Impact of Rewards and Recognition on Starbucks Employee Motivation: A Literature Review

This literature review analyzes the impact of rewards and recognition on employee motivation at Starbucks. It examines different motivation theories and approaches, explores the relationship between rewards and job satisfaction, and identifies challenges and recommendations for using rewards to motivate employees.

Impact of rewards and
recognition Starbucks employee
motivation: A Literature Review

Acknowledgement
I would like to take this opportunity to thank all those people who have been a great
help in completing the dissertation. These people had led me and helped me to know
my hidden potential and strength and utilize it in the best possible way in the
undertaken research. I would like to express my deep gratitude towards supervisor
for his constant monitoring and commendable and exemplary guidance, which has
led me to complete the dissertation in the due course of time.
The guidance and unconditional support provided by him not only helped me a lot
during the thesis completion but also will remain with me for a longer time period on
the journey of my life. I would like to express my deep gratitude to all the participants
who lend their valuable input to develop an understanding about impact of training
and development on the job satisfaction of the government sector employees of the
Sultanate of Oman Furthermore, I would like to thank my family and friends,
especially my dear mother and wife, who have been a constant source of Inspiration,
encouragement and support, and who they did not give up of supplication to me of
success, without which this task cannot be accomplished.

Abstract
The research paper helps in analysing the different methods which is required as to
investigate and analyse the usage of the current reward system of the Starbucks
organization and the effect of the same on motivating the different employees
working in the organization. With the help of the literature review, the different kinds
of elements of motivating the employees have been analysed which provided a brief
overview on understanding the different kinds of theories related to motivation which
can be helpful in managing the overall aspect of motivating employees and
increasing their morale.
The empirical data which has been collected helped in analysing that there is strong
correlation between the rewards and recognition and the employee motivation which
are interrelated with one another and it will be beneficial for the overall success of
the firm. The data was received with the help of proper correlation and regression
analysis which can be helpful in comparing the different reward systems which can
be used at Starbucks as to motivate the employees and improve their productivity.
Lastly, the research helps in supporting the fact that the development of the
functional reward system will be helpful in increasing the employee satisfaction and
motivation in organization.

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................5
1.1 Background of the research................................................................................5
1.2 Research problem...............................................................................................7
1.3 Research aim and objective...............................................................................7
1.4 Research question..............................................................................................8
1.5 Research hypothesis..........................................................................................8
1.6 Research Rationale............................................................................................8
1.7 Summary.............................................................................................................8
CHAPTER 2: LITERATURE REVIEW........................................................................10
2.1 Meaning of Motivation.......................................................................................10
2.2 Overview and Definition of Rewards and Recognition.....................................10
2.3 Linkage Between Rewards and Motivation......................................................11
2.3 Types of Rewards.............................................................................................12
2.4 Recognition of Employees................................................................................13
2.5 Job Satisfaction.................................................................................................14
2.5.1 Dimensions on Job Satisfaction.....................................................................15
2.6 Importance of Hygiene and Motivational Factors.............................................17
2.6 Link Between Rewards Strategies and Theories of Motivation........................18
2.8 Impact of rewards and recognition programs on Starbucks employee
motivation................................................................................................................19

2.9 Conceptual Framework.....................................................................................20
Chapter 3- Methodology.............................................................................................21
3.1 Research Philosophy........................................................................................21
3.2 Research Approach..........................................................................................22
3.3 Research Design..............................................................................................22
3.4 Data Collection and Analysis............................................................................23
3.5 Reliability and Validity.......................................................................................24
3.6 Ethical Considerations......................................................................................24
Chapter 4- Findings and Analysis..............................................................................25
Quantitative Analysis..................................................................................................25
Hypothesis..............................................................................................................26
The data for the research........................................................................................26
Correlation Analysis................................................................................................28
Regression Analysis...............................................................................................28
Summary.................................................................................................................33
Findings......................................................................................................................33
Chapter 5- Conclusion and Recommendation...........................................................35
Conclusion..............................................................................................................35
Recommendations..................................................................................................36
References.................................................................................................................38

CHAPTER 1: INTRODUCTION
1.1 Background of the research
As the manpower constitute the core elements of the different businesses and
the employees are the major focus of the human resource management with the
different changes which are occurring in the entire world in regards with regards to
the technology along with innovation. The different business organizations try to
operate in the environment which is rarely stable in their approach. To gain a
competitive advantage in the market, the various businesses need to use the non -
imitable assets which are termed as human resources (Victor and Hoole 2017).
Furthermore, to harness the best from the different employees working in the
company, organizations need to analyze the different techniques of rewards and
recognition through which they can be motivated. Although the concept of rewards
and recognition aspect is common, however, it is involved in the approach because
the work environment is complex and it consists of the heterogeneous individuals
(Zareen, Razzaq and Mujtaba 2015).
Additionally, the different employees have a variety of needs along with
differing perceptions of the overall constitution of the rewards and recognition for
creating compelling and motivated workplace. For the respective reason, to motivate
the different employees and increase the aspects related to job satisfaction, there
should be an in-depth analysis of the individual differences along with the different
perceptions which are required for the incentives and rewards which is the
combination of both extrinsic and intrinsic motivational rewards. In addition,
motivated employees have required in the rapidly changing workplaces and markets

