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The Role of Business Management Techniques in Increasing the Productivity
and Efficiency of an Organisation
Name of the writer:
Name of the instructor:
Date:
Keywords:

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Abstract
This dissertation addresses the management techniques and styles and which technique
will be helpful in what circumstances. The constant increase in productivity of an organisation
depends upon the right choice of the management techniques. The main aim of the businesses is
to function in the most effective and efficient manner. Most of the times, company’s owner takes
the responsibility on his shoulder to make this happen. A part from owners, managers also
delegates this responsibility. In any case, there are a list of different managing strategies that can
be adopted in order to increase the efficiency and effectiveness of the organisation. Selecting and
implementing the best strategy for the organisation can be difficult decision. The critical
analysis of the CEO and managers of the organisation can definitely help them to choose
the best strategy that can be helpful in increasing the productivity and efficiency of the
organisation and to keep their customers happy and satisfied. Employees, partners, and
customers should all be evaluated when the management finalise the techniques that proves to be
the best for the business, because some management techniques motivate some employees but
others might need a different form of motivation. For instance, incentives and training program
might be helpful in order to motivate, educate and retain employees but for partnership,
managers need to think of different or innovative management techniques which can bring a
change or modification in the partnership functions in order to generate stronger partnership.

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Table of Contents
Abstract........................................................................................................................................... 3
Chapter 1: Introduction................................................................................................................... 7
1.1 Title of the research............................................................................................................... 7
1.2 Aim of the research ............................................................................................................... 7
1.3 Research Objectives.............................................................................................................. 7
1.4 Research Scope ..................................................................................................................... 8
1.5 Disclaimer ............................................................................................................................. 9
1.6 Proposed Research Methodology.......................................................................................... 9
1.7 Background of the Research ............................................................................................... 10
1.8 Structure of the Report........................................................................................................ 11
Chapter 2: Literature Review........................................................................................................ 13
2.1 Management Functions ....................................................................................................... 13
Planning................................................................................................................................. 13
Organizing ............................................................................................................................. 15
Leading.................................................................................................................................. 16
Controlling............................................................................................................................. 17
2.2 Management Styles ............................................................................................................. 19
Participative Management..................................................................................................... 19
2.3 Business Management Techniques ..................................................................................... 29

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2.4 Productivity......................................................................................................................... 31
Employee Productivity .......................................................................................................... 33
Improving Productivity ............................................................................................................. 36
Chapter 3: Research Methodology................................................................................................ 41
3.0 Introduction......................................................................................................................... 41
3.1 Research Methodology........................................................................................................ 41
3.1.1 Positivist Paradigms ..................................................................................................... 42
3.1.2 Interpretivisit Paradigm................................................................................................ 45
3.2 Primary Data ....................................................................................................................... 46
3.2.1 Primary Data Collection Methods................................................................................ 47
3.3 Secondary Data ................................................................................................................... 47
3.4 Proposed Research Strategy................................................................................................ 48
Chapter 4: Findings and analysis.................................................................................................. 49
Tesco ......................................................................................................................................... 49
Performance Management Systems....................................................................................... 56
Preparation for a Performance Management System........................................................... 57
During An Evaluation Meeting.............................................................................................. 58
ASDA........................................................................................................................................ 60
New anti-discrimination legislation....................................................................................... 61
Skills Shortages in Business and Finance.............................................................................. 61

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Undervalued Talent ............................................................................................................... 62
The Myths of Age.................................................................................................................. 62
Part of Employee Retention................................................................................................... 63
Customer Awareness............................................................................................................. 64
Chapter 5: Conclusion................................................................................................................... 65

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Chapter 1: Introduction
1.1 Title of the research
The title of this dissertation is “The Role of Business Management Techniques in Increasing
the Productivity and Efficiency of an Organisation”.
1.2 Aim of the research
There are number of business management techniques which can be helpful in order to
increase the productivity and efficiency of any organisation but to choose the best technique is
one of the difficult decisions to execute. Therefore the aim of this research is to study different
management techniques, their impact on the organisation and the right choice of those techniques
when it comes to different levels of management, employees and the organisation partners, and
how to keep the employees and the organisation satisfied.
1.3 Research Objectives
The primary aim of this research is to investigate, analyse ad review the role of business
management techniques in increasing the productivity and efficiency of an organisation. This
aim will be achieved by reviewing various business management techniques and their impact on
the productivity, effectiveness and efficiency of an organisation. The primary aim will be
accomplished by achieving several research objectives which are outlined below.
1. To analyse theoretical models of various management techniques and the implementation
of these techniques in business.

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2. To review the overall impact of business management techniques on the short term and
long term performance of an organisation.
3. To review models of productivity, effectiveness and efficiency in the context of
organisations.
4. To investigate how productivity of organisations can be measured and what steps can be
taken to increase productivity.
5. To determine how management techniques are implemented by several retailing
organisations in the United Kingdom.
6. To determine whether theoretical models of business management techniques are
implemented effectively in organisations.
1.4 Research Scope
This research has a scope limited to the research methods explained in the third chapter
of this research report and the research is performed to analyse the role of business management
techniques in the productivity and efficiency of an organisation. Although the title of this
research implies that the research is based on a broad concept but the scope has been narrowed
down to analyse the role of business management techniques in the United Kingdom. The scope
of this research has been further narrowed down to focus specifically on the retailing sector in
the United Kingdom. The research focuses on three organisations belonging to the retailing
sector of the United Kingdom which are Sainsbury, Asda and Tesco. The business management
techniques implemented in these organisations are reviewed and a comparative analysis is
carried out to evaluate the role and impact of these techniques on the productivity and efficiency
in the organisations. The research also analyses how these companies implement and review

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business management techniques to increase the levels of productivity and efficiency from time
to time.
1.5 Disclaimer
The research has been conducted after acquiring proper permission and approval from the
supervisor and all data and information contained in this research report is presented after
thoroughly reviewing and considering all issues relevant to copyright and plagiarism. The
researcher has written this report with an objective of not to be exhaustive and only the most
relevant and reliable information has been included in the report. The respondents and research
participants were only approached after receiving approval from the research supervisor and the
researcher has taken extreme care to protect and safeguard the identities and personal
information of all research participants. Any information and data acquired from research
participants is presented in this report after receiving permission from the participants. Albeit the
researcher has taken extreme care in performing the research and preparing the research report
but this report should not be used for making important decisions. This report is distributed with
the sole purpose of research and the report should not be resold, lent out, rented out and
distributed for commercial gains without taking prior permission from the supervisor and
researcher.
1.6 Proposed Research Methodology
Selecting the best research methodology for a research is one of the most important decision
the researcher have to make, since the entire result of the report depends upon it. There are
different methods of research that can be applied in a proper research to arrive at possible results.
When it comes to research methods it can be said that there are two major approaches of research
which are known as qualitative research and quantitative research. Since, theoretical models will

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be widely used in this research that is the reason why qualitative research approach will be
utilised in this research. Data would be collected from different websites, books, journals,
articles etc. Case study method would be utilised in this approach and through this approach the
case studies of different organisations that are working in the retail sector would be utilised like
ASDA, Tesco and Sainsbury.
1.7 Background of the Research
Peter F. Drucker long ago made the vital distinction between ‘efficient’ and ‘effective’, in his
book, Management, as he implied that when an activity is performed in a swift and economical
manner it is efficiency and if the right thing is being done correctly it is effectiveness. On the
other hand, he also suggested that whenever a wrong thing is being done it is totally ineffective
with respect to definition (Drucker). Rare sense plays a very important role as it can guide the
employees and organisations towards the correct and specific objective whereby achievement
will be quite effective. But if the wrong thing is being done then the efficiency of the
organisation will be driven into the ground. Rare sense can enable an organisation to achieve
success as it is the rarity which will lead to success.
However, if we talk about productivity, it implies yielding the desired results, creating
strong strategies, creativity in ideas, achieving business goals and targets and coming up with the
best and appropriate business solutions.
When a team lacks in efficiency and productivity, more chances are that the problem is not
with their qualifications, experience or knowledge. The problem usually occurs because of the
incorrect implementation of management technique and lack of motivation (Fuchsberg).

