Impact of Rewards System on Employee Performance in Delivery Industry

This dissertation focuses on the impact of reward system on employee performance in the delivery industry. The study aims to understand the concept of reward system, analyze its impact on employee performance, and determine the challenges in managing the reward system to improve employee performance and organizational productivity. The literature review highlights the positive and negative impacts of reward systems on employees and organizations. The research methodology used is qualitative, and primary and secondary data are collected to achieve the research objectives. The study concludes that an effective reward system can motivate employees, enhance organizational performance, and retain talented employees. However, the reward system should be designed carefully to avoid discrimination and demotivation among employees. The cultural differences in reward systems should also be considered while implementing them in a globalized business.

Dissertation

Contents
Chapter 1- Introduction....................................................................................................................4
Background of study............................................................................................................5
Problem statement................................................................................................................5
Research aims & objectives.................................................................................................5
Rationale of study.................................................................................................................6
Research Question................................................................................................................6
Research methodology.........................................................................................................6
Research structure................................................................................................................7
Chapter- 2.........................................................................................................................................7
Introduction............................................................................................................................7
To ascertain the concept of reward system.............................................................................7
To analyse the impact of reward system on employee performance......................................9
To determine the challenges in managing the reward system to improve the employee
performance and organizational productivity.......................................................................10
Conclusion............................................................................................................................12
Chapter 3- Research methodology.................................................................................................13
Chapter 4- Data analysis and discussion........................................................................................17
Theme 1: To ascertain the concept of reward system..........................................................17
Theme 2: To analyse the impact of reward system on employee performance...................19
Theme 3: To determine the challenges in managing the reward system to improve the
employee performance and organizational productivity......................................................20
Reflection.......................................................................................................................................21
CONCLUSION..............................................................................................................................23
References:.....................................................................................................................................25
Online-...........................................................................................................................................26

Chapter 1- Introduction
The reward system defines to all monetary, non-monetary payments which an
organisation provides to its employees in the exchange of the work which is performed by them.
This involves the rewards of intrinsic and extrinsic. The extrinsic rewards are the financial
payments and working conditions which is received by employees as part of job. Whereas
intrinsic rewards are related to satisfaction which is derived from actual performing of job like
personal fulfilment. The reward system helps in attaining the organisation goals through aligning
the employee goals and ensures that sufficient number of employees are recruit and retain with
right skills. The reward system is used as crucial tool as to drive business growth and boosting
staff morale. It is directly link to the effective performance and staffs are rewarded as per their
needs. It can be said that reward system helps in influencing the employee performance through
enhancement of employee’s skills, knowledge and abilities as to attain organisation objectives
(Alhassan, and Greene, 2020). The employees are feels motivated as there exist powerful
relationship between rewards & employee performance. The research report is based on
evaluating the impact of reward system which affects employee performance covering the
background of study, problem statement. Further research aim & objectives is considered with

rational of study and research methodology which researcher will use to conduct research on the
topic.
Background of study
The current study demonstrates the concept of the reward system, which must be
understood and implemented precisely. The delivery company must create a good and defined
reward system activity from which the company's employees can perform well in order to have a
positive working environment and produce an acceptable number of results and outcomes. A
reward system is a method of increasing an organization's efficiency while also monitoring
employee performance, thus keeping qualified staff and attracting fresh talent. Thus, it is evident
that an effective reward system should include both monetary and non-monetary awards and
incentives in order to meet employees' requirements and expectations of management and the
reward system (Armstrong, and Taylor, 2020). A strong combination of extrinsic and intrinsic
rewards allows the organisation to maximise employee commitment, motivation, and job
satisfaction, which in turn maximises employee performance, especially in terms of productivity.
Problem statement
Retaining a skilled and high-quality employee has been seen to be one of the most long-
term sustainable competitive advantages, but in today's business environment, it has become a
struggle for businesses. The productivity and company success depends on the employee
performance & motivation in which reward system is considered as effective management to
motivate employees particular to low performers. The employees will feel demotivated when
there will be no recognition of the employee hard work it will affect performance negatively
(Chaudhary, 2020). The problem can be seen as not well design of reward system without
consulting with employees which is not capable to satisfy employees needs and expectations. To
overcome this problem the research is been conducted in order to determine reward system &
employee performance.
Research aims & objectives
Research aim
“To understand the effect of reward system which puts the effect on employee performance”.
Research objectives
 To ascertain the concept of reward system

