PROJECT ON

“STUDY OF EMPLOYEES’ PERCEPTION OF MONETARY AND NON-

MONETARY REWARDS ON EMPLOYEE MOTIVATION AT GET-E-
IDEAS PVT. LTD.”

This thesis is submitted for the

partial fulfillment of the
requirements for the degree of
Bachelor of Business
Administration in the session
2022-23

Supervised By: Submitted By:

Prof. Aman Ma’am Prarthi Bisht

MEHER CHAND MAHAJAN DAV

COLLEGE FOR WOMEN
SECTOR 36, CHANDIGARH

1
 ACKNOWLEDGEMENT

The project report could not have been

successful without the immense
support and exemplary guidance of the
supervisor Hon. Prof. Aman Ma’am.
Her thorough monitoring and constant
encouragement throughout this project
helped in the timely completion.

I also take this opportunity to express a

deep sense of gratitude to my family
and friends for their kind co-operation
and support.

Last but not the least, my special

gratitude and thanks to the industry
persons and my colleagues for making
my experience valuable and giving me
their precious time to fill out the
questionnaires.

2
 DECLARATION

I the undersigned, hereby declare that

this entitled “Study of employee
perception of monetary and non-
monetary reward system on employee
perception” is submitted under the
guidance and supervision of Prof.
Aman Ma’am. The information has
been collected from genuine and
authentic sources. It is not submitted to
any other university or institution for the
award of any degree diploma certificate
or published any time before.

Name: Prarthi Bisht

Roll no: 4535
Class: BBA III

3
 ABSTRACT

The primary objective of the research study was

to investigate the impact of rewards on
employee performance in the example of GET-
E-IDEAS Pvt. Ltd. There were three specific
goals for the research: to assess the existing
rewards in the company, evaluate the most
preferred types of rewards for employees of all
levels and make recommendations to the
management of the company on possible
improvements for the reward system. The
quantitative data was gathered with a
specifically created online questionnaire with
61 respondents. The information was analyzed
with the help of Google Forms. The practical
part of the study indicated that the dependent
and independent variables of the research were
strongly and positively correlated with each
other. Moreover, according to the respondents,
it was concluded that only the combination of
extrinsic and intrinsic rewards ensures an
increase and maximization in overall
employees’ performance.

4
 Table of Contents

Acknowledgment
Declaration
Abstract
Chapter 1: Background of the Study
1. Introduction of the Company
1.1. Introduction of the topic
1.1.1. Concept of Perception
1.1.2. Concept of Reward
1.1.3. Concept of Employee Performance
1.1.4. Relationship between Rewards and
Employee Performance
1.2. Research Problem
1.3. Value of the Study

Chapter 2: Literature Review

2.1. Introduction
2.2. Theoretical Foundation of the Study
2.3. Types of Rewards
2.3.1. Base Pay
2.3.2. Benefits
2.3.3. Incentives
2.3.4. Development and Career Opportunities
2.3.5. Job Design
2.3.6. Performance and Recognition
5
 2.4. Employee Performance
2.5. Summary

Chapter 3: Literature Design

3.1. Introduction
3.2. Research Methodology
3.3. Target Population
3.4. Sampling Design
3.5. Data Collection
3.6. Data Analysis
3.7. Summary

Chapter 4: Data Findings and Analysis

4.1. Introduction
4.2. Data Analysis and Discussion
4.2.1. Theme 1: Reward System and
incentives being used in the GET-E-IDEAS Pvt. Ltd
4.2.2. Theme 2: Rewards and employee
incentives systems impact employee motivation
(non-monetary category)
4.2.3. Theme 3: Rewards and Incentives
system Impact on the Performance/Turnover
4.2.4 Theme 4: Perception of Employees
regarding Incentive Programs and Reward Systems
Implementation
6
 4.3: Summary

CHAPTER 5: Summary, Conclusion, Limitation,

and Recommendation
5.1 Introduction
5.2 Summary of Findings
5.3 Conclusion
5.4 Limitations

Chapter 6: References

Chapter 7: Appendix

7
 CHAPTER 1: BACKGROUND OF THE
STUDY

1.1: INTRODUCTION
Get-E-Ideas Pvt. Ltd. is a leading start-up firm that
offers the best services on digital marketing
platforms. It offers website and app design services
all around US and India.

They offer a wide range of customized services in the

field of website and App Design like iPhone App
Development, Web Development E-Commerce
Solutions, Graphic Design, and SEO. They have a
very creative, talented, devoted, and enthusiastic
team, that provides professional, constructive, and
result-oriented services to the clients. They
understand individual needs and offer solutions
accordingly. The focus is on delivering high-quality
Website Design, Development, and app design
services at competitive rates.

The company started with merely 10 employees as

a start-up in 2017 and now it has made name for
itself on the digital marketing platform over the years.
After continuous 4 years of hustle and hard work, the
company has reached a mass of more than 150
people currently working from India.

8
1.1: Introduction
In this era of globalization, every organization in the
world is improving its business processes by
adopting advanced technology and innovations. And
to keep achieving the bigger goals, an organization
tries its best to hire the most competent person for
the work. By employing competent human
resources, organizations tend to offer a better
working environment, salary packages, job security,
and empowerment (Hertelet al., 2005).

In a contemporary business climate with increased

competitiveness, the owners of businesses are
concerned about enhancing quality and performance
while at the same time cutting costs. However, the
strong economic scenario, meanwhile, has led to a
tightening of the position of the job market.
Therefore, if the small business expects effective
productivity and excellent performance from
employees, in return, the employees expect to
receive more value and recognition (Shields et al.,
2015).

The people of the organizations are one of the most

important resources of today’s firms. Human
resources and how they are managed are enhanced
because many other sources of the competition have
become lesser powerful than they used to be. The
competitive advantage has been recognized to be

9
changing which is essential to develop a different
frame of reference for considering issues of human
resource management (Dyer and Reeves, 1995).

Traditional sources of success like product and

process technology, protected markets, economies
of scale, etc. are still able to provide competitive
leverage but the human resources of an organization
are considered to be more vital for its sustainable
development. The reward system of an organization
plays a very crucial role in developing employee
satisfaction as the primary aim of the rewarding
system is to enhance extrinsic motivation by
satisfying an individual employee’s need indirectly
through pay, bonuses, and incentives (Anthony and
Govindarajan, 2007).

Hackman and Oldman, 2005, observed that in

addition to salaries and incentives, satisfaction with
the job also requires satisfaction with the different
aspects of the work, including a variety in the skills
and activities which are essential to carry out the
tasks, and autonomy in performing work. This is
certainly because the work itself might provide
opportunities for creative and task variety which
allows the employee to increase their knowledge and
changes in responsibility. In an organization,
committed employees are regarded as being willing

10
to build and maintain long-lasting relations with the
employer.

Most organizations use various rewards in their

compensation system as tools to boost the
employee’s willingness to work harder. Rewards can
range from merit increases in the salary to innovative
non-financial rewards as well. Non-financial rewards
can conclude season tickets for the employee’s
favorite sport and hand-written thank you letters.
Despite the common belief that people value their
jobs mainly for the pay, (Strumpel, 2005) argues that
employees with steady jobs who are fairly satisfied
with their incomes are more interested in non-
material aspects of the job.

Moreover, from the managerial prospects, pay

incentives are also given to the employees in regards
to improving their productivity, enhancing the level of
commitment towards the organizational work, and
attaining the satisfaction of the job themselves.
Similarly, in the IT industries of India, strategies
regarding the facilitation of financial benefits to the
employees for enhancing their motivation are
common among the leading companies of the
country.

