Does the Use of Monetary and Non Monetary Rewards Leads to Satisfaction of Employees in Retail in LONDON (Case Study of ASDA in Dagenham)

ACKNOWLEDGEMENT

I would first like to convey my gratitude for my research supervisor, colleagues, peers and family whose immense and constant support has been a source of continuous guidance and inspiration.

DECLARATION

I [type your full first names & surname here], declare that the following dissertation/thesis and its entire content has been an individual, unaided effort and has not been submitted or published before. Furthermore, it reflects my opinion and take on the topic and is does not represent the opinion of the University.

Signature:

Dated:

TABLE OF CONTENTS

ACKNOWLEDGEMENTii

DECLARATIONiii

CHAPTER 01: INTRODUCTION5

Introduction5

Background of the Study6

Problem Statement7

Purpose of the Study8

Rationale of the Study8

Research Questions9

Definition of Terms10

Significance of the Study11

CHAPTER 02: LITERATURE REVIEW13

Job Satisfaction13

Reward System20

Monetary-Based Reward Program24

Nonmonetary-Based Reward Program25

Summary31

REFERENCES32

BIBLIOGRAPHY35

CHAPTER 01: INTRODUCTION

Introduction

Organizations major desire is to improve retention issues and minimize turnover through various channels of monetary and nonmonetary rewards. Monetary rewards are important because “salary is the basic and most important reward that people get from working”. Several articles quote that cash is a powerful retention tool, where as others disapprove this assertion. In terms of effectiveness of non monetary reward conflicting views are also observed. The article, "GE Makes Its Reward System Pay," notes that an increase of 10% in base pay is needed to motivate employees (General Electric Makes, 2007, p. 279-281). Jeffords, Scheidt, and Thibadoux (2007) comment that as employees get more experience and get older, the importance of monetary rewards decreases. Consequently, nonmonetary incentives such as challenging assignments, special projects, and personal recognition become more important as the employee gains experience or gets older.

Since employees want a more balanced work life and seek free time, many organizations are offering concierge services, fitness centers, and child-care facilities. Jeffords et al. state that the added benefits of productivity and performance outweigh the cost of providing for these services. Times are changing and employers need to adapt to these changes by offering incentives unique to today's workforce.

Background of the Study

The focus of this study is to examine whether the use of monetary and non monetary rewards leads to the satisfaction of employees in London retail. The main focus of this study is on the Asda stores in Dagenham. This study also highlights the need for retention of human capital at Asda during competitive times. Therefore, the purpose of this qualitative study is to explore the impact of a monetary and nonmonetary reward program on employee job satisfaction at London retails.

In UK Asda is a supermarket chain, offering food, clothing and general merchandise. Asda is subsidiary of American retail giant Wal-Mart. Currently Asda is the second largest UK retailer after Tesco and Sainsbury.

Asda accounts for almost half of the Wal-Mart international sales. As a wholly owned division of Wal-Mart, Asda is not required to declare quarterly or half-yearly profits. Asda has featured prominently in lists of "best companies to work for", appearing in second in the list of The Times newspaper in ...