Impact of Reward System on Marriott Hotel Employee Performance Report

This report investigates the impact of reward systems on employee performance within Marriott Hotel. It explores the influence of both intrinsic and extrinsic rewards on employee motivation, job satisfaction, and overall performance. The study employs a mixed-methods approach, including primary and secondary data collection through questionnaires and literature review, with a focus on quantitative data analysis using SPSS. The research aims to identify the most effective reward strategies for enhancing employee performance and retention within the hotel industry. The report examines various reward methods, such as monetary and non-monetary incentives, and their effects on employee behavior and organizational success. Findings indicate a positive correlation between effective reward systems and improved employee performance, with recommendations for enhancing employee engagement and development through training and other initiatives. The study also highlights the importance of aligning reward systems with employee needs to foster a motivated and dedicated workforce, ultimately contributing to the hotel's growth and competitive advantage.

WHAT IS THE IMPACT OF REWARD SYSTEM
ON THE EMPLOYEE PERFORMANCE OF
MARRIOTT HOTEL

ACKNOWLEDGEMENT
I would like to impart my sincere thanks to mentor who provided me immense support in
completion of study. The support provided by my team members was also appreciable which
assisted me throughout data collection process. In addition to this, I would also like to say thanks
to my friends who supported me in collecting and analyzing the data in the light of research aim
and objectives. I could not have completed the study on time without support of all involved
parties.
2

ABSTRACT
The reward system in hotel industry is very important where workforce feel that
management respect for their workforce. Different types of reward systems are used in service
industry for motivating and retaining workforce for longer time span. Here, study has been done
on Marriott hotel for investing the impact of reward system on employee performance. The
organization uses different strategies in context of increasing level of motivation among its
workforce so that customer services can be improved with immediate effect.
The study is based on collection of both primary and secondary data for which different
sources were used. At this juncture, data collection has been done accordingly quantitative aspect
wherein SPSS used. Furthermore, purposive sampling has been used for selecting employees of
Marriott hotel. In addition to this, descriptive research design has been used for collection of data
and present the outcome of study in right manner. Apart from this, interpretivism philosophy is
used in the study thereby researcher can interpret the data effectively and draw meaningful
outcome from the same.
The collected data are analyzed and bring forth outcome that reward system is very
important for higher rate of return and motivation of employees. This enables organization to
meet expectations of individual buyers and retain them. Furthermore, workforce found satisfied
with different different reward policies of hotel. It support management to keep its workforce
highly motivated and dedicated towards organization growth and success. However, suggestions
are provided for management to increase level of motivation through effective practices like
employee engagement, training and development.
3

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................6
1.1 Background............................................................................................................................6
1.2 Research aim and objectives..................................................................................................7
1.3 Significance of study.............................................................................................................8
1.4 Rationale of the study............................................................................................................8
1.5 Structure of study...................................................................................................................8
1.6 Conclusion.............................................................................................................................9
CHAPTER 2: LITERATURE REVIEW.......................................................................................11
2.1 Introduction..........................................................................................................................11
2.2 Impact of intrinsic and extrinsic rewards on the employee’s performance.........................11
2.3 Importance of rewards systems for the hotels like Marriott hotel.......................................13
2.4 Conclusion...........................................................................................................................16
CHAPTER 3: RESEARCH METHODOLOGY ..........................................................................20
3.1 Introduction..........................................................................................................................20
3.2 Research philosophy............................................................................................................20
3.3 Research approach ..............................................................................................................20
3.7 Sampling design...................................................................................................................21
3.4 Research design and strategy...............................................................................................21
3.5 Data collection methods.......................................................................................................22
3.6 Data analysis .......................................................................................................................22
3.8 Validity and reliability.........................................................................................................23
3.9 Ethical consideration ...........................................................................................................23
3.10 Conclusion.........................................................................................................................24
CHAPTER 4: DATA ANALYSIS................................................................................................25
4.1 Introduction..........................................................................................................................25
4.2 Analysis of data...................................................................................................................25
Conclusion.................................................................................................................................36
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................37
5.1 Conclusion...........................................................................................................................37
5.2 Recommendations................................................................................................................38
REFERENCES..............................................................................................................................40
APPPENDIX: QUESTIONNAIRE...............................................................................................44
4

