ROLE OF CORPORATE GOVERNANCE IN OPTIMISING WORKFORCE PRODUCTIVITY
Abstract:
The current study supplies detailed analysis and evidences of corporate governance practices of Tesco and the process how effective governance can impact on the workforce productivity. In order to research on this topic in a systematic way, the researcher has divided the entire study into several interlinked parts. In the introductory chapter, the author has mentioned the primary aims and objectives, along with rationale of study to view the significance of the research in current context. Tye past studies and evidences are analysed in second chapter to structure a literature on the topic undertaken. According to theoretical evidences, corporate governance is the set of rules or principles that firms employ in organizational procedure to execute a fair and ethical trade practice. However, different factors affect the employee performance as being present in the governance policies. Tesco basically follows standard governance structure whereas there is space to widen the area of improving workforce efficiency by upgrading governance. In the methodology chapter, the author has mentioned the best possible approaches that have been employed thorough selecting right blend of research paradigms. Besides positivism, the researcher has selected deductive approach and descriptive design. The data has been collected via survey from employees and interviews with managers.
The gathered information has been processed in fourth chapter using analytical tools for the purpose of a systematic representation. The analysis of the same has been performed in this chapter targeting to link with the existing literature as conclusions could be linked with initial objectives. The analysis has explored potential options to improve the governance of the organization that better employee productivity could be promoted. However, the stages of improving corporate governance policies has been mentioned in chapter five based on the key findings and analysis.
Chapter 1
Introduction
1.0 Introduction:
Corporate governance plays a significant part behind the growth of a business organisation particularly in the modern day context where organisations need to constantly conduct business operations in a stiff competitive environment. The board level leadership has gradually become the core of business functions and that is the area that determines the level of competency an organisation is likely to experience in order to thrive in the relevant sector. In the words of Metzger et al. (2005), corporate governance aligning with the board leadership is directly linked with the corporate reputation of a business organisation. With the appropriate sort of leadership aspects, organisations can manage to introduce advanced core values that could ultimately improve the chances of prospering in the industry.
Considering the proposition of Trevino et al. (2009), a successful corporate governance framework would promote effective stakeholder contribution to the respective business. Investors along with other stakeholders in the modern era understand that addressing the social, environmental and governing responsibilities are important in order to ensure long term business sustainability. Proper analysis of the external business environmental factors generally helps in developing contingent business models that would provide a flexible system to the organisations to tackle adverse scenarios while conducting successful business operations (Jacobs, 2004). From a financial perspective, proper assessment of the business environmental factors would determine the accountability of the business and profit margin and therefore the board members are responsible for dictating the growth of the business through the strategic directions.
One of the contemporary management practices in the modern day context is the involvement of the employees in management decision making process so that a learning work culture can be integrated within the work environment. Dandino (2004) argued that in majority of the cases, corporate governance is limited to the top management only while considering the perception of the organisational employees can shed light on a number of concerned areas. The inclusion of the organisational employees in the management decision making process would not only mean greater dimension of thinking at the time of decision making but also employee empowerment that could contribute to increase the workforce productivity.
The prospect of stakeholder participation by means of inclusion of organisational employees in the decision making process has been a major motivation behind the choice of the research topic as the process could help in enhancing workforce performance. In order to test the impact of such process, the case of Tesco would be highlighted which is also the chose organisation for the dissertation. The workforce of Tesco is found to be quite dynamic in nature mainly because of the flexible management system of the organisation. Hence, the dissertation would aim to evaluate the corporate governance policies and the probable impact of such policies on the workforce performance of the enterprise.
1.1 Background of the study:
The corporate governance concept is associated with the practising of power for the betterment of social and economic scenario, involving the stakeholders of business organisations. In the words of Covin and Slevin (2009), employees are the most important asset for business organisations nowadays and are needed to be managed properly so that perceived workforce performance could be expected. However, one of the major issues in the contemporary business organisations is that modern business firms focus too much on the shareholder value neglecting the perception of the workforce. Baron and Kenny (2006) argued that business organisations often neglect the workforce motivation while prioritising getting increased shareholder value. The approach however might impose a negative impact on the organisational workforce as a result of which, workforce productivity could be hampered.
Corporate governance is considered to be the key foundation for business organisations to be more productive while achieving a long term product life cycle. Ross (2003) established the fact by proposing that corporate governance policies are developed keeping in mind the aspects of business sustainability. Although the accuracy of the corporate governance policies can be critical at times but the aim of such policies is always achieving a continuous growth giving rise to sustainable business development. Novikova (2004) mentioned that organisations in contemporary business environments are particularly prioritising the corporate governance policies in order to tackle the changes in business environment. The adopted corporate governance policies can often dictate the level of firm’s competency in the respective sector and therefore, the accuracy of the corporate governance policies can influence the long term prospect of the business.
Previous researches in the similar domain established the fact that management policies and firm’s competency level are associated with each other with a better governance policy can push organisations towards higher market positions (Bolbol et al. 2005). Considering the findings from the study of OECD, corporate governance can be referred as a system that helps directing or controlling business organisations. The corporate governance framework promotes the roles and responsibilities for the associated stakeholders of a particular business organisation so that the human participants can be aligned and engaged to fulfil a shared cost. Despite corporate governance being limited to the top management only but successful organisations consider the perception of organisational employees to develop relevant governance policies. As mentioned by Brown and Caylor (2004), the perceived corporate governance policies would always be a viable option to optimise the organisational performance.
1.2 Background of the chosen organisation:
Tesco is currently enjoying the top spot in the UK’s retail sector and is considered as one of the largest retail chain business in the world. The brand is operating in more than 12 different international markets and a team of more than 530,000 people are engaged in operational activities. Considering Tesco’s operation in UK alone, the brand is operating in more than 3,370 stores managing a workforce consisting of 310,000 employees (Tescoplc.com, 2014). A significant number of scholars believe that the reason behind the success of Tesco has been due to the approach of the brand in managing a vast workforce. The joint contribution of the Audit committee, Corporate Responsibility Committee and Nominations Committee helps the brand in following a sustainable workforce management scheme, resulting in continuous workforce improvement.
1.3 Research aim:
The current research aims to investigate the role of corporate governance in effectively managing the organisational workforce and thus optimising the workforce productivity. The research also aims to evaluate the case of Tesco and judge whether Tesco’s corporate governance policies are helping in optimising the workforce productivity.
1.4 Research objectives:
The following objectives serve as the guidance for the research study achieving which, the problem area is going to be addressed:
- To assess the significance of corporate governance in enhancing workforce productivity.
- To identify Tesco’s corporate governance policies in respect to workforce management
- To determine whether Tesco’s corporate governance policies is contributing towards improved workforce productivity.
- To evaluate strategic options for the betterment of corporate governance at Tesco’s so that better workforce productivity can be experienced.
1.5 Research questions:
Following research questions are going to be addressed during the study to fulfil the research purpose:
- Is effective corporate governance necessary for increasing workforce productivity?
- What are the corporate governance policies followed by Tesco to effectively manage the organisational workforce?
- Are the corporate governance policies followed at Tesco useful in enhancing workforce productivity?
- How can the corporate governance policies of Tesco be improved so that better workforce productivity can be experienced?
1.6 Research purpose:
The purpose of the study is to assess the significance of corporate governance policies and whether such policies enable business organisations to optimise workforce performance. Corporate governance is an integral part in modern day business environment and helps structuring the organisational framework with a bundle of specific rules and responsibilities for the associated stakeholders. Hence, the current research study would try attempting to evaluate whether corporate governance enhances workforce performance. Tesco is following an effective corporate governance policy to manage the workforce and the recent statistics suggest that the brand has experienced a desired performance level from the workforce. Hence, the study would try assessing the corporate governance policies of Tesco and determine whether the followed policies at Tesco have some roles behind enhancing workforce performance.
1.7 Research rationale:
Corporate governance policies have turned out to be a significant aspect of business particularly in contemporary business environment. The variables involving the business environment impact significantly on the organisational performance and therefore modern day organisations try following a compatible governance policy so that the business environmental factors can be tackled and sustainable business growth can be experienced. The availability of resources and prospect might not guarantee long term success and therefore organisations rely on particular governance policies to utilise the resources and fulfil the potential. The motivation behind the current study has been the importance of corporate governance policies and the influence of such policies in enhancing the workforce performance. Tesco has been well renowned for respective corporate governance policies and therefore the brand is the chosen organisation for the current research study. By analysing the research context on the basis of Tesco’s scenario, conclusion can be made whether effective corporate governance can enhance workforce productivity.
1.8 Structure of the dissertation:
The overall dissertation has been conducted using six chapters including introduction, literature review, research methods, data analysis and conclusion. The findings from each of the chapters contribute to the overall findings from the research study and eventually the conclusion has been derived. A brief overview of each of the chapters has been given below.
Chapter 1: Introduction
This is the introductory chapter briefing the context of the study. The chapter introduces the aim and purpose of the research study along with the research objectives and research questions. A background of the study has been provided regarding the research domain and a rationale has been given highlighting the justification for the choice of research.
Chapter 2: Literature review
A range of existing literatures along with theories have been discussed in the chapter that relates to corporate governance and workforce performance. The literatures have been critically reviewed considering the proposition of several authors and scholars so that the gap within the existing literatures can be identified. The chapter creates a theoretical platform for the research study and the findings from the chapter have been used later during data triangulation.
Chapter 3: Research methods
The chapter covers the methods and strategies adopted by the researcher during conducting the current research study. Methods such as philosophy, approach and design relating to the research study have been highlighted in the chapter followed by data collection, data analysis and sampling method. A timescale concerning the research study has also been highlighted at the end of the chapter.
Chapter 4: Data analysis and findings
The primary data collected during the study have been analysed in the chapter. The overall data analysis have been categorised into two segments including quantitative and qualitative data analysis. Quantitative data have been represented using graphs and charts while qualitative analysis has been done considering the responses of Tesco’s managers.
Chapter 5: Conclusion and recommendation
This is the final chapter that summarises the overall findings from the research study. The research objectives have been linked with the research findings in order to gauge the accuracy. On the basis of the findings, some recommendations have been provided which can be followed by Tesco to improve workforce productivity.
