Table of Contents
Background of the study
At these days, with the growing competition in the business environment, more and more companies are focusing on quality whereasdecreasingtheir operational costs. In the meantime, a strong economy has turned into a tough job market, so when SMEs get more from their employees, their employees look for more from them. In addition,program regarding Employee compensation and recognition are a way for motivating employees to change the work habits and core behaviors for the benefit of small and medium businesses.In order to enhance the performance of the employees of Debtfree Management Services Ltd., the managementof the company should assess the rewardsystem and its impact on the performance of the employees.
Reward VS. Acknowledge
Both of these terms are utilised interchangeably every so often, but recognition system along with reward systems must be considered distinctly. Compensations system of the Employee compensation is regarded as a program that establishes by an organization to perform and motivate employees at the group or individual level. These are generally considered to be separate from the salary but these can be inherently financial or otherwise they can cost the company. As mentioned earlier, employee awareness programs are every so often combined with compensation programs buta completely different purpose is there of both of these programs. In addition, both of these programs are likely to offer psychological benefits as well as the financial benefits. Even if a number of same elements are there to design and maintain the recognition along with the reward system one should keep this difference in mind, especially for small businesses that are interested in motivating low-cost employees (Kanwal and Syed, 2017).
Reward is divided into merit pay and performance appraisal
When designing a reward program, the salary or qualifying salary system of the small trader should be separated from the reward system. Periodic payments, such as financial rewards, especially bonuses and profit sharing, are tied to the credit of the employee or group and are considered "risk aversion" away from payment. By doing this, managers of the companycan avoid employee perceptions and certify that the award emphasizes excellence or attainment rather than basic competence.
Salary is not part of the employee compensation system. Typically, they segregate workers by an additional percentage to effectively increase inflation. These are not particularly exciting because the difference between a good employee and the average person is usually relatively small. In addition, they increase the company's fixed costs as opposed to a variable salary increase such as a bonus, for which they need to earn a bonus each year. Finally, teamwork is an important component of successful employee work in many small businesses. It does not usually review the perfection of an individual's work skills or the perfection of a group or business (Ngwa,et al. 2019).
Reward program design
Below are the keys to developing a rewards program.
Identify the goals of the organization or group that supports the corporate rewards program
Recognition of the desired employee performance or behavior that enhances the company’s goals
Or, determine the basic measure of performance or behavior based on past success of the individual or group
Appropriate determination of reward (Ntutu, 2018).
Make theemployees aware about the reward program.
To enjoy the benefits of increasing productivity, entrepreneurs designing reward programs must take steps or stages that reach and contribute to the goals of the organization or group. While this may seem trivial, companies often make mistakes in rewarding actions and results when they can’t actually advance their business goals or actually interfere with them. When teamwork is the goal of a business, the bonus system rewards individuals who increase productivity at their own or others' expense (Omokorede, 2017). Compensation is the real cost in terms of time or money, so small businesses need to make sure that their performance is actually improving before they can be compensated.
Often one need to measure something other than financial income: reduction errors, customer satisfaction, fast delivery, etc. When developing areward program, the end result of the entrepreneurial initiative and the similarity of the award should be considered. Full attendance is subject to individual rewards instead of 10,000 savings through negotiation of the contract in question. It is also important to consider individual and group success fees to facilitate both individual initiatives and group collaboration and performance (Berhan, 2017).
By the end, the specifications of each employee for a successful rewards program must be clearly stated. Motivation depends on the ability to understand what a person needs. Once this is done, use the program's regular meetings or promotional notes to increase core communication. Communication should be easy, but employees should not change the system frequently.
The problems that are associated with the concerned work is that: Firstly it is quite evident that if the rewards are not given to the employees of the organization then in that case there is a huge chance that they will feel left out and that in turn is going to make a toll on the productivity and the development of the concerned company not only in the present scenario but also in the future scenario as well, Secondly there are certain facts that are available in the several sources are of such nature that they will create confusion in the minds of the reader and that in turn is hampering the credibility of the entire research work and in turn the research work will become completely insignificant in nature, Thirdly it is also an evident fact to state that if rewards are not given there is a chance that there will be certain level of non-cooperation from the side of the employees.
In addition to this it is also an evident fact to state that if the rewards are not given to the employees then in that case the management system of the concerned company or the organization is going to get tumble and that in turn is going to badly effect the overall development and the growth of the concerned company or the organization. At times it might also leads to the surprise protest or any kind of demonstration and that in turn becomes a huge roadblock in the path of the company’s overall growth and the development and that in turn negatively impacts the sustainability of the concerned organization in the long run, it is also an evident fact to state that if the rewards are not given to the employees of the concerned organization then in that case they might not reveal their full level of competence and that in turn is negatively hitting the growth of the concerned organization at large extent.
