Exploring the Effectiveness of Incentives on Employee Motivation
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The assignment content discusses the impact of reward systems on employee motivation and provides a presentation to depict the findings. It also includes references from various books and journals on topics such as human resource management, organizational development, and research methodologies.
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Research Project 1
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TABLE OF CONTENTS Introduction......................................................................................................................................4 Task 1 Understand how to formulate research specification...........................................................4 1.1 Formulate and record possible research project outline specifications................................4 1.2 Identify the factors that contribute to the process of research project selection...................4 1.3 Undertake a critical review of key references.......................................................................5 1.4 Produce a research project specification...............................................................................6 1.5 Produce plan and procedure for subsequent research...........................................................7 TASK 2............................................................................................................................................9 2.1 Matching resources effectively to frame the research questions...........................................9 2.2 Undertake the proposed research investigation in accordance with the agreed specification and procedures...........................................................................................................................11 2.3 Recording and collating the related data..............................................................................12 TASK 3..........................................................................................................................................13 3.1 Effective use of appropriate research evaluation technique...............................................13 3.2 Interpreting and analysing the results..................................................................................14 3.3 Making recommendations and justifying the areas for further considerations....................22 TASK 4..........................................................................................................................................23 4.1 Presentation of research......................................................................................................23 References......................................................................................................................................24 2
INTRODUCTION In simper terms, research is defined as the process of investigating into a subject matter in order to obtain suitable findings. Further, there are various tools and techniques which are adopted by a scholar to carry out research on a particular topic. The present research is based on assessing the impact of reward system on employee motivation. In the present scenario, motivated workforce has become very essential for business in retail clotting sector. Thus, the present study will highlight the fact that whether the use of reward system has any kind of impact on motivation level of employees or not. Some factors which has contributed in the selection of this particular study are also mentioned in this report. TASK 1 UNDERSTAND HOW TO FORMULATE RESEARCH SPECIFICATION 1.1 Formulate and record possible research project outline specifications Aim “ To assess the impact of reward system on employee motivation” Objectives To determining significance of reward system in organization, To identifying relationship between employee motivational and reward system To determining effective strategies thorough which motivational level of people in the organization can enhance It can be stated that the research has worked in different subsequent research and developed many topics to carry out appropriate study. Some key topics which the researcher encountered during his/her work includes the impact of social media marketing on sales and profitability of business, significance of effective communication in organizations, the need and importance of employee training in success of companies, impact of reward system of employee motivation etc. Thus among all these available topics, the scholar has preferred to carry out study 3
on impact of reward system on motivation level of workers within organization (Mowday Porter, and Steers, 2013). The rationale behind choosing this topic is that the adequate information was available on the topic and therefore it has helped in obtaining suitable and most accurate findings. The scholar was well aware of the fact that with the use of different primary and secondary sources, the data will be collected easily. Another reason for choosing the topic was that nowadays majority of retail clothing stores has started using reward systems in their overall operations. The study is going to help in exploring the effective reward system and what kind of relationship does reward system and motivation has with each other. 