1.9 Summary:
The chapter introduces the intention of the research study. Initially a background of the study has been highlighted followed by the aim, objectives and research questions that are meant to be addressed in the due course of the research. Corporate governance is found to be a significant strategic option for business organisations nowadays in order to improve workforce performance. Hence, the study has been conducted on the basis of this aspect and wishes to evaluate the role of corporate governance policies in enhancing workforce productivity. Accordingly, the chapter promotes the purpose of the study along with the rationale. At the end of the chapter, the structure of the dissertation has been highlighted.
Chapter 2
Literature Review
2.0 Introduction:
The chapter is all about the brief about the theories and evidences regarding the topic. The key aim of this chapter is to provide detailed information regarding the literature of topic under taken to support the entire research obtained desired outcomes. However, this portion of the research is also helpful in conducting appropriate data collection process that outcomes could assist the author reach at optimum conclusion. Here, the chapter offers different dimensions of corporate governance and its role in optimising workforce productivity. It also enlightens the factors affecting workforce performance policies of Tesco. Therefore, how Tesco executes its governance policies in workforce management to improve productivity has been proven throughout the entire research. The current section also highlights the standard action plans that Tesco, being an international retailer can employ into its governance policies Moreover, undertaken literatures also help in analysing the outcomes in context of the objectives and existing evidences.
2.1 Corporate governance:
Corporate governance is the collection of rules and practices through which the organisational activities in different sections are monitored. However, the term has been defined by Bathala and Rao (2005) as the sum of process and norms that an organisation develops to address the interest of different stakeholders of the company. On the other words, corporate governance policies value to its stakes including shareholders, management, customers, creditors, financiers, government and communities. Therefore, as opined by Ross (2003), the corporate governance offers a clear frame to attain primary objectives of the company. In context, the governance policies encompasses each corner of the management activities involving action plans, intra-organisational monitoring process, corporate activities and performance measurement.
Novikova (2004) has acknowledged that corporate governance structure of the organisation is based on the principles of conducting the entire business strategies with integrity and sufficient clarification. Supporting to this statement, Bolbol et al. (2005) has stated governance process of an organisation ensures that management processes in every sphere of the organisation are executed in a proper manner to meet societal expectations through resource optimisation. However, governance policies vary over the organisations depending on business type and mode of operation, determined via setting objectives.
2.2 Significance of corporate governance:
Most of the companies currently have endeavoured to have a high standard of corporate governance to demonstrate effective corporate citizenship rather just focusing on profitability through environmental awareness, ethical aspects and social activities based on governance practices. As stated by Baron and Kenny (2006), good corporate governance bases effective decision making process by sketching out a well balanced accountability on a clear understanding regarding the roles and responsibilities of the organisation under certain circumstances.
On the other side, Novikova (2004) has mentioned that an effective corporate governance enables the organisation to deliver improves and effective services meeting customers’ requirements. In addition, Ross (2003) has depicted that good governance structure frame the internal system of the organisation through detecting service requirements and maintaining required quality. Consequently, poor governance fails to meet the requirements of the stakeholders and thus result financial failure.
Corporate governance is effective while ownership structure is on changing mode to cater a transparent view of the business activities. However, key importance of corporate governance has been demonstrated by Brewster (2009) as the risk mitigation tools where it prevents various corporate scandals, fraud and offensive liability of the firm. Therefore, it enhances the positivity in mind of the stakeholders. Additionally, Bolbol et al. (2005) has mentioned corporate governance as a blend of shared philosophy, practices and culture of the organisation whereas employees could be benefitted from such internal structure to continue the fain business activities towards a sustainable future.
The governance policies enable the organisation to promote a transparent and effective market structure whereas Ross (2003) has stated it as law, articulating the segmentations of responsibilities among several organisational or departmental bodies like supervisor, regulations and empowered authorities. Corporate governance promotes equitable treatment of the shareholders that also includes the minors and foreign investors. It has also been evidenced that corporate governance ensures that the corporate disclosures are made on time and in an accurate fashion on all the materials available in organisation such as financial provision, workforce performance and ownership structure of the company.
However, Novikova (2004) has observed that there are some attributes affecting the corporate governance of the company. In context, Bolbol et al. (2005) has mentioned basic four attributes, skills and knowledge, process, relevant information and organisational behaviour to be effective in developing effective and interactive governance within the organisation. In case of the current study, corporate governance is one of the crucial part of Tesco to pursue consistent and fair business practices globally to ensure better productivity and quality performance.
2.3 Workforce productivity:
Workforce productivity can be defined as effective measurement of economic growth of the country. In this context, Datta et al. (2005) has stated that workforce productivity measures the real GDP produced by the workforce during certain time interval. Generally, the workforce productivity determines the amount of goods and services produced within an hour of production. Improvement of workforce productivity is based on some basic factors like, investment and savings, technological advancement and enrichment of human capital. Therefore, as opined by Bolbol et al. (2005), workforce productivity can be recognised as one of the key determinants of measuring sustainability of the organisation. However, Brewster (2009) has argued that productivity itself is dependent on certain range of factors and thus varies over a little change in situational demand including those concerned factors. On the other hand, Beaumont et al. (2000) has opposed that workforce productivity could be enhanced under a strong framework of the rules and fair practices. Therefore, each organisation in current context needs to employ a potential governance structure in business to obtain desired outcomes within a certain projected time interval.
2.4 Factors affecting workforce productivity:
The following factors have a great impact on the productivity of concerned workforce.
Time:
Time is one of the crucial factors affecting productivity in the form of working schedule and total time span of the project. As derived by Baron and Kenny (2006), from the previous researches, the most frequent reason for lower productivity is fatigue, absenteeism, low morale, lack of proper supervision and no of reworks.
Type of project:
As mentioned by Covin and Slevin (2009), effective productivity is highly influenced by adequate space required by the employees to perform without any interruption from the other employees. It has been evidenced that involvement of too many employees within a limited space could create conceptual conflicts and decrease productivity.
Health and Safety:
Health and safety is now the current issue in every organisation determining the productivity. However, Brewster (2009) has shaded that frequent accident could decrease the workforce productivity. In this context, accident in various zones could result a long term interruption in continuation of the project. Thus, employment of safety regulation could help the workforce to reduce frequency of accidents significantly, in order to increase productivity.
Quality:
Ineffective machineries and equipments could result poor quality of products and services. However, in addition, Brewster (2009) has mentioned poor quality of raw material to be responsible for lowering productivity. It is generally known that old machineries are leads to a greater number of breakdowns resulting relatively longer hours for completion of the entire tasks.
Management factors:
Effective productivity requires potential managerial skills and attitudes to conduct skilful supervision of every step of the project. It has been experienced that the labour productivity could be lower in organisation instead of having improved technology and well-trained manpower. As opined by Covin and Slevin (2009), management works as a catalyst for creating both the capability and willingness for greater productivity as potential and skilled managers can derive high quality outcomes from average or below average workforce.
Motivation:
As opined by Baron and Kenny (2006), motivation is the basic factors affecting workforce productivity through influencing willingness and urge of commitments towards the tasks allocated. However, it is the responsibility of managers to provide effective offerings based on requirements of employees.
Apart from the above mentioned factors periodic supervision, natural factors and political variation highly impacts of employee productivity. In this context, Baron and Kenny (2006) have opined that every project comes across some specific designs, way of conduction and other relative specifications where proper supervision on these areas could enhance the quality of outcomes in the form of goods and services. On the other hand, Brewster (2009) has mentioned natural factors to be also responsible for reducing productivity. However, labour productivity due to natural factors like calamities depends on the weather condition and specific geographical locations.
Therefore, Tesco needs to undertake the above mentioned factors through aligning those with the governance policies that a motivated and highly capable workforce could be produced. Thus, going through this way workforce productivity could be effectively enhanced through potential implementation of governance principles into project planning.
2.5 Alignment of corporate governance and workforce productivity:
In the opinion of Becht et. al. (2007), effective and good corporate governance is successful only when it is aligned with the workforce productivity because corporate governance has a direct impact on the efficiency and effectiveness of the production process. However, Bebchuk and Hamdani (2009) argued that workforce productivity not only includes employees engaged in the main business operations or production process of the firm but it also includes employees of other departments that supports the principle operation or production process like Human resource, Finance, Sales and marketing, and Administration. Hence, the policies, principles, rules and regulations incorporated in the corporate governance have to increase productivity of the production teams and supporting departments.
Corporate governance and workforce productivity can be aligned by collecting feedback from all the departments, analysing those feedbacks, incorporate the inputs of feedback in the decision making process. In addition to this, the company can conduct brainstorming with the workers to generate more creative solutions to the existing problems. Allen (2006) opined that conducting monthly meetings with the different departments can help in better alignment of corporate governance with the workforce productivity. Monthly meetings would further help to identify the problems faced by the employees. However, it is essential to maintain the confidentiality of the feedbacks or complaints so received.
Brav et. al. (2008) stated that mere formulation of sound corporate governance policies would not help an organisation unless the same is followed by proper monitoring and evaluation. The success of corporate governance depends to a great extent on the practical application of the strategies. Identifying problems, conducting brainstorming and other methods of employee engagement to generate alternative solutions, selecting the best solution, implementing the solution, monitoring performance, periodical review, and taking corrective measures if needed can be considered as the sequential step of developing corporate governance policies. This increases productivity to a great extent as employees feel important and are aware of the implications of the decision taken.
In addition to this, the company can resort to 360o feedback mechanism for a fair performance appraisal. As there exists a positive relationship between corporate governance and workforce productivity hence improved corporate governance would ensure better workforce productivity, both quantitative and qualitative. Enhanced workforce productivity would ensure increased profits to the organisation and better returns to the shareholder. In other words, corporate governance if aligned with the workforce productivity can directly or indirectly benefit all the stakeholders of an enterprise. However, Driver and Guedes (2012) opined that alignment of workforce productivity with the corporate governance is effective unless it adversely affects the long-term sustainability and profitability of the firm.