However, there is still a need for exploring the

perception of the employees regarding the current
11
reward system and incentive schemes for the IT
companies to identify whether these schemes are
effective in satisfying and motivating them or not. For
this purpose, the present study is conducted to
explore and evaluate the perception of employees
regarding the Digital Marketing related IT companies’
rewards and incentive programs for which the case
study of Get-E-Ideas Pvt. Ltd. a Digital Marketing IT
company, is undertaken in the study

1.1.1: Concept of Perception

Perception is the attitude of employees towards the
policies concerned with pay, recognition, promotion,
quality of working life, and the influence of the group
with whom they identify (Armstrong, 2006). As
Arnold et al., (1991) comment, research evidence
has shown that people’s admitted feelings and
beliefs about someone or something seemed only
loosely related to how they behaved towards it, and
thus the study of employees’ perception is critical for
formulation and management policies of an
organization.

Dash et al., (2008) report state that the factors of

recognition for performing well, chances of
promotion and professional growth, compensation,
and incentive schemes, are perceived as motivating
factors by many employees who in turn feel satisfied.
They do point out about the development of systems

12
for the rewards, recognition, and career opportunities
is one of the several critical tasks of management in
information-based companies, and in their research,
employees name respectful treatment and
recognition as one of the six less costly and most
effective ‘management levers’ to be exercised by
management in their efforts to attract, motivate and
retain workers since employees consider such
factors to be of great importance.

Ramakrishna (2002) suggests that recognizing one’s

contributions will result in a world-class working
environment that motivates and propels people to
work better and stay on. He claims that the lack of
recognition is one of the serious demotivators for the
employees and as a result, the most organization
has introduced better reward and recognition
schemes. Strategies like building a high degree of
recognition value in every reward being offered,
reducing entitlements and linking as many rewards
as possible to performance, troubleshooting the
reward system to make sure that what it is rewarding
to what you want to happen, rewarding on time,
giving employees a choice of rewards, increasing the
longevity of rewards will motivate the employees.

1.1.2: Concept of Rewards

A reward is defined as all of the monetary, non-
monetary, and psychological payments that an

13
organization provides to its employees (Bartol and
Locke, 2000). A reward is presented only after the
occurrence of an action holding the intention to
cause the behavior to occur again. This is done with
more connected positive meanings of the behavior,
representing what the individuals want to gain from
their work or what they have perceived it to be. A job
reward is a strong determinant of job satisfaction and
also are significantly related to professionalism.

According to Gerhart and Milkovich (1992), a

compensation decision is seen to be incorporated by
both environmental and organizational factors, such
as the organization’s business and human resource
strategy. Agency theory provides insight into what
reward mix best aligns with organizational or
individual objectives. Outlining how the separation of
organizational activities from ownership presents the
problem of ensuring that owners' interests are
aligned with those responsible for operating the
business.

Owners look out to ensure that employees direct

their work effort in a line with the interest of owners.
This can be achieved through adjusting the reward
mix, particularly the balance between fixed and
variable rewards, to ensure that appropriate
incentives are in place for the employee to act in the
owner’s interest. Appropriate rewards and benefits

14
need to be devised in an organization because this
action will help in motivating employees and
minimize turnover.

Financially, the salaries must be fair according to

employees' contributions and according to Togia et
al., (2004), one way of aligning the business'
interests with those of the employees is by
introducing profit-sharing plans, creating programs
where the employees receive bonuses according to
the company's profits. Towards this end, both
employees and employers work for a common goal
and mutual profit. Giving a great sense of ownership
and an interesting financial advantage for the
employees. A non-financial reward should also be
provided to employees for their contributions. Such
recognitions can include paid time off, an employee
of the month programs, access to training programs,
company paid holidays, employee discounts for the
product and services, and whatnot.

A well-thought-out rewarding system may prevent

employee burnout which is experienced by almost all
types of employees at all levels. Tiresome works
strongly negatively influence the employees,
reducing their job satisfaction as well as affecting
motivation and the whole process of working
(Schaufeli and associates, 2022).

15
In 2013 two researchers called Kehoe and Wright
(2013) conducted statistical tests and found some
significant relationships between the reward system
and performance recognition, as well as with
motivation and job satisfaction. According to the
study given by them, employee motivation and job
satisfaction change correspondently with the
changes in recognition and rewards. For an instance,
an increase in rewards leads to an increase in
employee performance.

1.1.3: Concept of Employee Performance

Performance is an accomplishment of a given task
measured against presently known standards of
accuracy, completeness, cost, and speed. In a
contract, performance is deemed to be the fulfillment
of an obligation/ requirement, in a manner that
releases the performer from all liabilities under the
contract. Individual performance is a core concept
within work and organizational psychology.

During the past decade and a half, researchers have

made progress in clarifying and extending the
performance concept (Campbell, 1990). Moreover,
advancements have been made in specifying major
predictors and processes associated with individual

16
performance. With the ongoing changes that we are
witnessing within organizations today, the
performance concepts and performance
requirements are changing as well (Ilgen & Pulakos,
1999).

Despite the great relevance of individual

performance and the widespread use of job
performance as an outcome measure in empirical
research, relatively little effort has been spent on
clarifying the concept of performance. Performance
is a multi-dimensional concept.

Borman and Motowidlo (1993) distinguish between

task and contextual performance. Task performance
refers to an individual’s proficiency with which he or
she performs activities leading to contributing to the
organization’s ‘technical core’. This contribution can
be both direct (e.g., like production workers), or
indirect (e.g., just like managers or staff personnel).
Whereas, contextual performance refers to activities
that do not contribute to the technical core but also
support the organizational, social, and psychological
environment in which organizational goals are to be
pursued. Contextual performance does not only
include behaviors such as helping coworkers or
being a reliable member of the organization but
making suggestions about how to improve work
procedures as well.

17
1.1.4: Relationship between rewards and
employee performance
The impact of rewards on employees’ performance
is a well-known phenomenon in the available
literature on human resources. A large number of
studies have verified that rewards are a powerful tool
to enhance employee behavior which leads to
performance improvement. However, some other
studies also remarked on the negative
consequences of rewards such as environmental
favoritism, sexism, and racism.

According to Luthans (2000), there are two basic

types of rewards, financial and non-financial and
both of these can be utilized positively to enhance
the performance behaviors of employees. Financial
rewards mean pay-for-performance such as
performance bonuses, job promotions,
commissions, tips, gratuities, gifts, etc. Non-financial
rewards are non-monetary / no cash systems and it
is a social recognition such as acknowledgment
certificates and genuine appreciation.

La Belle (2005) predicates that different individuals

have a different perception of rewards and believes
that such factors are the main driving force of
satisfaction and that they help boost the employee to
work harder and better, due to the motivation that is
18
brought out. To put it simply, motivators can increase
internal happiness (extrinsic rewards) and on the
other hand, hygiene factors are only able to boost
external happiness (extrinsic rewards). And if there
are missing factors (whether they may be hygiene or
motivation), it is still possible for the employees to be
dissatisfied and not able to perform in the best
possible way, they can. If the hygiene factors are
present and even there are more than enough of
them present, then it is simply possible that the
employee would still not be motivated. Thus, for the
managers to successfully motivate their employees,
there will still be a need for them to determine the
appropriate and sufficient motivation factors to use.

According to Babakus et al. (2003), the perceptions

that employees have regarding their reward climate
do influence their attitudes towards other employees
and the work as well. In addition to that, the
commitment of managers toward the organization is
also shown by hie the manager rewards his or her
employees. Gouldner (1960) stated the norms of
reciprocity, which focuses on the ability of the
organization to accommodate the needs of their
employees and reward them for their efforts. In return
for the rewards provided to the employees, the
employee should reciprocate by increasing their
commitment towards their organization and their
work, along with increasing their ‘socio-emotional
bonds’ with their company and their colleagues.