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Now the question is how to increase the efficiency along with the productivity? And to
answer this question, different management techniques came into the picture that can increase
the efficiency and productivity.
Another question arises now, what method do we need to adopt? Is there a single strategy
that can be used in order to facilitate everyone or different type of strategy must be implemented
with respect to organisational hierarchy?
By the help of this research we will identify which management technique best fit in the
organisation and how they can be implemented and how they are going to help increase the
organisations productivity and efficiency.
1.8 Structure of the Report
The entire report is divided into 5 main chapters. A brief description of these chapters is given
below:
Chapter 1: Introduction
This chapter gives a quick overview about aim and purpose of the research, why there’s a need
of this research and what would be our analysis or outcomes of conducting this research. The
back ground of the research is also included in first chapter i.e. what is efficiency, productivity
etc.
Chapter 2: Literature Review
This chapter will give detail information about the research topic. Various materials from
different modes like internet, different e-books and articles will be included in this chapter.
Different researchers and their study would also be included in this chapter and in the light of
their study; critical analysis would also be done.
Chapter 3: Research methodologies

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This chapter would focus on different approaches of research methodologies. Primary, secondary
data types and different models are analysed in this research. A final research strategy is also
selected in this chapter through which the entire research will be carried on.
Chapter 4: Findings and analysis
This chapter will portray the actual results and findings of the research. Analysis and findings
that are collected through different books, websites, and journal articles etc. will be included in
this chapter.
Chapter 5: Conclusion
The conclusion or the final outcome of the research is the last chapter of the research report. The
entire research, its study and findings would be concluded in this chapter. Certain
recommendation would also be included in the last chapter of the dissertation which is the
conclusion chapter.

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Chapter 2: Literature Review
This chapter would focus on different theoretical terminologies and aspects that are directly
related with the management of organisations.
2.1 Management Functions
The management function solely clarifies the job of the managers. The commonly
mentioned management functions are planning, organizing, leading, and controlling, though
some of them are classified as additional functions. The management functions define the
management procedure as distinct from various business functions like accounting, finance,
marketing, etc. Through these functions it is facilitated to obtain a practical means of
categorizing information about management. Also a functional framework has been developed
consisting of the most significant management transcripts present since the year 1950 (Stephen J.
Carroll).
Planning
The first component of management is planning which comprises of setting goals and defining
an action plan for attaining these goals. Planning entails that planners or managers should be
aware of the environmental settings faced by their company and predicts impending situations. It
is also vital that planners or managers should be able to make good decisions.
Planning process consists of various stages. The process initiates with environmental skimming,
which merely means that the planners or managers should be conscious of the serious

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possibilities faced by their companies in regards to current economic situations prevailing, their
competitions, and their customer base (Dobson, Starkey and Richards). Planners or managers
must then try to predict future circumstances. The planning function is based on these
predictions.
The objectives of the organization should be decided by the planner or managers and a plan
should be chalked out on how to achieve them. The vision and mission of the organization
provides mostly the much needed information. The function of planning comprises of two core
parts that are the formulation of core activities to achieve the objectives and then ensuring that
the plan is being implemented (Hitt and Ireland). For example, for a new restaurant business, the
planner or manager need to work upon various types of plans like the marketing plan, hiring plan
and sales plan.
There are various kinds of plans and planning.
(a) Strategic Planning
Strategic planning comprises of scrutinizing competitive prospects and pressures, as well as
the organizational strength and weaknesses, and then deciding on how to run the organisation so
it can effectively and efficiently competent in market. Strategic planning is a lengthy procedure,
mostly three years and above. Planning strategically usually comprises the whole company and
devising of goals (David). The function of strategic planning is mostly built on the mission of the
company, which is its core purpose of being. The function of strategic planning is mostly carried
out by the top management of the company.
(b) Tactical Planning

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Tactical planning is intermediary planning that is intended to create comparatively solid and
precise methods to apply the strategic plan. Tactical planning is commonly done by mid-level
managers. The tenure of tactical planning is usually one to three years.

(c) Operational Planning
Operational planning generally undertakes the responsibility of objectives and states
methods to achieve them. Operational planning is short-range planning that is planned to
create particular action plan that backs up the strategic and tactical plans (David).
Operational planning generally has a short tenure that is from one week to one year.
Organizing
Organizing is a management function that comprises of creating a structure in the company
and then assigning human resources to confirm the achievement of goals. The company is
organized within the proposed structure inside which the work is synchronized accordingly. The
structure is typically portrayed with help of an organizational chart of the organizational
hierarchy describing the authoritative positions in the organization explicitly (David). Decisions
which are taken regarding the organizational structure are usually denoted as "organisational
design" decisions.
Managers are answerable for administration of the organization that comprises of managing
personnel and resources. If the human personnel are not allocated sufficient resources to

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complete their assigned work it means that the company is not organized efficiently. The lack of
organization in a job place will create a perception in the employees that the manager is
incompetent and lacking proper organizational capabilities. This will result in loss in that
particular manager’s respect regarding his managerial capabilities in the eyes of his subordinates.
Nowadays various companies have tried to achieve equilibrium between the requirement for
specialization of employee and the desire for employees to possess jobs that involve diversity
and sovereignty. Principles like job improvement and employees coordination are kept in mind
when designing a job description (Dess and Lumpkin).
Leading
Leading comprises of persuading people to achieve the goals of the organization. Leading
will only be effective and efficient when manager is able to motivate and encourage his team of
employees, connect with them by regularly giving feedback on their work, and using the
authority upheld fairly and wisely. Managers who effectively lead compel the team of
subordinates to work enthusiastically and put in the right amount of work to achieve the goals of
the organization (David). When manager acts as a leader an ideal situation arises. Leading can be
done effectively by managers when they identify the factors behind employee motivation and
inspire them to achieve the organizational goals.
To become an effective leader a manager should for a start understand the personality traits,
morals, behaviours and passions of the employees’ personnel. Thus, management functions are
more understandable through the countless theories contributed by the subject matter of

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behavioural sciences. Research studies should be conducted regarding personality traits and job
outlooks by managers to obtain significant information on how to lead employees efficiently.
Motivational theories and research studies offer significant information regarding methods to
encourage employees to perform productively. Communication research studies offer guidance
as to how managers can communicate effectively and convincingly (Hunger and Wheelen).
Leadership research studies responds to queries like on how a manger can become an effective
leader and what leadership styles works best in different situations.
Controlling
Controlling mostly comprises of assuring that employee work performance do not deviate
from set criterions. The function of controlling includes of three stages, which are creating
performance criterions, matching actual performance against set criterions, and taking corrective
measures when required. Performance criterions are usually recognized in financial terminology
like revenue, costs, or profits, but can be also specified in other words, like units produced,
number of faulty goods, or customer service level (Humby, Terry and Phillips).
Performance can be measured by various methods based on the principles of performance
that comprises of financial statements, sales reports, production results, customer satisfaction,
and formal performance appraisals. The controlling function is somewhat practiced by managers
at all levels in the organizational hierarchy.
The administrative goal of controlling must not be mixed with control in the behavioural or
scheming manner. This function does not include that managers must try to control or influence
the employees’ personalities, values, attitudes, or emotions. Rather, the management function

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focuses on the role of manager in inculcating important steps to ensure that the employees’ job
activities are constant and working to attain the goals of the organisation and departments.

Effective controlling needs the presence of action plans, as planning offers the important
fulfilment to achieve criterions or goals (Hunger and Wheelen). Controlling also needs a clear
understanding of how accountability for unconventionalities from criterions is dealt with. The
budget and the performance audit are the two traditional controlling methods. Though
controlling is frequently thought of in regards to financial measures, managers should
accomplish production/operations procedures, delivery process of services, compliance with
organizational rules, and various extra happenings inside the company.
The functions of management like planning, organizing, leading, and controlling are
extensively evaluated to be the top methods of defining the job of the manager and also the finest
method to classify gathered information regarding management studies. Though there have been
significant alterations in the environmental society confronted by managers and the procedures
implemented by managers to accomplish their duties, managers continue to implement these
basic functions.
A manager is responsible to undertake various tasks. The tasks being planning, organizing,
leading and controlling as four core tasks which should be implemented in management level.
Management is a balance amongst various constituents and an effective manager should be
capable enough to sustain the balance and retain employees’ motivation.
The information given above highlighted the rudimentary business management methods in
increasing the efficiency and competence of an organisation.

