Analyzing the Impact of Reward on Employee Motivation at Amazon

This literature review investigates the impact of reward systems on employee motivation within Amazon. It aims to identify the types of reward systems available, determine the preference between intrinsic and extrinsic rewards, and explore how rewarding can boost employee motivation in the long run. The review critically evaluates academic literature on employee reward and motivation, conducts empirical research to understand the current position of monetary and non-monetary rewards' influence on motivation levels within Amazon, and discovers views on how reward systems can be changed to enhance motivation levels. It also references Maslow's hierarchy of needs theory to understand the factors motivating Amazon employees, ultimately aiming to provide recommendations to senior management for adjusting their reward strategy to improve motivation levels.

The research
methodology
Title: The Impact of Reward on Employee Motivation Within Amazon.".....................................3
Research Aims:.......................................................................................................................3
Research Objectives:..............................................................................................................3
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Chapter 2: Literature Review...........................................................................................................3
Academic literature pertaining to employee reward and motivation.....................................4
Empirical research within Amazon to understand the current position with respect to how
monetary and non-monetary rewards influence motivation levels.........................................7
Empirical research within Amazon to discover views concerning how reward can be changed
to enhance motivation levels..................................................................................................9
Recommendations to senior management to assist them to adjust their reward strategy, to
improve motivation levels....................................................................................................11
Chapter 3: Research methodology.................................................................................................11
Chapter 4: Data presentation and analysis.....................................................................................11
Chapter 5: Conclusions and recommendations..............................................................................11
REFERENCES..............................................................................................................................11
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Title: The Impact of Reward on Employee Motivation Within Amazon."
Research Aims:
The specific research aim of this dissertation attempts to discuss the following:
 To investigate the impact of reward system on employee motivation within Amazon.
 To identify what type of reward systems are available within Amazon?
 To identify which type of reward system is preferred the most and considered most
beneficial ‘intrinsic or extrinsic.’
 How can ‘rewarding’ boost employee motivation in the long run?
Research Objectives:
The key objectives of this project were to investigate the impact of Reward on employee
motivation. This research project was undertaken to accomplish the following set objectives:
1) To critically evaluate the academic literature pertaining to employee reward and motivation.
2) To conduct empirical research within Amazon to understand the current position with respect
to how monetary and non-monetary rewards influence motivation levels.
3) To conduct empirical research within Amazon to discover views concerning how reward can
be changed to enhance motivation levels.
4) To make recommendations to senior management to assist them to adjust their reward
strategy, to improve motivation levels.
Chapter 2: Literature Review
This forms out to be a vital section of every research project which comprises of analysis
and survey of secondary form of data that is vital and essentially needed to set a framework and
base for an investigation. In addition to this, it has been evaluated that a literature review is
refers to the formation of survey through scholarly paper or elaborating the specific research
article review that contains some sort of knowledge (Riaz, Akhtar and Aslam, 2018). As it also
represent the authentic data information through facts and findings which meets to the right
conclusion of research (Thus, literature review leads to and facilitates better understanding and
perception about a selected topic along with evaluation of its objectives on the basis of secondary
resources and pre-existing literature.
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Academic literature pertaining to employee reward and motivation
According to the viewpoint ofHwang and Jung, 2018motivation is defined as process or
art of giving someone a reason to conduct any task or to do something.In modern business
environment motivation plays an essential role which helps organisation to maximize
productivity and performance of employees on significant basis.As perEscamilla, Segovia-Romo
and Cázares, 2022 it has been evaluated that employee reward or reward system is significantly
related with employee motivation as it has been underlined that rewards significantly motivate
better with the help of motivating employees by taking assistance of effective motivation system
organisation can encourage them to be more effective.
