Employee Motivation at Intercontinental Hotels

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This assignment delves into the crucial aspects of employee motivation within the context of Intercontinental Hotel of Groups. It presents a structured questionnaire to gauge employee opinions on various motivational and retention factors such as job satisfaction, career development opportunities, organizational values alignment, and turnover intentions. Furthermore, it explores the effectiveness of existing reward systems and seeks suggestions for improvement to enhance employee motivation and productivity.

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Effectiveness of reward system in enhancing
employee performance - A study on
Intercontinental Hotel of Groups - UK
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ACKNOWLEDGEMENT
Completion of entire study is complicated task when assistance is not provided. However,
for completing the current dissertation I was provided proper guideline from my mentor, hence I
would like to render my sincere thanks to him for supporting me during each and every phase of
dissertation. Furthermore, contribution of friends and colleagues was also important so I impart
my thanks for them as well.
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ABSTRACT
Performance of workforce is based on several factors such as motivation, retention and
reward policies. It enables corporation to apply appropriate strategies to focus upon issues which
are being faced by employees and accordingly take suitable course of action. The current
dissertation is based on IHT hotel (Intercontinental hotel group) which offer varied range of
services to end users by covering food, accommodation and entertainment. In this regard,
company ensure to include skilled and competent workforce for better service quality. However,
growing competition and consistent phase of peak load create issue related to employee turnover
and poor services quality. For this purpose, research has been carried out to understand the
effectiveness of reward system on performance of employees of selected hotel.
The research is based on qualitative type of investigation under which researcher uses
both primary and secondary information. The primary information is collected by employees of
hotel on the basis of simple random sampling. It enables researcher to reach at the aim of the
investigation and produce valid outcome so as to accomplish aim of the study effectively.
The analysis chapter bring forth outcome that both monetary and non-monetary reward
schemes play important role for bringing improvement in performance of workforce,. It enables
them to cope up with changing scenario and increases their level of motivation. At the same
time, implementation of effective reward policies facilitate to retain workforce for longer time
span and support them to bring perfection in service quality.
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TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................6
1.1 Background............................................................................................................................6
1.2 Rationale of the study............................................................................................................7
1.3 Research aim and objectives..................................................................................................7
1.4 Research questions.................................................................................................................8
1.5 Significance of study.............................................................................................................8
1.6 Structure of the study ............................................................................................................9
CHAPTER 2: LITERATURE REVIEW.......................................................................................11
2.1 Introduction..........................................................................................................................11
2.2 The significance of reward system .....................................................................................11
2.3 Link between employee performance and reward system ..................................................14
2.4 Different types of reward system used in an organization...................................................17
2.5 Conceptual framework.........................................................................................................21
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................22
3.1 Introduction..........................................................................................................................22
3.2 Type of investigation...........................................................................................................22
3.3 Research design...................................................................................................................23
3.4 Research philosophy............................................................................................................23
3.5 Research Approach..............................................................................................................24
3.6 Data collection.....................................................................................................................24
3.7 Population, context and location..........................................................................................25
3.8 Sampling..............................................................................................................................25
3.9 Sampling Technique............................................................................................................26
3.10 Data analysis......................................................................................................................27
3.11 Validity and Reliability......................................................................................................27
3.12 Ethical Consideration.........................................................................................................28
3.13 Research limitation............................................................................................................29
CHAPTER 4: DATA ANALYSIS................................................................................................30
4.1 Introduction .........................................................................................................................30
4.2 Data Analysis.......................................................................................................................30
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CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................50
Conclusion.................................................................................................................................50
Recommendation.......................................................................................................................54
REFERENCES..............................................................................................................................55
APPENDIX:QUESTIONNAIRE..................................................................................................58
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CHAPTER 1: INTRODUCTION
1.1 Background
Reward system system plays important role in increase attention of employees towards
their work because their expectations are met by offering them reward in accordance with their
performance. Basically reward refers to give something in return which can be either monetary
or non-monetary. Management of companies find the need of retaining employees which can be
possible only with the help of appropriate reward and motivation scheme. For this purpose,
appropriate strategies are followed in order to increase motivation level of personnel. However,
management uses effective aspects such as employee participation and others so as to increase
attention of employees towards accomplishment of long as well as short term objectives.
However, reward system is linked to performance of employees as when a person get
reward for better performance then automatically positive changes can be observed in his or her
performance. For this purpose effective reward system, are implemented which make it possible
to retain personnel and increase their efficiency (Armstrong, Brown and Reilly, 2011).
Moreover, hotel sector must shed light upon employees performance for retaining buyers as
satisfied as well as motivated employees tend to ensure well being and competitive edge of the
business in the marketplace. It proves to be effective for accomplishing long as well as short
term objectives of hotels.
Generally, performance of employees is linked with different factors such as training and
development, flex time, job rotation as well as enrichment of job. These factors tend to create
sense of achievement among personnel and enable them to render good quality of services to end
users. At this juncture, extrinsic rewards such as fringe benefits, promotions and money are used
for enhancing motivation level of employees (Bradshaw, Mitchell and Leaf, 2010). It aids to
deliver good quality of services to associated buyers and retain them for longer time span. Owing
to this, company requires presence of highly skilled employees who contribute towards growth
and development of business. It shows that both intrinsic and extrinsic rewards are important
behind good performance of employees. This reflects that motivated workforce is the key to
success of long run growht of business in the marketplace.
Present study is based on InterContinental Hotels Group is British multinational hotels
company which provides variety of services to large number of buyers. It covers different brands
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such as Holiday Inn, Holiday Inn Express and Candlewood Suites. It aids to cater need of buyers
across the world which in turn they can effectively render good quality of services. This
corporation uses effective practice for employee motivation. This aspect make it possible to cater
need of buyers and deliver good quality of services to them. Furthermore, the main of business to
retain consumers by catering their effectively and adopting reward policy accordingly (Chen,
Williamson and Zhou, 2012).
1.2 Rationale of the study
Reward system is considered as the most important aspect behind retention and
motivation of employees. However, hotel sector is suffering from higher employee turnover
because of busy schedule and peak load during specific seasons. Owing to this, workforce feel
demotivated and they do not willing to contribute their best towards success of the firm. At the
same tine, poor performance of employees remain the biggest issue which tend to affect
performance of entire business to a great extent. In-spite of offering training and development
personnel might not work appropriately for achieving set objectives. Here, it becomes important
for corporation to cater their need by offering them reward.
However, employees are provided motivation with the help of different reward strategies
so as to increase their attention towards work. Still, business face issue related to low moral of
workforce and lack of motivation among them (Pratheepkanth, 2011). Such kind of situation
affect business performance to a great extent as cost of production is increased. In this regard,
current study is being conducted to assess the effectiveness of reward system on performance of
employees. It would be effective for management of business to understand the importance of
reward system and contribution towards achieving long as well as short term objectives of
company. Furthermore, effectiveness will be assessed in term of well being of hotel and rate of
return as well as overall productivity.
1.3 Research aim and objectives
Research aim and objectives of dissertation will be explained as follows which consists
of detail information related to requirement of scholar.
Aim
To determine the effectiveness of reward system in enhancing employee performance - A
study on Intercontinental Hotel of Groups – UK
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Objectives
To identify the significance of reward system in organization
To determine link between employee performance and reward system
To recommended key strategies through which Intercontinental Hotel of Group can enhance
performance of all its employees
Under aforementioned research objectives, first of all researcher would identify
significance of reward system. It tends to develop deep understand among scholar related to
reward system. Furthermore, second objectives will shed light upon link between performance of
employees and reward system. In addition to this, aim of the study will be covered under two
specific objectives and accordingly recommendations will be provided in third objective. It
assists scholar to accomplish research aim and objectives in an effectual manner.
1.4 Research questions
Research questions of the dissertation are prepared in accordance with research
objectives which assists scholars to apply tools and procedures in order to collect large amount
of information. These are stated as follows-
What is the significance of reward system in organization?
What is the link between employee performance and reward system?
What are different key strategies through which Intercontinental Hotel of Group can
enhance performance of all its employees?
1.5 Significance of study
Reward system plays important role for increasing motivation of personnel and
delivering god quality of services to them. It enables management of corporation to retain
personnel and increase their attention towards work as well as objectives of the business. The
study under investigation tend to focus upon importance of reward system and its direct link
between employee performance. It proves to be effective for creating goodwill of business as
buyers will be retained for longer time span (Hsieh and Chen, 2011). Furthermore, with the help
of current investigation, it becomes easy for different parties such as those who are connected
with field of literature review and management of hotel sector as well as entire hospitality field
get benefit out of the same.
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This is because study under investigation shed light upon providing suggestions
regarding key strategies for enhancing business performance. This assists people engaged with
thesis to gather large amount of secondary information. In addition to this, management of
hospitality sector will come to know about effectiveness of reward system in order to improve
performance of workforce and determine long success of corporation in the marketplace (Nakata
and Im, 2010). Apart from this, better reward system tends to resolve different issues related to
poor performance of worker as they get something in tern addition to salary or wages. In this
manner, motivation as well as satisfaction level of personnel can be enhanced for rendering
better quality of services.
1.6 Structure of the study
Structure of study plays important role as it assist readers to get detail related to topic to
be covered. The current study on effectiveness of reward system on performance of employees,
following structure has been followed- Chapter 1: Introduction-This is the first chapter of dissertation which provides brief
overview related to research aim and objectives as well as rationale of the study.
