Non-Financial Rewards & Employee Performance

This report investigates the impact of non-financial rewards on employee performance at Marriott Hotels in London. Using a mixed-methods approach (primary data from a questionnaire of 20 Marriott employees and secondary data from academic literature), the report explores the relationship between non-monetary rewards (promotion, recognition, training, etc.) and employee motivation, satisfaction, and performance. The findings suggest a strong positive correlation between non-financial rewards and employee performance, indicating that these rewards significantly contribute to employee motivation, job satisfaction, and overall productivity. The report concludes with recommendations for Marriott to further optimize its reward system and enhance employee performance, including improving feedback mechanisms, providing more opportunities for growth and development, and ensuring equitable reward distribution.

To assess the impact of non- financial rewards on
the performance of employees - A case study on
Marriott, London.
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ACKNOWLEDGEMENT
I am very thankful to those people which has provided me support and has motivated me
to complete my project. I owe my thanks to mentor who have provide me the chance to do this
study. In addition to this, I am also very thankful to my friends and family as without their
cooperation it was not possible to carry out this dissertation. The support and motivation of all
has results in accomplishment of the aim and objectives of study.

ABSTRACT
Every organization seeks for the ways using which employee's performance can be
enhanced. Therefore, it is very essential for companies to determine the impact non-financial
rewards on overall performance of employee. This will assist in making the people in
organization more effective and efficiency. The aim of this study to assess the impact of non-
financial rewards on performance of employee. Further this dissertation depicts about the
relationship between the both and the role of non-financial rewards in motivating employees
within workplace.
In terms of research methodologies it can be stated that the data has been collected from
both primary and secondary sources. Primary data has been collected with the help of a well-
structured questionnaire which has been filled by 20 employees of Marriott. In addition to this,
qualitative method of data analysis is used in which various themes are developed in order to
evaluate and interpret the information. The last part of this dissertation is conclusion where it has
been stated that non-financial rewards have direct impact on the performance of employee. Some
of the recommendations to Marriott are also provided which can be used by the hotel for its
future growth and development.

TABLE OF CONTENTS
Chapter 1- Introduction....................................................................................................................5
1.1 Background of the study........................................................................................................5
1.2 Background of organization...................................................................................................6
1.3 Aim and Objectives...............................................................................................................7
1.4 Rational of the Study.............................................................................................................7
1.5 Significance of the research...................................................................................................7
1.6 Analysis and framework........................................................................................................8
1.7 Structure of the dissertation...................................................................................................8
chapter 2- Literature review...........................................................................................................10
2.1 Role of non-monetary rewards on motivating employees...................................................10
2.2 Link between employee performance and non-financial rewards.......................................12
2.3 Role of non-financial rewards in growth and development of an organization...................14
2.4 Techniques adopted by hospitality companies to enhance employee performance............17
Chapter 3-Research methodologies...............................................................................................19
3.1 Research philosophy............................................................................................................19
3.2 Research approach...............................................................................................................19
3.3 Research design...................................................................................................................20
3.4 Data collection.....................................................................................................................20
3.5 Research method..................................................................................................................21
3.6 Sampling..............................................................................................................................21
3.7 Ethical issues........................................................................................................................22
3.8 Reliability and validity.........................................................................................................22
3.9 Limitations...........................................................................................................................23
3.10 Appropriateness of research design...................................................................................23
Chapter4-Data presentation and findings.......................................................................................24
Chapter5: Data analysis and discussion.........................................................................................33
Chapter6: Conclusion and recommendation..................................................................................41
6.1 Conclusion...........................................................................................................................41
6.1 Recommendations................................................................................................................43
References......................................................................................................................................45
Appendix........................................................................................................................................49