 To analyse the impact of reward system on employee performance
 To determine the challenges in managing the reward system to improve the employee
performance and organizational productivity
Rationale of study
The purpose of this study is to comprehend the concept and role of the reward system,
which has a significant impact on employee performance while also providing an effective
outcome for the firm. This research study was carried out in order to provide a beneficial
opportunity to the business sector in which they can easily comprehend the relevance of the
reward system and may implement it effectively at the workplace in order to deliver a specific
number of results (Pareek, Mohanty, and Mangaraj, 2019). The study helps in increasing the
knowledge and understanding of the research topic in respect to reward system for enhancing
employee performance.
Research Question
 What do you understand by reward system?
 Why reward system is significant for employee performance?
 What are the challenges the organization faces to provide effective reward system
management to improve the employee performance?
Research methodology
The researcher in the current research uses several research methodologies as to conduct
the research in efficient way so that there can be collection of data & information in reliable &
accurate manner. The work of this present research is dependent on Qualitative methodology in
the aim of collecting, comparing & interpreting of information. In the research interpretivism
philosophy is used as to interpret and connect interest of human into study. With this researcher
uses inductive approach as to collect data involving observation and theories for particular patter
with help of hypothesis. The research has considered primary data which is gathered from the
source of interview, experiment etc. and secondary data is which is collected already that helps
in attaining aims & objectives of the research topic. The theoretical framework provides the in-
depth understanding of the topic and challenges according to accomplish research goal (Singh,
Bamel, and Vohra, 2020).

Research structure
 The research structure involves the following sections such as -
 Chapter1- Introduction- It is the first chapter where reader briefs its study purpose by
outlining aims & objectives.
 Chapter 2- Literature review- The theoretical framework is provided about the research
topic to have deep understanding.
 Chapter 3- Research methodology- It explains the several methodologies which is used
by researcher for collecting the information & data on research topic.
 Chapter 4- Data analysis and discussion- This covers the findings made on information
collected by the method of primary & secondary.
 Chapter 5- Conclusion & recommendations- It is final chapter which represent the
recommendation on the study as to overcome with issues.
Chapter- 2
Introduction
Literature review is the practice of overviewing those journal articles which are already
exist on internet sources. Here, researcher will analyse the objectives of study in more clear and
precise manner. The researcher can use internet sources, government sites, books and articles and
other sources of information. It is important part of a research because it provides foundation of
knowledge on topic.
To ascertain the concept of reward system
As per the Connor Garret (2022) employees reward system will help to motivate the
employees to work harder for their organisation and help their company to grow well. Here,
companies appreciate their employees by giving them gifts, monetary and non-monetary
incentives and many other form of rewards. This will help the organisation to enhance their well-
being environment where employees like to stay with organisation for longer period of time.
There are few main benefits of reward system within an organisation like it helps in peer to peer
recognition, manage performance of overall organisation, enhance social recognition and many

others (Garret, 2022). When an organisation conduct reward events then their management team
and employees team will get to know about each other and this is how they enhance their
recognition. Overall performance of organisation gets enhanced by effective reward system of
the company. For example, if a company appreciate their employees through reward system then
the employees get highly motivated and work harder to achieve their professional goals and
objectives. This will help the company to enhance organisational performance effectively. The
culture of company also gets improved through reward system because it will help to create a
strong bond between employees and they get encourage to help each other to achieve their
common goal. Organisation can also retain their talented employees through reward system by
ensuring them that their organisation respect their work and efforts and there is a good scope of
professional growth for high performers within the company. This set of belief which is gained
by reward system within organisations will help them to retain their employees.
On the other hand, according to Monica Franco Santos and Luis R. Gomez- Mejia (2015)
reward system within the work place discriminate low performing employees and they even get
demotivated and jealous with reward system. The concept of reward system is to provide
appreciation to only high performers in front of whole organisation. This can be both monetary
as well as non- monetary. While providing reward to high performers, the company only
motivate those employees who get reward from company but this will also impact bad upon
those employees who did not get reward due to their moderate of low performance. This will
even encourage non- rewarded employees to switch their organisation. Sometimes, the
employees who get reward changes their behaviour and they believe them self as superior and
better than others. Due to this they even start disrespecting others and wants to create autocratic
environment at work place where only their ideas can be heard. Hence, rewar4d system can even
damage the work culture by highlighting their high, moderate and low performers. This research
also highlight that reward system have direct impact on cost of the company (Franco-Santos and
Gomez Mejia, 2015). Managing reward events can be costly for company but the impacts of
reward like employee retention can also help company to save cost which they in-cure from
hiring new employees. Hence, this article highlight both positive as well as negative impacts of
reward system upon an organisation as well as upon the employees.

