacies, Tesco's mobile and back. They are some of the various instances, you are able to save a lot of money, as well as, we are able to get cashback, when we shop, which directly links to commission.[2]
The benefits of this is that with the payroll, the cost of what the employee is paid can relate back to what the business has actually achieved, in terms of selling, rather than how much they have made. Another advantage that Tesco's may consider with commission is if we look at an employee's point-of-view it can allow for them to work harder, meaning that there will be better performances by us, the employees, sales will raise and we could earn up a huge amount of money.[3] Earning a bit for how much we work, means that we can be motivated because, if we carryout some work, we will be earning more for doing that work.
The disadvantages that this offers is that the employees may not actually carry a task as they should, so they make it simpler to actually earn the money, such as lying to a customer about what a product can actually do. Some people may earn high commission based on a team’s performance, without actually telling what they need to do. It not easy to think out commission that is fair to each individual, demotivating customers.[4] This can affect motivation because having too much work, and looking at commission, it can make us too stressed out, affecting the way in which we are motivated.
The way in which we are able to improve this, is through doing it to everyone, everyone withing the business works hard, to keep the reputation high. However, there are some areas in which Tesco's need to improve. The method is the way in how we are able to receive commission. this is because they need to demonstrate how much we are able to earn with it. Commission is an amount of money we are able to get back, with how well we work, improving; by telling us all the work that we need to carryout, will enable us to be motivated.
Piece rate is the definition of getting paid for each unit you produce at a fixed rate. In other words, it is getting paid for what you do, not how long you work for.
The advantage of this is that sometimes the employees will be more efficient in how they work as they will want to produce more work for more money, if they slack off they will know that they are not going to get paid as much, in comparison to how much they would get if they worked hard.
A disadvantage is that the employees may pay much more attention to how much work they produce and not so much the quality of work they produce. The quality of the product may be poor, however there will be a lot of it, which is useless as the customers will not be satisfied with the poor product.
This impacts motivation as employees may be put off by how much work they have to do for their pay and the may not like the job so much because they could feel like they are being used if they are not paid sufficiently for their time.
This relates to Taylor's theory. Taylor believes that "workers should be given one repetitive task so they can learn to master it ", "Managers should give orders and closely control workers" and "Workers should be paid per item they produce" - which is known as piece rates.
To improve this method, you could potentially offer the employees more money per piece of product they make.
Job design refers to the theory that there is five core work characteristics, and these include skill variety, task identity, task significance, autonomy and feedback. It says that all of these characteristics will provide a psychological form of positivity and will therefore lead to job satisfaction, motivation and most importantly work effectiveness. The things that come under job design are; job enlargement, job rotation, job enrichment, working in teams and also empowerment. Job enlargement is where staff are given multiple tasks to do that are all of similar difficulty, and therefore will make these employees specialists in these specific areas of work. Job rotation is where staff are switched between different tasks in order to reduce monotony, which in other words means to allow a wider range of variety and interest to reduce repetition. Job enrichment is where staff will be given more interesting and also more challenging tasks to complete, and this will be done so that they are able to expand on their existing skill set. Then there is empowerment, and this is where the staff are given the authority to make decisions regarding how they go about their work. All of these steps will make the employees feel like they are required at the business and this will lead to them feeling accomplished and motivated. The earliest attempt to design jobs came during the era of scientific management, and this was a philosophy which was based off of the ideas that Frederick Taylor presented, therefore meaning that job design links most closely with Taylor’s motivational theory. One of the biggest and main advantages of all of this is that it will all work together to relieve employees from boredom, and will also stop work from being to monetary, meaning that staff will constantly be learning new skills and therefore expanding her skill set.
The ways in which this could be improved in Tesco is through allowing even more employees to have job enlargement, as it will make them specialists in specific departments of work, and will then make them feel like more valuable members of staff. Also, the use of job rotation will give members of staff a wider skill set, as well as reducing monotony in the workplace as this can lead to staff becoming unmotivated. Job enrichment should also be introduced more frequently, and this will give other employees as well as myself yet another chance to expand on the current skill set that we have. These skills can also be transferable, which means that it can ultimately help us for the rest of our lives. Then for teamwork and empowerment, it is important to give us as trusted employees of the business the opportunity to prove ourselves, and in the process make us feel like even more valued assets to the organisation.
In this blog post, I will talking about how Tesco are able to use financial motivational techniques, the financial method that I will be looking at is commission that Tesco's offer to their employees.
