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BSBLDR602 Provide leadership across the organisation
BSB61015 Advanced Diploma of Leadership and Management
Name: _____________________________________
Student ID: _____________________________________
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This workbook has been designed to be used in conjunction with
information and materials to be provided at sessions.
This workbook does not contain all subject information and students
should attend all scheduled sessions and read and understand all
materials provided at sessions.

Edition: 2st Edition
Release date: 29 July 2015
The publisher owns the copyright in this publication. All rights reserved.
No part of this publication may be reproduced by any process without the prior written permission
of Apex Institute of Education Pty Ltd.
Copyright © 2015 Apex Institute of Education

www.apexaustralia.edu.au

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CONTENTS

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ELEMENT 1: COMMUNICATE ORGANISATIONAL
MISSION AND GOALS
➢ Confirm objectives, values and standards according to organisation’s strategic
direction
➢ Establish links between organisational objectives, values and standards and the
responsibilities of relevant groups and individuals
➢ Confirm that media and language used for communicating organisational
mission and goals meets the needs of individuals and group
➢ State expectations of internal groups and individuals
➢ Investigate incidents and communicate results to relevant groups and
individuals according to organisational policies and procedures
As a leader within the organisation it is crucial that you understand how
to communicate your organisation’s mission and goals to your staff
• Organisational mission: The overriding or overall strategic goal of an
organisation as set by managing directors or board members. It states what
business the organisation is in. where as
• Strategic direction: It is the big picture and high level strategy that the
organisation will use to achieve their mission. It shapes how they will get there.
It includes the analysis of past and present influences, future opportunities and
threats, internal and external factors etc
As a leader/manager, it is your responsibility to clarify objectives, values
and standards in accordance with organisation’s strategic direction
• Also you have to establish links between organisational goals and the activities
and responsibilities of staff within the organisation; because the organisation
needs to be united in where it is heading so all work goals should be aligned to
the strategic directions.
• It is helpful to communicate this to ensure that all staff develop a sense of
belonging- this helps their commitment to achieving organisational goals
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Use of appropriate language and media in addressing groups and
individuals
Leaders are to understand that the staff in the organisation are from various cultures
and with different level of understanding about the values and the culture of the
organisation, so while addressing and communicating the organisational goals and
missions to staff, the use of appropriate language and media is very crucial.
• The usage of proper media in communicating the management’s intention to
staff is essential and so is the types of language used in communicating those
intents are.
• In stating the organisational goals and mission to all staff, it is necessary to
clearly state the expectations of all internal and external staff and groups.
• Leader should explain the staff in a manner that builds up the positive
reflection of the organisation and enhances the commitment towards
organisation
• While doing this, an effective manager would also explain and addresses the
expectations of the organisation from their various internal and external
customers and other relevant stakeholders and groups
Address expectations of the organisation
Some of the expectations that an organisation might have about their operations are
as follows:
• Financial performance
• Environmental management
• Occupational health and safety
• Product safety
• Service
• Values and ethics
• Other relevant factors
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Investigate incidents promptly and communicate results clearly to
relevant groups and individuals
The way the organisation responds to the various incidents that happens in the
organisation also might have an impact on the success of the organisation.
Incident word is described by Macquarie dictionary as an event or occurrencesomething unimportant that happens in connection with something else. The types of
incidents in the workplace that might have an impact on organisation’s success are as
follows:
• Emergency response
• Environmental events
• Product failure and
• Workplace accident
Even if the incident is unimportant it has to be investigated and reported and
determination as to whether action must be taken or not.
The main aim of investigation is to:
• Prevent similar incidents in the future
• Identify new hazards
• Identify and choose suitable controls
Once the results of the incidents are investigated, communicate the results clearly to
all groups and individuals
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✓ TEST YOUR KNOWLEDGE
Trainer to give 1 mark for each correct answer
1. Describe the following terms
a) Vision
b) Mission
c) Core Values
d) Action Plans
e) Goals
f) Strategy
2. Why is it important to communicate the organizational mission and goals in your
organization?