To analyse the impact of reward system on employee performance
As per the point of view of Yulia Emelianova (2019) overall organisational performance
is the sum of performances of each employee within the organisation. Hence, it is essential for
each employee of the company to work effectively and contribute their efforts and handwork in
overall organisational growth. If organisation will grow then they will also get professional
growth and other benefits (Emelianova, 2019). Rewarding employees on the basis of their
performance will help various organisations to enhance the performance of the employees who is
getting reward so that they will contribute to work better for overall organisation. Reward is the
way of motivation where employer show respect and indirectly thanks their good performers for
their good performance. The employees who did not get reward will work harder so that next
time they will also get rewards. Hence, this article analyse the positive impact of reward system
on employee performance. Reward system is beneficial for organisations because when a
company's performance is compared with another company's performance where one
organisation is having reward system and another is having no reward system then findings show
that the organisation having reward system is growing with rapid speed as compared to another
suborganisations which is not having reward system.
On the other hand, as per the opinion of Noorazem, Sabri and Nair (2021) financial
rewards are consider as better motivator for employees as compared to non- financial rewards.
According to this study, when a comparison is done to measure the performance of two different
employees within the same organisation where one employee get financial reward and another
get non- financial reward then the findings highlight that the performance of that employee who
get financial reward is higher than the employee who is getting non- financial reward (Noorazem
Sabri and Nair, 2021). Both employees perform well but the difference is seen in the speed of
performing well. Another thing which matters in reward system is the need and preference of
employees. Sometimes employees did not need financial reward but company provide him/her
financial reward for their good performance. This will not motivate employee as per the
expectation of employer. Hence, the company and the employer need to analyse the need and
perspective of employee to distribute rewards.
According to Sophy Alexander (2020) same reward system is not fit for every size of
firm, the main concept to provide reward to employees is to manage their motivation and
encourage them to perform well but sometimes reward system plays an negative role in this aim.

Some employees get demotivated that why other are gaining rewards again and again and they
did not get even at once (Alexander, 2020). On the other hand, the employees who get rewards
more than twice or thrice will also believe that without them the organisation will not survive
and they start dictatorship. Hence, this will further demotivate employees and they are forces to
leave the organisation.
According to Walters T. Ngwa (2019) at the present time when organisations are
targeting to globalize their business effectively there the another objective of companies is to
satisfy their workforce and retain them for longer period of time. Reputation of firm also matters
for the stakeholder. Hence, reputation of the firm also maintained when a organisation satisfy
their employees and value their work and efforts for the company. Reward system is one of the
most important factor to satisfy employees and helps to gain their trust (Walters, 2019). This will
further help to enhance reputation of the firm at global level. Different countries are having
different culture for reward system. Some countries are preferring to provide more financial
reward as compared to non- financial reward and some countries do opposite to it. Hence, the
companies who are globalized or who prefer to expand their business need to understand the
cultural difference in reward system and it's importance for enhancing employee's performance.
To determine the challenges in managing the reward system to improve the employee
performance and organizational productivity
As per the opinion of Mark Abdul (2017) managing effective reward system within the
companies can also have few issues and problems and these few issues are misuse of
performance management system, evaluation of personality trait, bullying the staff, bias-ness
based appraisal, lack of proper feedback, conflicts and many others (Abdul, 2017). Some
employees are not aware of how to use performance management system effectively, where few
misuse the performance management system to change the facts and figures to show that they are
performing well than other to get more rewards.
Another main issues which is noticed after reward system within the organisation is the
bullying of staff, the employees who get rewards more than once they start bullying and
disrespecting others and always highlight that they are better than others. Such kind of
employees always look for safe side for themselves and push others to face negative outcomes.
This will further damage organisational culture. Bias-ness based appraisal is another issue faced
by companies in managing reward system, here, the employer who has given the responsibility to