ReplyDeleteCommission:
Commission is a type of pay that employees may receive. It is an amount of money that an employee will receive for completing a certain task, this task, as an example, could be for selling x amount of goods. Not only that, but it can also be paid as a part of percentage the businesses sales, or each department sales.[1] The benefits that we, as employees are able to get are that there are discounts, for all of Tesco's different facilities, such as pharmacies, Tesco's mobile and back. They are some of the various instances, you are able to save a lot of money, as well as, we are able to get cashback, when we shop, which directly links to commission.[2]
The benefits of this is that with the payroll, the cost of what the employee is paid can relate back to what the business has actually achieved, in terms of selling, rather than how much they have made. Another advantage that Tesco's may consider with commission is if we look at an employee's point-of-view it can allow for them to work harder, meaning that there will be better performances by us, the employees, sales will raise and we could earn up a huge amount of money.[3] Earning a bit for how much we work, means that we can be motivated because, if we carryout some work, we will be earning more for doing that work.
The disadvantages that this offers is that the employees may not actually carry a task as they should, so they make it simpler to actually earn the money, such as lying to a customer about what a product can actually do. Some people may earn high commission based on a team’s performance, without actually telling what they need to do. It not easy to think out commission that is fair to each individual, demotivating customers.[4] This can affect motivation because having too much work, and looking at commission, it can make us too stressed out, affecting the way in which we are motivated.
The way in which we are able to improve this, is through doing it to everyone, everyone withing the business works hard, to keep the reputation high. However, there are some areas in which Tesco's need to improve. The method is the way in how we are able to receive commission. this is because they need to demonstrate how much we are able to earn with it. Commission is an amount of money we are able to get back, with how well we work, improving; by telling us all the work that we need to carryout, will enable us to be motivated.
Piece rate is the definition of getting paid for each unit you produce at a fixed rate. In other words, it is getting paid for what you do, not how long you work for.
ReplyDeleteThe advantage of this is that sometimes the employees will be more efficient in how they work as they will want to produce more work for more money, if they slack off they will know that they are not going to get paid as much, in comparison to how much they would get if they worked hard.
A disadvantage is that the employees may pay much more attention to how much work they produce and not so much the quality of work they produce. The quality of the product may be poor, however there will be a lot of it, which is useless as the customers will not be satisfied with the poor product.
This impacts motivation as employees may be put off by how much work they have to do for their pay and the may not like the job so much because they could feel like they are being used if they are not paid sufficiently for their time.
This relates to Taylor's theory. Taylor believes that "workers should be given one repetitive task so they can learn to master it ", "Managers should give orders and closely control workers" and "Workers should be paid per item they produce" - which is known as piece rates.
To improve this method, you could potentially offer the employees more money per piece of product they make.
Jamie Glover-
ReplyDeleteJob design refers to the theory that there is five core work characteristics, and these include skill variety, task identity, task significance, autonomy and feedback. It says that all of these characteristics will provide a psychological form of positivity and will therefore lead to job satisfaction, motivation and most importantly work effectiveness. The things that come under job design are; job enlargement, job rotation, job enrichment, working in teams and also empowerment. Job enlargement is where staff are given multiple tasks to do that are all of similar difficulty, and therefore will make these employees specialists in these specific areas of work. Job rotation is where staff are switched between different tasks in order to reduce monotony, which in other words means to allow a wider range of variety and interest to reduce repetition. Job enrichment is where staff will be given more interesting and also more challenging tasks to complete, and this will be done so that they are able to expand on their existing skill set. Then there is empowerment, and this is where the staff are given the authority to make decisions regarding how they go about their work. All of these steps will make the employees feel like they are required at the business and this will lead to them feeling accomplished and motivated. The earliest attempt to design jobs came during the era of scientific management, and this was a philosophy which was based off of the ideas that Frederick Taylor presented, therefore meaning that job design links most closely with Taylor’s motivational theory. One of the biggest and main advantages of all of this is that it will all work together to relieve employees from boredom, and will also stop work from being to monetary, meaning that staff will constantly be learning new skills and therefore expanding her skill set.
The ways in which this could be improved in Tesco is through allowing even more employees to have job enlargement, as it will make them specialists in specific departments of work, and will then make them feel like more valuable members of staff. Also, the use of job rotation will give members of staff a wider skill set, as well as reducing monotony in the workplace as this can lead to staff becoming unmotivated. Job enrichment should also be introduced more frequently, and this will give other employees as well as myself yet another chance to expand on the current skill set that we have. These skills can also be transferable, which means that it can ultimately help us for the rest of our lives. Then for teamwork and empowerment, it is important to give us as trusted employees of the business the opportunity to prove ourselves, and in the process make us feel like even more valued assets to the organisation.