Assessing Reward System's Impact on Employee Motivation at Next Plc

This report examines the impact of reward systems on employee motivation, focusing on a study conducted on Next Plc. The research explores the significance of reward systems, the link between effective rewards and employee motivation, and ways to enhance business performance through employee motivation. The report includes an introduction, literature review, and details on research methodologies, including the research approach, philosophy, type, design, sample, and data collection methods. The literature review covers the significance of reward systems, employee motivation, and the relationship between the two, referencing various authors and studies. The report concludes with a data analysis plan, ethical considerations, and a Gantt chart for project management, providing a comprehensive overview of the research process and findings, contributing to the understanding of how reward systems can drive employee motivation and improve organizational outcomes.

Research
Methodologies
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TABLE OF CONTENTS
Part 1: introduction and background................................................................................................3
Topic............................................................................................................................................3
Background of the research.........................................................................................................3
Problem statement........................................................................................................................3
Rationale of the research..............................................................................................................3
Aim..............................................................................................................................................4
Research objectives......................................................................................................................4
Research questions.......................................................................................................................4
Research methodologies..............................................................................................................4
Task 2 Literature review..................................................................................................................5
2.1 Introduction............................................................................................................................5
2.2 Significance of reward system...............................................................................................5
Link between employee motivation and reward system..............................................................7
part 3 Research Methodologies......................................................................................................11
3.1 Research approach...............................................................................................................11
3.2 Research Philosophy............................................................................................................12
3.3 Research type.......................................................................................................................13
3.4 Research design...................................................................................................................13
3.4 Sample.................................................................................................................................13
3.5 Data collection.....................................................................................................................14
Task 4- Data ANALysis.................................................................................................................15
Data analysis..............................................................................................................................15
Ethical........................................................................................................................................16
Validity and reliability...............................................................................................................16
Gantt chart..................................................................................................................................16
References......................................................................................................................................18
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PART 1: INTRODUCTION AND BACKGROUND
Topic
“Role of reward system in motivating employees”
Background of the research
In the present scenario, the competition among business has been increased to a great
extent. Further such kind of competition has made it very difficult for companies to grow and
survive in long run. Firms nowadays seeks for various kind of ways through which they can
enhance the productivity and efficiency of their workers (Kasmi, 2011). The concept of rewards
systems in organization is growing day by day. It is also helping organizations to achieve their
aim and objectives in effective manner. By using various kind of monetary and non-monetary
rewards, businesses nowadays are trying to enhance the degree of employee satisfaction. On the
other side ,reward systems has also emerged as one of the most powerful tool to lower down the
rate of employee turnover and retain them. This not only provides higher sales and profitability
to businesses but also helps in getting competitive advantage over the other market players in
industry.
Problem statement
The main problem which is associated with this study is what kind of role does rewards
play in motivating the people within organization. Employee motivation has become very
essential for the growth and success of an enterprise. This study aims at assessing the impact of
reward system on employee motivation. Further the researcher will collected data from different
primary and secondary sources to identify the impact.
Rationale of the research
One of the main aim behind carrying out this research is to identify the role of reward
system in motivating employees. This researcher will help in understanding the relationship
between employee motivation and reward system of a organization. The growing competition
among firms has forced them to retain their employees in order to gain competitive advantage.
Further it can be gained by having highly motivated and skilled workforce. This research will
demonstrates, whether rewards provided by organization acts as an driving force and motivates
people or not.
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Aim
To assess the impact of reward system on employee motivation- A study on Next Plc.
Research objectives
 To determine the significance of rewards system and employee motivation in
organization.
 To identify the link between effective rewards system and employee motivation in Next
Plc
 To recommended ways through which Next Plc. can enhance its business performance
through employee motivation
Research questions
 What is the significance of rewards system and employee motivation in organization?
 What is the link between effective rewards system and employee motivation in Next Plc?
 What are the ways through which Next Plc. can enhance its business performance
through employee motivation?
Research methodologies
In the present research deductive approach will be used to carry out the research. The
data will be collected from both primary and secondary sources. Interpretvism philosophy will be
use. In addition to this, 20 employee of Next Plc will be taken into consideration to collect
primary information. In addition to this, the secondary information will be collected from various
books journals and online sources. Quantitative technique of data analysis will be used. One of
the major reason behind using quantitative technique is that the information will be presented in
numeric form. Therefore, it can be stated that it is more suitable and appropriate technique. The
information collected from various primary and secondary sources will be presented with the
help of charts, graphs and diagram.