2.6 Perceived corporate governance policies:
Anderson (2004) stated that the advent of globalization and increase in trade and complexity of operations have resulted in development of a perception of following effective corporate governance in order to control any kind of bureaucracies. As several untoward incidents are quite common in the operations in the sector, it is required to follow certain strategic policies that would prevent any occasion of malpractice and even satisfy the stakeholder’s interest. However, the practise of corporate requires necessitates the practise of the following four aspects at workplace: integrity, bonus culture, regulatory framework and director’s training.
Westphal and Khanna (2012) mentioned that ethical practise of latter four corporate governance aspects would help a specific business in operating as per the stakeholder’s satisfaction, bring about workplace satisfaction and even be able to attain the desired stakeholders (customers) expectation. However, often there is a clash of ideas with regards to denotion of a specific work process to be ethical or not. In the event of being solely profit centric or increasing the shareholder’s value, the top management follows policies that might not be actual form of corporate governance. There is thus a lack of integrity between the top and lower management level.
Fay and James (2008) criticized that the current practise of corporate governance in several workplace is still not an integral part of management. It is rather a ‘box ticking exercise’ and is rather followed by introducing more regulation. However, the management’s perspective of merely developing fresh policies is just a minor part of corporate governance. It success can only be measured at the time of its successful implementation at work.
Internal stakeholder’s (staffs) derive satisfaction on the availability of bonus culture at work culture. Although the current remuneration policies that are being practised at the workplace is perceived to be apt by top management level, often the lower level staffs feel that the same is not effective in nature. Boselie et al. (2007) stated that although the current remuneration policies that are practised at workplace are focussed to prevent credit crunch or resulting financial crisis, its actual worth is often doubted.
Datta et al. (2009) even stated the essentiality of maintaining a proper Director’s Training in order to be sure of abiding to a good governance practise at workplace. However, often the Director does not acknowledge such importance and consider them to be enough to solely practise the concept at work. It thus often results in improper performance and stakeholder dissatisfaction. Recent reports have also pin pointed that the employees’ perception to corporate governance is limited to the current use of social media for communication and maintaining external contact. However, corporate governance has more to do than merely communicating with different stakeholders via the virtual media.
2.7 Role of corporate governance in workforce performance:
Guerrero and Barraud (2010) pin pointed that corporate governance positively impacts workforce performance by developing a integrative performance and operational attitude between the shareholder’s, board of directors and the management of the company. Often organizations fail to practice effective corporate governance as a result of not being able to maintain healthy corporate relationship or reduce any form of conflict between the two. Thus, in order to ensure the practice of better workforce performance, the need is to take effective strategic decisions. The undertaken decisions are all focused on developing the skill set and make the staffs even more motivated towards developing even better performance (Tescoplc.com, 2014). The following are the process by which corporate governance assists in developing the workforce performance of an organization:
- Develop a clear structure decision making and accountability:
Westphal and Khanna (2012) stated that corporate governance ensures that staffs maintain accountability at work and practise transparent decision making. This practice of transparent decision making develops a sense of being responsible towards own work and prevent from being involved in any issuers such as scam or bureaucracy. Also by developing a sense of accountability at workplace, the staff develops sense of being motivated towards delivery of quality service and be wholly involved in decision making for customer satisfaction and attaining organizational benefit.
- Creates a framework of gaols and policies for personal and organizational progress:
Fay and James (2008) highlighted that corporate governance necessitates the development of framework of goals and policies to guide organizational progress. However, it even follows a strategic process to build the skill set and performance of the staff. As in one hand, skill development helps in building the capability of the workforce, performance management ensures that they do not deviate from the required standard and instead are wholly focused towards even better performance.
- Lowers wastages, risk and mismanagement:
Fay and James (2008) acknowledged that the corporate governance benefits by practise of total quality management to reduce any wastage, risk and mismanagement. Any event of wastage could increase the possibility of rising operational cost and customer dissatisfaction. Instead, the present concepts ensure developing products and offering services as per customer preferences and thus meet the desired stakeholders’ performance. Thus, on the whole the practise of effective corporate governance is beneficial to build the performance metrics from the current level to even better standards.
2.8 Employee participation in corporate governance policy making:
Corporate governance can be defined in different ways. Fundamentally corporate governance refers to the system of structure, right, duties and obligations through which corporations controlled and directed (Bebchuk and Hamdani, 2009). The structure specifies the distribution of rights and responsibilities among different participants such as board of directors, shareholders, managers, auditor, creditor, regulator and other stakeholders. Basically governance is a mechanism for monitoring the actions, policies and decisions of corporate.
According to Brav et. al. (2008), employee participation is very necessary in corporate decision making. It is necessary to refer to several dimensions of participation method. One issue is the extent to which participation centres on direct involvement by an employee. Second issue is whether the participation is based on task related issues of immediate relevance to individual employees as the performance of duties or it is concerned with the wider view of company policy. Third dimension of employee participation describing the nature of involvement formally accorded to employees (Telegraph.co.uk, 2008).
The philosophy of ownership which emphasises the importance of employee control and employees involvement is decision making is seen in workers’ cooperatives (Allen, 2006).
Participation is necessary for individual self development. Kim and Nofsinger (2007) opines that, it is seen that right emanating from both employment and ownership is the main vehicle for self development and expression. Participation generally takes a direct form and ranges from coffee and hygiene issues to the business strategy. Participation has two characteristics:
Individualistic characteristics: Here individual employee gives opinion regarding the work flow, work force dynamics, the strategies etc.
Collectivist characteristics: In this method corporate policy is often determined collectively in regular, or may be weekly meetings of all employees, but equal emphasis is normally placed on individual control to perform a task without maintaining any formal hierarchy (Ferreira et. al. 2007)
Generally in larger co-operatives participation takes more indirect form. DeNisi and Kluger (2006) argued that there are clear management special norms and hierarchies which can limit the extent to which the workforce can participate in management decision making policy on a day-to-day basis.
2.8.1 Advantages of employee participation:
Harnessing employee skill: By active participation employee skill can be enhanced in terms of variety of work type and structure.
Commitment enhancement: According to the author, employee participation makes employee to feel very important entity in organization. As a result employee shows strong commitment to job responsibility and to the organizational development also.
Apart from this the distance of some employees from direct observation could encourage the use of some forms of direct participation such as autonomous decision making to secure control of task performance (Mason et al. 2008).
2.9 Corporate governance policies of Tesco:
From the Tesco’s annual report, Tesco has a number of strong strategies and plans in place to optimize shareholders value over a proper time period. Cawley et. al. (2008) opined that, Tesco’s corporate governance begins with the recognition that it is supporting the core values and that is not a set of rules. Core values are depicting what is acceptable and what is not acceptable.
As per the governance structure of Tesco two parts are there-one is board and another is executive committee. Board exists of Nomination committee, Audit committee, Remuneration committee and corporate responsibility committee. Executive committee consists of commercial committee, compliance committee, digital retailing committee, people matters group, property strategy committee, social responsibility committee and technology committee (Tesco.com, 2014).
Figure 1: Board Structure
(Source: Files.the-group.net, 2014)
Board: The work of the committees under the board is essential to the effective operations of the board (Rousseau and Mccarthy, 2007).The committees under the board consider in greater depth on behalf of the board, the issues which are relevant to the terms of reference and report to the board after every meeting.
Executive committee: Denis (2010) opined that board delegate’s responsibility for formulating and implementing the strategic plans of the day-to-day operation of the group to the CEO. Group executive committee has a number of sub-committees which assist in its work and ensure that:
- Strategic choices are considered properly.
- Growth opportunities are fully discussed.
- Progression against the priorities is reviewed
Figure 2: Group Executive committee
(Source: Files.the-group.net, 2014)
Nomination committee’s role:
Reviewing the board structure, size and compositions are key functional areas of nomination committee.
Audit committee’s role:
Aggarwal (2010) opined that the key responsibility of audit committee is to appoint external auditors, reporting to the committee and review the financial statements relating to the financial performance of the company.
Corporate responsibility committee’s role:
It defines the group’s corporate and social obligations as a responsible citizen and approves a strategy for discharging the group’s corporate and social responsibilities (Ertugrul and Hedge, 2009).
Apart from these corporate governance policies of Group, Tesco include:
Code of business conduct:
It depicts the most important responsibilities towards the organization and obligations while working for Tesco.
Whistle blowing:
The policy is being operated by the groups and reviewed annually.
Anti corruption:
Wallace and Zinkin (2005) opined that any act of bribery, corruption, fraud is treated in Tesco with extreme seriousness and the Group CEO has communicated zero-tolerance approach to all forms of bribery to all colleagues.
Risk and uncertainty management:
A successful risk management process can balance risks and reward roles on sound judgement of likelihood and impact (Ferreira et. al. 2007). Risk management process is designed to encourage entrepreneurial spirit and it provides assurance that risk is totally understood and managed.
2.10 Contribution of Tesco’s corporate governance policies towards workforce productivity:
Lot of contribution of Tesco’s corporate governance policies toward workforce productivity can be seen:
2.10.1 Clear picture of new growth opportunities and strategic choices:
According to the annual report, Tesco is offering new growth opportunities to the employees. According to Allen (2006), proper growth opportunity is required to motivate employees and to enhance employee performance. On the contrary Driver and Guedes (2012) opined that proper growth opportunities can be derived by drawing a proper strategic choice. Tesco is maintaining a strong corporate strategy which is enabling Tesco to give a clear picture of growth opportunities to employees.
2.10.2 Code of conduct and workforce productivity:
Code of business explains the colleagues about the most important individual responsibilities and obligations and all colleagues need to comply with it (Becht et. al. 2007).To enhance workforce productivity proper code of conduct is necessary which is being strictly followed by the management of Tesco.
2.10.3 Whistle blowing and workforce productivity: Today, in each and every business operation of confidential phone and email service is required highly. It enables the colleagues to report anonymously any instances of malpractices within the business. Such issues include corruption, fraud, dishonesty and any bad practices which may prejudice the colleagues, customers or the environment. According to Brav et. al. (2008), this policy of Tesco made the employees bound not to make any unfair practice and corruption. Again Allen (2006) opined that productivity and employee’s security is directly proportional and employee security is also depends on fair practices of codes. Due to the fair practice code employees are bound to go through a set of fair code of conduct thus increasing in productivity (Tescoplc.com, 2014).