which will assist organizations in surviving by performing the job and work which is
necessary for gaining profitability in the organization.
The rewards and recognition play an important type of role in motivating the
different employees along with improving their performance. The appropriate and
designed reward system can help enhance the effectiveness of the organization
along with productivity. In the present scenario, the complex system of rewards is
required to meet the different demands of the workforce which is diverse and the
companies are trying to focus on the compensation package for the different
employees as well. Additionally, the companies are trying to develop the complex
recognition related programs which mainly focused on the non-monetary rewards for
the various employees which is inclusive of the rewards such as the employee of the
month and lunch with CEO programs. Furthermore, Victor and Hoole (2017), have
commented that compensation helps in rewarding the individuals for performing the
different organizational activities through incentives, benefits and pay. There can be
an introduction of both intrinsic and extrinsic rewards wherein Vaioleti (2016), has
hypothesized that intrinsic rewards include the praise for the overall completion of
the project and meeting of the different performance related objectives in the
organization.
On the other hand, Taylor, Bogdan and DeVault (2014), have opined that
extrinsic rewards are the ones which are tangible and it can be in both monetary and
non-monetary forms. As commented by Tampu (2015), the tangible type of
compensation can be both direct and indirect wherein in the direct forms, the
employer tries to exchange the monetary rewards for the work which have been
performed by them. On the other hand, Smith (2015), has opined that indirect
compensation is given to all the employees as the result of the organizational

membership. Smith, Joubert and Karodia (2015), have defined that well-defined
motivation is the kind of force which pushes the employees in performing the tasks
through proper inspiration and there can be the inclusion of both monetary and non-
monetary rewards.
1.2 Research problem
From the different annual reports of Starbucks, it has been identified that the
morale of the staffs working at Starbucks is considerably low and it has decreased
the overall productivity of the organization negatively. Hence, the main aspect in the
research is to identify the different techniques to improve the morale of the
employees working at Starbucks. It has been noticed that there is a lack of
motivation provided to employees which are required to be addressed in the
respective research paper.
1.3 Research aim and objective
The primary main aim of the research is to analyse the relationship between
rewards and recognition and the effect of the same on the performance of the
employees working at Starbucks. The study will further analyse the different
motivation theories along with approaches which will be commonly utilized and in
order to achieve the aims, the different objectives are as follows:
 To analyse the reasons for motivating employees in the organization
 To examine the overall impact of the impact of rewards and recognition
programs on Starbucks employee motivation
 To assess the relationship between the rewards and recognition and job
satisfaction among employees

 To identify the different challenges which can be affecting rewards and
recognition provided to employees
 To recommend the manner in which the rewards can be utilized as a tool to
motivate employees and increase productivity
1.4 Research question
The research questions which are required to be analysed in the respective
research paper are as follows:
 What is the impact of the rewards and recognition on the performance of
employees in the organization?
1.5 Research hypothesis
Based on the different objectives, the following hypothesis was proposed
which are as follows:
H1- Rewards and Recognition can create a huge impact on the performance of
employees
H0- Rewards and Recognition cannot create an impact on the performance of
employees
1.6 Research Rationale
After the overall analysis of the research study, the main aim and purpose of
the paper are to analyse the overall influence of the rewards and recognition on
employee performance. The primary purpose of the article is to identify the
application of the different awards such as both monetary and non-monetary rewards
on motivating employees which can be both positive or negative.

1.7 Summary
From the overall analysis of the topic, it can be identified that the awards and
recognition play a vital role in improving the overall morale of employees and it will
increase the overall productivity of the organization Starbucks. The research
questions have been identified which will assist in understanding the overall positive
along with negative approaches of the motivation on the performance of employees.
From the research hypothesis, it has been recognized that there can be the inclusion
of null and alternate hypothesis which can create a significant impact on the
performance of employees and it can affect the overall performance of the
organization in both positive or negative manner as well in the future.

CHAPTER 2: LITERATURE REVIEW
2.1 Meaning of Motivation
There are various contemporary authors who have described the meaning of
motivation. As commented by Silverman (2017), motivation is the psychological
process which provides the purpose of the behaviour along with direction. It is
described as the internal drive to satisfy the different unsatisfied needs. Furthermore,
as commented by Quinlan et al. (2019), motivation is the process which starts with
the psychological deficiency that requires to activate the behaviour or the drive
wherein the major aim is at the goal or incentive.
2.2 Overview and Definition of Rewards and Recognition
As organizations compete for required talents and human capitals, the
practice related to reward which is being adopted by different organizations which
are inclusive of public, private, profit-making and charitable organizations. As argued
by Singh (2016), in the era of downsizing, both rewards and recognition play a
pivotal role in boosting the morale of employees and it helps in creating goodwill
between managers and employees.
As opined by Silverman (2017), rewards are defined as all forms of financial
returns, tangible services along with benefits which will be received by employees as
part of the employment relationship. different employers in the organization expect
different employees to deliver the assigned duties, on the other hand, the employees

