Project On The Effectiveness of Reward System On The Motivation Level of Employees - 11
Project On The Effectiveness of Reward System On The Motivation Level of Employees - 11
2; 2020
ISSN 2575-7911 E-ISSN 2575-792X
Published by CRIBFB, USA
Zaha Noor
Researcher/Student
Middle East College
Muscat, Oman
E-mail: [email protected]
Nishatnaz Nayaz
Researcher/Student
Middle East College
Muscat, Oman
E-mail: [email protected]
Vrushabh Solanki
Researcher/Student
Middle East College
Muscat, Oman
E-mail: [email protected]
Adarsh Manoj
Researcher/Student
Middle East College
Muscat, Oman
E-mail: [email protected]
Arti Sharma
Professor
Middle East College
Muscat, Oman
E-mail: [email protected]
Received: June 25, 2020 Accepted: July 05, 2020 Online Published: August 05, 2020
Abstract
This paper illustrates the importance of employee motivation and the influence of reward and recognition program on the
motivation and performance of the manufacturing and production workers of a manufacturing firm situated in the Sultanate of
Oman. The goal of the report is to depict the predominant effect of reward and recognition on overall productivity,
performance, and motivation. The data gathered for the research was through an exploratory research design wherein the survey
questionnaire was distributed to a population of 30 respondents through a stratified sampling technique. Both the qualitative
and quantitative data were considered while concluding the major findings, followed by proposing suggestions to improve the
motivation levels of employees and enhance their rewards and recognition program.
6
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1. Introduction
1.1 Introduction to the Research
This study emphasizes on the significance of employee motivation and the impact of rewards system on employees‟ motivation,
satisfaction, and performance. These factors crucially influence the efficiency and profitability of a firm. Motivation is a drive
that influences people to work hard. It is vital to boosting productivity and performance (Korlen, Essen, Lindgren, Wahlin, &
Schwarz, 2017). A reward is a tool to recognize an employee for doing an exceptional job. It promotes the perpetual
improvement of performance that leads to career growth and a boost of morale (Ngwa, Adeleke, Agbaeze, Ghasi, &
Imhanrenialena (2019). This topic revolves around a manufacturing firm in Oman. The company deals with unmotivated staff
and dissatisfaction from work, which leads to further problems. Hence, the root cause of the problem needs to be studied, in
order to take appropriate measures. Many motivational theorists previously acknowledged that employee‟s motivation influences
their performance. Therefore, it is essential to utilize adequate resources to motivate them and make them feel valued (Rai,
Ghosh, Chauhan, & Sing, 2018).
2. Research Design
2.1 Research Design
This research explores the difficult situations and experiences of the employees which is why exploratory research has been
chosen. Their opinions and feedback from the foundations of the research. Exploratory Study is a method that helps the
researchers to get answers to primary research questions by using organized data collection techniques that provide the required
and expected responses to the primary questions (Bispo, 2019). The qualitative data approach was involved as it pertains to the
insight issues and the understanding through human interactions. Qualitative research allows us to see the larger picture and
helps us to answer the conditional problems of the organization. This research design helps to explore employee-work
relationship vastly. The exploratory study creates room for us to describe our own preferences and ideas about the whole
situation. The main aspect of this research study is that it helps us to frame and respond to the ethical considerations of the
project. This type of study helps to understand the participant‟s point of view on a large scale. The perceptions of people cannot
be measured and therefore this type of qualitative data requires exploratory study as our research tool.
3. Literature Review
3.1. What is Rewards System?
An employee reward system comprises an organization‟s coherent strategies, procedures and, system for recognizing the
employee in terms of their involvement, skills and, potential and their market value. This system is created within the structure
of the organization‟s reward beliefs, strategies, and policies. It consists of an arrangement in the framework of „progression,
routine, structure‟ that will impart and perpetuate the apt type and level of „pay, benefits and, other forms of reward. The reward
system intends to „attract, retain, and motivate‟ the workforce (Wasiu, & Adebajo, 2014).This system plays a vital role in
ensuring employee engagement by providing each individual with the most suitable motivational factor. Since every individual
has different needs and goals, they are driven by different sets of motives, as some may seek a bonus whereas others may desire a
sense of recognition or a promotion to a higher post. Thus, these factors influence their performance, behavior, and commitment
to the job. Henceforth, developing a reward system that caters to every employee‟s needs is extremely crucial (Bhattacharya &
Mukherjee, 2009).
the workforce needs more of encouragement, stable compensation, and recognition for their performance. Thus, including
rewards like promotion may not seem desirable to some right now.
One of the most effective theories is Maslow‟s hierarchy of needs. This hierarchy consists of five categories in a
pyramidal structure. These categories consist of different needs to motivate employees. The first stage from the bottom is
psychological needs (Čížek, 2012). This stage talks about providing a fair salary. The next stage is security needs, which talk
about steady working conditions and benefits. After this comes the social needs and esteemed needs, these stages include social
concerns and recognition concerns respectively. The third stage includes the employees having a quality relationship with peers,
subordinates and, boss, which are also compatible with each other. The fifth stage is called self-actualized needs which cover the
achievement concerns (Čížek, 2012). This includes giving employees more challenging work to self-aware their potential which
will lead to motivation. This theory helps in understanding the various stages in motivating employees and in finding out the
stages that need to be strengthened.
