How Effective Motivational Incentives Used Within the Organization to Increase Employee Performance

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TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

Introduction1

Problem Statement1

Research Questions2

Hypothesis2

Structure of the thesis2

CHAPTER 2: LITERATURE REVIEW4

Introduction4

Monetary Rewards and Theory of Incentives in Economics4

Job Satisfaction6

Reward System6

Monetary-Based Reward Program7

Nonmonetary-Based Reward Program8

Summary8

CHAPTER 3: METHODOLOGY10

Mixed Research10

Classification of research methods10

Steps in mixed methodology11

Strength and weakness of the mixed research12

Instrument for data collection13

Purposeful Sampling13

Data Collection14

REFERENCES15

CHAPTER 1: INTRODUCTION

Introduction

Organizations major desire is to improve retention issues, minimize turnover and improve employee performance 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.

Problem Statement

"Satisfied employees tend to be more productive, creative, and committed to their employers" (Syptak, Marsland, & Ulmer, 2009, p. 26). To improve performance, many organizations strive to maintain satisfied employees through incentives.

Research Questions

The purpose of this study is to explore the impact of a nonmonetary and monetary incentive program on employee performance. The research questions are as follows:

What are the different incentive programs?

How employees are motivated through incentives?

How incentives increase employee performance?

Hypothesis

This research has the following hypothesis

There is a positive influence of incentives on employee performance

There is a positive influence of incentives on employee motivation.

Structure of the thesis

Chapter I: Introduction

The research subject will be introduced in the start, consisting of the aims and objectives of the research as well as its logic and reasons. Additionally detailed research questions will be mentioned, to give an analysis of argumentation, and the main themes will be introduced that the research desires to analyse.

Chapter II: Literature Review

The data for literature review are gathered from secondary sources which are available online. The literature review section discusses use of monetary and non monetary rewards leads to satisfaction of employees.

Chapter III: Methodology

The qualitative research approach is used for this study. This qualitative research aim is to study the impact of a monetary and nonmonetary reward program on employee job satisfaction at Asda in Dagenham.

Chapter IV: Findings

Outcomes from the interpretation of the information or data gathered from survey are included in this segment.

Chapter V: Discussion & Conclusion

The conclusion of research covers the following things:

Consists of the general overview and major discoveries of the research.

Determine segments for more research.

CHAPTER 2: LITERATURE REVIEW

Introduction

One of the principal purposes of the literature review is to clarify the relationship between the proposed study and the previous work conducted on a topic.

Monetary Rewards and Theory of Incentives in ...