(Solved) Rewards System in HRM

DISSERTATION
HRM

TABLE OF CONTENTS
CHAPTER- 1 INTRODUCTION....................................................................................................1
1.1 Background.......................................................................................................................1
1.2 Research aims and Objectives..........................................................................................1
1.3 Research questions...........................................................................................................2
1.4 Rationale for study...........................................................................................................2
1.5 Significance of study........................................................................................................3
CHAPTER- 2 LITERATURE REVIEW ........................................................................................4
2.1 Introduction......................................................................................................................4
2.2 Concept of reward management and recognition.............................................................4
2.3 Types of rewards..............................................................................................................5
2.3 Importance of reward for performance and recognition for retention..............................6
2.3 Impact of rewards and recognition in increasing performance and retention of senior
section.....................................................................................................................................6
CHAPTER- 3 RESEARCH METHDOLOGY ...............................................................................8
3.1 Introduction......................................................................................................................8
3.2 Research philosophy.........................................................................................................8
3.3 Research design................................................................................................................9
3.4 Research approach............................................................................................................9
3.5 Data collection................................................................................................................10
3.6 Sampling.........................................................................................................................10
3.7 Data analysis...................................................................................................................11
3.8 Ethical consideration......................................................................................................11
CHAPTER- 4 RESULTS ..............................................................................................................12
4.1 Introduction....................................................................................................................12
CHAPTER 5: DISCUSSION AND EVALUATION....................................................................22
CHAPTER- 5 CONCLUSION AND RECOMMENDATION ....................................................24
5.1 Conclusion......................................................................................................................24
5.2 Recommendation............................................................................................................25
REFERENCES..............................................................................................................................27

CHAPTER- 1 INTRODUCTION
1.1 Background
In the present era the organizations demonstrates higher degree of commitment with
respect to reinforcement of the practices related with rewards that are being aligned with other
HR practices as well as goals of the firm in order to attract, retain as well as motivate the
personnel (Obeidat and Abdallah, 2014). Suitable reward practice act as an aid in attracting
towards result driven professionals who can thrive as well as succeed within the environment
that is performance based. Therefore such is considered as crucial motivator and provides greater
contribution towards increasing the productivity of the personnel in case it is being executed in
an effective manner (Cobb, 2016).
An effective management of the reward system has greater advantageous influence over
the personnel in various manner. This includes facilitating longer term emphasis with continuous
enhancement, reduction in the service operating costs, encourages team work, reduce
dissatisfaction among employees and increase interest among the personnel within the financial
performance of the firm (Cobb, 2016). Higher performance business keeps management of their
reward practices in a manner that it is enabling them to make prediction of what kind of
innovation can work in the best manner as well as ensures what is being done for the sake of
delivering outcomes that are expected (Fay and et.al, 2015).
Company information
Study will be based on firm which are operating in the hospitality industry. Hotel is well
known leading budget hotel brand which offer luxurious services at budget price. It is operating
its business at large scale in the hospitality industry. It is an international type of hotel which
provides Wi-Fi services, luxurious rooms, meeting rooms to its valuable customers. It is
operating its business across the world. It is considered as most luxurious brand in the hospitality
industry and there are more than 250 employees are working. Mainly it has its head quarter in
central of London. Hotel provides all kind of facilities to its consumers as per their needs and
requirements. Hotel target market is women and men between age of 20-45. It targets its
consumers on the bases of their income level, its facilities are quit costly thus people those who
are having good income source they can enjoy services of the company. Across the world cited
firm has more than 30 branches where skilled people are working ad they are contributing well in
the success of entity. UK is the famous place from the tourism point of view, hotel is able to
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attract tourist by providing them quality services. It is situated near airports, railway stations and
offer products and services at affordable prices as compared to other global hotels (Types of
Employee Recognition and Rewards, 2017).
Study will discuss the use of rewards management as performance and recognition for the
retention of employee within the senior section (5 Tips for Effective Employee Recognition,
2017). Literature of other authors will be reviewed in this study so that in depth information can
be collected. Research methodologies will be described and discussion or evaluation will be done
of the subject matter.
1.2 Research aims and Objectives
Aim: To Analysis of the use of rewards management to improve performance as recognition for
employees within the senior management.