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3. How can the organization’s strategic direction establish linkages between organizational
objectives, values and standards and the responsibilities of relevant groups and individuals?
4. How can the internal groups and individuals build commitment to the organizational goals?
5. What is Incident? Explain various types of Incidents with appropriate examples.
6. How will you address expectations of the organization to individuals and team?
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ELEMENT 2: INFLUENCE GROUPS AND INDIVIDUALS
➢ Make decisions according to organisational policies and procedures and work
task timeframes
➢ Facilitate improvements to organisational and workplace policies and
procedures
➢ Facilitate integration of global environment and new technology into work
activities
➢ Represent organisation in the media and community
Facilitate improvements to organisational and workplace policies and
procedures
Based on the investigations of incidents and with the consultations and
communications with staff, various issues and concerns related to work activities and
inter personal issues of staff may come in light.
• The improvements on various issues can be effectively implemented by
collecting information on each area and strategies for improvement can be
established that will in turn leads to the improvement in workplace culture and
environment
• An effective leader must demonstrate the understanding of global
environment, means continuously scans through the various internal and
external factors of industry
Ensure actions convey flexibility and adaptability to change and
accessibility
• It is important to be flexible and adaptable when implementing change across
the organisation.
• It is also important to provide opportunities for staff to be consulted especially
when making decisions about work practices
• External groups should also be consulted when making decisions
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• Before making any decisions, effective leaders always ensure consultations and
participations from all relevant groups and individual within the organisation &
takes care of the needs of the needs and expectations of all of their external
and internal customers
Facilitate improvements to organisational and workplace policies and
procedures
• Building a team that is trustworthy and focussed on achieving organisational
goals is to develop clear communication strategies, train team members how to
give and receive effective feedback and appreciate the diversity of skills that
exists within the team
• Risk management means the process of identification of potential negative
events and the development of plan d to mitigate or minimise the likelihood of
the negative event occurring and/or the consequences in the event it does
occur
• Leaders has to make sure that these risk managements plans are referred and
considered when making decisions to make sure that the organisation is not
risking any of the major assets, staff safety and customers/clients safety.
• It is also important for an organisation to develop a good relationship with
media and community at all times and looks favourable in the eyes of the
media because any negative publicity about a process or product create
negative image and therefore business will suffer.
• Organisations that interact with the community in a positive way are more
likely to be supported and thus business will be better
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✓ TEST YOUR KNOWLEDGE
Trainer to give 1 mark for each correct answer
1. What is” productive diversity”? What are the benefits associated with productive diversity?
2. What are the characteristics of good leader?
3. Why is risk management important for a leader? In what way can a leader manage the risks?
4. What is the importance of Communication in building the trust and confidence amongst the
team members?
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5. What methods of communication would you use within your organization to inform the
team of future plans and objectives?
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ELEMENT 3: BUILD AND SUPPORT TEAMS
➢ Assign accountabilities and responsibilities to teams according to competencies
and operational plans
➢ Resource teams to allow them to achieve their objectives
➢ Create and maintain a positive work environment
➢ Encourage teams and individuals to develop innovative approaches to work
tasks
Assign accountabilities and responsibilities to teams consistent with their
competencies and operational plans
As a manager you have to assign accountabilities and responsibilities to a team, this
includes:
• Clarification of who is to be accountable for a decision or action prior to its
execution
• Identification of groups or individuals and activities for which a person is
responsible for managing
• These responsibilities should be assigned to each staff member on the basis of
their competencies and in relations to the need of the operational plan and the
role of that staff member
Resource teams to allow them to achieve their objectives
• As a manager it is your responsibility to take care of your team ensuring that teams
are given all resources to support their work activities and achieving their goals on
time
• Delegation of work is also a powerful tool in achieving staff support and enhances
staff contribution as staff feel empowered and put their full efforts in improving
the efficiency and productivity
• To check whether the team is empowered or not, following can be assessed:
➢ Assess the available resources including the staff in the team, size of the job,
and how long it will take to complete and skills and experience of staff
➢ If the skill set and available resources match up to the requirements of the
job then the team can be allowed to do the job without any interference
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➢ If the skill set or some resources are missing then the team will not be able
to finish tasks on time
➢ Clearly defined decision making policies and hierarchies of control are also
needed to ensure that the team is empowered
Create and maintain a positive work environment
Positive work environment is the environment where employees identify with the
organisation and its purpose and where communication is free flowing, decisions are
transparent and conflict is positive and constructive.