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2.2 Management Styles
A manager's style is dependent upon various factors like the situation, the circumstances, the
requirements, desires and the characters of the employees in the organization, the culture and the
organizational environment. Modification in organisational framework and culture has brought
around a revolution in the management styles also that vary with time accordingly (Keller).
For example, previously, authoritarian management style was implemented in organisations
which focused on control being the main function. Now the style has been replaced by the one
focusing on employee fellowship and employee sovereignty. Managerial styles that emphasized
on managers being technical specialists who directed, commanded, coordinated and controlled
the employees’ work have now been resolved with those which focus on managers being
instructors, supporters, guidance counsellor, organizers, and team leaders. (S. Robbins, 9)
The best effective management style is the one that comprises team structuring, relationship
networking, training and development of employees and motivating people. There is a more
focus on participative style of management and people management expertise. Theories of
management have discovered proof that supports the merits of styles of management like
participative management, Theory Y versus Theory X; Theory Z, Total Quality Management
(TQM), Management by Walking Around, Management by Objectives, and employee
empowerment. The styles of management mentioned are described below:
Participative Management
Participative management comprises information distribution amongst employees and
involving them in making decisions. Employees are encouraged and facilitated to manage their
department and to suggest new ideas and viewpoints and to take decisions to make rules and

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processes. This style of management is generally sponsored as the fast cure of low self-esteem
and poor organizational productivity. Though, this approach is not appropriate and applicable in
every company and at every hierarchical level.
Employees possessing robust talents and capabilities should partake in the organizational
events. Employees should have the technical experience, communication abilities, and intellect
to take decisions and converse those decisions efficiently and proficiently to the third party
(Keller). The organizational culture should be helpful and should acknowledge employee
participation though the employees should be cautious to participate in only the relevant subjects.
Representative participation acknowledges employees who are represented by a small team
by contribute towards the organizational goals. Reallocating power inside the business is an
objective of representative participation. The interests of the workers hold similarly that much of
importance like the interests of management and stockholders.
In the book Essentials of Organizational Behaviour, written by Stephen P. Robbins it is debated
that the two greatest prevalent kinds of representative participation are works councils and board
representatives.
a. Works councils
A group of workers who have been chosen by their colleagues and who possess the
power to be included in or checked by management when taking decisions related to
employees.
b. Board representatives
These employees are who are part of the board of directors and represent welfare of
workforce.

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In participative management, representative participation is thought as bad option for improving
performance and morale. As indicated by various proofs, the whole effect of representative
participation is not so vast. The employees involved in representing workforce acquire greater
advantage than to those are represented (Schilling).
1. Theory Y versus Theory X
In the book, The Human Side of Enterprise written by Douglas McGregor it describes Theory
X. The Theory X states that people are lazy; they are not concerned with work, and manager’s
duty is to coerce or compel the employees to put in effort. The Theory X presented by McGregor
expresses three main norms that are:
(1) Many people do not prefer to work and create all the imaginable reasons to avoid doing
it
(2) Most of the people need to be forced, compelled, controlled, guided, terrorized or
penalized to complete their jobs in order to accomplish goals and objectives of the
organization
(3) Generally, people like to be guided, to receive directions from top management or their
colleagues; they are not eager to be held accountable for the work done by them, possess
low motivation and low morale than others and concentrate greater on job protection instead
of career goals.
According to this theory, displaying creativity and enthusiasm is the duty of the employee
and if he fails to perform he is accountable for the failure (Drucker, The Practice of
Management). Extrinsic rewards such as money, promotions, and tenure are some of the factors
through which employees are motivated.

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As per the Theory Y employee behaviour is different when they are dealt by their
superiors differently. Theory Y considers employees are controlled by high-order needs. The
Theory Y assumes:
(1) Most of the human being does prefer to work and it is as normal as playing;
(2) To attain goals, many people will use self-direction and self-discipline;
(3) To accomplish structural aims, benefits of satisfaction and self-actualization are acquired
through work the worker puts in;
(4) The normal human being not only takes but also pursues obligation;
(5) Most of the workers are imaginative and creative in resolving administrative difficulties;
(6) The rational capabilities of the normal human being is only partly appreciated. If a
worker does not perform effectively and is not contributing productively it is considered that
the manager has failed. Managers are also accountable if workers are not inspired
adequately (Hunger and Wheelen).
2. Theory Z
William Ouchi was the one who founded the Theory Z after studying management practices
in the United States and Japan. Theory Z is the mixture of both the portion of U.S. and Japanese
styles of management and is occasionally referred to as Japanese Management (Aaker).
As per this theory, the finest styles of management are the one which encompasses workers
at all organizational levels. Certain specific features in Theory Z comprises of long-standing
occupation, fewer career specializations, easy-going regulator, team decision taking, and
apprehension for the employee enhancement over the occupational matters. This theory fulfils
needs requirement at both the levels of lower and higher needs.

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Lower level needs are fulfilled by paying special attention to welfare of employees. Middle
level needs are fulfilled by assimilating group procedures in making decision and inspiring
employees to accept responsibility and charge for the work and to actively participate in making
decision fulfils higher-level needs. There’s an enhancement in the most of the firm’s
productivity, as they are now providing more focus on collective decision-making and teamwork.
Organizations are also involved in the personal problems of the employees, such as childcare,
easy work timetables, and tele-working to enhance organizational productivity (Aaker).
3. Total Quality Management (TQM)
Total Quality Management (TQM) is a style of management that includes all roles of an
organization to acquire a highly superior product. The main features are customer gratification,
employees’ responsibility for high quality, and employee collaboration. As a unified technique,
this theory involves every dimension of the company (Aaker and Mcloughlin, Strategic Market
Management: Global Perspectives). The whole human personnel, from the employees like the
line worker to the CEO, should be involved in a common obligation to develop the business
quality.
TQM encourages employees to improve, nurture and acquire and to donate in expansions, so
it exhibits a participative style of management. TQM also inspires a varying or an on-going
procedure, and highlights the notions of continues enhancement or better quality (Deming, 49)

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The pioneers of the quality movement were the Americans W. Edward Deming and Joseph
M. Juran. They contributed mostly after World War II in Japan, and are accredited with the
greatest improvement in the Japanese products quality by the 1970. Later in the era of 1980s
both pioneers were extremely prominent in the quality management movement of the United
States.
4. Management by Walking Around
Management by Walking Around (MBWA) is a traditional method implemented by
righteous managers who are active listeners. Managers implementing this style gather
information so that a puzzling situation does not create a greater issue. When managers listen
intently to employees' propositions, demands and apprehensions will aid to evade likely
predicaments. MBWA encourages managers by giving real-time information regarding
procedures, techniques and rules that is frequently evaded in proper communication networks.
Management acquires a perfect image by walking around of the state of self-esteem in the
company and can help out if there is an issue.
A likely apprehension of MBWA is that the manager will foretell employees' choices. The
manager should endure their character as instructor, counsellor and analyst. By empowering
employees with decision-making duties, managers can be confident of the fastest possible
responses and feedback (Drucker).
As per the views of Max Messmer, an error managers commit is to unintentionally create
more responsibilities for employees. By proposing recommendations that should be assumed as
tasks, managers can improve the work capacity and restrict growth.
Messmer describes a case of employee team working on a venture that involves a dealer of
plastic moulding. When the manager comes, the team has studied three businesses and chosen

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the best one. The manager also identifies a good business, and commends that team fellows give
this association a call. They will not feel happy in admitting that the choice has been made, and
will call the company to please the manager.
5. Management by Objectives
Management by Objectives (MBO) is a widely spread process in the company where
employees energetically participate in goals setting that are concrete, certifiable, and
quantifiable. In 1954, in the book, The Practice of Management; Management theorist Peter
Drucker founded this style.
MBO conveys a methodical process of promising that all workers and teams establish
objectives that are in alignment with accomplishing the overall company’s objectives. Sme
examples of businesses that implement MBO at various levels in organizational hierarchy are
Xerox, Intel, and Du Pont. Overall administrative goals are converted into fixed goals for
employees (S. P. Robbins).
Goals at each organizational level are fixed together by a "bottom up" technique and also a
"top down" technique. So, if every person achieves the respective objectives, then each
organization divisions will accomplish its objectives and the overall organizational goals too will
be achieved (Schilling).
There are four stages included in the MBO process:
a. Goal formulation,
b. making decision by participation,
c. plan execution, and
d. Performance feedback and correction.

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Senior managers collaborate with middle line managers and middle line managers
collaborate with lower level managers to establish objectives for the respective departments.
Every manager then collaborates with personnel of their department and assigns separate
achievable work objectives (Dobson, Starkey and Richards). The participative decision-making
stage allows managers and employees to jointly develop objectives, outline accountability for
achieving the objectives, and establish the appraisal procedure.
Managers are allowed to device their policies and regulate their own work. This stage of
MBO abuses each manager’s proficiency to profit the business and applauds and permits
managers to continuously improve their expertise.
The last stage is to continuously offer criticism on job done and achievement of goals. By
occasionally revising employees' objectives can be enhanced or better objectives can be
developed. This stage matches the certified evaluation scheme because the incessant criticism
through the year enables people to remain aware of their development.
Like any other styles of management, the organizational ethics must be advantageous for
MBO to be successful. Senior management should be devoted and included in the MBO scheme
for it to be productive. This style of the management is not without its problems. Managers
regularly set the objectives of their departments too closely at the cost of the organizational
tactical aims and objectives (Drucker, Management).
One more issue originates when managers are not supple in establishing goal development
and assessment measures and employees fail to respond to problems quickly. Unfeasible
anticipations regarding consequences are frequently an issue with MBO schemes also the
unwillingness of management to apportion compensation according to the attainment of
independent objectives.

