Influence of Reward System on Employee Performance at M&S

This report investigates the influence of reward systems on employee performance within the UK retail industry, with a specific focus on Marks and Spencer. It begins by establishing the importance of reward systems for both employees and employers, emphasizing their role in motivation and goal attainment. The report outlines the research background, problem statement, aims, objectives, and rationale, including both individual and professional perspectives. A comprehensive literature review explores the concept of reward systems, different types (monetary, non-monetary, assistance, and recognition), and their impact on employee performance. The review also examines challenges faced by organizations like M&S in implementing effective reward systems, such as aligning rewards with employee needs and addressing performance expectations. The report concludes by highlighting the positive effects of effective reward systems, such as increased employee satisfaction, productivity, and reduced turnover. The report also covers the challenges that companies face while implementing reward systems and their impact on employee performance.

Research
Methodologies

Table of Contents
Introduction......................................................................................................................................3
Background of research...............................................................................................................3
Background of organisation........................................................................................................3
Problem statement.......................................................................................................................3
Rationale of the research.............................................................................................................4
Research questions......................................................................................................................4
Literature Review.............................................................................................................................5
Concept of reward system and employees performance within retail industry..........................5
Different types of reward system used in Marks and Spencer to influence employee's
performance.................................................................................................................................6
Different challenges faced by M&S to implement effective reward system within their
organization.................................................................................................................................7
Impact of reward system on employee's performance of M&S..................................................8
Research methodology ....................................................................................................................8
REFERENCES..............................................................................................................................12
Books and Journals:..................................................................................................................12
Online:.......................................................................................................................................12
Introduction

Research Topic: “Influence of reward system on employee's performance within UK retail
industry”.
Background of research
Reward system is important for both employees and employers within the organisation.
For employees, it is the thing that helps in motivation to perform better and to stay longer in the
company. Whereas, for employers, implementing reward system helps in attaining the targets
and goals in an efficient and effective manner. It is essential to have effective reward system that
ensures that workers and employees will create a strong bond with the organisation. The current
research topic will be based on the identification of impact of reward system that is used within
retail organisation in UK (Adeoye and Obanewo, 2019). Different types of reward system would
be found that works for enhancing the employees' performance. Implementing reward system for
employees also involves different types of challenges so that it would also be researched by the
research practitioner. Lastly, it would also be found the impact of reward system on the
performance of M&S employees.
Background of organisation
Marks and Spencer is one of the multinational brands that is specialised in merchandising
clothes, beauty and home products, as well as food products. The headquarter of company is in
Paddington, London. In 1884, the organisation was established by Michael Marks together with
Thomas Spencer. It has multinational business operations with more than 950 outlets across the
United Kingdom itself. It is found that the company has been severely affected by the impacts of
coronavirus which leads to cut-off jobs in the business. Many employees along with their
performance have been negatively influenced so that it is very much important to implement
effective reward system to improve the employees' performance (Marks & Spencer Group
Plc profile, 2022).
Problem statement
If the company has no effective reward system then it may face different challenges or
problems in maintaining the employees' performance which leads to ineffective goal attainments.
Reward system affects the employees' motivation as well, if they are demotivated towards their
work then it may lead to increase in absenteeism, lower productivity, low job satisfaction, low
morale to perform better and much more. Marks and Spencer also face the challenge in

maintaining their employees performance in the business due to ineffective reward system.
Leaders or managers need to analyse different types of reward system that can impact the
performance of employees.
Research Aim and Objectives
Aim: “To acknowledge the influence of reward system on the performance of employees within
UK retail industry”. A study on Marks and Spencer
Objectives:
 To understand the concept of reward system and employee's performance within UK
retail industry
 To analyse different types of reward system used in Marks and Spencer to influence
employee's performance
 To evaluate different challenges faced by M&S to implement effective reward system
within their organization
 To identify the impact of reward system on employee's performance of M&S
Rationale of the research
The rationale of the current research is based on dual perspectives i.e. individual and
professional. From individual perspective, this research helps in getting the understanding of
reward system that supports employees to provide enhanced productivity in the organisation. It
helps in increasing the knowledge how employees get incentives, promotions or bonus in order
to remain influenced for the work. From professional viewpoint, reward system helps to decrease
the absenteeism rate in the organisation as employee get something for their hard work. It helps
in acknowledging the needs and requirements of employees that affects their work performance
(Kadarusman and Herabadi, 2018).
Research questions
 What is the meaning of reward system along with employee's performance within retail
industry of UK?
 Which reward systems exploited in M&S to influence the performance of employees
within their workplace?
 Elaborate different challenges faced by M&S in the implementation of reward system
within their business.
 Explain the impact of reward system on the performance of employees within M&S.

