Employee Performance and Reward Management Practices

This assignment delves into the world of employee performance and reward management practices, focusing on their perceived influence in retaining Generation Y employees at G4S Kenya Limited. It examines how different research studies have approached this topic, from the integration of competence and performance management to the effect of reward systems on employee motivation and performance. The assignment also touches upon the importance of accountability and performance in higher education, as well as the role of total quality management and effort-reward imbalance. By synthesizing these concepts, it aims to provide a comprehensive understanding of how employee reward systems can be optimized for better performance.

MANAGING PEOPLE

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Meaning of reward schemes........................................................................................................1
Objective and nature of reward system.......................................................................................1
Aligning the goals of organization and employees.....................................................................1
Risk preferences of managers and employees............................................................................2
Complying with the legal regulation and ethics..........................................................................2
Types of reward scheme..............................................................................................................2
Issues related to performance related payment system ..............................................................3
Motivational theories..................................................................................................................4
Advantage and disadvantage of performance related pay...........................................................5
Link between reward system and motivation..............................................................................7
Alternative ways of motivating employees.................................................................................8
CONCLUSION................................................................................................................................8
RECOMMENDATION...................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Motivated and loyal employees are backbone of the organization. Reward management is
the tool that aim to appreciate highly skilled workers those who can perform well. For
encouraging them company acknowledge their work in the form of reward. In the current
assignment Asda is being taken into account which is considered as multinational supermarket
retailer. Present study will critically review the effectiveness of reward management.
MAIN BODY
Meaning of reward schemes
According to Budhwar and Debrah, (2013) reward management is the company's HR
practice which is generally used to reward its valuable employees so that better success can be
attained in terms of motivation. As per the view of MARITIM, (2014) reward management is
the technique which is generally applied by Asda in order to appreciate its employees for their
unconditional efforts which they have put in the organization (Lawson, 2000).
Objective and nature of reward system
As per the view of Omoijiade, (2014) the main objective of implementing reward
management in the Asda is to attract skilled employees and retain them in the workplace for
longer duration. Employees are considered as critical aspect for eve4ry business firm, it means
management must focus on employee’s retention so that better performance can be measured in
order to have accomplishment of organisational goals. Suwandej, (2015) argued that to make
effective control over the cost is the main objective of Asda to implement reward system in the
firm. By increasing their satisfaction level cited firm retain its talented workers in the corporation
for longer duration. According to Buttigieg, Cassar and W. Scully, (2013) reward system
discourages creative thinking and people feel dishearten in the workplace. That affects their
working efficiency as well. Employees start downplay weakness and they do not perform their
responsibility properly.
Aligning the goals of organization and employees
As per the view of Schaltegger and Burritt, (2014) reward scheme align with the
organizational goal, Asda reward management is consistent with its strategy. Asda offers high
wages to its skilled employees and encourage them to work over time so that they can get
1

incentives and other perks as well. It supports in fulfilling goal of cited firm of increasing
revenues. Employees also get attractive pay and promotional opportunities.
Risk preferences of managers and employees
Rabovsky, (2013) stated that managers have to make necessary decisions in order to meet
with the objective of organization. Managers are at high risk because if they do not make
effective judgement then they will not be able to meet with the target. Risk preferences of
manager impacts on the management practices and also affect employees as well because it will
enhance turn over of the staff members because they will think that company is not able to
provide them growth opportunities. Employees always prefer to work in the positive
environment, but if company is unable to create environment as per their requirement then they
will not perform well in the workplace that will affect overall working of the entity.
Complying with the legal regulation and ethics
According to Nazarova, Achkasova and Stepanova, (2014) government has made
employment law, equal pay legislation. These legislation ensure that no person get discriminated
and everyone in the organization gets equal rights and pay. Asda implement these legislation
properly and give incentives to its workers on the bases of their performance rather than their
race or age. Females and male both get equal chance of promotion. Asda has prepared such
atmosphere where wages and salaries are clearly based on individual's performance.
Wilson and Maume, (2013) stated that in the modern ear companies have moved from
fixed remuneration system to reward system. It is unethical because due to this power of union
gets reduced. Asda has posted in its website about the performance standards and on the bases of
these, it evaluates performance of its workers. This ethical communication supports the
organization in improving working culture of the entity. As per the view of Koike, (2013)
company provides explanation of code of ethics to its workers so that they can perform their
duties well. Managers of Asda explain about workplace ethics and policies it helps in running
their business ethically.
Types of reward scheme
Extrinsic and intrinsic rewards
Topa, Guglielmi and Depolo, (2016) argued that there are two main types of reward
scheme such as extrinsic and intrinsic rewards. Extrinsic rewards are those benefits which are
2

