The Impact of Reward System on Employee Performance

The provided document appears to be an assignment related to HR management, specifically focusing on the effect of reward systems on employee motivation and performance. The questionnaire includes questions about the role of rewards, motivation, and performance goals, indicating that the assignment is likely related to a study or research project examining the impact of reward systems on employee behavior and organizational effectiveness.

Project – The Impact of Reward System on
Staff Performance: A Case Study of Tesco

Table of Contents
CHAPTER 1 – INTRODUCTION............................................................................................... 1
Background of the study .................................................................................................... 1
Research purpose................................................................................................................ 2
Structure of chapters........................................................................................................... 2
CHAPTER 2 - LITERATURE REVIEW..................................................................................... 4
Concept of reward system and employee performance........................................................4
Importance of rewards system............................................................................................. 5
Types of reward system...................................................................................................... 5
Relationship between reward system and employee performance.......................................6
CHAPTER 3 - RESEARCH METHODOLOGY.........................................................................9
CHAPTER 4 – DATA ANALYSIS........................................................................................... 12
Themes of Questionnaire.................................................................................................. 14
CHAPTER 5 – DISCUSSION, RECOMMENDATIONS AND CONCLUSION.........................1
Discussion .......................................................................................................................... 1
Recommendations ............................................................................................................ 13
Conclusion ....................................................................................................................... 15
Evaluation ........................................................................................................................ 15
REFERENCES.......................................................................................................................... 17
APPENDIX 1 ............................................................................................................................. 1