A positive work culture can be created in the organisations by following ways:
• Consulting with staff regarding their current roles and responsibilities and their
skills and experience
• Examining the goals of the team and the wok unit and look at current and past
productivity, complaints and problems etc
• Involve the staff in discussing the improvements in the work culture
• Develop new systems and approaches for improvement in consultation with
staff and their feedbacks
• Develop a plan for improvements implementation and communicate clearly to
staff and delegate new roles to staff as appropriate
• Make sure that staff has all required resources
• Empower the team to do their job, providing an individual approach to
leadership & guidance as required
• Use coaching and mentoring strategies to build confidence and Implement
performance based award system and make sure you allow idea sharing and
open consultation with staff
• Staff who feel supported in their workplace are generally highly motivated
towards achieving organisational goals
Encourage teams and individuals to develop innovative approaches to
work tasks
Leaders must encourage their staff to develop the flexible workplace practices that
allow creativity and innovation in the workplace are as follows:
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• Job sharing
• Working from home
• Part time workers
• Creation of virtual teams across large organisations
• Teams should be self directed
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✓ TEST YOUR KNOWLEDGE
Trainer to give 1 mark for each correct answer
1. Outline the processes in assigning accountabilities and responsibilities to teams & individuals.
2. In what ways a leader can create a positive work culture in an organization? Explain with
examples.
3. Empowering team in completing the task or project is very important, how will you determine
whether or not your team is empowered?
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4. Give some examples of resources required for the team to ensure they achieve their objectives.
5. How will you encourage teams and individuals to develop innovative approaches in the workplace?
6. What factors can be considered while assigning roles & responsibilities to the team members?
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Element 4: Demonstrate personal and professional
competence
➢ Model ethical conduct in own work and encourage others to adopt business
ethics
➢ Adapt interpersonal and leadership styles to meet circumstances and situations
➢ Set and aim to achieve personal objectives and work program outcomes
➢ Engage in professional development activities and industry and professional
networks and groups
Model ethical conduct in all areas of work and encourage others to adopt business
ethics
To adopt business ethics in the workplace means that to adopt the values, morals and
principles of the organisation as are accepted in society and its stated values
• These behaviour are expected to establish and maintain appropriate standards of
behaviour and practice when managing staff and other external stakeholders
• All the stakeholders will expect from the manager that [personal integrity, respect
for people, impartiality and respect for law will be demonstrated at all times,
together with technical expertise, personal effectiveness and continuing
professional development
• To analyse this ethical conduct and in order to successfully implement in business
settings, managers need to be aware of the following organisational norms relating
to it like:
• Organisational policy
• Practice standards
• Codes of practice and current good practices
• Nature of workplace relationships
• Limits of own competence
Successful managers creates their own personal framework where they follow the
ethical practices in their work and encourages their staff to adopt the same work
practices in order to demonstrate personal and professional competence at all times.
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Adapt interpersonal and leadership styles to meet circumstances and
situations
• Successful managers knows how to deal with their staff using their interpersonal
and communications skills
• They adapt appropriate interpersonal and leadership styles under difference
situations and circumstances, this is essentially important to use different skills
and styles to various situations because people respond differently to different
style, so manager must know what style can be used to best meet the needs of the
individuals
• For eg: in some situations managers need to take control, like in an emergency
situation, managers has to take a control over it and resolve it using consultative
approach.
