Writing a Problem Statement
Problem/ Issue: The level of employee performance of Tesco is not improving despite significant resources being allocated for employee rewards
“Why” Question: Why employees are not improving their performances even after receiving sufficient intrinsic and extrinsic rewards for their expected performance?
Employees lack sufficient skills
Employees are not finding the rewards satisfactory
Supervisors are not effective
Rewards cannot improve abilities
Value of the rewards are not enough
Inaccurate performance feedback
Employees are not motivated enough
Employee issues
Management issue
Reward issues
Sorting:
Inaccurate performance feedback
Employees are not finding the rewards satisfactory
Employees are not motivated enough
Rewards cannot improve abilities
Employees lack sufficient skills
Supervisors are not effective
Connection: In this, today’s highly competitive and ever-changing business world employee retention is the major concern for many organizations. Employees are the assets of the organization and retaining them will give the organization competitive advantages and sustainability in the modern business environment. Rewards are given to the employees with the aim of increasing the productivity of their as well motivate them to work more enthusiastically to achieve the goal of the organization. As employees are the major strength of the organization they need to be motivated and give their best of efforts so that they can contribute to the organizational goal achieving. There are many ways that organization can motivate the employees those can be financial and non-financial rewards which had a great impact on the performances of the employees. There are primarily two types of reward systems; extrinsic rewards to be one that is giving a financial reward to the employees for them. Offering additional payments, bonuses are common form extrinsic reward. On the other hand, in case of intrinsic reward, the rewards come in non-monetary forms (Moon, 2014).
Although better rewards should lead to enhanced performance, Tesco is having a hard time improving the overall level of the employee performance even with what they think to be sufficient reward.
Five Whys Root Cause Analysis:
Defined Problem: Rewards are turning out to be ineffective when it comes to improving the level of employee performance.
Why is the overall level of employee performance in Tesco is not increasing?
The ability and the skill of the employees are not up to the mark
Why is that?
Due to a flawed recruitment process and lack of training the employees are not being efficient
Why is that?
The management style is not effective enough to recognize the skill gap
Why is that?
Due to lack communication and ineffective supervising
Why is that?
Supervisors and recruiters are concentrating more on achieving their individual quotas
Why is that?
There is a lack of inspiration leading to teamwork and rewards are not designed in a way where collaborated teamwork is especially rewarded.
Validation Root Cause:
The management style is concentrating more on individual goals while collective achievements are not being valued enough. Due to such individualistic management style, a clear lack of effective communication is hampering smooth flow of information. Therefore, the skill gap of the organization is slowly growing. Even though rewarding can increase motivation to improve performance, without training and appropriate job placements the performance cannot be improved as rewards cannot increase the skills and abilities which are two core components of employee performance.
References
Moon, T.C., Beck, S. & Laudicina, R.J. (2014), "Retaining Experts: Administrators' Views on Retention Incentives and Older Employees", Clinical Laboratory Science, vol. 27, no. 3, pp. 162.
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