tangible in the nature whereas intrinsic rewards are those which are intangible in nature. It is
defined as monitory and non-monitory benefits which need to be referred properly by
organisation. Intrinsic rewards can be classified as achievement, recognition, personal growth,
team working and empowerment. On other hand extrinsic rewards are such as promotion, formal
recognition, attractive salaries, etc.
Illustration 1: Extrinsic and intrinsic rewards
Source: (Manroop, 2015)
Basic pay
According to Kaplan and Atkinson, (2015) Basic pay is the straightforward payment
scheme in which Asda provides incentives to its best workers. Categorising of those employees
can be as individuals who have contributed well in increasing profit of the organization. This
basic pay is being calculated on the basis of hourly rate, annual salary, etc.
Performance-related pay
As per the view of Schaltegger and Burritt, (2014) Asda has set its HR policies in which
they have framed some criteria to reward its best employees. Management supervise
performance of its employees. Also, on the basis of employee’s level of performance
management offer them incentives and bonuses. This reward system not only motivates the staff
members but also raised their confident too. By this way they stay in the workplace for longer
duration .
3

Issues related to performance related payment system
According to Marcketti, VanDerZanden and Leptien, (2015) performance related pay
system creates issue for the employees. It demotivate other staff members and they feel negative
towards the brand. When company gives extra benefit to any worker due to their performance
then, it develops sense of jealousy for other staff due to this they think to leave their job soon.
Watson, (2013) argued that performance related pay system hinders team spirit because people
start comparing their wages with their co-workers. By this way they think that other companies
are offering them better salary packages and they leave their job. That impacts on the Asda's
performance because it looses its skilled employees (Hansen and Mowen, 2014).
Motivational theories
As per the view of Rabovsky, (2013) Hertzberg's two factor theory is effective
motivation theory. It focuses on two major element's motivation and hygiene. These both factors
infleunce the employees and help in motivating the workers. Laudon and Laudon, (2016) argued
that Maslow's hierarchy theory helps in identifying the basic needs of human being. It includes
physiological, safety, love, esteem and self-actualisation. By knowing these basic requirements
managers can encourage their staff members to perform better.
Illustration 2: Maslow's hierarchy motivational theory
Source: ((Beattie, Alqallaf and Hardy, 2017))
Edirisooriyaa, (2014) argued that every person has different needs, some persons have
monetary and others have non-monetary requirements. Asda look upon the specific need of
4

person and accordingly it manages its employees through effective designing of frameworks. If
someone is having recognition needs then company gives such employees award in terms of
monetary and non-monetary values. It boosts their energy and encourage them to perform better
at the workplace (Van Rooy and Oehler, 2013). On other hand, if any employee has financial
needs then cited firm offer employees a benefits like incentives, cash bonuses, high salary
packages, etc. It encourages the workers and motivate them to perform better at the workplace.
This enhances satisfaction level of the workers and they become loyal workers towards brand.
Shields and McLean, (2015) stated that reward management covers two major aspects'
strategy and practices of pay system. Earlier companies paid more attention on policies but now
they are paying more focus on retaining its staff member in the workplace for longer duration.
For that they are implementing rewards management practices that helps them in fulfilling their
responsibilities towards their skilled employees.
Advantage and disadvantage of performance related pay
As per the view of Koike, (2013) performance related pay is beneficial for the Asda
because it helps in motivating the staff members and encouraging them to perform better in the
workplace. A good reward system helps in rewarding the best performer by this way people gets
motivated and they like their job and retain in the workplace for longer duration. Gray and Kish-
Gephart, (2013) argued that performance based reward system reduces pay equity that
sometimes make others negative towards the brand.
Devonish and Devonish, (2017) argued that financial sustainability is the major benefit of
reward management. Main aim of Asda is to enhance its profit and sustain in the market for
longer duration. It is only possible when skilled persons put their best efforts and utilize their
skills for the welfare of the company. In the modern business word companies are facing high
competition that creates problem for the entities. Reward management is the tool that supports
the Asda in gaining financial sustainability. By providing monitory and non monitory rewards it
encourages its staff members and retain them in the workplace for longer duration.
According to Nazarova, Achkasova and Stepanova, (2014) reward management of Asda
supports the firm in strengthen psychological contract. By offering incentives, attractive pay
scale, cash bonuses, accommodation facilities company encourages its workers and make them
loyal towards the brand. By this way they perform better and do not think to leave their job. That
5