expect to receive proper wages and remuneration for the different tasks which are
being performed by them after they dutifully perform the different tasks which are
expected out of them.
As commented by Quinlan et al. (2019), the rewards are the aspects which
are received in return of the service or hardship in the organizations. Some of the
theorists have commented that compensation is one kind of reward wherein it is
awarded to the individuals for performing the different organizational related work
through proper pay and incentives along with benefits as well.
As argued by Posey, Roberts and Lowry (2015), motivated employees are
required in the rapidly changing workplaces as they provide positive results. In order
to become effective, the managers require to analyze what motivates them within the
context of the work which is being performed by them. Furthermore, Muñoz-Pascual
and Galende (2017), have opined that the awards provide visible means of the
promoting quality efforts along with telling the different employees that the
organizations value their efforts.
2.3 Linkage Between Rewards and Motivation
As commented by Moodley and Hove (2018), it has been noticed that
individuals work in the organization for wages and salary which are termed as the
rewards. Additionally, as opined by Quinlan et al. (2019), the reward is treated as the
benefit which is received by the employees for performing the tasks. It is defined as
the positive stimulus or the incentive which can be helpful in representing in the
process of the reinforced behavior. According to Malik, Butt and Choi (2015), the
workers in the present scenario expect more than an hourly wage or salary from the
employers, they want to receive additional considerations which will be helpful in

enriching their lives. These respective considerations in the setting of the
employment are known as employee benefits. The benefits are the different
programs an employer utilizes as to supplement the cash related compensation
which will be received by the employees.
Furthermore, as argued by Klopotan, Buntak and Drožđek (2016), the
rewards may or may not be able to enhance the overall financial well-being of the
employees. If they can perform, they can do the same through wages or salaries in a
direct manner or indirectly. There can be inclusion of the various pension schemes,
paid vacations, paid sick leaves along with purchase discounts which are attractive
as to honor the individual’s efforts which are being performed by them in the
organization.
Moreover, McCusker and Gunaydin (2015), have opined that the rewards,
recognition along with incentives are the major factors which impact employee
motivation. Moreover, Malik, Butt and Choi (2015), have opined that employees are
well-motivated help in serving as the competitive advantage for the organization as
their performance will be leading to the accomplishment of the goals in the
organization and it will lead to success in the organization. In comparison to the
financial, human resources and economic aspects, human resources are vital which
will be providing a competitive advantage as compared to the others.
2.3 Types of Rewards
As opined by Klopotan, Buntak and Drožđek (2016), the rewards are termed
as the extrinsic and intrinsic rewards which are equally essential for providing the
same to the employees in the organization. As posited by Kiruja and Mukuru (2018),
the external rewards are described as the host of the outward aspects which can be

provided by the managers to the employees as it may serve as the incentives for the
employees which will increase their overall productivity. The different external
motivational aspects are inclusive of nurturing the culture of the organization, money,
various benefits such as flexible schedule at the office along with improving the job
responsibilities can be essential for improving the overall status of the work
performed by employees.
The tangible financial rewards can be direct or indirect wherein as commented
by Quinlan et al. (2019), the tangible rewards are directly paid to the employees such
as in the form of wages, salaries, commissions, bonuses and stock options which
are made available to them. Additionally, it has been noticed that the direct financial
rewards consist of variable and the base pay wherein as hypothesized by Israilidis et
al. (2015), the base pay is the amount which is received by the different employees
in the form of wages and salaries, and both the external and internal factors
influence it. On the other hand, Ibrar and Khan (2015), have commented that the
former includes the labour market conditions along with influence from the
government. Whilst the latter comprises of the different factors which are inclusive of
job evaluation, individual agreements, collective bargaining among the employees
along with representatives. These are the various rewards which are based on the
time wherein the employees worked, and it constitutes the different bases on which
the higher officials directly compensate the overall majority of the different
employees.
2.4 Recognition of Employees
As commented by Ibrahim and Brobbey (2015), the employees working in the
organization do not only prefer the various benefits and pay; however, they expect

that the efforts are being valued, treated and appreciated in a fair manner. As opined
by Hoole and Hotz (2016), recognition is the informal, formal and timely
acknowledgement of the behaviour of the team or persons which helps in supporting
the goals along with values of the organization appropriately. On the other hand,
Humphries (2017), has hypothesized that recognition helps in representing reward
which will be primarily experienced at a symbolic level; however, it can take
emotional, financial and practical value.
As argued by Haider et al. (2015), the motivation among the employees can
be provided, and the overall productivity can be enhanced through providing proper
recognition that will ultimately result in improved organizational performance. The
different programs related to credit can help demonstrate respect for the various
employees. Additionally, a thoughtful and meaningful employees program related to
appreciation is referring to the valuing the efforts of employees and having respect
for who they are and what they perform in the organization. According to Ghosh et
al. (2016), the recognition can be categorised as informal or formal, cash or noncash
along with collective or individual.
2.5 Job Satisfaction
As commented by Coccia and Igor (2018), the satisfaction of the employees is
described as the evaluative term which helps in defining the attitude of disliking or
liking the work which is being performed by the employees. Hence, as opined by
Awan and Tahir (2015), job satisfaction is the positive emotional state which helps in
resulting from evaluation of the job experience of the individuals. On the contrary,
Andreeva and Sergeeva (2016), have opined that dissatisfaction occurs when the
expectation of the different individuals from the job are dashed. As opined by Coccia

