Link Between Motivational Theory and Reward

Most companies have different reward systems that are aimed at motivating its employees for better production. Motivation refers to a process through which human behavior is influenced by others.  In an attempt to explain motivation, there are different theories which have been put across to explain this concept. However, these theories are classified into two; content and process theories of motivation. While the content theories are concerned with defining motivation, process theories are concerned with the real process of motivation. On the other hand, reward is something that an employee achieve during their work and may either be financial or non financial such as promotion and praise.

One of the motivational theories is put across by Maslow.  In his theory, he speaks out of five different levels of human needs that need to be satisfied at work place. This theory asserts that managers strive to ensure self-fulfillment for the employees.

The other theory is put forward by Herzberg.  He classifies human needs into two basic groups such as hygiene and motivational factors. According to this theory, managers are not concerned with money motivation but instead they are concerned with supplying more job enhancements.

Another equally important motivational theory is theory X and theory Y as explained by McGregor. According theory X, employees are generally lazy and should be motivated to work. On the other hand, theory Y assumes that people always want to work if they are provided with the best working conditions.

For instance, Tesco uses two motivational theories in an attempt to motivate its employees namely Maslow’s and Herzberg’s.  The company believes that by achieving one level will motivate employees to achieve the next level. Tesco also involves its staff in major decision making which also plays a significant role in motivating employees. The company also rewards its employees with financial and non-financial material. Tesco has good pension schemes as well as insurance covers which plays a great role in motivating employees.

Job evaluation

This is a systematic process that determines the nature and size of job in an organization. The process is very important as it helps in determining the pay structure, job grades as well as pay relativities. Several factors must be put in consideration in order to determine the pay structure within the organization. Such factors include; skills and experience, seniority, industry sector and size of organization just to mention a few.

For instance, Tesco has two approaches in job evaluation process. The first approach is analytical while the other one is non analytical approach. Under the analytical approach points rating, factor comparison and proprietary brands are the key factors in consideration. The company also uses job ranking and classification in its job evaluation process.

Effectiveness of reward systems

Different companies have different reward systems through which the firm rewards its employees. However, the reward system is a mix of extrinsic and extrinsic rewards. Extrinsic rewards refer to tangible rewards received by employees as a result of their good performance. On the other hand, intrinsic rewards refer to the level of satisfaction that an employee gets as a result of recognition and trust.

In Tesco Company, salary raise has been one of the most adopted reward system in the company. It has been one of the most significant motivators within the company over the years. Tesco has also been using promotion as a key motivating factor. This has served as a great motivator since it increases employee’s morale.

So long as reward system improves the livelihood of the employees, it also plays a great role in increasing the company’s profitability. This is because the staff works with more efficiency, increased trust and honesty thus leading to profit boost.  Reward system is also responsible for positive psychological contract between the employer and the employee. This harmony is very important as it creates a better working environment thus creating space for staff retention.

Methods to monitor employee performance

Monitoring performance of the employees is very important for strategic planning.  Tesco has also been actively involved monitoring performance of its employees. Several methods have been adopted by this company to ensure it has this critical information on its employee’s performance. For instance, the company uses observation and feed back to monitor employee performance. Under this system, the company hires an individual to monitor the performance of the employees and give feedback to the management. By so doing, Tesco can get the true picture of the performance and plan accordingly.

The company has also been using performance evaluation as a method of monitoring performance.  This calls for interview to Tesco employees where they are expected to talk about their performance to identify strengths and weaknesses after which appropriate action can be taken (Bandt & Haines, 2002).

Another method that Tesco uses in monitoring the performance of the employees is referred to as “360-degree appraisal”. Under this method, all the stakeholders evaluate an employee’s performance and give them feedback. It involves getting information from within and acting accordingly.

Task 3

Reasons for cessation of employees at Tesco

Cessation of employees refers to a situation whereby the employees of a company withdraw their services. This may as a result of disagreement between the two parties, through end of contract or by mutual agreement between the employer and the employee.

