Research Report: The Impact of Reward Systems on Employee Productivity

This research report investigates the significant impact of reward systems on employee productivity within organizations. The study explores various aspects, including the introduction of reward systems, the problems addressed, and the benefits realized by companies. It details the aims, objectives, and scope of the project, emphasizing the importance of employee motivation and its correlation with production levels. The report outlines key deliverables, potential risks, and a comprehensive work plan involving baseline surveys, workforce recruitment and training, and stakeholder engagement. The research employs descriptive research methods and flexible research designs, utilizing diverse data collection techniques such as case studies, observations, and surveys. The findings highlight the crucial role of rewards in enhancing employee loyalty, dedication, and overall performance, while acknowledging the limitations of solely relying on external incentives. The report provides valuable insights for businesses aiming to optimize human resource management and boost productivity through effective reward strategies.

Research Methodologies 1
THE IMPACT OF REWARD SYSTEM ON EMPLOYEES PRODUCTIVITY
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RESEARCH METHODOLOGIES 2
Introduction
The reward has generally been embraced in many companies and organizations. In line with
working conditions, employee's rewards are critical in overturning events at a company. This is
something that should not be underrated by employers if at all, they look forward to reaping
much from their investments. When there are proper mechanisms on how to reward employees,
then definitely this is the best way of increasing employees' motivation in the areas of work.
Every company should come up with the best ways in which they can reward the employees.
This should be developed into policies within the company on the best practices and mechanisms
in which employees are appreciated. When a company embraces reward systems, then this
becomes the best-desired ways in which a company can always motivate employees during and
after working hard. A company that has a proper reward system will always attract better
employees as well as prominent ones. The high retention rate of good employees is a recipe for
high production in a company. A performing company has a developed system for employees'
rewards. It is this system that profoundly makes it perform better than the rest.
Problems to be addressed and Benefits to the Company
It is essential to make significant changes in how rewards are made to the employees. This is, as
a result, to fit in dynamics that arise with emerging modern organizations. There are so many
instances of rewards that companies tend to embrace in order to cope up with such dynamics to
also compete favorably in the market. For example, companies embrace techniques such as
payment based on the skills possessed, job risk rewards, among others. The basis of such awards
is to ensure that there is flexibility in the workforce, which in the end, results in high production.
Employees' awards also help address the issue of competition in the market. A highly motivated
workforce is a determinant in ensuring that there is a competitive edge in the line of business. A
company that offers better terms of working conditions is deemed to maintain skilled and
dignified employees. This is contrary to accompany that doesn't do much in order to compete
favorably with the reward market standards. This will automatically lose employees to other
companies that are up to such a task. Rewards are critical to a company in relation to time and
money.
Aims, Objectives, and Scope of the Project
The project aims to put it clear that without employees' rewards and improvement of terms of
work, it is a remedy to failure and making losses. It also outlines the importance of employees
under Human Resource Management in terms of production. Most important to this research is
the value the company gets when the employer invests heavily in human resource in terms of
policies regarding employees' rewards.
The objects of the project is to do an investigation on how to set systems for rewards has more
significant impacts on the level of production; it explores and makes determination mainly on the
trending changes in rewarding with comparison to the past with consideration to how employees
are productive; making an observation on the importance of relationship that arise in reward
system and how the employees are productive to the company; identification of the right ways or
procedures in which employees can be motivated through compensations in order to work well to

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give rise in level of production; deeply understand the importance of reward in relation to
employees and the growth of a company.
The scope of this project is basically revolving around employees' productivity that comes as a
result of reward. The area of interest here is a Community Milk Company that thrives in the
midst of other companies, in high market competition.
Deliverables and Potential Risks of the Project
The project is likely to give the companies the idea behind motivating employees through
rewards. This idea will be favorable for companies to register higher productivity as a result of
substantial investment in human resource motivation.
It also has potential risks that include; employees' demand for an unrealistic reward that is
unsustainable in the long run, employees' exploitation of the employer with regards to reward,
strike and boycott of work in demand for more incentives.
Work plan
There are three tasks to be accomplished in this work plan. They include; conducting a baseline
survey in the concerned industries, recruiting the relevant workforce, and taking them through
training, engaging the stakeholders.
Baseline survey
Designing the survey and coming up with relevant questions, recruit data collectors from the
community, collect data by using various methodologies such as questionnaires, interview,
observations, etc., data entry is done by trained data clerks after which a report is compiled
Relevant references
Reward contributes majorly to the company’s productivity. When firms invest heavily in their
employees, they realize higher productivity. This came as a result of increased performance in
the team playing.
Some of the limitations that companies experience with regard to reward are the manner in
which compensation is supposed to be done in a fair way to all employees (Howard, Turban and
Hurley, 2016)
The relationship between motivation and employee performance is something that is
inseparable. The profits realized in the quarter of a year shows that the performance realized was
as a result of incentives given to employees that makes them work beyond their boundaries.

