DISSERTATION

ON

“A STUDY OF EFFECTS OF REWARD SYSTEM ON EMPLOYEES MOTIVATION”

Submitted To:

Faculty of Management

In partial fulfillment of the requirement of the award for the degree of Integrated

Masters of Business Administration

GLS University

Under the guidance of

Prof. Jaimini Yagnik

Submitted By:

Jai Rathor

[Batch: 2018-23 Enrollment No: 201800510010104]

Raj Varma

[Batch: 2018-23 Enrollment No: 201800510010115]

IMBA Semester- V
 INTRODUCTION

Employee Motivation is an integral part Human Resource Management and it

plays a crucial role in the long-term growth of an organization. It can be used in
directing employees’ behavior and actions for a constructive vision or goal. Proper
motivation turns an employee into a loyal asset and helps in maintaining the
retention rate.
The word motivation is derived from Latin word ‘movere’ which means ‘to move’.
Motivation is something – a desire, a want, need or drive − that moves or spurs an
individual to act in a particular way to achieve a goal or objective.
The factors that stimulate the behavior and actions of the people are as
follows :-

• Success and advancement in Life.

• Desire for Money.
• Desire to be empowered.
• Work Satisfaction.
• Recognition in the Society etc.

Employee motivation is defined as the commitment, the energy levels, and the
creativity that the employees bring to their job. Even though employees’
motivation doesn’t directly influence organization’s growth, it is like a necessary
pre-condition because lack of motivation among the employees can have a
detrimental effect on their performance.
Fact:- Any organization is built with employees; hence, employees are called as
the building blocks of any organization. Success of any organization is in the hands
of the employee and their collective efforts. Employees contribute their work and
skills collectively to the organization for its growth, only when they are motivated.
 IMPACT OF WELL – MOTIVATED EMPLOYEES.

Well-motivated employees are an asset to the organization and they write the
success of organization and therefore, every organization should accord utmost
attention to employees’ motivation.
A well-motivated employee stays with the organization through its thick and thin.
Motivation is essential for establishing an effective relationship between the
employer and the employees.
In the modern management system many methods of motivation have been put
into practice to enhance productivity of the employees. Apart from various
methods of motivation, there are certain well-acknowledged motivators such as
job security, nature of job and system of incentives and rewards for the employees
that play a decisive role in ensuring employees’ productivity and efficiency.
• FINANCIAL MOTIVATORS

The motivators related to money are called financial motivators. Regular

and good wages and salary, bonus, periodical increments, profit sharing,
leave with pay, medical reimbursements are some of the common financial
motivators. Lack of these motivators has a negative bearing upon the
performance of the employees.

• NON FINANCIAL MOTIVATORS

Certain motivators that are not related to money but have a positive impact
on the employees are called non-financial motivators. Some of the non-
financial motivators are as follows.
I. Job security.
II. Participation.
III. Status and Pride.
IV. Delegation of authority.
V. Quality of work life.
VI. Performance appraisal.
• FAMILIARITY WITH THE EMPLOYEES.

As the manager and the employees together work towards achieving the
organizational goals, the former needs to nurture some familiarity with the
latter. It is the responsibility of the manager to be acquainted with his/her
employees for knowing them better and maintaining a constructive and
cordial relationship. A work environment built on mutual trust and
cooperation between the managers and the employees brings in
development and growth of the organization.

• INTRODUCING NEW EMPLOYEES.

New employees should be introduced in such a manner that they will find
themselves comfortable and assured in the new work environment. It will
motivate them to work with energy and drive them towards realizing the
organizational goals.

• EFFECTIVE COMMUNICATION.

Communication plays an important role in smooth functioning of an

organization. An effective communication clears many problems and builds
a trust among the employee with transparency. Face-to-face communication
with the employees is more effective than other means of communicating
and it truly motivates them a lot.
 LITRETURE REVIEW

1. (Denhardt et al. (2008))

also define motivation as an internal state that causes people to
behave in a particular way to accomplish particular goals and
purposes. Whilst it is not possible to observe motivation itself, it’s
possible to observe the outward manifestations of motivation. For
instance, the acquisition of money may be an extrinsic motivator, but
it is simply the manifestation of the internal drive to meet intrinsic
needs like purchasing food, paying rent for shelter, or acquiring high
social status.

