Factors Deciding Pay

Maslow described in his theory, professionals who are following this theory deflect their attentiveness to offering complementary pleasing interactions, more attractive work, and even more opportunities for self-fulfilment.

On other side, Herzberg in his theory shows that there are two basic needs of individuals such as cleanliness factors (environmental factors) and motivation factors. See (Appendix 3). Professionals who pursuing Herzberg theory, they reject money as a motivator and put attention on providing more job enhancements.

According to McGregor's theory, managers' may follow two different ideas which is theory X and theory Y. Pursuant to theory X, the average employees dislikes work and can avoid it whether he/she really know what to do or not, that's the reason employers suggest Theory Y which lead them to do excellent job and director offer opportunities to do a job done. However, McClelland targeted interest on providing employees the capability to persuade their needs for success, ability, and relationship.

Companies use both positive amplification and negative amplification to inspire employees. Managers may use positive motivation techniques to persuade employees to produce good quality job. Some professionals may use negative motivates techniques to encourage employees and stop them from bad manners. However, companies compensate their employees with both touchable products, as well as admire. Mangers may prize their employees by providing weekly or monthly reward or free lunches, many managers pay back their top employees by praising them.

For example: Tesco use two drive ideas - Maslow and Herzberg, see both hierarch in (Appendix 4). Tesco uses Maslow theory since it suggests the business if indeed they achieve one level then it motivates them to achieve the next one. Also Tesco aspires to stimulate its staff both by repaying interest to hygiene factors and by permitting satisfiers. For example, Tesco motivates its personnel by good communication, giving responsibility and affecting employees in decision making. Tesco permit the staffs to be part of the discussions on pay increases. This shows credit of the task that staff do and rewards them.

In Tesco they rewards staff for their works because it keep motivates them at the job and will keep on applying different motivation theories at the job. Sum incentive use by Tesco in a way to getting employees to welcome the complete value of their benefits package. Tesco also follow pension system and this will usually include pension assistance that the workplace creates on the employee's behalf and being process in payroll section. They also compensate employees by giving them extra benefits such as car insurance and private medical insurance, by special offers and special discounts. See Tesco's reward system in (Appendix 5).

Job evaluation is really an intensive process and it will need to have to check out some in a systematic approach. At the start of the process management must explain to its worker the reason of this program and importance of it. From then on a group has been fixed where all the proficient HR specialists and employees are included. On the next step organisation choose the job from the every team they are going to evaluate. Then the particular job investigates by the committee in detail. Next, the committee selects a method for the job evaluation. There are two methods which have followed to evaluate employment and they are

Analytical - things rating, factor contrast, proprietary brands; and

Non-analytical - job rank, job classification, combined comparisons

The other factors identifying pay:

The pay which is award to a work can be influence by various factors and that creates some difference between your tasks and the organisations. Those factors are the following

Size of the organisation


Skills and experience

Industry sector

Profitability of the organisation

Employee performance

There are two types of rewards: Extrinsic rewards are tangible rewards that staff receives using their good performance, such as bonus deals, salary raise, items, promotion, payment and commissions. Intrinsic rewards are inclined to give personal satisfaction to a worker, such as information, reviews, acceptance, trust and relationship.

Employee benefit systems are a positive strategy and provides actual motivation. Furthermore to financial thoughts; bonus systems take into account factors such as attendance, customer support, quality, group and specific performance. Also bonus items increase employees' drive and output. It enhances employees' morale and gives them self-esteem. However, a carefully organized bonus system can improve retention which helps protect the best employees

Salary raise is other styles of pay back system and it is one of many motivators of the employee, and yes it is the main element motivation behind an employee's performance.

Promotion is one the most crucial types of praise system, where an company reward an employee by moving them of their position to raised position. Promotion boosts employee morale and job satisfaction.

However, upgraded performance is an effectiveness of pay back system, where it helps employee to prosper performance because using this method an employee can get extra pay back forms the organisation. By the medial side of this incentive employees also put their efforts, skills and knowledge which help them to learn something new.

However, praise system also boosts profit, where a company has good possibility to make earnings because worker works truthfully and carefully. In addition, it helps to bring positive internal contract between employees and the organisation and creates an improved working environment and helps company to keep gifted, potential employees with them.

There are some methods that use by Tesco to screen their employees' performance. Tesco use observation and reviews to monitor their employee performance. Upon this system Tesco hire someone for monitoring the performance of the worker and after providing responses straightforward. By observing and providing feedback Tesco can provide the accurate condition to the employee which is expected to them.

Tesco also use performance expectations and it is one of the worker performance monitoring system where performance has been compared with the criterion and there employee need to accomplish this criterion. Under this technique performance must have to be sensible, measurable and also have expressed in terms of energy, quality, cost, volume, effect, or types of performance.

Performance analysis is another method that plan by Tesco to determine the actual job performance of an employee against chosen performance expectations. In Tesco employees' are interviewed to speak about their performance to recognize talents and weaknesses, and to create a plan about how precisely weaknesses, can be improve and exactly how strengths can be increase.

Tesco also runs on the method known as "360-level appraisal" (Business Circumstance Studies, 2013). Where in this method all Tesco's stakeholders examine an employee's performance and give them feedback. For instance, manager of 1 department get feedback from their administrator, from the HR section and their team.


The conclusion of this report demonstrates employees' desire and reward are very important. You will discover many types of theories of motivation such as Maslow's, Herzberg's, McClelland's and McGregor's ideas. Each theory has a somewhat different view of a leader's and employee's drive. Motivation is managers' action to affect employee's behaviour at work, so that perform as required to be able to attain organisational goals. Reward management can be view as a kind of management practice where employees are rewarded because of their performance. Rewards can be tangible and intangible advantages to employee as part of employment romance. Employees see compensation as a come back in exchange of the performance being loved by employer.

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