19
In the view of Payam et al., (2013) the rewards and
incentive programs in organizations are observed to
be a very effective technique in enhancing the
productivity of the organization and the employees.
The relationship between the reward system and
employee performance is found to be very effective
and equally contributes to the overall development of
the organizations. Regarding performance
enhancement, the most considerable aspect is the
opportunity of rewards and compensation in the form
of incentives that are provided to the employees.

Various aspects where the performances of

employees can be improved mainly consist of
employer-employee relations, job security, and
rewarding policies in place. The most important
aspect for the performance enhancement of
employees is considered their motivational level
towards their assigned roles in the organization. In
regards to the performance enhancement, the
aspect which is considered more is the opportunity
of rewards and compensation in the form of
incentives provided to the employees.

As per the study by Cho and Perry (2012), the

present competitive market has a huge requirement
of incentives to reward the more suitable and
20
hardworking employees of the organization. The
strategies adopted for incentive and reward systems
for the employees are important for maintaining and
inspiring them to meet the global challenges and also
for the growth of the organization in the international
business market.

The rewards to the employees are provided based

on their efforts which are made for improving their
performance in the company. The performance of
the employees can be examined as per the tangible
outcomes of the teamwork or quality of the work
obtained from different tasks and roles assigned to
the employees.

According to the view of Nwokocha (2016), to

maintain the relationship between the rewards
system and employee performance, the organization
mainly provides three types of rewards system and
employee performance, the organizations mainly
provide three types of rewards that include social
rewards, intrinsic rewards, and extrinsic rewards.

Extrinsic rewards are considered effective physical

rewards, which are provided to the employees
including promotional prospects and fringe benefits.
The intrinsic rewards are the most considerable
types of rewards that are offered to the employees of
the organization based on their specific performance
21
regarding the assigned task and are considered to
be the self-granted pay-off. The social rewards are
provided to the employees based on their interaction
with the people within the organization and
maintaining supportive relations with the co-workers
of the organization.

1.2: Research Problem

Both private and public sector organizations consider
their employees as a critical asset toward achieving
organizational goals. However, the same objectives
can only be obtained by a satisfied workforce. An
employee should be rewarded according to their
performance and those who perform better should
be awarded better and needs to be offered a great
proportion of available rewards and vice versa. The
competitiveness of an organization especially in the
present-day business environment will be linked to
employee motivation and their perception of rewards
that are offered to be comparable to the work they
perform. The never-ending problem of a high
enfeebling rate has seen most organizations that
offer several rewards with the idea of attracting and
then motivating the employees to stay in the
organization and also to determine whether the
rewards which are offered by the organization are
comparable with the employee expectations, then
the same should be established by assessing the
employee perception of the same reward
management system (Grant, 1994).
22
GET-ES-IDEAS Pvt. Ltd., since its inception, has
grown to become one of the most flourishing
companies in the IT industry. However, its market
share is under threat from other competitors, the
employee turnover rate has increased greatly and
this also involves the effective management of the
company. The company expects employees to follow
the rules and regulations, work according to the
standards set for them; the employee expects good
working conditions, fair pay, fair treatment, secure
career, power, and involvement in decisions. These
expectations of both parties vary from organization
to organization. For the company to address these
expectations, an understanding of employees’
motivation is also required. This research draws its
relevance from this situation as a solution are
seeking to build a strong and highly motivated labor
force that is willing and able to win the title in the
development drive of the country. 7 very recent
studies have been undertaken on the relationship
basis of rewards and employee performance include;
Baskar, et. al, (2013) researched the impacts of
rewards and recognition on employee motivation and
their findings concluded to the fact that the
employees with no rewards tend to be less
motivated. Given the fact that the organizations and
business units are in such a state of transformation,
employees in this category may want to quit the
organization. This places the business unit under the

23
pressure to retain these employees. This business
unit could benefit from implementing a retention
strategy, which in itself has a strong focus on
recognition. The research indicated that recognition
includes acknowledgment and performance
feedback.

Musyoki (2012) researched the relationship between

the rewards and job satisfaction at the National
Cereals and Produce Board and found out that the
rewards used by organizations were basic pay, can
be allowance or housing, medical cover, leave
allowance, sick leave, promotion, training, life
insurance, retirement benefits other than legally
required NSSF, any personal services, and
performance-based pay. There was such a strong
positive correlation between employee job
satisfaction and rewards. Other studies have been
done including Owusu (2012) who investigated the
effects of motivation on employee performance,
which is a very important area in Kenya

1.3: Value of the Study

The management of Get-E-Ideas Pvt. Ltd. will be
able to understand the relevance of effectively
rewarding employees as that will lead to better
performance, exert greater effort on the job resulting
in increased job performance, less turnover, and
better attendance. This study will be useful for the

24
management of the company as they will be able to
understand the relationship that exists between
rewards and employee performance and
consequently improve job satisfaction among its
staff. The study will benefit the government in making
the policy decisions whose overall objectives are to
accelerate the rate of employee performance and
reduce the turnover rate, improving service delivery.
The scholars gain knowledge on the relationship
between rewards and employee performance. They
will acquire an insight into what factors affect job
satisfaction in the teaching fraternity and its staff.
They will also be able to use the findings of this study
to prove various theories and use the study as a
basis for further research on other variables not
included in this study. The finding will also increase
the stock of theoretical and empirical knowledge,
especially in the practice, and also the form for
further research.

25
 CHAPTER TWO: LITERATURE REVIEW

2.1: Introduction
This chapter is concerned with the review of literature
related to the study. An overview of theories
underpinning the study, types of rewards as well as
rewards and employee performance will be
discussed further.

2.2: Theoretical Foundation of the Study

The relationship between employers and employees
can be characterized by economic and social
exchanges. The economic exchange is the formal
contractual relationship that is created when the
employee is hired (Whitener et el., 2008).

The employer offers a portfolio of pay and benefits in

exchange for the employee’s skills and efforts
usually. However, some aspects of the employer-
employee relationship go beyond a purely economic
exchange; as long as both the parties are mutually
interdependent, repeated interaction generates a set
of obligations for either party, resulting in benefits
that are not always the result of an explicit contract.
Expectancy theory thrives on the idea that people
prefer certain outcomes from their behavior to
others. The theory posits that performance depends

26
upon the perceived expectations regarding effort
going through in achieving the desired outcome.

An employee who desires for promotion will only

achieve high performance if they believe that their
behavior will lead to a promotion or else the
employees will not exert efforts or give their best. The
effort to performance expectancies ranges from 0 to
1.0 where zero stands for no expectations of
performing the tasks correctly and 1.0 signifies
absolute faith in being able to perform the tasks
properly (Robbins, 2008). Expectancies so influence
whether a person will even strive to earn a reward.
Self-confident and well-trained people have higher
expectations than less-confident ones. Although a
person’s efforts contribute greatly to their
performance without proper ability and a supportive
environment no matter how hard a person tries, good
performance will be next to impossible to achieve.

Hence, the managers who seek high performance

from their employees must offer them the right
training and enabling environment so that they can
perform well. Advocates of the expectancy theory
believe that employees will change their behaviors
by working harder and prioritizing their actions if they
know that by doing so they will be then rewarded with
something which has value to them.

27
Therefore, incentives are a great way of rewarding
the efforts and behaviors of the employees that the
organization wishes to encourage. If the incentives
are paid in return for their behavior that contributes
to the organizational goals, it will in the long run
enhance organizational effectiveness and
productivity and hence generates a positive outcome
from both employer and employee (Torrington et al.,
2009).

Other theories that have come up to explain the

appropriate reward system namely utilitarianism and
romanticism. Utilitarianism highlights the extrinsic
incentives such as monetary compensation to
motivate the innovative behavior of employees, while
romanticism views rewards as self-motivated
psychological behavior that is typically sparked by
intrinsic spiritual rewards. Utilitarianism provides the
foundation for early behavioral arguments that
suggest that people's behaviors are drivable and
changeable and that extrinsic rewards can bring
expected behaviors and performance as well.
Whereas extrinsic rewards and resource investment
have been seen as necessary to satisfy employees,
especially in formalized tasks.