measure the performance of employees and decide who is best suitable to get rewards, basically
suggest those names with which they are having good relationship. Manager generally choose
their friends, family members and other individuals who are having good relationship with them
and ignores their performance. This demotivate those employees who really perform well.
Some of the employees even did not get clear idea about the vision of having a reward
system within their organisation. This will create misunderstanding between employees and
management team and further damages their relationship. Proper feedback is not taken by
employer to analyse what their employees think and feel about their reward system. This is one
of the biggest factor which is ignored by most of the organisations. They basically distribute
rewards to their good performers and expect better performance from them and others but they
lack behind to take feedback from their reward winners as well from non-reward winners that
what are their suggestions about their reward system and what they learn from reward
distribution.
As per the point of view of Emma Bjerndell and Pernilla Severin (2013) the biggest issue
for SMEs to manage their reward system is related to cost and funding. They are unable to
conduct a reward distribution event and they are unable to always provide financial reward to
their employees. On the other hand, few of the SMEs even did not able to decide that which
method they will opt for their performance measurement. The misuse of performance
management software is also seen in majority cases (Bjerndell and Severin, 2013). Lack of team
work and team support is also seen in various kinds of organisation in case of reward
management. Different perspective and suggestions are arrived by different employees of the
organisation and at the time of negotiation that which employee will get which reward then there
is the high chance of conflict within the company.
According to the Mark Feffer (2019) the issues which is faced by organisations in reward
management system is related to mistakes of the leaders to measure the performance of their
subordinates. In case the organisation is suffering from bias-ness of reward distribution system
then the leader is responsible for this because the leader suggest the names of good performers to
management team and then management team decide reward for them (Feffer, 2019). Leaders
are incapable to clear their subordinates vision for reward system within their organisation. Some
firms face the issues that their employees did not trust the process of reward system and this is
because their leaders did not make them understand the reward system effectively to them. In

case the performance evaluator is not trained well then also this will create a huge issues in
reward distribution system of an company.
Conclusion
From the above literature review it is concluded that different authors have different ideas
related to same topic. The concept of reward system is adopted by the companies to motivate and
encourage their employees to work better for effective growth of organisation. This is the way of
appreciating good performers of the company and motivate moderate and low performers that
they can also perform well to get additional benefit from their organisation. The above
information also concluded that there are both positive as well as negative impacts of reward
system on employee's performance. Few of the employees may get negative experience that why
they are unable to get rewards like others and this impacts negative upon their performance. It is
also concluded that there are various kinds of issues while managing the reward system of
companies like cost, inefficiency of leaders, bias-ness in appraisal, wrong method of reward
system chosen and many others.

Chapter 3- Research methodology
It is defined as set of the systematic techniques used in the research. It simply means
guide how to research is conducted (Sileyew, 2019). Research methodology describe & analyse
methods, throw more light on their resources ad limitation, clarify their pre-suppositions &
consequences, associated their potentialities to twilight zone at frontiers of knowledge. Research
methodology include the methods & techniques utilized to effectively portray a research. Such
procedures improve research process & make methods of the research clearer to
everyone. Therefore, in context of this research, different methods and techniques of research
methodology are mentioned below:
Research philosophy- It refers to a belief regarding the way in which information and data
about any phenomenon should be collected, examined and used (Campbell, 2018). this
framework guide the investigators about how research should be conducted on the basis of ideas
abut nature of knowledge and reality. Positivism and interpretivism are two main types of the
research philosophy. These two philosophies depict two fundamentally different ways which
individuals make sense of research: Positivism research directs the quantitative & objective study
using quantitative data. interpretivism research analyse a phenomenon utilising qualitative data
for a better understanding. In context of this research, interpretivism research philosophy has
been used as according to investigator, there may me various interpretation of reality.
research approach- it is defined as a procedure and plan which consist of steps of broad
assumption to detailed methods of the data collection. It include the way of reasoning which is
exploited by the investigator with the purpose to address different issues or difficulties in
conducting a research. There are primary two research approach used in the research- inductive
& approach. Inductive approach is considered as theory-building as it is utilized when
conducting basic research. Whereas, deductive approach is defined as theory-testing which is
undertaken in the applied research. It is same as explanatory research which mainly focuses on
understanding cause-&-effect, or relationship between the variables using the quantitative
research. The Qualitative research is mainly based on the inductive approach used in the
exploratory & descriptive research. Therefore, in this research, investigator has used the
Inductive approach as it allow a flexibility the investigator. Another main reason to choose this

