Reward System and Employees Performance Essay Example | Topics and Well Written Essays - 1750 words

Reward System and Employees Performance - Essay Example Reward System – A Motivational factor in Developing and Managing Employee’s Performance - A Case Study based on a UK Company The organization is a reputed UK group with a chain of supermarkets across the country and sells clothes, food and household products. Between 2004 and 2005, the company employed around 70,000 people with 65,000 for UK operations of which 78% are female and 13% are from ethnic minority groups (MarksandSpencer.com, 2006). Along with a commitment towards equality and diversity, the group is also committed towards providing the right levels of rewards and incentives to its employees. According to Marks and Spencer workplace facts as claimed by the company, pay and benefits to employees are an important part of human resource management as retailers compete to provide the best remuneration for the best people (MarksandSpencer.com, 2006). The company maintains that the rewards package given to its employees is flexible, competitive, focused on superior results and is aimed to support personal choices of personal lifestyles. The elements of the reward packages of the company include fixed and competitive pay rates, variable performance related pay and a wide range of other benefits. In this study we would prepare a detailed questionnaire to understand the impact of these benefits, payment and reward systems on employees and we would also determine whether these rewards actually help in improving motivation and how this would relate to improved company performance. Marks and Spencer has boasted of 73% employee retention over 2004-2005 and retention may be considered as an important indicator of employee satisfaction and motivation. (MarksandSpencer.com, 2006). Questionnaires would be distributed to employees of Marks and Spencer to determine whether rewards systems given to them have a positive impact on their motivation and performance levels. Aims of Research: The aim of the research is to determine the relationship between reward systems and benefits given to employees and levels of motivation that affect work performance and overall company performance. This study would determine whether increased rewards help in providing job satisfaction and whether reward systems also aid in staff retention and work performance. Research Objectives: The objectives of the research are given as follows: To determine whether rewards and benefits help in improving motivation in employees To determine the reasons for differences in employee retention within companies To determine the performance levels of employees with and without rewards To evaluate whether improved employee motivation and job satisfaction can also lead to improved company performance To evaluate whether rewards, incentives and benefits are effective tools in human resource management Background/Literature Review: Companies use different means of rewarding employees and Brody et al (2001) discuss merit pay plans used by companies to motivate and reward employees. The theory of motivation would highlight that rewards and reinforcement for individual accomplishments should produce positive results although there may also be negative outcomes (Brody et al, 2001). Brody et al suggest in their study that when individuals are involved in hiring and merit allocation for employees, their prior commitments have significant effects on rewards allocated to the employees. This shows that a manager's