Study into Reward Systems and Their Effect on Employee Motivation Essay

Reward systems are one of the basic constituents of a public presentation direction system and a wages system is a wide term and it encompasses to include all organisational constituents linked to wagess including people, procedures, regulations, ordinances, processs and determination devising processes that are involved in apportioning the benefits and compensation among employees in return for the part that have made to the organisation in footings of the work achieved ( Griffin and Moorhead, 2009 ).

Employee motive is defined as the willingness or attempt exerted by the employee in order to accomplish ends of the organisation and this phenomenon of motive is cosmopolitan and consequences because of certain unsated desires of the employee. The basic motive procedure has four stairss ; an person has certain penchants and likes and disfavors that he/she wants to carry through. When these wants and desires are non satisfied, a thrust or motive is created in that individual to accomplish that end ( Gunkel, 2006 ).

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Keeping these two of import factors in head, this survey is aimed at finding the significance and importance of the impact that reward systems have on employee motive. A survey conducted to find the impact of wages on motive found that there is a direct relationship between the degree of wagess and intrinsic motive, the higher the wages, the more will be the extrinsic motive ( Ryan and Deci, 1985 ) . Another survey was besides conducted that endeavored to inspect the relationship between wagess and employee motive and revealed that there is a statistically important impact of payment, publicity, acknowledgment, benefits on employee motive ( Khan, Farooq and Imran Ullah, 2010 ) . Roberts ( 2005 ) besides supports this and his findings reveal that better the wages and acknowledgment systems lead to higher degrees of motive and satisfaction among employees and hence may take to higher degrees of public presentation and productiveness.

These facts revealed by assorted old surveies emphasize the importance of finding the relationship between wages systems and employee motive and motive affects the productiveness of the employees and hence has serious deductions for the company. The intent of this research survey is to research the relationship in a company specific puting utilizing ASDA and find how the entire wages construction affects the employee motive degree in that company.

Problem Statement

The job being discussed is current every bit good as relevant for any organisation as employees are the chief resource for any organisation and these wagess straight have an impact on them. Motivation is an intangible and subjective term and is related to human behaviour while reward systems are nonsubjective and clearly good defined and trying to associate one subjective construct to an nonsubjective 1 is a dashing undertaking.

The relationship between motive and wagess can besides be viewed from the position of human behaviour and this job existed and is likely to go on into the hereafter as human behaviour remains the same and employees bring their behaviours to the work topographic point every bit good. Therefore the consequences generated by this survey will hold practical applications in apologizing future wages systems. Human behaviour is reinforced or abandoned depending on the effects that action has generated. When the individual experiences anything good or fulfilling related to an action so it consequences in positive support and the individual will seek to reiterate the behaviour in future. On the other manus, negative support occurs if an action consequences in unfavorable judgment. These rules are every bit applicable to the employees in a workplace and wagess can be considered as factors that help in reenforcing a desirable behaviour like good public presentation ( Wilson, 2003 ) . Therefore the intent of wages system is to reenforce positive behaviours so that employees repeat these behaviours.

The job therefore to be addressed by this research survey is to look into what motivates employees and what wagess are being offered to them. In instance the wages is something that does non hold any significance for the employee so it may non be plenty to actuate the employee. Similarly, another job to be addressed is that how the wages systems are developed and implemented so that these appear as positive effects for demoing the desired behaviour which in this instance is good public presentation and reenforcing this effect which leads to motivation among employees.

The general intent of this survey is to look into what are the factors that motivate employees to work and how these factors can be incorporated into a wages system and what is the impact of these wagess on employee motive. In order to look into these factors the sample of employees to be studied belongs to a company called Associated Dairies & A ; Farm Stores Limited ( ASDA ) . The basic overview of the research is that ASDA employees will be asked to make full out questionnaires through which their motive will be judged in relation to the entire wages system they are being offered.

Introduction to the Company

Associated Dairies & A ; Farm Stores Limited ( ASDA ) was established in 1949 in Britain and over the old ages it has grown into a supermarket concatenation. Initially its merchandise line was limited to food market and general ware but over the old ages the merchandise markets have been diversified and ASDA besides operated a fiscal services section every bit good. It is a really successful concern and owing to its success, Wal-Mart decided to get ASDA and run it as its subordinate in the twelvemonth 1999. It has been an advanced company that has introduced typical shop formats in Britain like one halt shopping superstores during the 1970aa‚¬a„?s, debut of supermarket owned trade name and so eventually moved into fiscal services concern every bit good. This portfolio requires a big figure of employees who specialize in their ain countries of expertness and the company at present employs 170,000 co-workers in 400 shops[ 1 ].

ASDA is one of the largest retailing ironss in UK along with a few other noteworthy names such as Tesco and Sainsbury. ASDA has more than 1000 employees pull offing and running its shops throughout the state. The entire wages system of ASDA includes constituents include Bonuss, Colleague Discounts, Private Medical Cover, Share Plans and portion save Plans, STAR Points, Colleague Share Ownership Plan, Pension, Voluntary Benefits, ASDA Stars, Long Service and employee acknowledgment[ 2 ]. Reports have shown that ASDA has enlargement programs on the skyline and the company is expected to get Netto shops in the UK which will assist ASDA increase its figure of shops and employees[ 3 ].