Research Objectives:
 To understand the concept of rewards management and recognition.
 To investigate the use of rewards management as performance and recognition for the
retention of employee within the senior section of organization.
 To identify the impact of rewards and recognition in increasing performance and
retention of senior section in the organization.
1.3 Research questions
 What is the meaning of rewards management and recognition.
 Explain the use of rewards management to improve performance as recognition for the
retention of employee within the senior section of organization.
 What is the impact of rewards and recognition in increasing performance of senior
section in the organization.
1.4 Rationale for study
In the present era there is increase in issues related with minimizing retention of the
personnel. Along with this lack of proper reward is affecting the performance of the employees
to a greater extent. As the competition among the business has enhanced thus there is greater
need towards the business to develop the strategies that can assist in retention of the skilled
personnel for longer span of time (Goetsch and Davis, 2014). Rewards and recognition are
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regarded as important factors that helps in attainment of the success by the firm in an effective
manner. The issue can be resolved when the business would employee suitable reward system so
that it is able to provide satisfaction to the employees to a significant level. Apart from this it is
competitive era competitors are offering attracting packages to the skilled employees. That is
why they are moving towards other brands, if they are not getting satisfactory salary packages in
the existing workplace (Cobb, 2016). Companies have to understand requirement of people and
pay attention to hold skilled persons in the organization for longer duration. Through this study
scholar will be able to find ways of encouraging management employees so that their
performance can be improved and they can contribute well in accomplishing goal of the firm.
The present investigation would shed light on the concept of reward system as well as
recognition towards enhancing the performance as well as increasing retention of the personnel
(Navimipour and Zareie, 2015).
1.5 Significance of study
Every research is carried out with a particular aim. The aim of the present thesis is
towards analysing the use of rewards management to improve performance as recognition for
employees within the senior management. The present study would assist the academician. This
is when carrying out PH.D. The investigation will provide greater deal towards offering
knowledge regarding the impact of rewards system on the performance of personnel. The current
research is very important by this way organizations will get to know difference between rewards
and recognition (Obeidat and Abdallah, 2014). That will support them in identifying the situation
that how rewards system can enhance efficiency of performance of managers and how
recognition can enhance their retention rate. By this way they will be able to measure the
performance of the company and authorities will be able to make strategies so that sustainability
of workers can get improved and they work better in the workplace. Through this study
management level people will get to know about new strategies and techniques that can help in
improving retention rate of its workers (Storey, 2014).
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CHAPTER- 2 LITERATURE REVIEW
2.1 Introduction
This is considered as the most effective section as it act as an aid for the researcher in
determining the gaps that prevails in the past. There is existence of several investigator who have
reflected varied data with respect to phenomenon under the study. In the particular section
various theories have been developed as per the understanding which the author possess (Yang,
Huang and Hsu, 2014). In this section critical analysis will be done on the basis of the past
information on same subject. In the present dissertation the section of literature review will
facilitates in enhancing appropriate knowledge with respect to impact of reward system on the
performance of the employees (Cobb, 2016).
2.2 Concept of reward management and recognition
Reward management deals with the development as well as execution of the strategies as
well as policies which aims at rewarding the people in fair, equitable as well as consistent
manner as per their value to the business. In accordance with the views of Shields and et.al,
(2015) it has been examined that reward management is comprised of analysis as well as control
of the personnel compensation, remuneration as well as other advantages for the employees.
Along with this reward management possess the aim to make creation as well as effectively
operate the structure of reward for the business (Cobb, 2016). The structure associated with the
reward is comprised of the policies as well as practices relating with the pay, total reward,
minimum wage as well as team reward. Entity is required to make changes in its HR policies that
will support in improving condition of the company. It would help in managing the operations
effectively (Bustamam, Teng and Abdullah, 2014). Changes in existing policy is quit easy
because manager can identify loop fall in the practices and can modify specific policies .
Development of new policy is more costly as compare to modifications. Cited firm can
coordinate with all staff members via email, social networking sites, internet, telephonic and can
make them aware with reward system. It would be manageable by corporation and it would be
able to implement suggestion in cost effective ways (Cobb, 2016).