Setyowati and Sofingi, 2022 states that rewards significantly work better than
punishments as if employers are focusing upon rewarding employees for their actions rather than
threatening punishment in this they can not only motivate them for higher productivity but can
also retain them for longer period of time. Furthermore, it has been evaluated that from the
viewpoint ofJufrizen,Nurmala and Jasin, 2021with the help of promising rewards employer or an
organisation can significantly enhance employees creativity and can maximize their overall
performance level in a well-defined and effective manner.According to the viewpoint ofMustafa
and Ali, 2019it has been evaluated that it is a natural human tendency in which if they are
rewarded and recognised in effective manner it can increase their sense of belongingness and
inner self-motivation.It has been evaluated that employee reward act as a significant technique
which make employees self-motivated. There are different type of reward system which acts as
powerful motivator with the help of reward and recognition program company or an employer
can really motivate individual and can make them stay with an organisation for longer period of
time. Further, to develop a better understanding about the concept of motivation within the
employees of Amazon use of various motivational theory could be made. A discussion about the
Maslow's hierarchy of needs theory has been provided below to have better understanding and
thinking about the concept of motivation with the employees.
Maslow's hierarchy of needs theory
It is one of the best known theory that is applied and used to have underdoing about the
factors and needs that motivates and drive better performance within the employees. The making
use and application of the Maslow's hierarchy of needs theory tend to states and clearly present
the actions that tend to motivated the employees through meeting and creating certain
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physiological needs of the employees that has been presented in form of hierarchy under this
motivation theory. A discussion and analysis of all these needs that tend to provide a motivation
to the employees of the Amazon has been analysed and discussed as below:
 Physiological needs- This comprises of basic as well as the biological needs of a human
such as shelter, food, clothes, water, etc. Fulfilment of these Physiological needs are set
to be considered necessary for the living and survival of an employee therefore it is vital
that an organisation must fulfil these needs in order to make its employee function in a
more effective manner. Amazon is highly focused towards meeting the physiological
needs of its employees by the way of providing proper availability and meeting of the
basis of needs(Lee, 2022).
 Safety needs- This comprises of having a sense of safety through having protection from
all kind of harmful elements along with abiding with the security and safety along with
meeting law and stability at workplace along with freedom from all sort of fear. It is vital
for Amazon to provide a secure environment to ensure sense of protection that is free
from all threats of physical as well as psychological harm.
 Social needs- This needs comprises of belongingness feeling along with meeting the
social needs of human beings by the way of ensuring friendship at workplace along with
trust and acceptance in employees and receiving and giving affection and love. It is
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considered vital for Amazon to effectively provide and meet social needs to have
improved interpersonal relationship that motivates employees along with creating a
positive atmosphere to motivate employees for better performance.
 Esteem needs- These comprises of needs of self-respect and self-esteem which indicates
the high level of confidence, competence, achievement, knowledge and independence
level. Attainment of esteem needs by employees helps in improving their dignity and
provide them with higher job satisfaction and motivation to improve the performance of
employees(Chi and et. al., 2022).
 Self-actualization- This is the upmost needs which comprises of realizing the personal
potential as well as having a feeling of self-fulfilment. Beside this, self-actualization
needs also comprises of looking for higher personal growth and reaching out the peak
experience. fulfilment of self-actualization needs leads to maximum level of the
motivation in employees which tends to make them more effective as well as self-
motivated.
Thus, on the basis of the above discussion an analysis can be made that the main theme of
application of Maslow’s hierarchy theory comprises of the fact that once the lower level needs
are satisfied only after that an employee can reach and move towards the higher level of needs
which consists of esteem and self-actualization. In addition to this according to the viewpoint
ofRiaz, Akhtar and Aslam, 2018it has been evaluated that rewards motivate employees better
than punishment, as with the help of effective reward organisation can not only increase
employee sense of belongingness but can also retain them for long period of time. Furthermore it
has been evaluated that happy employees are more productive and tend to be hardworking in
order to fulfil organisational goals and productivity.(Mustafa and Ali, 2019) states that in this
ever increasing business environment there is aggressive competition in which organizations in
different industries are taking advantage of different strategies and practices in order to improve
the return on the human resource investments. In this employee reward act as a significant
strategy that will assist to organisation to motivate employees and assure long-term
sustainability. It also allow companies to have ability to attract and retain top performance which
helps them to fulfil overall objectives of organisation in effective manner.