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6. Employee Empowerment
Employee empowerment is one of the styles of management that places the managers in the
character of coach, counsellor, consultant, trainer, promoter, or organizer. Decision-making is
being dedicated down to the lowest hierarchical level of the company. The method by which
performance is evaluated and the method through which companies are organized are revolving.
Empowerment comprises entrusting the power of decision-making by perceiving the act to be
reserved for a chore that is assessed to be important by both the manager and employee (Dobson,
Starkey and Richards). The key reasons for applying an authorization scheme is to offer
immediate answers to business issues; to offer probabilities for employees to develop and nurture
and; to decrease administrative expenditures by permitting the manager to work on many
schemes.
Employee authorization is typically productive when management has established perfectly
achievable objectives and stated certain responsibility criterions. The achievement of employee
authorization is based on the capability of management to deliver means like time and money; to
offer help through authority; and to offer relevant and accurate information so employees can
take intellectual decisions efficiently and effortlessly (Aaker and Mcloughlin).
Certain other parts that are imperious to the accomplishment of authorization schemes comprise:
employees training so that they can develop and make comprehensive decisions that are
approved by senior management as well as lower management, and hold themselves responsible
for those choices
Employees are benefited from authorization as they have extra obligations in their
occupations. Employee authorization increases the state of employee participation and thus

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creates a greater feeling of contentment and greater states of inspiration. There are probable
issues with authorization schemes that frequently end up in adversarial consequences.
Sometimes inconsequential, insignificant and dull responsibilities are delegated by the
managers to the employees and work on the complex, significant and essential assignments
themselves. Authorization will not be productive unless the power and decision-making duties
are observed extremely significant and important by the worker (Aaker and Mcloughlin).
One more issue arises when managers not only allocate insignificant responsibilities to the
human personnel but also they assume that the worker will always look for their direction and
refer them for consent. Managers should evaluate the capabilities and talents of the employees
and decide if the business culture can maintain an authorization scheme before introducing it.
7. Self-Managed Work Team
Employee authorization leads to the development of self-managed work teams. This style of
management delegate the power to take decisions like how to use money, whom to select and
recruit, and what ventures to accept and to toil on. Self-managed work teams are generally
encompassed of 10 to 15 individuals and need minimal regulation. Xerox, General Motors,
PepsiCo, Hewlett-Packard, and M&M/Mars are some of the companies that have implemented
self-managed work teams. As per the views of Stephen P. Robbins, out of every five companies
there is a must that one of them exercise self-managed work teams (S. P. Robbins).
Managers should select a style of management that suits them, their divisions, their
colleagues, their team fellows, their juniors, and lastly the company they work in the greatest.
The circumstances managers face might entail the use of diverse styles of management

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dependent on a certain task, the management of employees, or the manager's disposition.
Management style can ultimately decide the work outcome of employees and an organization’s
development rest upon the management styles of the workers. Thus, to decide the utmost
appropriate style of management, it is vital to initially evaluate earlier outcomes created as a
consequence of a definite organization technique (Schilling).
Management levels need a certain amount of power and so managers might mostly discover
themselves in leadership situations. Though, all leaders are not managers and all managers are
not leaders. Managers who possess leadership expertise impact and inspire employees to achieve
company objectives. It is thus important to remark that specific style of leadership develop as
productive styles of management too.

2.3 Business Management Techniques
Every specific business styles of management have its portion of qualities, difficulties
and problems.
A manager implements numerous diverse management practices to take responsibility of
respective business divisions. The management procedure an individual implements can depict
his character or it might be an outcome of personal understandings from his time as an employee.
Every business management style possesses its portion of qualities and issues.
a. Autocratic Technique
An autocrat is a leader of limitless control and power. An autocratic management system is
implemented by a manager who prefers to take all of the verdicts and have total power over his

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subordinates. They prefer to provide commands and have those adhered to promptly. Their
method is to regulate employees to attain full efficacy and output (David). They are not
concerned in heeding to worker’s opinions. An autocratic management system can affect most of
the workers negatively, but it could be productive in a huge organization with amateurish
employees, or when a company is facing an emergency situation and choices are required to be
made promptly.
b. Paternalistic Technique
A paternalistic management practice is mostly focused on the societal part of the organization.
They are worried regarding their employees feeling about the tasks assigned and added problems
and will constantly deliberate their opinions when taking decisions (Kincki and Kreitner). They
are ready to make ultimate decisions, but would like to refer with their subordinates frequently
and do what is fine with all. A paternalistic management practice can decrease generally the
decision making process, and might not be the suitable for a running situation.

c. Democratic Technique
A manager who implements a democratic management method attempts to implant faith in the
workers. They allow them to take decisions and authorize them by giving power. They
demonstrate decent conversing abilities and are accepting of new propositions and notions from
the workers. A democratic style of management can end in unhurried decision making process
and more errors because the employees entrusted with the duty of making decisions are not at all
times capable enough to do it correctly (Kincki and Kreitner).
a. Hybrid Technique

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A senior manager will identify that each worker is diverse and that a single particular
management practice will not be effective for every person. He will create a mixture of the three
management procedures that takes into account every employee's distinct learning method and
character. This kind of management practice can be stimulating when collaborating with huge
employee teams, but with tolerance and serenity, would eventually acquire the maximum out of
everyone (Kincki and Kreitner).
2.4 Productivity
An easier technique of viewing productivity in a company is to ponder it in relation to the
productivity model depicted below.
Fundamentally, productivity is a measure to assess how efficiently an institute (or individual,
business, nation) transforms various resources like human resource, supplies, machinery into
final products of goods and services (Jackson).
This is generally stated in fractions of input resources to output resources. That is (input) price
per (output) finished goods / service. It is not said to be an evaluation of how productive the
transformation procedure is.
The Productivity Conceptual Model depicted underneath adopts the image of a 'productivity
tree'. The roots signify the inputs to the scheme, the trunk the transformation procedure and the

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vegetation and fruits the schemes outputs.
Productivity is merely the quantity of output you acquire per unit of input. It is a cost benefit
analysis of a process (Jackson). So for example the process with an input of 5 and output of 5,
its productivity is less when compared to a process with input of 5 and an output of 10. Stating
productivity with the help of an analogy it is just like the miles per gallon of fuel in your vehicle.
It conveys how far a vehicle can be driven on a certain quantity of fuel. Here, the superior

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management’s perspective regarding productivity is going to be highlighted initially then from a
more personal outlook it is going to be evaluated (Jackson).
Employee Productivity
Mathematically, the formula for productivity is output divided by work put (input). So O
denotes output, I denote input then P denotes productivity. Hence the equation of productivity is
mentioned as follows:
P = O/I = Output / Input
If an employee creates widgets, the boss will possibly evaluate the result (output) in relation to
how many widgets were produced and input in relation to how much it costs. So, if the
employee can produce 100 widgets hourly and it costs $15 hourly to produce it, the productivity
is calculated to be 100/15 or 6.6 (Brooks). For example, now if a colleague who produces 75
widgets hourly but it charges the boss $10 hourly. Who the boss thinks is more productive?
The productivity is calculated as 75/10 = 7.5. So the colleague is really more productive in
regards to the quantity of output the boss receives for a certain level of input.
This is amazingly significant to comprehend. If the boss needs to lay off an employee he will fire
the worker with low productivity even if the colleague is producing 33% less widgets per hour.
The boss is considering only the less cost factor and high productivity (Brooks).
When you work for someone, it is easier to emphasize on the output and not on the expenditure.
You simply can over state your input by not considering the real productivity you produce. To

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help avoid impact of economic recession it is important to comprehend the viewpoint of the
superior management regarding productivity.
Measurement of Productivity
Simply stated, measurement of productivity is the assessment of the output and input of a
productive scheme. The purpose is to develop a schedule measuring quantifiably. The goal of
productivity assessment is output enhancement, which comprises of a mixture of amplified
efficiency and an improved usage of accessible assets (Brooks). Defining productivity in a
shorter manner is simply the relationship between output and input, though what productivity
actually is has been a bone of contention amongst many professionals’ opinions. It can be thus be
stated that the productivity measurement seems simple only theoretically.
Practically, though, both assessment of outputs and inputs includes an accumulation issue, and
this issue has placed measurement of productivity in the dimension of intricacy. Such as, the
query of how to combine diverse goods that do not always have superiority includes the cloak to
be detached from output measurement.
In a similar manner, the issue of how to combine the various kinds of inputs into a definite
compound component rests a serious one in input measurement. To resolve output and input
accumulation issues, chiefly when diverse inputs and outputs are joined, some writers
recommend that inputs must be aggregated up in ‘fixed price’ monetary standards (David).
Similarly it should be implemented also for output measurement. The ambiguity in this method
is that the resulting efficiency schedule would be economic output and not physical output,
which would more mean more to people implementing efficiency procedures.

