NAME: Waleed Siddiqui

ROLL NO: MBIW-F19-019

SUBJECT: BRM

Topic:

The Impact of Employees’ Recognition, Rewards and Job Stress on Job

Performance

Introduction
Human resource practices are really important for the betterment of the organizations (Hallberg
& Schaufeli, 2006; Paul & Anantharaman, 2003). With the changing technologies and demand of
customers, it really creates competition among organizations. Therefore, organizations need to
implement something different in order to cope with these changes (Fanelli & Medhora, 1998).
Human resource is the most valued tool and asset of the organizations to compete with other
organizations (Armstrong, 2006). Without proper Human Resource practices, development
cannot take place in any organization. Nowadays, the human asset is the most important asset of
the organization without which the organization cannot achieve its goals. So it should be
seriously practiced in all the organizations. Human resource practices such as employee
empowerment and recognition are directly linked with the overall development of the
organization (Pardo Del Val & Martínez Fuentes, 2003). Through proper HR practices,
employees will be more motivated and will produce better results in the future (Andrew &
Sofian, 2012; Bakker & Demerouti, 2008). A firm that really wants to flourish and prosper, it
needs to have these HR policies in it. Even God has mentioned in the Holy Book that HRM
practices should be implemented.

For this research article, the researcher is interested in conducting research on call centers. Call
centers industry is of growing importance nowadays. They are emerging day by day in this new
era. The importance of call centers is very high as the customers can communicate via e-mail,
SMS or even social media. On the other hand, customers’ expectations are also rising as they
look forward to a better and cheaper service. Basically, call centers are used for marketing
purposes for business organizations. In today’s era, different organizations need different tools
and techniques to satisfy their employees for gaining maximum work. Therefore, organizations
need some rules and standards to do this. For his, different call centers can use our research’s
results to promote their rewards, recognition and stress factors to motivate the employees and do
well. Job performance is very important for the organizations without which they cannot survive.
It is vital for the firms to consider it as their main objective. So they need to take care of their
employees and value their works so that they can perform well in their jobs. The researcher
wants to know whether job performance in call centers is decreasing or increasing. What are the
reasons behind their increase or decrease? It is being researched and concluded that HR practices
for example reward system enhances employees’ performance and keep them motivated
(Deeprose, 1994; Pratheepkanth, 2011; Qureshi, Zaman, & Shah, 2010). The company rewards
its employees for their hard work and enthusiasm. It is being revealed that rewards can influence
employee performance by enhancing employee abilities, knowledge, and skills (Ajila & Abiola,
2004). According to (San, Theen, & Heng, 2012), if an organization does not implement proper
HR then it will result in low productivity, high turnover, and absenteeism.

On the other hand, the article puts light on job stress that the employees face in an organization.
Job stress means when the employee has too much work burden on them. They feel emotional
and physical stress. Job stress arises when there is a rise in demand and how an employee has
control over this demand. Job stress also arises from fear, anger, and guilt which is seen in many
of today’s organizations nationally and internationally (Ashkanasy & Daus, 2002). Job stress has
an indirect relationship between job stress and overall employee performance. When there is job
stress, it will decrease performance.

Research Objectives

The main purpose of the study is to examine the impact of employees’ recognition, rewards and
job stress on job performance by considering the mediating role of perceived organizational
support study objectives mentioned below:

To examine the impact of employee rewards on job performance.

2. To explore the effect of employee recognition on job performance.

3. To investigate the impact of job stress on job performance.

4. To verify the impact of perceived organizational support on job performance.

5. To check the mediating role of perceived organizational support between the relationship of
rewards and job performance.

6. To determine the mediating role of perceived organizational support between the relationship
of recognition and job performance.

7. To identify the mediating role of perceived organizational support between the relationship of
job stress and job performance.