2.10.4 Risk management and internal control towards the increase of workforce productivity:
According to Driver and Guedes (2012), a key part of an risk management process ensures that colleagues have a good understanding of group’s strategy and the policies, procedures, values and expected performance. The company has a structured communication program that enhances the employees understanding and results in a better productivity from employees end towards the company.
2.10.5 Clear framework of goals and policies for both employee’s and organizational progress:
Driver and Guedes (2012) opined that corporate governance necessitates the development of frame work for policies and goals to guide personal as well as organizational progress also. Fundamentally skill development helps in forming and increasing the capacity of workforce while performance management ensures that it cannot deviate from the standards and need to follow the guideline to enhance the productivity for the betterment of the organization as well as for personal development also.
2.11 Optimizing workforce performance through employee engagement in corporate decision making:
In the view of Allen (2006), employee engagement has a direct effect on the productivity of the organisation. Put it differently, employee engagement leads to increase in productivity. Granting adequate independence in performing tasks make employees efficient during the course of time because they learn to complete the tasks with minimal interference of the management. This offers two major benefits to the organisation; firstly, this practice saves time of the managers that can be utilised in a better way and secondly, self-sufficient employees help an enterprise to create better leader or managers in the future. However, Bebchuk et. al. (2006) argued that employee engagement is effective only for job that involves repetition of same tasks time and again. For jobs involving variety of tasks, employee engagement is not much effective.
Furthermore, involving employees in the decision-making process reduces resistance and other negative impact from employees at the introduction of new policies or decisions because employees know that the decisions were taken jointly by the managers and employees. In contrast DeNisi and Kluger (2006) argued that employee engagement in the decision making process can make the employees put personal preferences over the organisational interests. This reduces the effectiveness of such decisions.
However, Ferreira et. al. (2007) stated that employee engagement increases confidence in employees which is crucial for the success of any organisation. In addition to this, engagement and empowerment of employees creates loyalty among employees and this positively affects new employees in the firm.
Employee engagement and empowerment encourage creativity and innovation which helps the firm to gain a sustainable competitive advantage over its rivals in the market. More the number of perspectives involved in the decision making process more sound would be the decision (Bebchuk et. al. 2006). An organisation can offer prizes or additional variable pay to the workers who provide the best creative ideas to the organisation. In contrast, Ferreira et. al. (2007) argued that involving employees in the decision making process reduces the confidentiality of the ideas and decisions that an organisation tends to implement in future. This indeed negatively affects the competitive advantage of the company.
2.12 Strategic options for improving workforce performance through effective corporate governance policies:
Encourage employee participation and feedback:
In the opinion of Cawley et. al. (2008), involving employees in the daily operations and decision making process motivates employees to perform better. However, this needs commitment from all level of management. Ferreira et. al. (2007) opined that employee engagement creates loyal employees and this helps the organisation to reduce the cost of employee turnover. In addition, vintage employees are capable to perform the job more efficiently as the speed of performing the job by an experienced worker would be more than a new employee. However, Rousseau and Mccarthy (2007) argued that doing same task repeatedly for a long time makes the job monotonous and reduce the level of job satisfaction. In the view of DeNisi and Kluger (2006), a good corporate governance need to focus on obtaining feedback from employees as this can provide crucial input to the decision making process.
Setting real-time targets and continuous monitoring:
Improving workforce performance or productivity is the top-most concern for every organisation as the profitability of the firm is directly dependant on this. However, this can be achieved through effective corporate governance. In the opinion of (Ertugrul and Hedge, 2009), performance of the workforce can be enhanced by proving production targets on real time basis. This is important as there is often a delay in informing the workers about the production goals which leads to failure in meeting production deadlines. Here, the strategy would be to set real-time goals and informing employees’ before-hand and display the goals or targets in the production floor. The actual performance of the workers on a real time basis needs to be shown on the display board as this would help to measure actual performance against the targets on a real time basis. In contrast Denis (2010) opined that measuring performance of workers on a continuous basis can make the supervisors to focus more on quantity rather than quality.
Introducing Balance Score Card (BSC):
Usually, organisations are more concerned with controlling major downtimes and idle-time. However, inspite of effective control the organisation often fails to meet production deadlines. This is due to the fact the small stoppage time in the production process are not taken seriously by the firms. In addition to this, organisations fail to record the details of minor idle-time and downtime correctly. This resist the organisation from making proper analysis of the situation and taking corrective steps often become a challenge. This problem can be overcome by introducing a balanced score card on a monthly basis, showing the individual targets of the employees along with other qualitative metrics. These parameters are called Key performance indicator (Driver and Thompson, 2009). Proper weights have to be assigned to the respective performance indicators. In the view of Aggarwal (2010), a balanced score card approach ensures unbiased performance appraisal of the employees which in turn increase job satisfaction of the employees and this has a positive effect on the performance of employees from both production and service departments.
Chapter 3
Research methodology
3.0 Introduction:
The chapter deals with the methods on conducting the research while making sound decisions regarding the potential strategic choices. As mentioned by Brannen (2009), research methodology provides a strong base on which the entire study is conducted through following such systematic way that the research could be steered towards successful completion. The primary objective of this chapter in this research is to enlighten the approaches the researcher needs to incorporate at each stage while performing various tasks relating to the study. In this context, Aldag and Steams (2008) has acknowledged that research methodology needs designing with appropriate blend of its crucial elements that primary objectives could successfully be met at its actual means.
3.1 Research outline:
The components of research methodology are selected on the basis of two aspects. The broader concept deals with the strategic and tactical sections including philosophy, approach, designs etc., latter integrated with the applications of such thoughts briefing the type of data to be collected and the process of collecting such information along with the tools to be used for an appropriate representation of such information. However, Gummesson (2006) has opposed that most of the researches fails due to inappropriate choice of methods based on primary objectives. Here, the author has selected positivism philosophy at initial stage of the concerned research. Simultaneously, deductive approach and descriptive design has been chosen to perform tasks maintaining required flow of this study. Data are collected from both primary and secondary sources where mixed method has been considered involving quantitative and qualitative data. Simple random sampling has helped in choosing sample size for quantitative whereas qualitative data collection involves purposive sampling process.
3.2 Research philosophy:
Research philosophy helps determining mentality of the research at initial stage of the study that entire research could be directed towards right way. In opinion of Toloie-Eshlaghy et al. (2011), researcher undertakes the research philosophy to establish potential nature of the research method. Among the three basic research philosophy, epistemology deals with the origin and nature of the concerned facts by shading lights on relative procedure and margins of human knowledge. However, Johnson and Onwuegbuzie (2006) has demonstrated ontology as the section of philosophy that embarks on the metaphysical studies investigating nature of existence. Axiology has been cited by Bernard (2011) to be the branch of philosophy dealing with traditional values, ethics and aesthetics to a little extent. Epistemology can further be classified into positivism, Interpretivism and realism. In context of positivism Saunders et al. (2009) has stated that it concerns the positive facts and phenomena without any speculative research whereas it helps gathering facts through logical and natural scientific way. Interpretivism basically interprets the human responses whereas realism undertakes initiates in maintaining authenticity.
3.2.1 Justification of choosing positivism:
Here, the researcher has selected positivism to direct the research towards its desired destination. As it has been mentioned that positivism undertakes the real time information through a natural scientific approach, it could help the researcher to conduct the research towards producing real outcomes and thus draw suitable conclusions based on its objectives. As the current research has undertaken the corporate governance of Tesco to highlight the projection of such governance on employee productivity, positivism philosophy could encourage in gathering facts regarding governance in context of Tesco. Here the researcher has used the mathematical tools to process and analyse the collected information. Thus, it could help to create positive understanding about applicability of corporate governance on employee performance. Hence, positivism is appropriate for the research.
3.3 Research approach:
Research approach creates the platform to formulate and clarify the phases of the entire research with sequence to execute the planning in a proper way. However, Podsakoff and Dalton (2007) criticised that major portion of the study is dependent on the research approach as it dictates the mechanism to sequence the activities. As opined by Sale et al. (2002) two basic approaches are used in most of the researches based on the nature and key goals to be derived. Inductive approach bases the theory development following data collection observation and testing mechanism. However, deductive approach is based on the existing theories where data are collected to examine the theories whether it is applicable for all aspects or based on certain situational demand. Amitabh and Gupta (2010) stated inductive approach as the method of developing new theories whereas deductive approach is the method of examining the existing literature.
3.3.1 Justification of choosing deductive approach:
The author has considered deductive approach for the current research as the study is based on the existing evidences of corporate governance and employee productivity. Workforce productivity management is one of the basic elements ensuring sustainable development via competitive potentiality and thus a number of theories have already existed on this topic. Potential workforce productivity has been achieved by significant number of organisations whereas different scholars have conducted researches on this area. Since, the existing evidences and researches have been tested using relevant data, deductive approach is appropriate for the current research to turn the study towards right destinations.
3.4 Research design:
As opined by Dubois (2002), research design frames the basis of the primary objectives to set the target to be achieved through the entire study. In context of the design, Ellis and Levy (2009) stated that potential research design assists the author finding out the suitable answers to the questions arisen while performing various tasks in thi9s research. Among the broader concept of the research design, three basic options are exploratory, explanatory and descriptive. Exploratory refers to the section offering background information of the study on which the problem statements are addressed. On other side, Cameron (2009) has defined explanatory as the process of enlightening the internal issues that the reasons could be explained. However, descriptive design enables the researcher to find answers to the questions starting with what, when, where, why and how.
3.4.1 Justification of choosing descriptive design:
The current research is based on the existing corporate governance practices of Tesco and its impact on the workforce productivity of the organisation where differentiated data from various potential sources have been gathered to analyse the applicability of the governance structure in workforce performance. The current study has aimed to focus on the governance of Tesco in performance enhancement program where the research needs to cover every sphere of the governance practices. Therefore, each factor in corporate governance in detail without descriptive design is quite troublesome in presence of the factual information. Therefore, concerning to the above issues, descriptive research design is appropriate for the study.