CHAPTER 1 – INTRODUCTION
TITLE - “The Impact of Reward System on Staff Performance: A Case Study of Tesco
Background of the study
Paying employees for their work and productivity has been the main cornerstone of
business and industrial development for many years. In order to manage employee's
performance, financial rewards have always played an important role. But since last few years,
other components of compensation have developed in order to provide employers with more
scope of rewards and therefore, encourage employees. Performance can be defined as behaviour
that completes outcomes or results. Performance management affects the performance by
assisting individuals to determine what is meant by good performance and by offering the
information required to improve it. Reward management affects performance by rewarding and
recognizing good performance as well as by providing incentives to enhance the same.
Main purpose of this research study is to identify impact of various rewards on
employee’s performance and analyzing the effectiveness of current reward system, in
organization in raising employee’s performance. Rewards that the organizations apply to both
teams and individual performance are critical in understanding effectiveness of the company's
rewards strategy. Rewards and their purposes can be described as programs, systems and
practices that affect the actions of individuals. The employees working in an organization get
motivated by various kinds of rewards offered to them within a company. These rewards may
play a vital role in motivating or encouraging employees to improve their performance and
productivity. In this context, researcher selected Tesco, a leading supermarket chain in the UK.
The study will analyze impact of reward system on staff performance within Tesco along with a
brief discussion of how this system affects the overall functioning of company.
Rewards and performance are highly linked with each other as rewards support in
improving the performance of employees. High performance helps employees to earn different
rewards such as incentives, appraisals, etc. Therefore, Tesco highly focuses on offering unique
and innovative rewards to their employees for boosting their performance. Tesco is a British
multinational groceries and general merchandiser retail company with headquarters in
Hertfordshire, UK. Tesco is continuously expanding its market share and profit all over world
with the help of strong and motivated employees. Researcher will use various tools and
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techniques for identifying various types of reward systems and their impact on employee's
performance in Tesco.
Research purpose
Aim - “To examine the Impact of Reward System on Staff Performance: A Case Study of
Tesco”
Research Objectives:1. To identify the meaning of reward system2. To examine how TESCO measures or evaluates staff performance3. To determine the relationship between performance and rewards system in Tesco
Research questions
1. What is rewards system?
2. How TESCO measures or evaluates the staff performance?
3. What is the relationship between employee’s performance and rewards?
Significance and Rationale
Reward system is an essential approach used by each and every organization or business
in order to motivate the employees working in company. In order to understand this important
concept or approach, this topic is selected. The research study will assist in understanding
different types and areas of effective reward system. Researcher needs to develop a good
knowledge and understanding of rewards and its impact on performance of employees working
in the organization. There is huge information provided on internet related to this particular
subject and it was also a reason for selecting the topic.
Structure of chapters
Remembering the major aim or objective to complete project, researcher requires
developing an organized structure. A well designed structure helps in applying different tools,
concepts and approaches in order to identify the most appropriate results or outcomes from
research study. The research report is divided into various chapters as mentioned below -
Chapter 1 – Introduction
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This chapter of the report includes outline significance of rewards system in Tesco. The
researcher can give a summary about entire project and the topic of the research study. This part
also includes aim and objectives of the research study.
Chapter 2: Literature review
This is another key section that provides the detailed perception and finding out about
examination subject. In this section, a couple of subjects can made by the objectives of research
topic.
Chapter 3: Research Methodology
With assistance of this section, researcher can connect a couple of methods for obtaining
the most ideal plan and effective results of topic. In the present research study, researcher will
apply quantitative method for collecting required information.
Chapter 4: Data Analysis
In this part, researcher will identify and analyse the information with regard to the
objective to present results in such a way so as the analysis can be done without a lot of
complexions. With the help of this section, researcher will interpret information with relevant
data.
Chapter 5: Discussion, Conclusions, Recommendations and Critical evaluation
This is another part that assists in completing the research study. It is a last bit of the
paper in which researcher can collect the research study and give important proposal related to
the subject.
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CHAPTER 2 - LITERATURE REVIEW
This another important part of research project, literature review will provide various
studies by different authors on the topic of this project. There will be various themes included in
this chapter such as concept of reward system and employee’s performance, importance of
reward system, types of reward systems, etc. In the following section of literature review, the
researcher has integrated findings of various major research studies identical to the nature of
current research for attaining important information with regard to the major elements of
research study. Additional information or data was collected from various research papers,
scholarly articles, journals and reference books which are determining different methods for
rewarding the employees in order to improve their performance.
Concept of reward system and employee performance
Reward is an element that represents anything that the employees may value and that an
employee offers in exchange of his or her work and contribution in an organisation. The lack of
rewards in an organisation give rise to an unpleasant working environment which demotivate the
employees and also affect their performance negatively. This also influences employees to leave
their jobs or switch their employers for better opportunities. According to Adam and Epel
(2017), the reward system is used by both public and private sector to retain and motivate
employees. Main objective of this system is to retain skilled and experienced employees along
with attracting new talent for the organisation.
Nowadays, employees are not only attracted or motivated by financial rewards, they also
demand recognition, self-esteem and growth in terms of position. Therefore, rewards system was
introduced in order to support business human resource strategy. It supports the management to
avoid employee dissatisfaction and develop motivation among them to improve their
performance. Author states that the major impact of rewards is the increase in productivity of a
business due to the fact that employees are major strengths of each and every organization or
business. Therefore, highly motivated and dedicated employees play an important role in
increasing the profit of a firm and supports it to achieve organizational goals and objectives
(Ahmad and et.al, 2018).
Furthermore, it is observed that there is a strong relationship in between employee
performance and reward system in an organisation, author. Employees who are rewarded or
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appreciated for their contribution or work in a company also develop a healthy relationship with
the organisation. This relationship helps in retaining employees as well as attracting new
employees in company. An organisation such as Tesco can develop a strong workforce with the
help of this increased retention level. Hence, every organization can use an attractive reward
system in order to improve effectiveness, performance and profitability of the business.
Importance of rewards system
According to Adam, every company needs a strategic reward system for its employees
which cover the facets like 'Compensation', 'Benefits', 'Recognition' and 'Appreciation'. This
results in an effective reward system. Whereas, Cole stated that “When employees feel that their
efforts are appreciated, they feel motivated intrinsically and their passion towards work and
organisation grows.” On the other hand, Chen and et.al, (2017) said the organisation that
constantly provides rewards and recognise the efforts of its employees observe a very low
employee turnover ratio. Punjaisri and Wilson (2017) mentions whereas if a company consider
its employees robots and not humans and extracts everything out of them this would result in
very high employee turnover ratio. Dahlmann, Branicki and Brammer (2017) states in order to
increase performance of employees and to arise healthy competition amongst them, rewards
should be provided. The components of employee reward management in an organisation or
business the things which are use by the business in order to attract skilled employees in their
businesses. These elements include bonuses, salary, benefits, incentive pay and employee growth
or development opportunities. Rewards and performance are highly connected with each other as
rewards aid in rising the performance of employees. High performance assist employees to gain
various rewards such as incentives, appraisals, promotions etc. Therefore, Tesco highly focuses
on offering unique and innovative rewards to their employees for boosting their performance.
Tesco is a British multinational groceries and general merchandiser retail company with
headquarters in Hertfordshire, UK. Tesco is continuously growing its market share and profit all
around the world with the assistance of powerful and actuated employees. Researcher will use
different tools and methods for determining several sorts of reward systems and their effect on
employee's performance in Tesco. There are various importance of reward system in an
organisation, some main essential significance of an effective reward system in an organisation
or busniess are as described below -
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 Mutually helpful - A reward framework is gainful to the worker as well as to the
association. The representative will feel more propelled to work harder by having a
reward framework set up the worker will feel more dedicated to their work and their
efficiency will increment. An expansion in profitability will then profit the association.
In this way a reward framework is commonly useful to the representative and the
association.
 Motivation - A reward framework will rouse workers by achieving targets and
authoritative objectives in return for rewards. A reward framework is awesome at
spurring representatives yet they will likewise be propelled to substantiate themselves to
the association.
 Absenteeism - A reward framework will lessen non-appearance in the association.
Representatives like being compensated for an occupation well done and if there is a
reward framework set up, representatives will be less inclined to ring in wiped out and
not appearing for work. Additionally, by having a reward framework set up the workers
will be clearer about the objectives and objectives of the association as they will be
compensated when achieve certain objectives. So by having a reward framework as a
motivating human resources or employees, they will be more averse to be missing from
work.
 Loyalty - A reward framework will build the worker's devotion to the association. By a
reward framework being set up the representative feels esteemed by the association and
realizes that their assessment matters. In the event that a representative is content with the
reward framework, they will probably acknowledge work put and stay faithful to the
association
Types of reward system
There are mainly two types of reward systems i.e. Extrinsic and Intrinsic. Both of them
are necessary as one gives inner satisfaction while the other provides materialistic outer
satisfaction. According to Aslam and et.al., (2017) when employee’s tasks are defined and
incentive is attached to each task, it leads to extrinsic motivation and employees try to work hard
in order to get that extra income. Whereas, Kumari and Thapliyal (2017) stated that there are
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several non-monetary benefits as well which could provide the same level of motivation that
incentive may provide. These are giving certificates of “Being Best Employee of the Year”
which could make the person highly motivated and strive towards excellence again and again.
Also, Iyswarya and Rajaram (2017) mentions that employees who believe that they important
part of company may become more efficient and productive because they view company’s
success as their own. So, providing ownership of task to the employees is enabling intrinsic
motivation. According to Frederick Herzberg who is one of the leading theorists of workplace
motivation found intrinsic rewards to be much stronger than financial rewards in increasing
employee motivation. This is not to say that employees will not seek financial rewards in
addition to intrinsic rewards rather it just states that money is not enough to maximize
motivation in most of the employees.
Relationship between reward system and employee performance
There is a direct relationship in between reward system and employee performance. The
increase in rewards results in maximising employee’s performance. Ullsperger and Cramon
(2017) states that rewarding good performance is a challenging task. It is an element which is
necessary to support improvement in performance through the strategic management initiative.
Rewards are intended to be in line with employee’s organizational strategy by providing
incentives for employees to act in the firm’s involvement and performance over time. According
to Mason, researcher has stated that employees who get rewarded and recognized tend to have
higher self-esteem, more willingness to take new challenges and eagerness to be innovative.
Dhar and et.al., (2017) state that there is an important relationship in between all eight