1.2 Identify the factors that contribute to the process of research project selection Every researcher is required to define effective and suitable methodologies which will used in order to carry out study in effective manner and accomplish its aim and objectives. For carrying out the present research, both primary and secondary sources of data collected will be used. On the other hand, qualitative technique of data analysis will be implemented in which the information collected will analyse by using various themes. The major which has contributed in selection of the present study is role of motivation and rewards system within a business enterprise. In the present scenario, organization are required to make adequate use of all the resources which are available with it. Furthermore, employee or human resources are considered as one of the most important and crucial resources for business. It can be also expressed that with the help of effective and highly skilled workforce, companies are able to serve customers with more satisfactory products and services. Along with this, they are also able to gain competitive advantage over other players which are operating in industry. One of the major factor which has contributed in selection of this particular research is that the growing importance of reward system among organizations. Most of the businesses has started providing different type of monetary and non-monetary rewards to their workers (Jiacheng, Lu and Francesco, 2010). Another factor which has encouraged the researcher in selection of this study is the significance of motivation among business enterprises. Nowadays there are various theories and techniques of motivation which are used by companies to encourage employees in giving best of their efforts (Manzoor, 2012).Thus, the present study will help in determining link between motivation and reward system. This research will consist of some dependent and independent variables which 4
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will be required to be taken care by researcher. It can be stated that independent variable are in control of researcher whereas dependent variable entirely relies on independent variable. The sample size selected in this research will be independent variable and impact of motivation and reward system will be variable. In the present carried out research, qualitative data will be present from which the researcher is going to obtain suitable findings. In simpler terms, qualitative data can be termed as the information which is not present in form of numbers and it is completely varied in nature. 1.3 Undertake a critical review of key references As per the view of Armstrong and Taylor, (2014) reward system at workplace has become very important in the present scenario. The role of such systems is to identify employees who have excelled in their respective field and contributed outstanding towards the success of organization (Armstrong and Taylor, 2014). The use of reward system results in creating sense of satisfaction among employee and helps them to give their best. Pinder, (2014) has explained that the use of reward system supports in retaining employees for long run. This further results in serving customers with the best quality of products and services (Pinder, 2014). The use of reward system also play very important role in enhancing the productivity of employee. However, has argued that organization needs to ensure that not only monetary but different types of non-monetary rewards are also provided to staff members (Piccolo and et.al., 2010). This includes non-monetary rewards such as health benefit or insurance for employee and their family members, providing flexible working hours, recognition of employee efforts, providing them with new roles and responsibilities etc. According to Schneider and Bowen, (2010) employee motivation is directly affected by the kind of reward system which has been adopted by organizations. Furthermore, businesses which do not use any kind of reward system tends to have employee which are less motivated and their morale level is also very low (Schneider and Bowen, 2010). The reason why reward at regular intervals motivate workers is that they become well aware of the fact that delivering better performance will result in better rewards. Twenge and et.al., (2010) has explained that the consequences of low employee morale includes higher absenteeism, less productivity and poor job performance (Twenge and et.al., 2010). This directly affected the capability of organizations to serve their customers in effective manner. Situations where employee receives various kind of 5
rewards, act as driving force for employees and always encouraged them to give their best towards the success of business enterprise. On the other side of this, Cummings, and Worley, (2014) has argued that it is not necessary that rewards always results in motivating workers to deliver better performance (Cummings and Worley, 2014). Reward system which are not fair and transparent results in creating dissatisfaction among workers. Thus, it is required by organizations to make sure that they do not encourage any kind of partiality at the time of providing rewards to their employees (Griffin, 2013). Companies needs to be fair and are also required to developed effective monitoring process to evaluate performance of staff members. Further, rewards should be provided on the basis of the performance which has been delivered by the employee (Scott, and Davis, 2015). Thus, it can be stated that there are various benefits whichorganizationshasbyusingrewardsystem.Itincreasestheproductivity,enhance attendance, lower down rate of employees and it directly enhances motivation level of people within organization. 1.4 Produce a research project specification The present will focus on identification of the impact of reward systems on motivation of employees. Further, Marks & Spencer has been selected as the organization which the researcher is going to investigate. It can be stated that in order to carry out the research in appropriate format project specifications are developed and mentioned below as:Title of the study– To assess the impact of reward system on employee motivationIntroduction– The present study will explore different areas which are directly linked with employee motivation and system of reward which are used by organizations. The growing use of reward system has helped my businesses to gain competitive advantage among other market players by serving customers with more satisfactory products and services. On the other side of this, motivate employee helps businesses to accomplish their goals and objectives in desired manner. Therefore, the present study will explore the fact that what kind of impact does reward system have on motivational level of people in the organization.Research aims and objectives– The purpose behind development of objectives and aim of research is to provide adequate direction to research regrading the fact that how study can be carried out in the best possible manner. The aim of present research is to assess the 6
