Optimizing Employee Performance in Multinationals

  • 12 Pages
  • Published On: 03-11-2023


Performance is one of the most significant factors in deciding the productivity and profitability of an organisation. For multinational organisations, managing the performance of employees in different divisions is a crucial activity to achieve efficiency in operations, sales and values to the company. Establishing an environment of high work ethics is a helpful approach for the managers in multinational organisation to obtain growth and sustainability in competitive market. But it is not necessary that all the employees in organisation will impart their full efforts for meeting the organisational objectives and aims (Normore, 2016). For this reason, operational and human resource managers are required to analyse the factors that affect the performance of the employees and establish strategies to enhance their productivity. However, the approaches that can be adopted by the managers to raise the performance of the employees differ by their objectives such as enhancing the performance of sales, accounts, operations and many others.


Tesco is a leading retailer that is based in Hertfordshire, UK. The organisation operates in multinational markets and provides general merchandise and groceries. As per profits, Tesco is a third largest retailer in the world (Boone and Kurtz, 2013). As far as the market is concerned for the organisation, Tesco has 6902 stores in different countries across Europe and Asia.

This report tends to analyse the performance improvement tactics of Tesco PLC. The report highlights the significance of enhancing the performance of the employees in organisation and target efficiency. Further, a methodology for the objective and the approaches to its implementation are also discussed in the report.


As far as enhancement of performance is considered for Tesco, it is found that profitability of entire organisation is dependent on the efficiency of its divisions such as human resource, sales, marketing, operations and many others. Employees are the main assets for an organisation to target the profitability (Blythe, 2013). For this reason, it becomes important for the managers in Tesco to focus on analysing the performances of their employees and search for the measures and approaches through which their productivity can be raised.

Further, competitive rivalry for Tesco is yet another highly influential factor for signifying the need for performance enhancement (Kotler and Armstrong, 2013). There are several other organisations, which are active in the same field and are responsible for providing bitter competition to Tesco such as Wal-Mart, ASDA and many others. The approaches acquired by other organisations directly obstruct the growth opportunities for Tesco and act as a factor for reducing its market share. For this reason, it becomes crucial for the managers in the organisation to enhance the performance of floor level employees and seek the growth.


The aim of the research is to identify the factors that are responsible for declining the performance of Tesco in sales and operation division along with measures and their implementation to enhance the productivity and profitability.

Design/ Methodology

To enhance the performances of the employees in Tesco in sale and operation sectors, the managers must focus on motivational approaches. Various advantages obtained through motivated employees are explained in the following manner.

Significance of motivation

Motivation plays a significant role in employees’ work performance and enthusiasm. It is very crucial for an organisation to adopt employee motivation techniques and approaches to create a healthy and constructive work atmosphere and to keep the employees energetic. For this reason, the managers in Tesco must pay focus on a salary that is given to the employees and provide incentives, bonus, insurance and other benefits timely. Financial security would keep the employee free from fear of financial crisis, and they would feel more secure and motivated at the workplace. A direct consequence of such approach will be seen in the performances of the employees in Tesco. The managers should also provide safe and appropriate work environment and opportunities to make social relations and motivate the employees. Vacations, family trip, social gathering functions, promotions, appreciation, awards, training opportunities, and performance appraisals are also some ways of employee motivation at the workplace (Herzberg et al., 2013). Many organisations involve the employees in decision-making processes of the organisation and consider that their opinions are vital for the organisation’s growth and development. This involvement of employees would encourage them to work more dedicatedly for the work.

The motivation for the employees in Tesco has distributed into two categories extrinsic and intrinsic motivation. Extrinsic motivation comes from the external factors like money, social recognition, competition, etc. while intrinsic motivation comes from within. It is the motivation, which comes when the person enjoyed working at a workplace. To promote intrinsic motivation, the organisation could plan activities, which employees enjoyed to motivate them. A business organisation such as Tesco PLC, which considers that people are their most valuable asset and works for the employee motivation, could easily achieve success in today’s business world. Employees have different needs and expectations and the Tesco, which focus on providing different benefits and other opportunities, which motivates them, could get more efficient and dedicated employees. Appropriate use of motivational approaches creates a constructive environment at workplace, makes the employee performance better and decreases the employee attrition rate.