Furthermore, background is provided for ease of readers so they can effectively
understand the issue under investigation. Chapter 2: Literature review-It is the second chapter of dissertation which provide detail
information related to previous studies on the same topic or field. Here, researcher refer
secondary sources like journals, books and online article which tend to clarify all
concepts. It is completed on the basis of research objectives so as to collect enough
secondary information. Chapter 3: Research methodology-It is the third chapter of dissertation which consists of
different tools and procedures such as research design, philosophy and methods of data
collection. Here, research give detail description of all methods along with justification of
selected one. This aspect helps in collecting large amount of information through which
research and objectives can be accomplished. Chapter 4: Data analysis-It is considered as another most important chapter under which
research analyze all collected information in the light of research aim and objectives. This
would be effective for scholar to reach at the aim of the investigation and procedure valid
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outcome. Furthermore, thematic analysis will be used for this chapter whereby researcher
can present the findings effectively.
Chapter 5: Conclusion and recommendations-It is the last chapter of dissertation under
which conclusion is drawn accordance with analyzed data. However, researcher keep into
mind objectives so as to present the outcome effectively. In addition to this, last objective
of study is also covered in the same chapter wherein research provide appropriate
suggestions fro improving performance of employees working in Intercontinental Hotel
of Group.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Literature review is the most important chapter of dissertation which include information
from different sources like journals, books and online articles. It aids to develop deep
understanding related to concepts and other related aspects of study under investigation. For the
current investigation on effectiveness of reward system in enhancing employee performance.
This would be effective for researcher to reach at valid outcome by collecting large amount of
information and drawing valid outcome. In addition to this, themes are prepared in accordance
with research objectives so that collected information can be presented effectively. However, it is
considered as very important chapter of dissertation as it is linked with the researcher and studies
conducted earlier by researchers. This section is important because it helps in getting insight into
the topic under investigation. The present literature review includes elements such as
significance of reward system, different types of reward system used in an organization and link
between employee performance and reward system.
2.2 The significance of reward system
Reward system refers to strategy of motivating and supporting employees at workplace to
perform better by offering them something in return. Generally, that return part consists of
different kind of rewards which can be monetary or non-monetary. Afiouni (2013) explained that
something paid after payment of basic wage and benefits are considered as reward. This is
because employees put extra efforts for their betterment. In this regard, it is important
corporations to offer them suitable reward in accordance with their performance. It proves to be
effective for long run success and growth of business. At this juncture, business ensure its own
well being by catering requirement of employees. This is because number of advantages are
associated with reward policies which determine higher level of satisfaction among buyers.
According to Armstron and Murlis (2010) reward system consists of several favourable
aspects for business such as retention of employees and attraction of new personnel as well as
creation of goodwill. It shows that reward does not only help to retain buyers but also attract
potential candidates who contribute towards success of the business. It shows that healthy work
environment is maintained in a firm where workforce are provided something in return in
accordance with their performance and effort put to bring perfection in their work. Aguinis, Joo
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and Gottfredson (2013) argued that extra payment and additional benefits are offered to
employees in order to mold their behaviour in a positive manner. Such kind of approaches help
them to becomes responsible for accomplishing long as well as short term objectives. Owing to
this, reward policies are implemented for betterment of workforce. For instance, a sales team is
motivated for achieving the target as they are paid incentive for their extra efforts. This kind of
scenario enable them to support businesses to expand and raise their money.
Employees take initiatives when they think that their performance is valued and they are
being paid something in return for the same. It facilitates to meet their expectations and enable
them to deliver good quality of services to existing buyers. However, they also get motivation to
attract new customers by focusing upon service quality and retention strategies. In this manner,
businesses create their competitive edge as they get competent and skilled personnel who
contribute towards success and growth of the business.
As per the view of. Cummins (2011) Reward system has started to play very important
role in growth and success of a business enterprise. In the modern era, employees are considered
as the biggest and most important asset of companies. It can be expressed that effective and
efficient workforce helps firm to gain competitive advantage over other market players. Along
with this, employees also play very important role in carrying out smooth flow of operations and
activities. However, Armstrong and Taylor, (2014) has argued that management of employees
and keeping them motivated is not an easy task and organizations are required to take care of
wide range of factors in order to achieve the same. Majority of the time, employees are
dissatisfied because their performance and efforts are not recognized and appreciated within a
company. The implementation of reward system helps in developing sense of satisfaction among
workers as they starts perceiving the fact that their efforts are recognized and appreciated by a
business enterprise.
According to Awadh and Alyahya, (2013) reward system directly results in enhancing the
motivation level and morale of workers and this result in improving the overall performance of a
company. On the contrary of this Hoch and Dulebohn, (2013) Has argued that only
implementation of reward system will not help companies to motivate workers. Business also
needs to focus upon the fact that the implemented system is fair and transparent. Sometimes the
use of reward system results in creating dissatisfaction among workers and deserving candidates
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are not being recognized and appreciated for their efforts. Partiality and discrimination among
workers during the process of performance appraisal and providing rewards directly affects the
performance of workers. It can be expressed that offering various types of monetary and non
monetary rewards to employees encourages them to give their best towards the success and
growth of a business enterprise. Armstrong and Taylor, (2014) has mentioned that reward
system supports in satisfying employees. A contented employee is asset for an organization and
positive and happy employees perform their work in better manner.
Loyalty of staff members towards organization increases and they complete their
assigned task in more productive manner on assigned time. It has been argued by Chou and
Chou, (2014) that reward management system requires cost and time of the enterprise and due to
it overall financial performance of the business gets affected. Reward management system play
a crucial role in motivating employees and inspiring them for completing their assigned work in
more advanced and efficient manner. However, competition is also increases among staff
members and inner grievance created which ultimately proves harmful for the organization. The
most significant role plays by reward system is in reducing the employee turn over rate in the
organization and retaining staff members.
Overall recruitment cost and training expenses are saved and due to that overall
investment cost of the enterprise gets reduced. Turker and Altuntas, (2014) has mentioned that
organizing recruitment and selection process in the organization is costly process and it is
financial burden on the enterprise. If staff members will be dissatisfied with the organization
they will frequently leave the job in search of better employment opportunities. It enhances
employee turnover rate in the company and lack of talented and suitable candidates raised in the
enterprise. Need is created for hiring talented and skilled personal in the corporation and for that
it is required that recruitment process should be organized. Various kinds of expenses are linked
with recruitment and selection process and there is need for giving advertisements in
newspapers, radio and television for attracting talented candidates to apply for the job positions.
Wang, Noe and Wang, (2011) has mentioned that when employees join an organization than
there is need for providing training to them. It supports in imparting required skills and
capabilities in new employees so that they can complete their tasks on determined time. Reward
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management system aids in making reductions in employee turnover rate and reducing expenses
of enterprise in conducting recruitment and training program.
Apart from this, fair system of reward also assist enhancing areas such as sales, profits,
and market share and customer base of a company. The use of reward system in organization
also play very important role in lowering down the rate of employee turnover which is very
beneficial in long term success and growth of a company. It can be stated that reward system
acts as a driving force and encourages workers to stay in the organization for very long time
period. This supports companies in saving their amount and resources in areas such as
recruitment and selection of new employees for the vacant position because of high turnover.
Apart from this, the use of reward system also assist businesses in carrying out smooth flow of
all their operations and business practices. Furthermore reputation of company is maintained and
all the stakeholders of business get benefited through effective reward management system
adopted in the corporation. Nanda, (2016) has explained that reward management system
supports in increasing productivity and efficiency of the staff members and overall objectives of
business can be achieved. Attendance of employees also increases and discipline is maintained
in the enterprise as all the workers focuses on completing their work in effective manner for
getting rewards. Absenteeism is a serious issue faced by organizations and reward management
system supports in dealing with the issue in efficient mode.
2.3 Link between employee performance and reward system
Employee's performance is defined as skills, talent, competency used by a worker for
completing their assigned task in successful manner. Eriksson and Hansson, (2013) has
mentioned that positive efforts given by staff members aids in accomplishing desired objectives
of corporation in effectual and successful manner. Reward management system is explained as
procedure of making policies and strategies for appreciating and recognizing good work
performed by manpower of the organization. Nanda, (2016) has mentioned on a critical note that
it involves cost and financial revenues of business and due to that profitability of enterprise
reduces. It is assertive that fair and transparent process should be used for giving rewards to staff
members. No discrimination and favoritism needs to be given to any employee while giving
rewards. Chou and Chou, (2014) has mentioned that reward management is a positive effort take
by management of an enterprise for recognizing contribution of staff members.
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Turker and Altuntas, (2014) has described that when employees are awarded than it
supports in boosting their morale and motivational level. Healthy competition is developed in
enterprises and all the staff members works in positive manner for gaining rewards. However,
Wang, Noe and Wang, (2014) has described that sometimes grievances and conflicts occur at
work place if fair and transparent procedures are not used while rewarding performance of
employees. Motivation level of employees enhances when their performance of workers is duly
recognized. Waal and Kourtit, (2013) has described that there are two types of reward system
one is extrinsic and other one is intrinsic reward system.
Bonuses, salary increment, gifts, promotions and monetary incentives' comes in the
category of extrinsic reward system. On the other hand intrinsic reward system includes
recognition, trust and empowerment shown towards the staff members. Both the systems
supports in appreciating the positive work done by the employees of the organization. Lin and
Lee, (2012) has mentioned that motivational level of workers in increases when they are given
positive feedback about the work performed by them in the organization.