RESEARCH METHODOLOGIES 2
The limitations here also include the fact that workers with low abilities cannot deliver as
compared with their counterparts with high capacity who take advantage of the incentives
(Larkin, and Pierce, 2015).
The attitude of employees in a company is essential in an indicating production level at
the end of the business. This attitude is changed through motivation. An employee who is not
motivated lacks the right approach in their area of work hence low productivity.
The limitation here is that a company that has employees with a wrong attitude will definitely not
realize set goals. Therefore the employees’ eminent workforce depends on interior and exterior
factors that are essential as motivating factors (Ajmal, Bashir, Abrar, Khan and Saqib, 2015).
Motivation on employees is essential in solving the issues of employees lea[ving
company for personal and work reasons. When an employee is not happy at the place of work,
definitely due to factors contributed by the environment of work, the employee will seek for an
alternative.
The limitations here are that not only money incentives are enough to make employees not leave
a company, but other factors may also include aspects of recognition and working environment
(Agustiningsih, Thoyib, Djumilah, and Noermijati, 2016).
Motivation should not just be something that lasts for a short time but should be looked at
as something that should go for a long time. When employees are motivated, they work with a
lot of dedication hence increased productivity.
The limitations, in this case, is that companies need to come up with long term strategies for
motivation. This is regardless of good or bad seasons (Závadský, Hitka, and Potkány, 2015).
Rewarding employees is critical in retaining employees in a company. When an
employee is not happy at the place of work, definitely due to factors contributed by the
environment of work, the employee will seek for an alternative.
The limitations here is that there are other factors that may also result in the company losing
employees such as recognition and working environment (Aguenza and Som, 2018)
Improving productivity in a company requires both internal and external elements, such
as a reward. Without these two, employees might not be of benefit to the company with
consideration to production.
Limitations, in this case, is that the company does not only rely on the external force like rewards
to get high productivity from the employees but also the internal aspects of the employees play
an equal role besides external (Malik, Butt, and Choi, 2015)
Reward increases employees’ loyalty and dedication towards work. When a company
rewards employees well, they seem to have a sense of belonging hence developing trust with the
company.
Similarly, the limitations here are that besides standard pay for the contract signed by the
employee. There are many expectations from the employer to build on the trust that results in
loyalty (Tomic, Tesic, Kuzmanovic, and Tomic, 2018)
Reward in the form of remuneration is vital in enhancing a good relationship between
employee and employer. This form of compensation cannot also be detached from the excellent
production realized.
The limitation here is that no other form of reward is valued here except the fact that the
employees must be appropriately remunerated (Marin-Garcia, and Bonavia, 2015)

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Descriptive Research
The research is descriptive as it tends to develop an existing idea that has already been explored
before. The purpose of investing heavily in human resource workforce by giving rewards for
high productivity is not new. It has existed before, and it is high time the companies put more
considerations to it.
Research design
I chose to stand with flexible design as I considered a number of things from data collection on
the ground. Due to shifting issues, it is the best design in this case, for it allows flexibility even in
data collection.
Approaches
I choose to use a number of techniques in this project to get quality results at the end. Some of
these techniques are for collecting data, which are indisputable, for example, the case study
methods, observational method as well as survey method.

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References
Aguenza, B.B. and Som, A.P.M., 2018. Motivational factors of employee retention and
engagement in organizations. IJAME.
Agustiningsih, H.N., Thoyib, A., Djumilah, H. and Noermijati, N., 2016. The effect of
remuneration, job satisfaction and OCB on the employee performance. Science Journal of
Business and Management, 4(6), pp.212-222.
Ajmal, A., Bashir, M., Abrar, M., Khan, M.M. and Saqib, S., 2015. The effects of intrinsic and
extrinsic rewards on employee attitudes; mediating role of perceived organizational support.
Journal of Service Science and Management, 8(04), p.461.
Howard, L.W., Turban, D.B. and Hurley, S.K., 2016. Cooperating teams and competing reward
strategies: Incentives for team performance and firm productivity. Journal of Behavioral and
Applied Management, 3(3), p.1054.
Larkin, I. and Pierce, L., 2015. Compensation and employee misconduct: the inseparability of
productive and counterproductive behavior in firms. Organizational wrongdoing: Key
perspectives and new directions, pp.1-27.
Malik, M.A.R., Butt, A.N. and Choi, J.N., 2015. Rewards and employee creative performance:
Moderating effects of creative self‐efficacy, reward importance, and locus of control. Journal of
Organizational Behavior, 36(1), pp.59-74.
Marin-Garcia, J.A. and Bonavia, T., 2015. Relationship between employee involvement and lean
manufacturing and its effect on performance in a rigid continuous process industry. International
Journal of Production Research, 53(11), pp.3260-3275.
Tomic, I., Tesic, Z., Kuzmanovic, B. and Tomic, M., 2018. An empirical study of employee
loyalty, service quality, cost reduction and company performance. Economic research-
Ekonomska istraživanja, 31(1), pp.827-846.
Závadský, J., Hitka, M. and Potkány, M., 2015. Changes of employee motivation of Slovak
enterprises due to global economic crisis.

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