3.5 Data type:
Data are the critical elements of the research to reach at desired conclusion. However, Bernard (2011) defined data as the base of the study chosen on the basis of the nature of study and resources available. Thus, concerning the resources data can be classified into two sections, primary and secondary data. Primary data can be defined as the first hand information, gathered direct from the sources where secondary data are collected from the structured resources. As opined by Sale et al. (2002), secondary data are more structured in nature than the primary as it supplies all possible information regarding organisation. However, Gummesson (2006) argued that primary data are more reliable as being unbiased in nature due to its mode of collection. Thus, primary or secondary data alone cannot be able to spot the facts in real where a right mixture of both could enable the research to achieve its desired target.
Moreover focusing on the target outcomes, primary data can further be classified into qualitative and quantitative data. As depicted by Dubois (2002), mixed method involving both qualitative and quantitative data enables the author gathering wider range of potential information from several groups of respondents. The quantitative data has been gathered from the employees of Tesco via survey where qualitative information has been gathered through a structure interview session with managers.
3.6 Data collection process:
Since the research work has been conducted using both primary and secondary data, the overall data collection process can be classified into a number of segments. Initially, a range of secondary data has been gathered from a secondary source of information, mainly from books, journals and some informative websites. The journal articles have helped getting some valuable theories in the context of corporate governance and the significance of corporate governance policies on the workforce performance. Primary data collection process can further be classified into two different segments including quantitative data collection and qualitative data collection.
3.6.1 Quantitative data collection:
The required quantitative data have been collected by initiating a survey questionnaire approach. According to Ellis and Levy (2009), survey questionnaire approach can be an effective option for collecting quantitative data as it can be applied while for a wider range of population. Initially, the permission from the Tesco management team has been granted along with the mutual consent of the chosen sample. On a specific date and time, the survey had been conducted during which each of the employees had been provided with a questionnaire each and 15 minute time allocation has been given for filling up the questionnaire. The filled up questionnaire forms gave rise to quantitative data.
3.6.2 Qualitative data collection:
Qualitative data have been collected from the verbal opinions of the managers of Tesco. The researcher has taken appointment of the managers of the organisation who were found to be available for face-to-face interview sessions. On a given date, the face-to-face interview process had been initiated with the managers of Tesco separately. The opinions of the managers had been recorded using a traditional voice recorder. The verbal responses of the managers were evaluated later to get the qualitative data.
3.7 Sampling:
In order to maintain the relevancy of the collected quantitative and qualitative data, particular emphasis has been given on the sampling mechanism. As mentioned by Dubois (2002), sampling method plays a significant role at the time of primary research as the relevancy and accuracy of the research findings would be influenced by the nature of collected data. The simple random probability sampling process has been followed during quantitative data collection as the research considers a larger population. Toloie-Eshlaghy et al. (2011) discussed that simple random sampling process can be followed while the population is higher. On the other hand, non probability purposive sampling process has been focused during qualitative data collection to obtain precise data from a fewer population. As cited by Cameron (2009), purposive sampling process can help in gathering experts’ opinions from minimal respondents.
3.7.1 Sample size:
Quantitative data have been collected from 50 employees of Tesco and therefore, the sample size for quantitative data becomes 50. Johnson and Onwuegbuzie (2006) acknowledged that greater number of sample would help addressing the scenario more accurately. By considering 50 employees of Tesco as sample size, the researcher has tried to analyse the research context more precisely. On the other hand, qualitative data have been collected from 4 managers of Tesco. As a result, the population for qualitative data is 4.
3.8 Data analysis:
The information, collected from diversified sources are analysed in a effective manner to ensure its validity and reliability. Concerning to the descriptive research techniques, the quantitative data are transformed into percentage, in order to identify the exact factors involving into corporate governance impacting workforce productivity through derivation of exact frequency of potential options. However, qualitative data are analysed lighting the opinions of the managers. Therefore, the processed data are represented through graphical format using excel application.
3.9 Limitations of the research:
The key limitations of the research are its sample size as larger sampl size could provide relatively larger information regarding the governance practices and current workforce productivity. The number of managers in interview is few in number that could hinder suitable potential options for better governance structure towards greater workforce productivity. However, involvement of management staffs for interview could cater more critical view enabling effective assessment to reach at neutral outcomes.
3.10 Ethical consideration:
The proposed research has conducted through maintaining an appropriate code of conduct. The survey has been arranged with voluntary participation of each respondents where questions, asked to the participants are excluded personal information. A strict code of conduct has been maintained by the researcher regarding confidentiality of collected data. Secondary data are collected from valid sources ensuring reliability on the outcomes.
3.11 Time frame:
| Tasks | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 |
| Topic selection and proposal approval | |||||
| Literature review and secondary data collection | |||||
| Identifying research methodology | |||||
| Data collection | |||||
| Data analysis | |||||
| Findings | |||||
| Conclusions and recommendations and final proofreading | |||||
| Final submission and Celebration |
Chapter 4
Data analysis and findings
4.0 Introduction:
This chapter enables the researcher to produce the results derived while conducting the study. The key aim of this chapter is to present the information in such a way that current situation regarding the topic undertaken. This part of the study also aligns the existing literature with the findings that reaching at the desired conclusion could be easier. In that case, the data are represented using application tools (graphs, charts, tables etc.) that a clear view of the existing governance of Tesco could be produced.
4.1 Quantitative data analysis:
Question 1: Would you agree with the fact that workforce performance can be improved in the presence of sound corporate governance policies (CGP)?
Table 1: Improved workforce performance through effective CGP
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 13 | 50 | 26% |
| Agree | 27 | 50 | 54% |
| Neutral | 6 | 50 | 12% |
| Disagree | 2 | 50 | 4% |
| Strongly disagree | 2 | 50 | 4% |
Figure 3: Improved workforce performance through effective CGP
Findings and analysis:
The above data shows that the majority of the respondents agree to the fact sound corporate governance policies are essential to the improvement of workforce performance. Corporate governance policies guides not only improve the workforce performance but also guides the overall functioning of the organisation. However, it is important that the employees understand the significance of the corporate governance towards improvement of performance that would further result in higher profitability. This would ensure better increments and appraisal to the employees. Bebchuk and Hamdani (2009) in section 2.5 argued that workforce includes employees working in the operations department as well as those working in the supporting department. Hence, it is necessary that the corporate governance policies of the company are directed towards improvement of performance of all the departments.
Question 2: Have you experienced improved self performance after alteration of the corporate governance policies?
Table 2: Improved self performance after alteration of CGP
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 13 | 50 | 26% |
| Agree | 22 | 50 | 44% |
| Neutral | 0 | 50 | 0% |
| Disagree | 10 | 50 | 20% |
| Strongly disagree | 5 | 50 | 10% |
Figure 4: Improved self performance after alteration of CGP
Findings and analysis:
Though majority of the respondents have experienced improvement in self performance after alteration of corporate governance policies but disagreement from 30% of the respondents on this is a concern here. This is due to the fact that unless improvement in self performance is experienced by all employees the performance of the organisation cannot get improved to a great extent. Improvement in self performance would improve departmental performance. This would improve the overall performance of the organisation. However, Beaumont et al. (2000) in section 2.3 opined that workforce performance can be increased by strong framework of rules and fair practices. This can be achieved by introducing both rewards and penalties related to the employee performance. In addition, fair and equitable pay and appraisal would motivate the workforce in performing better.
Question 3: Have you experienced improved team performance after alteration of the corporate governance policies?
Table 3: Improved team performance after alteration of CGP
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 11 | 50 | 22% |
| Agree | 26 | 50 | 52% |
| Neutral | 3 | 50 | 6% |
| Disagree | 10 | 50 | 20% |
| Strongly disagree | 0 | 50 | 0% |
Figure 5: Improved team performance after alteration of CGP
Findings and analysis:
As improved team performance is not experienced by all the employees, hence it is essential to review the corporate governance policies. To be more specific, the company needs to identify the extent to which the corporate governance policies are implemented across the organisation because there often remains a gap between written policies and its practical applications. In the view of Ertugrul and Hedge (2009) in section 2.12, workforce performance can be improved by setting real time goals and continuous monitoring. In spite of improvement of performance among individual team members, the team performance might not get improved considerably. Improper recording of the performance and overlooking small loopholes in the workflow could be the reason behind this. This can be overcome by setting and monitoring targets on real time basis.
Question 4: Among the following, what according to you is/are impacted through effective corporate governance policies?
Table 4: Factors influenced by CGP
| Options | Responses | Total Response | Percentage response (%) |
| Employee participation | 15 | 50 | 30% |
| Workforce commitment | 17 | 50 | 34% |
| Teamwork | 13 | 50 | 26% |
| Employee retention | 5 | 50 | 10% |
Figure 6: Factors influenced by CGP
Findings and analysis:
The above figures show that employee participation, workforce commitment, and teamwork are most affected by corporate governance policies. This is because that the modern corporate governance policies lay stress on employee participation which in turn enhances workforce commitment, and these together affects the team work. While, employees retention is a result of sound corporate governance policies. Cawley et. al. (2008) in section 2.12 opined that employee engagement in the daily operations and decision making process motivates employees to perform better. Workforce commitment and team work is achieved automatically if workers are happy. However, collection of employees’ feedback, one-on-one discussion between individual employees and respective managers, and conducting exit interviews can help the company to keep the attrition rate at the minimum.
Question 5: Does your organisation stress on corporate governance policies focused on improved workforce management?