sub-dimensions of work motivation and satisfaction which include work content, payment,
publicity, recognition, working conditions, welfare, personal and leadership. Mone and London
(2018) also quote that “reward system helps in better performance of individuals as there is
inherent desire to go to a foreign trip or earn some extra income which could only be possible by
putting extra efforts to gain that reward. This enables rise in his performance that is gradually
increasing company’s output.” While the interest of employees globally lies in the incentive
which would be provided to them annually or half-yearly.
For that, they tend to work hard in those months. So, companies globally have come up
with an idea that incentive should be provided on the basis of performance; not time. This would
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result in much more comprehensiveness and make sure that people are working towards
achieving their goals tirelessly. Chrisman, Devaraj and Patel (2017) mention that there is
statistical significance in between reward system and employee’s performance. In most of the
global organisations, people are working only for incentives as for them, salary is not the
motivating factor but incentive is. It makes sure that people are not only contributing towards
building a strong organisation but also desire to achieve these incentive policies.
Zubair (2018) stated that an attractive and good reward program is important for the
employees for motivating them as unmotivated employees will not perform their assigned roles
and responsibilities properly and it will affect the organisation negatively as it can decrease
profitability of business. Performance of an organisation depends upon the employees who work
for the same and therefore, for obtaining high quality and better output, rewards play an
important role. Managers of an organisation continuously focus on developing the most effective
reward programs for employees to motivate them to improve their performance.
Motivated employees are required in the rapidly changing business environment.
Employees are known as the sole strategic assets that are key elements of a company or
organisation. In order to be effective, managers are needed to determine what components
motivate employees in relation to the role or tasks they perform. Managers play various different
functions but motivating employees is more difficult and complex. This is due to the reason that
needs and wants that motivates them change perpetually. Organisations can motivate the
workforce easily by introducing appropriate rewards and recognition system or other benefits.
Authors stated that compensation system delivers other objectives like labour cost
control, legal compliance, perceived fairness towards employees as well as improvement in
performance of the employees in order to achieve enhanced level of customer’s satisfaction and
productivity. It has been suggested that pay is directly related with organisation's productivity
and reward system depends on the size of business. The organisation's reward system plays a
vital role in encouraging employees in order to perform same effectively. Appropriate reward
and recognition system can be a motivator and on the other hand, inappropriate reward and
recognition system can demotivate employees leading to decrease in their productivity. Reward
is the benefit gained for accomplishing and performing any task or activity. It is an incentive or
positive stimulus that can be presented in the procedure of reinforcing behaviour.
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According to Rees and Smith (2017), employees nowadays expect much more than just
salary or wages from the employer. They need additional consideration that can improve their
living standards. These types of considerations in an employment structure are known as
employee benefits. Rewards that an employee receive are important part of understanding the
concept of motivation. Pandey, Schulz and Camp (2018) stated that there should be an
appropriate reward program or system for gaining high performance of the employee in an
organisation and those rewards must be related to their productivity. A lot of work has been done
in order to evaluate the relation between employee motivation and rewards. For maximising the
performance of employees, company should design and develop such policies as well as
formulate reward system under developed policies which can enhance employee motivation and
satisfaction.
Research undertaken by Silic and Back (2017) stated that, as income of an employee
increases, money becomes less motivating for them due to various other elements such as
position, improved standard of living, etc. After a specific period, interesting work and roles
highly motivate employees to perform well in an organisation or business. Large companies such
as Tesco can utilise reward system in their organisation so that they can get motivated to perform
high level of productivity and contribute in the achievement of organisational goals or
objectives.
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CHAPTER 3 - RESEARCH METHODOLOGY
It is essential to conduct a research properly in order to collect relevant data and
information related to the research subject or topic. Research methodology is a concept utilized
in order to determine the problem and methods to identify issues in relation with the subject or
topic. The researcher has used different types of techniques and methods in order to identify
answers to various questions and gather relevant information. For obtaining aim and objectives
of the research, different questions are developed that help in collecting information and data as
well as in providing the most appropriate results and conclusion for this study.
Research Philosophy – Theory of research assists in developing the most appropriate
design which can be used by the researcher in order to achieve main objectives of research in a
proper manner. It is essential to utilize a suitable instrument in order to get the best outcomes
from the research study. There are generally two kinds of research philosophies, Positivism and
Interpretivism. Positivism research philosophy is a strategy that provide effective consideration
of reliability in the research study. This philosophy states that the phenomena must be isolated as
well as the observations of research study should be repeatable. This often involves manipulation
of reality with variations within single independent variable in order to identify regularities and
develop link in between various elements in the society. Predictions can be created with regard
to realities observed and explained previously along with the relationship between them.
Interpretivism on the other hand is a research philosophy that content only through the
subjective interpretation and intervention in which reality can be determined fully. The study of
a subject or research topic within their natural environment is a main element of this philosophy,
along with the acknowledgment that researchers cannot ignore. This philosophy accepts that
there can be many interpretations of reality, but keep these interpretations in themselves as a part
of scientific knowledge they pursue. Interpretivism has a tradition which is not effective as
compared to positivism, neither it is shorter. In this research study, Positivism philosophy has
been applied by the researcher in order to identify impact of reward system on performance of
employees within Tesco.
Research strategy – The research strategy or plan is an element which differentiates
various approaches in order to direct the research examination. There are various kinds of
strategies and methods linked in different types of research activities and tasks. The strategies
mainly include surveys, seminars, interviews and tests in order to collect relevant information
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related to the research topic or subject. These strategies help in answering various questions
developed by the researcher. There are various kinds of research strategies as described below - Subjective research – This strategy needs the researcher to adopt a creative stance rather
than acting as an observer. It is a significant method which helps in building new
theories, ideas generated and subsequently tested. Survey – It enables the researcher to gain data or information related to various
situations, practices or views at one point of time through interview or questionnaires.
Quantitative analytical methods are then utilized in order to draw inferences from the
collected information or data with regard to existing relationships. The use of surveys
allow a researcher to study more variables at one time than it is possible in field
experiment and laboratory. Forecasting research – This research plan includes the use of methods such as time
series analysis and regression analysis in order to make predictions for the future events.
In this research, survey is conducted using quantitative research method to collect useful
data from the employees of Tesco.
Research Technique – Research technique can be referred to plans and processes for
research that pair the steps from wide assumptions to detailed processes of collecting
information or data, analysis and interpretation. There are mainly three kinds of research
approaches i.e. qualitative, quantitative and mixed methods. Qualitative research – This is an approach for understanding and exploring the meaning
of individuals or group attribute to a human or social problem. The procedure of research
includes emerging processes, questions and data which are typically collected in the
participant's setting, analysis inductively building from particulars to various general
themes and the researcher creating interpretations of the meaning of the information. Quantitative research – It is an approach for testing the aim or objectives theories by
analyzing the relationship between variables. These variables on the other hand can be
measured effectively on various instruments so that numerical data can be examined
using statistical techniques or methods.
 Mixed methods research – It is an approach which involves both quantitative and
qualitative data, integrating both types of data and utilizing different designs that consist
of theoretical framework and philosophical assumptions. Main assumptions of this
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technique is that the mixture of quantitative and qualitative approaches offer a detailed
understanding of a research issue or problem as compared to either approach alone.
In this research study, quantitative research method has been used by the researcher in
order to collect relevant information or data related to the impact of reward system on staff
performance within Tesco.
Data collection – This is another important part of a research study or examination
which helps researcher to collect relevant information or data with respect to the topic. In this
part or approach, a researcher can collect data from primary and secondary source of
information. Primary source of data collection helps in collecting unused information i.e.
directly obtained from the source of data such as surveys, interviews, etc. Whereas, secondary
information is collected through various used sources of data such as articles, journals, etc. In the
present research study, researcher will collect data from 30 employees of Tesco to identify the
impact of rewards on their performance.
Sampling – Sampling is considered as a process which involves various types of tests
from a group of individuals focusing on main objectives in order to collect an effective
arrangement of data and information which can assist in getting the best results from research.
Sampling can be further segmented into different groups such as multistage examining, group
inspecting, etc. In the present research study, basic sampling method has been used in order to
collect data or information. Researcher will collect data from 30 employees working in Tesco by
developing an effective questionnaire. It will help to collect primary data directly from
employees that can support in answering all questions with regard to the impact of rewards on
staff performance.
Research limitations – There are limitations of a research which cannot be controlled by
a researcher. There are various types of limitations which can be raised within a research study
or dissertation as described below:
 Lack of experience in the research area
 Formulation of research objectives and aim
 Implementation of data collection techniques or methods
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CHAPTER 4 – DATA ANALYSIS
Data analysis is another essential chapter of a research study. In the following section,
the researcher has determined major themes of analysis with respect to which research subject
has been analysed and discussed. The main themes were generalized through a mixed method for
collection of data in which the researcher presented the utilisation of quantitative research study
by developing a questionnaire to conduct interview for 30 employees working in Tesco.
Questionnaire was developed using various themes to effectively understand the impact of
rewards on performance of employees. The results are graphically presented with detailed
analysis and evaluation.
Questionnaire
Name :
Age :
1. Do you know about reward system?
 Yes
 No
2. What do you mean by rewards?
 Motivation of employees
 No motivation of employees
 No impact
3. Do you think reward has positive impact on employee performance?
 Yes
 No
 Maybe
4. Which is the most important reward for employees to get motivated?
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 Financial rewards
 Non-financial rewards
 Other rewards
5. Do you think performance goals are mutually developed and have specific time frames?
 Yes
 No
 Maybe
6. Do you think motivation can improve employee attendance?
 Yes
 No
 Maybe
7. Do you think reward system facilitates the implementation of strategy by attracting and
retaining the right kind of people?
 Yes
 No
 Maybe
8. Do you think pay decisions are linked to performance achievements?
 Yes
 No
9. Are you satisfied with the reward system in your organisation?
 Yes
 No
10. Do you believe Tesco can improve its overall performance by developing a effective
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reward system for their employees?
 Yes
 No
 Maybe
Themes of Questionnaire
Theme 1 : Employee's Reward system
Do you believe Tesco can improve its overall
performance by developing an effective
reward system for their employees?
No. of respondents
Yes 25
No 4
Maybe 1
Theme 2 : Rewards and Motivation
What do you mean by rewards? No. of respondents
Motivation of employees 20
15