According to Whitener et al., (2008), performance-

linked salary increases and monetary rewards
positively influence employee satisfaction. Long-

28
term incentive plans (stock options), team-based
rewards (profit-sharing plans), and security benefits
are also empirically shown to have a positive effect
on employee creativity (Laursen and Foss, 2003).

Malhotra et al., (2007) state that a person’s beliefs,

attitudes, and perceptions about his behavior foretell
here wards that punishment that pursues his action,
while according to the cognitive theory actions only
get strengthened when the expectations change
about what one does and what he receives in terms
of rewards. Vroom debates that certain behaviors
are determined to be initiated only when
expectations and the consequences related to that
event occurred.

Porter and Lawler (2008) followed vroom’s ideas and

further take on that people often determine efforts in
work by judging the value of reward and the
relationship between their effort and expected
reward.

Azasu (2009) suggests the “Principal-agency theory”

in which most people are opportunist and always get
motivated through monetary rewards, while socio-
economic theorists argue that people are neither
inclined toward monetary reward nor they have a
homogeneous approach, they might be fascinated
by the idea of monetary and non-monetary rewards
29
that seem to be potent enough to enhance their
motivation and commitment.

2.3: Types of Rewards

Rewards can either intrinsic be or extrinsic. Intrinsic
rewards that are innate in the job itself along with the
individual enjoys as a result of completing the task or
attaining their goals. While extrinsic rewards are
those that are external to the task of the job, such as
their pay, work condition, benefits, security,
promotion, contract of service, the work
environment, and conditions of work. Such tangible
rewards are often determined at the organizational
level, and maybe largely outside the control of
individual managers (Mahaney and Lederer, 2006).

Organizations offer intrinsic and extrinsic rewards to

their members for the improvement of their human
resources outcomes. The reward system is aligned
to motivate employee performance that is consistent
with the firm’s strategy, attract and retain people with
the knowledge, skills, and abilities required to realize
the firm’s strategic goal, and create a supportive
culture and structure (Allen and Killman, 2001).

Alignment of the reward system with organizational

strategy helps to determine organizational
effectiveness. Rewards and compensation systems

30
motivate employees to give their maximum efforts
towards assigned work. Compensation systems
deliver other objectives such as legal compliance,
labor cost control, perceived fairness towards
employees, and enhancement of employee
performance to achieve a high level of productivity
and customer satisfaction. Compensation includes
the financial returns to the services rendered by
employees as part of employment relationships.
Compensation is a form of reward that flows to
employees arising from their employment.
Compensation has a big influence on the recruitment
of employees, motivation, productivity, and
employee turnover (Bernardin and Russell, 2003).

Reward systems are strategically designed when

rewards are linked to activities, attributes, and work
outcomes that support the organization’s strategic
direction and that foster the achievement of strategic
goals. Such linkages can lead to increased
employee knowledge or skill development, flexibility,
commitment, retention, and productivity.

Bamberger and Levi (2009) posit that money is

important because it can buy things and it also
symbolizes an employee’s worth. An organization’s
pay is considered important because if managed
effectively, money can improve motivation and
performance itself. While pay and benefits alone are

31
not sufficient conditions for high satisfaction, it is a
necessary measurement in job satisfaction
evaluation. Most organizations use different types of
rewards and reward systems. The most common
types of rewards include basic pay; job design,
incentives and benefits; development opportunities,
and performance-based pay.

2.3.1: Base Pay

Fernandes (1998) narrates total reward as “The sum
of the values of each element of an employee’s
reward package.” The principal elements of total
reward include basic salary, variable pay, pension
benefits, death-in-service benefits, long-term
disability benefits, private medical insurance,
vacation entitlement, company car schemes, share
schemes, and mortgage subsidies.

The performances of the staff in an organization

adopting a total reward strategy have become of
more statistical generalization, which attracts an
increasing number of companies. Introducing a total
reward strategy has probably improves not only
employees’ work efficiencies, job satisfaction, and
job performances but their psychological contract
and organizational citizenship behaviors along.

32
Because of this effective management method,
organizations have more channels to get acquainted
with their employees’ work life and other needs; in
another way round, the personnel can keep a
positive attitude towards the organizations, might be
less stressed or fairly treated or someone else (Scott
et al., 2006).

For most people, the most important reward for work

is the pay they receive. According to Cox (2002),
money is important because of the things it can buy
and it also symbolizes an employee’s worth. An
organization’s pay is considered important because
if managed effectively, money can improve
motivation and performance.

According to Noe (2007), employee compensation is

a major cost of doing business - as much as 50-60%
in most organizations – and so a poorly designed
system can be an expensive proposition. Further, a
poorly designed pay system can result in problems
in other areas such as turnover and low morale.
Performance-based pay and compensation paid
varies with some measure of an individual, team, or
organizational performance, such as merit pay, team
incentives, and profit-sharing (Milkovich and
Newman, 2002).

33
A reward and compensation system is based on the
expectancy theory, which suggests that employees
are more likely to be motivated to perform when they
perceive that there is a strong link between their
performance and the reward they will receive.

In other words, the compensation system (e.g. profit

sharing) contributes to performance by linking the
interest of employees to those of the team and the
organization, thereby enhancing effort and
performance-related pay works on the assumption
that if an employee is offered monetary bonuses for
a job well done, they will perform better and give their
best. There are two distinct varieties of this scheme.
The merit-based system is based on the assessment
of an employee’s performance against previously set
objectives. In the goal-based system, the employer
and the employee arrange a meeting and agree on a
list of objectives that are set to be met during the
coming months. For performance-related pay to
work, should be based on clear and measurable
targets that are agreed upon by both the employer
and employee (Torrington et al., 2009).

2.3.2: Benefits
Benefits are programs that an employer uses to
supplement the cash compensation that his / her
employees receive. These health, income protection,
savings, and retirement programs provide security

34
for employees and their families. While pay and
benefits alone are not sufficient conditions for high
satisfaction, it is also indispensable measurement in
job satisfaction evaluation.

Noe (2007) declares that for most people work is the

primary source of income, their financial security,
and an important indicator of status within the
organization as well as in society. Naturally,
employees want to pay and benefits in a reward
system that they perceive as just, unambiguous, fair,
and in line with their expectations.

Further, Okumbe (2001) asserts that in determining

compensation levels organizations must be
conscious of the prevailing market rates to ensure
fairness and equity in compensation. He asserts that
organizational indifference ongoing rate or going
range will affect negatively the efforts which are put
towards attracting and retaining the required staff.

According to Armstrong (2010), typical benefits

provided by businesses include payment of time not
worked such as during a vacation, sick leave,
holidays, and personal days; unemployment
compensation for people who have lost their job or
are temporarily laid off to get a percentage of their
wages from an insurance-like program; disability and
workers compensation benefits whereby employees
35
contribute funds to help workers who cannot work
due to occupational injury or any ailment; and
pensions or retirement plans in which most
organizations offer plans to provide supplementary
income to employees after they retire from their post.

2.3.3: Incentives
Gagne and Deci (2005) state that the pay increases
motivation comes from cognitive evaluation theory,
which also argues that incentive pay hurts intrinsic
motivation – a “crowding-out” effect it is called.
Understanding the design implications of incentive
systems is important to the understanding of
employee motivation and whether these incentive
systems are related to satisfaction. The theory
behind pay-for-performance plans put forth the
reinforcement theory that suggests that may be
linked to performance by setting specific targets and
then rewarding individuals for achieving these
targets.