Table 5: Tesco’s CGP approaches focusing on workforce management
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 13 | 50 | 26% |
| Agree | 20 | 50 | 40% |
| Neutral | 11 | 50 | 22% |
| Disagree | 6 | 50 | 12% |
| Strongly disagree | 0 | 50 | 0% |
Figure 7: Tesco’s CGP approaches focusing on workforce management
Findings and analysis:
From the above responses it is clear that majority of the respondents agree that Tesco’s governance policies are focused on improved workforce performance. Allen (2006) in section 2.10.1 opined that growth opportunities are essential for the motivation and improved performance of the workforce. Tesco’s corporate governance policies are aimed at increasing workforce productivity by offering growth opportunities to its employees. In fact, the company has been successful in providing new growth opportunities to its employees on a consistent basis. This has motivated its employees to work harder and better which in turn has improved the overall organisational performance. In addition, the company encourages active participation of its employees which has resulted in these positive responses.
Question 6: Have your supervisors encouraged you to focus on collaborative work to team play?
Table 6: Encouragement from the supervisors regarding team play activities
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 8 | 50 | 16% |
| Agree | 32 | 50 | 64% |
| Neutral | 0 | 50 | 0% |
| Disagree | 8 | 50 | 16% |
| Strongly disagree | 2 | 50 | 4% |
Figure 8: Encouragement from the supervisors regarding team play activities
Findings and analysis:
The above figures suggest that the company has been successful in encouraging teamwork through its managers. This is crucial to the success of any organisation. However, disagreement from 20% of the respondents need due attention. These can be employees who are shy in nature and are not much comfortable in team meetings or group discussions. Such employees need personal attention by the managers. Covin and Slevin (2009) in section 2.4 opined, management works as a catalyst for creating both the capability and willingness for greater productivity as potential and skilled managers can derive high quality outcomes from average or below average workforce. Hence, it is of immense importance that the managers are able to create that comfort zone for shy employees. This would in fact build confidence among these employees leading to better performance and team work.
Question 7: Are you being rewarded frequently for superior performance?
Table 7: Rewarding for superior performance
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 9 | 50 | 18% |
| Agree | 29 | 50 | 58% |
| Neutral | 0 | 50 | 0% |
| Disagree | 11 | 50 | 22% |
| Strongly disagree | 1 | 50 | 2% |
Figure 9: Rewarding for superior performance
Findings and analysis:
The above responses reflect that the reward and recognition system are not successful to the fullest extent. In the view of Ross (2003) in section 2.4 has opined that good governance structure frame the internal system of the organisation through detecting service requirements and maintaining required quality. Hence, the company needs to review the parameters set for rewarding employees. Often, it is found that the parameters lack relevance to the real situation. In addition, managers might not be able to recognise the performance and contribution of the team members. These issues need to be addressed.
Question 8: Among the following, tick the policies that have been followed at Tesco.
Table 8: Governance policies followed at Tesco
| Options | Responses | Total Response | Percentage response (%) |
| Improved reward policy compared to competitors | 10 | 50 | 20% |
| Motivating staffs for improving retention scenario | 8 | 50 | 16% |
| Following of a teamwork culture | 15 | 50 | 30% |
| Prioritising a learning work culture | 17 | 50 | 34% |
Figure 10: Governance policies followed at Tesco
Findings and analysis:
Referring to the above result, it could be found that corporate governance in Tesco has highest priority for learning work culture to enhance the efficiency of workforce. However, teamwork culture and the improved reward policy needs to be employ in policies to motivate the employees contributing efforts towards the responsibilities. In this context, Cawley et. al. (2008) opined in section 2.9 that corporate governance of Tesco is focused on core value of employees rather just setting the rules. In support, Denis (2010) opined that the board and the executive committee are responsible to delegate tasks among employees based on capability to encourage the workforce towards significant contribution towards organisational goal (referred to section 2.9). However, retention scenario also matters in motivating staffs to enhance performance and thus governance in Tesco has almost equal contribution to these policies, in order to promote better workforce efficiency.
Question 9: Do your supervisors consider your feedback prior to specific strategic measurement?
Table 9: Feedback consideration by the supervisors
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 10 | 50 | 20% |
| Agree | 23 | 50 | 46% |
| Neutral | 0 | 50 | 0% |
| Disagree | 12 | 50 | 24% |
| Strongly disagree | 5 | 50 | 10% |
Figure 11: Feedback consideration by the supervisors
Findings and analysis:
From the above outcomes, it could be inferred that most of the employees have contributed feedbacks in measuring strategies while the organisation makes sound strategic decisions. However, some have opined that feedbacks are not considered for measuring effectiveness of strategies. This infers that Tesco considers potential and skilled employees to gather innovative ideas that better strategic development could be employed. In this context, Kim and Nofsinger (2007) in section 2.8 has opined that participation of individual is necessary in strategic decision making process for self development process. Therefore, employee participation in strategic measurement could enhance the effectiveness and applicability of strategic choices through developing workforce potentiality individually. The respondents, disagreed with the statement might be the base level staffs having hardly knowledge regarding the strategic measurement and implementations.
Question 10: Have you managed to improve self performance within the last two years?
Table 10: Improvement of self performance within the last two years
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 14 | 50 | 28% |
| Agree | 31 | 50 | 62% |
| Neutral | 3 | 50 | 6% |
| Disagree | 2 | 50 | 4% |
| Strongly disagree | 0 | 50 | 0% |
Figure 12: Improvement of self performance within the last two years
Findings and analysis:
From the above outcomes, it could be inferred that most of the employees have agreed that self performance has been improved within last two years following the governance structure of the organisation. Being involved into the decision making process, staffs have come to know about the new policies where considering those policies and challenges, employees of Tesco have been upgraded that enhances skills and efficiency of performing tasks. Addressing this fact, DeNisi and Kluger (2006) in section 2.11 has observed that employee engagement enables the staffs putting individual opinion and personal preferences keeping the overall organisational goal in mind. Therefore, an effective set of principle could be developed resulting better governance and productivity level.
Question 11: Would you agree that effective corporate governance policies followed at Tesco have helped you to produce improved productivity?
Table 11: Positive influence of Tesco’s CGP on improved productivity
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 16 | 50 | 32% |
| Agree | 27 | 50 | 54% |
| Neutral | 2 | 50 | 4% |
| Disagree | 2 | 50 | 4% |
| Strongly disagree | 3 | 50 | 6% |
Figure 13: Effective corporate governance policies followed at Tesco have helped you to produce improved productivity
Findings and analysis:
Referring to the above results, it could be inferred that employees are highly supportive to corporate governance policies, followed by Tesco in enhancing productivity of the staffs. Therefore, the corporate governance policies involve such norms that motivate the employees to encourage self development process. In this context, Allen (2006) in section 2.10.1 has observed that the corporate governance policies incorporate growth opportunity to the employees, influencing staffs to enhance productivity. On the other side, Driver and Guedes (2012) in 2.10.1 has opined that right strategic choice assists the organisation to offer suitable growth opportunities to the employees that could affect the perception of staffs contributing towards organisational goals. Very few people disagreed as this part of respondents think that governance influences the strategic choices of the organisation focusing more on the sustainability and fairness in trading practices rather emphasising on individual interest.
Question 12: Do you think that you and your peers have managed to produce performance as per the expectation of the management?
Table 12: Performance as per the expectation of management
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 15 | 50 | 30% |
| Agree | 19 | 50 | 38% |
| Neutral | 7 | 50 | 14% |
| Disagree | 6 | 50 | 12% |
| Strongly disagree | 3 | 50 | 6% |
Figure 14: Performance as per the expectation of management
Findings and analysis:
Concerning to the above result, it could be inferred that employees have produced the performance as expected from the management of the organisation. Referring to the above result, it has been derived that employees are confident about their contribution towards the organisation through performing tasks with full potentiality and skills. Therefore, it could be predicted that there are such factors present in the organisational policies increasing confidence of staffs towards performing tasks. In context, Ferreira et. al. (2007) has stated in section 2.11 that active employee engagement into decision making process enhances the confidence that is crucial for the organisation to increase productivity as well as successful execution of different planning like governance frameworks and rules. However, not all staffs are confident as performance evaluation is completely performed by the strategic level of organisation depending on several parameters.
Question 13: Would you agree that the employees have managed to increase the work efficiency by means of producing similar performance within prompt timing?
Table 13: Producing desired performance within prompt timing
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 15 | 50 | 30% |
| Agree | 16 | 50 | 32% |
| Neutral | 9 | 50 | 18% |
| Disagree | 4 | 50 | 8% |
| Strongly disagree | 6 | 50 | 12% |
Figure 15: Producing desired performance within prompt timing
Findings and analysis:
Staffs of Tesco have opined that the efficiency level of the performance has been enhanced in the due course to produce desired performance level within the prompt timing. it is evidenced that time of the crucial factors affecting workforce productivity as depending on individual capability and skills. Therefore, time consumption for a projection could be reduced through enhancing efficiency level that tasks could be performed tactfully. As opined by Baron and Kenny (2006) in section 2.4 that most frequent reason for lower productivity is fatigue, absenteeism and low morale where, tasks are perceived as burden to execute in a proper manner by the staffs. However, a part of respondents have no such knowledge regarding the fact whereas some staffs, disagreed might have little information regarding performance level Tesco has achieved in terms of efficient workforce.
Question 14: Do you think more frequent audit mechanism could help in developing more accurate corporate governance policies and improve workforce performance?
Table 14: Developing more accurate CGP with frequent audit process
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 18 | 50 | 36% |
| Agree | 17 | 50 | 34% |
| Neutral | 4 | 50 | 8% |
| Disagree | 8 | 50 | 16% |
| Strongly disagree | 3 | 50 | 6% |
Figure 16: Developing more accurate CGP with frequent audit process
Findings and analysis:
As responded by the participants, frequent audit could enhance the accuracy level of corporate governance policies. In the current context of changing mechanism of business practices globally, the international organisation like Tesco needs to update its policies based of current situational demands. Therefore, periodic auditory activity could enable the firm whether any improvement needed and the area to be updated. Supporting to this idea, DeNisi and Kluger (2006) has suggested in 2.11 section, involving staffs in auditory process to introduce brainstorming process for better outcomes. In contrast, Denis (2010) has mentioned in section 2.12 that performance measurement on continuous basis enables the supervisors focusing more on quantity rather quality as supported by the responses in terms of disagree.