Motivational theory given by Maslow's defines that there are five level of needs in an
individual. The five levels include physiological. Safety, social, esteem and self actualization
needs. When rewards are given to people it supports in fulfilling their self esteem needs. Efforts
of workers are appreciated in front of all the employees and it aids in developing feeling of
appreciation in them. They work in more effective way for completing their assigned task in
more effectual mode. Monetary awards in the form of bonuses, monetary incentives, salary
increment aids in fulfilling the physiological requirement of individual.
They try to move towards more higher levels for achieving and completing higher levels
of needs. Elmuti, (2013) has mentioned it is critical that contribution of staff members should be
duly recognized by adopting a fair procedure. It assists in developing feeling of trust among staff
members and they work in more efficient manner. Oke, (2016) has described that reward
management helps in shaping individual behaviour in the enterprise. It is a king of pay-off for
good performance done by the staff members.
However, Barnes and Liao, (2012) has described that reward management system aids in
retaining employees in the organization. Staff turnover rate is reduces when employees are
retained in the organization. Overall performance of the enterprise improves by making
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enhancements in effectiveness and productivity of workers. Sturman, Shao and Katz, (2012)
has mentioned that when contribution of employees is recognized their morale increases due to
which their loyalty towards organization gets improved. It becomes easier for organization to
attract, motivate and retain employees. It is vital that an effective pay system should be
implemented in the organization so that appropriate incentives should be given to workers on the
basis of task performed by them. On a critical note has described that rewards management is a
time consuming and cost taking process.
It is assertive to conduct job evaluation for assessing performance of staff members so
that fair system should be used while rewarding employees. As per Cuevas‐Rodríguez, Gomez‐
Mejia and Wiseman, (2012) Staff members gets motivated towards work when effective reward
management system is adopted in the organization. Dedication and interest of employees
increases towards the significant improvements in their performance level is observed. However
Bromiley and Rustambekov, (2015) has argued that an effective reward system is completely
based on performance and if transparency is not used it reduces efficiency of overall reward
management system. Desired goals and profits of organization can be achieved by involving
positive and effective contribution of employees. Pandey and Dutta, (2013) describes that reward
management is effective motivational practice that aids in enhancing morale of staff members.
Performance of employees improves and their efforts are duly recognized when they are
appreciated for good work done by them. If reward management system of the enterprise will be
good than it supports in avoiding cost for recruiting new employees.
A healthy work environment is created in the corporation and positive attitude and
behaviour is encouraged among workforce. Staff members seek advancements in their job
positions and for that they make significant contribution for accomplishment of tasks that are
assignment to them. Nanda, (2016) has mentioned that organizations are committed towards
reward management practices as it supports in accomplishing objectives of organization by
involving positive contribution of employees. An effective reward system aids in developing
feeling of ownership and accountability among employees and long term and short term
objectives of the enterprise can be achieved. On the other hand has described that team rewards
can also be implemented in the organization for enhancing team support and group working in
the enterprise. It also supports in minimizing grievances and dissatisfaction level of employees as
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contribution given by them is duly recognized. More improvements can be observed in the skills
and knowledge of employees when they are given opportunities for working on more higher job
positions.
Puterman, (2014) has mentioned that reward management system developed in organized
and systematic manner aids in making significant improvements in performance of staff
members. It reflects that corporation should focus upon developing appropriate reward policy as
it is directly connected with their better performance. For example, an employee getting
incentive for its extra efforts will be motivated to put more efforts for higher income. It
determine well being of companies as well as workforce. For this purpose, it becomes essential
for business to shed light upon expectations of buyers and accordingly opt suitable strategies to
meet them. However, organizational success is highly based upon qualities and skills of
employees. Owing to this, employees must be paid for their good work where extra payment
make sense a lot. In addition to this, reward system is developed by taking into account
important views of workforce. This would be effective for catering need of buyers and creating
good will of the business in the marketplace with higher rate of return. At the same time,
expectations of different stakeholders will be met by introducing appropriate kind of reward
system.
Cummins (2011) critically evaluated that in case employees are not satisfied and less
motivated then they will not be able to perform good. At this juncture, business uses appropriate
strategies for improving performance by adding reward system and motivation techniques. This
tends to retain them for longer time span and increase their attention towards work. This reflects
that better performance of business is based upon work and efforts put by employees. Güngör
(2011) argued that employees are dedicated and more concentrated when they are provided good
work environment and appropriate working condition. It proves to be effective for better
performance of the business and long run survival of the same.
2.4 Different types of reward system used in an organization
According to the view point of Awadh and Alyahya, (2013) There are different types of
reward systems which are being used by companies with an objective to motivate their workers
and encourage them to give their best. Some companies provide monetary rewards to their
employees whereas some businesses provide both monetary and non monetary rewards. On the
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other side of this,.Has asserted that rewards in organization can be categorized into two different
categories which are intrinsic reward and extrinsic rewards. Furthermore, it can be stated that
intrinsic rewards are the one which are linked with the job of employees. It is a kind of
satisfaction and motivation which employee achieve by completion of a particular task or
activity. The key example of such types of rewards include feeling of accomplishment,
satisfaction, pride on work and being a part of particular team or project in an organization.
However, Reason, (2016) has critically argued that extrinsic rewards are completely
different from intrinsic rewards as they are provided externally. The example of such type of
reward includes fringe benefits and different types of monetary rewards which are being offered
to people in a business enterprise. Afiouni (2013) further explained that all kind of reward are
important for motivation of employees and increasing their attention towards their job. It would
be effective to retain them for longer time span. At the same time, management ensure to offer
varied range of motivation at workplace which in turn workforce tend to shift their focus on
achieving set objectives. This proves to be effective to deliver good quality of services to large
number of buyers. Apart from this, other kind of direct payments such as salary, wages and
bonus long with incentives are important to ensure well being of workforce. Not only this but
commissions and allowances are imperative aspect which make it possible for workforce to
meet their short as well as long term obligation in an effectual manner. It enables them to shed
light upon allotted work and perfection in the same. Furthermore, indirect payment in term of
financial reward is provided by management of business. It consists of sick leave. Purchases ans
discounts as well as medical insurances and pensions. These some aspects tend to determine
sense of satisfaction among personnel associated with business. Kasmi (2011) asserted that
financial soundness is arrived through which financial reward for employees. Under this,
management ensures that employees are provided good monetary reward for maintaining their
satisfaction level. In addition to this, management of businesses company shed light upon
satisfaction of personnel through which they can be motivated and will be willing to invest their
time as well as resources for achieving good quality of services to large number of buyers. This
would be effective for creating competitive edge of the business in the marketplace. Moreover,
package of varied benefits make it possible for companies to cater their need and retain them for
longer time span. It shows that both kind of reward are important for employees.
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According to Kelliher and Perrett (2007) reward system is based upon requirement of
employees and their willingness to accept challenges at workplace. For this purpose, employees
shows their interest towards accomplishing set targets and catering need of buyers in an
effectual manner. However, reward policies are framed for each department such as production,
sales and marketing as well as finance. Under this, targets are set for individual or team
performance and then accordingly workforce are offered rewards. Manning (2013) argued that
non-financial reward includes job satisfaction in term of lunch hours, furnishing and parking
spaces as well as another related aspects. It enables corporation to cater need of personnel and
provide them safe work environment in order to increase their attention towards work. At the
same time, own secretary and business cards are important for catering need of personnel and
provide them effective work environment. It can be critically evaluated that generally employers
face issue of absenteeism which take place because of low motivation among employees. Owing
to this, it becomes necessary for corporations to shed light upon requirement of employees and
understanding their capabilities to allot work accordingly. Apart from this, businesses ask
regarding views and suggestions of employees so as to ensure or introduce suitable kind of
reward policies. By using effective reward policies firms tend to improve satisfaction level of
employees.
Cummins (2011) explained that reward policy plays crucial part in determining success
of business. For instance, desired work assignment, effective work environment along with
impressive job title are used so as to motivate personnel for their better job. It aids to increase
overall rate of return of the firm as satisfied work force generally devote their time to
accomplish business objectives in a most effective manner. According to the view point of
Bromiley and Rustambekov, (2015) financial and non financial are the two different types of
reward system which are being used by companies while carrying out their business practices. It
can be critically evaluated that before offering reward, management should incorporate views
and suggestions of employees. It would be effective for workforce to feel valuable by working
and they will put their efforts to achieve targets on right time. However, management must
ensure to have clear communication with them. It serves as the non-monetary reward system
under which personnel get chance to speak regarding their work as well as issues which are
being faced by them for accomplishing the task. This in turn efforts are put to improve business
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performance with the concept of employee engagement which tend to deliver good quality of
services to large number of buyers. Apart from this, strategies regarding workforce motivation
would be effective for retention also.
According to Oke, (2016) reward system must be updated on time to time through it
become easy for management to retain personnel for longer time span. This proves to be
effective for business to create competitive edge in the marketplace. It facilitates to expand
business at international marketplace whereby corporation can easily ensure its long run growth
with increased rate of return. At the same time, it is also important to offer reward at individual
level such as recognition and achievement under success event. This tends to increase level of
motivation and enthusiasm among workforce.
It can be asserted that sometimes businesses provides financial or monetary rewards in
terms of salaries, wages, commission, bonus and incentive to their workers with an objective to
motivate them and enhance their performance. On the other side of this, some companies
provide non monetary or non financial rewards to workers. The example of such kind of reward
includes appreciation in front of others and providing with higher job responsibilities to
employees. It can be stated that each and every company has its own set of reward system which
is being developed on the basis of elements such as size and nature of business. Chou and Chou,
(2014) has explained that instead of focusing upon one particular system of reward what
companies can do is that they can start providing different types of rewards to their workers.
