Impact of Recognition on Employee Satisfaction: A Literature Review

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System04002

Literature Review 1
Table of Contents
Problem Identification..................................................................................................................2
Independent Variable.......................................................................................................................2
Maslow’s Theory.........................................................................................................................4
Dependent Variable.........................................................................................................................5
Two-factor theory (motivator-hygiene theory)............................................................................6
Correlation between two variables..................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

Literature Review 2
Introduction
The present literature review sheds light on the impact of recognition in achieving employee
satisfaction. The literature review is focused on providing in-depth analysis of different variables
required in the research and establishing a relation between them. The problem statement is
divided into independent and dependent variable so that the effect of one variable can be
analyzed on another variable. Various research articles and books have been studied and
analyzed to understand the impact of recognition on employee satisfaction. The employee
satisfaction is considered as a dependent variable whereas the recognition is considered as an
independent variable in the research.
In the present competitive times, the employee satisfaction is considered as a significant element
in the employee retention and productivity. However, in the hospitality industry, the employee
retention is a big concern. Therefore, the research has examined the impact of recognition on the
employee satisfaction. In the hospitality industry, the employees play a major role in the
experience and the employee satisfaction. It is essential that the employees remain satisfied and
motivated with their jobs so that the consumer experience with the organization remains
satisfactory. The recognition also entails several other benefits such as increase in wages and
higher responsibilities. The literature review is focused on the recognition and its impact on
employee satisfaction.
Problem Identification
Currently, several studies have been conducted, which analyzes the employee satisfaction.
However, there are only a few studies, which analyzed the impact of recognition on the
employee satisfaction. There are several factors, which affect the morale and satisfaction of the
employees at the workplace. There are other secondary factors, including pay scale,
management, working hours, and the work-life balance, which influences the employee
motivation at the workplace. In the present literature review, the impact of recognition on the
employee satisfaction will be evaluated.
Literature Review
Independent Variable
The current literature on the employee recognition is limited and there is no actual
conceptualization or the theoretical integration of the employee recognition as a human resource
strategy. In the views of Ventrice (2009) in the present times, the competitiveness in the industry
has increased immensely and it requires that the employees work with high motivation. It can be
critiqued that employee recognition is important in employee motivation. The performance of the
organization can be enhanced by intrinsic and extrinsic rewards. The employee recognition is the
trajectory of motivation and results in high productivity. It is a personal development agent and
important for the mental health of employees. The lack of recognition is one of the highest risk

Literature Review 3
factors for anguish during the work (Nelson, 2015). It is important for the managers as it can be
used to handle difficult professional situations. The employee recognition is also important for
on-the-job learning. It is important in complex workplace situations. Today, most of the
organizations yearn to become learning organization, which can be achieved by giving employee
motivation (Banya, 2017). The employee job satisfaction can enhance employee productivity and
performance.
A discussed by Brun & Dugas (2008), it can be stated that most of the employees expects to be
recognized by their supervisors, and peers regarding their performance and productivity. The
need of recognition is omnipresent, irrespective of the job hierarchy or job status. The
recognition of the employee efforts can be considered as an important organization practice for
the employee performance. Different organizations take different approaches to the employee
recognition. There are four different approaches to the employee recognition, ethical perspective,
humanistic view, behavioral outlook and work psychodynamics school (Bradler, Dur,
Neckermann & Non, 2016). These approaches can be used to express the employee recognition
in four ways, namely, personal recognition, recognition of the workplace ethics, recognition of
results and recognition of job dedication. These recognition practices satisfy the needs of most of
the staff regarding the need to be recognized in the organization. The employees should be
recognized as an individuals, as well as they should be appreciated for the commitment that they
bring to the job (Daniel & Metcalf, 2005). They should be appreciated for the commitment,
investment of time and energy and competent performance of the job duties.
In the views of Harrison (2013) the recognition at the workplace is important as it is important
for the human dignity and social justice issue. It states that the recognition is not merely an issue
of organization performance or the psychological wellbeing of the employees. The notion of
equality among all the people also demand that the employees are recognized for their
achievements. Therefore, it becomes the duty of a company in a demanding environment to give
recognition to all the employees (Saunderson, 2004). The organization works as a shared
collective responsibility, and therefore, it implies the concern for others, consideration given to
the outcomes and the impact of the actions. The organization justice can be achieved in an
organization by following different practices. The senior management should develop standards
and polices regarding the delivery of the rewards and treating workers justly in the organization.
The company should monitor the psychological wellbeing of all the employees and they should
help the employees when they feel bad or threatened by challenging decisions. The organization
management should also consider the past mistakes in making the future decisions in the
organization. The recognition is also important in righting the wrong decisions of the
organization and supporting the employees, who have suffered because of wrong organization
decisions. The humanistic or the existential view is associated with ethics and is focused on
identifying different people, their unique characteristics, distinct character and existence.
According to this theory, if the employees or the workers are provided with proper working
conditions, it will assist them in approaching their work positively and understand and work