Question 15: Are you convinced with the fact that considering employee feedback evaluation could be an effective option to deploy more relevant corporate governance policies for the workforce?
Table 15: Developing relevant CGP through employee feedback evaluation
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 17 | 50 | 34% |
| Agree | 20 | 50 | 40% |
| Neutral | 6 | 50 | 12% |
| Disagree | 5 | 50 | 10% |
| Strongly disagree | 2 | 50 | 4% |
Figure 17: Developing relevant CGP through employee feedback evaluation
Findings and analysis:
According to the result, obtained from the survey, it is clear that employee feedback evaluation is one of the effective initiatives to deploy more relevant CGP for better internal structure and productivity. As a reason, various opinions from staffs enable Tesco highlighting critical elements, to be incorporated in governance structure that a fair and ethical practice could be maintained in operation. Concerning to this issue, Cawley et. al. (2008) in section 2.12 has dictated that staffs’ engagement in operational procedure motivates employees performing better. However, the initiatives of employee participation are responsibility of management through which potential governance could be achieved. in context, staffs’ involvement in management procedure could diversify tasks of employees as Rousseau and Mccarthy (2007) has stated in 2.12 section that performing same task repeatedly longer makes the job monotonous and tiresome, resulting lower job satisfaction.
Question 16: Rate from the following the viable options for Tesco to develop more effective corporate governance policies so that workforce productivity can be improved.
Table 16: Options for developing more effective CGP
| Options | Responses | Total Response | Percentage response (%) |
| Clarification of board’s expectation to the workforce | 11 | 50 | 22% |
| Ensuring employee awareness regarding organisational goals | 15 | 50 | 30% |
| Prioritising workforce perception | 10 | 50 | 20% |
| Evaluating the approaches of the rivals | 14 | 50 | 28% |
Figure 18: Options for developing more effective CGP
Findings and analysis:
Based on the above outcomes, necessity of all the options mentioned above for better CGP are more or less same for Tesco. However, employee awareness and evaluation of approaches of the rivals have gained relatively higher preferences over the other two. Thus, employees are more concerned about being aware of importance of corporate governance to deploy relatively higher productivity through an execution of set of principles mentioned under CGP. On the other side, it is management’s perception to aware staffs regarding goals. In this context, Allen (2006) has suggested in section 2.5 arranging monthly meetings that an effective alignment of corporate governance policies and workforce productivity could be executed through clarifying organisational goals to be achieved with efficiency and skills. However, approaches of rivals are also important to identify uniqueness to be developed at generating policies to achieve competitive edge.
Question 17: Would you agree that effective delegation of authority could help in achieving improved workforce productivity?
Table 17: Improved workforce productivity by effective delegation of authority
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 25 | 50 | 50% |
| Agree | 22 | 50 | 44% |
| Neutral | 1 | 50 | 2% |
| Disagree | 2 | 50 | 4% |
| Strongly disagree | 0 | 50 | 0% |
Figure 19: Improved workforce productivity by effective delegation of authority
Findings and analysis:
Referring to the above outcomes, it could be derived that effective delegation of authority can improve the workforce productivity as the focuses in such delegation are narrowed down. Therefore, potential distribution of empowerment among the each corner of the authority of Tesco could enable each department of regulatory body handling the task efficiently as having little diversification in tasks. As opined by Driver and Guedes (2012) in section 2.10.5, employee productivity can be enhanced through framing the tasks of authority that potential initiatives could be taken for better workforce efficiency.
Question 18: Do you think Tesco needs to focus on a contingent Code of Conduct addressing external business environmental factors?
Table 18: Contingent Code of Conduct focusing on external business environmental factors
| Options | Responses | Total Response | Percentage response (%) |
| Strongly agree | 32 | 50 | 64% |
| Agree | 12 | 50 | 24% |
| Neutral | 2 | 50 | 4% |
| Disagree | 3 | 50 | 6% |
| Strongly disagree | 1 | 50 | 2% |
Figure 20: Contingent Code of Conduct focusing on external business environmental factors
Findings and analysis:
Looking at the above result, it could be perceived that contingent code of conduct necessitates having in governance policies that better and transparent trade practices could be achieved. In that case, the external business environment could assists the management to identify the strengths and flaws in norms, being currently followed by the each department of Tesco. As mentioned by Becht et. al. (2007) in section 2.10.2, the code of conduct describes the responsibilities and obligations that staffs needs to comply with it. Therefore, such information regarding standardised code of conduct could be gained through external environmental evaluation, specifically the current trend and activities of rivals on governance that competitive governance structure could be achieved through incorporating effective and suitable policies towards a fair and unbiased trade practice globally.
4.2 Qualitative data analysis:
The verbal responses of the managers of Tesco has given rise to the qualitative data concerning the current research study and the current segment analyses the qualitative data to address the significance of the governance policies of Tesco on the workforce productivity. All the managers of Tesco have been asked four similar questions in relation with the research objectives and the responses gathered have been as followed.
- Do you believe that effective corporate governance policies could help in enhancing workforce productivity? Why do you think so?
Assessing the responses of the managers, it seems that all the respondents agree with the positive influence of effective corporate governance policies on the workforce productivity. Two managers emphasised on improved employee engagement after successful deployment of effective corporate governance policies. The managers believe that if appropriate corporate governance policies can be measured, improved participation and commitment level can be expected from the employees that could lead to better engagement. Bebchuk and Hamdani (2009) also mentioned that workforce productivity can be improved if better engagement from the employees is experienced and the adopted governance policies can play crucial role in this context (refer to section 2.5 in chapter 2). Another two managers are also agreed with the fact that workforce productivity can be enhanced with proper governance policies. The managers acknowledged that with proper governance policies and stipulations, the management can set specific benchmark for the workforce and by this way, improved performance can be achieved. Such responses are found to be similar with the proposition of Brav et. al. (2008) as the author mentioned that proper formulation of governance policies can help maintaining the relevancy and accuracy of the operations resulting in better productivity (refer to section 2.5 in chapter 2).
- What are the corporate governance policies followed at Tesco so that the workforce performance could be improved?
When it comes to improving the productivity of the workforce, Tesco has been following a range of corporate governance policies for the improvement of the workforce performance. One of the managers has highlighted the reward policies followed by the management to improve the motivation level of the workforce. Tesco has been prioritising a reward policy in order to motivate the employees and bring out optimum output from the organisational workforce. Boselie et al. (2007) also proposed that business organisations can focus on an appropriate reward policy to ensure employee satisfaction and generate improved productivity from the workforce. Two of the managers highlighted a decentralised organisational structure comprising of audit committee, remuneration committee nominations committee and corporate responsibility committee. According to the managers, theses committees ensure a stable workforce and continuous improvement of the workforce so that constant competency can be maintained in the respective business sector. Similar findings have been addressed by Cawley et. al. (2008) as the author highlighted that Tesco has been successful in developing a dynamic workforce following a sound organisational framework (refer to section 2.9 in chapter 2). One of the managers promoted the significance of the Code of Conduct that is comprised of specific rules and disciplines required to follow by the employees to meet the standards.
- Do you think that Tesco’s corporate governance policies have been generating positive results in terms of workforce productivity?
While majority of the managers of Tesco are convinced that the adopted corporate governance policies have been contributing towards positive workforce productivity, one of the respondents believes there are areas for improvement. Two of the managers highlighted the organisational success in generating increased revenue and improved operating profit within the last five years. It seems the corporate governance policies deployed within the workforce has enabled the employees to thrive for new benchmark and as a result, the organisation has managed to generate better productivity resulting in improved profitability. In reference to the proposition of Driver and Guedes (2012), the clarity of business goals and objectives facilitates organisational workforce to maintain relevancy and improve productivity. Such has been the case for Tesco as the organisation has managed to streamline the strategic objectives to the workforce (refer to section 2.10.5 in chapter 2). On the other hand, the rest of the managers promoted the risk assessment and whistle blowing mechanism. According to one manager, Tesco has been focusing on governance policies that could mitigate operational risks for achieving enhanced productivity. Another manager pointed the whistle blowing strategy that signifies the organisational initiative of prompt action as per contingent situations. The propositions of the managers are found to be similar with that of the findings from section 2.10 in chapter 2 as the segment highlights similar approaches of Tesco that have been accounted from a range of secondary sources of information.
- What kind of governance policies does the brand need to follow to experience improved workforce productivity?
While questioning this particular question to the managers of Tesco, different respondents provided different responses. One of the managers proposed the idea of developing policies for monthly audit mechanism so that the workforce productivity can be tracked on a continuous basis. The recommendation can be supported by the proposition of Denis (2010) as the author mentioned that continuous monitoring of the workforce would enable the supervisors to focus on the quality control process (refer to section 2.12 in chapter 2). One of the managers focused on a balanced scorecard approach that could not only help optimising workforce performance but also improve self performance of the employees y ensuring constant employee motivation. As mentioned by Aggarwal (2010), a balanced score card approach would ensure a motivated workforce and desired workforce productivity (refer to section 2.12 in chapter 2). The rest of the managers were both agreed with employee feedback evaluation prior to the development of the corporate governance policies. One of the managers acknowledged that internal survey can be conducted engaging organisational workforce and the feedback can help shed light on crucial aspects of management. Cawley et. al. (2008) also cited that employee feedback can be pivotal for the management teams as it could help evaluating the merits and demerits of existing governing policies (refer to section 2.12 in chapter 2).
Chapter 5
Conclusions and Recommendations
5.0 Introduction:
The chapter deals with the conclusions derived from the findings and analysis of collected data. The chapter aims to link the primary objective with the results derived after analysing the processed data. The chapter has focused whether the objectives are fulfilled with the entire research. Moreover, potential options regarding corporate governance improvement and better workforce productivity has also been recommended to reduce the pitfalls in governance framework of Tesco if any. Therefore, Tesco could enhance its governance effectiveness through an effective deployment of concerned polices as recommended. The chapter also highlights the limitations of current study that the author has faced and the further scope of conducting the research in future to reconsider the uncovered areas.