Developing a wages system at ASDA and that keeps all or most of the employees motivated are a hard undertaking. There is a desperate demand to analyze how the entire wages system of ASDA is viewed by the employees and what are the booby traps of the system. Bing such a big supermarket concatenation runing throughout the state with a big figure of employees and programs of farther enlargement makes ASDA an ideal campaigner to be studied for this survey.

Purposes of the Study

Developing and administrating reward systems is one of the most of import duties of the human resource direction section. Wagess are given to the employees in return for the work they contribute and are besides a signifier of acknowledgment for the employees. Wagess can be both pecuniary and non pecuniary. When one thinks about wagess, pecuniary wagess are the most obvious 1s that come to mind nevertheless these may non needfully be the most effectual and include factors such as basic wage, fillips, committee etc. On the other manus non-monetary wagess can be termed as calling inducements or intrinsic wagess and include factors such as publicities, holiday trips and so on ( Christiansen, 2000 ) . The purposes of this survey hence include:

Explore the significance of wages systems in finding motive degree of employees

Researching the major constituents of the entire wages system

Researching they types and constituents of motive

Aims of the Study

The chief constituents of any reward systems include policies, patterns, constructions, strategies and processs ( Armstrong, 2002 ) and the intent of this survey is to analyze these procedures is ASDA and analyze how occupation rating and public presentation direction, patterns are being used for actuating employees through the usage of wages systems. The aims of the survey include:

What type of wages systems are in topographic point?

How have these reward systems been developed and how are these systems kept current and up to day of the month?

Make the employees to the full understand and appreciate these wages systems?

Make the employees view these wages systems as being effectual and in line with their demands and demands?

What is the degree of occupation satisfaction and motive in ASDA employees?

Do employees see the assessment procedure as merely, just and just?

Does the wages systems discriminate employees on some footing such as age and gender etc?

Make the wagess systems address factors that motivate or de actuate the employee?

What are the losing links between what the employees want and what the wages system is offering?

Consequences Expected

The consequences expected from this survey are to be able to bring forth a list of factors that serves as incentives and de incentives for the employees and what they are anticipating signifier the wages system. The most of import factors impacting employee motive can be identified through this procedure. The survey is besides expected to assist dissect the wages system of ASDA and compare whether this wages system addresses the employeeaa‚¬a„?s outlooks and what are factors that are missing in the system. Finally, the comparing will uncover what elements need to be incorporated into the wagess systems o make it more effectual in actuating employees.

Conceptual Model

The research survey will be based on primary informations aggregation that will be carried out through questionnaires to be filled in by the employees of the company. The questionnaire has been designed to analyze the chief constituents of the wages system of ASDA, whether this system has been developed maintaining the employee and organisational demands in head and how it does associate to the extrinsic and intrinsic motive among the employees. A brief description of these three subjects is discussed in the following few paragraphs.

.The chief constituents of any wages system include policies, patterns, constructions, strategies and processs ( Armstrong, 2002 ) . Procedures are developed so that the worth of the occupation and the part of the employee can be measured and may include occupation rating and public presentation direction, patterns are for actuating employees through the usage of wages systems, constructions are developed to associate the value of the place to the degree of benefits offered, strategies are for supplying inducements based on the public presentation and processs refer to the ways in which the system is maintained so that it operates expeditiously. In the same manner, the entire wages system of ASDA will be studied to find how effectual it is in estimating employees.

Even though a wages system is developed maintaining in head its intended audience which are the employees but it besides needs to see the demands and demands of the organisation. Harmonizing to Griffin and Moorehead ( 2009 ) , wagess carry both symbolic every bit good as surface value for the employees. The surface value refers to the nonsubjective value that the wagess offers to the employee and can be measured like for illustration a 20 % wage rise. On the other manus wagess besides have a symbolic or subjective significance that carries some personal worth for the employee for illustration wagess that help an employee realize that his worth is more than the other employees. This survey will research how effectual the wages system in ASDA is in covering with the aspirations of the employees.

There are two facets of motive, extrinsic & A ; intrinsic, which shows that motive is subjective and has different significances for different people. Extrinsic Motivation is defined as the desire to execute a certain behaviour or undertaking because of the contingent consequences or the positive effects that action produces while Intrinsic Motivation is a desire to make something based on the enjoyment and involvement in that undertaking ( Ryan and Deci, 2004 ) . Intrinsic motive includes factors such as occupation satisfaction, accomplishment of personal ends, conformity to criterions, equity, squad spirit and ethical criterions etc ( Frey and Osterloh, 2002 ) . The survey will try to bring out whether the entire wages system in ASDA trades with both extrinsic and intrinsic factors or non.

Outline of Subsequent Chapters

The introductory chapter will be followed by a reappraisal of the literature to construct a foundation for this research survey in the visible radiation of the surveies carried out antecedently and will cover with the major theoretical subjects relevant to this survey. The following chapter will supply a elaborate description of the methodological analysis that will be undertaken for planing and make fulling the questionnaires to roll up informations for the research. The following chapter will them travel to more specific issues and depict the current wages system being offered in ASDA while the subdivision following this one will take on a critical attack and analyze and measure the system. After the analysis, informations analysis and findings will be presented in a separate chapter and the concluding chapter of the survey will sum up and reason the full research survey.