The second most effective theory for this research is Taylor‟s scientific management. This theory is one of the first
theories written on employee motivation. This theory claims that money is the best substitute for motivating employees (Dobija,
Górska, Grossi, & Strzelczyk, 2019). The theory says that employees don‟t always enjoy their work which leads them to slack
hours. To prevent this issue, their work needs to be broken down so that it is more achievable. Employees should be paid based
on the result they bring in the organization. This creates a non-zero-sum game for the employee and the organization.
employees. If the employees are provided with a higher salary, then that could result in a better performance of the employee.
The second strategy or technique advised is changing the leadership style. If the superiors maintain a healthy relationship with
the subordinate, then it affects the work progress of the employees as there would be no communication barrier between them.
This helps the employees to share their problems and grievances or discuss any difficulty they are facing while working. The
superior can find an alternative solution and therefore can motivate the employee by guiding and encouraging the subordinate.
There are various other strategies advised that positively affect an employee‟s motivation such as employee engagement, ob
rotation, delegation, and so on (Kroon et al., 2017).
4. Data Analysis
The following results were received and analyzed with the help of a questionnaire.
4.1 Which of the following factors do you believe causes low employee motivation?
50% of the employees feel that a poor reward system is the cause of low employee motivation. A reward system is
created to motivate and retain employees (Wasiu, & Adebajo, 2014). A reward system plays a vital role in keeping employees
happy because this system consists of many aspects within it. Dull work environment and long working hours are given 20%
vote each, for the cause of low motivation. According to Maslow‟s theory, work environment and long working hours can cause
de-motivation in the workplace (Čížek, 2012). The environment does play a major role in an employee‟s mindset. Long hours
can cause stress to the workers and decline their productivity in the long run.
50% of the employees feel that absenteeism can be prevented by motivation. Absenteeism can be caused due to
neglecting the task assigned (Wasiu, & Adebajo, 2014). This shows that the employees feel that motivation impacts enthusiasm
the most. If the employees are motivated, then the work feels easier to perform. 30% of the employees feel productivity increases
due to motivation. Motivation in the workplace is created to keep employees productive. Increased creative skills and innovation
have both 10% each. This indicates that employees tend to feel mentally stronger when motivated. Vote on these categories is
less because their impact is on a long run only. This data shows that motivation impacts productivity and enthusiasm.
4.3 In your opinion, which factor would help in increasing employee motivation?
The data collection assisted that the greatest number of votes were for „Recognition for work‟, followed by the second
most votes for the option „All of the above‟. As stated by Scott (2019), it is proven that monetary and non-monetary; both types
of rewards play a vital role in employee‟s motivation. This statement is further proved with the help of our research as the
majority of the votes were in favor of an improved or new rewards program.
4.4 Do you feel that employee motivation is impacted by rewards and recognition system?
Out of 30 respondents of the questionnaire, more than 50% voted in favor, agreeing to the fact that rewards and
recognition program impacts employee motivation. A small percentage of the workers disagreed with the statement and the
others went for a neutral option. This data further acknowledges the fact that an employee rewards program is effective in the
workplace (McQuerrey, ND).
The aim of this question was to highlight the importance of the rewards system and what the employees feel about it.
The questionnaire was also answered by a person from the HR department and 3/4th of the respondents agreed to the
statement. Only 1/4, i.e. 5 people disagreed with the statement and thought a rewards system isn‟t a necessity for work.
4.6 How does the rewards and recognition program help you as an employee?
`This was the most important question of all. This question helped acknowledge the employee‟s point of view, of how
rewards and recognition program helps them. From the result gathered, it is seen that more around 29% voted for „all of the
above‟ option and the same percentage voted for „makes us feel recognized‟ option, whereas the rest of the figures are scattered.
Rewards programs bring in about a lot of benefits and positivity apart from increased motivation. The rewards programs also
help build employee loyalty which in the future helps for retainment, improved productivity, and so on (Antoni, 2012).
4.7 Which of the following is a sign of a poor reward and recognition system?
The bar chart indicates “High absenteeism rates” and “decline in productivity” are the most voted categories by
attaining 33.3% votes respectively. “low motivation” and “high employee turnover rate” was the least voted factors with 10%
votes respectively. And the rest 13.3% believe that all factors stated are an indication. Henceforth, we estimate that high
absenteeism and reduced productivity are the highest voted factors because they may have observed the same in their work
environment. As in, generally, low motivation is seen as the greatest indication of a poor reward scheme (Pinto & dos Santos,
2018) which does not seem to be the case here as it was the third least voted factor. Good reward systems boost morale and
enhance their performance resulting in, increased productivity and minimal absenteeism rates (UK Essay, 2018).
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