Mustafa and Ali, 2019 states that academic literature states that there is a significant
relationship pertaining to employee reward and motivation. This makes organisation in any
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industry to understand that there is a fine line or link between reward and motivation which is
necessary to uncover in order to motivate employees (Siswanto, Maulidiyah and Masyhuri,
2021). This will allow companies to perform their roles and responsibility in challenging
environment, as allow companies to encourage employee, to feel being valued, achieve
organisational objectives and goals in effective manner and perform at their best. With the help
of this organisation can significantly assure long-term sustainability and profitability in industry
in a well-defined and effective manner.
Empirical research within Amazon to understand the current position with respect to how
monetary and non-monetary rewards influence motivation levels
As per the view point of Yamin, 2020rewarding employees plays an essential role as it lead them
to be more productive and also enhances their engagement. It has been identified that employee
reward is acting as a significant strategy which not only enhances retention but it also assist
organisation to develop more positive workplace in a well define and effective manner. With the
help of taking advantage of different type of rewards and recognition program company can not
only enhance productivity and performance of employees but can also maximize retention rate
and can lower down employee turnover. In context with Amazon has been identified that it is a
multinational technology company which focuses upon cloud computing, e-commerce, digital
streaming and artificial intelligence. Organisation is operating its roles and responsibilities with
large scale employees on different locations around the world in order to manage employee
motivation. There are a number of reward system in Amazon through which leaders and
managers of respective company are encouraging and leading employees in a well defined and
effective manner.
(Riaz, Akhtar and Aslam, 2018) it has been evaluated Amazon is a multinational
organisation with large-scale employees. Company is undertaking advantage of long-term
approach to employee motivation. Organisation is providing number of benefits to employees
such as discounts on Amazon purchase and offer rewarding employee with long term stock
option rather than cash (Amazon offers ‘special recognition bonus’ to employees. 2020). In
addition to this it has been identified that Amazon is also undertake advantage of different type
of programs such as career choice in which company is paying prepaid 95% of tuition for
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courses that are in demand skills. Furthermore, it has been identified that respective organisation
also offer special through cognition bonus to employees that among its global campaign.
HassenYimam, 2022 states that with the help of providing safe working condition,
competitive wages and great benefits Amazon is satisfying and enhancing employees motivation
as well as needs. Company is also focusing upon providing special bonus and incentives for team
globally in a well-defined and effective manner. With the help of taking advantage of this reward
system Amazon is motivating employees and enhancing their performance effectively. With the
help of employee reward practices Amazon is retaining its top talent within an organisation for
longer period of time.
However it has been evaluated that there are some flaws in Amazon management
employees working in Amazon warehouses can face worse condition. It has been evaluated the
employees of company confesses that they faced challenges while working for Amazon. In this
they are forming under pressure in which employees are asked to critique their peers (The flaw in
Amazon’s management fad. 2015). Along with this it been identified that Amazon treated
employees worse during coronavirus crisis. This affected employees performance in adverse
manner. It has been evaluated that the outbreak of covid-19 not affected organization but also
impact on employee mental as well as physical health (Employees confess the worst parts about
working for Amazon. 2015). In this it has been stated that many employees based challenges
during the time period of covid in Amazon (Amazon’s poor treatment of workers is catching up
to it during the coronavirus crisis. 2020). It has been identified that company continuously
pushes employees to work more without any incentive for rewards.
(Yamin, 2020) from the analysis it has been identified that Amazon is a multinational
organisation which is operating its roles and responsibilities with large number of employees
globally. Company take advantage of different type of effective reward systems strategies as well
as practices and take use of monetary and non monetary rewards in order to influence the
motivational level of employees in a well-defined and effective manner. However it has been
identified that company have some certain ineffectiveness in their reward system which is
decreasing employees performance and productivity level motivation. This is also decreasing the
sense of belongingness and trust of employees towards organization.
Jeha, Knio and Bellos, 2022 states that in this it is essential for Amazon to critically
evaluate the effectiveness in their reward system in order to significantly implement strategies as
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well as practices in order to overcome the challenges that employees are facing. This will
significantly help Amazon to ensure long-term growth and sustainability in industry and retain
employees by enhancing their overall level of motivation in significant manner.With help of
taking advantage of these practices Amazon can maximize the overall growth and can enhance
employees performance in more effective way.