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TASK 2 LITERATURE REVIEW
2.1 Introduction
The section of literature review is considered as one of the most important chapters of a
research. Further, it explains the views and opinions of various authors and other researcher with
regards to the topic of study. One of the major advantages of this section is that it helps scholar
to develop ideas and enhances his knowledge regarding the topic under investigation. Some of
the major areas which are covered in this section are the significance of reward system in
organization, the role of employee motivation and relationship between reward system and
employee motivation.
2.2 Significance of reward system
As per the view of Güngör, (2011) workplace reward system is considered as a program
which enhances the overall productivity and efficiency of an employee. In an effective reward
system, bonus, increasing pay and other rewards are being provided to workers. Employees in
every organization are considered as one of the most important assets. Further, two businesses
may have same amount of technological and financial resources but what makes them differ
from each other is their human resources. Kasmi, (2011) has explained that only because of high
productive and competent employees, businesses are able to achieve their objectives and gain
competitive advantage at the market place (). Organizations are required to take care of all its
employees and also required to make sure that they stay highly motivated.
According to Malhotra, et. al., (2007) there are two ways which help in enhancing the
level of employee motivation that are higher pay and appreciation of their work (). The offer of
addition reward act as a driving force and encourages people in organization to give their best
and beyond expectations. Now days, competition among businesses in every sector has become
so intense. Therefore, businesses are required to recruit and retain productive employees. An
effective reward system is essential for every organization as it is the one which enhances the
productivity of workers. Businesses can provide various monetary and non-monetary rewards to
their employee against their performance. Podmoroff, (2005) has asserted that it is beneficial for
organizations to use both monetary and non-monetary rewards rather than providing single kind
of reward ().Incentives and appreciation provided to a worker against his outstanding
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performance not only encourage him or her but also motivate them to do better work in future.
Further, it assists in creating a sense of satisfaction among the workers as they start feeling that
their efforts and work are recognized and also appreciated by the management. However argued
that it is not easy for management to have an effective structure for reward or a good reward
policy (Güngör, 2011). Sometimes dissatisfaction is also created among the workers because of
the reward system which has been implemented in the organization. For instance, one employee
is expecting from management to reward and appreciate his performance but for some reason
management appreciates another person in the organization. Such kind of situation may have
negative impact on the productivity and morale of an individual. Further, he or she starts to think
that organization has been bias. Therefore, it is required by businesses to follow a reward policy
which is fair and transparent.
According to Singh, (2007)one of the best ways to develop an effective policy regarding
rewards is by making employees a part of policy formation (). The concept of reward program
also helps organizations to lower down the rate of employee turnover. In addition to this, such
kinds of programs increase employee engagement and also help in improving their attitude and
perception towards organization. This inspires workers and act as a guiding force which
motivates them to put more efforts in growth and success of a company. Podmoroff, (2005) has
explained that incentive based program is considered as a win-win situation for both the
organization as well as employees. In order to achieve higher incentives, workers always put
their best efforts and this result in accomplishment of organizational goals in an effective
manner. Another advantage of reward system is that it reduces absenteeism in company.
Reward system also consists of perks and incentives which are provided as per the
attendance of employees. Rowland and Hall, (2014) has asserted that in order to develop
effective workforce, regular rewards should be provided to the workers.High degree of employee
motivation can be achieved with the help of monthly or quarterly rewards rather than providing
rewards on half yearly or annual basis. Further, it is required by businesses to make sure that
each and every employee is well aware of the fact that high performance will result in higher
rewards. Other than this, it can also be stated that at the time of formulating any kind of reward
policy, management is required to conduct employee survey in which it can identify that what
kind of rewards motivate mostly to the employees. One of the major issues which is faced by
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organization regarding their reward system is that some workers start feeling that system is bias.
This issue can be easily resolved with the help of making employees a part of policy formation.
Plantinga, (2006) has explained that rewards system plays an important role in motivating
employees and is also beneficial for the growth and success of organization.
Link between employee motivation and reward system
As per the view of Densten, (2002) with the increasing competition among businesses, it
has become very essential for organizations to have a highly motivated and efficient employees
(Densten, 2002). This is the only reason why businesses have started to focus more on
development of their human resources. For the growth and success of organization, motivation of
employees is must. has explained that motivated employees always initiate their views and
opinions for the accomplishment of organizations aim and objectives. Along with this, it can be
also stated that motivated employees also give their best to businesses. One of the best way to
enhance the level of motivation among workers is by rewarding them against their performance.
