Effectiveness of Reward System- Intercontinental Hotel

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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