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

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