Investigating Reward System Effectiveness: Hilton Hotel Case Study

This business research plan examines the effectiveness of reward systems on employee motivation, focusing on a case study of the Hilton Hotel. The report investigates the concepts of reward systems and employee motivation, differentiating between intrinsic and extrinsic rewards. It explores various reward strategies used in the British hospitality industry, assessing their impact on employee motivation within Hilton Hotel. The research addresses key questions such as the current reward methods used by British hoteliers and suggests improvements for Hilton Hotel to build a more effective reward system. The study highlights the significance of a well-designed reward system in enhancing employee commitment, productivity, and overall business performance, aiming to provide valuable insights for both practitioners and scholars interested in employee motivation and reward strategies within the hospitality sector. The report includes a literature review, research methodology, required resources, and a Gantt chart to outline the research process.

Business Research plan
(Investigating the effectiveness of reward
system on employee motivation)
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EXECUTIVE SUMMARY
With the changing period, employees became the most important integral part of the
organizations as they work for them business and deliver services to the consumers. Therefore,
companies require motivating and encouraging their staff by rewarding their performance and best
achievement. Motivated person desires to work hard and put extreme level of efforts to meet their
job targets and reach success. Therefore, this report has analysed the significance of reward system
to inspire and motivate people, which in turn, results in higher satisfaction. In such respect, both
intrinsic versus extrinsic as well as monetary versus non-monetary reward mechanism like
appreciation, pride feeling, promotion, appraisal, job enlargement, autonomy and freedom of
working has been taken into consideration. Report identified that effective and well-balanced
reward system helps to enlarge staff productivity and performance and enable business to assure
long-run sustainability.
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Table of Contents
INTRODUCTION................................................................................................................................4
Background and introduction...........................................................................................................4
Background of the organization.......................................................................................................5
Research aims and objectives..........................................................................................................5
Research questions...........................................................................................................................5
Rationale..........................................................................................................................................5
Significance of the study..................................................................................................................6
LITERATURE REVIEW.....................................................................................................................6
Concept of reward system................................................................................................................6
Concept of employee motivation.....................................................................................................7
Various ways and strategies available to reward workforce............................................................8
Effectiveness of reward system upon staff motivation....................................................................9
RESEARCH METHODOLOGY.......................................................................................................11
Research philosophy......................................................................................................................11
Research approach.........................................................................................................................11
Research design.............................................................................................................................11
Research type.................................................................................................................................11
Data collection technique...............................................................................................................12
Population and sample...................................................................................................................12
Instrument for data collection........................................................................................................12
Data analysis method.....................................................................................................................12
Accessibility...................................................................................................................................13
Ethical issues..................................................................................................................................13
REQUIRED RESOURCES................................................................................................................13
GANTT CHART................................................................................................................................13
CONCLUSION..................................................................................................................................14
REFERENCES...................................................................................................................................15
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INTRODUCTION
Title of the study: To investigate the effectiveness of reward system on employee motivation, A
case study of Hilton hotel.
Background and introduction
In today’s competitive world, companies are facing wide range of challenges and difficulties
and among all, recruiting skilled and talented workforce and retaining them for a prolonged period
is of utmost importance. In ancient times, employees were just considered as a labour force,
however, with the changing period, now-a-days, employees became the valuable assets of the
organization upon which company’s success is highly dependent. The reason behind this is
employees put their potential, efforts and commitment to meet consumer demand. There are various
factors that influence employee’s performance such as working conditions, training and
development initiatives, security, employment policies and procedure, employer-employee
relationship and so on, among all these, motivation is considered as crucial factor that affect
workers performance to a great extent (Performence management in digital age, 2016). It refers to
an accumulation of various processes which influence personnel positively to maximize their
potential, efforts and commitment to deliver bets quality services to the consumers. In the present
times, each and every company’s HR professionals take number of initiatives to motivate and
encourage workforce to maximize their potential, skills and commitment level to exceed consumer
satisfaction. Reward system is one of the main strategies adopted by large number of organizations
to motivate workers so that they can render superior quality product and services to the clients
(Performence reward system, 2016). It may be of two types that are intrinsic and extrinsic, former
related to internal factors of the establishments i.e. appreciation, job rotation and others, however,
later relates to external or outside factors such as incentives, bonuses, promotion and so on.
In the hospitality industry, the success and growth of the company is greatly depends upon
the quality of services delivered to visitors, henceforth, it becomes essential for the hoteliers to
recruit highly talented and committed workforce to serve target audiences in the best manner.