• Coercive power though effective in certain cases should be avoided by a leader to
be accepted by his team members.
Various leadership styles that a manger can use in the various business situations
are as follows:
• Situational: This is also known as contingent approach, where managers take on
decisions based on situations. Here the model has 4 quadrants that look at the
amount of support to be provided to a person and the level of skill that they have.
The model acknowledges that people will need different leadership approaches in
different situations
• Dictatorial: This is controlling style of leadership in which the leader makes the
decision without consultation and controls the activities of staff at all times.
It assumes that workers cannot be trusted to get on with the job, they have no
motivation to work and they need to be controlled
• Laissez Faire: This approach allows people to do their own thing in their own way.
It is a free way of operating.
• Coaching: This approach is very supportive, helping staff to reach their goals.
Though it is time consuming and looks like that manager is micro-managing at all
times, but is the most positive approach to boost staff morale and enthusiasm
towards work.
• Collaborative: This style is one where people involved in decision making
processes and the leader is more of a guide than a leader and encourages staff to
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participate and involved in decision making process affecting the compamy’s
progress
Ensure self performance and professional competence is continuously
improved through engagement in a range of professional development
activities
• Managers need to continuously review their skills and performance and
professional currency by attending various professional development programs.
• The various professional development activities that could help managers in
developing and maintaining their leadership competencies are : attending
conferences, coaching & mentoring programs, through reading and discussions,
trainings and attending external PD sessions, using internal methods like job
sharing or rotation practices
Participate regularly in industry/professional networks and groups
• Successful manager is the one who build networks and be active in professional
associations. That can be done by joining professional groups and network
community.
• A network is an informal web of relationships inside and outside you
organization that you can call on help, information, advice and support; and you
can extend the same help and support to others in the network
• Various benefits in participating in industry/ professional networks and groups
are:
➢ It helps in idea sharing
➢ Development of new knowledge
➢ Keeping up with research in the area
➢ For job opportunities and connections
➢ For collaborations and helps in finding out what competitors are doing and
what is going on in the industry.
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✓ TEST YOUR KNOWLEDGE
Trainer to give 1 mark for each correct answer
1. What does ‘leadership’ mean in the context of management? List 5 important qualities of a leader.
2. What is your definition for a Laissez-Faire leader? Give relevant example(s).
3. What is your definition for a “DEMOCRATIC” leader? Give relevant example(s).
4. What is your definition for “COERCIVE POWER” in leadership? (You can also search internet /
dictionary for this answer)
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5. What professional activities can be helpful to develop and maintain leadership competencies?
Provide some examples.
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CLASS ACTIVITIES
ACTIVITY – I
Role-Play Activity
You are a manager at CCL, a chocolate packing factory in NSW. You are responsible
for at least 25 employees at any given shift. You want to encourage all staff to be
aware of workplace safety. The goal is to encourage dialogue between the company
and all its stakeholders regarding workplace safety.
In a role play, form yourself into 2-3 people and have one play the role of the
manager and the rest as members of the staff. You will discuss safety in the
workplace. You will need to prepare a meeting agenda template and discuss the
agenda with your group.
ACTIVITY – II
SITUATION HANDLING & CRISIS MANAGEMENT
a) You are the CEO of ABC bank. A news item was recently printed in the news
about an alleged hacking activity in your computer network. It has been
reported that nearly 300000 credit card numbers have been stolen by the
hackers. It is your responsibility to communicate the event to all of your
employees and customers to prevent panic. How are you going to do this?
Explain
b) You are the new manager at Myer, a fashion retail store in the city. On a busy
day you noticed a customer waiting to be served without being acknowledged.
Before anyone could attend him, the customer just walked out of the store
saying some angry words about your team’s poor customer service and
mismanagement. How are you going to show leadership by becoming a
positive role model in your workforce?