and Igor (2018), the essential factor which is required to be analyzed is identifying
the expectations of the employees from the job along with the different rewards
which will be received by them after the completion of the situation. As defined by
Andreeva and Sergeeva (2016), job satisfaction is the positive emotional state which
is the result of the work appraisal from the one’s experiences of the job.
2.5.1 Dimensions on Job Satisfaction
As commented by Alvesson and Sköldberg (2017), the most common aspects
of job satisfaction are work, promotion, benefits, recognition, conditions related to
working, coworkers, management and company. As opined by Al-Hawary and
Shdefat (2016), it has been mentioned that the different essential factors which are
conducive to the satisfaction of the employees are inclusive of the mentally
challenging work, the equitable type of rewards, working conditions are required to
be supported along with the supportive colleagues. It has been further contended
that the excellent personality-job fit is one of the contributing factors which help in job
satisfaction among the employees.
In the relation to the above-mentioned factors, it can be identified and noticed
that Singh (2016), has added the status related to job and content pertaining to post
are the major causes of the job satisfaction among employees and conversely the
structure of the organization is the probable source of dissatisfaction among
employees working in the organization. As hypothesized by Ahmad, Rizvi and
Bokhari (2017), the job satisfaction can be assessed and examined with the help of
the understanding the fit between the requirements of the organization along with the
elements which are needed by the employees as well as the fit between what the

employee is seeking and what the employee is actually receiving in the organization
after performing the different tasks in the organization.
Additionally, different authors have commented that the satisfaction of the
various employees is the overall result of the mixture of rewards and not a particular
type of compensation which will be offered to the employees. As to achieve
enhanced satisfaction among the different employees, both extrinsic and intrinsic
motivational factors are required to be considered essential as one of them cannot
substitute the other. As commented by Smith, Joubert and Karodia (2015), the
employees who are paid well in the organizations, however, the nature of the work
environment is not conducive or not recognized will leave the company as there is
lack of the intrinsic rewards and recognition. The entire case is similar to the fact that
there can be employees who are working in the exciting and enabling work
environment will leave as they can be dissatisfied with the extrinsic rewards that
reinforce Herzberg’s Two-Factor Theory.
From Herzberg's Two-Factor Theory, it can be identified that both the
motivational and hygiene factors play a crucial role in motivating the individuals in
the organization. As both extrinsic and intrinsic motivational factors play a vital role in
improving their morale to perform different tasks, and it will help achieve the
organizational goals.
On the contrary, Tampu (2015), has commented that there is only a small
percentage of the individuals who try to dispute the significance of the expected
economic value in the overall guidance of the human conduct. Furthermore, he
argues that it is not a compelling aspect to link the financial elements in society with
the satisfaction which is related to the biological requirements. The different goods

and services which are purchased with the money go beyond the ensuring of
survival. These serve as the indicator of the social status for the employees working
in the company.
Similarly, Victor and Hoole (2017), have hypothesized that money is one of
the significant aspects and is the most effective motivational strategy. The money
tries to possess significant motivating power as it helps in symbolizing the intangible
goals of the employees performing different tasks. The intangible aspects are
inclusive of security, power, feeling of success and accomplishment. Similarly, as
opined by Alshmemri, Shahwan-Akl and Maude (2017), motivational aspect of
money can be analyzed with the help of job choice process as the author feels that
the money has the power to attract, motivate and retain the different individuals
working in the organization.
On the contrary, Zareen, Razzaq and Mujtaba (2015), have opined that
different managers are working in the organization who tries to utilize the money to
punish or reward the different employees working under them in the respective
organisation. The similar aspect is done through the process of rewarding
employees for gaining higher productivity r by instilling the overall feeling of fear of
losing the job (for instance- premature retirement which is due to the poor
performance of the employees). The only desire to be promoted along with earning
enhanced pay can help motivate the employees.
2.6 Importance of Hygiene and Motivational Factors
DeShields Jr, Kara and Kaynak (2005), have commented that if the different
supervisors and colleagues, whose opinion is being valued by the employees,
recognize the various contributions of the employees by providing credit wherein