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Focusing over on the input assessment issue is the query of how investment contribution is
evaluated. Therefore, inclination is frequently stated for a particular feature about the assessment
of efficiency, and it is not unusual to understand that focus is on manual labour contribution.
Three motives are occasionally placed in front to validate the usage of labour contribution for
aim of measuring fractional efficiency, which are:
(i) Labour is considered as the greatest significant aspect of productivity;
(ii) Labour is the easiest aspect of productivity that can be quantified;
(iii) Labour is the sole aspect of productivity that has power about the influence on output.
A quantity or schedule of collective production divided by the witnessed amount of a lone
contribution hence became the first method of efficiency evaluation (Armstrong). This index-
number tactic centred over the usage of solitary or fractional feature of output procedures has a
single exclusive benefit: calculation easiness and practicality given that the essential cumulative
labour contribution statistics are accessible. The utmost inadequacy of limited aspect of
efficiency processes, chiefly labour efficiency processes is its incapability to classify the
fundamental reasons responsible for perceived output evolution. For example, replacement of
wealth for labour, the use of (labour) competent features of capital, the comprehension of
economies of scale and the service of efficiently skilled workers would be showcased in a
schedule of productivity per man per hour.
Evolving works on efficiency assessment shows that primary efficiency procedures rotated round
the worth of combined productivity per man-hour of work contribution in spite of the issues
related with gauging labour contribution. Currently, efficiency investigation has concentrated
greater on total factor productivity (TFP) evaluations, where widespread collections of
productivities and contributions are of importance (Dodd and Sundheim). It is useful to

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understand that productivity concept forms the foundation for examining the features that
elucidate productivity level variations. It is acknowledged from existing texts that, the degree of
productivity is influenced by three aspects:
(i) The level of technological equipment or the sort of manufacturing procedure implemented;
(ii) The amounts and kinds of asset resources used in the output manufacturing procedure;
(iii) and the proficiency with which those asset resources are used.
Improving Productivity
Advancement in productivity can be noticed by implementing the productivity model:
• Attaining additional productivity from the same input resources
• Attaining equal productivity from a lesser amount of input resources
• Attaining greater productivity for a little extra input resources
• Receiving little productivity from very few amount of input resources
There are six methods to expand the efficiency ratio of a company, which are:
• Develop rudimentary procedure by initiating research and development (long term)
• Develop and use a new production building, production tools and machinery (long term)
• Shorten product line and decrease variations (middle term)
• Develop current approaches and processes (short term)
• Develop the organization of work tasks and the usage of employees (short term)
• Enhance the whole efficiency of workers (short term)

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If workers are correctly inspired, trained, given the correct data at the correct period, usage of
easy efficiency enhancement processes and methods and are remunerated in a suitable manner
(Brooks).
It is of common knowledge that human personnel are the central asset of any organization. The
best top businesses are those with the finest manpower and the best workforces are those who
perform to their maximum capacities. As per the facts and figures, many corporations exploit
hardly twenty percent of the employees' talent. Performance administration is dire in allowing
managers to not just stimulate employees and enhance productivity, but also to resolve meager
performance problems.
How Performance Management Increases Productivity
Managers who need to enhance level of motivation in the workforce should implement operative
performance management practices. They should to take into account that every human being is
motivated differently through the use of diverse tools and measures. While financial rewards
might affect some individuals to perform better, other personnel might desire acknowledgement
or appreciation for work done. Literature of various researches indicates that official
acknowledgement is the sole major stimulus for many individuals. Employees like to be
appreciated in front of an audience who may be their peers, family, or friends. This humble
acknowledgement transforms straight to improved efficiency (Leimberg).
Catering to the issue of employee's poor job performance and methods to enhance the
performance is a part of performance management. If an employee has been late occasional or
his performance indicates a downward decrease, there are productive performance management

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procedures by which the superior can assist the employee to resolve main cause of the issue and
to work towards personal development. Authorization of employees is an additional performance
management practice that can improve efficiency levels. Many workers like being responsible
for jobs and appreciates the fact that they are trusted by the senior management to be entrusted
with a work task and to perform efficiently to complete the task (Crouch).
How Performance Management can decrease turnover
When the topic of performance management is floated, many organizations adhere to the fact
that they can more regarding it. Regrettably, most organizations are of the view that
compensating employees is sufficient to hold gifted human resources. This is barely the
situation. Productive performance management at all hierarchical levels in an organization
involve workers in evaluating how performances could be enhanced. For instance, appointing a
specialist to carry out an unspecified investigation and centred on the investigation statistics,
making workers focus groups to review alarming issues (Crouch). This enhances the value of the
statistical data and also inspires workers to participate in the procedure.
Additionally, employees can be requested for contributing their opinions related to the
procedure. Such involvement of workers is a vital aspect of performance management and
personnel retention. The use of monetary benefits must comprise of all personnel who have
finished definite assessment duration. This assists to highlight that personnel retention is vital to
the company. One more productive performance management practice is to take into
consideration the faithfulness to the organization or amount of duty as a measure of the
motivational strategy.

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By using a productive performance management scheme, an organization can help stimulate
employee efficiency and diminish employee turnover (Crouch).
How to increase productivity of an employee
It is imaginable for an organization to have extra workers than its competition yet the
organization have less production output leaving the management disappointed, because the
wages of employees are too greater than its competition and still the employees are
unproductive. Productivity analyses and situational analysis show that augmented employee
inspiration and contentment can enhance employee productivity. Creative managers nowadays
attain output improvements with human resource management procedures other than pay
incentives.
Employee productivity can be enhanced by inspiring with providing good work environment and
by altering remunerations to meet the requirements of workers (Crouch). Expenditures are
progressive human resource management costs which are not greater than personnel turnover
that is recruiting and training and development of new workers, unjustified pay increments, and
poor yield. Benefit derived are improved efficiency; faithful, competent employees; superior
work, and improved chancing of operating the business.
The crux of employee incentive and efficiency is the way in which they are accomplished. A
direct relationship exists between productive management; that is, offering a working
environment which facilitates to accomplish organizational and employee objectives; and
contemporary human resource management are directly related (Crouch).

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The management achievement is assessed by its ability and understanding in identifying and
evaluating problems that relates to the workers and by the management’s capability to solve
these apprehensions by collaborating with the workers.

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Chapter 3: Research Methodology
3.0 Introduction
A detailed analysis of methods to be implemented for study and assessment of data for research
are examined and analysed in this chapter. The concept behind research methodology, its various
models and tools used in research and its further explanatory details are about these paradigms,
the association of positivist and interpretivisit with the qualitative and quantitative approach to
research are highlighted in this chapter. The main emphasis on this chapter is given to various
research methodology and its implications of its application in the research process, a likewise
importance is given to research strategy applied by the researcher.
3.1 Research Methodology
The research methodology is understood as the process through which a person acquire
knowledge by the assessment of past data of previous researches, books, articles and other
sources in order to carry out personal research on specific topic. The main theme behind the
research in a specified area is to enhance the knowledge of individual on facts of present or
prove subject area or disciplined. The basis of research methodology is based on the
interpretation of researches that were initially performed and the detailed clarification of the
study, (Bryman and Bell, 2007).a fresh and innovative viewpoint are derived through the
assessment and analysis of specified subject area.
An effective research is not carried out through the process of collection and interpretation of
data. It requires a support that is attain through conclusive study of other researchers. An
effectual data collection, analysis and results to be presented are required to carry on an effective
research. Research is referred to the process which strives for the unidentified and explored new

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ideas. The process of data collection and interpretation through different methods in research
methodology is needed to reach the conclusive position of the study.
3.1.1 Positivist Paradigms
The basis of positivist paradigm is raised on the quantitative data and is objective in nature. This
paradigm supports the research relating to experimental, clinical and scientific practices. A clear
picture of reality that is easily identified and measured is obtained through the implication of
positivist paradigm. A very common use of positivist paradigm is for the scientific research
quantitative research, (Adams, H., Raeside, & White, 2007).the element of quantitative
techniques in positivist paradigm shows an objective viewpoint of the research rather than
subjective view. The use of quantitative model of positivist paradigm is applied in medical
science for the analysis and evaluation of the relation in various variables that relates to human
health, infections and diseases.
3.1.1.1 Quantitative Approach
The combination of measurements and numerical data interprets and presents data by
implementing the quantitative approach. The basis of the approach is on numerical and statistical
data. Different statistical methods are applied on the arithmetical data that is gathered through
various research areas and subjects matters. The most common application of quantitative
approach is for the scientific use such as psychology to perform research tests hypotheses by
obtaining data through various sources. The numerical and statistical data present the similarities
and differences that are established on the basis of research conducted. If the research is
conducted using statistical and arithmetical data which have previously been used should provide
the same results as the one that have been achieved by the previous researcher, if the previously
conducted research work is to be utilize any editing of data is not allowed. The data that is