No motivation of employees 5
No impact 5
Theme 3 : Positive impact of rewards on performance
Do you think reward has positive impact on
employee performance?
No. of respondents
Yes 20
No 5
Maybe 5
Theme 4 : Financial and Non- financial rewards
Which is the most important reward for
employees to get motivated?
No. of respondents
Financial rewards 15
Non-financial rewards 10
Other rewards 5
Theme 5 : Development of performance goal
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Do you think performance goals are mutually
developed and have specific time frames?
No. of respondents
Yes 15
No 5
Maybe 10
Theme 6 : Motivation and Employee attendance
Do you think motivation can improve
employee attendance?
No. of respondents
Yes 20
No 5
Maybe 5
Theme 7 : Facilitating implementation strategy
Do you think reward system facilitates the
implementation of strategy by attracting and
retaining the right kind of people?
No. of respondents
Yes 23
No 2
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Maybe 5
Theme 8 : Relation between pay decisions and performance achievement
Do you think pay decisions are linked to
performance achievements?
No. of respondents
Yes 25
No 5
Theme 9 : Satisfactory Rewards system
Are you satisfied with the reward system in
your organisation?
No. of respondents
Yes 20
No 10
Theme 10 : Improvement of performance by effective reward system
Do you believe Tesco can improve its overall
performance by developing an effective
reward system for their employees?
No. of respondents
Yes 25
No 4
Maybe 1
18