Along with this, workers can be encouraged to take part in the process of the developing the
most suitable and appropriate system of reward within a company.
This will help in formulation and implementation of the best and most effective system of
reward in a company and will also support in enhancing the degree of employee satisfaction
which is very important in order to sustain in long run. Extrinsic and intrinsic are two types of
rewards that are given to staff members. Financial incentives given to staff members aid in
fulfilling their basic needs and it helps employees in living a standard life. Moreover, non
monetary incentives supports in enhancing motivation level of the staff members and due to it
their moral improves. It inspires them to accomplish their assigned task in more effective mode.
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2.5 Conceptual framework
The conceptual framework of current study has been explained as follows which reflects
that different kind of reward system tend to increase motivation level of personnel. This proves
to be effective for management to render good quality of services to large number of buyers. It
facilitates to determine long run success of business and performance of workforce is improved
by using appropriate reward system.
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Illustration 1: Conceptual framework
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CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
Research methodology is considered as the most important chapter which consists of
different method and tools for collection as well as analysis of information. It assists scholar to
reach at the aim of the investigation as appropriate methodology is applied for gathering
appropriate outcome. Under this, all methods and tools are described along with justification of
select method. This proves to be effective for collecting large amount of information so as to
reach at the aim of the investigation in an effectual manner. In addition to this, it can be said that
overall methodology section provides a systematic analysis of the information so that goals and
objectives can be accomplished in desired manner (Jackson, 2010). It is a strategy which is
considered by researcher in order to follow one particular direction while conducting the
research project in systematic manner. By having an improved focus on the tools and techniques
the overall study can be accomplished in desired manner. With an assistance of research methods
the effectiveness of reward system can analysed in appropriate manner for improvement in
organizational performance. There are number of methods which are being adopted by the
investigator in order to meet the objectives. Classification of key research methods can be as
research design, philosophy, research approach, etc. Moreover, the effective reference of
objectives is also a critical aspect for the present study (Khan, 2011). Along with this, for
effective collection of data the data collection is also being referred in appropriate manner. With
an assistance of this, primary and secondary information has been gathered so that goals and
objectives can be accomplished effectively. Appropriate discussion of qualitative and
quantitative aspects is also a significant aspect which assist in analysing the effectiveness of
reward system.
3.2 Type of investigation
In order to have effective analysis of reward system, it is significant for experts to have
improved focus on the type of investigation. By having an improved focus on the research type
the better support can be provided to overall study. With an assistance of this, better path can be
designed to draw outcome. There are two types of research investigation such as qualitative and
quantitative. It has been noticed that quantitative investigation is considered as a study that
provides a statistical outcome. Here, qualitative type of investigation demands for in-depth
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analysis of collected through which researcher can easily reach at the aim. On the other side, the
qualitative investigation provides a descriptive outcome and helps in make sure that key
standards are well maintained (Dey, 2002). Selection of quantitative aspect is not appropriate for
the present investigation because analysing a statistical information can be a complex task for
managerial professionals. Quantitative type of investigation is applied so as to assess impact of
on factor on another. For the current investigation the experts has focused on application of
qualitative research and it helps in determine the effectiveness of reward system in enhancing
employee performance. With an in-depth collection of data the significance of reward system in
organization can be understand in descriptive manner.
3.3 Research design
It is considered as one of most essential section of the research methodology, in order to
have appropriate designing of outcome the selection of designing is significant. There are
number of research design methods which are employed the investigator such as descriptive,
exploratory, etc. For the present dissertation the descriptive research design is being employed so
that determination of effectiveness of reward system in enhancing employee performance can be
taken into account. With an assistance of this, significance of reward system within organization
can also be analysed in appropriate manner (Crowther and Lancaster, 2012). In addition to this, it
can be asserted that the selection of descriptive aspects has provided a better acknowledgement
about the subject. It means it shares a wide range of information in regard to the subject so that
better strategies can be designed in context to reward system so that overall performance of
Intercontinental hotel can be advanced. With the help of this research methodology tool,
researcher has gained deep and insight details about the subject matter of the study.
3.4 Research philosophy
Research philosophy is one of most critical aspect that allows to have effective
accomplishment of key goals and objectives. In addition to this, it can be contended that
interpretivism and positivism philosophy is mostly adopted by the researcher. In order to have
appropriate consideration of key aspects for the present investigation, experts has focused on use
of interpretivism philosophy. With an assistance of this, the rationale of report can also be
addressed in appropriate manner (Pring, 2011). It has been noticed that link between employee
performance and reward system has also been analysed effectively so that overall outcome can
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be attained. In addition to this, it can be said that selection of positivism philosophy was not
appropriate for the present study because it is mainly used in the studies which are based on the
some particular evidences. By having a selection of the interpretivism philosophy the researcher
has effectively drawn an outcome. Collection of information and its analysis has also been taken
into account for accomplishment of the research aim and objectives. It also helps in effective
examination and observation of information so that logical learning can be promoted through
assistance of study (Saunders and et. al., 2010).
3.5 Research Approach
Research approach also provides a better support to the methodological aspects so
selection of approach must be referred as critical aspect. Technique of research approach is
applied to conclude the understanding of the subject matter either in generalized form of results
or in specific form. It has been noticed that inductive and deductive approach of research is
mainly referred by experts. In addition to this, it can be said that inductive approach is being
employed by the investigator so that goals and objectives can be accomplished in desired manner
(Silverman, 2010). Key reason behind the selection of approach is that it allows to identify the
significance of reward system in organization by taking responses from the employees of hotel.
Along with this, the use of inductive approach is also beneficial to attain the information in
generalized manner. With an assistance of this, determination of effectiveness of reward system
can also be taken into account. It also helps in examination of collected information so that
objectives can be accomplished in desired manner. It also assists in analysing the ways that can
be adopted firm in order to meet objectives (Singh, 2010).
3.6 Data collection
Data collection is considered as the most important process of dissertation under which
researcher shed light upon gathering different kind of data. Here, basically two types of
information are collected for producing valid outcome such as primary and secondary. In this
regard, primary data collected from sources like questionnaire, interview and observation are
used for gathering detail. On the other hand, secondary information are collected from sources
such as journals, books and online articles (Johnson and Christensen, 2010). It proves to be
effective for providing effective evidence for the study and accomplish the purpose in an
effectual manner. However, primary information for current study has been collected from
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questionnaire method. The main reason behind selecting such kind of method is to accomplish
all research activities.
Under this, different open and close ended questions are included through which
respondents can easily provide their views upon a particular topic. This reflects that adoption of
questionnaire method make it possible to save overall time. For example, when respondents get
questionnaire then they are provided several options for each questions framed in the light of
research aim and objectives (Hannabuss, 2009). In order to have effective collection of data, it is
significant for researcher to have appropriate selection of data collection techniques. Hence, both
primary and secondary data collection process is being employed by the researcher so that
information can be collected in appropriate manner.
3.7 Population, context and location
Population is considered as a target population of the study which also assist in data
collection process. It is significant to have decision regarding population and location so that
primary data collection process can be accomplished in desired manner. As same the for the
present investigation the population is HR professional, executives and front office professional
of Intercontinental hotel, UK. These were the key respondents of the primary research as they
can only give the information about the hotel. In order to have effective gathering of the
information the support of Intercontinental hotel employees is being taken into account
(Jackson, 2010). Responses provided by them helps in exploring the key aspects associated with
the reward system so that better strategies can be adopted in order to meet objectives. Key
rationale behind the selection of employees as a population is to attain authentic and reliable
information. Only organization employees are key aspect who are acknowledged about the
policies and their effectiveness so gathering an information from employees of Intercontinental
hotel is one of significant aspect. In addition to this, it can be said that according to topic the
selection of target population is appropriate and it helps in meeting objectives (Khan, 2011). In
this, equal opportunity is being provided to employees of all levels so that actual information can
be gathered. It facilitates in draw the final outcome of the report.
3.8 Sampling
Sampling refers to individual unit of population which represent entire targeted people. It
assists scholars to collect data and make use of the same for accomplishing research aim and
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objectives. There are different types of methodologies used for sampling such as probabilistic
and non-probabilistic which are applied in accordance with aim of the study. However, selection
of appropriate sampling is based upon nature of study and its potential requirement to meet
research objectives (Gravetter and et al., 2010). Under the current investigation simple random
has been used for selecting target respondents. In this regard, all employees of IHG hotel serves
as the population from which 50 are selected. Therefore, 50 reflects the sample size whereby
primary data are collected. The main reason behind selecting simple random sampling is to
provide equal chance to all respondents to get selected in the study. Owing to this, 50
respondents are targeted from which all detail related to reward system has been asked. Under
this, researcher come to know about link between reward system and its direct impact on
performance of employees.
Therefore, simple random sampling is important make it possible to avoid chance of
biasness and collected information is best suitable for meeting research purpose. It reflects that
selected methodology of sampling plays vital role in interact with respondents in a direct or
indirect manner (Daniel and Sam, 2011). Owing to this, simple random sampling has been
applied to collect valid information and draw suitable outcome from the same in order to reach at
the aim. At this juncture, selection of simple random sampling would be effective for producing
valid outcome and accomplishing aim of the investigation in a most effective manner.
