Case Study: Reward System's Impact on Marks & Spencer Performance

This report proposal outlines a study to analyze the impact of reward systems on organizational performance, focusing on Marks & Spencer (M&S) as a case study. It aims to investigate the role of reward mechanisms in the retail industry, identify different types of intrinsic and extrinsic rewards, and analyze their impact on M&S's business performance. The proposal includes a literature review covering the concept of reward systems, intrinsic and extrinsic motivational tools, and the impact of rewards on business performance. Research questions are posed to explore the role of reward systems in the British retail sector, the types of rewards available, and how M&S uses reward systems to meet employee expectations and improve overall business performance. The research methodology involves a qualitative study using online surveys of HR professionals at M&S, with data analysis employing tabulation, graphical presentation, and thematic approaches. The expected outcome is to determine effective ways to appreciate staff and design a suitable reward system to enhance satisfaction, productivity, and overall performance. The report concludes that reward programs are crucial for aligning talent with corporate objectives.

Business research report proposal
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Table of Contents
INTRODUCTION................................................................................................................................3
Overview..........................................................................................................................................3
Aims and objectives.........................................................................................................................3
Problem statement............................................................................................................................4
Significance.....................................................................................................................................4
LITERATURE REVIEW.....................................................................................................................4
Concept of reward syste...................................................................................................................4
Intrinsic and extrinsic, monetary and non-monetary tools of reward mechanism...........................4
Impact of reward system on business performance.........................................................................5
RESEARCH QUESTIONS..................................................................................................................5
RESEARCH METHODOLOGIES......................................................................................................6
Sampling techniques........................................................................................................................6
Methods of analysis.........................................................................................................................6
RESEARCH PROCESS.......................................................................................................................7
EXPECTED OUTCOME.....................................................................................................................7
CONCLUSION....................................................................................................................................7
REFERENCES.....................................................................................................................................8
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INTRODUCTION
Title: “To analyse the impact of reward system on organizational performance, A case study of
Marks and Spencer
Overview
In the current dynamic corporate world, companies are requiring to effectively manage their
workforce to survive successfully in the intensively competitive working environment. Over the
years, workers became the core strength of the firm that can bring either success or failure to the
entity. In the present challenging and competitive market place, firms are require to motivate and
inspire their workers to push their talent, capabilities and potential so that they can put work hard to
meet targets (Geard, 2015).
Reward mechanism is considered as one of the powerful strategy that helps firm to cope up
with the prevailing market conditions and changing world. Both the tangible as well as intangible
motivational factors and monetary as well as non-monetary awards like better working conditions,
health benefits, pension, contributory schemes, appreciation, high remuneration, more
responsibility, bonus, incentive, involvement in decision-making, freedom or autonomy and many
others play an essential role in rewarding workers and thereby motivate them to perform well
(Yoon, Sung and Choi, 2015).
The present project report will highlights the key findings about both the financial as well as
non-financial reward system and its effectiveness in motivating and improving workers
performance. It will be discussed in the context of Marks and Spencer (M&S) which is a leading
British retailer that serve global consumer base by merchandising food, grocery, and clothing
products. In the report, researcher will investigate that how reward mechanism impact staff
productivity and overall business performance to ensure long-run survival.
Aims and objectives
Aim: “To investigate the role of reward system in enhancing business performance”, A case study
on M&S
Objectives:
 To investigate the role of reward mechanism in retail industry
 To identify different types of intrinsic and extrinsic rewarding tools to encourage people
 To analyze the impact of reward system on M&S’s business performance
 To recommend the most effective solution to M&S to create the best reward programme
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Problem statement
Rising absenteeism and staff turnover is the area of concern that attracts scholar’s attention
to conduct an investigation in the respective field. Lack of talented worker pool, motivated people
and challenged workforce is an issue that gain researcher’s attention to identify that what are the
reasonable factors behind declining employee’s performance (Nachiappan, Anantharaman and
Muthukumar, 2016). Therefore, proposed research will be carry out to measure the effectiveness of
reward system that how M&S can use such mechanism to motivate people and strengthen their
performance.
