The Relationship between Compensation and Rewards and Performance of Employees: A Survey of Small and Medium Sized Firm

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ACKNOWLEDGMENT

I would like to acknowledge the efforts for my supervisor, colleagues, peers, and family members who have supported me throughout this dissertation.

DECLARATION

I [type your full first names & surname here], declare that this dissertation is based on my individual efforts. The content of this dissertation reflect my individual opinions and efforts and does not represent the perception of the university.

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ABSTRACT

This research aimed to understand the relationship between compensation and rewards and performance of employees. For this study, the case of small and medium sized organisations was chosen and discussed. In order to find out the impact of rewards and compensation on employees' performance, quantitative research methodology was selected. Data was gathered from both primary and secondary sources. The participants of this research were employees working at SMEs. The participants were from five small and medium sized organisations, and the total number of participants was 100. According to the findings of this study, there is a correlation between employees' performance and rewards and compensations received by them. The rewards which influence employees' performance and motivate them include recognition, acknowledgment, bonuses, salary, and others.

ACKNOWLEDGMENTii

DECLARATIONiii

ABSTRACTiv

CHAPTER 01: INTRODUCTION1

1.1 Background of the Problem1

1.2 Theoretical Framework2

1.3 Problem Statement5

1.4 Aim of the Research5

1.5 Research Questions5

1.6 Objectives of the Study6

1.7 Significance of the Study6

1.8 Purpose of the Study6

1.9 Definition of Terms7

CHAPTER 02: LITERATURE REVIEW9

2.1 Employee Motivation and Company Performance17

2.2 The Concept of Rewards: A Wider Perspective17

2.3 Use of Rewards in Motivation19

2.4 Factors and Approaches that Constitute Employee Motivation22

2.5 Approaches of Employee Motivation and Small or Medium Sized Organisations24

CHAPTER 03: METHODOLOGY26

3.1 Quantitative Research Methodology26

3.2 Research Design26

3.3 Data Sources27

3.4 Sample Selection27

3.5 Research Instrument27

3.6 Ethics28

3.7 Method of Data Analysis28

3.8Research Discovery29

3.9Topic Development29

3.10Work Planning29

CHAPTER 04: RESEARCH PLAN31

4.1 Time Scale31

4.2 Expected Outcomes31

4.3 Expected Problems31

CHAPTER 05: FINDINGS32

Section 01: Basic Information32

Section 02: How important are the following to you?36

Section 03: Express the Degree to which you Agree or Disagree with the following statements39

Section 04: Indicate your level of satisfaction or dissatisfaction with the following statements42

Hypothesis51

CHAPTER 06: DISCUSSION AND CONCLUSION52

6.1 Recommendation54

6.2 Further Research54

REFERENCES56

CHAPTER 01: INTRODUCTION

The first chapter of the research is introduction. The introduction section includes a background of the study, theoretical framework, problem statement, research aims and objectives, significance of the study, and research questions.

1.1 Background of the Problem

Human resource management is an essential organisation function which is particularly important for entrepreneurial firms because they are based on the intellectual level of employees (Williamson, Cable and Aldrich, 2002, pp. 83). Human resource is considered to be one of the most important tools used to achieve a competitive advantage. It allows an organisation to differentiate itself from its competitors. However, in order to achieve a sustainable competitive advantage, it is important to utilise this tool in an effective manner (Madhani, 2012, pp. 31).

One of the important roles of human resource management, in an organisation, is to reward employees and to provide them with incentives. Rewards and incentives are considered important because they are associated with the performance of ...