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ACTIVITY – III
Case study
Bob’s Organic Ozzie Burger:
As managing director of Bob’s Organic Ozzie Burger, Bob Johnson is always on the
lookout for potential managers. The chain has grown from one outlet in 2003 to its
current 17 outlets in two states, with plans for future expansion. It is known as the
leader in its field, and no small part of its success is due to the shrewd and capable
management of Bob and his management team. In his world, ‘our most assets are our
employees. And our most valued employees are qualified leaders who can manage
our food centres.’
Bob’s latest applicant is a young man named Robert Nicosea. Robert’s experience is
not too exciting: work in a supermarket as a checker. Summer work during the school
holidays as a construction labourer and work as an assistant in an accounting firm.
This is not an impressive record, but what strikes Bob is Robert’s burning desire to get
ahead- to succeed, to make something of himself.
Robert’s job in the supermarket was head checker, responsible for training and
supervising 11 other checkout staff. The job also entailed checking each register to
ensure that the tapes and money tallied. When Bob telephoned the store manager
for a reference check, she gave a glowing account of Robert’s job performance.
According to his application form, Robert is the leader and informal spokesperson for
his local fishing club and president of his town’s youth group. At his first interview
with Bob, Robert exhibits an almost contagious enthusiasm for honest work, his belief
in others and a desire to succeed.
Bob asks Robert why he wants to be the manager of one of his outlets and why he
thinks he is a good leader. Robert thinks for a moment, then replies: first of all, I know
I can do the job. I’ve had experience in food handling in a supermarket and I know
figures and bookwork. Also, I think I know how to handle employees. I believe that
people like to see their boss have a strong hand and exercise sound and strong
control. They like a manager who is not afraid to make decision and who makes them
quickly. They like a boss who runs a tight ship. And I think that all of these qualities
apply to me. I’m not afraid to make a decision. And I certainly don’t mind giving
instructions. Furthermore, if an employee isn’t performing, I don’t mind pointing that
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out. And I don’t believe in “suitcase management” – carrying people who aren’t
pulling their weight’.
He pauses, then goes on. ‘I honestly believe that I’m a born leader. I’ve always
wanted to tell others what to do. Even when I was little, I always wanted to lead the
rest of the kid on my street and be the captain of the teams I was in at school.
‘For these reasons, Bob, I know that I could be one of your best managers within a
year. I’m sure that I can run one of your outlets and increase business and profits. I’m
a hard worker. I don’t mind long hours, hard work and tough goals. Give me a chance
and I will prove to you that I can get result.’
Thanking Robert for coming to see him. Bob indicates that it is interviewing several
other candidates and will let him know his decision in a few days. The two stake
hands and Robert depart. (Source: Cole, K, (2010) “Management theory and practice”
4th Edition, Pearson, Australia.)
Questions:
1. What leadership qualities do you see in Robert Nicosea? Can these qualities be
effective in a fast- food outlet?
a. If yes, How?
b. If No, Why?
2. Choose two leadership theories and present them to analysis Robert’s
leadership style as he described it?
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ACTIVITY – IV
Case study
A question of style:
A deputation of her staff confronts Helen Goodman, maintenance manager at the
local telephone service centre. After a few comments by their nominated
spokesperson, they present a long list of complaints. She takes the list and thanks
them. The group impresses her- the members are not militant, but quite serious. She
cannot thus off the incident as insignificant. Through the years, her theory has always
been that ‘the complaining solder is the happy soldier’. She has thus frequently
passed off an employee complaint as a superficial gripe from a basically happy
employee.
As she thinks about her work at the service centre over the last six years. She
recognises that from time to time she has received complaints from individual
employees, perhaps more than the normal number. She casually dismissed them
because she did not believe they were serious. Now confronted by a long list of
complaints from all the staff, she thinks that she had better ‘sit up and take notice’.
The complaints are varied. The following are typical examples:
▪ We are concerned that you don’t seem to understand us or maintenance work.