Significance
This study will deliver extreme level of benefits to the retailers to prepare an excellent
reward system to encourage their people’s potential and capabilities to perform well and attain
goals. Moreover, scholar will be benefited to understand the concept of reward system, intrinsic and
extrinsic, monetary and non-monetary types and its impact on overall performance. In addition to
this, other companies can also use the findings of the report to identify various ways to motivate
workforce, increase productivity and maximizing overall business performance.
LITERATURE REVIEW
Concept of reward syste
According to Geard (2015), reward system refers to the plans, initiatives and actions that
companies undertaken to encourage people to put high dedication towards their job responsibility
and thereby meet out business targets. Strategic and well-balanced reward programme helps firm to
gain competitive advantage, retain their workforce and decrease staff absenteeism and turnover. On
the contrary to this, Scheid (2010), founded that in the present times, companies are facing several
difficulties in rewarding their workers effectively due to elimination of one or more elements in
their established reward programme and its improper align with the corporate strategies and aims.
Intrinsic and extrinsic, monetary and non-monetary tools of reward mechanism
Allison and et.al. (2015), presented two types of reward system that are intrinsic and
extrinsic, formal are considered more effective and value driven includes professional growth,
pleasure and appraise feelings, praise by seniors, recognition and a joy of accomplishing targets.
However, on the other hand, later regards to the tangible factors that are external to the organization
and tied with worker behaviour, capabilities and roles. It consists of pay-scale, bonus, incentive
schemes, commission, fringe benefits, excellent working conditions, promotions, appraisal and
many others.
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On the contrary to this, Sinha and Verma (2015), categorized the reward system into
monetary versus non-monetary rewards. In the first, companies reward their workers in the form of
salary appraisal, higher incentive, bonuses, more benefits and other extra facilities like health and
medical facilities, pension and so on. On the other hand, non-monetary rewards consists of those
tools that do not provide any financial benefits to the business such as praise, feeling of pride, paid
leaves, counselling, furnishing and well-equipped office and others.
Despite this, Springer, Rosenquist and Swain-McSurely (2015), expressed some other tools
of rewarding such as membership-based, reduced working hours, staggered daily schedule, flexible
working arrangements, work from home facilities, compensation schemes and others that enable
personnel to make a balance between their personal as well as professional life and make them
satisfactory, which in turn, they work hard and with high level of motivation to reach goals.
Impact of reward system on business performance
As per the view point of Yoon, Sung and Choi (2015), reward system plays an essential role
in enhancing staff productivity which have a direct association or linkage with the overall business
performance. High remuneration, incentive, rewards, word of praise, autonomy power and extra
monetary as well as non-monetary tools encourage and inspire people to give their maximum
potential to deliver superior quality products and services to the consumers. Highly-motivated and
talented labour pool helps to encourage repetitive buying, retain existing client base and attract
prospective customers, which in turn, enlarge consumer base.
Likewise, Nachiappan, Anantharaman and Muthukumar (2016), suggested that reward
system have a direct impact upon increasing employee satisfaction and productivity level. This
facilitates businesses to maximize client satisfaction level results in higher turnover and business
yield. It increases competitive strength of the firm that assist business to run operations and business
activities successfully in the intensively competitive age.
On the critical note, Geard (2015), criticised monetary reward mechanism as it increase cost
burden to the enterprise, results in declining performance. Moreover, bonus and incentives provides
short-term or temporary benefits to the firm henceforth cannot be used as an assurance for retaining
talented people for a prolonged period. Biasness can also lead to build negative image and
perception in the employees and may results in higher staff turnover.
RESEARCH QUESTIONS
Q.1. How reward system plays an essential role in British retail sector to push employee efforts in
right direction?
Q.2.What are various intrinsic and extrinsic as well as financial as well as non-financial reward
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tools available to British retailers?
Q.3.How reward system helps M&S to meet out workers expectations, motivating them and
increasing overall business performance?
Q.4.What are the proposed solutions available to M&S to develop an excellent reward mechanism
to maximize staff productivity and attain goals?
RESEARCH METHODOLOGIES
Sampling techniques
Research type
Researcher will used qualitative study to identify that what are the tools available to retailers
to positively influence workers to work hard and put extra efforts to meet their job targets (Taylor,
Bogdan and DeVault, 2015). Quantitative factors that are intrinsic and extrinsic motivational factors
like working conditions, pay-scale, incentive and bonus plans, rewards, non-monetary awards etc.
factors will be taken into consideration to meet the aim of the study.