5

CHAPTER 1: INTRODUCTION
1.1 Background
Employee motivation refers to the process of identifying the need of workforce and
satisfying the same by adopting suitable strategies. Employees are the most precious assets for
the corporation because of their contribution towards delivering services to the end users.
Reward system is important for efficient performance of employees (Fard, Ghatari and Hasiri,
2010). It would be better to say that reward system and employees performance have positive
relationship with each other. If company uses effective reward system then there will be effective
workforce performance. It is because workforce gets motivation from these different processes
(Antoncic and Antoncic, 2011). Reward management is an imperative aspect of human resource
department of the corporation which leads to increase the satisfaction level of personnel (Rich,
Lepine and Crawford, 2010). Basically, reward system consists of different strategies of
company for influencing workforce behavior in a positive manner. It is very important for the
corporation to motivate employees in order to complete target on right time. Motivation among
employees tends to enhance job satisfaction so that corporation can easily retain them for a
longer time span (UK hotels forecast 2016 - Growth is in the air, 2016).
Sustainable competitive edge can be created for business only with the help of human
resources department. Such department ensures that company is using effective practices for
motivating its human resources and for generating a positive attitude among them so as to
contribute towards the growth and success of company (UK hotel occupancy at record high as
PwC predicts growth in 2016, 2015). Various available literature and studies also conclude the
same that reward system tends to affect the performance of employees in positive aspect.
Generally, two types of rewards are used to motivate employees such as monetary and non-
monetary (Panagiotakopoulos, 2013). However, it is very important to assess the need of
workforce and accordingly, meet the same. Furthermore, performance is linked with several
other aspects such as job satisfaction and appropriate working conditions (Banjoko, 2010).
Owing to this, management of corporation can take reviews from personnel and accordingly,
meet their expectations in an effectual manner. Success of corporation is based on highly
competent workforce and their level of motivation. Through this, company tends to beat
6

competition in an effective manner and creates lasting impression at the international level
(Incentive and motivation, 2012).
The present dissertation is based on Marriott hotel which provides a wide range of
services related to lodging facilities. It has approximate 4087 properties over 80 countries. In
2014, corporation opened its 4000th hotel in Marriott Marquis in Washington. This company
operates in many countries; hence it adopts effective organizational culture to attract more
employees (Why employees love staying at Marriott, 2016). Organization uses effective reward
system due to which personnel can work with integrity in the direction of growth and success of
the firm. In addition to this, corporation ensures inclusion of effective motivation techniques
through which employees work in team with the better coordination (Hafiza, Shah, Jamseheed
and Zamam, 2011).
1.2 Research aim and objectives
Research aim and objectives for the study have been formulated as follows-
Aim- To investigate the impact of reward system on the employee performance - Case study of
Marriott hotel
Objectives of study have been formulated in accordance with the research aim. It assists
researcher to select methods of data collection. These objectives are as follows-
 To analyze the impact of intrinsic and extrinsic rewards on the employee’s performance.
 To evaluate the importance of rewards systems for the hotels like Marriott hotel. To ascertain the methods of rewards through which employees can be motivated.
Research question:
Research questions for the study are listed as follows-
 What motivate the employees of Marriott?
 What is the impact of reward system on employee performance of Marriott hotel?
 What is the importance of reward system in Marriott hotel?
 What improvements can be made in the existing reward system?
7

1.3 Significance of study
Reward system tends to affect the employee performance to a great extent. The present
study will explore the suitability of different reward systems on the performance of workforce. It
leads to assess the impact of alternative reward policy on work or output. This way organization
comes to know regarding the most suitable method through which motivation level can be
increased. Furthermore, study assesses the importance of reward system for achieving the
organizational growth. This way study contributes towards the development of hotel industry and
retention of workforce for longer time span. Apart from this, current dissertation can also be
fruitful for other industries like retail where employee turnover is the major issue. In addition to
this, the study on “assessment of impact of reward system on employees” is supportive for
scholars who are conducting their thesis in the same field. In addition to this, those who are
associated with the field of literature review will also get benefited from this study. Therefore,
the present study is significant in many aspects and helps in resolving many of organizational
issues.
1.4 Rationale of the study
In the current scenario, success of employee oriented industry like hotel is highly based
on motivation among workforce. It is because hotels generally have long working hours and
demand of large number of personnel in order to cater the need of buyers. Furthermore,
increasing competition in the hotel industry makes it impossible for corporation to retain
workforce for longer time span. Thus, issue of high attrition rate takes place that affects the
overall performance of organization to a great extent. Owing to this, current study is being done
to gain better understanding of suitable reward system and its potential impact on the
performance of employees. Furthermore, study will analyze the impact of reward system on
performance. Accordingly, corporation can resolve its issues to ensure its long term growth and
success in the marketplace.
1.5 Structure of study
Structure of study is very important for scholar which provides guidelines to complete
dissertation on right time. Thus, layout of current dissertation will be as follows-
Chapter 1: Introduction
8