approach is that it help in predicting that what could happen in future and in establishing
possibility of what researcher will encounter. At last it also facilitate individual to have a
comprehensive understanding of the concept, improve complete thinking skill and aid internalise
concept of the evidence & substantive concept to solve the problems.
Research strategy- The research strategy must enable the investigator to answer all the set
research question & meet objectives of specific study. It is how an investigator intends for
carrying out the work. There are different number of the approaches in research strategy such as
action research, experimental, surveys, case study research and many more. The research
strategies, provide various guidelines related to the instruments of the data aggregation and way
to gather the information using such instruments (Tayebi Abolhasani, 2019) In context of this
research, investigator has decided to adopt the systematically literature review strategy as it help
in identifying, selecting & critically appraises the research to answer the clearly formulated
questions. It follows a defined protocol in which criteria is clearly stated before reviews are
conducted. Along with this, it also provides overview of the literature related to the research
question & synthesizes the previous work to strengthen a specific topic's foundation of
knowledge, when adhering to concept of the bias reduction and transparency.
Research choice- It helps the researcher in determining success & overall quality of the
conducted research & its documentation (Fryer, Larson-Hall and Stewart, 2018). Moreover,
becoming familiar with research choice used by any are of study allow the investigator to
understand it in more effective way. As there are three kind of the research choice including
mono (used when using qualitative or quantitive single research), mixed (used when both
qualitative and quantitive research has been conduced), and multi mixed methods. Therefore, in
this researcher has decide to choose the mono method as this research is a qualitative research.
Another reason of using the mono methods is that in this qualitative research, data is the term
denoting the data based on meaning that are expressed through language and words. It has been
anaysed that an accurate choice of the research methodology aid in determining success &
overall quality of investigator research and its documentation.
Time horizons- It is time framework in which the research is intended for completion. Two
kinds of the time horizons have been identified within research onion: cross sectional & the
longitudinal. In cross sectional the time horizon is one already established, in which data must
be gathered. It is dubbed 'snapshot' time collection, in which data or information’s are gathered at

specific certain point. It is utilized when research is concerned with study of the particular
phenomenon at a peculiar time. Whereas longitudinal time horizon for the data collection refers
to collection of the data repeatedly over the extended period, and it is utilized where a significant
component for any research is analysing change over time. In relation to this research, cords
sectional is most effective time horizon as it consumes a minimum time period. Another reason
to choose this time horizon is that it enables the investigator to compare different variable at
same time.
Data collection- It is referring to the methods by using which, researcher collect data. There
mainly two types of data collection methods have been identified- primary method of data
collection and secondary methods of data collection. Primary methods are mainly based on the
first handed data or collection of the fresh data that are gathered by the researcher from its source
of origin (Gioia, 2021). Whereas, in secondary data, investigator collect those data which are
already available somewhere. Source of secondary data mainly include the internet, articles,
book and other agencies. In context of this research, researcher has used both the primary and
secondary data. In primary method, investigator collect the data through conducting
questionnaire and collect the secondary data through books, magazine, journals and articles.
Primary data will be helpful for the investigator as it provides most reliable and trustworthy data
that gave an accurate information about a subject. Whereas, secondary data is economical in
nature as it saves expenses and efforts. It also helps in making the primary data collection very
specific. Along with it enable the researcher to figure out deficiencies and gaps and what
additional informed they need to collect.
Data analysis approach
It has been identified that there are two qualitative & quantitative data analysis
techniques which can be exploited on the basis of philosophy, objective, & strategy of conducted
research. For instance, quantitative data are analysed by using the descriptive correlation,
statistics, and regression (Iovino and Tsitsianis, 2020). The frequency distribution tables are
ordinarily utilized with the purpose to analyse categorical variables. It has been identified that
regression analysis are used by the researchers with the motive to examine impact of the change
in independent variables on dependent variable. As respective research is based on the qualitative

data, therefore these data are analysed by using the thematic analysis. This analysis requires a
transcribing interviews & identifying keywords or patterns to generate codes.
Research design
It is referring to a description of how procedure of a research will be completed. This
framework includes such consideration which led to accurate methodology being used, way in
which participant were chosen and data will be examined. Research methodology is considered
as a path that help the researchers in conducting their research. This shows a path through which
investigator formulate their issues & objective & present their outcome from the data acquired
during study period. In context of this research case study has been considered a most an
effective research design. Case study include an analysis of the small data set that may lead the
investigator to gain few insights regarding trend in specific areas. As this report is based on a
case study therefore it helps in establishing a relationship between context, phenomena and
people. Along with this, it also allows the in depth and multi-faceted exploration of the complex
issues during research. It will provide an in depth knowledge and a clear understanding about
specific research.
Ethical consideration
The Ethical consideration is defined as collection of the values & principles that must be
followed by researcher when conducting a research (Patkar, 2018). Ethical considerations ensure
that researchers cannot act in such a way which is harmful to the society and an individual. This
refrains organisation and individuals from indulging in the vicious conduct. The Ethical
considerations has an essential role, especially when conducting a research. Whole efforts of the
investigators of research get wasted if they miss any ethical considerations. Following are
ethical issues which need be considered when performing a research study.
First & most basic ethical issue which may arise during research is invalidity of the research
questions. Any research is conducted in order to answer a specific research question. Research
conclusion should match with prepared research question asked in beginning (Leone, and
Schiavone, 2019). Failure to match the research questions with research conclusion will be
considered as a violation of the ethical consideration.