Pay fairness is an important issue in designing

reward systems. Employees often make equity
judgments based on comparisons with others who
may be co-workers or based on other similarities,

36
such as organizational status (Greenberg et al.,
2007).

Incentive plans that are oriented toward individual

employees may cause increased competition for the
rewards and some possibly disruptive behavior such
as disrupting or destroying a co-worker’s
performance, sacrificing quality for quantity, or
fighting over customers. A group incentive plan on
the other hand requires that employees trust one
another and work together (Rahman and Bullock,
2005). Effective teamwork can help motivate the
employees and improve their performance and self-
efficiency. This increases motivation and self-
efficiency through teamwork can be a source of
employee autonomy, significance, bonding with
team members, and satisfaction.

2.3.4: Development and Career Opportunities

Employee training is also provided in some
companies as growth opportunities for their
employees to widen their knowledge and abilities for
more efficient teamwork and achieve individual
development (Jun et al., 2006).

When workers receive self-development training, the

level of their job satisfaction rises higher rather than
those without such training (Saks, 1996).

37
According to, Kerka (1998) career development is an
organized way that is used to achieve employee
goals with the business needs of the agency’s
workforce development initiatives. And the purpose
of career development is to; enhance each
employee’s current job performance, enabling the
individuals to take advantage of future job
opportunities and fulfill agencies’ goals for a dynamic
and effective workforce.

According to Cole (2005), the benefits of employee

development to the organization include: increasing
the employees’ morale since training will improve the
employees’ confidence and motivation; lowering the
g cost of production through better and economical
use of material and equipment thereby reducing and
avoiding waste. In addition, he observed that the
training of employees leads to a low turnover that
comes as a result of improved security in the
workplace. Training helps improve change
management by increasing the understanding and
the involvement of employees in the change
management process.

Employee career advancement is a phenomenon

that is formalized, organized and it is a planned effort
to accomplish the balance between the requirement
38
of the organization’s workforce and individual career
needs. The rapidly rising awareness makes it
evidence that employees can give a leading edge to
the organization in the marketplace. It is a challenge
for today’s human resource managers to identify the
organization’s developmental strategies that
enthusiasts the employee commitment to the
organization’s vision and values to motivate the
employees and help the organization gain and
sustain a competitive advantage (Graddick, 2008).

Greller (2006) states that people always work for a

reason and the cause should be provided by work,
organization, co-workers, or from within. To
strengthen the bond with employees, the
organization must spend on the development of
employees. It creates promotion opportunities within
the organization and provides training opportunities
and skill development to improve its employee’s
employability in the internal and/or external labor
market.

Growth and development are an integral part of

every individual’s career. If employees cannot
foresee their path of career development in their
current organization, there are chances that they will
leave the organization as soon as they get an
opportunity (Bratton and Gold, 2003).

39
The important factors in employee growth that an
employee looks for himself are work profile, personal
growth and dreams, and training and development.
Career development is vital for both employees and
employers. Career development is a mutually
beneficial process because it gives imperative
outcomes to employers and employees. To gain and
maintain competitive advantage organizations
required talented & productive employees and these
employees need career development to enhance
and cultivate their competencies (Prince, 2005).

2.3.5: Job design

Adler (1991) found the systems in which employees
reported higher perceptions of skill variety, task
significance, autonomy, and feedback reported
higher levels of satisfaction and internal work
motivation.

In his study, Arce (2002) found that the reward from

outside activities is affected by the performance on
inside activity and the relation between job
characteristics and job satisfaction and also found
that the relationship was stronger for employees high
in growth need strength.

40
On the other hand, according to Morrison et al.
(2005), job designs that provide for high levels of
employee control also provide increased
opportunities for the development and exercise of
skills. Also, the meditational influence of perceived
skill utilization on job control job satisfaction has
been observed.

They further concluded that perceived work

demands, job control, and social support through job
design lead to high productivity. This also means that
the level of job satisfaction is determined by a
combination of jobs, work, and personal
characteristics, and rotating managers to different
jobs add the benefit of task variety, resulting in
increased performance of employees. The job
characteristic has to be considered in designing a job
design since they contribute to certain psychological
states and the strength of employees' need for
growth has an important moderating effect.

The core job characteristics that need to be

considered by an organization in coming up with a
job design must include employee skill variety, where
which refers to the extent to which the job requires
the employee to draw from several different skills and
abilities as well as upon a range of job knowledge.
The job design should also have significance or
importance internally regarding how proud

41
employees are to tell their relatives, friends, and
neighbors what they do and where they work
(Bassey, 2002).

2.3.6: Performance and Recognition

Recognition is the affirmation of appreciation for a
level of performance, an achievement, or a
contribution to an objective of the company and for
the company. It can be confidential or public, casual
or formal. It is always, in addition, to paying (Pitts,
1995) In addition to rewards, employees also need
recognition. Individuals like to share their
achievements with others and have them recognized
and celebrated. When this need is satisfied, it works
as an excellent motivator.

If employers rely on reward alone to recognize

contribution and achievement it is most possible that
the employee’s objective will become modified to
secure the pay and nothing more and this, in turn,
will lead to a degraded culture of the organization.
When used correctly recognition is a cost-effective
way of enhancing achievements and enabling
people to feel involved in the company culture (Pitts,
2005).

Recognition and celebration do not work as an

alternative to base pay, they are only add on’s and

42
not replacements for pay. Nothing can replace stable
pay. However, together with a solid pay approach,
recognition and celebration are effective ways to
make rewards communicate effectively. Used
properly, these two factors allow the company to
communicate the role that employees play in making
the organization a success.

When traditional pay solutions fail to acknowledge

the issues such as business opportunities,
organization design, and competency, recognition
and appreciation can be great tools to address them
(Zingheim and Schuster, 2000).

2.4: Employee Performance

Employee performance is a typical term in the
Human Resource field where employee performance
can refer to the ability of employees to achieve
organizational goals more effectively and efficiently.
It involves all aspects which are directly or indirectly
affect or relate to the work of the employees. For
performance to be effective, employers should
recognize the desires and needs of the employees of
different units.

Given Koontz (2008) ways in which employee

performance can be increased include; proper
incentive systems which may be financial or

43
nonfinancial. The financial incentives include;
salaries, allowances, overtime payments, bonuses,
and wages, while non-financial incentives include;
promotion, medical allowance, training, transport,
subsidized housing, and meals. This should be after
identifying the needs and desires of employees that
can be satisfied hence increased performance. Good
employee performance is necessary for the
organization since an organization’s success is
dependent upon the employee’s creativity,
innovation, and commitment (Ramlall, 2008).

Good employee performances and productivity

growth are also important in stabilizing our economy;
using improved living standards, higher wages, an
increase in goods available for consumption.

According to Hunter and Hunter (2004) crucial in high

employee performance is the ability of the employee
himself. The employee must be able to deliver good
results and have high productivity.

According to Barrick and Mount (2001), an

employee’s performance is based on individual
factors including personality, skills, knowledge,
experience, and abilities. Desired performance can
only be achieved efficiently and effectively, if an
employee gets a sense of mutual gain for the
organization as well as for himself, by attaining a
44
defined target or goal. An organization must carefully
set the rewards system to evaluate the employee’s
performance at all levels and then reward them
whether visible pay for performance or invisible
satisfaction.

2.4: Summary
It has been concluded that the perception of
employees towards the reward systems and the
motivating incentives to enhance employee
performance has a useful role in the growth of a
company. Regarding this, the literature has focused
on the effective evaluation of the current status of the
employee perception of GET-E-IDEAS. In this
regard, the performance pays and the reward system
that is adopted within the company is considered as
a significant factor that helps in motivating the
employees working at different levels of various
organizations associated with the industry.