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collected using quantitative approach of statistical analysis is completed using average or
measures of central tendency, (Cassell and Symon, 2004). The application of statistical data that
is collected from the population is applied using technique such as regression and correlation
3.1.1.1.1 Advantages and Limitations
Various advantages and disadvantage has been studied from the quantitative approach. The
quantitative approach is flexible in nature as the time required to collect, evaluate and present the
data is negligible and it allows the researcher to make any changes in variables that can be
simply identified and measured. The objective nature of quantitative data assists the researcher to
compare the numerical data with each other that might be difficult for the user as compare to
subjective data. The limitation that is associated with this method is the quantitative approach is
its over simplicity characteristics and its inability to provide required results that may be linked
to general situation is real life scenario. Another limitation of quantitative approach is its
objective nature because the statistical techniques would not be useful if they are applied to
subjective data. The conclusion that is reached by implementing quantitative approach is only
useful if it is utilize for specific research rather than general condition. The process might cause
different variables to be ignored as it emphasis on specific variables, (Fisher, 2007).
3.1.1.1.2 Deductive Method
The conclusion under the deductive method of quantitative approach of research methodology is
arrived by tapering the facts. Various principles and logical rules are used by the researcher to
reach the conclusion under deductive method, (Easterby-Smith, Thrope, and Jackson, 2008). The
researcher would obtain an accurate conclusion if the research is initiated from accurate
principles. Under this deductive method, the research process starts from general premised

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logical principles and by ultimately arriving at specific conclusion in the disciplined or subject
area.
The research under deductive approach is mostly based upon previously established hypotheses
rather formulating the new approach. This approach is known as top down approach because its
progress from the generalised pattern to the specific conclusion that are drawn, (Krueger, 1994).
It is worthwhile; to note that the deductive method does not formulate new hypotheses nor it
accepts of rejects the hypotheses that have been previously established by the researcher.
3.1.1.1.3 Inductive Method
The research under inductive method formulates its research based on newly established
hypotheses on the researches that have been not worked on. When working on the research under
inductive method a specific subject area is selected based on different assumptions, principles or
facts that are employed to reach the conclusive stage. Researches that are conducted on the basis
of inductive method assist the researcher on every step during the flow of researches elucidate
each essential in order to avoid uncertainty.
The research under inductive method is conducted on the basis of newly formulated hypotheses
rather initiating its research on the basis of conventional research hypotheses. This method is
most appropriate or reliable to work on the subject areas where no clear research has been
previously conducted due to vivid values or facts that are inappropriately interpreted, (Easterby-
Smith, Thrope, and Jackson, 2008). The research is begun by choosing the appropriate research
and data are gathered from previous researches, books, journals and other sources. The better
research method is achieved under inductive method on the areas where previously less work has
been performed and no specific knowledge is known to the people.

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3.1.2 Interpretivisit Paradigm
This interpretivisit paradigm conducts researches based on subjective manner rather in objective
manner. It uses qualitative method of evaluating the data rather than quantitative method.
Interpretivisit paradigm is more beneficial on the areas such as social science and behavioural
studies. It is form on the basis that reality can be partly calculated or experimented through
attitudes, beliefs and behavioural patterns. These outline may be provide useful knowledge but it
cannot be successful applied for quantitative research approach, (Saunders, Lewis and Thornhill,
2006). The characteristic such as its subjective nature of qualitative approach facilitates the
researcher to reach the general conclusions. This paradigm studies and performs tests on human
behaviour under different scenarios. The research conducted under interpretivisit paradigm is
involves interviews, ethnography, questionnaires, participant observations, study of small
illustrations and case studies.
3.1.2.1 Qualitative Approach to Research
The qualitative approach to research is used to conduct on the basis of potency, concentration
and affluence that relates to the happening or issue by understanding the real life incidents and
behavioural pattern, which relates to the areas such as social sciences, finance, economics and
behavioural studies, (Wellace and Wray, 2006). The emphasis under qualitative approach is
based on the abilities and coordination between the researcher and participants associated in the
process. On the other hand, the quantitative approach emphasis on the analysis and interpretation
of data during research process. The factors such as personal beliefs, knowledge, abilities and
views of the researcher play an important role regarding the outcome of research. The research
performed under quantitative approach cannot be applied in the area such as finance, economics,

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social sciences and other subject areas where arithmetical and statistical data are not accessible;
in such case qualitative approach is used.
3.1.2.1.1 Advantages and Limitations
The qualitative approach also has its advantages and disadvantages. Qualitative approach tends
to be more flexible as it can be as it can be sort according to the circumstances. The continuous
participant that is seen in this research process results in better conclusion. As this approach
consists of more open ended questions in the questionnaire and interviews, the research
participants reaches to better stated answers that assist the researcher in the process, (Miles and
Huberman, 1994).
The basic limitation that is linked with this approach is the preference the researcher gives to the
participants on the subject areas. Another drawback is limited possibility and importance is that
is given upon the subjectivity because the use of same sort of samples for different areas gives
different conclusion and the research process under this approach requires extensive time period.
3.2 Primary Data
The primary data is the collection of data that is used for the current research work and have no
relevance to the past performance. The primary data has its various advantages as it is gather to
facilitate in the current research process and hence it is more relevant, (Krueger 1994). As the
primary data is collected due to the personal involvement of the researcher its findings are more
accurate and are adequate to execute the research process. However, the criticism that is linked
to the application of primary data is the extensive amount of time that is needed to data
collection. Another drawback of primary data is the fact that it is not cost effective as it incurs

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cost for designing of questionnaire, travelling and transportation and telecommunication
expenses for the collection of primary data.
3.2.1 Primary Data Collection Methods
There are different techniques that are used for primary data collection during the research
process. The commonly used primary data techniques are survey research and observations. The
survey research has two main essentials: interviews and questionnaires. Questionnaire is most
often send through postal services, e-mail or questionnaire posted on the blog, website or one-to-
one interview conducted or through telephone. The other method observation includes the
researcher’s personal observation in evaluating the cause and outcome of the interrelation of
variables. The most effective observation of data collection relates to focus group discussion
using personal observation.
3.3 Secondary Data
The secondary source of data roots from the primary research that has been initially carried out.
Secondary source of data attracts most researchers for its cost and time effectiveness during the
process as its biggest advantage. As with the other sources and model of researches secondary
data has its drawback, as it lacks credibility of data collected, (Adams, H., Raeside, and White
2007). The another drawback linked with secondary data is to obtain the most relevant and recent
data from sources such as university and public libraries, government sources which have greater
extend of past record on various research areas. Directories and catalogues are another set of
sources for data collection.

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3.4 Proposed Research Strategy
The research strategy shows an important aspect of conducting research which reflects the entire
research process. This would facilitate the researcher in understanding the methods that would
use to gather data based on either primary or secondary sources. The research strategy to be
applied will further evaluate the fact the research is either processed on the basis of formulating
new hypotheses under inductive approach or to utilize the already formulated hypotheses. This
strategy would help to determine whether the required data is needed to be collected through
secondary data.
This research process is more of an explanatory type as it requires research for critical issues like
job satisfaction to be used during research process. Therefore it deems appropriate that mixed
research approach would be used for data collection and it is understood that it would require the
combination of quantitative and qualitative approach in the entire process. This research strategy
involves the collection of data from both primary and secondary sources to evaluate the variable
results. The source of secondary data involves data collected from books, articles, journals etc.
these sources relates to the past scenario of Sainsbury and they are linked with motivational
aspect and job satisfaction.
The core methodology that would be utilised in this research would be focused on secondary
data and that is the reason why secondary data is collected from different sources that books,
journals, websites etc. A case study approach is actually selected for the collection of data and
case studies of different retail organisations of United Kingdom will be selected in this regard.