▪ You are distant – we would like to get to know you better.
▪ We are never sure you pass our suggestions up the line.
▪ We believe you show partiality to the female employees.
▪ You appear to us to be more concerned with the show that the maintenance
department makes than with managing.
▪ You follow the rules too strictly.
(Source: Cole, K, (2010) “Management theory and practice” 4th Edition, Pearson,
Australia.)
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Questions:
1. Judging from the list of complaints, what major problems exist for Helen
Goodman?
2. What should she do about the way she leads? Why?
3. Do you think Helen has the potential to continue as a successful leader? As a
manager? Why or why not?
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ACTIVITY – V
True or False
Section 1 –
1. Values represent the core priorities in the organisations culture.
2. Communication is a one- way process.
3. Information exists in the mind of the sender.
4. A vision statement states an organisation’s purpose.
5. Context is the way the message is delivered.
6. Noise must be physical to be a barrier to communication.
7. Communication channels should be adapted to the message and audience.
8. Listening and hearing are the same thing.
9. Never try and anticipate questions asked by the media
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10. Consultation is dialogue leading to a decision
Section 2 –
1. Mutual trust is a shared belief that you can depend on each other to achieve a
common purpose.
2. To be trusted you must show that you trust.
3. People usually can not sense how you feel about them.
4. It is easy to get trust back once it is lost.
5. The best way to maintain a trusting work environment is to keep from injuring
trust in the first place.
6. Being polite is an easy way to gain trust
7. To deal with directive people, ask very broad questions
8. Knowing the goals that you want to meet is not important in determining the
communication style that you should adopt.
9. Leading is a management function of influencing people to act or not act in a
certain way.
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10.Interpersonal understanding involves dealing with people in a respectful and
sensitive manner.
Section 3 –
1. A team can be defined as a group of individuals grouped together to work
towards the achievement of a specific goal
2. Broad objectives lead to clear objectives.
3. The agenda for a group or team defines the group or teams reason for being .
4. None- measurable objectives are less effective that measurable objectives.
5. Terms of reference are set by the organisation, and do not need to agreed on.
6. Group or team meetings are the core of group problem solving.
7. The leader defines the problem in participative decision making.
8. By selecting the problem that can be solved and that might have a positive
ripple effect, one can assume that the time in a meeting will be put to good
use.
9. Problem solving need not be evaluated.
10.Objectives should be time – based.
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Section 4 –
1. Ethics refers to the intellectual discipline that deals with the rightness and
wrongness of human action.
2. Normative ethics involves describing how people behave.
3. In normative ethics, a conclusion is drawn from the observations made.
4. Morality can be described as the norms of right and wrong that people should
follow in their conduct
5. Being good and being right are the same thing.
6. Managing ethics is not a process.
7. A code of practice should be written by an individual.
8. All organisations have sets of policies and some have practice standards.
9. Your framework for behaviour must also take into account the relationship of
individuals to organisations and organisations to wider society.
10.Confidentially is a boundary that should not be exceeded.
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ACTIVITY – VI
Case study: 3
TESCO, Every Little thing helps
Introduction
Tesco began in 1919 with one man, Jack Cohen, a market stall-holder selling groceries in London.
TESCO was formed out of a merger with T.E. Stockwell from whom he purchased tea for sale on the
stall. The first store opened in 1929.Since then, Tesco has expanded across the world. It now has
over 2,200 stores including hypermarkets and Tesco Express outlets to meet different customer
needs. As a conglomerate Tesco also offers alternative goods and services such as insurance,
banking and online shopping. With net profits of around £3.4 billion Tesco has become the largest
British retailer and one of the world’s leading retail outlets on three continents. Tesco’s growth has
resulted in a worldwide workforce of over 468,000 employees.