The literature has also focused on the concept of

performance-based pay that mainly contributes to
the enhancement of motivation within the
employees. The implications of the performance-
based pay concept within the organization lead to the
active development of the business. It also helps in
examining the capability of the employees for the
growth of the business.

45
 CHAPTER THREE: RESEARCH DESIGN

3.1: Introduction
This chapter describes the proposed research
design for the study of the targeted population, data
collection instruments, and the techniques for data
analysis.

The research design refers to the overall strategy

that you choose to integrate different components of
the study coherently and logically, thereby, ensuring
to effectively address the research problem; it
consists of a blueprint for the collection,
measurement, and analysis of the data.

The function of research design is to ensure that the

evidence obtained enables you to effectively address
the research problem logically and unambiguously.
In research, obtained information relevant to the
research problems is generally entailed by specifying
the type of evidence needed for the test theory, to
evaluate a program, or to accurately describe and
assess meaning related to an observable
phenomenon.

The research design is to be adopted as a

descriptive survey research design. This design was

46
deemed appropriate because the main interest was
to explore the relationship of employee perception
between rewards and employee performance and
also to describe how the factors which support do
matter under investigation.

3.2: Research Methodology

Research methodology provides the directional base
to the research work with the involvement of
philosophical assumptions and a directive research
approach and design that can be suitable for
addressing the selected research problem and
answering the research questions. The research
methodology chapter of the research work directs to
reflect methods and procedures undertaken for
collecting data and analyzing it in the most effective
form to achieve the research objectives.

The research study has undertaken a qualitative

approach to data collection for acquiring the relevant
data and information for the research context.

3.3: Target Population

The target population consisted of all employees of
GET-E-IDEAS Pvt. Ltd. The staff structure of the
organization was made up of senior managerial
level, middle level, and lower-level employees, and
47
all the teams of employees formed the population of
the study. As of 7 November 2021, the total number
of staff members at GET-E-IDEAS Pvt. Ltd. was 131
present whether from offices or at their own homes,
or on official trips around the globe.

3.4: Sampling Design

A sample design is a definite plan which helps in
obtaining a sample for a given population. It refers to
the technique or the procedure the researchers
would adopt in selecting items for the sample.
Sample design can lead to a procedure to tell several
items to be included in the sample i.e., the size of the
sample.

Sampling and sampling technique refer to choosing

a group of participants from the target population
which would represent the whole population,
moreover, data collected from the sample would
represent the results for the whole population.
Usually, a sample is chosen as a researcher is not
able to gather data from the whole population due to
some limitations (Myers 2013).

Sampling is the most important technique in this

research work for the selection of the most
appropriate sample for the data collection purpose
(Merriam and Tisdell, 2015).

48
The sampling design was considered as an
appropriate sampling strategy where we get the
following results:

CATEGORY SAMPLE (50%)

Senior Managers 1
Managers 2
Team leader 7
Employees 29 / 17
(Temporary / (T / P)
Permanent)
Interns 5
TOTAL 61

Source: Employee Data (Finance Department of the

company)

3.5: Data Collection

This study used primary data. The primary data was
collected through self-administered questionnaires
to the employees through mail and SMS. A semi-
structured questionnaire was used to collect data on
the relationship between rewards and employee
performance at GET-E-IDEAS Pvt. Ltd. The
questionnaires were distributed with the purpose of
the studies to the sampled staff.

49
3.6: Data Analysis
Before the final analysis of the data was performed,
data was cleaned to eliminate discrepancies, after
that it was then classified based on similarity and
then calculated. In accomplishing all analysis details
with efficiency and effectiveness data was then
analyzed by the use of descriptive statistics to
summarize and relate variables that were obtained
from the administered questionnaires.

The data was classified, tabulated, and summarized

using descriptive measures, percentages, and
frequency distribution tables while tables and graphs
were used for the presentation of findings.

3.7: Summary
The research methodology chapter has presented a
detailed account of the key research approaches and
methods that are used in this research study for data
collection and data analysis purposes. The
description of the method and approach has been
governed by proper analysis. The research study
has included qualitative data with the help of a
structured questionnaire for the case study method.
Overall, this chapter has presented a sound base for
justifying the overall data collection process.

50
 Chapter 4: Data Findings and
Analysis

4.1: Introduction
Data analysis is the most significant and crucial
element for the entire research work which provides
the base for reaching the research conclusions. Data
findings and analysis have significant importance in
the research project because they mainly depicted
the results of this project which is the new knowledge
in the current studies.

The use of literature is here to support primary

findings at this stage or chapter of the research
project is to ensure validity, authenticity, and
relevancy of the results and analysis. This chapter is
the presentation of the respondents’ views in answer
to the questions asked during the interview process
and secondary evidence to support their views for
the viable interpretations.

In particular to the research problem, this chapter

has the responses of the employees of GET-E-
IDEAS Pvt. Ltd. who participated in filling the
questionnaires/forms. From the different sections of
the company, 3 managers (Junior and senior staff),
7 team leaders of all the departments, 29 permanent
employees, 17 temporary employees, and 5 interns
51
were given the forms to fill, and in total 61 responses
were collected in this primary data method that is
presented and analyzed in this chapter.
The responses of the participants collected have
been analyzed with the consideration of research
aim, objectives, and questions.

4.2: Data Analysis and Discussion

The directly developed form of the research
objectives/questions that help infer pertinent data will
be analyzed. The semi-structured questionnaire to
access viewpoints of employees in the GET-E-
IDEAS Pvt. Ltd. in Chandigarh is developed in
alignment with the research aim and objectives. In
process of approach, specific data is collected about
the reward system and incentive from employees’
opinions and experiences in specific of the GET-E-
IDEAS Pvt. Ltd. to reach the generalized conclusion.

4.2.1: Theme 1: Reward System and incentives

being used in the GET-E-IDEAS Pvt. Ltd.
The first question to the research respondents was
about the reward and incentives system used in the
company; it was answered 66% of employees’
rewards are incentives along with their pay; another
form of reward system used here are commissions
52
which is the reward system for 27% of the
employees; however, only 1% of the senior-level
employees has stock plans as their rewarding
system and the other 6% of the employees are not
given any incentives but are praised well enough for
their hard work and dedication such as interns.

The company involves in monetary reward systems

mostly but non-monetary ways are also used by
declaring the employee of the year and giving them
gift vouchers or sometimes traveling perks. The
company’s reward system focuses on stimulating the
performance and motivation of its employees by
offering great monetary and non-monetary benefits
to a greater extent.

The significance of the monetary benefits is

considered more in the IT industry for the employees
to maintain their skills and for their sustainable
performances. Literature has also supported the fact
that aside from a monetary and rewarding system,
superior-subordinate relationship and recognition,
appreciation, and a supportive work environment
leads to stimulating self-value of employees. Thus, it
can be revealed that employees’ motivation to work
hard to enhance employee value or worth in the
organization is also driven by non-monetary rewards
and incentives (Oshi and Daniel, 2017).

53
The combination of monetary and non-monetary
both is equally included to gain employee loyalty,
employee retention to foster performance. The
reward and incentive system of the restaurant is
significantly focused on the encouraging motivation
of employees. From the above responses of the
employees, it can be interpreted that there might be
a difference in the reward and incentives system of
the company for employees working in different
sections.

The expectancy theory of motivation in alignment

with this fact also claimed that desirable reward in
the form of monetary and non-monetary is essential
to be yielded a favorable performance (Wigfield and
Eccles, 2000).

Desirable reward to the employee leads to satisfying

his expectancy and essential needs that ultimately
motives for efforts and performance. In concern of
the different expectations of employees, the reward
and incentives system is designed to meet the
expected needs of employees that influence them for
high performance (Chiang and Jang, 2008).

The next question asked the employees was

whether they are satisfied with their reward system
or not. 71% of employees responded in the
agreement of their reward system was satisfactory
54
whereas 13% of employees were unsatisfied and
16% of employees were neutral about their
comments.