In turn it is also an evident fact to state that if the rewards are not given then in that case the innovation of the organization is going to be badly affected and that in turn will make the company quite vulnerable and that in turn might affect the overall sustainability of the concerned company or the organization.
Aim and objectives
Importance of the rewards for enhancing the motivation level of the employees
Level up to which the rewards is going to impact the growth of the company
Q1) what is the importance of the rewards in motivating the employees of the concerned company?
Q2) Up to what extent the rewards is going to make an impact on the overall growth of the concerned company?
Significance of the study
It is quite an evident fact to state that if the reward is given to the employees then in that case; firstly they will feel motivated and that in turn is going to contribute a lot for the overall progress and the development of the concerned company and they will also work with their full scale competence.
Rewards, job satisfaction, motivation:
As stated by Abusharbeh and Nazzal (2018) Both the public sector and private banks in Saudi Arabia are using approximate amounts of rewards for job satisfaction to study the value of rewards and the impact of incentives. Through regression analysis, it is related to feelings of reward, motivation, and job satisfaction. The results show that (a) rewards have a positive effect on job satisfaction, (b) the purpose is positively related to job satisfaction, and (c) the purpose has a positive and significant effect on job satisfaction. Research has shown that employees in the private and public sectors of various banks are appropriately rewarded, motivated and have content with the organization. The study concludes that employees in the banking sector place more emphasis on financial or monetary compensation.
Wickramasingheand Sajeevani(2018) have investigated the impact of the compensation system on motivation of employees in commercial banks in Sri Lanka. The study found a positive relationship between external and personal rewards to motivate employees. Second, higher performance, cooperation, willingness to take responsibility, hard work, and continued growth in employment has been considered to determine the factors that affect employee performance. Surveys indicate bankers' dissatisfaction with financial rewards, responsibilities, training and promotions.
Hong,et al. (2013) Investigate the effects of employee compensation and employee motivation on employee job satisfaction between public and private water facilities in Malaysia. The authors covered three topics under the award, such as pay, autonomy, and peer relationships. Employees were motivated by external and internal needs, and job satisfaction was measured at nine levels: salary promotion, supervision, benefits, contingency remuneration, working methods, coworkers, nature of work and means of communication.
Studies have shown that employee compensation is positively linked to motivation. Both employee compensation and employee motivation positively affect an employee’s job satisfaction. The survey was published along with some interesting discoveries, including a significant improvement in the compensation, motivation and work satisfaction of employees of water utility companies. Motivation to work has more impact than compensation for public and private water facilities.
Hameedet al. (2014), Examine the relationship between compensation and employee motivation in the banking sector of Pakistan. The study found a positive relationship between rewards and inspiration. The author includes age, gender, educational qualifications, experience and salary, attractive job, job security, promotion, appreciation, promotion opportunities, loyalty to employees, age and gender, sympathetic people. Hameedet al. (2014), attempts to identify aggregates of demographic factors such as qualifications, experience and income. Studies show that gender is associated with income and employment security experiences, including pay, work stress and appreciation, bonuses and incentives. Also, the results show that the key factors that motivate promotion workers compared to other variables are benefits such as promotion, job security, work situation and gratitude.
In order to accomplish any systematic and logical research, Research methodology is the important section as it helps the researcher to discover strategies, tools, method and problems related to research and also it guides the researcher to take care of the research issue.
The outline comprises methods as well as approaches selected by a researcher in order to combine several components related to research in a sensible coherent manner, is known as Research Design. Moreover, the understandings about “how” to conduct the research by using a specific research methodology is delivered by research design. Three sorts of research design are there, descriptive research design, Explanatory or causal research along with exploratory research design.
The justification for utilizing descriptive research design
With regard to the present research work that is of Assessing the reward system and its impact on employee motivation at Debtfree Management Services Ltd. the Research Design that is used is the Descriptive Base Research design and the reason behind it that it helps in understanding the characteristics of the group variable and the concerned phenomenon that is happening in the concerned study. In fact it plays a pivotal role for the understanding of the various factors in the concerned Research work(Mkansi, and Acheampong 2012).
The research philosophy assumes a genuine job in the talk on the research point in detail. Moreover, research philosophy is a critical component that manages the nature, source, and advancement of the collected data. There are four kinds of research philosophy applied in a wide scope of studies, for example, realism, interpretivism, along with positivism.