impact of reward system on motivation of employee. Further its objectives includes determining significance of reward systemin organization, identifying relationship between employee motivational and reward system and determining effective strategies thorough which motivational level of people in the organization can enhance.Literature review– The literature review plays very important role in success of study and accomplishment of its aim. It can be stated that this section explores the views and opinions of other researchers and scholars on the topic which is under investigation. It supports researcher in becoming aware about the work of others and enhance overall knowledge.Research methodology– This section highlights different techniques and tools which are being employed by scholars to carry out the study. Further, it can be stated that the researcher has used inductive approach for the present study. In term of philosophy, interpretivism research philosophy is used and qualitative technique of data analysis is employed by the scholar. The use of right tools and techniques helps in carrying out research in appropriate manner and obtain suitable findings.Findingsandanalysis–Thissectionincludesthefindingsandanalysisofthe information which has been collected from various primary and secondary sources. Findings are presented with the help of various graphs and tables. On the other hand, thematic method is used to carry out the analysis of collected information. Conclusions and recommendations– It is termed as the last section of research which highlights the information which has been presented and analyzed by the researcher. Along with this, some recommendations are provided to Marks & Spencer on the basis of conclusion. 1.5 Produce plan and procedure for subsequent research ACTIVITY/WEEK1234567891011 Identificationofresearch topic 7
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Topicisselectedafter discussing with tutor, Determiningtherationale behindthestudyand significance are defined. literaturereviewis conductedtocollect secondarydatarelatedto topic, Determining objectives and aim of the study For collecting primary data, researcherapproachersto managersofMarks& Spencer Selectionofresearch approach Researchmethodology used in the study defined properly. Questionnairesrelatedto impact of reward system on employeemotivationis developed With the help of survey and questionnairemethods, informationfrom respondents collected. Arrangementofgathered informationina chronological order. Thematicanalysis technique is applied to the present outcomes. Interpretation of collecting 8
dataandfindingsof researchinsystematic manner. Attheend, recommendationsand suggestionsforfurther study are provided. Presentationisdeveloped to present the findings. Submission of the report Hypothesise- It can be defined as a statement which has been formulated by a scholar with an order to attain suitable outcome by carrying out experiment or research. For the present study, th hypothesis will be to determine impact of reward system and motivation. In order to carry out this study, researcher will be required obtain in-depth knowledge about the concept, significance and different from of reward system. The aim and objective of research are mentioned below as: Aim “ To assess the impact of reward system on employee motivation” Objectives To determining significance of reward system in organization, To identifying relationship between employee motivational and reward system To determining effective strategies thorough which motivational level of people in the organization can enhance Along with this, resources such as technological, financial and human will be also requited to conduct this particular study. The analysis of data will be done with help of Execl and it can be expressed that entire research is going to be reliable and valid. Only authentic sources will be used to collect information and no manipulation of data will be done. As per the provided case, the control variable will be sample size and sample selected for carrying out this study. 9
TASK 2 2.1 Matching resources effectively to frame the research questions In order to carry out the present study, different type of resources were required by the researcher. This includes resources such as human, technology and finance which were needed to carry out study in the best possible manner. To accomplish the aim and objective of this research, different primary and secondary sources of information are used. In addition to this, primary data has been collected by well structured questioner which is developed on the basis of research aim and objectives. Along with this, different secondary sources such as books, online sources and journals are also taken into consideration to gather useful information. All the information is collected to assess the impact of reward system on motivation of employees. The questionnaire is mentioned below as: 1. Name 2. Gender Male Female 3.Do you think rewards system has become very important for organizations? Yes No 4. Marks & Spencer provides employee with rewards against their outstanding performance? Strongly agree Agree Neutral Disagree Strongly disagree 5.Organizationsarerequiredtoprovidebothmonetaryandnonmonetaryrewardsto employees? Yes No 10