2. (Koyes , 2006)

This study addresses the issue of whether positive employee attitudes

and behaviors influence business outcomes or whether positive
business outcomes influence positive employee attitudes and
behaviors. We hypothesize that employee satisfaction, organizational
citizenship behavior, and employee turnover influence profitability and
customer satisfaction. Data were gathered from the units of a regional
restaurant chain via employee surveys, manager surveys, customer
surveys, and organizational records. Cross‐lagged regression analyses
show that employee attitudes and behaviors at Time 1 are related to
organizational effectiveness at Time 2. Additional cross‐lagged
regression analyses show no significant relationship between
organizational effectiveness at Time 1 and the employee attitudes and
behaviors at Time 2. These results add to the evidence that HR
outcomes influence business outcomes, rather than the other way
around.
3. (Kurt Matzler 2006)

Employee satisfaction is one of the most important drivers of quality,

customer satisfaction and productivity. In this study the researchers
have investigate an important driver of employee satisfaction.
Researchers have argued that interpersonal trust strongly influences
employee satisfaction and, therefore, employee loyalty. To test the
relationships between these constructs researchers have measured trust
in management and trust in peers, satisfaction and loyalty of employees
of an Austrian company in the energy sector. The results of the
statistical analysis using structural equation modeling with Partial
Least Squares (PLS) confirm a strong link between trust, employee
satisfaction and employee loyalty.

4. (Sarihasan, 2014)

The purpose of study is to know relationship between employee

motivation and job satisfaction. Human resource or employees of any
organization are the most vital part so they need to be inclined and
influenced towards tasks fulfilment. Data is collected by research
question by quantitative approach. The findings of study were job
satisfaction is a very important attribute which is currently measured
by organisations in order to ensure that their workforce is optimal.
Employee performance can be defined as the productivity and Quality
of work of an individual employee. Studies have revealed that job
satisfaction enhances employee performance.
5. (Anitha, 2014)

In her research she wanted to find to identify the key determinants of

employee engagement and their predictability. Casual study was
done and 700 responses were collected through questionnaire, out of
which only 383 were taken into consideration as it was only valid.
She found that all the factors identified were predictors of employee
engagement and the variable which has major impact were working
environment and team and co-worker relationship.

6. (Madhura Bedarkar, 2013)

They were willing to find the studies which covered the business in
managing and engaging employees. They have used descriptive
research and has found that the companies must give their employees
the liberty to make their work exciting and creating environment for
having an engaged work life. Employees are the key assets to any
organization and if they are not given the right space and time to make
a perfect blend of work and fun at workplace, then the sense of dis-
engagement will set in them.

7. (Abdulateef Ameen, 2019)

The purpose of this study was to check the employee’s performance

upon which the organizational success hinges refers to the outcomes
achieved and accomplishments made at work by an employee. This
research is a theoretical discussion. The study examined the effect of
employee engagement on employee performance and it is found that
employee engagement is closely linked with employee performance.
8. (M Braud Shuck, 2011)

The purpose this paper was to examine an employee's experience of

being engaged in his/her work. Researchers have done conceptual
framework integrated and have conducted semi structured interview
and recorded observations at a large multinational service corporation.
They found out that post analysis, three themes emerged: relationship
development and attachment to co-workers, workplace climate and
opportunities for learning. Also, findings highlighted the development
of relationships in the workplace, the importance of an employee's
direct manager and the critical role of leaning in an engaged employee's
interpretation of work.

9. (Surekha Rana, 2001)

To know the initiative of employees for their work & association with
workplace lead their work performance is the purpose of study. The
co-relational study was undertaken to examine the relation among
work engagement on employees work performance. An internet-based
survey was administered to a homogeneous sampling of organizations
from fields of IT/ITE/ Telecom. Simple Random sampling was used to
select the employees from middle and lower managerial levels. From
the 200-questionnaire circulated 134 valid responses were collected.
Hypothesis were tested through co-relational and regression analytic
procedures to predict and estimate the relationship among variable. The
findings of the study showed that all the constructs of work engagement
 were predictors of employee performance and work engagement had
significant impact on employee performance.

