Custom «Leadership and Motivation of TESCO PLC» Essay Paper

Without any doubt, motivation is a force that directs, maintains, and guides human oriented behaviours. It induces people to act, whether it is eating a sandwich to quench hunger, reading a book to get information or enrolling in college to acquire knowledge. It is obvious that each human’s act is motivated. According to etymology of the word ‘motivation’, it is derived from the Latin word ‘movere’, which means ‘to move’, ‘to stir’ or ‘to agitate’. It is generally true that each area of human life has a motivation. Undoubtedly, motivation can be applied to the workplace. For instance, motivation may play a key role in leadership success. Without any motivation, a person cannot become a leader. There should always be a force or a power that will compel employees to do their job. A good example of providing a successful leadership is TESCO, one of the biggest British retailers. The employers of this company use effective motivational devices that keep the working process going.

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It is generally true that scientists have developed an abundance of different theories to explicate motivation. The most widespread theories of motivation are expectation, need and equity theories. In 1964, the scientist of the Yale School of Management Victor Vroom firstly investigated the theory of expectation. Vroom pays attention to the outcomes that significantly determine the personal intensity to work or to performing of any kind of duties. The expectation theory of motivation is characterized by the decisions that people make according to different behavioural alternatives. The expectation theory is amplified by the formula MF=Ex × Ins × Val. According to this formula, MF is the motivation force that directs human behaviours. Ex is the expectancy probability that shows how the personal endeavour influences better performance. However, the expectancy is under influence of skills of the employees, availability of the necessary resources, and accessibility of vital information. For example, if I work harder at the office, will I produce high-qualified products? Ins is an abbreviation of instrumentality. The instrumentality is the faith of performance-rewarded relationship. The outcome and personality that receives that outcome are major factors that affect the instrumentality. For instance, if I work harder, will I get a better salary or faster promotion on the career ladder? Val is the valence that is associated with the importance of award. For example, is it worth to work hard in order to get promotion? The expectation theory has its advantages and disadvantages. Human endeavour to achieve satisfaction and decrease dissatisfaction refer to the advantages. Moreover, this theory emphasises the vitality of the rewards and salaries. Additionally, the individual objective is to maximize pleasure. However, there are disadvantages of this theory: idealistic values that cannot be achieved, meaning that a few people will perceive the relationship between the pay-offs and performance. Additionally, the application of this theory is limited, since it correlates not only with performance, but also with the level of education, position, and degree of mental development (Van & Thierry 1996).

The need theory or humanistic theory of motivation was investigated by Abraham Maslow’s hierarchy of needs. He made a pyramid demonstrating five essential needs. At the bottom of the Maslow’s pyramid it is stated that people are usually motivated to satisfy their innate needs for getting food or home. Then, when a person has satisfied his/her needs, the next desire can be self-realization. Social needs belong to the satisfaction of personal needs inside the community. In this case, the person is considered as a part of the group. Self-esteem is demonstrated by promotion. At the top of Maslow’s pyramid is self-fulfilment – the area of career progression programme, creativity, and recognitions of talents. Maslow suggested the idea that one achievement motivates humans to the next (Graham & Weiner 1991). There are advantages and disadvantages of using Maslow’s hierarchy of needs. By application of this theory, a person has profound opportunities to appeal to the audience with a well-prepared presentation that demonstrates the evaluation of the audience’s satisfaction from the basic to the highest needs. It means, that the person saves his/her time while preparing for the public speech or another types of business. However, there are disadvantages that demonstrate the inappropriate unification of the humans into one pyramid of needs. Moreover, by using Maslow’s model, the person is not seen as a unique individual with personal beliefs, outlook, and perception, but as a part of the team (Maslow 1987).

The equity theory was researched by John Stacey Adam in 1963. This theory has a broader outlook comparing to Maslow’s theory of needs, while it extends beyond individualism and forms a comparative view that everybody performs his/her duties on terms of equality. The concept of fair is the most vital in this theory. Moreover, determination of motivation is a relative factor, but not an individual index. Adam’s model demonstrates the demotivated situation that is caused by predominance of the inputs over the outputs. The ratio is the most vital characteristics of this theory. For instance, this amplifies why the full-time employees compare their salaries with the part-time employees, who earn less money. In this case, input-to-output represents reward-to-effort models of motivation. In this case, it is necessary to explain what are an input and an output. First of all, the input is considered to be a hard work, effort, creativity, personal sacrifice, support of colleagues, etc. Secondly, the output is typically pecuniary reward that has two subtypes: financial (wage, pay, bonus and commission, expenses) and spiritual (job’s satisfaction, stimulus, personal achievement, high self-esteem, and promotion) (Swinton 2006).