People in the organization can be provided with various kinds of monetary and non monetary
rewards for their efforts and hard work. Employee can stay motivated only when businesses
appreciate them at regular intervals. However Kalargyrou and Woods, (2011) argued that the it is
not easy for management to determine whether monetary or non-monetary rewards will motivate
the people in organization. The staff working at lower level always expects that the businesses
will appreciate their efforts by providing them with several kind of monetary rewards such as
incentives and increase in pay. On the other hand, people working at middle and higher level
expects that the organization recognize and appreciated their efforts in front of other employee in
organization. Rabey, (2001) has explained that reward system are directly linked with employee
motivation further effective reward system can results in making the employees more effective
and productive. It can be stated that with the help of non-monetary and monetary rewards,
companies encouraged their employees to give their best. In modern era, the companies has
started to provide rewards to workers not only for their efforts and hard work but also for their
innovative ideas. This acts as an driving force and encourages them to take part in meetings and
discussion. Further they always try to give their best efforts and ideas towards the
accomplishment of organization long and short term objectives. As per the view of Zopiatis and
Constanti, (2007) most of the time businesses are not able to achieve their objectives on time and
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one of the major reason behind this is that they do not provide any kind of rewards to their
employees. In such situations the people in organizations starts thinking that even if they give
their best or outstanding, the company is not going to rewards them. This creates a sense of
dissatisfaction among the workers and also lower down their motivation level. Mots of the time it
has been observed that rewards leas to employee motivation as they become well aware of the
fact that delivering better performance will result in better incentives and appreciation
(Kalargyrou and Woods, 2011). In additional to this, it not only motivates one single person who
has been rewarded but acts as an driving force to all other employees of the organization. The
remaining employee feels that if they will perform better then their performance will b also
rewarded and appreciated by management. Reward systems also helps in developing better
relation between employers and employees which is very important for the success of any
organization. Further it has been found that those organization which rewards their employee at
regular basis are more productive as compared to businesses which do not have any kind of
reward system. Therefore it can be stated that there is an direct relation between employee
motivation and reward system.
Role of motivation in organization
As per view of Grenway, (2008) motivation plays significant role in every organization as
through this staff members are encouraged to take active participation in the affairs of the
business and in turn it acts as development tool for the entire business. Further, it is well known
fact that employees working in company are assigned various duties and responsibilities due to
which motivation tools are required to be undertaken by management so as to enhance overall
performance of the business in the market (Pinder, 2014). Moreover, in every market level of
competition is rising at faster pace due to which business has to employ different ways so that
overall motivation level of its staff members can be enhanced easily and it can be productive for
business also. Apart from this different ways are present through which business enterprise can
enhance motivation level of its workforce and through this they prefer to carry out operations in
favor of business which is regarded as one of the main objective of business behind carrying out
operations in the market.
However Ryan (2012) argued that giving share in the process of decision making is one of the
most effective way through which staff members working in organization are motivated. Further,
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every employee expects that their needs must be kept on the top of priority within workplace and
due to this basic reason various methods are employed so that each and employee working in the
organization can be motivated easily. Moreover, growth and development of business is directly
associated with the ways undertaken by business so as to boost motivation level of its workforce
(Crossman, Alf, and Abou-Zaki, B., 2003). In case if business has not adopted appropriate ways
for encouraging its staff members then it leads to decline in performance of company in the
market and has adverse impact on the entire company. Apart from this, motivation allows staff
members to apply larger efforts in carrying out business operations and through this it is possible
for organization to gain competitive advantage. On the other hand, need for motivation varies
from every individual to another and it may be possible that techniques employed for motivating
workforce may not be effective (Importance of Motivation. 2013).