 Another most significant ethical considerations are confidentiality of collected
information provided by different respondent. Privacy is defined as any information
associated with respondent or provided by respondent can’t be made available and
accessed by any person other than researcher under no circumstances. These collected
information is only utilized to protect respondent from any outside threat. Furthermore,
confidentiality ensures that respondent’ identifying information or data is not mentioned
in research reports and other published documents. Respondent are ever referred to as
unidentified in research reports.
 It is very crucial to keep the respondent's anonymity in study process. respondents should
not be known to researcher. Investigator should not be aware of respondent’s names &
also should refer to respondent by the “subject number” name. Respondent’ anonymity is
considered as difficult to follow because mostly participants are known to the investigator
(Harjoto, Laksmana, and Yang, 2018). Thus, during conducting this research, investigator
has taken into account all the above mentions points.
Chapter 4- Data analysis and discussion
Theme 1: To ascertain the concept of reward system
It has analysed that the reward system is necessary within the company. it has clear
relation with the employee performance within the organisation. This shows that, there is
requirement of reward system which is the key factor of motivation. Reward system is all about
inspiring the employee to work more dedicatedly in order to promote better working. The
concept of reward system is all about creating better personalities within the company that will
be beneficial for its productivity (Goka, and Shigeno, 2018). Reward system is basically design
by the HR managers of company by conducting meetings with senior managers and board of
directors. It will create certain impact of the employee’s behaviour and attitude towards working.
The reward system showcase that employees must get what they deserve. The more they get
admired and appreciated, the more their interest would be raise towards working in the company.
Rewarding is a kind of motivation that enhance the power of doing work effectively. It is
effectively the more better creation of the concepts and enhance the role of employee behaviour.
Rewarding is a necessary strategy which helps in seeking attention of employees towards
workplace. The rewards could be in any terms such as money, bonus, goodies, appreciation

letter, promotions and gifts. It does not only impact on the rewarding person but others also get
motivated for future performance. In the modern period where organisation facing a lot of
trouble in finding the right talent for the company. There are much skills gap and job
dissatisfaction faced by the employees as well as the organisation. In such case, rewarding
system is generated healthy environment for the company. The HR manger creates policies and
terms and conditions regarding giving rewards and appreciation. It would lead to create an equal
opportunity for the employees as they will not face any discrimination. Hence, reward system is
ae key for the company to promote better workplace and get maximum attention. most of the
time, company facing uncertainties and unexpected crises which give rise to challenges. In these
situation, employee’s engagement and their attitude towards work matter a lot. They more they
will give their best efforts, the more they will get the benefits in return. This assure the reward
system in the company which enhance the motivation and lead to manage the employee’s
retention and confidence for the sake of company profitability and productivity. Also, there is
requirement of key issues that needs to be solve such as office politics, undignified behaviour,
favouritism and miss use of power (Henkel, Heck, and Göretz, 2018). The rewards are meant to
be given as per the person capabilities and abilities so that they would maintain the same skills
and behaviour on the right track. It gives them confidence to achieve more success and get
desirable benefits from the company. It has created better working abilities to promote creativity,
innovation and bring rarity in the organisation. There are two types of rewards identified through
the data collected which are extrinsic and intrinsic. Extrinsic rewards are all about financial
payments which receives in terms of cash or credit. Whereas as intrinsic payments are those
which receives as a part of working in the company and gets satisfaction of job security,
achievement of personal goals which satisfy the inner self of an individual. hence, it gets
rewarded as per the capabilities of the organisational functioning which gets align with the goals.
There are any objectives of the reward system such as employee’s retention, recruitment,
training, motivation. Also, it defines the theoretical practices as well to comply with the legal
regulations as per the UK act. Apart from this, it has analysed from the data conducted through
secondary sources that rewards schemes are of various types which includes base pay,
performance related pay (Prashanth, and Veena, 2022). Base pay scheme reflects the nominal
and usual amount of salary an employee receives for working 8 hours in a day. It is a basic salary
but when the employees giving their extra hours and working overtime, extra pay is granted