Empirical research within Amazon to discover views concerning how reward can be changed to
enhance motivation levels
As per the view point of Riaz, Akhtar and Aslam, 2018motivation is an important factor
which allows organisation to significantly enhance employee productivity and performance
along with trust and loyalty towards organisation in a well defined and effective manner. It has
been identified from the empirical research within Amazon that company offers some certain
form of effective reward and benefits to employees organisation also undertake advantage of
efficient reward system with an aim to maximize motivation level of employees on order to
enhance their productivity and retain them for longer period of time. However there are some
certain flaws in company in which employees are facing challenges.
(Tumi, Hasan and Khalid, 2022) states that this is not only affecting their overall level of
motivation but is also creating bad image for our candidates those who are looking forward to be
a part of respective company. In this it is essential for Amazon management to emphasize upon
the certain employee reward flaws and effectiveness which is affecting motivation level of
employees. Furthermore, it has been evaluated that during the time period of covid-19 majority
of employees face challenges due to the increase in pressure and noneffective employee reward
system. Leitão, Teixeira and Campos, 2022 states that in this it is essential for Amazon to
effectively concern on these challenges in order to change and modify their reward system as to
manage employee patient order to enhance their overall level of motivation that significantly
help them to manage employees efficiently and enhance their motivation. With the help of taking
advantage of different type of strategies and practices and evaluating trends in business
environment company is required to implement or take advantage of competitive strategies and
practices in order to motivate employees. This will help them to gain more growth in industry.
Incentive theory of motivation
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As per the view point of the Kendra Cheery, 2020, it has been seen and analysed that
there are different reasons that drive people to do things and perform activity that comprises of
internal desires and wishes. Thus, application and use of the incentive theory of motivation tend
to present and reflect that the behaviour of employees is tend to be motivated and inspired by the
desires of gaining and having higher outside reinforcement and incentives in form of rewards.
Further, it has been analsysed that the incentive theory tend to emerge during the times of the
1940s and 1950s that has been derived by the psychologists such as Clark Hull. The application
of the incentive theory tend to focus on the purpose that people and human tend to pulled and
derived towards the behaviour that creates positive reinforcement in form of rewards(Di Gangi
and et. al., 2022). Along with this, the application and use of the incentive theory also tend to
suggest that employees are tend to push into and effective performance based on the internal
drives such as rewards and recognition along with otherfactors comprises of gainingthe
reinforcement and avoiding punishment that supports and emphasis on the fact that rewards tend
to drive and crate higher employees motivation level. Along with this, based on this theory of
incentive it has been analysed that Money is taken as an excellentexample of the external
rewards that tend to support and brings out higher motivation level in employees of Amazon. It
has been also reviewed that the external form of the rewardswhich comprises of the monetary
perks and other form of recognition tend to supportshigherperformance in employees through
meeting therefinancial needs along with leading extrinsic motivation. On the other hand, based
on the use of the incentive motivation theory it has been analysed that there are some intrinsic
form of motivation are also that tend to be intangible in nature and comprise of the factors such
as the hygiene level, proper communication and involvement of employees in decision making,
etc. These form of intrinsicmotivationtend to derive and leads to an internalmotivation based on
highersatisfaction level drive from a job that tend to enhance the overall efficiency and
performance level of employees within Amazon(Tong and et. al., 2022).
Recommendations to senior management to assist them to adjust their reward strategy, to
improve motivation levels
According to Bob Nelson and Peter Economy , (2016), revealed that employees may not
require a wage boost as much as a personal thank you from their boss for a job well done. Show
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your employees that manager can care about them and want to see them succeed by encouraging
employees in the following methods: Thank workers individually, in written, or both for their
hard work. Do it as soon as possible, as often as possible, and with sincerity. Take a moment to
meet with staff and listen to them. Allow them as much opportunity as they require or desire a nd
also provide precise comments on the employee's, companies and increase in performance. There
are some techniques are considered by the managers and senior management to motivate their
employees such as Help employees understand and value the benefits of their efforts. Employees
who believe the benefits are worthwhile will value your efforts and be more driven to work hard
to acquire them. Spend an additional time explaining and appreciating the prize to them. It is also
considered that it is necessary to ensure that staff are aware of how to obtain incentives.