is the reason employees of Asda is working in the organization for longer duration. As per the
view of Rabovsky, (2013) reward management of Asda is effective enough, this supports in
building team spirit among the workers and helps in minimizing conflicts in the workplace. If
people are getting satisfactory monitory and non monitory rewards then they like the workplace
environment and they coordinate effectively with others. This reduces misunderstanding and
helps in minimizing the conflicts. That is why employees of Asda are working good in the
organization (Saxsena, 2015).
On other hand Kaplan and Atkinson, (2015) argued that rewards demotivate other
employees because when people do not get appreciation as per their expectation then individual
becomes negative towards the brand. It creates conflict situation because that person creates
others negative as well.
As per the view of Shields and McLean, (2015) absenteeism is the major benefit of
reward management, it supports in managing the workforce effectively. Reward system helps in
minimizing the absenteeism of workers in the Asda. People like to get rewarded for their hard
efforts, and if they receive the same then they come to their office regularly. It helps them in
achieving their targets and by this way company become able to accomplish their goal of
increasing revenues.
As per the view of Topa, Guglielmi and Depolo, (2016) reward management is beneficial
for the employees and organization as well. Reward management is that part of management that
deals with making and implementation of policy and strategies which ensure that company is
aware of the input of his employee, and show them there appreciation trough financial and non
financial means (Bratton and Gold, 2012).
In the view of Schaltegger and Burritt, (2014) a reward management must be an efficient
and effective to reach its goal of having maximum benefit return to both the organisation and
employee. It also makes sure that reward system is fair, and people must rewarded fairly and
consistently for the achievement of organisational goal.
There are many effects of reward management with this reward, employee become more
faithful and committed towards there organisation. Its already established that happy employee
leads to better success of company, According to Nazarova, Achkasova and Stepanova, (2014)
when employee joins a company they are bounded by there organisational commitment toward
6

there company but with company effort and this reward employee become emotionally
committed to there company. Devonish and Devonish, (2017) stated that a plan is not a plan
until they have competent people to work on it. In an institute employee plays major part in the
success of that institute. This reward shows the value of its workers towards its organisation.
Link between reward system and motivation
This reward also work as motivator, this reward work in the need of employee and
motivate them to work better. When a person get recognize for his work it gave them zest to
work much better if not for recognition than definitely for the extra benefit it gets. It increases
the participation of employee and there willingness towards the work of organisation. Reward
management has behavioural tendencies which aim to motivate the employee and meet there
needs so that they can work more efficiently toward the goal of organisation.
Illustration 3: Link between reward system and motivation
Source: ( Lawson, 2000)
These reward also arose the feeling of job satisfaction in employee. Many studies are done by
Devonish and Devonish, (2017) which determine the impact of job reward on job
satisfaction. For smoother, effective and efficient working of employee job satisfaction is must.
This reward provides that satisfaction to workers. Reward does not only include only financial
but also non financial reward, giving an employee some praises and recognition work as miracle
worker (Price and Weiss, 2013).
7

Alternative ways of motivating employees
As per the view of Kaur, (2014) empowerment is the best strategy that supports in
encouraging the staff members. By giving them power of decision making Asda can enhance
motivation level of its skilled employees and can retain them in the workplace for longer
duration. Lawson, (2000) has argued that transparency is the great way that helps in motivating
the employees of the company. By developing transparency in operations managers can gain
trust of its potential workers. By this way skilled people will stay in the corporation for longer
duration. According to Omoijiade, (2014) taking feedback is the effective tool that encourages
the staff because by this way they feel involved in the operations and share their feelings with the
management effectively. It can increase positive environment in the Asda and can minimize
conflicts as well.
CONCLUSION
From the above study it can be concluded that reward management is one of the effective
tool that assist in encouraging the staff members and retaining them in the workplace for longer
duration. Maslow's hierarchy theory of motivation helps in identifying needs of workers and
fulfilling their requirements in order to motivate them. By this way company can improve their
performance level and make them loyal towards the band.
RECOMMENDATION
Recommendation for managing the people well in the cited firm are as following:
 Asda should takes feedback from its staff members, it will support in identifying their
basic needs. That will support the organization in giving them reward as per their
requirements. By this way employees will perform better and will stay in the workplace
for longer duration.
 Asda should evaluate performance of its workers effectively and accordingly it should
provide them rewards. This will bring positive energy and will help in improving the
working environment of the entity. Cited firm should make effective code of practices
and should disclose these performance standards on its website. It will make people
aware with the criteria of getting incentives. Thus, they will put their best efforts to meet
with this standard.
8