Therefore, it is the first and foremost duty of management to ensure that all the range of
motivation techniques considered are effective and it allows staff members to work for the
betterment of business in every possible manner. According to Davies (2006) significance of
motivation tools have increased in the present era where every business has started to search for
new ways through which they can easily enhance motivation level of workforce. Further, every
employee present within the workplace has efficiency to carry out operations and same can be
increased if proper motivation tactics are used by business. In order to enhance business
productivity and overall level of output adoption of proper motivational tool is must and through
this business can easily survive in the competitive market for longer period of time. Moreover, it
is well known fact that human as a resource is crucial for every business and through its proper
utilization business can become leader in the market which is one of the main objectives of
company being carrying out overall operations in the market where level of competition is high
and large numbers of challenges are present (9 Things That Motivate Employees More Than
Money. 2014). Companies have started to use reward techniques for enhancing motivation level
of workforce where monetary benefits are delivered to the staff members who are taking
initiative in favor of the business.
Generally rewards are generally on the basis of employee performance and this is also beneficial
for staff members who are underperforming as through this they can be motivated to enhance
their performance (Dweck, S. C., 2013). Further, every employee has some sort of expectation
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from management and same can be met by undertaking motivation tools. Therefore, this is
beneficial for business enterprise and supports in retaining loyal workforce for longer period of
time. Moreover, sometime it may be possible that attitude and behavior of staff members towards
the company is not positive and due to this reason employing motivational tactics is important
and business can change overall perception of employees towards management (Fargus, 2000).
Reduction in level of level of employee turnover is also one of the main reason due to which
motivation within workplace is gaining importance as sometime staff members prefer to leave
job as they are not at all satisfied with the working environment and this encourages company to
adopt different ways through which they can retain its loyal staff members within the workplace
for longer period of time.
Employing different ways of enhancing motivation level of workforce can be productive for
business. Moreover, adoption of reward as a motivation tool generates a feeling of competition
within the staff members where every individual tries to compete with one another so as to
perform best within the workplace and this enhance level of motivation. Apart from this
management of every enterprise takes feedback from its staff members on continuous basis and
this assist in understanding whether motivation level of employees is up to the mark or not. In
case when employees of the firm are performing below expectation level then it can be said that
they are not motivated and for the same management has to take corrective actions. Apart from
this, continuous monitoring also allows business to know, the effective ways through which
employees can be motivated in appropriate manner and in turn it is fruitful for business in every
possible manner (Govern and Petri, 2012). Further, adoption of effective style of leadership can
also be appropriate for employees such as democratic style where staff members are allowed to
take part in the decision making process and their views are considered within the workplace.
This represents that organization is working in favor of its workforce and this can enhance
overall performance of enterprise in the market where large number of opportunities can be
grabbed easily. Therefore, in this ways significance of motivation in the present era has enhanced
and this is positively affecting business productivity and acting as a development tool. Apart
from this using different theories of motivation is also effective as through this management of
enterprise can understand about the appropriate ways through which motivation level of
workforce can be enhanced easily. Further, large number of factors are present which are
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associated with employee motivation and by considering the same any organization can work in
favor of its workforce and through this different issues such as rise in level of employee turnover
etc can be tackled easily by management in the market where operations are being carried out. In
short it can enhance business strength and can lead to favorable outcomes for management.
Conclusion
From the secondary data collected it has been analysed that reward system play very
important role in motivating employees. With the help of non-monetary and monetary rewards,
organizations are able to create a sense of satisfaction among employees. In addition to this, it
also acts an driving force and makes the workers more productive. It can be also concluded that
it it is also required by the organization to provide rewards to their workers at regular intervals in
order to boost up their morale and make them more productive. This results in increasing the
overall productivity of employees which directly benefits the organization. Along with this it can
be also concluded tat in order to grow and achieve profitability in long run , every business is
require to have highly motivated and productive employee. This can be achieved with the help of
developing an effective reward system. It can be also concluded that in order to developed an
effective reward system one of the best way is to involve the employees at the time of
formulation of reward system. This will create a sense of satisfaction among all the workers.
.
PART 3 RESEARCH METHODOLOGIES
The section of research methodologies depicts the tools and techniques which has been
adopted by a researcher to carry out a study in appropriate manner. Using rights tools assist a
scholar to carry out research in effective way (Khotri, 2008). The major areas which are covered
in this section are research approach, philosophy, data analysis, data collection, sampling etc.
3.1 Research approach
Research approach helps in understanding the topic of study either in specific form or in
generalize form. Inductive and deductive are the two common approaches of research.
Researcher can focus on these two alternative approaches in order to carry out research work
effectively. In the support of this, it can be said that the inductive approach focuses on the
application of any specific observation and various evaluation tools to meet the effective
outcome (Goddard and Melville, 2004). This approach plays key role in providing correct
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