Business Report: Investigating Reward on LEGO Employee Performance

This business report investigates the potential effect of reward systems on employee performance, using LEGO as a case study. It explores the business context, aiming to understand the concept of reward systems, analyze issues impacting employee performance, and examine the benefits of financial rewards. The report covers project questions, current research based on Maslow's hierarchy of needs, and the methodology used, including primary data collection and an interpretivism research philosophy. It also identifies ethical issues faced during the research process and provides a detailed project plan. The report concludes with a section on professional and career development skills, focusing on conflict management, writing, and observational skills, along with references to relevant literature. Overall, the report aims to provide insights into how rewards can impact employee motivation and organizational performance within LEGO.

Business Report
Proposal

1. Report title:
" Investigating the potential effect of reward on employees' performance. A case on LEGO”.
2. Business Context:
According to Gupta, (2013), key to success in an organization totally depends upon
customer satisfaction. Therefore, servicing consumers as per their needs is being considered
as a priority for a company. As firms have kept their focus on consumers but failed to act
upon the satisfaction of the employees of the company. Employees are a very important part
of every organisation. The success, the failure everything of an organisation is based on the
staff members only because if they will perform well then company will grow and earn
profits but if they will perform badly then companies might get closed as well due to bad
performance. So, it is necessary for every company to make sure that their employees are
happy and satisfied so that they give their best performance in the company. Therefore,
company needs to plan to give rewards and compensations to their employees for the hard
work they do for it. In case of Lego, they should also provide their employees with benefits
and compensations other than just salaries as this will motivate them more to give good
performance in the company.
Aim: “ Investigating the potential effect of reward on employees' performance. A case on
LEGO”
Objectives:
 To identify the concept of reward system.
 To analyze the issues which occurs that impacts upon employees performance level.
 To examine the benefits of financial reward system on overall LEGO's performance
level of staff members.

3. Project Questions:
To identify the concept of reward system.
According to Knickrehm, Berthon and Daugherty, (2016), rewards refers to positive
outcomes earned by employees in accordance with their performance. In this context, it is
necessary for LEGO to reward or compensate its employees in accordance with their
outcomes arises from assigned task. There are two types of reward system, first is financial
and second one is non financial. In financial reward system, organization compensate its
employees in terms of money. On the other hand, in non financial reward system includes
motivation from top level managers, guidance and support. In this regard, it help a business
entity in motivating its employees towards achieving their specific goals and objectives.
To analyze the issues which occurs that impacts upon employees performance level.
According to Horlacher and Hess, (2016), it is essential for organization to make its
workforce efficient for increasing their overall performance. There are many issues which
can effect performance level of employees like cultural issue, incentives issue, work
environment issue etc. in this regard, it is necessary for LEGO to provide an appropriate
work environment to their employees and also proper guidance related to their work. This
will help employees of LEGO in getting job satisfaction, which indirectly helps an
organization in retaining its productivity for a longer duration. It is also necessary for the
chosen organization to formulate effective business strategies that will helps employees in
improving their skills and competence regarding their particular task.
To examine the benefits of financial reward system on overall LEGO's performance level
of staff members.
According to Deichmann, Goyal and Mishra, (2016), rewards and compensating employees
will help a business entity in improving overall performance of their workforce in a
competitive business environment. In this regard, it is necessary for leaders of LEGO to
monitor their employees performance with a motive to reward its workforce in according to
the task assigned. The financial reward system will helps organisation in creating a healthy
competitive business environment, which leads in enhancing their overall growth. In this

regard, financial reward system are essential for improving motivation of its employees in
order to achieve their specific aims and objectives.
4. Current/ preliminary research and relevant theory:
Maslow's need hierarchy theory, was introduced in business on 1943 by Abraham Maslow.
This hypothesis is consists with five stages like self actualization, esteem requirements,
belonging and love needs, safety and lastly psychological needs. The Maslow’s need
hierarchy theory will help the management a lot in understanding the needs and demands of
the employees. Thus making them more satisfied with the company. This theory gives the
detailed information about the needs of every person and can tell that whether this employee
will be able to cope up with the same company or not. LEGO can be described as a plastic
toy construction company which is located in Denmark. It is manufactured by The Lego
Group. The kinds of products it is offering to its customers are very much unique and
efficient. According to Audretsch and Belitski, (2017), it can be said that it is very important
to know that the employees who are working in the company are satisfied or not because if
they will not be happy then the company cannot perform well in the market. The potential
effect of the rewards distributed to employees will always be good because of the employees
will get good returns of their hard work done then they will be happy only. Employees
should be made an inseparable part of the company and they should be made feel the same
way as then only they will give their best in the company and will not think of leaving. In the
words of the HR manager of LEGO, it was said that it is important to live up to those
expectations that employees have, whether they are working with us or just joining. From
this, it is clear that LEGO has a strong focus on its employee management because they are
more concerned about the employees then themselves.
5. Method of Inquiry:
In this report, primary method will be used for gathering and collecting accurate data to
conduct this research appropriately. Apart from this, for accumulating relevant data realted
to present case of LEGO, researcher have used deductive investigating approach for