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Chapter 4: Findings and analysis
As implied by the name this chapter is linked with the scenario of findings and analysis of the
research. A case study approach is followed in this chapter and that is the reason why three retail
organisations of United Kingdom and their managerial aspects are discussed in detail.
Tesco
Tesco is the leading private company in retail sector organization in UK. Operating with largest
market share, this company has employed more than 36,000 employees worldwide. Its total sale
comprises of 86% from UK ranging from retail outlets of small local Tesco Express sites to large
Tesco Extras and superstores. Tesco has its network spread over to 12 countries beside UK,
which includes China, Japan and Turkey and has been successful in opening number of new
stores in United States. This international exposure of opening new stores worldwide is the
constituent of Tesco’s strategy for diversification of business and its growth. With continuous
efforts Tesco has built an image as a market leader is UK supermarket sector but it
simultaneously aims to local needs (Humby, Terry, & Phillips, 2008). In Thailand, by adopting
the local culture the company gratitude its customer who are accustomed of shopping in wet
markets. Following this approach Tesco has adopted this manner of business in its Bangkok store
rather than providing them with pre-packaged goods as they did in UK stores.
With continuous growth in its business Tesco requires people across wide range of skilled
personnel for store-based and non-store based jobs:
• For stores Tesco requires checkout staff, stock handlers, supervisors and specialists such
as pharmacists and bakers
• For its distribution department Tesco requires personnel for stock managing and logistics

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• The head office presents them with infrastructure that enables Tesco to run the business
efficiently with combine efforts from human resources, legal services, property
management, marketing, and accounting and information technology.
A continuous effort by the management of employing right number of people at jobs according
to their talents is done through well-structured program of recruitment and selecting the best
applicants for both managerial and operational roles (Moses, 1997).
Tesco management has the historical record of utilizing the technology at its best. They were the
first to implement the epos system in its operation, giving them an edge over other the
competitors in retail industry particularly ones related to supermarket through superior IT
advancement in their business operation (Humby, Terry, & Phillips, 2008).
The key elements that build up a strong the Tesco Strategic Management are Tesco Managers
and Tesco Management Trainings. With the superior knowledge of business models Tesco
slowly filled the cracks of Wal-Mart equivalent. With the innovative idea of the management, its
loyalty card helps the team to understand the needs of each of its customers; something which
Wal-Mart failed to incorporate in its large system. The new opening of a range of formats to
mirror customer circumstances is another incentive over the chain of Wal-Mart stores. The
another edge that Tesco holds over Wal-Mart is the rapid, reflexive, replenishment supply chain
which serves all its formats, including home shopping. The walk-through supply chain is now
awe for many. With its continuous efforts Tesco now supply each of its customers according to
their needs, location and low costs (Humby, Terry, & Phillips, 2008). It may not be thought as
extravagate the fact that Tesco is now the Toyota of grocery business, by striving to provide its
customer the best with continuous improvement. Tesco didn’t attempted to keep its strategy a
secret; and is allowable for its competitors to follow their example.

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Another crack that has been exposed in a successful business model is, BMW, a known
technology-driven finest carmaker declared that it needed combine efforts with another motor
company to develop hybrid engines alone even though Honda has been successful doing it. And
after the vast development of third generation hybrid car production by Toyota, BMW joined
forces with Daimler-Benz and General Motors for hybrid cars after claiming for years that
diesels and hydrogen were the source for step ahead. Toyota strategic development of premium
hybrid cars is more demandable by consumers as compare to the precedent production and
stuffing car technology that is not preferable by many now.
In every industry the business models of the mass production and mass consumption era are
broken or had scraped. The 'hub and spoke' airlines which were depended on supplying traffic
through big hub airports are fraught in order to compete with 'point-to-point' airlines. Due to
outsourcing strategy of customer support many banks and telecoms firms are losing their
customer. The ‘low cost’ sourcing of goods from China have aroused different questions from
retailers and manufacturers, due to awareness created among the customers about competitive
strategy in clothing and footwear.
The Dell’s ability of ‘build to order’ has been undermined by the maturing computer technology
as the esteemed company is unable to compete with corresponding products that is available at
local computer store at the same day. These changes can be seen at every field of business, as
people serving rate at general hospitals for diagnosis and treatment or waiting by your car to get
it fix at a car dealers have reduced with the passage of time (Humby, Terry, & Phillips, 2008).
It is about time that changes in business models have to be amended by studying the previous
business failures. This is seen as many firms have started rethinking about their strategies that

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were previously implemented by not only emphasizing on lean management not only for
streamline processes but as an effective strategy for turning the tables towards competitors and
providing improved deals to consumers as well as its employees.
The process of rethinking business models is applied in an organizations by considering the
factors such as what products should be manufactured in the future at low cost and where the
manufacturing process should be located. On the other hand, lean thinkers begins by
understanding who their customers are, what are their needs relating to each products and
services and in what was will the customers served at its best.
With the combined combination of hardware, software and the knowledge relating to the process
of each documents, makes it into a computer (Aaker & Mcloughlin, 2010). And it involves
extensive time period like production, relating to obtaining, installing, upgrading and replacing
all the previous process which involves consumer’s time and patience.
By following the each production and consumption process, the management comes across those
links (through consumer report) that has been either broken or exasperating. Furthermore, the
process which has been outsourced results in gap from consumer contacts as there is no other
way to obtain feedback from consumer which would assist the management for redesigning the
management strategy.
The solution to lean management is done through the process of mapping the processes from
consumers through the underlying layers of distributors to production which goes back to raw
materials exposing to astounding opportunities of removing the excess cost factors from each
element of product, including consumer (Sparks & Fernie, 2004). This results in win-win-win
opportunities for all parties. Thus this lean management provides great convenience to the

Author Name 53
management and customers and provides better customer services which in result enhance the
quality of the product.
The process of critical success factor that relates to each product is the ability to initial its
process from consumers by understanding provisions of customers demand and resolving their
issues by providing them what, when and where they exactly wish from the product (Humby,
Terry, & Phillips, 2008). The underlying facts does not relates to who manufacture the specific
product but with who exactly responds to ongoing business consumer demands.
US have provided the greatest platform of industrious that ranges from supermarkets and
fluorescent lighting to hamburgers and sticky tapes. The success of transatlantic flow will never
stop but it would prove difficulty it automatically translating to success. The few renditions
would be encouraging than baking soda toothpaste (Sparks & Fernie, 2004). After the week long
extensive advertising of previously unknown brand in Britain, sales in Tesco of the Arm &
Hammer Dental Care brand has quadrupled. It was successful in achieving 5% share in a highly
crammed competitive market, which results in a bit panic in competitors that they felt need to
add soda brands back to its range (Sparks & Fernie, 2004).
Sainsbury
J Sainsbury Plc is a leading food retail business in UK and US market with its foot in financial
services and property business. The Sainsbury group comprises of Sainsbury’s Supermarket and
Sainsbury’s Bank in UK and by name of Shaw’s Supermarkets in US. The network of Sainsbury
Supermarket was established in 1869 by John James and Mary Ann Sainsbury and in now
Britain’s pioneer food retailing chain (Zentes, Morschett, & Klein, 2007). Sainsbury
Supermarket has provided work to over 145,000 people, including Savacentre. Of these

Author Name 54
personnel, 60% employees work part-time and 40% works as full-time. Of total 60% employees
in Sainsbury workforce are women. The Sainsbury well-established supermarket offers over
23,000 products out of which 40% products relates to Sainsbury’s own brand. Besides offering a
range of quality food and grocery products, Sainsbury offers baked bread facility, delicatessen,
meat and fish counters, pharmacies, coffee shops, restaurants and petrol stations on its premises
(Reynolds & Cuthberston, 2003). Sainsbury has a record of serving over 11 million customers a
week and as at June 2002 had 463 stores throughout UK.
In an organization, the team efforts and its outstanding performance is the organization’s
performance. Hence, it is dynamic outcome enhances the performances from everyone. Each
individual in the group is more complex than other in the component.
The responsibility of the manager is to motivate each individual and the team as a whole to
improve the organizational performance. As the source to team motivation stems through
personal enthusiasm of the manager, how the work is allocated and controlled, a clear
visualization of the goal and plan to achieve it. Each organization manager sets its personal
behavior as an example in the organizational for creating a climate of progress and chance to
accept the change for betterment. Motivation factor for each individual is achieved through
personal empathy and what it is called the ‘unwritten contract’ from individual and organization
manager as a two way communication. The important element for the motivation is the design of
individual’s allotted work with specified challenges and different types of works that directs to
various innovative products due to specialization (Dobson, Starkey, & Richards, 2004). As to
obtain personal and career development an agreed set of objectives is required that can be done
through challenging work, professional standards, feedback and coaching.