To support its growth, Tesco needs staff that are motivated, flexible and well-trained and who
recognise customer needs. In turn, Tesco’s employees are supported by the company in their
various roles and at different levels – from customer assistants in stores to department managers;
from warehouse employees to office and logistics staff. Tesco recognises that employee motivation
is important for the continued growth of the company. This case study looks at how Tesco
motivates its employees by increasing their knowledge, skills and job satisfaction through training
and development and providing relevant and timely reward and recognition.
What is motivation?
Motivation may stem from personal interest such as keeping safe or from external factors such as
praise and reward. Different theories have been suggested for motivating employees. Pay is
considered as a primary motivator. Other motivating factors include:
• Appreciation of hard work
• A sense of achievement
• Responsibility and empowerment
• Opportunity for advancement
• A sense of challenge and enjoyment.
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A motivated workforce will work harder and achieve greater output in less time, therefore
reducing labour costs. It requires less supervision and demonstrates pride in its work, making a
greater impact on the customer. Motivated employees have greater concentration and are less
likely to make mistakes, cause accidents or be involved in conflict. They are also likely to show
greater loyalty to the company and have less absenteeism. An unmotivated workforce will be the
opposite, being dissatisfied with its role in the work environment. This can negatively affect both
the quality of the work as well as how efficiently employees carry out their jobs.
Tesco considers that the business depends on two groups of people – customers and staff. It
appreciates that staff are unique and have diverse lifestyles outside of work. To this end Tesco
supports staff with a work/life balance and offers reward through:
• Flexible working
• Free or reduced rate health benefits
• Discount gym membership
• Competitive salaries
• Staff discount
• Company share options.
Tesco has discovered that it is important to create trust and respect. It has found that by
valuing employees, providing realistic goals and an interesting environment for them to work
in, it increases employees’ motivation. At Tesco a motivated member of staff ‘works in
partnership with others to achieve individual and team objectives’. This means that he or she
focuses on customers, treats people fairly and is determined and devoted to receiving feedback
from others.
Taylor’s motivational theory
In 1911 the engineer Frederick Taylor published one of the earliest motivational theories.
According to Taylor’s research, people worked purely for money. In the early years of the car
assembly industry, work on a production line was based on producing quantity and was repetitive.
Workers were paid ‘piece rate’, that is, paid for every item produced. This approach of paying
workers by results was good for the business. The outcome was greater production but gave little
opportunity, encouragement or time for employees to think for themselves or be creative in what
they did. This limited people’s development and their use within the company.
Tesco’s Employee Reward Programme has some similarity to Taylor’s theory. Its financial
reward packages are one motivating factor. However, there are factors other than money
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which motivate people in both their personal and working lives. Tesco goes far beyond Taylor
and gives more than just simple pay increases. It supports the varied lifestyles of individual
employees through relevant and targeted benefits. Many non-financial factors can and do
motivate employees to improve their output. One such factor may be the desire to serve
people; others may be to improve personal skills or achieve promotion. A person may be
motivated to be a professional footballer not because of the salary but because they love
football.
The Mayo effect
Internal or external factors may motivate a person to change or develop their actions. For
example, an internal factor may be the desire to learn a new skill. This would reward the
individual. External factors include, for example, sales targets and incentives. A more negative
motivator might be no pay rise if targets are not achieved.
In the early 1930s the theorist Elton Mayo suggested that motivation at work was promoted
by such factors as:
• greater communication
• good teamwork
• showing interest in others
• involving others in decision making
• ensuring the wellbeing of others
• ensuring work is interesting and non-repetitive.
Mayo based his assumptions on research undertaken with workers at the Hawthorne plant of
the Western Electric Company in Chicago. His work resulted in the Hawthorne theory. He
suggested that boredom and repetitiveness of tasks led to reduced motivation. He believed
that motivation was improved through making employees feel important, giving them a
degree of freedom to make choices and acknowledging their social needs.
At Tesco the Mayo theory is seen to be operating throughout the company. Communication is an
extremely important factor in motivating employees. This may be through 1-to-1 discussionswith
managers, through the company intranet or newsletters orthrough more formal structures such as
appraisals. Line managers hold a daily Team Meeting to update staff on what is happening for the
day and to give out Value Awards. These awards can be given from any member of staff to another
as a way of saying ‘thank you’ and celebrating achievements.