conducting the investigation in specific time frame. Along with this, investigator also
utilized interpretivism research philosophy considering questionnaire as the circumstantial
data collection and qualitative method has been taken for drawing favorable outcomes in
given time. It is a kind of data in which data is being collected for the first time and for
knowing the exact reaction of employees, this method is appropriate but if some more
information is required to be undertaken then the researcher should make use of secondary
data as it is kind of method in which the data has already been collected by people and been
used in previous researches as well. This type of data can be gathered through books, online
websites, newspapers, journals etc.
6. Identify ethical issues that you might face:
While going through the investigation, researcher faced a number of ethical issues at the
time of developing the research report. While going through internet, there were many
official websites that contained unethical information related to staff and many disrupted
scandals as well related to them. As an investigator, I took information from those sources
which were not creating any sort of discrimination or putting impact upon belief of society.
Implementing the research like the data which is collected by researcher from a website
might not be authenticated or the survey is not conducted in an ethical manner. It is very
necessary to make sure that the approaches that are used by the researcher for conducting the
research should be authenticated as otherwise it may not be considered ethical. Also, it is
required to ensure that no data is leaked from the research conducted to the third party as
there are high chances that it might be used in a wrong way.

7. Planning:
Activities/
weeks
1 2 3 4 5 6 7 8 9 10 11 12
Research
proposal
Determinin
g research
aims and
objectives
Prepare
research
questions
Literature
review
Research
methodolog
y
Questionnai
re
Data
analysis
Conclusion
Recommen
dations
Final
submission

8. Professional and career development skills:
Area of development Action Plan Target Date
Conflict management skills In order to develop this skill,
I will have to take part in
various arguments that are
talking place in the
organisation and understand
the main reason behind its
happening because then only
I will be able to manage the
conflict that is happening in
the company.
22nd December 2018
Writing skills For developing this skill, I
will have to write down 5
pages on any topic daily
because then only I will be
able to develop my speed of
writing and improve my
grammar skills as well
simultaneously.
27th January 2019
Observational skills I will have to read all the
minute details that is
associated with the research
because then only I will come
to know of the changes that
are happening in the research.
25th February 2019
9. References:
Books and journals
Audretsch, D. B. and Belitski, M., 2017. Entrepreneurial ecosystems in cities: establishing

the framework conditions. The Journal of Technology Transfer. 42(5). pp.1030-
1051.
Deichmann, U., Goyal, A. and Mishra, D., 2016. Will digital technologies transform
agriculture in developing countries?. Agricultural Economics. 47(S1). pp.21-33.
Horlacher, A. and Hess, T., 2016, January. What does a Chief Digital Officer do?
Managerial tasks and roles of a new C-level position in the context of digital
transformation. In System Sciences (HICSS), 2016 49th Hawaii International
Conference on (pp. 5126-5135). IEEE.
Knickrehm, M., Berthon, B. and Daugherty, P., 2016. Digital disruption: The growth
multiplier. Accenture Strategy, Tech. Rep.
Li, W. and et. al., 2016. e-Leadership through strategic alignment: an empirical study of
small-and medium-sized enterprises in the digital age. Journal of Information
Technology. 31(2). pp.185-206.
Mazzei, M. J., Flynn, C. B. and Haynie, J. J., 2016. Moving beyond initial success:
Promoting innovation in small businesses through high-performance work
practices. Business Horizons. 59(1). pp.51-60.
Tapscott, D. and Tapscott, A., 2016. Blockchain revolution: how the technology behind
bitcoin is changing money, business, and the world. Penguin.
Online:
Inside LEGO Group’s employee experience. 2018. Online. Available through :<
https://www.insidehr.com.au/4-ingredients-lego-employee-experience/>.