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6. What are the financial rewards which are provided by Marks & Spencer? Basic wages Pay related to performance Promotion Bonus Pension plan Discount to staff All the above 7. What are the non-monetary rewards which Marks & Spencer provides to its employees? Incentives in terms of half day or time off? Perks Gifts Training and development Roles and responsibilities Flexible working hours Recognition and acknowledgement of employee Challenging activities All the above 8. How motivation level of employee is measured in Marks & Spencer? By the volume of work produce by employees Employee s work quality and standard Time invested in doing task Concentration level of employees 9. In your opinion different type of rewards affects the motivation level of workers? Yes Somewhat No 10. Fair and transparent reward system act as driving force and encourages employee to give their best? 11
Strongly agree Agree Neutral Disagree Strongly disagree 2.2 Undertake the proposed research investigation in accordance with the agreed specification and procedures The main aim behind carrying out this study is to assess the impact of reward system on motivational level of employees. Further, there are different type of research design which can be used by researchers to carry out their respective studies (Clark and Creswell, 2011). This includes designs such as experimental, case study, exploratory, casual etc. For the current study, descriptive design of research has been employed by the scholar. The rationale behind this is to describe different element which are linked with organizations reward system and employee motivation. The researcher has also taken care of the fact that validity and reliability of research is maintained the best possible manner. The data has been collected only from authentic sources and primary data is gathered personally by the researcher. In the present study, information was presented in non- numerical form and therefore qualitative technique of data analysis is used by the scholar (Petty, Thomson and Stew, 2012). The selected technique of data analysis has benefited the research in carrying out in depth analysis of the topic under investigation. On the other hand, interpretivism and positivism are the two common form of research philosophies which are used to carry out a particular study (Zhang, 2013). In the present, interpretivism research philosophy is employed by the research. The rationale behind using interpretivism philosophies is that it entirely relies on reality of research and thus was more suitable for this research. Other than this, it can be stated that inductive and deductive are the two main approaches which are used to conduct a study. Further, in order to assess the impact of reward system on employee motivation, inductive approach has been used. The reason behind using this philosophy is that more generalized data related to the topic under investigation was required to effectively carrying out the present study. Purpose of the research 12
Who: The researcher has personally carried out the study in order to assess the impact of reward system on employee motivation. The respondents were managers of Marks & Spencer from which primary data is collected How: In order to carry out the present research, survey method of qualitative research technique is used. The information is collected by using questionnaire developed on basis of research aim and objectives. Why: The reason behind carrying out this study was to assess the impact of reward system on employee motivation Where- It can be stated that the entire study is carried out in UK and manages of different Marks & Spence stores were taken into consideration. 2.3 Recording and collating the related data Collection of data It can be stated that there are various sources from which researcher can use be used to gather information for topic under investigation. Primary and secondary are the two common sources which are used to collect data (Chilisa, 2011).Further, it can be stated that primary information is a kind of raw data which has been collected for the first time. Such kind of data is collected personally by the researcher in order to obtain suitable findings. Interview, observation, case study, life history and questionnaire are some methods using which primary data for a particular topic can be collected (Coleman and Ringrose, 2013).The researcher has collected primary data of Marks & Spencer with the help of a well structured questionnaire designed on the basis of research aim and objectives. The ease in this process was that the researcher was able to collect data according to his needs and requisitioner. However, the major difficulty which was faced in primary data collection was that during initial stage, the respondents disagreed to providetheirviews.Thisdifficultywasovercomebyexplainingpurposeofstudyand communicating them that the information provided will be destroyed after use. On the other hand, secondary sources provides information which is already collected by other researches and scholars. Therefore, the information collected by secondary sources is termed as second hand information and is considered as old and less reliable. The secondary data was collected by using different books, journals and online sources. The ease here was that the researcher was able to gather adequate information regrading reward system and motivating. On the other side of this, 13