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CHAPTER 5 – DISCUSSION, RECOMMENDATIONS AND CONCLUSION
This is the last chapter of research study which includes interpretation of answers
collected by researcher through developing a questionnaire for employees in Tesco. There are
various themes developed for conducting the survey which were helpful for collecting
information. In addition to this, appropriate recommendations are provided in this chapter for the
chosen organisation with regard to rewards and its system. It will suggest effective ways to use
rewards for motivating the employees and improve their performance. Furthermore, this chapter
will also include a detailed conclusion which will present a summary of the entire research
study.
Discussion
Theme 1: Employee's Reward system
Do you know about reward system? No. of respondents
Yes 25
No 5
1Yes No
0
5
10
15
20
25
30
No. of respondents

Interpretation – This theme was developed by researcher in order to identify whether
employees in Tesco are aware of reward system or not. The researcher asked employees if they
know about reward system. 25 out of 30 employees said that they are familiar with reward
system of the organization. 5 employees said no; they don't know about it. Therefore, it can be
concluded that employees working in Tesco are aware and understand the concept of reward
system in organization.
Theme 2: Rewards and Motivation
What do you mean by rewards? No. of respondents
Motivation of employees 20
No motivation of employees 5
No impact 5
2
Motivation of employees
No motivation of employees
No impact
0
2
4
6
8
10
12
14
16
18
20
No. of respondents