Literature Review
Concept of reward system and employees performance within retail industry.
As per the point of view of Garland (2020) reward system can be found in different
ways. It can be psychological, monetary or non-monetary rewards that can be utilised by the
company to enhance their employees performance. There are two types of reward systems may
be used in the organisation such as intrinsic or extrinsic reward system (Garland, 2020).
Extrinsic rewards are the schemes used to attract the employees to work better for the
organisation such as enhanced working conditions or financial payments that the employee get as
a part of their work system. Whereas, intrinsic rewards deals with the individual satisfaction that
is derived from actual performance of the job such as a sense of contribution to something,
individual benefit and so on. The following are some key objectives of effective reward system
that works for improving the employees work performance:
 To achieve the business goals by aligning with the individual objectives of the
employees.
 To influence and motivate employees.
 To make sure that the company is able to hire and retain sufficient number of workforce
with the appropriate work habit along with the skills.
 To follow legal regulations.
 To fit into the risk preferences of employees and employers with those of the company.
From the viewpoint of Garrett (2022) an effective reward system of an employee can be
taken as a platform or performance recognition program for supporting the employees master
their skills or work habits and establish themselves up for success. It aims to increase employees
job satisfaction and well-being within the workplace. In most cases, peer-to-peer recognition
used in the organisation in order to avoid top-down approach.
Ways to analyse employees performance:
 Peer-to-peer recognition: It is the process of recognising the employees efforts by the
co-workers. Employees feel more motivated when they are appreciated by their co-
workers. It also aims to improve the employees retention rates and mitigate the turnover
of employees.

 Performance management: This method helps in evaluating the employee performance
within the organisation. It deals to how much contribution is provided by the employees
to the organisation (Garrett, 2022).
From the perspective of Periyasamy (2022) employee performance can be used as a
measurement that shows how well employee is performing in the organisation. It has been
analysed that employee is meeting deadlines or requirements of business or not. Measurement of
employee performance helps in analysing the likely faults in employee training and development
session and leads managers to acknowledge how they can improve it. Many factors influencing
the employee performance such as business culture, employee engagement level along with
training and development program (Periyasamy, 2022).
From the perception of Meilani and Barry (2021) employee performance defines how an
employee fulfils responsibilities of their job role, behaves with the co-workers, completes
requirements of business and so on. It is measured by quality, quantity and efficiency of the work
of employees. It is to be said that high performing employees can be trusted by the organisation
as they provide strong outcomes without much guidance or supervision (Meilani and Barry,
2021).
Different types of reward system used in Marks and Spencer to influence employee's
performance.
From the opinion of Nigusie and Getachew (2019) an employee reward system explains
as a motivation strategy businesses use to support their employees feel encouraged to fulfil their
duties while providing high quality work. A reward can be given to the team members who
accomplish extraordinary work or are an important asset to a group.
Types of reward systems:
 Monetary reward systems: It is based on monetary compensation such as bonus,
increment and so on. It is used to given in the company to look ahead and to work in a
more efficient way to earn it. This kind of reward works suitable for the members who
are influenced by the money. M&S used to provide extra paid time off, reimbursements
and so on.
 Non-monetary reward system: It works for the employees who prefer perks or benefits
rather than bonuses. It helps in increasing productivity of employees, which can support

tasks reach their deadlines early or on time. M&S provides flexible work hours, remote
work system especially after pandemic, opportunities to leave work early and so on.
 Assistance: As per the opinion of Nigusie and Getachew (2019) it is a kind of reward
system where organisation aims to provide support to employees in maintaining their
personal and professional life. It is done by giving benefits to their mental and physical
health (Nigusie and Getachew, 2019). For example, gym membership, on-site visits from
mental health experts and so on.
 Recognition: It is done by sharing or communicating the employee's hard work,
attainments with the entire organisation and in front of their employees. For example,
organisation organised program of “employee of the month” in order to celebrate the
success of employee.
Different challenges faced by M&S to implement effective reward system within their
organization.
As per the opinion of Francis, Zirra, and Mambula (2020) a reward system might be not
understood by people as they are not conscious of the procedure that goes behind the plan,
design and dispersion of the reward system. The same thing are not share effectively to the
people and the involvement and engagement of the line managers are also not addresses in the
procedure either. As an upshot, HR is unable to either maximise or articulate the value of such
rewards to the employees (Francis, Zirra, and Mambula, 2020).
From the perspective of Oestreich, Wright and O'Sullivan (2020) it is a challenge in the
implementation process of effective reward system that rewards are not directly connected to
employees performance. Employees are not clearly understood the expectations of the
employers, not getting the goals established for them and so on. It affects their performance
within the organisation. Thus, it is important for the organisation to focus on such key areas
(Oestreich, Wright and O'Sullivan, 2020).
From the viewpoint of Fakhoury (2021) employee always want a reward that aligns with
their personal needs and not essentially always as per the speculation established by the
organisation. The gap between reality and expectation is a challenge faced by the organisation
while implementing effective reward system (Fakhoury, 2021).