In contrast to this recognition is considered as the action or the procedure associated with
recognizing or being recognized in particular. This has been assessed that recognition is suitable
for the personnel in terms that it is effective in making them feel motivated for the actions that
are being performed by them. As per the views of Bustamam, Teng and Abdullah, (2014) it has
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been examined that both of the aspects are considered as important for the success of the
business.
2.3 Types of rewards
Reward is considered as the pay that is being offered by the personnel to the employees.
This is comprised of packages of pay, benefits, services etc (Njanja and et.al, 20130. Rewards
are being categorized into several forms. This has been enumerated in the manner stated as
under:
Intrinsic rewards and extrinsic reward
Intrinsic rewards are considered as satisfaction which the individual gains from the job
itself. This implies that they are regarded as the factors associated with self actualization and
esteem needs of the personnel (Laguador, De Castro and Portugal, 2014). On the other hand
extrinsic rewards are considered as the advantages that are attained externally. Such are
considered as the rewards which are offered in money terms as well as fringe benefits. These are
results attached with the policies of the management of the firm (Cobb, 2016).
Financial rewards and non financial rewards
In accordance with the views of Presslee, Vance and Webb, (2013) it has been examined
that financial rewards are considered as those payment which can directly or indirectly improves
the well being of the personnel. Financial rewards assist in making the employees sound in
financial terms and assist them in fulfilling their desire. Direct payment is comprised of salary,
wages, commission, bonus, allowances etc. In contrast to this non financial rewards is referred to
as the benefit of the employees that does not improves well being in financial terms (Gopal and
Chowdhury, 2014). However they possess effectiveness in providing job satisfaction to the
employees. It is comprised of preferred lunch hours, parking spaces, desired work assignments
etc (Obeidat and Abdallah, 2014).
Performance based rewards and membership based rewards
Agwu, (2013) asserts that performance based rewards are such benefits that can be
offered based upon the ability of the employee to perform the job. The reward is dependent on
the individual's performance at actual work place. Such kind of rewards are exemplified through
usage of commission, incentive systems, group bonuses etc. However membership based
rewards are one that are being paid based on being member of the firm. This implies basis of
allocation of the reward is personnel's business membership (Cobb, 2016).
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2.3 Importance of reward for performance and recognition for retention
Rewarding the sound performance is considered as essential in managing, motivating as
well as controlling the performance. The reward and recognition strategies can in positive terms
affects the attitude of the personnel (Snelgar, Renard and Venter, 2013). There is presence of
several employees who are being motivated by two targets. This is comprised of earning pay
check as well as performing the work which makes them feel proud. There is presence of greater
importance of reward which is in terms of enhancing the satisfaction among the personnel that
results in increasing the performance to a greater extent. This has been examined that by the
means employee recognition greater number of benefits are being attained by the employees.
This is in terms of increase in the productivity, satisfaction from the job, retention, loyalty, team
culture etc. In accordance with the views of Henderson and et.al, (2014) it has been examined
that staff that is engaged is more productive, works in effective manner as well as proactive for
the sake performing job in an effective manner. In case the efforts are being praised as well as
rewarded then it makes sense that staff member would work harder in order to attain the
recognition from the personnel. As per the views of Brunges and Foley-Brinza, (2014) this has
been determined that recognition of the efforts of the personnel reflects that job which are being
performed is valuable to the organization. It demonstrates that hard work of the employee is
being rewarded and thus it is considered significant. Such makes the personnel feel that they are
making some difference. Higher turnover of the staff results in lowering down the morale which
can make other people look some where else. The time which is needed to determine new staff
impact on the use as well as fiscal cost is higher this retention of the staff is considered priority.
The provision attached with the rewards offers the personnel with the reason that is tangible for
purpose of staying. Entity is required to give reward as per the need of senior management
employees. If it provides rewards as per the requirement then it will help in making them loyal
and increasing their satisfaction level. By this way they will retain in the organisation for longer
duration and will serve better to the entity (Cobb, 2016) .
2.3 Impact of rewards and recognition in increasing performance and retention of senior section
In accordance with the views of Agwu, (2013) it has been examined that employees are
the backbone of the organizations their skills and hard work support in accomplishing the goal of
the companies. It is necessary to make them satisfy for that rewards management is the great tool
through which firms can motivate the persons and can enhance their morale (Cobb, 2016). It
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