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the difficulty faced was that the scholar was not able to find the latest information on how reward system and motivation affect employees in retail sector. Sampling In terms of sampling, it can be stated that purposive sampling technique which is a part of non-probabilistic sampling method is employed by the research (Nickoson and Sheridan, 2012). The reason behind using the above sampling technique is that the researcher has approached different managers of Marks & Spencer with a purpose of getting information about the impact of reward system on employee motivation. The sample size of this research was 20 managers. Ethical considerations At the time of carrying out the present study, all ethical considerations are well taken care of by the researcher. Furthermore, prior permission was taken from all respondents before approaching them. On the other hand, the information which is gathered by using different sources has been secured in the best possible manner. There is no partiality done by the researcher at the time of collecting data and carrying out analysis of the same. The scholar will also make sure that the data is completely destroyed after using it. Research limitations In terms of limitations, it can be argued that time and resources are the two major limitations which the researcher has faced at the time of carrying out the present study. This has affected the effectiveness of the present study. Due to lack of time and funds, the scholar has not been able to collected adequate data.Another limitation is related to uncontrollable variable which are the impact which motivation and rewards system can have on performance of employees and organizations. At the time of carrying out the process of data analysis the researcher was required to use specialist software which is another limitations of the current study. TASK 3 3.1 Effective use of appropriate research evaluation technique In term of carrying out the evaluation of research, qualitative and quantitative are the two common techniques which are used by researcher. According to the nature of present study, qualitative technique is used to carry out the evaluation of the information collected from different sources. It can be also stated that in order to reach the target sample and gather primary 14
information, the scholar has adopted survey method. Further, the survey is conducted on 20 managers of Marks & Spencer. The sampling method which is used for present study is non- probabilistic sampling and the technique is purposive sampling. 3.2 Interpreting and analysing the results The information collected from different sources is interpreted and analysed below as: Theme 1: Reward system is very important for organizations Do you think rewards system has become very important for organizations Number of respondentsPercentage Yes1575 No525 Interpretation and analysis:From the information collected by primary sources, it has been interpreted that nowadays reward system has become very important for organization. Further, out of the total 20 respondents, majority which is 75% were in the favour of above mentioned statement. On the other hand, 25% of total respondents were not in the favour of the same. 15 YesNo 0 2 4 6 8 10 12 14 16 Do you think rewards system has become very important for organizations Number of respondents
The data collected from various primary and secondary sources, it has been analysed that the use of reward system creates a sense of satisfaction among employees. Majority ofrespondents explained that the use of reward system assist businesses to lower down rate of employee turnover. The same results have been analysed from secondary sources that the use of reward system results in productivity, enhance attendance, lower down rate of employees. Theme: 2 Marks & Spencer provides rewards to employee against their performance Marks & Spencer provides employee with rewards against their outstanding performance Number of respondentsPercentage Strongly agree945 Agree420 Neutral210 Disagree315 Strongly disagree210 Interpretation and analysis:The results of primary data collected highlights that when employee perform outstanding, Marks & Spencer provides various rewards to them. Out of the total 20 respondents, 45% strongly agree and 20% agree with the same. 10% were neutral, 15% 16
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disagree and 10% strongly agree with the above mentioned fact. The same results have been analysed from the secondary data that nowadays business have started providing rewards to employees against their performance. This act as driving force and encourages employee to give their best. Theme: 3 Organizations are required to provide both monetary and non monetary rewards to employees Organizations are required to provide both monetary and non monetary rewards to employees Number of respondentsPercentage Yes1785 No315 Interpretation and analysis:From the information collected, it has been found that it is requiredbyorganizationtoprovidebothmonetaryandnon-monetaryrewardstotheir employees. Out of the total 20 respondents, 85% agree with the fact whereas 25 disagree with the same. It has been analysed from primary and secondary sources that rather than focusing only on monetary rewards, organizations are also required to provide non-monetary rewards to their staff members. 17
Theme 4: Marks & Spencer provides various types of non-monetary rewards to its employees What are the non-monetary rewards which Marks & Spencer provides to its employees Number of respondentsPercentage Incentives in terms of half day or time off 315 Perks15 Gifts15 Training and development15 Roles and responsibilities315 Flexible working hours210 Recognitionand acknowledgement of employee 15 Challenging activities15 All the above735 Interpretation and analysis:It has been found that there are various types of non-monetary rewards which are provided by the organization to all its employees. Out of the total 20 respondents, majority which is 35% were in favour of all the above. However, the remaining 18
respondent were having their different opinions. Thus, it can be analysed that non-monetary rewards such as training and development, challenges task at workplace, gifts and perks are provided by business to employees. Theme 5: Motivational level is measured by determining concentration level of employee How motivation level of employee is measured in Marks & Spencer Number of respondentsPercentage Bythevolumeofwork produce by employees 525 Employee s work quality and standard 210 Time invested in doing task15 Concentrationlevelof employees 1260 Interpretation and analysis:From the information collected, it has been found by the researcher that in order to identify motivational level of employees, their concentration level is taken into 19 By the volume of work produce by employees Time invested in doing task 0 2 4 6 8 10 12 14 How motivation level of employee is measured in Marks & Spencer Number of respondents