3.9 Sampling Technique
There are basically two kinds of techniques which are being considered by the researcher.
Classification of key sampling techniques can be as probabilistic and non-probabilistic. By
having an improved focus on the selection of sampling techniques the better support can be
provided to data collection process. It allows to have effective categorisation of diverse segments
on the basis of which data is being selected. As per the effective consideration of the research
problem, the selection of probabilistic technique is being taken into account. Using of
probabilistic sampling in the study was also to avoid the biases in the study as there may be
chances of issue that samples are selected as per own choice (Dey, 2002). In addition to this, it
can be said that random sampling is being taken into account to provide a support to overall
learning. With an assistance of this, the data can be collected in appropriate manner so that goals
and objectives can be accomplished in desired manner. It provides an equal opportunity to
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overall population to take participation in the decision making process. Sampling technique
selection has helped in make sure that skilled and well knowledgable employees are being
selected to take responses. It provides a better authenticity to the data collection process which is
beneficial to meet the key goals and objectives (Crowther and Lancaster, 2012). With an
assistance of this, information is being collected effectively in order to identify the effectiveness
of reward system for improvement in organisational performance.
3.10 Data analysis
Data analysis is considered as the most important part of dissertation as it provide
information related to tools applied for analysis of collected data. Basically two types of
techniques are used for analysis of data such as qualitative and quantitative where the former one
is applied under study. However, qualitative type of investigation is applied in-depth analysis
whereas another type of investigation is used for assessing effect of one variable on another
(Cummins, 2011). It would be effective for researcher to reach at the aim of the investigation in
an effectual manner. Generally, qualitative type of investigation consists of thematic analysis
wherein themes of each question is presented along with graph. However, each theme is
supported by clear description and explanation which develop deep understanding among
readers. Apart from this, quantitative type of investigation are used with different techniques
such as correlation, regression and standard deviation. However, such kind of techniques prove
to be a bit typical. Owing to this, simple form of analysis has been applied under which in-depth
analysis of collected information has been done (Pring, 2011). It indicates that thematic analysis
has been used under the study where themes are prepared on the basis of questionnaire and then
collected information are presented effectively. However, detail analysis is done on the outcome
and at the same time consistency and in primary and secondary information is also ensured.
Hence, thematic analysis has been applied for detail analysis of information for extracting valid
outcome.
3.11 Validity and Reliability
Validity and reliability is considered as one of critical aspect so that goals and objectives
can be accomplished in appropriate manner. It is one of most significant aspect of research study
and it helps in delivery of findings and conclusion for the study so that outcome of investigation
can be attained in appropriate manner. In present dissertation, researcher has effectively focused
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on both of these elements in order to have better outcome. If these two aspects are not well
maintained then overall effectiveness of study might get affected in diverse manner. In
deliberation to the validity of the information detail in the report, initially precise amount of
reviews accessed in the literature review section (Saunders and et. al., 2010). With an assistance
of this, the subject of the investigation can be overcome in diverse manner.
In order to meet the validity and reliability information collection process the researcher
has focused on collection of primary information from employees of Intercontinental hotel. With
an assistance of this, authentic information is gathered effectively. It allows to have better
designing of final outcome so that goals and objectives of investigation can be accomplished in
desired manner. Along with this, in order to maintain the standards of validity and reliability the
questionnaire is being framed according to objectives of the investigation (Singh, 2010). It
means such kind of aspects provide a better accomplishment of objectives for determination of
effectiveness of reward system within Intercontinental hotel. For effective collection of
secondary information the researcher has focused on accessing the authentic sources. Literature
documents which are accessed by the investigator are related with the reward system and its
impact on the organisational performance (Silverman, 2010). It helps in effective understanding
about the subject and make sure that the information presented in the dissertation report is useful
for academic purpose as well as organisational working.
3.12 Ethical Consideration
Ethical consideration of dissertation is very important under which research must focus
upon ethics. Under the current investigation on effectiveness of reward system ethics has been
considered by researcher. Accordingly, no any respondents were forced to take part in the study
and their willing contribution was welcomes by researcher,. It would be effective for scholars to
ensure collection of information without bias. Furthermore, prior approval was taken from
respondents regarding the data collection process and purpose of they study was also made clear
to them (Crowther and Lancaster, 2012). Furthermore, it was ensured that not any personal data
of respondents will be disclosed to third party. However, other detail of participants will be
deleted after completion of study. It shows that collected information will be used for study
purpose and misuse of the same has not been done. Moreover, secondary information were taken
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with appropriate measures and no detail were copied from available sources. Here, researcher
adopted ethical practices and accordingly referred content was cited properly.
3.13 Research limitation
Research limitation for any study are considered by research as it limits the study to a
great extent. For this purpose, research applies appropriate methods to overcome the weaknesses
and accordingly valid outcome are presented. However, following limitations are faced by
research while completing the entire study-
The entire study is based upon both collection of primary and secondary data under
which research required to access varied sources (Cooper and Schindler, 2011). For this
purpose, at the time of collection of secondary data some of the sites were restricted to
use. Owing to this, it might be possible to that some of the information information left
unused.
Completion of entire study is not easy task which need enough time to complete all
chapter. The current dissertation also faced time constraint while collecting and analyzing
data. However, research used effective approach and followed gantt chart through which
all activities can be completed on time (Johnson and Christensen, 2010).
The research activities are completed with employment of some financial resources also.
It is because number of resources such as stationary and other sources are required to
employed some money so that accordingly data can be collected. Owing to this, huge cost
has been incurred for gathering appropriate information (Crowther and Lancaster, 2012).
However, appropriate strategies are used for collection of valid information and reaching
at the outcome of the study effectively.
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CHAPTER 4: DATA ANALYSIS
4.1 Introduction
For the present study, the researcher has been collected from primary sources and it has
been analysed with the help of qualitative and quantitative methods. For this, data has been
accessed from questionnaire tool that has helped in determine the importance of rewards systems
in enhancing Intercontinental Hotel of Groups employees’ performance. For this, thematic
analysis has been adopted because collected primary information has in qualitative manner. Data
analysed with the help of this method has presented in the form of graphs, charts, tables etc.
4.2 Data Analysis
Characterizations of selected respondents are as follows:
Gender
Frequency Percentage Valid percentage Cumulative percent
male 30 60 60 60
Female 20 40 40 100
Total 50 100 100
Management Level
Frequency Percentage Valid percentage Cumulative percent
HR Executives 21 42 42 42
Managers 20 40 40 82
Front-line staff 9 18 18 100
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Total 50 100 100
Theme 1: Reward is the most essential element that can bring improvement in productivity and
efficiency of employees of organization.
According to you, which one is the most essential element that can bring improvement in
productivity and efficiency of employees of organization?
Frequency Percentage
Valid
percentage
Cumulative
percent
Motivation 10 20 20 20
Clear goals and mission 6 12 12 32
Team member supports 8 16 16 48
Effective communication 12 24 24 72
Rewards system 14 28 28 100
Total 50 100 100
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Findings and interpretation From the above response of the respondents of sampling
population, it has analysed that 20% of the employees Intercontinental Hotel of Groups has
agreed that reward is the most important element which has brought improvement in their
productivity and efficiency. It can be second motivational factor that has become important for
the organization to carry out the operational issues in an effective manner. As per the literature
review, it has determined by the researcher that effective reward strategy of the company has
encouraged personnel to motivate in the right direction and it has essential for both organization
and personal growth of the employees. So, it can be said from the above discussion that reward is
an important element for Intercontinental Hotel of Groups in order to improve their productivity
and efficiency level.
Theme 2: Intercontinental Hotel of Groups has adopted effective reward systems for the
employees.
Intercontinental Hotel of Groups have adopted effective reward systems for the employees
Frequency Percentage
Strongly agree 15 30
Agree 10 20
Neutral 5 10
Disagree 9 18
Strongly disagree 11 22
Total 50 100
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Findings and interpretation: On the basis of the above table, the research has tried to
determine that whether Intercontinental Hotel of Groups has adopted effective reward systems
for the employees or not. In this context, the collected primary information has stated that 30%
respondents have agreed from the following statement. In addition to this, 20% have also agreed
from asked question of the scholar. While 10% respondents have neither agreed nor disagree that
Intercontinental Hotel of Groups has followed an effective reward mechanism at the workplace.
On the other hand, 18% participants in the research have not agreed from defined statement and
similarly 22% has stated in the favour. Therefore, from the above discussion, it has been
concluded that Intercontinental Hotel of Groups has adopted effective reward systems for its
employees so that they become motivated in the right direction.
Theme 3: Yes, Intercontinental Hotel of Groups of Hotel imposes more unique and effective
reward systems on the basis of work performance of personnel than it will increase
productivity of them.
If Intercontinental Hotel of Groups of Hotel impose more unique and effective reward systems
on the basis of work performance of personnel than it will increase productivity of them?
Frequency Percentage
Yes 27 54
No 17 34
Can’t say 6 12
Total 50 100
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Findings and interpretation: From the above table, the researcher wants to find out the
whether Intercontinental Hotel of Groups of Hotel has used unique and effective reward systems
on the basis of work performance of personnel than it will increase productivity of them or not.