Impact of reward system on employee's performance of M&S
According the viewpoint of Hamlin (2019) an effective reward system helps in making
the employee happier and satisfied with the organisation. It is assumed that happy employees
provide more productivity and contribution to the organisation. When morale is high, it leads to
fall in turnover of employees. Therefore, it can be said that rewards are an essential part of
keeping staff members productive and happy. In retail industry, organisations with engaged
employees have increased revenues and profitability (Hamlin, 2019).
As per the opinion of Taba (2018) an effective reward system is found as much better
strategy than giving punishments to under performers within the organisation. No single working
in the organisation wants to experience pain that comes from being demoted, humiliated or even
fired. It is seen that rewards are far more trenchant than punishments. For example, when
employees are rewarded for something exclusive such as meeting sales objectives within
deadlines, it helps in motivating to perform better in future as well (Taba, 2018).
From the viewpoint of Sferrazzo (2021) a reward may not influence the employee
performance as it can leads to burn out within the organisation . Monetary rewards such as
bonuses tend to reward employees who put extra efforts in their duties and responsibilities of job.
When employees work day and night, even in the weekends may increase the chance of getting
rewards, but this may lead to feel tired and overworked which can lead to health issues such as
obesity (Sferrazzo, 2021).
Research methodology
The researcher takes use of research methodology in order to have the collection, analysis
and managing of data in suitable manner so that investigator can be benefited in selecting data
regarding the particular research topic. The systematic collection of data and information which
helps in resolving research problem is known as research methodology (Atkinson-Sheppard,
2022). It provides the reliable data and suitable methods to complete research for enhancing
reliability & variability. There is use of research onion framework for developing research
strategy by comprising different methods which is used for collecting data.
Research philosophy- It defines the set of beliefs which is concerned with the nature of
study. It is related with assumptions dealing in particular manner for developing knowledge &
process of research topic. There are two types of research philosophy interpretivism and
positivism. The focus of interpretivism is on having understanding of social world as related to

Qualitative analysis while positivism is adhered to opinion factual knowledge as it is associated
with quantitative analysis (Elalouf and Wachtel, 2022). The researcher takes use of positivism
philosophy which benefits in collecting & analysing data related to quantitative to show trends &
patterns in research along with reliability is also maintained.
Research approach- For testing the hypothesis of data researcher take use of this strategy
which comprises steps based on broad assumptions regarding detail method of data analysis,
collection & interpretation. Two types of research approach are involved inductive and
deductive. In inductive approach there is no formulation of hypothesis as it starts with research
question for achieving aim & objective of research. In deductive approach the hypothesis is
formulated which includes testing, theory, observation. The deductive approach is used in the
current study which allows to conduct research in Quantitative manner and provides ability to
conduct research findings.
Research strategy- It describes the step-by-step action plan which involves research topic,
design methods etc. that help in offering direction to thoughts & process of investigator. There is
involvement of various types of strategy such as case study, survey, interview, systematic
literature review etc. The survey is selected by research in its current project as it benefits in
collecting data & information from large population by involving list of questions. It is
considered as cost & time effective method to collect data in easy manner. This also provides
good statistical significance while computing numerical information & data for the research in
effective way.
Research choice- The investigator makes the research choices on the basis of quantitative
and qualitative which is based on research question, formulation. Through survey numeric
statistics is created in quantitative research choice for collecting data. It is easy to collect large
sample data of participants (Lee, 2022). Whereas Qualitative is in the form of descriptions that
deals with subjective & interpretivist viewpoint for having deeper understanding of investigated
situation. The researcher, in present report will use Quantitative choice of research that allows to
collect and analyse numerical information for research. It also contains close ended and
structured data collection.
Time horizon- This defines to time period which researcher is required to complete the
research on time for attaining the overall research aim & objectives. In the research methodology
there are two types of time horizon cross-sectional and longitudinal. In the cross-sectional it is