Author Name 55
This paper discusses about performance management and its evaluation which includes
supervision of top management of Sainsbury for its employees and for the organization supplier
as a whole for its wide range of goods and products. The long established chain of Sainsbury
supermarkets of J Sainsbury Plc since its establishment in 1869 strives to fulfill company’s
mission of providing first class choices of food products for its consumer through value for
money, excellent services and quality that is expected by every customers. The company has a
total of 145,000 people in its 535 stores, serving over 11 million customers each week (Dobson,
Starkey, & Richards, 2004). The most important theory that is needed to understand are the ones
surrounding performance management.

Author Name 56
Performance Management Systems
Just like most organization, Sainsbury has its formal performance management system, which
varies according to great purpose, depth, style and degree of bureaucracy. This performance
management varies according to the benefits it brings to the organization as well as the level of
attraction it gains from its workforce. Question as to what are the purpose of my organization’s
management system would be answered as assistance it provides to the management for the
determination of pay rise, or promotional benefits to be entitled to one. In these circumstances
the key trait to efficient performance management will be fairness. To obtain the knowledge as
how the pay system work in your organization so that staff could be trained accordingly. As no
pay system is totally objective it is essential to provide thorough understanding about the
subjective element (Dobson, Starkey, & Richards, 2004). An effective performance measure
helps to measure against the objectives. This will help the team to understand the reasoning why
other members got the pay raise.
As according to another scenario the answer could be the development of staff. Performance
management system is another scenario of a person continuous efforts to develop according to
ones skill for the combine workforce in different sorts of situation and to make its contribution
accordingly to the period of software development (Reynolds & Cuthberston, 2003). For the
performance management fairness is not considered as an element because the performance
evaluation focuses on one person at a time. The other answer is the combination of above both
characteristics.
The basic essential of performance management system is the development of staff and provide
assistance about pay decision to according to ones performance. Even if the performance

Author Name 57
management relates to the pay or promotion it can be understood as a useful tool for
development of staff. In an organization, staff believes that a performance management is the
reason which for their pay level, whether it is linked with strategic factors (Zentes, Morschett, &
Klein, 2007).
The difficulty that comes across during this process is when a manager inquires the employees
what area of his work would he think is needed an improvement to increase its output; the
employee would if believes that this discussion relates to his performance development he would
readily discuss its issues. However, if the employee assumes that the motive behind this
discussion is to evaluate its pay review he might attempt to hide his weaknesses. Hence, to
overcome this problem it might be appropriate to link pay rewards with the proven development
of one (Aaker & Mcloughlin, 2010). Because it does seems to be logical to give a pay raise to the
employee if the performance has not improved compared to the previous year result. So in the
future when the manager conduct the performance evaluation meeting, the employee would be
more eager to discuss its weakness in order to resolve it through manager’s help and to avail the
opportunity for pay raise at next evaluation period. This provides the clear objective about the
employee team development.
Preparation for a Performance Management System
Hypothetically the most appropriate way to implement a system is to use the system for day-to-
day practice of development management, by regular reviewing the objective that has been
agreed by team members at after appropriate duration, and to mentor the employees accordingly
(Dobson, Starkey, & Richards, 2004). The employee might try it useful to record its continuing
relations that will assist for its performance evaluation. However, the employer would still need

Author Name 58
to evaluate the performance of prior period and for this the team member is need to be equipped.
A planned meeting will allow the employee and manager to be prepared for the meeting in
advance. And by reminding the team member prior the period about the motive behind the
evaluation and the tools that will assist them to prepare for the meeting will provide better results
(Dobson, Starkey, & Richards, 2004). If it happens to be the first evaluation meeting the
employer would ease up the employee by discussing the weaknesses and provide remedy to the
problems.
During An Evaluation Meeting
The past performance of an employee is reviewed to understand the future prospect by the
manager. With a clear head, the weak points about the employee are raised in order to improve
the weak points, progress opportunities or ceremonial notes. The approach is not to elevate the
weak points of the employee but to give chance to the personnel to draw weak points out to
perform personal assessment (Dobson, Starkey, & Richards, 2004).
This is performed by asking unbiased question from the employee and not burdening them
regarding the questions about their own opinion about its performance on which they consider
improvement is needed (Sparks & Fernie, 2004). As it is seen that most people are modest
regarding their own performance, this would result in praises from the employer to the team
members for the assistance they provide to its manager about the weak areas they might have
overlooked during their evaluation. Many employees would be more eager to point out the areas
they think is needed for improvement as compare to the understanding of the employer they
might have considered important. This process facilitates in greater deal of improvement that is
seen as it avoids any criticism by the colleagues regarding their assessment. The improvement

Author Name 59
that is needed in a team member will be identified by others if the person itself fails to
understand, as it is persuasive to turn unbiased drawings into a form of obligatory affirmation.
The employer, hence, could make such mistake that would result in demoralize its credibility as
a legitimate listener and as a good manager (Reynolds & Cuthberston, 2003). This process
involves two-way communication during the meeting. The team member may itself brings up a
few weakness in its performance which when compared to the manager view point are more
important, the manager might abandon its point by first attending to the team member. But in the
due course the employer might itself never try to abandon his initial point because of the
awkwardness he feels in discussing them. For example, during discussion the employer might
say that it I’ve come across the areas that I think it is necessary for improvement. According to
the view point of the employer these points would be significantly important but on the other
hand the employee might not regard this as important or might not have genuinely considered
this point. The second problem associated with this drawing out process is the fact that employer
might overdo it. Mostly the team members are eager to know what is being thought of their
performance in the eyes of employer. In this case, the manager would recall the facts told by
employee even if it is simply an agreement. Listening is the most important essential in this
process. But if the employer realizes that he is the one doing most of the talking and no
contribution are obtained from the team member than it may be because the discussion is
conducted wrongly (Reynolds & Cuthberston, 2003). The second step is the future point of
reference, after drawing out the important areas of weakness the manager and employee should
plan the future objectives that would measure the outcome as improvement.

Author Name 60
ASDA
Asda is a British chain of supermarkets which deals with food, clothing, toys and general
merchandise. It also deals in mobile telephone network, Asda Mobile. Its head office known as
Asda House is in Leeds, West Yorkshire. Asda is a subsidiary of the well-established American
retail chain Wal-Mart, the world largest retailer in 1999 and is the second largest chain of stores
in UK, after Tesco by overhauling Sainsbury’s in 2003. Asda has been successful in attracting
17% of grocery shopper’s population by its ‘special offer’ promotional campaign (Fisher &
Raman, 2010).
Asda’s promotional campaign has been based upon the pricing strategy, running under the slogan
of Britain’s Lowest Priced Supermarkets, 13 years running. Being a wholly owned division of
Wal-Mart, Asda enjoys the benefit of not presenting quarterly or half-yearly earning, instead
they submits its books of account, each year in the month of October.
The top management structure of Asda comprise of Wal-Mart, the world’s biggest retailer, who
brought the company in 1999 (Fisher & Raman, 2010). The management strategy of Asda
includes high profile media marketing campaign and competitive pricing.
The growth and changes that was seen for many years in finance and industry was taken as a
golden age for accountants, particularly for people that have people management skills. This
gave chance to the rapid growth and commercialization of public sector during 19th
century
(Fisher & Raman, 2010). Accountants who have been displaced by industry during recession
found jobs in public sectors from the employers eager for commercial exposure. The other
incentives such as PFI would have resisted. This resulted in the ratio of unemployment steadily
decreasing that lead to the period of ‘skill shortage’ that opened doors to immigrants particularly,
in the field of Teaching and Nursing. The arrival of anti-age legislation in 2006 caused tapping

Author Name 61
back ‘grey hairs’ of progressive employers by the general and specific suggestions for the
Finance Directors.
New anti-discrimination legislation
The EU Employment Directive on Equal Treatment introduced by UK Government requires the
Member States to introduce legislation which prohibits direct and indirect discrimination at work
on the basis of age, sexual orientation, religion and belief and disability. The conclusive passage
bars age discrimination in employment and professional training in the UK.
This does not outline the potential consequence that results by ignoring the law but emphasis
more on the potential benefits that are availed by the adoption of proactive approach in finance
or to the organization at large (Dobson, Starkey, & Richards, 2004). Mostly in the progressive
sector, leading and judicious organization are taking initiatives for getting ahead in the
competitive environment and apprehending the unexploited prospective of the personnel who
tends to work with new innovation as compare to parents, and facing the intimidating prospects
of retirement age to be raised to 70 years.
Skills Shortages in Business and Finance
To obtain the answer of the question ‘what are the biggest challenges you face?’ for the 3rd
edition a survey was conducted in 200 FDs from all sectors and many FTSE companies, the
result obtain was ‘getting and keeping good people.’ The following are the factors that have led
to this response?
In the recent time, after the development of corporate governance many sectors and industries
are facing skill shortages in many organizational roles, especially for specialists such as IT and

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