The justification for applying the Positivism Philosophy
In order to lead the present research onassessing the reward system and its impact on employee motivation at Debtfree Management Services Ltd., positivism philosophy has been used by the researcher. The utilization of this methodology has helped to achieve potential data from the past investigation so as to create successful measures to achieve the general goal of the examination.Besides, it has helped the researcherto comprehend the causal connection among speculations and discernible cases of the present investigation.
Research Approach is in the core of research methodology. This is a fundamental segment of the research thesis that urges the researcher to achieve essential information just as auxiliary information to the varying structure. The research approach is of two sorts for example inductive research approach, and deductive research approach(Mackey and Gass, 2015).
The justification for utilizing the deductive approach
In setting to the present investigation, Deductive Research Approach will be applied by the analyst so as to separate the created essential information. Through utilizing the deductive
approach, the specialist can have the option to set up accommodating information so as to construct the gainful research exposition (Mackey and Gass, 2015).
Primary data collection Method
In the case of the Primary data collection method the sources are by means of: Firstly the interview of the concerned prospect then comes to the aspect of the filed survey that is generally conducted. In addition to this it also involves the in depth observation of the filed based observation and that is primarily done to accomplish the certain goals and the aim.
Secondary Data collection Method
Secondary information refers to the type of data distributed in the form of paper, books, magazines, online gateways, personal diaries, etc. Also, plenty of data is available at sources as a field of commercial research, regardless of the local concept of the study. Additionally, the use of a valid format for the selection of secondary data to be linked to the study involves an equally significant task of improving the quality and validity of the study (Dougherty, 2019).
The justification for utilizingthe Method of primary Data Collection
The research about assessing the reward system and its impact on employee motivation at Debtfree Management Services Ltd.is based in context to the quantitative method as the data gathered in this regard is over investigation and interviews. The researcher will consider collection of the primary data from various employees of the company.
Due to the huge population, it becomes quite impossible for the researcher toinvestigate all the people. This is why sampling method is useful for the researcher, by the help of this method researcher will beable to choose the targetpopulationto conduct the research successfully.
Justification for using Non-probability sampling
The researcher in this regard will use the non-probability sampling technique for collecting the data from severalemployees of theorganisation.
Kanwal, K. and Syed, M., 2017.Impact of reward system on employee performance in banking sector. RADS Journal of Social Sciencess& Business Management, 4(2), pp.82-103.
Ngwa, W.T., Adeleke, B.S., Agbaeze, E.K., Ghasi, N.C. and Imhanrenialena, B.O., 2019.Effect of Reward System on Employee Performance among Selected Manufacturing Firms in the Litoral Region of Cameroon. Academy of Strategic Management Journal.
Berhan, E., 2017. The Effect Of Reward System On Perceived Employee Performance: The Case Study Of National Bank Of Ethiopia (Doctoral dissertation, Addis Ababa University).
Omokorede, A.O., 2017. Reward system and employee performance of selected manufacturing companies in Lagos State, Nigeria. Unpublished MA Dissertation), Babcock University, Ilishan-Remo.
Ntutu, L.K., 2018. Effects of reward system on employee performance: A case study of public primary schools in the Narok North and Narok East districts of Narok County. International Academic Journal of Human Resource and Business Administration, 3(1), pp.266-281.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design. Routledge.
Mkansi, M. and Acheampong, E.A., 2012. Research philosophy debates and classifications: students’ dilemma. Electronic Journal of Business Research Methods, 10(2), pp.132-140.
Abusharbeh, M.T. and Nazzal, H.H., 2018. The Impact of Motivations on Employees Performance: Case Study from Palestinian Commercial Banks. International Business Research, 11(4), pp.142-153.
Wickramasinghe, M.D.N. and Sajeevani, T.L., 2018. The impact of rewards on retention of operational level employees in three apparel sector companies in export processing zone in Biyagama, Sri Lanka. Human Resource Management Journal, 6(2).
Hong, L.C., Abd Hamid, N.I.N. and Salleh, N.M., 2013.A study on the factors affecting job satisfaction amongst employees of a factory in Seremban, Malaysia. Business Management Dynamics, 3(1), p.26.
Hameed, A., Ramzan, M. and Zubair, H.M.K., 2014.Impact of compensation on employee performance (empirical evidence from banking sector of Pakistan). International Journal of Business and Social Science, 5(2).
Dougherty, M.R., Slevc, L.R. and Grand, J.A., 2019. Making research evaluation more transparent: Aligning research philosophy, institutional values, and reporting. Perspectives on Psychological Science, 14(3), pp.361-375.
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