In this context, the gather information from questionnaire, it has determined that 54%
respondents have supported the asked statement of the scholar. From the literature, review, it has
found that reward system consists of several favourable aspects for business such as retention of
employees and attraction of new personnel as well as creation of goodwill. Along with this, it has
also explored from the investigation that adopted reward strategy of cited hotel has maintained
healthy work environment at the workplace which has brought the improvement in performance
of the staff members and effort put to bring perfection in their work. On the other hand, 34%
respondents have selected no option because they think that Intercontinental Hotel of Groups of
Hotel has not used effective rewards systems with the aim of improving performance of
employees. While, 12% has chosen can’t say option as per their experience and expectations.
Therefore, from the above discussion of different data rage, it has been concluded by the
researcher that Intercontinental Hotel of Groups of Hotel has imposed more unique and effective
reward systems on the basis of work performance of personnel than it will increase productivity
of them.
Theme 4: Employee retention issues of Intercontinental Hotel of Groups have increased
because of poor reward structure, low wages rate and other additional benefits.
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Employee retention issues of Intercontinental Hotel of Groups have increased because of poor
reward structure, low wages rate and other additional benefits
Frequency Percentage
Strongly agree 17 34
Agree 12 24
Neutral 6 12
Disagree 8 16
Strongly disagree 7 14
Total 50 100
Findings and interpretation: According to the collected primary data, it has been found
that 34% respondents strongly agree that employee turnover is increased due to poor reward
structure and low wage as well as absence of other benefits which are generally provided to
employees. At the same time, 24% participants do agree with the same and stated that benefits
and reward policies are important for retention of personnel for longer time span. On the other
hand, 12 respondents neither agree nor disagree with relation of retention and reward structure.
However, 16% participants do not agree that reward system affect employee turnover. In
addition to this, remaining participants strongly disagree with the same and reflected that poor
reward system does not affect retention of workforce.
The collected information is consistent with secondary data which shows that reward
system aids to retain personnel for longer time. It can be critically evaluated that in the absence f
effective reward policy and low rate as well additional benefits make it possible to retain
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workforce for longer time. However, major of respondents do agree with the same and they
observed direct impact of reward system on their performance. Hence, appropriate wage and
additional benefits as well as effective reward structure tend to ensure retention of workforce. In
this manner, majority of respondents do agree with the same. Owing to this, it has been found
that IHG hotel can consider its growth and development with effective implementation of reward
system. This proves to be effective for creating goodwill of business with increased rate of
return.
Theme 5: Monetary factors (Incentives/ Group Incentives) that affect reward systems as they
are playing significant roles in personnel motivation and their retention
Incentives/ Group Incentives
Frequency Percentage
Strongly agree 16 32
Agree 11 22
Neutral 7 14
Disagree 9 18
Strongly disagree 7 14
Total 50 100
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Findings and interpretation: The collected information bring froth outcome that 32%
respondents strongly agree with monetary factors such as incentive and group incentives plays
significant role in motivation and retention of personnel at workplace. Furthermore, 22%
participants do agree with the same and stated that when monetary benefits are provided to
employee then their level of motivation as well as satisfaction is increased. It enables them to
focus upon their work through which they can easily contribute towards growth and development
of business. Apart from this, 14% participants neither agree to disagree with role of monetary
reward on motivation of personnel as well as their retention. They stated that no any kind of link
can be ensured between both of these factors. Furthermore, 18% employees of IHG hotel
disagree with role of reward system and its role of personnel motivation and retention.
In addition to this, remaining 14% employees working in IHG hotel strongly disagree
with the role of monetary benefits on motivation as well as retention. However, collected
information is consistent with literature and shows that employees can be retained for longer
time span when they get good reward for their better performance. Hence, majority of
respondents do agree with effectiveness of monetary reward and its potential impact on
performance of corporation. It would be effective to deliver good quality of services to large
number of buyers and cater their need in an effectual manner. Hence, reward system plays
important role behind success of business as it support business to retain buyers.
Theme 6: Voluntary benefits is the monetary factor that determine personnel motivation and
retention
Voluntary benefits
Frequency Percentage
Strongly agree 18 36
Agree 12 24
Neutral 6 12
Disagree 4 8
Strongly disagree 10 20
Total 50 100
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Findings and interpretation: According to the collected information, it has been found
that 36% respondents do strongly agree with voluntary benefits which arrived from reward
system. It assists workforce to deliver good quality of services to large number of buyers. It is
because when personnel are provided voluntary reward then they feel better to contribute their
efforts towards growth and success of business. Furthermore, 24% participants do agree with the
same and strategies when voluntary reward is provided then workforce feel motivated at
workplace. At the same time, 12% employees working in IHG hotel neither agree nor disagree
with role of impact of voluntary benefits offered by hotel for increasing sense of satisfaction
among employees. Similarly, 8% personnel of IHG hotel do not agree whereas remaining 20%
strongly disagree with the same and stated that majority of respondents feel good by working in
the hotel as they are offered voluntary benefits. However, gathered information is consistent with
secondary data which shows that workforce seek for their betterment and growth opportunities.
These aspects are ensured by companies and accordingly business can focus upon creating
goodwill in the marketplace with higher rate of return. It indicates that monetary reward system
does affect performance of company and accordingly significant impact can be seen in the
performance of workforce. This tends to reduce cost of production and ensure well being of
business for meeting expectations of all related stakeholders.
Theme 7: Rewards as monetary factor that affect reward systems as they are playing
significant roles in personnel motivation and their retention
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Rewards
Frequency Percentage
Strongly agree 12 24
Agree 17 34
Neutral 3 6
Disagree 10 20
Strongly disagree 8 16
Total 50 100
Findings and interpretation: The aforementioned bring forth outcome that reward
offering monetary benefits prove to be most effective for employees because 24% respondents
do strongly agree with the same whereas 34% also do agree upon it. It is showing that employees
seek for their growth and development with expectations of increased pay scale and incentive
etc. However, 6% participants neither agree nor disagree with it and reflected that monetary
reward are not important for retention as well as motivation of workforce at IHG hotel.
Furthermore, 20% workforce does not agree with view that monetary reward tend to increase
motivation as well as retention. It would be effective to determine higher rate of return for the
business so as to meet expectations of consumers in an effectual manner. Moreover, remaining
16% of respondents strongly disagree with the same because they like to work in a appropriate
working condition so as to meet their expectations effectively. Apart from this, workforce feel
motivated and they can be retained when they are paid extra for their better performance at
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workplace. Therefore, majority of respondents do agree with the same and stated that monetary
reward are important which tend to increase their level of satisfaction as well as motivation. This
aspect ensures their good performance through which business can determine competitive edge
in the marketplace.
Theme 8: Bonus as that affect reward systems as they are playing significant roles in
personnel motivation and their retention.
Bonus
Frequency Percentage
Strongly agree 13 26
Agree 15 30
Neutral 5 10
Disagree 7 14
Strongly disagree 10 20
Total 50 100
Findings and interpretation: From the above table, the researcher has determined that
30% respondents have agreed that bonus have played significant roles in personnel motivation
and their retention in Intercontinental Hotel of Groups. 26% responders have also supported from
the asked statement. On the basis conducted literature review, it has found that hotel has given
different kinds of bonuses to its personnel such as performance bonus, year-end bonus, profit
sharing bonus and discretionary bonus. These all have highly affected the performance level of
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the employees in the right direction. Along with this, these have motivated them to increase their
efforts to attain the business objectives. On the other hand, 20% respondents have not agreed
from stated statement of the researcher and similarly 14% responders have not supported it.
Therefore, from the above discussion, it has been summarized by the researcher that bonuses are
the effective reward system of Intercontinental Hotel of Groups and they are playing significant
roles in personnel motivation and their retention
Theme 9: Which non-monetary factors that affect reward systems as they are playing
significant roles in personnel motivation and their retention
Which non-monetary factors that affect reward systems as they are playing significant roles in
personnel motivation and their retention
Frequency Percentage
Recognition and awards 12 24
Health & Welfare benefits 15 30
Free Lunch or Dinner services in organization 6 12
Promotion 7 14
Fringe benefits 10 20
Total 50 100
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Findings and interpretation: According to the collected information, it has been found
that 24% respondents consider that recognition and award is the effective non-monetary reward.
It assists personnel to focus upon their work and deliver good quality of services to end users. On
the other hand, 30% respondents feel that health and welfare benefits prove to be effective for
increasing motivation level and retention of employees. Under this, it is important for
corporation to shed light upon their positive feeling and they develop positive kind of behavior at
workplace. It can also be said that when workforce get health and welfare benefits then they feel
valued at workplace. Owing to this, IHG hotel focuses upon specific need related to motivation
of workforce. In addition to this, 12% participants reflected that free lunch and dinner services in
organization which tend to derive higher level of motivation among them. Moreover, p14%
participants stated that promotion and 20% reflected that fringe benefit is most important for
workforce to increase their satisfaction as well as motivation level. Therefore, majority of
respondents consider that health and welfare benefits are more important for them in term of
non-monetary benefits. It proves to be effective fro well being of firm as well as employees.
Theme 10: By considering your past experience and expectations, rate your job satisfaction in
Intercontinental Hotel of Groups.