It is the first chapter of study which consists of important information related to topic
under investigation. Under this, researcher provides brief overview regarding the organization
selected in the study as well as its practices in the light of employee performance and reward
system. It includes overviews of study/ background, research aim and objectives as well as
rationales.
Chapter 2: Literature review
This chapter begins at the completion of introduction because researcher finishes this
section in accordance with research aim and objectives. It is the main chapter under which
secondary data or studies related to topic are reviewed. It facilitates to develop deep
understanding related to aspects considered in the dissertation.
Chapter 3: Research methodology
This is the third chapter of study wherein researcher highlights different methodologies
included in the study. It includes details related to research approach, type of investigation, data
collection methods and analysis of the same. This aspect assists the researcher to apply right kind
of tools for data collection and analysis. This way scholar reaches to the end results and provides
valid recommendations for the study.
Chapter 4: Data analysis
This chapter analyzes the collected primary and secondary data in accordance with
formulated research aim and objectives. Under this, scholar applies effective tools to present the
findings of study in an appropriate manner and provides convenience to the readers for
interpreting results. In this way, findings are presented in a structured form and accordingly
conclusion of study can be drawn in an effectual manner.
Chapter 5: Conclusion and recommendation
The last chapter of study is of conclusion and recommendations under which researcher
highlights key terms of research. Recommendations are given as per the drawn conclusion and
collected data.
1.6 Conclusion
The introduction chapter concludes that reward system has positive relationship with
performance of workforce. This has been critically analyzed in the background of study which
leads to accomplish research aim effectively. Furthermore, layout of research has been explained
9

in an appropriate manner which support researcher to present the outcome of study. Furthermore,
it can also be said that significance of study is given by stating role of reward policy in different
aspects sch as corporate, academic and other industrial areas.
10

CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
It is the most important chapter of dissertation which consists of detail information
related to secondary data. This provides in-depth knowledge regarding topic under investigation
through which researcher can easily draw valid conclusion of the study. This chapter is based on
key objectives prepared in introduction chapter. It assists scholar to gather large amount of
information and accordingly provide overview regarding importance of different kinds of
rewards on performance of workforce. This chapter basically develop deep understand of scholar
for research issue. In addition to this, for completion of this chapter researcher refers studies
done previously on the same topic.
2.2 Impact of intrinsic and extrinsic rewards on the employee’s performance
Reward is the form of benefits given to employees for attainment of long as well as short
term objectives of corporation. It assists employees to focus on their work in better manner
because they feel that their efforts are valued by corporation. According to Danish and Usman
(2010) it is the very important for corporation working in hotel industry to avail rewards. It helps
to generate positive attitude among them and enables them to determine long run growth and
success of organization. Thus, employees working in hotel industry are offered two kinds of
rewards such as intrinsic and extrinsic rewards in order to meet their expectations effectively.
Here, the extrinsic rewards is the form of financial whereas intrinsic is non-financial reward. The
most common forms of extrinsic rewards are; incentive, fringe benefits and pay related and
promotion.
Perry, Hondeghem and Wise (2010) asserted that hotel industry offer monetary or
extrinsic rewards for its employees to a great extent. This is because of creating their interest
towards work and shifting their focus on quality of services. The commitment of workforce is
decided just by their level of motivation and job satisfaction. It reflects that reward policy has
direct relation with workforce commitment and their work pattern which tends to be beneficial
for hotels.
Rich, Lepine and Crawford (2010) reported that extrinsic reward is generally associated
with financial term. It reflects that workforce is offered benefits in the form of bonuses,
11

increment in salary and others. Here, further states that monetary benefits may not motivate
employees at some point of time but still its absence can surely de-motivate them. Owing to this,
organization can easily achieve its goal by providing monetary reward to workforce. It enables
management to carry out all activities of corporation effectively and deliver end results to users
of services.
Kehoe and Wright (2013) explained that, workforce devotes their valuable time in
increasing organizational efficiency and in turn management offers them benefits so as to make
them feel good at workplace. This scenario proves to be effective in employee’s retention and
boosting their morale. He further explained that, employees perform as per their commitment
and if they get success then job satisfaction exist among them. Jiang and et. al., (2012) presented
that reward system is the greatest tool of management thereby appraise performance of
workforce. Under this two main aspects are considered such as incentive motivation and
performance growth motivation. These two are derived from effective management of
performance of motivation among employees.
Paarlberg and Lavigna (2010) reported that rewards can be individual or group based. In
hotel industry individual rewards and group based both matter a lot due to increasing growth
potential of company. Here, individual rewards id judged against set criteria at individual level
whereas group performance is approach in accordance with list of criteria set by management in
advance. These criteria consist of time, customer satisfaction, increased sales turnover and high
profitability. At this juncture, workforce is provided performance based salary increment, short
or long term incentive plans. Accordingly there will be positive impact on performance of
workforce and they tend to focus on their targets more attentively.
According to Hassan, (2010), for providing rewards, management or HR department
needs to focus on the expectations of workforce so that accordingly, reward or motivation
strategies can be formulated. In this respect monetary reward are offered in accordance with
short term objectives where management expect certain commitments from employees. On the
other hand, for long term motivation of employee’s integration of monetary and non-monetary
rewards become necessary. This way system process of rewards system facilitates to manage
performance of employees in an effectual manner.
12