one that already established and data is gathered just once over periods of weeks or months to
answer research question. In longitudinal the researcher study phenomena at more than one point
to answer research question. For the current research, the researcher will use cross-sectional time
horizon that allows in conducting whole research in minimum time. Up-to-date information can
also be collected associated to research topic as to make reliable & valuable research. There is
also use of Gantt chart.
Data collection and analysis- In data collection suitable data is collected to explain the
research purpose clearly which is part of research method comprising primary & secondary data
collection. The primary data is one which is collected for the first time and consisting of
Quantitative technique. The secondary data is one which includes data collection from past that
is being collected already from someone else through internal & external sources such as
magazines, journals, etc. The researcher in the present research takes use of both the methods
which helps in providing reliable and valid data associated to research topic.
Data analysis is definite as technique which benefits to measure & evaluate the information
collected regarding research topic. For the current research, the investigator will select frequency
distribution data analysis method for evaluating & measuring the data linked to topic of research.
This technique helps in presenting the entire research in well structure manner that can easily be
understood by researcher. It also allows researcher to use graphs & pie charts of frequency
distribution which makes easy to conclude the nature of data collected for the research. In this
research researcher has taken use of questionnaire.
Sampling- It allows researcher to acquire valid outcome as it is defined as statistical
analysis which relies upon small group for collecting data including sample units, observations
etc. Within research methodology there are mainly two kinds of sampling probability and non-
probability sampling (Meihami and Husseini, 2022). Probability sampling is strategy of deriving
sample which is selected from the population based on probability sampling. Non-probability
sampling involves the selection of individual on the basis of non-random criteria which take use
of preliminary research. In the following research, the researcher will select probability sampling
which allows to select respondents randomly from large number of population. The researcher
selects 30 respondents through random sampling as to collect accurate and up-to-date
information regarding the research.

Limitations of research- In the research project there are some limitations while
conducting the research such as limited access to information as the research was based on
Quantitative methodology which lacks in providing in depth understanding of research topic.
The time constraints affect the research as research is considered expensive (Gone, 2022). The
research is considered time consuming and researcher find difficulty in selecting sample size.

REFERENCES
Books and Journals:
Adeoye, A.O. and Obanewo, J.F., 2019. Impact of reward system and fringe benefits on job
satisfaction: Empirical Evidence from Nigeria. University of Defence in Brno Czech
Republic.
Fakhoury, M. ed., 2021. The Brain Reward System. Humana Press.
Francis, F., Zirra, C.T.O. and Mambula, C.J., 2020. Reward System as a Strategy to Enhance
Employees Performance in an Organization. Archives of Business Review–Vol. 8(6).
Garland, E.L., 2020. Psychosocial intervention and the reward system in pain and opioid misuse:
new opportunities and directions. Pain. 161(12). p2659.
Kadarusman, Y.B. and Herabadi, A.G., 2018. Improving sustainable development within
Indonesian palm oil: the importance of the reward system. Sustainable
Development. 26(4). pp422-434.
Meilani, Y.F.C.P. and Barry, R.R., 2021. Reward System, Healthy Organizational Culture to
Employee Performance with Motivation as Mediating in Indonesia’s Higher Education
During Pandemic COVID-19. Jurnal Ad'ministrare. 8(2). pp455-466.
Nigusie, G.T. and Getachew, H., 2019. The effect of reward system on employee
creativity. Journal of Higher Education Service Science and Management
(JoHESSM). 2(1).
Oestreich, L.K., Wright, P. and O'Sullivan, M.J., 2020. Microstructural changes in the reward
system are associated with post-stroke depression. NeuroImage: Clinical. 28. p102360.
Sferrazzo, R., 2021. The ‘Agapic behaviors’: Reconciling organizational citizenship behavior
with the reward system. Humanistic Management Journal. 6(1). pp19-35.
Taba, M.I., 2018. Mediating effect of work performance and organizational commitment in the
relationship between reward system and employees’ work satisfaction. Journal of
Management Development.
Atkinson-Sheppard, S., 2022. Developing Authenticity, Building Connections: Exploring
Research Methodologies in Asia. Asian Journal of Criminology. 17(2). pp.157-174.
Elalouf, A. and Wachtel, G., 2022, March. Queueing problems in emergency departments: a
review of practical approaches and research methodologies. In Operations Research
Forum (Vol. 3, No. 1, pp. 1-46). Springer International Publishing.
Gone, J.P., 2022. Indigenous Research Methodologies: X-Marks in the Age of Community
Accountability and Protection. Qualitative Inquiry. 28(2). pp.164-170.
Lee, J.W., 2022. Translanguaging research methodologies. Research Methods in Applied
Linguistics. 1(1). p.100004.
Meihami, H. and Husseini, F., 2022. Locally-and globally-oriented L2 teacher education
research: A synchronic analysis of topics and research methodologies. Research in
Comparative and International Education. p.17454999221119272.
Online:
Garrett, C., 2022. Employee Reward Systems: 2022 Guide to Recognizing Success At Work.
[Online] Available through: <https://snacknation.com/blog/employee-reward-systems/>
Periyasamy, R., 2022. Employee Performance – 3 Key Factors that will Improve it. [Online]
Available through: <https://www.apty.io/blog/employee-performance-factors>

Hamlin, K., 2019. The Role of a Reward in Employee Motivation. [Online] Available through:
<https://smallbusiness.chron.com/role-reward-employee-motivation-18814.html>
Marks & Spencer Group Plc profile, 2022. [Online] Available through:
<https://www.companieshistory.com/marks-spencer/>