9

REFERENCES
Books and Journals
Beattie, S., Alqallaf, A. and Hardy, L., (2017). The effects of punishment and reward
sensitivities on mental toughness and performance in swimming.International Journal of
Sport Psychology. 48(3). pp.246-261.
Bratton, J. and Gold, J., (2012). Human resource management: theory and practice. Palgrave
Macmillan.
Budhwar, P.S. and Debrah, Y.A., (2013). Human resource management in developing countries.
Routledge.
Buttigieg, S., Cassar, V. and W. Scully, J., (2013). From words to action: visibility of
management in supporting interdisciplinary team working in an acute rehabilitative
geriatric hospital. Journal of health organization and management. 27(5). pp.618-645.
Devonish, D. and Devonish, D., (2017). Gender, effort-reward imbalance at work, and burnout:
Findings from a developing Caribbean country. Gender in Management: An International
Journal. 32(6). pp.441-452.
Edirisooriyaa, W.A., (2014), February. Impact of Rewards on Employee Performance: With
Special Reference to ElectriCo. In Proceedings of the 3rd International Conference on
Management and Economics (Vol. 26, p. 27).
Gray, B. and Kish-Gephart, J.J., (2013). Encountering social class differences at work: How
“class work” perpetuates inequality. Academy of Management Review. 38(4). pp.670-699.
Hansen, D. and Mowen, M., (2014). Cornerstones of cost management. Nelson Education.
Kaplan, R. S. and Atkinson, A. A., (2015). Advanced management accounting. PHI Learning.
Kaur, J., (2014). Impact of reward prioritization at various life stages on psychological well-
being in E-commerce sector. International Journal of Managment, IT and
Engineering. 4(3). pp.90-106.
Koike, O., (2013). Institutionalizing performance management in Asia: looking East or
West?. International Journal of Public Sector Management. 26(5). pp.347-360.
10

Laudon, K.C. and Laudon, J.P., (2016). Management information system. Pearson Education
India.
Lawson, P. (2000), „Performance Related Pay‟, in Thorpe, R. and Homan, G. (eds), Strategic
Reward Systems, London, Prentice Hall.
Manroop, L., (2015). Human resource systems and competitive advantage: An ethical climate
perspective. Business Ethics: A European Review. 24(2). pp.186-204.
Marcketti, S., VanDerZanden, A.M. and Leptien, J.R., (2015). SoTL champions: Leveraging
their lessons learned. International Journal for the Scholarship of Teaching and
Learning. 9(1). pp.4.
MARITIM, E., (2014). The perceived influence of reward management practices in the retention
of generation Y employees at G4S Kenya Limited.Nairobi, Kenya.
Nazarova, G.V., Achkasova, O.V. and Stepanova, E.R., (2014). TOP
MANAGERS'MONETARY REWARD: AN APPROACH BASED ON INTEGRATION
OF COMPETENCE AND PERFORMANCE MANAGEMENT.Aktual'ni Problemy
Ekonomiky= Actual Problems in Economics. (161). pp.255.
Omoijiade, P.O., (2014). A Critical Assessment of Credit Management in the Nigeria banking
sector. European Journal of Business and Management, 6, p.30.
Price, M.S. and Weiss, M.R., (2013). Relationships among coach leadership, peer leadership,
and adolescent athletes’ psychosocial and team outcomes: A test of transformational
leadership theory. Journal of applied sport psychology. 25(2). pp.265-279.
Rabovsky, T. M., (2013). Accountability and performance in higher education: Promise,
potential, and pitfalls of performance management. The University of Oklahoma.
Saxsena, M.P.S., (2015). Effect Of Reward Management On Employee Performance In
Corporate Sector-A Review. Global Journal of Multidisciplinary Studies. 4(6).
Schaltegger, S. and Burritt, R., (2014). Measuring and managing sustainability performance of
supply chains: Review and sustainability supply chain management framework. Supply
Chain Management: An International Journal. 19(3). pp.232-241.
11

Shields, J. and McLean, P., (2015). 17 Achieving alignment: system review, change and
development. Managing Employee Performance & Reward: Concepts, Practices,
Strategies. pp.368.
Suwandej, N., (2015). Factors influencing Total Quality Management.Procedia-Social and
Behavioral Sciences. 197. pp.2215-2222.
Topa, G., Guglielmi, D. and Depolo, M., (2016). Effort–reward imbalance and organisational
injustice among aged nurses: a moderated mediation model.Journal of nursing
management. 24(6). pp.834-842.
Van Rooy, D.L. and Oehler, K., (2013). The evolution of employee opinion surveys: The voice
of employees as a strategic business management tool.
Watson, T., (2013). Management, organisation and employment strategy: new directions in
theory and practice. Routledge.
Wilson, G. and Maume, D., (2013). Men's race-based mobility into management: Analyses at the
blue collar and white collar job levels.Research in Social Stratification and Mobility. 33.
pp.1-12.
12