which is termed as rewards. Whereas, as per performance related pay where all the payment
made as per the employee’s performance whether individually or in team. Nowadays, the pay
related to performance is mainly in use to motivate the employees to work harder. They will get
that maximum amount for which they have put allot of hard work and efforts in achieving
organisational goals. Every company has its own performance related schemes which either
includes rewards as per the unit of outcome or any bonuses pre agreed by the managers. For that
instance, rewarding is being a part of organisational success which leads to create better planning
and process. Hence, rewards are crucial to create necessary impact on employee performance as
well. Therefore, it ascertains the tasks and activities related to analysing the creation of
organisational objective.
Theme 2: To analyse the impact of reward system on employee performance
Reward system is mainly utilising for creating positive impact on the workplace of
organisation. Rewarding makes an individual more dedicated and enthusiastic in terms of work
and accomplish their roles and responsibilities (Hwang, and Shin, 2019). It impacts on the
overall performance of the employees that leads to promote personalities, individual behaviours
and skills. An organisation always seeks for skilful and competitive employees who can keep the
business positions on the top industry firms. So that, their motivation and dedication is important
for keeping them retain and working hard. This could be done through giving rewards that would
make sure to appreciate individual for what they have contributed in the company. There are
responsibilities to take care about the rewarding system which enhance the key concepts of
engaging employee performance. this shows that the reward system leads to create better
practices on employee abilities (Doojav, and Losol, 2020). Reward is something in return that is
given for accomplishment or good work. It is creating a good impact on employee’s performance
in motivating them which contributes towards the attainment of organisation growth. Rewards
are of two types like extrinsic and intrinsic reward like monetary values, job security, training
and development, relationship with colleagues and rewarding policies. There are the following
points which shows the impact of rewards on employee’s performance-
 It helps in motivating the employees which increase the productivity level.
 It helps in increasing the performance level of employees.
 Rewards leads development of employee’s skills, abilities, knowledge and work
opportunities.

 A good reward enables firms to maximise their objectives by creating the job satisfaction,
employee’s motivation which directly increase the performance of the organisation.
 It helps in maintaining the employee’s commitment, productivity and correlation to an
organisation.
 Rewards decrease the chances of employee’s termination from the organisation and helps
in maintaining the good relation between subordinates and superiors.
 It provides competitive advantage in the market because success depends on employee’s
performance and rewards leads employees to perform in an effective and efficient
manner.
 It helps in creating healthy working environment in the organisation which leads in
smooth working of the organisation (Somoye, and Eyupoglu, 2020).
 Monetary and non-monetary rewards help to boost confidence and performance level of
employees and leads effective growth of the organisation.
 Rewards helps the employees in fulfilling their needs and wants.
 It helps in attracting more and more employees towards the working of the organisation it
leads in new and innovative ideas.
 Increase the employee’s participation towards the organisation working which
automatically have impact on the profitability of the business.
 It allows coordination and proper communication chain between superiors and
subordinates.
Theme 3: To determine the challenges in managing the reward system to improve the employee
performance and organizational productivity
Managing the reward system is an effective process for thee employees to improve their
performance and organisational productivity. There are various challenges that come across with
organisation that needs to be focused properly in order to achieve organisational productivity. A
business has a pool of human workforce who belongs to different backgrounds, culture and
creativity (benezer Aritonang, Sadalia, and Wibowo, 2018). Every individual has their different
personalities and norms which generates indifferent thoughts and ideas among them.
Organisational productivity can only be achieving through engaging with the employees and
make them work hard. So, the challenges create hurdles for the organisation. As it has analysed

that reward system helps in improving the employee performance and leads to organisational
productivity. It makes sure about the development of activities which leads to promote on the
working culture of the company. Some of the challenges which has identified in managing
reward system are bullying the employees and not taking proper feedbacks. It is mainly the
issues which is faced by the companies as different people are working together who do not want
to share their thoughts and ideas. They get indulge in office politics. When the rewards are not
created as per the organisation objective it will result in suffering with organisational
productivity. It impacts on the workplace productivity which leads to manage the key operational
behaviour of the company with managing the rewards system. When rewards are set nicely and
understandable, it will make sure that every employee is well aware about the responsibilities
and the contribution they need to make is about creating potential factors. It comes from within
the inner self that the company has to promote employee performance. All the key factors are
determined appropriately that would engage in better practices like impacting on the key
behaviours and goals (Okoli, Okoli, and Nuel-Okoli, 2020). The other challenges which is faced
by the company is not reviewed the behaviour in the labour market and ascertain employee’s
needs. This enables the effective factors which create better potential in the workplace creation.
The employees can only get the desired benefits when they get able to achieve the mission and
vision of the company. There is requirement of creating necessary benefits in accomplishing the
better behaviour. This shows that, it is better to come up with this challenges as soon as possible
and provide good motivating factors to the employees. They will get reason for working more
hard by getting what they deserve and values to be in the company. Also, the better they hold a
target, the better they will be able to take care of the deadlines and uncertainties. Therefore, there
will be accomplishment of the targeted objectives by making good management of reward
system, it will smoothen the working environment and organise the resources, team and work
towards the correct path.
Reflection
By being a part of this research, I have come across with many experience in terms of using
various strategies, approaches and methods. My journey was meaningful and amazing which
leads me towards the path of success. I got a lot of hurdles while conducting the research on such
topic due to having varieties of options and methods. It creates better impact on the key issues