CHAPTER 1- INTRODUCTION
1.1 Background of the study
Managing and improving employee’s performance is one of the most difficult tasks for
the management of organization. Every company seeks for the ways through which it can
improve the performance of employees and make them more productive. Main reason behind
this is that it not only helps a business to increase their sales and profitability but also enhances
their chances of future growth and development. Earlier, monetary rewards were the only thing
which was used by companies to enhance the performance of employees. Along with the passage
of time, there are some of the non-financial rewards which have been developed to motivate
people in organization and to enhance their performance. Many companies have started using
some non-financial rewards such as appreciation and recognition in order to motivate the
employees and for encouraging them to perform well in the future.
It is important for companies to recognize and appreciate the efforts of employees in
order to create satisfaction among them. It is required by every business to understand the needs
and expectations of its employees and making initiatives to satisfy them. It has been witnessed
that some employees directly get motivated with monetary rewards but usually employees that
are working at higher or middle level of organization are also interested in some of the non-
financial rewards. Every individual seeks for adequate opportunities for his growth and
development. Thus, companies are also required to provide training and development sessions to
workers in order to improve their skills and overall performance. Non-financial rewards are also
termed as intrinsic rewards and are termed as one of the best ways to encourage people in the
organization. Further, with the help of such kind of rewards, employees feel committed and
accomplish the given task in an effective manner. When efforts of workers are not appreciated
and recognized by management then it directly results in lowering down their morale and also
creates dissatisfaction among them. In addition to this, there are some serious issues which
organizations face such as high employee turnover, lower sales and profitability, reduction in
market share etc.
Efforts of workers have a direct impact on the overall performance of employees and
thus, every business is required to take care of their needs and demand. It has been observed that
money cannot fully satisfy the needs of people in company. Employees also possess some

psychological needs and organizations are required to understand this fact. Hard-working
workers get more satisfaction from non-financial rewards as compared to monetary rewards
provided to them. Further, rather than looking for bonus and incentives, they always seek for
recognition and appreciation of their efforts from the management of companies. Employees of
all ages and at all levels of organization strive for some intrinsic rewards along with the financial
rewards in order to perform well in the future. Thus, every business needs to ensure the fact that
both kinds of rewards are provided to the people in firm. This helps in lowering down the rate of
employee turnover and will also assist companies to achieve their aim and objectives in an
effective manner.
1.2 Background of organization
Marriott is one of the leading and most famous international chains of hotels. It offers
services of hotels and resorts in more than 80 countries of the world. Currently, the brand is
having a workforce of around 2, 00,000 employees. Thus, it is not easy for the hotel to manage
and retain employees at such a big level. It operates in hospitality sector which is highly
competitive and Marriott faces intense competition from the hotel such as Hilton and
Intercontinental hotel group. The hotel provides a wide variety of monetary and non-monetary
rewards which help in creating satisfaction among its employees and encourage them to perform
in a better way in the future. Further, at regular intervals, the efforts of workers are recognized
and appreciated by the management of hotel. This directly results in enhancing the overall
performance of employees and also helps in delivering fast, accurate and satisfactory services to
the guests. In hospitality sector, it is not easy for hotels to retain their customers and it can be
only done with the help of delivering satisfactory services to guests. Thus, Marriott has always
ensured the fact that its employees stay motivated and can deliver better services to customers.
Other than this, the hotels always try to provide flexible working hours and positive work
environment along with some monetary rewards to its staff members. This directly contributes in
boosting up the morale of employees and improves their performance as well. Maintaining and
managing employee’s performance has always been a crucial aspect for every business that
operates in the hospitality sector. Further, with the emergence of globalization, companies have
become more responsive towards their employees and take care of their each and every aspect.
The reward system of Marriott shapes its culture and also determines the behaviour of people in
hotel.