Therefore, this study examine the effectiveness of reward system on workers motivational level to
investigate that whether reward system helps to encourage and promote workers to maximize their
commitment level or not. In order to investigate the issue effectively, both the intrinsic and extrinsic
motivation will be taken into consideration and its impact will be evaluated on employee motivation
on Hilton Hotel. It will address various strategies and methods used by Hilton to influence workers
positively, so that, they put great efforts to attain specific desired goals by exceeding consumer
expectations.
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Background of the organization
Hilton Hotel is a leading hospitality organization operating in different part of the world.
The aim of the company is to deliver superior accommodation facilities to the audiences so as to
meet their demand. It targets both the businesses and leisure travellers to whom services are
delivered through various locations near city centres, airports, convention centres and other famous
and popular destinations across globe. It is a multinational luxurious hotel who carries out
operations in more than 84 countries and across six continents of the world.
Research aims and objectives
The central aim of the study is to examine the effectiveness of reward system on the
employees’ motivation, A case study on Hilton Hotel.
In order to meet the target of the study, following objectives will be taken into consideration,
appended below:
 To investigate the concept of reward system and workers motivation
 To identify various ways and strategies for rewarding employees in British Hospitality industry
 To assess the relationship between reward system and workers motivation level in Hilton Hotel
 To suggest the best strategy for developing an effective reward system to motivate Hilton
Hotel’s workforce
Research questions
1. What is the concept of reward system and employee motivation?
2. What are the ways and methods currently used by British hoteliers to reward their
workforce?
3. How staff motivation can be raised through developing an effective reward system in Hilton
Hotel?
4. How Hilton hotel can build the best reward system to motivate their people so as to raise
staff productivity?
Rationale
As discussed earlier, that in the present corporate world, customer satisfaction became the
prior goal of the establishments so as to maximize their competitive strength. In order to meet
changing customer need, desires and wants, companies require motivating their people so that staff
productivity can be enhanced results in exceeding client’s satisfaction. Referring hospitality
industry, it is evident that rapidly changing economic world brings number of challenges to the firm
that only can be meeting out having talented and highly motivated workforce. Henceforth, this
research study will investigate that how hoteliers can use various ways to reward their workers and
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thereby motivate them (Designing reward system, 2016). With the help of having motivated people,
Hilton hotel will be able to maximize their workers commitment, staff productivity and build
positive relationship with the workers to gain competitive advantages over the rivalries.
Significance of the study
This study seeks to examine that how effectively a reward system can maximize personnel
motivation level that will be one of the great benefit for the organization to improve their strategic
capabilities and gain competitive edge over competitors. Moreover, the study also attracts the
attention of policymakers upon current issues and difficulties that hoteliers are suffering to build an
effective reward system at the workplace. Furthermore, employees also will be benefited through
better and solid system of reward, which in turn, maximize their productivity and satisfaction level.
However, on the other hand, scholar who desired to enlighten upon the same issue can use this
report as a base data for conductive further investigation.
LITERATURE REVIEW
This section of the research study will develop a conceptual framework and a theoretical
base for the topic of investigation. It will use secondary information sources such as historical
published articles and books to critically evaluate the importance of reward system on maximizing
employee motivation. With the help of this, researcher will be able to develop his or her own
decisions based upon the arguments and make solid decisions to eliminate the selected research
issue.
Concept of reward system
According to the study of Manzoor (2012), a well-planned system or structure that an
organization uses to reward one or more people of overall staff to get the desired output is called
reward system. It is an essential element that works as a motivator to encourage staff members to
put their best efforts to meet business targets and objectives. In today’s time, companies require to
develop a clear and excellent reward system to encourage their staff members so that they will be
willing to put their improved efforts to serve quality services to the users. It is very important for
the companies to reward their workers for their great efforts and commitment that assists firm to
attain desired results.
On the other hand, Silverman and et.al., (2016), explained reward as a benefit that employee
receive from the employers and usually are in the form of money, promotion and other monetary as
well as non monetary benefits. Study advocated two forms of the system that are intrinsic and
extrinsic, former refers to non-physical (psychological) and intangible benefits such as appreciation,
word of praise, better recognition, proud feeling, freedom and autonomy etc. However, on the
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contrary, extrinsic reward regards to the physical or tangible benefits that is directly related to the
original efforts and job productivity of the worker. For instance, better pay-scale, extra incentive,
bonuses, commission, other fringe benefits, promotion and appraisal are the several types of
extrinsic reward system.
Concept of employee motivation
As per the views of Manzoor (2012), motivation regards to the process of moving, pushing
or influencing workforce to proceed towards specific or certain targets and objectives. It works as a
power which strengthens staff behaviour and pushes their commitment level to give high level of
potential and became them more attentive towards their employment targets. It refers to people
capability to endow business with high level of competitive advantage over others.