Data collection
Primary data will be gathered by carrying out an online-survey of HR professionals that are
accountable to manage their workforce. The reason behind using survey is it delivers first-hand
information and helps to obtain new factual data and relevant information in connection with the
selected area of investigation (Mackey and Gass, 2015). For this, structured web questionnaire will
be designed containing all the essential questions like open-ended, close-ended, multiple choice and
others to gather sufficient quantum of data.
Sampling frame
This technique selects a small proportion of universe or entire population that represents all
the units for surveying people. It eliminates the need to conduct survey of each and every member
by gathering data only from the selected sample size.
Sample size
Survey only will be conducted of a selected ample size of 50 HR managers of M&S.
Sampling technique
Random or non-probablistic sample will be taken into account, in which, all the current
managers will have an equal likelihood or probability to being involve in the sample. Biasness
selection is the main reason behind choosing this sampling technique (Silverman, 2016).
Methods of analysis
Tabulation and graphical presentation will be taken into account by the scholar to visualize
the findings more effectively. Moreover, thematic approach is considered as a suitable way to
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analyze and interpret the key findings of the survey for making better decisions and reaching
solution of the selected issue.
RESEARCH PROCESS
Research process underpins overall strategy or plans that scholar will follow to address each and
every element of the study effectively, presented hereunder:
 Selection of topic or area of investigation
 Formulating aims, objectives and research questions
 Develop theoretical base by literature review
 Choosing data collection method and techniques
 Gathering primary data by online survey
 Data interpretation and findings
 Concluding the study
 Giving recommendations
EXPECTED OUTCOME
The most viable outcome and deliverable of the chosen area of research is it will determine
different ways, tools, processes or methods either monetary or non-monetary to appreciate staff
members for their best efforts and contribution. Along with this, findings of the report will also
enable M&S and other British retailers to make better decisions to combat barriers or hurdles which
they are facing. With this, companies can design suitable reward system, which in turn, results in
higher satisfaction, productivity, retention and enhancement of overall performance. It will
strengthen their strategic capabilities and maximize competitive strength to compete effectively.
CONCLUSION
In conclusion of the report, it becomes clear that reward programme is of great importance
that helps firms to pool their talent base towards corporate targets and objectives. Both the monetary
and non-monetary tools like better recognition, appreciation, appraisal, higher pay, extra benefits,
rewards, autonomy, decision-making power and so on facilitates business to maximize their staff
productivity and thereby reach goals.
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REFERENCES
Books and Journals
Allison, T. H and et.al., 2015. Crowdfunding in a prosocial microlending environment: Examining
the role of intrinsic versus extrinsic cues. Entrepreneurship Theory and Practice. 39(1). pp.
53-73.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design. Routledge.
Nachiappan, R.M., Anantharaman, N. and Muthukumar, N., 2016. Design of a New Reward System
in a Continuous Line Manufacturing Industry. IUP Journal of Operations Management.
15(2). pp. 7-10.
Silverman, D., 2016. Qualitative research. Sage.
Sinha, S. K. and Verma, P., 2015. A Study of Non Monetary Sales Promotion and
Reward. International Journal of Commerce, Business and Management: April. 4(2). pp.
1136-1139.
Springer, M. G., Rosenquist, B. and Swain-McSurely, W., 2015. Monetary vs. Non-Monetary
Incentives. Experimental Evidence from After-School Tutoring Student Attendance
Interventions. Journal of Research on Educational Effectiveness. 15(5). pp. 16-26.
Taylor, S. J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.
Yoon, H. J., Sung, S. Y. and Choi, J. N., 2015. Mechanisms underlying creative performance:
employee perceptions of intrinsic and extrinsic rewards for creativity. Social Behavior and
Personality: an international journal. 43(7). pp. 1161-1179.
Online
Geard, J., 2015. Rewarding employees. [Online]. Available through: <
http://smallbusiness.chron.com/disadvantages-rewarding-employees-gifts-24166.html>.
[Accessed on 17th December, 2016].
Scheid, J., 2010. Disadvantage of employee reward programme. [Online]. Available through: <
http://www.brighthub.com/office/human-resources/articles/90903.aspx>. >. [Accessed on
17th December, 2016].
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