The unfulfilled employees’ needs due to an

ineffective reward system that lacks consistency
between employees and organizational development
are against overall performance management
(Larkin and Pierce, 2016).

Overall, responses of employees working in different

sections of the GET-E-IDEAS Pvt. Ltd. have been
indicated that employees’ motivation is proportionally
linked to the reward and incentives system. In the
company, employees are more offered monetary
incentives to sustain their motivation for the work
they do and non-monetary for good employer and
employee relationships that are important for service
excellence and control over HR costs in the
recruitment, selection, and training of the new
employees.

The high performance of the employees is

significantly raised through adequate monetary
rewards along with the non-monetary concerns of
building and upholding strong associations (Kang,
Tang, and Fiore, 2015).

55
4.2.2: Theme 2: Rewards and employee
incentives systems impact employee motivation
(non-monetary category)
After the question about the current reward system
being utilized by GET-E-IDEAS Pvt. Ltd.,
respondents were asked to share experiences about
the impact of the rewards and employee incentives
system. The majority of the respondents mentioned
the positive and progressive motivational impact of
rewards and employee incentives systems to the
great extent.

The majority of employees i.e., 75.6% have

responded with a strongly positive answer. Whereas
some of the employees which are 18.9% remained
neutral about the question on the other hand 5.4% of
respondents disagreed.

It has been interpreted those non-monetary rewards

and incentives play a crucial role to encourage
employees for better results. There persists a directly
proportional relationship between non-monetary
rewards and incentives system for the employees in
the restaurants, and better performance because
rewards and incentives contribute towards fostering
employees to achieve a higher position in an
organization (Ullah and Wan, 2013).

56
It has been analyzed that the impact of reward and
incentive systems on the motivation level is not
similar for the employees’ working in the different
sections of the company.

It is criticized that monetary rewards to employees

might not lead to growth in terms of promotion
because monetary rewards are the burden of the
financial cost and thus, the value of reward might not
equivalent to the higher performance of employees.

The monetary value of reward for the performance

might be a declining level of motivation. Hard work is
not paid off through lower monetary rewards and
thereby, it has been generalized that non-monetary
rewards are effective to sustain the level of
motivation of the employee to show potential to
achieve higher responsibilities or work profile.

The combination of the monetary and non-monetary

rewards is the best or most effective rewards and
incentives system, but only monetary rewards might
be unfavorable to an employee’s perceived reward
and incentive lower than the expected performance
and efforts in the organization than co-workers
(Armstrong, 2010; Aguinis, Joo and Gottfredson,
2013).

57
4.2.3: Theme 3: Rewards and Incentives system
Impact on the Performance/Turnover
Enhancement of the Employees After identifying the
impact of the rewards and incentives system on
motivation, the next question is about the impact on
performance /turnover enhancement of the
employees. Based on the majority of responses, it
has been interpreted that rewards and incentives are
positively correlated with the performance/turnover
enhancement of the employees.

All the respondents commonly replied in agreement

with 59.5%, about 27% were not sure about the
question and replied with maybe whereas 13.5% of
respondents disagreed. Rewards and incentives are
the way towards attaining progress and promotion in
the professional career that opens new doors for
personal and professional development. On the
common grounds, it has been generalized that the
performance of employees is not stimulated through
firm control of the management, while there is a
required motivator factor that promotes for
performance enhancements to achieve monetary
and non-monetary rewards.

58
The intended efforts of the employees are to earn
rewards and thus, the provision of adequate rewards
leads to direct employees’ efforts and actions
towards attaining common goal and vision of the
organization; such as good customer services, high
self-efficiency, and productivity, minimization of work
issues or mistakes and focus on commitments
(Armstrong, 2010).

It has been inferred from the responses and

secondary search that rewards and incentives
systems have mutual relation with performance
enhancement and performance management.
Performance enhancement in terms of inducing zeal
to achieve targets with efficient performance, while
performance management in terms of setting the
benchmark for the next performance targets to
sustain position in front of the management and
senior staff.

4.2.4: Theme 4: Perception of Employees

regarding Incentive Programs and Reward
Systems Implementation
When asked about employees’ perception of the
current rewards and incentives program it was
replied by the staff members were in its favor 51.4%,
40.5% remained neutral about the system however
there are 8.1% of respondents who are not in favor
of the system.

59
The effectiveness of the existing rewards and
incentives system of the company is not completely
agreed upon by all employees working in different
sections. It has also been interpreted that reward and
incentives system designing is aligned with the
interests of both employees and the organization so
that employees can be motivated for improved
performance to earn rewards and incentives.

The meeting of employees’ interests contributes

towards attaining organizational goals and thus, the
effectiveness of reward and incentives system in
concern of its effect on the individual employee
performance, and work commitment/dedication is
altogether important determinant. It has also been
analyzed that monetary and non-monetary rewards
and incentives in the system are equally significant;
thereby, consideration to the provision of both types
of rewards should be valued in the existing system of
the restaurant.

4.3: Summary
The critical analysis of the qualitative data has been
reflected the positive impact of the reward system
and motivating incentives on the employees’
performance and eventually on the restaurant’s
performance. The experiences of the employees’
working in the company have indicated that their
60
good performance is because of the effective reward
system and non-monetary incentives that motivate
them to put efforts to stimulate individual productivity
and performance in the direction of attaining
company goals and objectives. However, employees
in certain sections of the company are more likely
interested in monetary rewards than non-monetary
to manage a good lifestyle and responsibilities
towards family members. Training and development,
and performance feedback are considered important
by the employees for the performance on the job, but
monetary benefits are equally important to keep up
the zeal of working efficiently.

Altogether, findings and discussion of the qualitative

results indicated employee performance is enhanced
to a good extent with the reward system and
motivational incentives application; but it is also
important to value monetary benefits for improving
performance to the utmost extent.

61
 CHAPTER 5: SUMMARY, CONCLUSION,
LIMITATIONS, AND RECOMMENDATIONS

5.1: Introduction
This chapter gives the summary, conclusion,
limitations, and recommendations of the study. The
suggestion for further research was also highlighted.

5.2: Summary of Findings

The study found out that GET-E-IDEAS Pvt. Ltd.
uses different kinds of rewards to influence the
performance of its employees. The rewards were
found however to have a different influence on the
performance of employees. The rewards that are
used by the company were found to be both
monetary and non-monetary. The GET-E-IDEAS
Pvt. Ltd. was found to be rewarding its employees in
every possible manner from good packages to
monetary funds and even recognitions. The
company was found to be quite generous by
rewarding its senior employees with stock plans and
surprisingly building a strong relationship with the
long-term employees.

The company was also found to be giving their

employees the freedom to make decisions which
directly affects their perception of the company.

62
However, this might not be the case for lower-level
employees. The interns and temporary employees
who make up around 5% to 8% of the respondents
are not satisfied with the rewarding system. As to the
company’s rules and regulations, interns and
temporary employees do get involved in the
rewarding system but are not satisfied with the same.

Some employees choose to get appreciated and

recognized whereas some wish to have non-
monetary benefits for the standard of their living.
Base-level employees are given monetary benefits in
the form of incentives whereas it changes for the
team leaders and junior managers to the commission
but the senior-level managers get most of the
benefits by getting stock plans.

The development of employees in an organization

provides opportunities for employees to widen their
knowledge and abilities for more efficient teamwork
and achieve individual development. The results on
development opportunities in the company were
found to have been allocated sufficient time and
money for employee training and therefore they do
receive adequate training and information to do their
job well. At the same time, the company focuses on
promoting the employees based on their ability and

63
this affects employee morale towards work and the
company thus affecting their performance.