Job Satisfaction
Frequency Percentage
Strongly agree 17 34
Agree 15 30
Neutral 4 8
Disagree 5 10
Strongly disagree 9 18
Total 50 100
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Findings and interpretation: This theme focused on evaluating the employee
experiences regarding rewards and benefits within an organization. It helps the researcher in
investigating about the employee’s perception regarding the rewards and motivational aspects
within business. The theme focused on analysing whether the employees of intercontinental
Hotel are satisfied on company’s reward strategy. To evaluate the same the past experiences of
the employees will be considered for the same. It will help in developing an effective and well
defined means of understanding on the subject associated. The findings of the study revealed that
34% respondents said that they are highly satisfied with the reward strategy of the business. 30%
respondents said that they are satisfied with the same. 8% respondents however gave a neutral
reaction while 10% said that they are dissatisfied with sated measure. 18% respondents however
said that they are highly dissatisfied with the reward strategy. The overall evaluation reflects that
the employees of Intercontinental Hotel of Groups are satisfied with reward strategy of the
business which can be revealed from it past measures adopted. Moreover it has been evaluated
that job satisfaction level in the business is significantly high which has helped the company in
developing a positive and growth impact in the present competitive market.
Theme 11: By considering your past experience and expectations, there is a clear relationship
between job performance and reward systems of Intercontinental Hotel of Groups.
I can notice a clear relationship between job performance and reward systems of Intercontinental
Hotel of Groups
Frequency Percentage
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Strongly agree 11 22
Agree 17 34
Neutral 6 12
Disagree 7 14
Strongly disagree 9 18
Total 50 100
Findings and interpretation: The current theme of the analysis focuses on analyzing the
relationship shared by job performance and reward system of the business unit. This aspect helps
the researcher in effectively understating a relationship between the variable associated. The
subject of the study is directly related to the research problem. It helps the researcher in
developing a significant a well-defined understating on the matter associated. The findings of the
study revealed that 22% respondents out of the sample of 50 employees said that they believe
that there is a strong relationship between job performance and reward systems of
Intercontinental Hotel of Groups. 34% respondents agreed with the same. Thus overall
evaluation states 28 respondents gave a positive response towards the question framed. However
12% respondents gave a neutral reaction of the subject. This stated that they neither agreed
neither disagreed that job performance and reward systems of Intercontinental Hotel of Groups.
However 14% respondents disagreed with the stated subject and 18% respondents highly
disagreed with the subject associated. Thus overall it can be evaluated that there is a clear
relationship between job performance and reward systems of Intercontinental Hotel of Groups.
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The responses on the subject reflect the same. It can thus be analyzed that reward system plays a
significant impact on enhancing the job performance of employees within an organization
Theme 12: By considering your past experience and expectations, your values and beliefs are
similar with Intercontinental Hotel of Groups values and beliefs.
Loyalty
Frequency Percentage
Strongly agree 13 26
Agree 15 30
Neutral 6 12
Disagree 8 16
Strongly disagree 8 16
Total 50 100
Findings and interpretation: By taking past experience and expectations of the
employees of Intercontinental Hotel of Groups, the researcher wants to determine that whether
the values and beliefs of personnel have matched with organizational values and beliefs or not. In
this context, the above gather information has defined that 30% respondents have agreed from
the asked question of the scholar. In addition to this, 26% has also supported the stated statement
of the researcher. But 12% responders have voted in neutral option where they have not able to
explain that their values and beliefs have matched with organization values and beliefs or not.
While, 16% employees have described their personal values and beliefs have not matched with
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cited hotel values and beliefs. Therefore, from the above discussion, it can be stated that most of
the personnel part experience and expectations shows that their values and beliefs are similar
with Intercontinental Hotel of Groups values and beliefs.
Theme 13: By considering your past experience and expectations, your are actively/passively
looking for another job outside of Intercontinental Hotel of Groups
Turnover intent
Frequency Percentage
Strongly agree 15 30
Agree 14 28
Neutral 6 12
Disagree 6 12
Strongly disagree 9 18
Total 50 100
Findings and interpretation: From the above table of collected data, it has recorded that
30% respondents have looked towards find another job outside of Intercontinental Hotel of
Groups. In this context, 28% of the employees have agreed from the asked question of the
researcher. On the other hand, 12% have not able to take decision either they have to leave the
organization for a good job or not. But 12% responders have defined that they have not searched
a new job outside the Intercontinental Hotel of Groups. Along with this, 18% respondents have
disagreed from the stated statement of the scholar. On the basis of above discussion, it can be
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said that percentage of looking for another job outside of Intercontinental Hotel of Groups is
higher than rest of the population. The following outcomes show that the number of employees
who are leaving the organization is increasing with the time.
Theme 14: Training and development and hike in wages rate are motivation and retention
strategy adopts by Intercontinental Hotel of Groups to enhance productivity of the employees
in the right direction.
Which motivation and retention strategy adopts by Intercontinental
Hotel of Groups to enhance productivity of the employees in the right
direction? Frequency Percentage
Training and development 15 30
Job sharing 8 16
Flexible working hours 10 20
Hike in wages rate 12 24
Job rotation 5 10
Total 50 100
Findings and interpretation: The above gather data table has related to the motivation
and retention strategy adopts by Intercontinental Hotel of Groups to enhance productivity of the
employees in the right direction. From the collected information, it has determined by the
researcher that 30% respondents of the research have selected training and development as
motivation and retention strategy of the cited company. In this context, 24% responders have
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voted in the favour of hike in wages rate and has considered as an effective motivation and
retention tactic of hotel management. On the other hand, 20% has chosen job sharing as
motivation and retention strategy adopts by Intercontinental Hotel of Groups to enhance
productivity of the employees in the right direction. Hence, it can be summarized from the above
discussion that Training and development and hike in wages rate are motivation and retention
strategy adopts by Intercontinental Hotel of Groups to enhance productivity of the employees in
the right direction.
Theme 15: Giving rewards to recognize the work and provide growth opportunities to
employees are two major types of internal motivational strategies follows by Intercontinental
Hotel of Groups to motivate and retain the employees for long time.
As per your experience, which type of internal motivational
strategies follows by Intercontinental Hotel of Groups to
motivate and retain the employees for long time? Frequency Percentage
Promotion 10 20
Giving rewards by reorganization of work 18 36
Provide growth opportunities 12 24
Improving inter-personal relationship between employee and
employer 10 20
Findings and interpretation: From the above table, the researcher wants to determine the
major internal motivational strategies that followed by Intercontinental Hotel of Groups to
motivate and retain the employees for long time. On the basis of collected primary information,
it has analysed that 36% respondents have chosen reward strategy in which company is giving
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different types of rewards to its employees in order to recognize their work. On the other hand,
24% respondents have considered providing growth opportunities as an internal motivational
tactics that is recently following by the cited firm. While, 20% have stated that promotion is one
of the internal motivational strategies of company to motivate and retain employees for the long
time within the workplace. Therefore, from the above assessment, it can be concluded that giving
rewards to recognize the work and provide growth opportunities to employees are two major
types of internal motivational strategies follows by Intercontinental Hotel of Groups to motivate
and retain the employees for long time.
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CHAPTER 5: CONCLUSION AND RECOMMENDATION
Conclusion
As per the detailed analysis of both primary and secondary tools, it can be stated that
reward system is one of most critical aspect. It has been noticed that reward system impacts the
overall working in diverse manner so it is significant for every business firm to have improved
focus on reward policy. Along with this, key standards in regard reward policy also need to be
developed so that goals and objectives can be accomplished in desired manner. In addition to
this, it can be said that motivation and improved level of performance in the hospitality sector is
significant because it allows to have sustainable development. Literature review section of the
present investigation is to provide a descriptive learning about the subject. In the analysis of
report, it has been noticed that reward system assist in remain competitive so that goals and
objectives can be accomplished in desired manner. In addition to this, it has been identified that
basically reward refers to give something in return which can be either monetary or non-
monetary. Management of companies find the need of retaining employees which can be
possible only with the help of appropriate reward and motivation scheme.
For this purpose, appropriate strategies are followed in order to increase motivation level
of personnel. However, reward system is linked to performance of employees as when a person
get reward for better performance then automatically positive changes can be observed in his or
her performance. For this purpose effective reward system, are implemented which make it
possible to retain personnel and increase their efficiency Moreover, hotel sector must shed light
upon employees performance for retaining buyers as satisfied as well as motivated employees
tend to ensure well being and competitive edge of the business in the marketplace. It proves to be
effective for accomplishing long as well as short term objectives of hotels.
Along with this, primary information collected in the investigation process indicates that
reward system is one is the most essential element that can bring improvement in productivity
and efficiency of employees of organization. In addition to this, it can be said that few of
respondents has stated their favour in respect effective communication. It means the reward
system and effective communication both impacts the morale of individual which is beneficial
for improvement in overall performance. Reward system directly results in enhancing the
motivation level and morale of workers and this result in improving the overall performance of a
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company. Business also needs to focus upon the fact that the implemented system is fair and
transparent. Sometimes the use of reward system results in creating dissatisfaction among
workers and deserving candidates are not being recognized and appreciated for their efforts.
Partiality and discrimination among workers during the process of performance appraisal and
providing rewards directly affects the performance of workers. It can be expressed that offering
various types of monetary and non monetary rewards to employees encourages them to give their
best towards the success and growth of a business enterprise. Loyalty of staff members towards
organization increases and they complete their assigned task in more productive manner on
assigned time. In addition to this, secondary information collection indicates that reward
management system requires cost and time of the enterprise and due to it overall financial
performance of the business gets affected. Reward management system play a crucial role in
motivating employees and inspiring them for completing their assigned work in more advanced
and efficient manner. However, competition is also increases among staff members and inner
grievance created which ultimately proves harmful for the organization. The most significant
role plays by reward system is in reducing the employee turn over rate in the organization and
retaining staff members.