Company should clearly specify how workers may earn their incentives as part of the HR team.
Employees will be more competent and dedicated in meeting performance requirements if they
have a thorough awareness of what is anticipated of them. Use a combination of
monetary and non-monetary rewards. Reward systems that combine a mix of
monetary and non-monetary incentives have a larger audience and a higher
inspirational value. A meaningful quasi present will elicit a greater emotive
response, but a monetary gift will provide more immediate satisfaction. For
that ideal fit, match the award to the employee. It can allow each employee
to choose their own incentive or decide what prizes should be provided to
employees under certain situations. This will increase their motivation to get
the incentive by doing the needed behaviour. Recognizing employee needs
is critical to this process & our workplace incentive programme may help do
so.
Chapter 3: Research methodology
In research, research methodology refers to a road map that all persons who wish to find fresh
facts and data to address a research topic must follow. Various processes are related with
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research technique in order to make research activity more practicable. This study is about the
networking and cooperation notion, whereby the researcher is attempting to uncover fresh facts
and figures in order to improve the conclusion. The following is an overview of all the
methodological approaches included in this study:
Research Design
Basically, research design is the most appropriate tool for the research project, as it allows
researchers to embrace a specific study layout as a methodological approach, allowing them to
effectively complete their research objective. The researcher considers a variety of research
designs, including description, experimental, and casual research designs, among others. The
researcher is considering using a descriptive research strategy to complete the current study since
it can assist offer answers to the questions like that why, when, and what.
Sampling Method
The sampling method is a statistical approach that may be used to choose responders from a
large group of people. There are two sorts of sampling methods: probability and non-probability
sampling procedures. Most researchers use both probability and non-probability sampling
methods because they are both successful. The researcher is using the probability sampling
approach in the current study. Within the current study, it has been recommended to apply a
qualitative kind of research approach, with data being collected via a questionnaire. Furthermore,
using the random technique of sampling, a sample size of 35 Amazon workers would have been
recommended for the gathering of primary data.
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Data Collection
The researcher employs a data gathering approach in order to complete this study
successfully. The researcher can efficiently gather data from the targeted demographic using the
data collecting approach. The researcher uses two types of data gathering methods: original
information gathering and secondary data collection.
 Primary data collection - Primary data collection is beneficial in that it allows
researchers to obtain authentic responses from the targeted population, which they can
then use to increase the relevance and completeness of their investigation. There are a
variety of options accessible to researchers for gathering primary data, including surveys,
questionnaires, observations, and interviews. The research is primarily using the
questionnaire approach to complete this present investigation since it generates genuine
and appropriate replies.
 Secondary data collection - The use of a secondary data collecting approach is to
provide a dosage reaction that has already been used by someone else. Secondary data is
gathered from a variety of sources, including publications, journals, books, newspapers,
and internet. To conduct the latest study, the researcher used a secondary data collecting
strategy, gathering material from publications and journals so that a circuit may quickly
expand its knowledge and comprehension of the research subject.
Research Instrumentation
Instruments for research are important for eliciting proper responses from the target populations.
The most appropriate tool is a research instrument, which is primarily used by the research as an
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instrument that measures the reactions of their core audience. Focus groups, observing,
conversation, questionnaire, and inquiry are some of the research tools that the researcher
considers. In order to perform this study properly, the researcher used a questionnaire as an
instrument in order to obtain adequate replies from the sample population.
Research Ethical Consideration
In research, it is critical for the researcher to retain ethical concerns within every and every
particular research in order to improve the industry research value and efficacy. In order to retain
ethical elements in investigation, researchers must use relevant information, use the best research
strategy, respond to one of the most appropriate research equipment, and accomplish the study in
a reasonable amount of time. Every one of these things must be followed by researchers in order
to retain ethical concerns in their study.
Chapter 4: Data presentation and analysis
Chapter 5: Conclusions and recommendations
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