1.3 Aim and Objectives
Aim:
To assess the impact of non- financial rewards on the performance of employees - A case
study on Marriott, London.
Objectives:
 To identify the role of non-monetary rewards on motivation level of employees.
 To determine the link between employee’s performance and non-monetary rewards.
 To assess the significance of non- financial rewards in growth and development of
workforce within Marriott.
 To recommend the ways through which Marriott can enhance the performance of its
employees.
1.4 Rational of the Study
In the modern era, employees are termed as one of the most valuable asset of any
organization. It has been found that hospitality sector is one of the leading and growing sectors
of the world. Along with the growth, it also experiences a high rate of employee turnover. Some
of the major reasons behind this are low pat grade and inappropriate work timings. The main
reason behind selection of this organization is that Marriott is one of the leading international
chains of hotels which operate in many countries of the world. Thus, it will help to assess the
impact of non-monetary rewards on the overall performance of employees. Other than this, the
study will also make adequate contribution in the part of literature. The results and findings of
study will help the managers of businesses that are operating in hospitality industry to improve
the performance of employees with the help of some non-financial rewards. Further, it will also
assist in some of the academic areas which are related to employees in the hospitality industry.
Overall, it will help in exploring some of the new ways by using of which employee’s
performance can be enhanced and their efficiency can be increased.
1.5 Significance of the research
The entire study which has been carried out is useful at both academic and business level.
Further on academic level it can be used by various students, lecturers and teachers in order to
gain in depth knowledge regarding the role of non-financial rewards on overall performance of

employees. The study cover various aspects and ways using which employer can improve the
productivity and performance of their businesses. On the other hand, on corporate level the
findings of study can be help businesses operating in hospitality sector to become aware about
the role of non-monetary rewards. In addition to this, with the help of this managers can become
aware about several ways using which they can enhance performance of their employees and
make them more productive. Thus, it can be stated that this research is very helpful for corporate
level as well as on academic level.
1.6 Analysis and framework
The present study is in descriptive in nature where in the main of aim is to describe the
impact of non-financial rewards on performance of employees. Therefore, this research will help
in identification of the fact that how performance and overall productivity of people in
organization can be enhanced by using some non-monetary rewards. Other than this, inductive
approach has been used in this research as the findings will move from specific to generalized
form. The data has been collected from both primary and secondary sources. The primary
information is gathered with the help of a well-structured questionnaire which has been filled
from 5 service managers of Marriott. Positivism research philosophy has been used in this study
in order to get desired outcomes. On the other hand various books, online sources and journals
has been taken into consideration in order to collect secondary data. Both the sources have
assisted in collecting relevant information about the topic and has also helped in getting desired
outcomes. Purposive sampling has been used in this method in which the sample size is 20
employees of Marriott hotel. The data analysis is qualitative in nature as various themes has been
developed to interpret and analyse the information collected from primary sources.
1.7 Structure of the dissertation
Every researcher is required to adopt a suitable structure in order to carry out the study in
an effective manner and to get the desired outcomes. It provides a brief overview of complete
study which has been carried out. The proper structure of this dissertation is mentioned below as:
Chapter 1: Introduction
It is the first and most important chapter of study as it provides a brief idea about the
topic which has been selected for the research. Further, it also highlights some of the tools and
techniques which are used to carry out the study in the desired manner. Aim, objectives,

background of research, background of organization and rational are some of the important
topics which are covered in this chapter of the study.
Chapter 2: Literature review
This chapter plays a significant role in the overall success of research. Further, it reflects
the ideas, views and opinions of various authors regarding the topic of study. It can be stated that
this chapter plays an important role in completing the research as it directly contributes in the
achievement of its aim and objectives.
Chapter 3: Research Methodologies
Research methodologies are the chapter in dissertation which highlights the tools and
techniques which are used during research. It is required by every researcher to use suitable and
the most appropriate methodologies in order to carry out the investigation in an effective manner
and to get the desired results. Data collection, research philosophy, research approach, design,
data collection, ethical issues, reliability and validity are some of the major areas which are
covered in this chapter of dissertation.
Chapter 6: Data presentation and findings
Data presentation is the section of a dissertation in which all the information which has
been collected from various sources are presented. Further table and graphs are used in this
section to determine some correct findings and achieve the aim and objectives of the research.
Chapter 5: Data analysis
Data analysis is termed as one of the most important chapters of dissertation in which the
information collected from various kinds of primary sources is evaluated. Different themes are
developed in this chapter so that the information can be analyzed and the aim and objectives can
be achieved easily.
Chapter 6: Conclusion and Recommendation
It is the last and final chapter of study in which the entire findings regarding research are
concluded. It is also termed as one of the important chapters as in this, the researcher tries to
identify whether the aim and objectives of study has been achieved successfully or not. Other

than this, recommendations are provided to the organization which has been selected for the
research.