However, on the critical note, Jehanzeb, Rasheed and Rasheed (2012), explained motivation
as a factor that meet unsatisfied need, demands and wants of a member. It encourages goal-oriented
behaviour of an employee that directs and supports people to pull themselves towards defined or set
targets. Training & development, improved working conditions, high remuneration, appraisal
programme, compensation and other monetary as well as non-monetary benefits work as a
motivator to pull workers efforts in the right direction so as to meet set organizational aims and
objectives.
Furthermore, in the study of Dall’Ora and et.al., (2016), it has been observed that motivation
is an active form of need, desire or craving that must be satisfied. It is an internal or inner state of
mind that promote worker to behave in such a manner enduring attainment of business targets. It
helps firms to strengthen their people’s commitment level, which in turn, they will be ready to
maximize their potential and accept challenges as well. This favourable attitude and behaviour of
workers enable firm to reach goals and achieve heights.
Various ways and strategies available to reward workforce
According to Bauwens and et.al. (2016), companies can use various ways and tools in order
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to build an effective reward system at their workplace. In the present times, companies operates at
multinational level and run operations through diversified customer base, in which, different people
have different perception and attitude towards what work they are performing. Praise and
appreciation is one of the most important factors as employee feel highly satisfied and better if their
seniors praise them for their high-level of achievement and stronger commitment. In the study of
Rossi and et.al. (2013), it has been stated that according to Frederick herzberg’s motivation theory,
intrinsic or intangible elements greatly maximize their people motivation and considered more
effective as compare to financial reward. The reason behind this is meaningful work, high level of
autonomy and freedom to make decisions, rendering opportunity to the member to show their
competency and knowledge base, professional development and many others provide a better
feeling to workforce, which in turn, they feel highly satisfied and push their efforts to meet targets.
However, on the other side, Filbeck, Gorman and Fink (2015), argued that recognition is the more
effective ones as everyone wants to be recognised by their co-workers, colleague and other team
members for what efforts they made. It rises up their commitment and level and delivers them a
feeling of proud on their job. At the workplace, employee feels proud for what work they done
perfectly and motivate them to deliver surplus or better outcome.
On the contrary to this, Manzoor (2012), extrinsic reward encompasses pay structure, bonus
plan, incentive schemes, working conditions and so on. Every company design their pay structure in
such a manner, in which, they give more worth and value to those employee who have contributed
their valuable time and energy to reach the targets. It helps to maximize workers satisfaction level
as they receive better financial reward in return for their efforts made. Furthermore, in the real
corporate world, companies deliver a proportion of their excessive return as bonus or commission to
staff members as financial reward. However, on the other side, Dahlgaard-Park (2014), presented
that besides salary, establishments also provide extra benefits and facilities to their respective staff
which also works as a motivator. In such respect, car facilities, medical and health benefits, discount
schemes, leave entitlement, pension plan and other contributory schemes are offered by employer to
their personnel to reward them.
Apart from this, Kreye (2016), suggested that at the workplace, workers also get promoted
on the basis of their productivity, skills, competency and capability. Hard working attitude and
highly dedicated people have better chance of promotion with the increment in salary, job status and
decision-making power as well. Furthermore, better working conditions like comfortable space,
proper ventilation, air-conditioned rooms, comfortable furniture, latest computer models etc. are
also used by the companies to reward their workers so as to push up their motivation level.
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Effectiveness of reward system upon staff motivation
Reward system plays a major role in motivating people as both the factors are positively
related to each other. According to the study of Silverman and et.al., (2016), well-balanced reward
system at the organizations works as a great motivator however, ineffective system of reward can
lead to rises de--motivation among people and resulted in declined performance. Recognition
system works as he best motivator, in which, company recognize their people performance, which
in turn, resulted in increased productivity and performance as well.
However, it has been critically argued by Rossi and et.al. (2013), as they stated that financial
reward is of utmost importance, in which, companies pay better remuneration, bonuses and other
monetary incentives to the people to motivate them results in higher commitment, capability and
competencies as well. By getting excessive pay, people experienced high level of motivation and
desire to put extra efforts and commitment to maximize their potential and serve consumers in
effective manner. It is because; every employee work for money as financial reward in return for
what efforts, time, energy and value that given to the organization.
On the contrary note, Pinder (2014), expressed that with the changing period, workers also
give importance to the other non-financial factors of reward. As a result, companies started paying
attention to the intangible or psychological elements such as appreciation, job security, word of
praise, better recognition, more responsibility, fringe benefits, promotion, growth opportunities and
autonomy of work as well. All these things raise people motivational level to put their extra efforts
and high level of dedication to perform their job duties and responsibilities in the best manner.
Moreover, they also need to align their work with the overall corporate goals and objectives so as to
strengthen competitive position.