credit is required, then the employees will be satisfied and committed towards their
work performance. Furthermore, he stated that the recognition of the employees is
one of the frequently mentioned factors which cause dissatisfaction and satisfaction
among employees. Therefore, the different organizations are trying to make the
usage of the non-financial rewards increasingly which is done in the form of the
social recognition in which the employers of the organizations are utilizing the non-
monetary techniques which help in reinforcing and recognizing the desired
behaviors.
2.6 Link Between Rewards Strategies and Theories of Motivation
As commented by Shahwan-Akl and Maude (2017), it can be identified that
the major difference between the content and process theories of motivation is
inclusive of the fact that content mainly focuses on the needs of the different
individuals, however process theory focuses on the overall behavior. The bonus
system of the employees is the positive strategy and it is helpful in providing actual
motivation. Moreover, to the different monetary thoughts, the system of bonus takes
into aspect the different factors such as attendance, customer service along with
individual and organizational performance that will improve the overall quality of the
work.
There are numerous different statements made by the author in which it was
being noticed that for the various employees to be committed towards the overall
performance of the work, the recognition is essential to keep them appreciated and
motivated to improve their effectiveness in performing the different tasks
appropriately. As commented by DeShields Jr, Kara and Kaynak (2005), the rewards

and recognition programs are essential as it helps keep high spirits and enhance the
morale of employees.
It is furthermore useful to increasing relation between motivation and
performance of the employees in the organization. Hence, the primary fundamental
aim and purpose of the program related to rewards and recognition are to define the
system which will compensate employees and communicating the same which will
enable the employees in associating with the reward to their performance which will
lead ultimately leads to the job satisfaction among employees working in the
organization. The 360-degree appraisal system can be used by the Starbucks
Company which can be helpful in evaluating the performance and provide them with
feedback. The performance evaluation is one of the most appropriate aspects which
should be considered while evaluating performance of company and it will be
determining the actual performance of the job.
Alshmemri, Shahwan-Akl and Maude (2017), posits that the when the
different employees in the organizations are appreciated and recognized, it is done
in terms of identification, the working capacity along with the performance is high.
The recognition in the present scenario extremely essential as per the different
experts which is inclusive of monetary along with compensative benefits which can
never be the sole motivator for the various employees as Herzberg has postulated it
in the year 1966.
2.8 Impact of rewards and recognition programs on Starbucks employee
motivation
As commented by Alshmemri, Shahwan-Akl and Maude (2017), the
recognition program in the organizations plays a vital role in improving the morale of

the employees as the outcome which will be generated by them is significant. There
are various advantages of the rewards and recognition program which will be
improving the morale of the employees appropriately such as:
As per the Investor.starbucks.com (2019), it can be analyzed that the turnover
of the employees at Starbucks has increased in the past few years and it affected
the overall growth of the firm. In order to improve the overall scenario of the
company, it is required to increase the employee satisfaction aspects in the
organization which will play a significant role in managing the tasks appropriately.
Furthermore, with proper recognition, it will enhance the spirit in the team
which will be maintaining the strong employer brand. With the implementation of the
rewards and recognition aspect, it will be helpful in lowering the turnover of the
employees working in the organization, and it will be reducing absenteeism as well.
First and foremost, as commented by Victor and Hoole (2017), the designing of the
program is essential to extract the desired organizational outcome appropriately.
Additionally, Taylor, Bogdan and DeVault (2015), have opined that
recognition will be emerging as the active engagement among the employees
and it is the essential retention tool for the different employees working in the
organizations. On the contrary, as per the reports of the Starbucks.com (2019), the
employees motivation level has been decreasing and it affected the overall growth of
the firm. The level of the motivation of the employees plays a vital role as it will be
increasing when the employees get unexpected kind of increase in the praise,
recognition and pay. In the today’s dynamic environment, the highly demotivated
employees serve as the synergy along with competitive advantage for the overall

accomplishment of the goals of the company, business plans along with it increases
the growth and performance of the company appropriately in the future.
2.9 Conceptual Framework
The conceptual framework is the network which helps in offering the
procedure of theorization of the several variations along with contexts. It plays a vital
role in guiding the overall process of the research study and the theories are
constructed as to explain, predict and master the phenomena which is inclusive of
events, relationships and behaviors. With the help of the conceptual framework,
proper identification of the extrinsic and intrinsic rewards has been considered which
plays a significant role in the performance of the employees. Both the extrinsic and
intrinsic motivational factors play a vital role in motivating employees and improve
the overall efficiency of the employees appropriately as well.
Figure 1: Conceptual Framework

Chapter 3- Methodology
3.1 Research Philosophy
The research philosophy is defined as the aspect which assists in analyzing
the requirement of undertaking the particular type of research. It comprises of the
different kinds of beliefs which is necessary to exist regarding the nature of the data
which is required to be collected. The research philosophy which will be followed in
the respective research paper is Post Positivism approach, wherein the major aim
and purpose of the research is to adopt the mixed design which will be helpful in
gaining proper knowledge in analyzing the overall impact of the rewards and
recognition on the performance and job satisfaction of the employees working at
Starbucks (Alvesson and Sköldberg 2017).
Therefore, the post positivism approach will be comprising of both qualitative
and quantitative approaches of data which will be used in analyzing the overall
impact appropriately. There will be proper usage of different journals and literatures
which will be used as to analyze the impact which will be supporting the literature
based on the same and analyzing the current scenario at Starbucks for the
employees.
3.2 Research Approach
As discussed earlier, the post positivism approach will be followed in the
entire research paper along with deductive research approach. The deductive
approach will be entirely based on testing theory and aims that will be beginning with
the help of hypothesis and the literature and journals (Flick 2015). With the help of
the research approach, it can be identified that the research is more inclined towards
both qualitative and quantitative approach which will be gained through the annual