Interpretation – The above theme was developed to identify what employees think about
rewards. The question developed by researcher was focusing on employee's perception with
respect to rewards and motivation. Employees were asked about what they link rewards with. 20
out of 30 employees said that reward is motivation for employees. 5 employees said that there is
no motivation by rewards. Remaining 5 employees said that there is no impact of rewards on
employee motivation. Therefore, it can be concluded from the above analysis that rewards play
an important role in motivating employees. Tesco should focus on offering effective rewards to
their employees to motivate them for improving their performance.
Theme 3: Positive impact of rewards on performance
Do you think reward has positive impact on
employee performance?
No. of respondents
Yes 20
No 5
Maybe 5
3

Interpretation – The above theme was developed in order to identify that whether rewards have
positive impact on performance of employees or not. Researcher asked employees that whether
they think rewards has a positive impact on performance of the employees or not. 20 out of 30
employees said that yes they agree that rewards play a vital role in improving employee’s
performance. 5 out of 30 employees disagreed by saying no as they do not think so and 5
employees were neutral. Therefore, it can be concluded that rewards positively affect the
performance of employees working in an organization and it can help to improve the overall
performance of company.
Theme 4: Financial and Non- financial rewards
Which is the most important reward for
employees to get motivated?
No. of respondents
Financial rewards 15
Non-financial rewards 10
4
Yes No Maybe
0
2
4
6
8
10
12
14
16
18
20
No. of respondents

Other rewards 5
Interpretation – This theme was developed to identify the most essential reward for employees
to get motivated. The researcher asked employees which is important motivating rewards for
them such as financial or non-financial rewards. 15 out of 30 employees said that financial
rewards motivate them in a better way. 10 employees supported non-financial rewards and 5
employees said that there are other rewards which can be effective for developing motivation.
Therefore, it can be concluded that Tesco can offer financial rewards to their employees in order
to motivate them in a better way and encourage to perform better.
Theme 5: Development of performance goals
5
Financial rewards Non-financial rewards Other rewards
0
2
4
6
8
10
12
14
16
No. of respondents

Do you think performance goals are mutually
developed and have specific time frames?
No. of respondents
Yes 15
No 5
Maybe 10
6
Yes
No
Maybe

Interpretation – The above theme was designed to analyze how performance objectives are
formulated. The researcher asked employees that whether they think performance goals are
developed mutually in specific timeframe or not. 15 out of 30 employees agreed, 5 employees
denied by saying no and 10 respondents were neutral. Therefore, it can be concluded from the
above analysis that performance goals in Tesco are developed mutually with contribution of
employees and managers. In addition to this, there are specific tie frames in which they are
formulated.
Theme 6: Motivation and Employee attendance
Do you think motivation can improve
employee attendance?
No. of respondents
Yes 20
No 5
Maybe 5
7

Interpretation – This theme was developed to analyze the relationship between motivation and
employee’s attendance. The researcher asked employees in Tesco that whether they think
motivation can help in increasing employee’s attendance or not. 20 out of 30 employees agreed
8
Yes
No
Maybe

that they believe motivation helps in increasing attendance of employees working in Tesco. 5
employees said no and 5 employees were neutral. Therefore, this analysis concluded that
motivation can influence the employees to reduce absenteeism and increase employee’s
attendance. It can help in improving the effectiveness and efficiency of organization.
Theme 7: Facilitating implementation strategy
Do you think reward system facilitates the
implementation of strategy by attracting and
retaining the right kind of people?
No. of respondents
Yes 23
No 2
Maybe 5
9
Yes
No
Maybe