10.(Durga Devi Pradeep, 2011)

The purpose of the study is to focus on the transformational,
transactional and laissez faire leadership model and the relationships
between these leadership style and employee performance. Author
used random sampling method with the help of questionnaire he
collected the data of 215 respondents. The result of the study is that the
leaders must have the ability to attract and influence their subordinate
be able to set clear standards of performance to their peers and act as a
best role model to the subordinates

11.(Prempeh Duah, 2017)

The purpose of study 100 workers was selected. A lot of challenge were
identified by the respondents as they impact on organizational career
management practice. The research used is quantitative studies in this
study. The finding of author was good remuneration, pleasant co -
worker relationship coupled with good working condition play an
important role in getting employee to be satisfied on their job and
subsequently directly reflecting in their intention to remain committed
in an institution.

12.(J Barton Cunningham, 2000)

The article presents results that indicate that trust and job design are
complementary concepts in understanding outcomes like intention to
 quit and satisfaction. We conceptualized a worker's beliefs that a
supervisor can be trusted as being composed of three main elements -
beliefs in the supervisor's predictability, benevolence and fairness. This
was motivated in part by a desire to conceptualize trust in a way that
distinguished it from leader-member exchange (LMX) quality. The
capacity of this measure of trust to predict self-reported outcomes was
then compared with a job's motivational potential score, as a way of
testing the trust measure's criterion validity. To do so, the results from
two separate surveys were analyzed. The first was based on the
questionnaire responses of 535 employees in the telephone industry in
the province of British Columbia; the second, of 230 service station
employees from across Canada. In the studies reported here, supervisor
relationships accounted for a significant amount of the variance on a
variety of criterion measures. The results also suggested that
perceptions of trust act independently of job design factors in affecting
the outcome variables of absence, intention to quit, satisfaction and
performance. In addition, the results indicated trust to be as important
as job design factors in predicting outcomes.

13.(Bartol and Martin (1998))

describe motivation as a power that strengths behaviours, gives route
to behaviour, and triggers the tendency to continue. This explanation
identifies that in order to attain assured targets; individuals must be
satisfactorily energetic and be clear about their determinations.
14.(Denhardt et al. 2008)

also define motivation as an internal state that causes people to

behave in a particular way to accomplish particular goals and
purposes. Whilst it is not possible to observe motivation itself, it’s
possible to observe the outward manifestations of motivation. For
instance, the acquisition of money may be an extrinsic motivator, but
it is simply the manifestation of the internal drive to meet intrinsic
needs like purchasing food, paying rent for shelter, or acquiring high
social status

15.(Denhardt et al. (2008))

further stated that motivation is not the same as satisfaction.

Satisfaction is past oriented..
OBJECTIVES
Primary:
● To study the effect of the reward system towards the employees motivation.
● To analyze the satisfaction level of employees towards the reward system.
Secondary:
● To identify barriers and concerns of employees related to the reward system .

RESEARCH SCOPE :
Our scope is to get to know the importance of the effect of the reward system of
employee motivation.

RESEARCH METHODOLOGY

Research design:
● A research design is the set of methods and procedures used in collecting and
analyzing measures of the variables specified in the research problem. A
research design is a framework that has been created to find answers to
research questions. In this research both Primary and Secondary data are
collected for research survey. The design of a study defines the study type,
research problem, Hypotheses is independent and dependent variables,
experimental design, and, if applicable, data collection methods and a
statistical analysis plan.
● Descriptive research, also known as statistical research, describes data and
characteristics about the population or phenomenon being studied.
Descriptive research answers the questions who, what, where, when and how.
 ● This research is based on descriptive research to complete this study primary
as well as secondary source of information is used.

● To study primary data is collected by using a detailed structured questionnaire

which was administered to a sampling method. The study has been carried out
in Ahmedabad city.

DATA COLLECTION :

● Google docs is to be prepared for all those respondents to whom we are

approaching and because it is also convenient for both the respondent and the
researcher.
● The population select will be all ages of employees.
● The secondary data will be collected through various literature reviews and
articles.

SAMPLING DESIGN:

● Sample size – 100-150 respondents.

● Sampling method –Non-probability convenience method will be used.
● Sample unit – Public of Ahmedabad.
● Research instrument – Google Doc.
DATA ANALYSIS

● Data analysis will be done from the responses collected from various age
group of employees.
● As primary research is to be conducted, Microsoft Excel and Microsoft Word
will be used for data analysis.
● Proper mathematical and statistical methods will be used for getting proper
results.

LIMITATIONS OF THE STUDY:

● Our geographical area is limited to Ahmedabad.

● Due to this COVID- 19 pandemic we are unable reach out to the public in
persons motivation is 12 future oriented.