Along with this, the Intercontinental hotel also focused towards effective application of
reward system so that employees can have better opportunities. Primary information reflects that
most of the employees' percept that overall performance of Intercontinental is advanced due to
application of effective reward system. It has also been noticed that Intercontinental Hotel of
Groups of Hotel impose more unique and effective reward systems on the basis of work
performance of personnel than it will increase productivity. In addition to this, it can be said that
employee retention issues of Intercontinental hotel of groups have advanced because of poor
reward structure. Improper consideration of standards has impacted overall outcome and created
an issue for business firm. It has also influenced the level of morale and satisfaction among
members which has direct impact on the overall outcome.
Analysis of primary and secondary collection reflects that overall recruitment cost and
training expenses are saved and due to that overall investment cost of the enterprise gets reduced.
Organizing recruitment and selection process in the organization is costly process and it is
financial burden on the enterprise. If staff members will be dissatisfied with the organization
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they will frequently leave the job in search of better employment opportunities. It enhances
employee turnover rate in the company and lack of talented and suitable candidates raised in the
enterprise. Need is created for hiring talented and skilled personal in the corporation and for that
it is required that recruitment process should be organized. Various kinds of expenses are linked
with recruitment and selection process and there is need for giving advertisements in
newspapers, radio and television for attracting talented candidates to apply for the job positions.
In addition to this, it can be said that improvement in recruitment standards and other facilities is
considered as non-financial reward. It also has great impact on the overall outcome which might
improve the development opportunities. It is also beneficial to have effective accomplishment of
key goals and objectives. Along with this, by having a continuous improvement in the wage rate
the overall issue can be overcome effectively. It is also beneficial to provide a strength to the
reward policies. Improved focus on the voluntary benefits is also one of critical aspect which
improves the motivation. By having an effective application of diverse standards in respect to the
voluntary values is also beneficial to have effective development of organisation. It is because it
makes employees feel valuable which is significant for long term development.
It has also been noticed from the research analysis process that employee's performance
is defined as skills, talent, competency used by a worker for completing their assigned task in
successful manner. It has been noticed that positive efforts given by staff members aids in
accomplishing desired objectives of corporation in effectual and successful manner. Reward
management system is explained as procedure of making policies and strategies for appreciating
and recognizing good work performed by manpower of the organization. Reward system
involves cost and financial revenues of business and due to that profitability of enterprise
reduces. It is assertive that fair and transparent process should be used for giving rewards to staff
members. No discrimination and favouritism needs to be given to any employee while giving
rewards. Along with this, it has been noticed that healthy competition is developed in enterprises
and all the staff members works in positive manner for gaining rewards.
Study reflection also indicates that sometimes grievances and conflicts occur at work
place if fair and transparent procedures are not used while rewarding performance of employees.
Motivation level of employees enhances when their performance of workers is duly recognized.
Bonuses, salary increment, gifts, promotions and monetary incentives' comes in the category of
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extrinsic reward system. On the other hand intrinsic reward system includes recognition, trust
and empowerment shown towards the staff members. Both the systems supports in appreciating
the positive work done by the employees of the organization. Staff turnover rate is reduces when
employees are retained in the organization. Overall performance of the enterprise improves by
making enhancements in effectiveness and productivity of workers. According to analysis report,
application of reward system allows organization to attract, motivate and retain employees. It is
vital that an effective pay system should be implemented in the organization so that appropriate
incentives should be given to workers on the basis of task performed by them. On a critical note
has described that rewards management is a time consuming and cost taking process.
In addition to this, staff members gets motivated towards work when effective reward
management system is adopted in the organization. Dedication and interest of employees
increases towards the significant improvements in their performance level is observed.
Moreover, effective reward system is completely based on performance and if transparency is
not used it reduces efficiency of overall reward management system. Desired goals and profits of
organization can be achieved by involving positive and effective contribution of employees.
Reward management is effective motivational practice that aids in enhancing morale of staff
members. Performance of employees improves and their efforts are duly recognized when they
are appreciated for good work done by them. If reward management system of the enterprise will
be good than it supports in avoiding cost for recruiting new employees. An effective reward
system aids in developing feeling of ownership and accountability among employees and long
term and short term objectives of the enterprise can be achieved. On the other hand has described
that team rewards can also be implemented in the organization for enhancing team support and
group working in the enterprise. It also supports in minimizing grievances and dissatisfaction
level of employees as contribution given by them is duly recognized. More improvements can be
observed in the skills and knowledge of employees when they are given opportunities for
working on more higher job positions. Reward management is effective motivational practice
that aids in enhancing morale of staff members. Performance of employees improves and their
efforts are duly recognized when they are appreciated for good work done by them. If reward
management system of the enterprise will be good than it supports in avoiding cost for recruiting
new employees.
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Recommendation
In order to improve the effectiveness of reward system, it is significant for management
of Intercontinental to provide a training and development program need to be organised so that
goals and objectives can be accomplished. In addition to this, it can be said that training and
development program allows to increase the skills and morale of employees which also provide
improvement in the services. Along with this, engagement with the employees is also one of
critical aspect which need to be considered so that changes in reward policies can be taken into
account. For effective development of reward policy the monetary allowances and other
activities like voluntary benefits standards can be improved effectively. It allows to improve the
morale and overall performance so that goals and objectives can be accomplished effectively.
Financial benefits ratio can also be advanced in critical manner for sustainable development. In
terms of implementing non-monetary rewards, hotel should praise and recognize their staff. It is
one of the important factors which satisfy the inner needs of the employees that organization
values their employees. With an assistance of this, overall outcome of reward system can be
advanced in critical manner. Offering a vacation for family is also a section of reward system
which allows to meet goals and objectives.
In order to have better understanding about the subject, researcher can carry further
studies so that goals and objectives can be accomplished in desired manner. Research on
evaluating the employee satisfaction is also beneficial for the Intercontinental hotel because it
allows to understand the key aspects which are essential for employee satisfaction. On the basis
of outcome the changes in reward policy can be taken into account. Along with this, the study on
the human resource management is also significant because it allows to improve the overall
outcome. With an assistance of this, hotel can understand key values that HR need to consider
for improvement in reward system. It helps business firm to attain better opportunities in the
market and lead business towards impressive level of success.
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APPENDIX:QUESTIONNAIRE
Name: ____________
1. Gender:
Male
Female
2. Age:
Under 25 year
25 to 35 year
35 to 45 year
More than 45 years
3. At which position in Intercontinental Hotel of Groups, you are currently working?
HR Executives
Managers
Front line staff
4. According to you, which one is the most essential element that can bring improvement in
productivity and efficiency of employees of organization?
Motivation
Clear goals and mission
Team member supports
Effective communication
Rewards system
5. Intercontinental Hotel of Groups have adopted effective reward systems for the employees.
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
6. If Intercontinental Hotel of Groups of Hotel impose more unique and effective reward systems
on the basis of work performance of personnel than it will increase productivity of them?
Yes
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No
Can’t say
7. Employee retention issues of Intercontinental Hotel of Groups have increased because of poor
reward structure, low wages rate and other additional benefits.
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
8. Monetary factors that affect reward systems as they are playing significant roles in personnel
motivation and their retention.
Variables
(Monetary)
Strongly
Disagree (1)
Disagree (2) Neutral (3) Agree (4) Strongly
Agree (5)
Incentives/
Group
Incentives
Voluntary
benefits
Rewards
Bonus
9. Which non-monetary factors that affect reward systems as they are playing significant roles in
personnel motivation and their retention.
Variables
(Monetary)
Strongly
Disagree (1)
Disagree (2) Neutral (3) Agree (4) Strongly
Agree (5)
Recognition and
awards
Health &
Welfare benefits
Free Lunch or
Dinner services
in organization
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Promotion
Fringe benefits
Motivational factors
10. By considering your past experience and expectations, please state your opinion by marking
tick at the checkbox in given below detail representation of statement score.
Job Satisfaction Strongly
Disagree
(1)
Disagree
(2)
Neutra
l (3)
Agre
e (4)
Strongly
Agree (5)
All in all, I am satisfied with my job
Perception of Management on Career
Development
Strongly
Disagree
(1)
Disagree
(2)
Neutra
l (3)
Agre
e (4)
Strongly
Agree (5)
I can notice a clear relationship between
job performance and reward systems of
Intercontinental Hotel of Groups
Retention factors
11. By considering your past experience and expectations, please state your opinion by marking
tick at the checkbox in given below detail representation of statement score.
Loyalty Strongly
Disagree
(1)
Disagree
(2)
Neutra
l (3)
Agre
e (4)
Strongly
Agree (5)
My values and beliefs are similar with
Intercontinental Hotel of Groups values
and beliefs
Turnover intent Strongly
Disagree
(1)
Disagree
(2)
Neutra
l (3)
Agre
e (4)
Strongly
Agree (5)
I am actively/passively looking for another
job outside of Intercontinental Hotel of
Groups
12. Which motivation and retention strategy adopts by Intercontinental Hotel of Groups to
enhance productivity of the employees in the right direction?
Training and development
Job sharing
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Flexible working hours
Hike in wages rate
Job rotation
13. As per your experience, which type of internal motivational strategies follows by
Intercontinental Hotel of Groups to motivate and retain the employees for long time?
Promotion
Giving rewards by reorganization of work
Provide growth opportunities
Improving inter-personal relationship between employee and employer
14. Please suggest your important opinions to make the existing reward systems of
Intercontinental Hotel of Groups more effective and improve to motivate the employees.
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