Motivation is another aspect, which enhances the level of engagement. Leadership, work policies and procedures, training and development, organisational justice, compensation and benefits are the main key drivers of employee engagement (Thomas and Thomas, 2010). Trust applies to all the levels i.e. systems and procedures, senior leaders, line manager and workgroup. Connect, control, clarity, convey, collaborate, credibility, career, congratulate, confidence, contribute are the Ten C’s of employee engagement. Organisation behaviour towards employees directly affects the level of employee engagement. Employee engagement focuses on commitment and involvement of employees only.

Thus, it is found that motivation acts as a primary tool for the managers in Tesco to improve the performances of the employees and target more productivity and profitability.

Maslow theory of hierarchical needs

Motivation could be explained as a psychological characteristic of human beings that directly influences the attitude and behaviour of people. In other words, motivation can be defined as the desire of a person to achieve higher goals (DeKay, 2013). Motivation is considered as an unsatisfied need which creates a state of disequilibrium. This state of disequilibrium prompts a person to make efforts for achieving the goal established by him or the leader and restore the state of equilibrium.

To manage the employees in Tesco, it is very crucial that the organisation work for the motivation of its employees. There are many motivational theories, which are given by various theorists for the motivation of people and enhancing performances at the workplace. One of the very primary theories of motivation is Maslow’s hierarchy of needs. According to this theory, human needs are divided into different hierarchical levels, and when one level fulfil, human beings are motivated to achieve the next level (Lester, 2013). Also known as the classification of needs, this theory categorises the needs of an individual into five levels- physiological, security, social esteem and self- actualization. Maslow arranges these needs by their importance starting from the bottom of the hierarchy. Physiological needs come under the first level, representing the basic needs of an individual, such as food, water, and air (Salado and Nilchiani, 2013). The second need is the safety of security needs, as an individual prefers to work in a secure emotional and physical environment. Examples of security needs are safe accommodation, clothing, job security, regular earnings along with a safe working environment.

The social needs represent the desire of an individual to be a part of the social system. This needs to highlight the need for love and affection along with the desire to be accepted by the society. These needs are satisfied when an individual if provided with the opportunity to socialise with the people.

Self-actualization is the highest need in Maslow’s hierarchy. Self-actualisation is one of the major challenges for the manager, as a manager has to aware an employee about his capabilities, aptitudes, and skills (Francis, 2013). There are two exercises which can help an individual to realise their needs- self-awareness and self-exploration. Self-actualisation is absolute maximum level at which human could reach, where there all needs and demands could be attained under the last level of the hierarchical model.

Therefore, it is found that the managers in Tesco can utilise the concepts of Maslow theory of hierarchical needs and aim for improving the performances of employees to enrich the organisation with higher sales and profitability.

Plan for implementation

Process of performance management

Process of performance management

Performance Planning: To manage the performances of the employees, the managers in Tesco are required to establish plans and strategies to which their performance could be enhanced. After setting the objectives, the managers, therefore, tend to analyse the capabilities of employees at an individualistic level and allocate the task accordingly. This approach is highly helpful in the formulation of effective and productive teams (Cardy & Leonard, 2015).

Figure 1: Process of performance management (Cardy & Leonard, 2015)

Ongoing feedback: Along with the establishment of the plans for enhancing the performances of the employees in organisations, the managers in Tesco are also required to obtain timely feedback. This practice is highly helpful in attaining information related to the accomplishment of the assigned tasks to the employees. Also, it is also found that obtaining feedbacks are also a fruitful process of analysing the deviations from standard protocol for the tasks and improvising the practices.

Employee Input: In addition to plans and feedbacks, the managers in Tesco are also required observed the input from employees’ end and bring subsequent modifications to enhance the performances. For example, there could be some employees in the organisations that have higher efficiency in comparison to others, but are not able to perform best due to certain reasons, Therefore, the managers are required Analyse the causes behind a reduction in efficiency and restructure the strategies to attain optimum outputs (Landy & Conte, 2009).