CHAPTER 2- LITERATURE REVIEW
Literature review is the second chapter of dissertation and it is termed as one of the most
crucial part of a dissertation. Further it highlights the view and opinions of various authors and
writers regarding the topic of the study. It helps a research to have a in- depth analysis of the
topic and accomplish the aim and objective in more effective manner. In addition to this,
literature review also help in gathering adequate and desired information for the study. Role of
non-monetary rewards in motivating employees, Link between employee performance and non-
financial rewards Role of non-financial rewards in growth and development of an organization,
Techniques adopted by hospitality companies to enhance employee performance are some of the
major topic covered in this part.
2.1 Role of non-monetary rewards on motivating employees
As per the views of Gagne and Deci, (2005) motivation can be termed as the method
which is used to encourage the employees and lead them to perform in a way which results in
rewards (Gagné and Deci, 2005). In the present scenario, reward system in an organization plays
an important role as it directly influences the behaviour of people. Every employee expects some
sort of monetary and non-monetary rewards against the efforts and services which they have
provided. In accordance with Akerlof and Kranton, (2005) one of the best to create satisfaction
among employees is by motivating them and taking care of their need and demand (Akerlof and
Kranton, 2005). It has been observed that the rewards system has direct impact on the overall
performance and motivational level of workers. Organizations find it very difficult to retain their
employees in the present scenario. Further, companies adopt various monetary and non-financial
techniques to boost up the morale and encourage them to work better in future.
In this aspect, various theories have been developed which helps businesses to identify
the ways by using of which it can motivate its employees. Maslow’s need hierarchy theory is one
of the most renowned and used theory. As per the views of Lin, (2007) theory is very true as it
covers both monetary and non-monetary rewards in order to motivate the employees (Lin, 2007).
Further, according to this theory, organizations need to understand that the needs and
expectations of employees that are working at different levels and different. Many organizations
fail to encourage the employees because they feel that the needs of each and every employee are
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same (Gagne and Deci, 2005). Workers at lower level always look for satisfying their
physiological and security needs whereas managers working at middle level seek for the
accomplishment of their social and esteem needs. Other than this, people at top level
management can be motivated by satisfying the needs of self-actualization.
Perry, Meschand Paarlberg, (2006) has stated that it is not necessary that all people in the
organization get motivated with monetary rewards (Perry, Meschand Paarlberg, 2006). Now a
day, along with such kind of rewards, employees also seek for non-financial rewards such as
caring attitude form employers, appreciation and recognition of their efforts. The relationship
between employer and employee determines the performance level of employees. Healthy
relation always results in the desired and positive outcomes whereas bad relation directly results
in getting the unfavourable outcomes. Delfgaauw and Dur, (2007) has observed that with the
help of non-financial rewards, organizations not only boost up the morale of people in company
but also increases the sales and profitability (Delfgaauw and Dur, 2007). A team of motivated
and productive employees directly helps businesses to achieve the competitive advantage. The
competition among businesses has become so intense that without effective workforce,
companies cannot survive in long run without achieving edge over other market players.
However De Jong and Den Hartog, (2007) argued that it is not easy for the organizations to
determine the ways by using of which it can create satisfaction among employees and encourage
them to perform better (De Jong and Den Hartog, 2007). In accordance with Bassett-Jone and
Lloyd, (2005) many of the public sector firms, enterprises have started to use non-financial
rewards as a source of motivating employees (Bassett-Jones and Lloyd, 2005).
Rewarding the employees against their performance is not an easy task and companies
are required to take care of various things. At the time of recognition and appreciation,
organization should not be biased and it should treat all workers equally. Main aim of non-
financial rewards is to appreciate the efforts of employees and encourage them to work in a
better way in future (De Jong and Den Hartog, 2007). The working hours provided by companies
also determine the degree of employee motivation. It has been observed that those organizations
which provided flexible working hours have highly motivated the employees (Improve
performance at work, 2015). Thus, it can be stated that flexible and comfortable working hours
can be a very good source of non-financial rewards which can be provided to employees. In
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