Undoubtedly, in evaluation of motivation theories, the concept of leadership plays a significant role. Leadership is determined as an ability of the person to provide effective guidance and decision making within the colleagues and organization. The significant changes in the approaches of leadership have been evidently seen during the last 60 years. At that time, the leading concept “Command and Control” has been changed into “Business Leadership”. Historians argue that a new approach to leadership was a significant aspect in the fall of communism. The scientists from the University of Surrey & Sandhurst pointed three levels of leadership: organization leadership (control of a single team), operational leadership (a big variety of teams unites together and make a common business), and strategic leadership (entire business/ organization is under control of one strategic plan that directs its work and development) (Robbins 2003).

Moreover, there are several peculiarities that distinguish a true leader among other people. A teacher from the Royal Military Academy John Adair (1998) pointed out three types of needs that the leader must meet: he/ she needs to perform the task, direct team to carry out the instructions, and to perceive the uniqueness of each individual between other team members.

Moreover, Adair investigated the concept of “Four paths up the mountain”. Personal identity, knowledge, employment, and beliefs determine this concept and help the individual in performing his/ her tasks and achieving his/ her goals.

The terminology will differentiate in one leadership training course to the next. However, there are three main models of leadership: trait, contingency, and transformational models. The first model is the trait model that characterizes successful and unsuccessful leaders. According to American scholar Waren Bennis (1998), ‘Genuine leaders are not made, they are born’. ‘They know what they want, how to achieve their goals, and what kind of communicative tools to use in order to provide good cooperation’, he continues (Bennis 1998). Margaret Thatcher, Nelson Mandela, and Mao Zedong are identified as the biggest and the most successful leaders in the world. The question is what kind of features made these political figures the true leaders? There are three main models of leadership: trait model, contingency, and transformational model. In accordance with the trait model, humans have personal traits that introduce them as the leaders. Leadership motivation is the most vital trait that shows an intense desire to govern the others in order to reach their goals. Secondly, honesty and integrity are vital traits, while the true leader should be open, reliable, and soul of the team. Thirdly, knowledge of business is very important, while the leader should be aware of what techniques to use in the modern business and what devices to apply in order to conduct successful business. Additionally, cognitive ability, emotional maturity, charisma, flexibility, and self-confidence are vital traits of the true leader. The Secretary of Health, Education, and Welfare John Gardner made his own list of the traits of the successful leader. According to his leadership attributes, the real leader should have the following traits: stamina, task competence, action-oriented judgment, personal skills, need to achievement, decisiveness, courage, assertiveness, ability to conduct working process and communicate with people, and eagerness to accept responsibilities (Bennis 1998).

The second model of leadership is the contingency model that was developed by Fred Fielder in 1967. This scientist is famous for his breakthrough in the field of leadership, while he investigated the concept of situation that significantly influences the leader. This concept is amplified by the fact that there is no ideal behaviour in the real leadership. The contingence model demonstrates that favourability of the leadership situation plays an important role in the relationship between the leader and his/ her colleagues. According to Fielder, there are three main peculiarities that determine the leader among other people. They are leader member relationship, task structure, and leader position power. First of all, the leader member relationship demonstrates the trust, respect, and faith to the leader who organizes the work. Secondly, the task structure helps to make a detailed instruction of the work and guides the employees in the right direction of accomplishing the work. Thirdly, the leader position power shows what kind of manipulative tools are used by the leader with the aim to control the workers and organize their performance of the tasks. Moreover, the position power is very vital, since it demonstrates the ability of the leader to direct the employees and provide effective methods of reward and punishment (Robbins 2003).