Evaluation of performance: Another major approach, which influences the performance of the employees in the organisations, is performance evaluation. This approach is critically beneficial for the managers in Tesco to estimate from the observed performance data related to the employees. The managers are required to evaluate the causes of elevation and reduction in performances (Armstrong, 2015). Also, analysis of the work is also helpful in bringing modifications in future operations and understanding the employees’ perspective. Therefore, it becomes a great tool for the managers to enhance the performance and productivity of organisations through performance evaluation.

Performance review: Further, providing a positive and negative review on the performances of the employees is also an approach that is utilised by the managers in Tesco to enhance the performances. A positive review of the performances for the employees that gave more than expected outputs can act as a boost for the future operations and objectives. However, negative reviews attained over the performances can help in the improvisation of the work and highlight the loopholes in which improvements are needed.

Thus, it is found that the processes that are adopted by the managers in managing the performances of the employees in organisations are quite helpful in enriching the organisation with better productivity and profitability.

Role of performance management in Tesco

There are several roles that are attributed to performance management process in Tesco. Some of these roles are discussed in the following way. Performance management is helpful for the managers in Tesco for keeping the record of the employees that are highly productive for the organisations; such employees can be retained for a long time by analysing the motivational factors that work for them. Also, performance management is also helpful in attaining information related to the impacts of the challenges that might be faced during the execution process of strategies (Demartini, 2014). Further, performance management acts as a guide to estimate the future of the employees as well as for the organisations. Higher performances are directly linked with the bright future scope of the practices. Furthermore, performance management is also beneficial in analysing the effectiveness of the plans set for organisational growth.

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It can be concluded from the above report the performance of the employees is an ultimate factor for the organisation to achieve growth in the market. For this reason, it becomes essential for the managers in Tesco to focus on the performances of the human resource to enhance the sale of the products. Whether it is the development of the product, operation or sale; a higher performance from employees’ end boost up the profitability and productivity of the organisation. It is also found that higher level of motivation and employee engagement are some of the factors that can enhance the performances of the employees in sales and operation in Tesco. Further, it is also found that the managers are required to adopt certain measures to improve the performances in Tesco such as providing rewards, perks and many others. Also, arrangements for proper training of the employees can aid Tesco with higher profitability in sales and operations. Employee engagement is also found to be a fascinating approach for Tesco due to which the managers in the organisation can attain the loyalty of the employees and attain more work. Effective implementation of such approaches is found beneficial for Tesco in attaining more stability in the market.


Following recommendations can be given to the managers of Tesco to raise the performance of the employees in the organisation.

1. Inspiring leadership:

Inspiring leadership is the key motivator in achieving high employee engagement. Genuine interest of the leaders in the work assigned to the employees imparts a message that their work is valuable in company’s growth (Dotlich, Cairo, and Rhinesmith, 2010). This practice will emotionally manipulate the employees in becoming more committed towards their task.

2. Growth and opportunity:

Growth is the main factor for which an employee is working in any organisation. Opportunities for growth within the organisation regarding salary and designation dramatically change the views of the employees towards their job. It is a general tendency of the employee to work hard when they see an opportunity for growth. Hence, more employee engagement can be achieved.

3. Meaningful work:

The employee feels monotonous when they face work, which belongs to a different field than their area of practice (Mone and London, 2014). This leads to avoidance, delay and lower work quality. Assignment of relevant work often creates an interest in employees that result in high engagement.

4. Recognition and reward:

Recognition and reward provide a feeling of pride to the employees and works as a boost in the performance of a given task. A promise of extrinsic and intrinsic reward acts as a motivational factor and enables the employees to achieve even bigger tasks.

5. People focused culture:

Employees should regularly be encouraged to maintain a balance of hard work with socialising and fun. This practice leads in high affinity in the achievement of the goals. Since the employees are the most valuable asset in an organisation; an employee focused culture must be maintained within the organisation.


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