5.1 Linking with objectives:
Objective 1: Assessing the significance of corporate governance in enhancing workforce productivity:
The significance of the corporate governance policies can be effectively judged by producing relative outcomes. The result has been found from Question 2 and 3 (refer to section 4.1 in chapter 4) that staffs of Tesco have experienced improved self performance and improved teamwork as the result of successful implementation of governance policies. The result has been supported by Beaumont et al. (2000) in section 2.3 that the workforce productivity could be efficiently enhanced through developing a strong framework of rules and fair practices. However, such framework also contains clarification of real time goals and c9onsistent monitoring process. However, the significance of corporate governance [policies has been supported by the employees in Question 1 (refer to section 4.1 in chapter 4) where the result has been emphasised by Bebchuk and Hamdani (2009) in section 2.5 corporate governance set the rules of performing tasks where the teamwork is the key focused involving the workforce of concerned department as well as the supporting departments also. However, there are several factors influencing governance to develop standard ethical practices. Supporting to this aspect Cawley et. al. (2008) in section 2.12 has opined that staffs engagement in daily operation and decision making process motivates the employees performing in relatively better way where potential workforce commitment and efficient teamwork can be promoted with satisfied workers. The opinion has been derived from Question 4 (refer to section 4.1 in chapter 4). On the other hand, in interview session, (from question 1) the managers has opined that better employee engagement and commitment has been experienced by the organization after a successful deployment of effective corporate governance policies (refer to section 4.2 in chapter 4). Supporting to this statement Brav et. al. (2008) has opined that appropriate formulation of CGP can assist maintaining relevancy and accuracy of the operations (refer to section 2.5 in chapter 2).
Objective 2: Identifying Tesco’s corporate governance policies in respect to workforce management:
The corporate governance policies are employed in the organisation to focus on improvement of employee productivity. As found from Question 5 (refer to section 4.1 in chapter 4) that Tesco strictly follows the governance structure to strengthen the workforce. Supporting to this fact Allen (2006) in section 2.10.1 has opined that introducing growth opportunity is one of the essential part motivating employees in improving self performance. Different strategies are found from Question 6 and 7 (refer to section 4.1 in chapter 4) where it has been obtained that supervisors of Tesco encourage the staffs focusing on collaborative work to thrive team work within organisation. However, rewarding strategy is used by the organisation frequently for superior performance level. The fact has been supported by Covin and Slevin (2009) in section 2.4 as stated that management works as catalyst to create both the capability and desire of producing relatively greater result by steering the skills towards right direction. The key governance policies have been highlighted in Question 8 (refer to section 4.1 in chapter 4) where learning work culture of employees has been prioritised higher than the other options. The supportive dictation has been provided by Cawley et. al. (2008) as stated that Tesco is more focused on the core value of employees rather just setting rules for ethical transparency (referred to section 2.9). However, employee participation is necessary to undertake proper evaluation of the governance policies as Kim and Nofsinger (2007) in section 2.8 has opined that staffs’ involvement in strategic decision making process strengthens developing individual performance and commitment towards team efforts as found in responses of Question 9 (refer to section 4.1 in chapter 4). From the response of mangers, it has been derived that reward policy is the key fact, followed by tesco while boosting up the productivity. On the other side, authority delegation has been focused by other respondents from Question 2 (refer to section 4.2 in chapter 4) where mangers have mentioned remuneration committee to be responsible to look after the stability of workforce to ensure consistent improvement in staffs’ efficiency. Similar outcomes have been observed by Cawley et. al. (2008) as author has mentioned that tesco has successfully enhanced the productivity of workforce following a sound and dynamic framework of corporate governance policies (refer to section 2.9 in chapter 2)
Objective 3: Determining whether Tesco’s corporate governance policies is contributing towards improved workforce productivity:
The corporate governance policies followed at Tesco have a positive influence on the workforce productivity at least the findings from quantitative and qualitative analysis suggests so. In reference to the findings from question 10 in section 4.1 in chapter 4, majority of the employees have experienced improved self performance within the last two years and since alteration of the governance policies. Findings from Question 11 (refer to section 4.1 in chapter 4) promotes the fact that the governance policies followed at Tesco has been a major reason behind the improved performance of the employees. Considering the opinion of Driver and Guedes (2012), relevant strategic directions could provide improved growth opportunities for the human assets of business organisations giving rise to overall productivity of the firm. Adding to that, employees of Tesco agreed that the combined workforce have managed to live up to expectation of the management on a consistent basis (refer to question 12 in section 4.1, chapter 4). Furthermore, findings from Question 13 (refer to section 4.1, chapter 4) imply the fact that employees at Tesco has managed to improve the work efficiency in the presence of new governing policies. Tesco has managed to maintain effective employee relations while ensuring employee motivation. As mentioned by Baron and Kenny (2006), employees are bound to be much more productive if the organisations manage to boost the morale through deploying effective policies (refer to section 2.4 in chapter 2). The majority of the managers of Tesco are also convinced that the organisation has experience better performance from the employees (refer to question 3 in section 4.2 in chapter 4). Therefore, it can be concluded that the adopted governance policies at Tesco has contributed towards improved workforce productivity.
Objective 4: Evaluating strategic options for the betterment of corporate governance at Tesco’s so that better workforce productivity can be experienced:
The employees as well as the managers of Tesco provided some valuable recommendations that the brand can follow to ensure further enhancement of the workforce productivity. In reference to the findings from Question 14 (refer to section 4.1 in chapter 4), employees recommended frequent audit mechanism for developing more relevant policies for improving workforce productivity. The fact has been supported by Denis (2010) as the author mentioned that continuous monitoring of performance would help assessing the concerning areas on the basis of which, relevant measurements can be taken (refer to section 2.12 in chapter 2). Considering the findings from Question 15 (refer to section 4.1 in chapter 4), employee feedback evaluation can turn out to be a viable option for the management team of Tesco at least the employees of the organisation suggest so. On the other hand, Tesco’s employees believe that the supervisors need to clarify the board’s expectation while employee awareness are needed along with tracking of rivals’ approaches and prioritising workforce perception (refer to Question 16 in section 4.1, chapter 4). Also the employees of Tesco suggest that the organisation could focus on effective delegation of authority so that improved productivity can be assured. As cited by Driver and Guedes (2012), proper delegation of authority within the workforce would ensure enhanced employee productivity and achievement of business goals. Adding to that findings from Question 18 (refer to section 4.1 in chapter 4) suggest that a contingent Code of Conduct can be developed focused on external business environmental factors so that a competitive workforce can be formed. On the other hand, the managers of Tesco recommended that the brand can focus on a balanced score card approach, employee’s feedback evaluation and monthly audit mechanism so that more accurate governance policies can be measured and better workforce productivity can be experienced (refer to Question 4 in section 4.2, chapter 4).
5.2 Recommendations:
- Encourage participation and empowerment of employees:
The corporate governance policy that is devised by the top management of the company needs to focus on increasing participation and empowerment of employees. Participation is required from all levels of employees, irrespective of individual designations. This would make the decision making process more effective and foster better teamwork in the organization. In addition to this, sense of belonging among employees and creativity is ensured by employee participation. Employee empowerment would minimize the interference of managers in the work of subordinates. The valuable time of managers so saved can be utilized for analyzing the internal and external environment, keep a close watch on the activities of the competitors and developing better strategies. Weekly and monthly team meetings can prove helpful. This can be made more effective if each team conducts a team meeting on a daily basis before starting its work. In addition, the top management needs to conduct face-to-face meetings with employees every month or at least every quarter to identify the complaints of the team members. However, the immediate managers of the respective teams have to be excluded from such team meetings so that the employees can put forward individual complaints more easily.
- Ensure unity in diversity:
Diversification leads to generating more alternatives and offer different skills, knowledge, experience, and perspective to the organization. This enhances the performance of the workforce to a great extent. However, conflicts arising out of diversity are a challenge which the company needs to keep at the minimum. Introducing Balanced Score Card (BSC) approach across the entire organization is a strong tool to minimize the organizational conflict and increase productivity of team members. The departmental managers need to prepare a goal sheet indicating the different parameters of job related to particular department and send the same to employees at the start of every month. At the end of every month the team members are assessed on the basis of individual scores obtained on the basis of individual performance reflected by the individual BSC. This further helps to identify areas for improvement and ensures better performance in the next month. In addition, yearly appraisals are to be based on the annual scores obtained by employees. This reduces biasness in the appraisal process which has a positive effect on the motivation and performance of workforce. Proper rewards and recognition schemes can help in this regard.
- Encourage creativity and innovations:
The focus of the corporate governance policy need to focus on developing creativity and innovation by including employees in the decision making process. Employees who are directly involved in a job are the best ones to identify and explain the reason behind every problem. Conducting brainstorming sessions would help in generating more wild ideas and variety of solutions to the present problem. In addition, it is advisable to declare rewards and cash prizes for best ideas contributed by employees. The company can open a web platform where individual employees can submit innovative ideas online. Providing six sigma training to the employees can help to a large extent as this enhances productivity. It would be a good practice to encourage alternative solutions from the employees rather than imposing managerial decisions on the workforce. This increases employee motivation and results in better performance, in respect of quantity and quality, both.
5.3 Limitations of the study:
Responses from few employees and managers can be considered as a limitation of this research work. For a big multinational company like Tesco, it is quite difficult to arrive at a conclusion on the basis of responses received from 50 employees. In addition, qualitative analysis of the comment of few managers also cannot be considered as sufficient input to conclude anything. Furthermore, only literature and theories have been collected from the secondary sources but data, figures and facts from secondary sources have been ignored. Significant data and statistics can be obtained from secondary sources like journals, books, and authentic websites.
5.4 Future scope of the research:
The present research work offers a future scope to include data and statistics from secondary sources. Including data from secondary sources offers facts, figures, statistics, and past trends at minimum cost, time and labor. Furthermore, mere collecting quantitative data from respondents cannot be considered sufficient. In future, the number of respondents can be increased considerably to include employees from each departments of the organization. In addition, a qualitative analysis of the feedbacks would help in more effective analysis and arriving at a better conclusion. Face-to-face interviews of employees can be included for deriving better inputs.