Tesco like any other company is also faced with employee cessation experiences. However, the company has over the years ensured that all its cessations are in accordance with the law. Most of the cessations under this company have been as a result of retirement. The company has the tendency of retiring the old guard and recruit fresh blood to match the objectives of the organization.

Another reason for cessation in the company has been end of contracts. Tesco has the tendency of recruiting personnel on contract basis. Upon expiry of the contract period, the management reserves the right to renew or decline renewing the contract. In cases where the person did not satisfy the human resource or is too old to deliver, the company tends not to renew such contracts. However, those people whose performances have pleased the organization can always be renewed after expiry.

Incapacity has also been a major reason for employee cessation at the company. If the employee by any chance is unable to perform his/her duties may be due to illness, insanity, physical or mental incapacity will only result to cessation. Other cessations have been as a result of deaths and resignations by employees of the organization.

Employment exit procedure at Tesco and Sainsbury

Tesco and Sainsbury have a very well stipulated employment exit procedures. The procedure is the same for all those employees leaving the organization on permanent basis with the exception of those dismissed due to gross misconduct. The two companies start by giving notification to leave or resign. The two companies follow the following steps and techniques to ensure effective departure of the employees;

  • Retaining methods: the companies will strive to retain productive employees by offering better compensation or giving leave options.
  • Exit interview: if the employee persists to leave even after retention offer, then the employee has an exit interview with store manager and then personal manager.
  • Understand the reason for leaving
  • Checking work stress
  • Referencing: recommend and refer them for the next opportunity.
  • Payment in lieu of notice: all dues should be cleared
  • Return of property: the employee is expected to return all the properties belonging to the company.
  • Pension arrangements: there should be agreement on how to clear pensions and other benefits if there are some.

This exit procedure can be termed as a standard exit procedure whereby the two companies strive to retain staff as much as they can. However, trying to force employees in the company may be retrogressive and thus it is always good to understand the reasons for leaving.

 Consider the impact of the legal and regulatory framework on employment cessation arrangement

After cessation either through resignation, layoffs or dismissal it is important for the organization to redesign its job description in accordance with the legal and regulatory framework. These decisions must be well thought to ensure that the company gets the best from such decisions in terms of productivity, job performance, responsibilities and educational qualifications must ensure that the organization gets the best.

The number of years that an employee has been in an organization has great impact on legal and regulatory framework on cessation arrangements.  Such employees have great experience and skills that are vital to the company. For instance, at Tesco Plc the length of service and skills of employees play a significant role in cessation decisions. Bothe time of service and level of performance have been effective criteria for job retention (Bandt & Haines, 2002).

The other consideration in cessation the severance payments and other benefits expected to be received by organizations employees. Employees who have been in the service for longer periods are expected to have more severance payments as compared to their counterparts who have shorter period of service. For instance, at Tesco one week’s salary per year of service is the most common term of reference. The organization strives to ensure that it retains employees who have worked for long periods to reduce costs in terms of benefits payments and recruitment costs.


Human resource planning is a very important aspect for the success of an organization. The success at Tesco and other leading companies can be attributed to the effective human resource planning at the organization. Recruitment, retention and cessation decisions should be made after critical thinking and understanding of the organization. Employees’ value to any organization should not be doubtful since they play a great role in the success of the organization (Hensmans & Johnson, 2013). It is also important for the human resource department to ensure that their decisions are in accordance with the legal framework so as to prevent legal breach which could be expensive to the organization.


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Bandt, A., & Haines, S. G., 2002. Successful strategic human resource planning. San Diego, CA: Centre for Strategic Management :.

Bhattacharyya, D. K., 2006. Human resource planning (2nd ed.). New Delhi: Excel Books.

Hensmans, M., & Johnson, G., 2013. Strategic transformation: changing while winning. Lanham, Md.: Rowman & Littlefield Education.

Recruitment and Selection for Sainsbury. (n.d.). Recruitment and Selection for Sainsbury. Retrieved October 28, 2014, from

Reddy, M. S., 2005. Human resource planning. New Delhi: Discovery Pub. House.


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