The findings indicate that the employees understand

their contributions towards achieving business
outcomes and that employees have a good
understanding of the mission and goals of the
company. There was a strong feeling of teamwork
and cooperation in GET-E-IDEAS. The benefits
given to employees motivate them to work harder for
which they are compensated.

The study established that there was also paid for

extra time worked, non-production awards, and
bonuses and this made the benefits to be very
competitive in the market and this affects the morale
of the employees as they view the company as being
considerate. The study found out that rewards in the
company did improve the performance of employees
as the company was consistent when administering
policies concerning employees, providing adequate
opportunities to contribute to decisions that affect
them, persuading employees that their jobs are
important, and providing benefits that are
comparable to those offered by other companies.

Based on the foregoing, it can be said that it kind of

reward that they can use to influence their
employees to perform well on a job. In another word
64
the relevance of motivational factors depends not
only on its ability to meet the needs of the employees
but also on that of the organization as well.

However, it cannot be neglected that it also to a very

extent harm the employee relationship. The
environment is very competitive for all these rewards
and incentives, employees might have a bad impact
and can involve human emotions. Which can change
the professional competition into a personal grudge.
Whereas, some employees a very small percentage
also think that the rewarding system can be
enhanced and some additional points can be
included in it so that the environment of the company
can remain a healthy competition.

5.3: Conclusion
Nowadays human resources are considered to be
the most important resource for an organization to
remain competitive in the business world. Acquiring
the right workforce and then retaining that force is
one of the challenges to the organization. The
importance of reward in the day-to-day performance
of workers’ duties cannot be overemphasized,
especially when it comes to being rewarded for a job
done.

65
It is a well-known fact that human performance of any
sort is improved by an increase in motivation. Going
by the findings of this study, it can be easily inferred
that workers’ reward package matters a lot and
should be a concern of both the employers and
employees. Employees cannot always control what
types of help or rewards they receive, but they can
control their attitude toward what happens to them,
and as a result, they will be continuing to develop
themselves and moving closer toward the
achievement of their personal goals regardless of
external resources or rewards.

Nonetheless, people want to be recognized for their

hard work and fairly rewarded by their managers and
organization. Proper rewards and incentives can
focus people to desire that which is beneficial to the
organization. Many organizations are transforming
themselves, flattening hierarchies, empowering
workers, and basing processes on teams rather than
individual performance. Reward systems are an
important part of the change that is necessary for
such transformation to be effective.

A thorough rethinking and restructuring of reward

practices that are aligned with organizational goals
and culture gave the company the focused energy to
succeed in challenging times. The use of the
company rewards as a strategic tool enabled the

66
company to realize the tremendous potential of their
131 employees, working together. This requires a
little reorganization of incentive programs to
encourage new employees and their behaviors
aimed at achieving team and organizational goals.

The types of teams operating and the stage of

teamwork will dictate the incentives to be used to
achieve worthwhile team and organizational goals.
GET-E-IDEAS Pvt. Ltd. was using mixed types of
rewards to influence the performance of its
employees, the rewards that are used by the
company were found to be competitive as they were
very comparable with the market offers.

The managers and team leaders are free to take

decisions and this affects their perception of the
company. The employees were in the favour of their
job being challenging and interesting and the variety
of job responsibilities. The development
opportunities in the company were found to have
been allocated sufficient time and money for
employee training and receive adequate training and
information to do their job well, employee promotion
was based on ability and this affects employee
morale towards work and company thus affecting
their performance.

67
However, the employees understand their
contributions towards achieving business outcomes
and that employees have a good understanding of
the mission and goals of the company. The results
obtained from the questionnaires showed that
workers place great value on the different rewards
given to them by their employers. It is therefore
imperative for the organization to consider the needs
and feelings of its workforce and not just overlook
them to safeguard industrial harmony, because “a
happy worker they say is a productive worker”.

Having stressed the importance of a good

remuneration policy on the performance of workers
and the different kinds of rewards that can influence
workers to perform better on a job, this study can
therefore be seen as a call for employers’ sense of
commitment to putting in place appropriate incentive
plan that will encourage workers to be more
purposeful and improve their performance.

5.4: Limitations
The current study has certain limitations. First, the
sampling technique used is not a probability
sampling method that delimits the generalizability of
the conclusions. Moreover, the conclusions may be
made more valid if the samples used are larger. The
performance of employees has also been measured
through self-report and this may be more valid if

68
actual performance data are gathered. The study
limited itself to information and details that could be
discussed without compromising any part of the
company’s business aspects as it competes in a very
dynamic and competitive industry.

The limitations however did not affect the data

collected to undertake the study.

5.5: Recommendations
The findings of the study were of help to the
government and other regulators in the formulation
of policies that govern the sector to ensure that the
employees are well remunerated. The labor
organizations should strive to fight for the workers’
well-being by advocating for increased rewards for
the employees in the private sector to motivate them
and increase their performance.

Employers are continually challenged to develop pay

policies and procedures for temporary and interns
that will enable them to attract, motivate, retain and
satisfy their employees. The findings of this study
can be a handy tool that could be used to provide
solutions to individual conflict that has resulted from
the competitive reward system.

69
The findings are supported by the equity theory
posits that people evaluate fairness by comparing
the inputs they contribute (i.e. skills and efforts) and
the outcomes they receive (i.e. pay) to the
corresponding inputs and outcomes of referent
groups within the organization and in the external
market. Fairness in the remuneration package tends
to produce higher performance from 61 workers. The
findings of the study suggest that the company
management properly promotes employee
performance by the use of rewards. The reward used
needs to be competitive and the company needs to
embrace trends in the compensation trends in the
market. The hygiene factors such as the level of
supervision and the current work environment need
to be acceptable to the employees or otherwise
changed so that they become more acceptable.

Both intrinsic and extrinsic rewards are equally

important in ensuring that employees do their best.
The company should allocate sufficient time and
money for employee training for the employees to
receive adequate training and information to do their
job well. Managers need to keep both intrinsic and
extrinsic rewards factors in mind as they come up
with ways to further motivate their employees into
providing excellent service. The company
management should focus on lower-level needs
before moving on to higher-level ones if the
employees were to become more motivated.

70
While an individual’s satisfaction does not solely
hinge on whether his needs for food, security, and
shelter are satisfied, management must be keen
about sufficiently addressing these. Thus both
hygiene and motivation factors are important in
promoting employee performance.

5.6: Suggestions for Further Research

Due to limited time and scope, this study is restricted
to just one company. Further studies need to be
carried out to do fair to all the factors that influence
workers’ performance. It is very pertinent at this
juncture to suggest that more research should be
conducted on the relationship and influence of
rewards on workers’ performance using many
private and public organizations.

Secondly, the data was collected only from

employees in the IT industry. Future studies may
focus on the influence of rewards on employee
performance in other sectors and other contexts. The
influence of demographic traits on performance may
also be assessed.

71
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 CHAPTER 7: APPENDIX

Interview Questionnaire
Kindly note that the incorporates drafted questions are to be
investigated in the process of dissertation for primary
research.

 Whether the employees at all levels are satisfied

with the present reward system?

 How far and to what extent can the rewards and

incentives system of the company has been
impacting the level of motivation?

 Do you want any improvement in the current reward

system?

 Do you perceive that the current system of rewards

is effective enough in this competitive business
environment to deal with challenges in managing
employees’ performance and long-term association?

 Do you think the current rewards system impacts

employee turnover?

 Rank the following types of reward in order of their

value to you:
o Monetary Rewards (pay increases, bonuses)
o Edible Gifts (going for lunch, chocolates,
snacks)

83
 o Additional Annual Leave
o Stock Options

 Do you feel that rewards are handled in the same

way for all employees?

 Do you feel that staff are recognized when going

above and beyond?

 Do you feel valued and appreciated by the

business?

Thank You

84