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consideration by Marks & Spencer. From the total 20 respondents, majority which is 60% agree with the above mentioned statement.10% respondent gave preference to quality of work done by employee whereas 25% stated that the volume of work produce is consider to examine employee motivational level. The remaining 5% of the total respondents favoured time taken by workers to carry out a particular task. It is analysed that in order to understand the fact that how motivated a worker is, his/her concentration level becomes one of the most important parameter for judgement. Theme: 6 Motivation level of employee is affected by reward system In your opinion different type of rewards affects the motivation level of workers Number of respondentsPercentage Yes1890 Somewhat210 Interpretation and analysis: It has been interpreted that the use of reward system directly affects the motivational level of staff members. From the total 20 respondents, majority which is 20
90% agree with the fact whereas 10% were not in favour of the same. It has been analysed from the primary and secondary data collected that reward system act as driving force and encourages employee to do their best. Workers also starts perceiving the fact that better performance will result in better rewards. This always helps employees to stay motivated and give better outcomes. Theme 7: Fair and transparent reward system act as driving force and encourages employee to give their best Fair and transparent reward system act as driving force and encourages employee to give their best Number of respondentsPercentage Strongly agree1365 Agree210 Neutral15 Disagree210 Strongly disagree210 21
Interpretation and analysis: From the information collected, it has been interpreted that fair and transparent reward system is very important in order to keep the employee motivated.Out of the total 20 respondents, majority which 65% strongly agree with the above mentioned statement and 10% agree with the same. It has been interpreted that 5% of respondents were neutral, 10% disagreed and the remaining 10% strongly disagreed with the same. From the data collected with different primary and secondary sources it has been analysed that in order to motivate employee, organizations are required to use reward system which are completely fair and transparent. Furthermore, partial reward systems creates dissatisfaction among employee instead of motivating them to give their best towards the success of organization. 3.3 Making recommendations and justifying the areas for further considerations From the above study, it has been concluded that reward system has direct and positive impact on the motivational level of employees. It can be stated that nowadays businesses are using variety of monetary and non-monetary rewards in order to encourage customers to give their best. It has been observed by the researcher that rather than focusing only on providing monetary rewards, organizations need to seek for providing non-monetary reward to their employee. Further, not every employee in business enterprise strives for getting financial benefits against their performance. Some workers want that their efforts should be reconsigned and appreciated in front of other staff members. On the other hand, some workers seeks for getting higher roles and responsibilities, flexible working hours, training programs against their performance. Therefore, it is required by management to make sure that monetary and non- monetary rewards are offered to employee at regular interval. There are several benefits of providing such rewards to their workers. One of the major among those is that it enhances the morale and motivational level of employee. This results in delivering more effective and satisfactory products and services to customers which directly benefits companies in the long run. Some recommendations to Marks & Spencer to improve motivational level of employee are mentioned below as: It can be recommended that the organization needs to focus on training and development of employees. This will help employees to learn new things and enhance their skills set. Training at regular intervals will also result in enhancing the overall productivity of employees and thus will support them in staying motivated. 22
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It can be also recommended that Marks & Spencer needs to make sure that no partiality is done at the time of reward to their employee. This will help in creating sense of satisfaction among all staff members and it is also going to support them in delivering better products and services to customers. Another recommendation which is provided to Marks & Spence is that its reward system needs to be visible so that employee can see the rewards which they will be getting against higher performance. This will result in motivating employee to deliver higher level of performance for the success of organization. It can be also recommended that reward system in Marks & Spencer is required to be flexible so that changes in the same can be made easily. The organizations should conduct employee survey at regular intervals to become aware about the fact that whether the reward system is satisfactory or not. In case of any changes required, the brand can make any kind of modifications in the same. TASK 4 4.1 Presentation of research After carrying out the study on impact of reward system on employee motivation, the researcher has developed a PowerPoint presentation to depict the findings of study. 23
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