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Tesco also promotes motivation through its many training and development opportunities.
Everyone has access not just to the training they need to do their job well but also to leadership
training to grow within the company. Tesco offers strategic career planning to help staff ‘achieve
the extraordinary’. In 2009 Tesco appointed 3,000 managers – 80% internally. As well as an annual
career discussion with every employee, the company also emphasises the development of the
whole person and has implemented a system of 360 degree feedback. This is a personal
development tool
which provides feedback from a selection of people with whom the employee works. This helps
employees to understand their behaviour, strengths and weaknesses within the workplace as
others see them. The idea of the programme is to ‘Take People with You’ and ‘To Gain the Hearts
and Minds of Others’ in order to improve individuals and get things done efficiently All Tesco
employees have a Personal Development Plan which they build through their 360 degree feedback
and other tools. This enables Tesco managers to offer meaningful feedback to employees to help
provide opportunities for continuous personal development. This personal approach helps
employees to reach their full potential by encouraging self-assessment and providing advancement
through ongoing training. It also enables individuals to take responsibility for their development.
This two-way relationship ensures that the employee is committed to the values of the company,
that he or she works in partnership with others and helps improve the business for customers.
Maslow and Herzberg
Abraham Maslow argued that humans are motivated by five essential needs. He formed a pyramid
demonstrating these needs which he called the ‘hierarchy of needs’: At the bottom of the pyramid
are basic needs, those that motivate people to work – food and shelter. Once these needs are met
through pay, individuals want safety and security through, for example, good job conditions. Social
needs refer to the need to belong, to be part of a group. Self-esteem may arise from a promotion.
Right at the top is Self fulfilment – the area for creativity, challenge and interest. Maslow suggested
that achieving one level motivates us to achieve the next. In 1959 Frederick Herzberg developed the
Two-Factor theory of motivation. His research showed that certain factors were the true
motivators or satisfiers. Hygiene factors, in contrast, created dissatisfaction if they were absent or
inadequate. Dissatisfaction could be prevented by improvements in hygiene factors but these
improvements would not alone provide motivation. Herzberg showed that to truly motivate an
employee a business needs to create conditions that make him or her feel fulfilled in the workplace.
Tesco aims to motivate its employees both by paying attention to hygiene factors and by enabling
satisfiers. For example, it motivates and empowers its employees by appropriate and timely
communication, by delegating responsibility and involving staff in decision making. It holds forums
every year in which staff can be part of the discussions on pay rises. This shows recognition of the
work Tesco people do and rewards them. Tesco staff can even influence what food goes onto its
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restaurant menus. Employees thus become motivated to make choices that will increase their use
of the restaurants.
Conclusion
Employee motivation is an important task for managers. Early motivational theory such as that of
Taylor suggested that pay motivated workers to improve production. However businesses now
need employees to have greater motivation and have a stake in the company for which they work,
as shown by Mayo. Maslow and Herzberg demonstrated that employees are motivated by many
different factors. Tesco provides opportunities for its managers and staff to take a share and a
greater interest in their own employment. Since every employee is an individual, with different
needs and aspirations, the process of reviews and personal development plans allows recognition of
their abilities and achievement, as well as potential development. This benefits the individual by
providing career progression. It also benefits Tesco by ensuring the business can deliver high levels
of customer service through its skilled employees. (Source: thetimes100.co.uk)
Questions:
1. Describe what is meant by motivation. What types of non-financial reward might a company use
to motivate employees?
2. Describe the effects of an unmotivated workforce on a company. How does Tesco benefit from
ensuring that its workforce is motivated?
3. Why is Taylor’s theory not relevant to companies and employees in the 21st century?
4. Evaluate the four motivational theories in the study, demonstrating how each relates to Tesco.
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