Interpretation – This is another theme developed in order to identify whether reward system
facilitates implementation of strategy by retaining and attracting the right employees. The
researcher when asked employees about their thinking on this questionnaire, 23 out of 30
employees said that they agree, 2 employees denied and 5 were neutral. Therefore, it can be
concluded that an effective reward system can be useful in implementation of business strategies
by attracting skilled employees within organization and retaining them effectively.
Theme 8: Relation between pay decisions and performance achievement
Do you think pay decisions are linked to
performance achievements?
No. of respondents
Yes 25
No 5
10
Yes
No
Maybe

Interpretation – The above theme was designed to determine relationship between pay
decisions and achievement of improved performance. The researcher asked Tesco employees do
they think pay decisions are linked to performance achievement. 25 out of 30 employees said yes
and 5 employees denied. Therefore, it can be concluded from this analysis that pay decisions or
employee salary are strongly connected with achievement of high performance. Tesco focuses
on monitoring performance of each and every employee and pay decisions are made according
to the same.
Theme 9: Satisfactory Reward System
Are you satisfied with the reward system in
your organisation?
No. of respondents
Yes 20
No 10
11
Yes
No
0 2 4 6 8 10 12 14 16 18 20
No. of respondents

Interpretation – This theme was developed by the researcher for analyzing satisfaction level of
employees working in Tesco with respect to rewards and reward system. The researcher asked
the employees that are they satisfied with the reward system within the organization. 20 out of
30 employees said they agree and 10 employees said no they don't think so. Therefore, it can be
concluded that employees working in Tesco are highly satisfied with the reward system in their
organisation. This can be useful in motivating employees to perform better and increase business
performance as well.
Theme 10 : Improvement of performance by effective reward system
Do you believe Tesco can improve its overall
performance by developing an effective
reward system for their employees?
No. of respondents
Yes 25
No 4
Maybe 1
12

Interpretation – This theme was designed by researcher with respect to the relationship
between performance of organization and reward system for the employees. In order to identify
this relationship researcher asked employees working in Tesco about their perception on
improvement of performance and an effective reward system. 25 out of 30 employees said yes
they agree that their Tesco can improve its overall performance by developing an effective
reward system for employees. 4 employees disagreed and 1 was neutral. Therefore, it can be
13
Yes No Maybe
0
5
10
15
20
25
30
No. of respondents

concluded from this analysis that Tesco can improve its business productivity and performance
by introducing an effective reward system for their employees.
Recommendations
The research study identified that rewards are very important elements which needs to be
considered by each and every organization. The organisation can use rewards as effective
motivating factor for employees working in a company or organization. The above research
determined that every organisation requires a well designed reward system to motivate and
encourage their employees so that they can improve their performance and productivity.
According to research outcomes it is identified that reward is an element that symbolize anything
that the employees may value and that an employee offers in exchange of his or her work and
contribution in an organisation. The lack of rewards in an organisation give rise to an unpleasant
working environment which demotivate the employees and also influence their performance
negatively. This also affects employees to leave their jobs or switch their employers for better
opportunities. According to the above research study the reward system can be used by both
public and private sector to retain and motivate employees. Main objective of this system is to
retain experienced and skilled employees along with attracting new talent for Tesco. Various
recommendation for the organization are as following -
 On the basis of the interview concluded with employees in Tesco it is observed that the
organization is using a mixed reward system for their employees. Therefore, the most
significant recommendation for the company is that they can further enhance the
spectrum of the rewards they offer to their employees. Tesco needs to increase the
increment value related to their cash structure. This would effectively appeal more to the
employees as most preferred reward for them is cash bonus.
 In addition, the rewards of deputation should be enforced for employees and not just for
the senior management. This would not only cater to the employees who prefer intrinsic
motivation but would also be a powerful training instrument for the employees with
respect to managerial level operations. This would allow Tesco to enhance the rate of
internal hiring and reduce Tesco’s recruitment price. Furthermore, the reward schedule
could be made more frequent, thereby allowing the employees to experience more
rewards and constant appraisal. With constant appraisals the employee performance
14

would be increasing regularly and would encourage prospective employees to also join
Tesco in order to benefit from their lucrative reward structure. One reward which is not
yet present at Tesco completely is family welfare for the employees, like health and
educational insurance. Employees are prone to show increased commitment towards
organizations that are not only offering rewards to the employees but are also considerate
towards the employee’s families. This would increase Tesco’s retention ability and
would allow Tesco to retain their important employees, employees that add significant
value to Tesco’s productivity.
 Furthermore, during the questionnaires the employees predicated that they would prefer
to take part in the designing of the reward agenda. The employees, during the interviews
stated that they are motivated to take in the discussion with respect to the formulation of
the rewarding structure. Therefore, Tesco needs to develop an organizational strategy,
whereby each employee, in private, could cast their opinion regarding their preferred
rewarding method. Thereby the management could then infuse the perspective of
majority of the employees when designing the reward policies or system. Nowadays,
employees are not only attracted or motivated by financial rewards, they also demand
recognition, self-esteem and growth in terms of position. Therefore, rewards system was
introduced in order to support business human resource strategy. It supports the
management to avoid employee dissatisfaction and develop motivation among them to
improve their performance. Research proved that the major impact of rewards is the
increase in productivity of Tesco due to the fact that employees are the major strength of
each and every organization or business. Therefore, highly motivated and dedicated
employees play an essential role enhancing the profit of a firm and assist it to attain the
business goals and objectives.
 The research study concluded that Tesco can improve its business productivity and
performance by introducing an effective reward system for their employees. Therefore, it
can be determined that employees working in Tesco are highly satisfied with the reward
system in their organisation. This can be useful in motivating employees to perform
better and increase business performance as well. It is also suggested that pay decisions
15