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Despite this, in the study of Griffin (2013), it has been observed that high level of motivation
and commitment gain people’s attention towards specific organizational targets and objectives
through creating an effective reward system. The study outlined that not only the intrinsic factors
but also extrinsic factors work as the best motivator that enable companies to maximize their
commitment, capabilities and dedication level to serve client base in the best manner. With the help
of this, companies can maximize their staff satisfaction, productivity and decline absenteeism and
staff turnover.
On the other hand, Dall’Ora and et.al., (2016), argued that no-doubt, higher pay, extra
benefits, high bonus and incentives enable companies to encourage people, but, low level of
promotion, less increment, lower pay scale and others can also give rises to de-motivation among
workforce. It affects business operations negatively as workers will not be willing to put any extra
efforts and also less-dedicated towards their job duties and responsibilities. This in turn, companies
will not be able to accomplish their defined objectives due to poor staff performance, less-dedicated
and committed people, high absenteeism and staff turnover as well. It results in decreasing
competitive strength of the firm, as a result, firm may suffer various operational difficulties and
issues to run operations successfully.
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RESEARCH METHODOLOGY
Methodology of proposed investigation presents the tools, design, approaches and type of
investigation that an investigator is going to carry out to meet defined aim and objectives. An
investigator must select the tools and techniques carefully so as to investigate the field of the study
more effectively and efficiently. With references to the current topic, researcher will use below
mentioned tools and techniques aims at addressing the effectiveness of reward system on employee
motivation.
Research philosophy
Under the positivism philosophy, researcher observes evidences and scientific findings that
assumes that facts only can be derived by applying a scientific model. However, on the opposite
context, interpretivism is a social science approach that is used for inquiring social studies and
related disciplines (Von, 2016). First formulates hypothesis addressing the objective of the study,
while, later design questions to investigate the selected issue. Proposed investigation will use
interpretive philosophy of research as it is a type of qualitative study and a topic of social science.
Research approach
Inductive and deductive are two approaches that is often used by researchers to get the
desired outcome. Out of these, inductive approach aims at developing a new phenomenon, theory,
concept or model based upon the analysis and actual findings, however, deductive is an aimed and
testing theory (Rani, Yadav and Jain, 2016). Being a qualitative nature of investigation, scholar will
apply inductive approach in which various research questions will be framed based upon the aim of
the study.
Research design
Design refers to the strategy, in which, researcher arrange all the components and element in
a coherent and logical manner so as to address the topic of investigation. It works as a blueprint that
constituents’ data collection, measurement and analysis of the information gathered as well.
Descriptive, analytical, correlational, experimental and so are several kind of research design (Wiek
and Lang, 2016). Out of these, this study will use descriptive design aims at gathering sufficient
quantum of data and factual information so as to describe an existing phenomenon and thereby
effectively examine the impact of reward system on workers motivation.
Research type
Quantitative and qualitative are the two type of investigation that an researcher can conduct.
The present study will be qualitative, in which, researcher will gather qualitative factors that cannot
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be expressed in numerical values and figures. As in this, investigator will generate information
about the type of reward system, its effectiveness along with their impact upon workers progress
and motivation.
Data collection technique
Primary and secondary sources of information are two ways available in front of scholar to
acquire sufficient quantum of data to conduct the investigation appropriately. Primary is used for a
new field of investigation where existing literatures does not provide sufficient and enough amount
of information i.e. survey, interviews and observation (Caillaud, Rose and Goepp, 2016). While,
secondary information source is used when data are readily available and time-updated as well that
deliver appropriate information to the researcher i.e. literature articles, books, web sources,
statistical reports and so on. Concerning current topic, scholar will conduct an employee survey to
assess the relationship between reward systems on their motivation level.
Population and sample
Hilton Hotel operates at multinational level and has a diversified employee base also called
universe of population. It is impossible for the investigator to survey of each and every member and
gather their responses. Therefore, scholar will use sampling frame to conduct survey of selected
respondents from the overall employee base. Random sampling frame will be applied to gather
enough information from the selected 50 participants or workers of Hilton Hotel. It is because, this
method gives an equal chance to each worker to select in sample without any biasness (Kovach,
2015).
Instrument for data collection
Self-designed or item-structured questionnaire will be developed for collection of required
information from the employees. It will be divided into two sections, out of these; one will contain
demographic information and other deliver information about the selected variables. All the variable
specific questions will be designed in such a manner that will enable scholar to address the research
issue effectively (Farrokhyar and et.al., 2014).
Data analysis method
The researcher will use graphical presentation and thematic technique to examine the results
of the survey. In these, every theme will present the findings of the survey conducted by the scholar.
While, graphical presentation via making pie, column and others will help to visualize the results in
an effective manner.
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