and problems which I face during academic writing and preparing a dissertation. At initial
finding, I was not able to research on the impact of reward system through secondary sources as
there was a lot of information presented. I struggled to find the key points to prepare the report
and present it in appropriate way. It was great to know about that today’s environment is become
so dynamic which requires changes in policies and procedures of organisation. Managing reward
system was one of them which is a necessary concept for the success of company. I get to know
about various type of reward system as per the individual capabilities and knowledge. It will help
in getting motivated to work hard. I have applied this learning in my own career building and
professional development. I came across about the importance of rewards for me as it will
motivate me to improve my skills and enlarge areas of competiveness. Also, I was quite
distracted from the research topic and faced issues in writing research methodology. There are
various type of methods and strategies which is been used in conducting appropriate research. I
was so confused at first to choose the best methods for it. Therefore, I conducted a thorough
study about research methodology and was able to present it correctly. I have learnt to write my
thoughts and ideas in research findings which is a part of literature review. Hence, by learning
from different articles and journals, it was easy to collect data and make it useful for own
research. I have improved many skills through involved in preparing dissertation. These skills
are communication, time management, project management and analytical knowledge. All the
skills are helpful for my future to be on the desired job role. This will help me in attaining great
competencies to survive in the current market. Hence, I had a versatile experience to be a part of
this research. I would look forward to take more projects and analyse own strength and weak
factors for further enhancement of skills. Some of my weak factors which I have analysed from
current work is poor interaction skills and leadership abilities. I was not able to interact with the
people to conduct surveys and ask questions. Du to hesitation, it becomes a drawback in my
practice for not conducting primary data. Also, leadership skills were not up to the point to guide
and lead other team members. There was a lot of confusion and inappropriate guidance at first
which resulted in less optimisation of resources like time and cost.

CONCLUSION
From the above report, it has been analysed that the impact of the rewards system helps
the employees to improve the productivity of the workplace. This is one of the main benefit
which will help the organisation to achieve success in the market. Most of the organisation in
today's' world use various techniques to help the Internet the reward system which is beneficial
for them in every manner. The reward system results in the intrinsic motivation which could help
to attain the personal growth. The employee reward system can also enhance the skills and
capabilities of the individual. On the other hand, the key findings of this project helps to
understand about the true concept of the reward system which is beneficial for the organisation
in every manner. The main motive of reward system is to establish the positive behaviour with
the employees. There are various advantages which includes that the company is able to retain
the employees in a strategic manner. The organisation can retain the skilled employees which
will help them to gain the necessary targets in the market and the form can capitalise in various
opportunities. Along with that, the main motive of this project is to understand various types of
rewards system which is been implemented in the workplace in order to boost the morale of the
employees. The reward system includes promotion methods and other monetary benefits and
health and safety needs of the individual. There are various ways through which the organisation
can use the right strategies to attain the desired goals in the market. For further instance, the
impact of reward system will fasten up the process and leads to the firm’s higher production over
a period of time.
Recommendations
 It has been recommended that in order to improve the reward system the organisation
needs to regularly check the stages in which they are lacking. They can conduct the
surveys and take help of the feedback system to understand about the employee’s
perspective. This will help the firm to improve various areas in an effective manner and
the organisation can also provide certain benefits to the employees.
 It has been also recommended that the organisation needs to provide the health and safety
benefits which is mandatary. The government has also abided multiple rules and
regulations which needs to be followed by every organisation which is present in the
market.

 It has been also recommended that the impact of the reward system is quite positive on
the employees. The organisation needs to improve their structure and become more
flexible in order to provide certain benefits to the employees which will help the
organisation to function in a better way. With the enhance productivity the organisation is
also able to provide better products and services to the customers in the market. The
management needs to adopt to the right strategy in order to achieve the growth in the
market.

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