reports of the organization Starbucks. The annual reports play vital role in
understanding and analyzing the research paper.
3.3 Research Design
The research design is defined as the different procedures along with
techniques that will be utilized in collecting and analyzing the various measures
which are specified in the research problem. The type of study which has been
selected in the respective research study for analyzing the impact of the rewards and
recognition on the performance of employees is correlation aspect through which the
relation between the dependent and independent variables will be identified
effectively (Kumar 2019).
The method related to hypothesis will be helpful in identifying the research
problem which is relating to identifying the different motivational factors which can
create huge impact on the motivation of employees. Furthermore, there will be
inclusion of secondary data analysis in which the data which will be received from
the correlation of both the variables. The same will be analyzed through the help of
the different graphs and charts as it will make the research clear.
3.4 Data Collection and Analysis
The entire research collection process will be based on the secondary
analysis of the data which will be inclusive of mixed data collection. The data will be
comprising of both qualitative and quantitative approaches which will be helpful in
identifying the different literary sources for collecting the data appropriately.
Additionally, it will be inclusive of the correlation between the different data points
collected from the annual reports of the Starbucks Company. The secondary data
refers to the data which is collected by someone and not the user itself. The common

sources of the secondary data analysis include the information which is collected
with the help of the different government departments, organizational records along
with other data which was collected for the other research purposes (Walliman
2017).
In conducting the overall research, there will be inclusion of proper area of
investigation and the research questions will be helpful in determining the method
which the researcher will be helpful for the researcher to follow. The research
method will be consisting of the data as the secondary data analysis is the
systematic method with the procedural and evaluative steps which will be applying
the theoretical knowledge and conceptual skills which will be utilized through existing
data which will be helpful in addressing the research questions in an appropriate
manner (Kumar 2019).
Furthermore, there will be inclusion of both qualitative and quantitative
approaches of the secondary data analysis, wherein it will be involving the different
literature reviews and research papers by the eminent authors who are involved in
the respective field. The respective materials will be providing a boost to the different
information hich will be obtained from the particular collection of the data and it will
be helpful in developing arguments that shall be helpful in resolving the research
problem. On the other hand, the quantitative research which is inclusive of
correlation will be between the two variables both independent and dependent
variables that will help in understanding the impact.
3.5 Reliability and Validity
The data which will be collected for conducting the research should be reliable
sources such as ethical journals and library sources from last ten years as it will be

helpful for conducting the research appropriately (Silverman 2016). From the
following research, it will be assisting in gaining knowledge on overall views and
ensure that the success will be achieved through completion of the research
objectives which is one of the major criteria in analyzing the findings appropriately.
3.6 Ethical Considerations
The procedure of the research will be following the proper and strict guidance
of the different ethical requirements which will be ensuring that there is inclusion of
the personal space and the different aspects of collecting the data is maintained in
an appropriate manner as well. There will be collection of the data from the various
literatures and journals wherein the in-depth research is required and the data will be
collected from Coventry University Library which is the ethical source. On the other
hand, with the help of the secondary data analysis in the research paper, the
correlation should be done ethically wherein the annual reports should be taken into
consideration of Starbucks for the last ten years which will be helpful in making the
data reliable and the research can be carried out ethically without facing any
problems.
Chapter 4- Findings and Analysis
Quantitative Analysis
The quantitative analysis which has been done for the purpose of the
research has been done by making use of the secondary data and statistical tools
like Correlation and Regression have been applied in the section in order to carry out
the research analysis and to accept or reject the hypothesis (Ott and Longnecker
2015). The data for the analysis was derived from the Annual Reports of the

Starbucks organization. In order to make the research more comprehensive in
nature, data from the past 10 years was applied into the research and their results
have been analyzed. Before, proceeding with the analysis part, the key variables and
parameters which have been used in the study have been explained as follows:
- Independent variable: Rewards and recognition offered to the employees(x)
- Dependent Variable: Motivational level of the employees (y)
Rewards and recognition offered to the employees
As observed, Starbucks offers a large range of rewards and recognition
programs to the different employees as present but in monetary terms, these
recognition and rewards can be stated to be in terms of the Employee Stock Option
Plans which are provided by the firm to its employees. Hence, for the purpose of the
statistical analysis, in this case, the value of the stock plans offered has been taken
on a yearly basis as a measure for the Rewards and Recognition offered to the
employees.
Motivational Level
On some level, the motivational level of the employees is connected to the
willingness of the employees to stay at the firm and also considers the newer
additions to the firm. Hence, to carry out the calculation, the Addition to the
Starbucks family on a yearly basis has been taken as the proxy for the Motivational
level of the employees as it represents the work environment scenario and the
encouragement of the firm.