or employee salary are strongly connected with achievement of high performance. Tesco
focuses on monitoring performance of each and every employee and pay decisions are
made according to the same. Therefore, it can be concluded that an effective reward
system can be useful in implementation of business strategies by attracting skilled
employees within organization and retaining them effectively. Furthermore, this research
study concluded that motivation can influence the employees to reduce absenteeism and
increase employee’s attendance. It can help in improving the effectiveness and efficiency
of organization. In addition to this it is recommended from the above outcomes of the
reach study that performance goals in Tesco are developed mutually with contribution of
employees and managers. In addition to this, there are
Conclusion
The researcher successfully determined the various impact rewards system have on an
organization's performance. As mentioned in the introduction of the research study reward
system was briefly described and analysed with respect to Tesco. The research focused on
various areas and impact of rewards system on the performance of employees as well as a
company. Managing reward system within a company is not an easy task, but it is very important
to develop effective rewards structure for employees so that they can be motivated to perform
well in a company or organisation. It is also concluded from the research that employees within
Tesco are satisfied with the rewards offered to them and this represents that the chosen company
focus on motivating their employees which supports the organization to increase effectiveness
and efficiency in their business activities. In chapter 1 the researcher introduced topic of the
report along with the aim and objectives of the research study. The chapter 2 included brief
literature review with regards to the topic chosen. This another essential part of research project,
literature review will provide various studies by different authors on the topic of this project.
There will be various themes included in this chapter such as concept of reward system and
employee’s performance, importance of reward system, types of reward systems, etc. In the
following section of literature review, the researcher has integrated findings of various major
research studies identical to the nature of current research for attaining important information
with regard to the major elements of research study. Further chapter 3 included description of
various research methodologies such as research design, approach, data collection method etc.It
16

is essential to conduct a research properly in order to collect relevant data and information
related to the research subject or topic. Research methodology is a concept utilized in order to
determine the problem and methods to identify issues in relation with the subject or topic. The
researcher has used different types of techniques and methods in order to identify answers to
various questions and gather relevant information. In chapter 4 data was collected and analysed
by the researcher to gather relevant information collected through employees of Tesco. Data
analysis is another essential chapter of a research study. In the following section, the researcher
has determined major themes of analysis with respect to which research subject has been
analysed and discussed. The main themes were generalized through a mixed method for
collection of data in which the researcher presented the utilization of quantitative research study
by developing a questionnaire to conduct interview for 30 employees working in Tesco. At last
chapter 5 included conclusion, recommendation and evaluation of the research study.
Evaluation
The main observation of aim of this research study was to understand the importance or
rewards and its impact ion performance of employees in Tesco. I identified that Reward is an
element that symbolize anything that the employees may value and that an employee offers in
exchange of his or her work and effort in an organisation. The deficiency of rewards in an
organisation give growth to a bitter working environment which demotivate the employees and
also influence on their performance negatively I observed that while conducting the research my
various learning styles were tested and understanding this style is very essential for my future
personal and professional development. I even a wide range of research techniques and
approaches which are important for conducting an effective and appropriate research on different
topics or subjects. In my future research project in I will collect and analyze information in a
more effective way. The topic chosen by me helped to get a better understanding of reward
system and its impact on organizational performance. In future I will use qualitative and
quantitative research methods to collect information as well as I will conduct survey for the
managers of the organisation to understand their perception with respect to rewards. The reward
structure followed by Tesco can also be discussed in a more detailed manner.
17

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<http://www.yourarticlelibrary.com/marketing/market-segmentation/consumer-
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19

APPENDIX 1
Questionnaire
Name :
Age :
11. Do you know about reward system?
 Yes
 No
12. What do you mean by rewards?
 Motivation of employees
 No motivation of employees
 No impact
13. Do you think reward has positive impact on employee performance?
 Yes
 No
 Maybe
14. Which is the most important reward for employees to get motivated?
 Financial rewards
 Non-financial rewards
 Other rewards
15. Do you think performance goals are mutually developed and have specific time frames?
 Yes
 No
1