Research Questions Research questions are listed below:

1. What is the effect of employee rewards on job performance?

2. What is the impact of employee recognition on job performance?

3. What is the relationship between job stress and job performance?

4. What is the relationship between perceived organizational support and job performance?

5. Does perceived organization support mediate the relationship between employee rewards and
job performance?

6. Does perceived organization support mediate the relationship between employee recognition
and job performance?

7. Does perceived organization support mediate the relationship between job stress and job
performance?

Literature Review

Rewards can be defined as a person receiving it in exchange for doing some tasks which is
beneficial for the company. Reward means anything the company gives its employees in
exchange for their contributions (Chiang & Birtch, 2010). They are given to employees for their
good performance. If rewards are not given then an unpleasant environment is created. So
rewards are extremely important in an organization. The main reason for the rewards is to attract
and retain employees. The rewards can be in the form of money which is not a good motivator in
the long run (Mossbarger & Eddington, 2003). Other examples of rewards include status, an
additional benefit, providing a better working environment and commission. Opportunity,
appreciation and manager’s attention also means a lot. The employees will perform innovatively
if they are rewarded. If the company has a reward system then it will attract more talented
employees. This means if the organizations want to attract and retain employees, then they have
to practice reward systems. Through this, companies can attract most of the employees. This is
due to the fact that reward systems can lead to job satisfaction and hence less employee turnover.

Employee Rewards and Job Performance

The employees will be well motivated and will perform well if they are rewarded (Markova &
Ford, 2011). There is a direct relationship between employee rewards and job performance. If the
employees are rewarded, then the performance will increase (Ali, Rehman, Ali, Yousaf, & Zia,
2010; Gerald, 2004; Smith & Stulz, 1985). In this way, the employees think that they are being
valued. Rewards systems can attract the right behavior and outcomes in the company (Manas &
Graham, 2003). Therefore the employees will adopt that kind of behavior that will lead them to
better performance and rewards. As a result, the employees will startworking harder which is
very beneficial for the organizations and the workers themselves. So even in the long run, the
organizations will generate positive results and gain more (Torrington, 2009).

Employee Recognition

Employees not only want compensation but also need to be valued by their supervisors. It will
increase the employees’ morale. Employees will be well motivated if they are recognized by the
supervisors (Saunderson, 2004). Recognition means valuing and caring about the employees'
contributions. It is essential for companies to recognize their employees (McGregor, 1960).
Other studies show that it is better to recognize employees rather than give incentives (Deci &
Ryan, 2000). Employee recognition involves both monetary as well as non-monetary programs
(McAdams, 1995). The example of employee recognition involves writing their names in the
company’s newsletter, letters of commendation, extra time off and verbal appreciation. This is a
form of caring and appraising the employees. The non-monetary awards are more motivating
than the financial award. In this way, the employees think that they are being valued.

Employee Recognition and Job Performance

Organizations recognize their employees to keep their self-esteem high and keep them
passionate. The employees who are recognized in their organizations are well motivated and
perform well. This is because motivated employees perform well which makes one’s intent
towards certain behavior (Durojaiye, 1976). In this way, organizations achieve their goals. There
is a direct relationship between employee recognition and job performance. It is the result of
motivation and ability at the job that leads to high performance (La Motta, 1995). Employee
recognition boosts employee morale which results in the overall productivity of the firm.

Job Stress

Job stress means mental or physical strain due to not meeting the demands of the company. If
the work is well managed then there will be no stress. There is a lot of pressure and burden on
employees due to which they feel job stress. Basically, job stress means occupational demands
and employees’ capacity to meet these demands (Ornelas & Kleiner, 2003; Topper, 2007; Varca,
1999). The job stress may be due to the perceived loss of a job or security. It can occur as a result
of several factors which include lack of work information and feedback, technological change,
rising demands or when an employee is unable to meet the job requirements (Bashir & Ismail
Ramay, 2010). Stressed workers are more likely to be unhealthy, less motivated, less productive
and unsafe in the working environment.

Job Stress and Job Performance

Job stress is indirectly related to job performance. If the job stress increases, then there is a fall
job performance. In order to maintain quality customer relations, it is important for organizations
to implement such practices that reduce job stress. In this way, the overall productivity of
organizations will increase. The companies that really care about their employees will implement
such practices.

Perceived Organization Support and Job Performance

Research shows that there is a direct relationship between POS and job performance which is
very beneficial for the organization (Fasolo, 1995). With POS, there is the likelihood that the
employee will repeat the behavior in the future. It reinforces employee behavior in the future.
The fact that companies want to have a market share and have profits is not a matter of present
but of the future. Employee performance is the consequence of perceived organizational support.
Employee Recognition and Perceived Organization Support

Organizations recognize their employees to keep their self-esteem high and keep them
passionate. The employees who are recognized in their organizations are well motivated and
perform well. Although, rewards and job recognition contribute to better employee performance
the presence of perceived organization support strengthens this relationship. Therefore it acts as a
mediating variable. So it is important that organizations practice POS.