Hypothesis
H0(Null Hypothesis): Rewards and Recognition do not have an impact on the
motivation of the employees.
H1 (Alternate Hypothesis): Rewards and Recognition does have an impact on the
motivation of the employees.
The data for the research
Year Staff Rewards and Benefits (In Million
$)
Employee
addition to
the firm
taken as a
proxy for
the
Motivationa
l level of
the
employees
Number of
employees
200
7
172000
200
8
75 4000 176000
200
9
83.2 -34000 142000

201
0
113.6 -5000 137000
201
1
145.2 12000 149000
201
2
153.6 11000 160000
201
3
142.3 22000 182000
201
4
183 9000 191000
201
5
210 47000 238000
201
6
218 16000 254000
201
7
176 23000 277000
Source: (Starbucks.com 2019)
Correlation Analysis
Particulars Staff Rewards and
Benefits
Employee addition to the
firm taken as a proxy for
the Motivational level of
the employees
Staff Rewards and Benefits 1

Employee addition to the firm 0.737624535 1
The above table represents the calculation which has been done for the
analysis. This table reflects the correlation analysis between the two variables taken
to be the rewards and benefits offered to the employees and the total employee
addition to the firm over a span of 10 years. The correlation obtained between the
two variables is 0.7376 using the Data Analysis tool of Excel. Hence, it can be stated
that as per the Statistical Analysis, there exists a considerably strong and positive
relationship between the Staff Rewards and Benefits offered to the employees and
the Employee motivational levels.
Regression Analysis
The Regression Analysis was used to accept or reject the hypothesis which
had been formed in the beginning of the study, The Regression Analysis can be
stated to be an effective tool which can be used to examine the relationship between
two and more variables (Ott and Longnecker 2015). The particular analysis
examined the relationship of the independent variable on the dependent variable. In
the case of the research topic, the independent variable is the Rewards and
Recognition offered to the employees and the dependent variable which can be
taken to be the Motivational level of the employees. The results of the Regression
Analysis can be stated to be as follows:
SUMMAR
Y
OUTPUT

Regression
Statistics
Multiple R 0.7376
24535
R Square 0.5440
89955
less diff-
good fit
model
Adjusted
R Square
0.4871
012
Standard
Error
14943.
57517
Observati
ons
10
ANOVA
df SS MS F Signifi
cance
F
Regressio
n
1 213201649
0
21320164
90
9.54
732
1
0.0148
92395

Residual 8 178648351
0
22331043
8.8
Total 9 391850000
0
Coeffic
ients
Standard
Error
t Stat P-
valu
e
Lower
95%
Uppe
r
95%
Lower
95.0%
Upper
95.0%
Intercept -
36736.
07662
16001.094
35
-
2.295847
759
0.05
079
9
-
73634.
66637
162.5
131
-
73634
.7
162.5
131
X Variable
1
314.92
81727
101.92265
92
3.089873
981
0.01
489
2
79.894
09911
549.9
622
79.89
41
549.9
622
RESIDUA
L
OUTPUT
Observati
on
Predict
ed Y
Residuals Standard
Residuals

1 -
13116.
46367
17116.463
67
1.214886
739
2 -
10534.
05265
-
23465.947
35
-
1.665558
306
3 -
960.23
62042
-
4039.7637
96
-
0.286733
028
4 8991.4
94053
3008.5059
47
0.213536
747
5 11636.
8907
-
636.89070
34
-
0.045205
019
6 8078.2
02352
13921.797
65
0.988136
783
7 20895.
77898
-
11895.778
98
-
0.844334
695
8 29398.
83964
17601.160
36
1.249289
381
9 31918.
26502
-
15918.265
-
1.129841

02 388
10 18691.
28177
4308.7182
28
0.305822
788
The results have been calculated using the Regression Analysis tool. The
confidence level of 95% has been chosen for the purpose of the analysis, and shows
that X has a significant impact on Y and there exists 95% confidence in the
statement (Chambers 2017).
From the given tables, it can be largely observed that, the value of Multiple R
is 73.76% which represents a strong and positive correlation between the variables
as present.
P-Value of the X variable
In the given table it can be seen that the value of P (F significance) is less
than 0.05 so the null hypothesis can be rejected and it can be stated that Rewards
and Recognition does have an impact on the Employee motivational level. Here the
P value is 0.014892395 hence, null hypothesis is rejected and thereby X has a
significant level on Y.
Additionally, as the relationship between R2 and adjusted R2 is minimum, it can be
stated that the particular model is a good fit model for the given research analysis
and hypothesis.