The third model of leadership is the transformational model that was developed by James McGregor Burns in 1978. He investigated the concept of transformational leadership, while investigating the leaders in the political sphere. According to this scholar, the leader and his/ her employees should work together and test each other that will advance their level of knowledge, lead to motivation, and satisfy their needs (Burns 1978). The follower of Burns, Bernard M. Bass, extended the work of Burns by including a psychological mechanism. This mechanism helps to measure the impact of motivation on the employees. The followers of this model will feel an absolute trust, admiration, and loyalty to their leader. However, both scholars concluded that the transformational leadership should include individualized attention, intellectual stimulation, inspirational motivation, and idealized influence. First of all, the approach of individualized attention educates the leader to listen to his/ her colleagues and fulfil their demands and basic needs. Secondly, the intellectual stimulation helps the leader not to be afraid of risks and solicit the employees’ ideas. For instance, the leader, who belongs to the transformational model of leadership, will always encourage creativity and freedom of ideas. Thirdly, the inspirational motivation articulates the visionary aspect of leadership. At this stage of leadership, the leader always supports a true optimism about the future and cooperates in a good communication between his/ her employees. Finally, the idealized influence is associated with the concept of charisma. According to this approach, the leader has certain admirable features of character that promote better mutual understanding between him/ her and the colleagues. Moreover, the leaders may show their emotions in order to demonstrate their indifference to the situation (Bunnis 1998).

The least but not last point worth mentioning is TESCO PLC. This company is the biggest leading British retailer and one of the most successful international companies. TESCO developed highly-profitable business around the world. Their shops are located in 13 markets across three continents: Europe, North America and Asia. While establishing a new overseas business, the TESCO managers focused their attention on the biggest worldwide economics, such as Chinese, Indian, and American. According to the statistics, the largest international TESCO business is located in South Korea and brings £5 billion annually (Datamonitor 2004). Undoubtedly, the TESCO employees are motivated, well-organized, and caring towards the growth of their company. Moreover, TESCO clearly reflects that the success of its business highly depends on the two big groups – customers and staff. The company understands that valuing colleagues, forming of the interesting environment, and providing realistic goals considerably increase the level of employees’ motivation. Undoubtedly, TESCO has used a number of motivation theories, while conducting its own business, namely Taylor’s theory of motivation, Mayo’s theory of effect, and Maslow’s hierarchy of needs. According to Taylor’s theory of motivation, employees work purely for money and rewards. TESCO also provides its employees with financial rewards. However, this company has made a list of non-financial things that can motivate its employees. For instance, employee discount cards, lifestyle breaks, Christmas vouchers, free or cheaper private healthcare, depending on the employee’s level, free gym membership, holiday discounts, and free-contact working phone. Furthermore, TESCO makes a research “Viewpoint” about job satisfaction. The employees have a profound opportunity to express their opinions on every aspect of their job. The second model of TESCO motivation is Mayo’s theory of effect that consists of internal and external factors. In TESCO, the internal factors can be demonstrated by the desire to learn and to develop. For instance, TESCO made a strategic career plan “Achieve the extraordinary”. According to this plan, its managers conduct the trainings for job-realization and gaining leadership skills amid the employees. Finally, Maslow’s hierarchy of needs is used in order to motivate the employees in TESCO. This can be amplified by the fact that this company devises a list of satisfiers (achievement, recognition, promotion, growth) and hygiene factors (salary and benefits, relationships between the employees, job security, and working conditions) that help to guide and motivate the workers. For example, annually TESCO conducts a forum, in which the employees can freely express their opinions about the pay rises or other aspects that concern to their urgent necessities. Consequently, such cooperation between the managers and employees demonstrates the high level of recognition of the TESCO team to its workers and rewards them. Moreover, TESCO applies two main models of leadership: trait and contingency models. According to the trait models, the TESCO leaders have personal traits (stamina, task competence, action-oriented judgment, personal skills, need to achievement, decisiveness, courage) that help them to guide the work and develop their company. Furthermore, TESCO contingency model of leadership shows that the relationship between the leader of the company and employees that is built on faith, trust, and respect. The TESCO employees feel free to ask their leader about anything in forum “Viewpoint”, without getting punishment for expressing their opinions (Datamonitor 2002).

All in all, motivation plays a significant role in running a business. Everyone is motivated, be it by money or other incentives. The vast majority of people give preference to self-recognition and achievement. Furthermore, while conducting a business, there should be a true leader who can force employees to do certain tasks and make them feel self-realization and confidence of their job performance. While establishing a new business, the employer should choose an effective motivation theory and model of leadership that will undoubtedly lead to the growth of the company and provide a good relationship between the employees. Undoubtedly, TESCO PLC is a successful company that cares about its team and pays attention to the individuality of each worker. This strategy is vital in the establishment of the employees’ potential development and recognition of their abilities and skills.