Summary
Therefore, from the given Data analysis using the Statistical tools of
Correlation and Regression, it was identified that there existed a strong correlation
between the Rewards and recognition of the organization of Starbucks and that the
null hypothesis has been rejected.
Findings
The Rewards and Recognition of any organization can be stated to be the
encouragement which is provided to the different employees of the organization in
order to motivate them to perform considerably well (Silverman 2018). Any
organization which wants to ensure that the employees are able to contribute
positively to the organization, would be required to ensure that they are successfully
able to perform for the overall welfare of the firm need to see to it that, they are able
to maintain the competitive edge in the business environment. Hence, with respect to
this, the given findings have been derived from the secondary data analysis:
1. The rewards and the recognition in a firm do influence the overall productivity
of the firm (Starbucks.com 2019). This is because, according to various
Organizational and motivational theories, the employee recognition is known
to have a profound impact on the mindset of the employees and the way they
tend to cooperate with the overall procedures of the firm. Hence, any
organization which wants to ensure that their employees corporate well with
the overall objective of the firm, then they will successfully be able to succeed.
In the case of the Starbucks organization, the company takes up various
initiatives to ensure that it is able to contribute soundly to the overall
development of the employees and that in return they provide a better delivery

to the different customers (Starbucks.com 2019). Additionally, they offer the
employee a stock option plan to ensure that they are able to succeed in the
long run and unite with the firm.
60 80 100 120 140 160 180 200 220 240
-50000
0
50000
100000
Rewards and Recogniti on Line
Fit Plot
Y Predicted Y
X Variable 1
Y
The given figure represents the Rewards and Recognition Line Fit Plot.
2. In addition to this, the annual reports of the organization , reflected that, the
number of employee associations with Starbucks have been increasingly
considerably and hence, it can be stated that this reflects that the overall
internal operations of the organization is very organized and Starbucks can be
stated to have a culture which is motivating and engaging.
3. When the data was analyzed, it could be understood that, the increase in the
amount of shares issued to the employees can be stated to be directly related
to the increase in the employee addition to the firm and the decrease in the
turnover rate of the firm (Starbucks.com 2019). There existed a strong
relationship between the two variables it reflected that, in order to improve
upon the overall welfare of the firm and to ensure that the employees perform
well, any organization would be required to improve the overall operations and
provide greater incentives to the different employees.

4. Additionally, the annual reports of the firm also reflected a relationship
between the profits of the firm and the rewards and benefits. As the stock
option provided to the employees increased considerably, it bought about an
increase in the sales and revenue of the firm as well which showed that there
existed a link between the two aspects as well, however, for the study, the
variables directly related to the employee motivation have been used.
Chapter 5- Conclusion and Recommendation
Conclusion
From the overall research, it can be concluded that the main purpose of the
research was relating to the investigation which is required to be done on tailoring
the needs of rewards and recognition for the staffs of Starbucks. The entire study
observed that there is a positive relationship between the reward and the work
motivation among the employees which has been proved to be helpful in managing
the different aspects related to motivation appropriately.
Both intrinsic and extrinsic motivational factors play a major role in motivating
the staffs which will creating different opportunities for the different employees in
showcasing the different talents which will be beneficial for the overall success of the
firm. From the research, it has been noticed that there is a strong correlation
between the rewards and recognition and the level of motivation among the
different employees working in the organization. On the other hand, the regression
aspect has been performed wherein alternative hypothesis has been utilized and
accepted and the rewards along with recognition does create a huge impact on the
motivation of the employees.

It is the main reason for which the proxy of the different employee’s addition to
the form was taken. There were different challenges which were faced by the
organization while motivating the employees in the organization such as there were
lack of rewards and recognition program previously and it led to decrease in the
overall productivity of the organization negatively. Employee Motivation is one of the
crucial elements which plays a major role in the overall development of the company
along with the success of the company as well. Due to the strong correlation
between the two variables, it can be identified that employee motivation is one of the
major aspects which should be kept in mind as to improve the overall productivity of
the firm and gain success for the company as well.
Recommendations
Therefore, from the above research, it can be recommended that there are
different aspects which are required to be followed by the company Starbucks as to
improve the overall morale of the employees and gain competitive advantage in the
competitive business environment as well. As it has been seen from the data
analysis, there are different aspects which has led to the turnover among the
employees during last few years at Starbucks which has affected the overall
productivity of the firm. Therefore, it can be recommended to Starbucks that:
Firstly, Starbucks needs to mainly focus on the happiness of the employees
as it is the key aspect to improve the overall morale of the employees. Starbucks
needs to create an employee friendly environment as the perks and incentives are
the secondary aspects for motivating the individuals. The needs and wants of the
employees are required to be considered as the motivating employees is the primary
aspect which is required to be tested. The author suggests that the organization
needs to include the different employees in the process of decision-making as it will

make them feel that they are important for the business process and development of
the rewards as well.
Furthermore, the opportunity is required to be provided to the employees by
frequently giving rewards to the employees on the reward systems. Additionally,
there can be inclusion of collaboration between the employees in the organization
which will be beneficial in motivating the employees effectively. After the creation of
the collaborative culture, it is essential that it will be helpful in reaping the different
benefits for the team and collaboration is helpful in creating a sense of purpose and
it helps in the team motivation as well. With the help of the same, it is helpful in
solidifying the team and making the individuals work more effectively together.
Moreover, there is a creation of transparency between the different parts of the
organization which will be helpful in working effectively.
Therefore, these are the various tools which help in streamlining the work and
it helps the team members in feeling more effective in performing the tasks. By
keeping the different team members in a communicating and collaborating team, it
will be helpful in making the different employees working under the same roof and
build a tighter and more motivated team in the future.
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