Essay on Impact of Reward System on Performance of Employees

Published: 2021/11/12
Number of words: 4061
Aims and objectives4
Literature review4
Research philosophy and approach9
Research approach10
Research Strategy10
Research methods11
Type of the research11
Issues of access12
Research ethics13


Organizations face many challenges to be active in operation and have sustainable profits. In recent organizations manage employees from a wide range of nationalities, different cultures, and even social background. To sustain the environment, it is essential to have a better view of sustaining them. Reward systems mainly consist of policies that generally provide the guidelines of all the approaches taken to manage rewards and policies that promote financial and non-financial rewards. Globally, motivation is an important aspect and is receiving much attention since most organizations have assumed that it is an essential factor for the organization’s success. To engage employee reward in the system, organizations tend to use incentives that greatly enhance the performance of the employees.

An effective reward system generally should be structured to fit the organization and the business strategy. To capture the relationship among the employees and the firm reward system should be structured to make the employees yearn for extra work and improve the organization’s performance. Employees can be significantly motivated by the use of incentives to ensure that they provide quality work that suits all the organization’s requirements and succeed in the market sector. They make employees work with set goals hence the success of the organization. Pay rates and pay cuts should be balanced to ensure that employees are motivated. All ways motivated employees will produce many outcomes as compared to employees who are not motivated. Organizations will need to structure a new method of motivating employees to succeed in the market sector. Focusing on labor as a production resource, organizations should aim at providing cheap and good labor that will make them successful. Generally ensuring motivation of employees will increase the work rate and the quality of the employees will be guaranteed hence high-quality output. The reward system should be flexible and favorable to all employees within the organization to ensure that all employees will have the urge to work towards meeting the organization’s obligations. The main focus of this research is to discuss in detail the impacts of reward systems on the performance of employees, especially in today’s technology.

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Aims and objectives

This research aims to meet the following objectives.

  • To find the effects of the performance of employees based on the reward system.
  • Which reward system suites a firm healthy?
  • To find how the management of the reward system used in the organization affects how an organization performs.
  • To find how to choose a reward system that suits the organization.
  • To know how to incorporate a reward system in the organization for better performance.
  • They are finding the effects of the reward system in how employees work in the firm and how they affect the firm’s performance.
  • How the reward system affects the performance of employees in the workplace.

Literature review

Reward management brings out the overall diverse importance for the success of an organization. Mainly it is involved in the retention of employees who are skilled and experienced. The value obtained generally has value addition to how the organization will be successful in the market sector. Assessing employee commitment is essential in how a firm’s success will be brought in through employees (Ali et al., 2010 pg. 2799). Commitment is a stabilization strength that acts towards retaining all behaviors that enhance fairness and psychological conditions. The conditions are the bonds of a person which are for an organization. If employees are committed to working for the organization’s success, it will guarantee the organization’s success.

The organization is among the global economic systems involved in the responsibility of the marketing system, changing the resources, competitors, and all demands that originate from the external system (Khan 2010, pg. 167). For the organization to survive, high performance is critical in the competition sector. Organizational performance is needed in the measurement of the rate of success of an organization in the market. Performance of the organization involves the relation between costs: minimum and effective. Minimum and effective cost leads to achieving the desired outcomes of the organization. It is generally the result experience of employees and commitment. If employees of an organization are committed to working, they will give the organization the best performance hence success in the market sector.

In the workplace, employees will need to be satisfied. Employee performance is generally affected by the satisfaction of the organization. Reward system generally motivates employees as it influences the performance towards making the organization successful. Job satisfaction is mainly employed in finding success and happiness of employees in their work time. It also identifies whether the employees like or do not like working in the organization. To understand employees’ satisfaction within the firm, job satisfaction is essential in ensuring that employees are satisfied. The behavior of the employees will improve the way the organization functions (Robescu et al., 2016, pg. 51). If the employees are satisfied with the organization, they will be committed to the organization, which means that the general output of the organization is improved. Increasing the output of individuals in the organization means that there will also be increased productivity in the firm. Satisfaction also ensures that all employees will be able to do all that is needed for them by the firm at the right time, thus increasing efficiency. Incentives generally increase motivation in the way employees perform

To have job satisfaction in an organization, all employees need to be treated with respect. Respecting employees is valued as it increases satisfaction hence increased production. Trust is still another satisfaction factor in the employment sector. Employees will be much satisfied when respect is enhanced between them and between the management (Zameer et al., 2014, pg. 296). Security in the workplace enhances anxiety. Provision of security by honest communication and transparency enhances better company health with the employees and a good environment, hence managing the employees. Good pay and benefits are among the factors that enhance job satisfaction in the working environment. Competitive pay makes employees feel valued by the organization, making them feel well in the organization and having fewer reasons to find employment elsewhere. Having the employees feel safe generally increases satisfaction hence organization will have higher sales, lower production and management costs, and finally, a strong bottom line. To ensure that employees are satisfied with the kind of job they are in, the organization will need to use some aspects like payment reliefs and tax exemption to ensure that employees are motivated to increase productivity (Robescu et al., 2016, pg. 51). A good payment plan for the employees will prove that the organization will be successful in all aspects that it is undertaking. Promotion in working areas and increased payments act as a plan that shows concern in how employees are taken well care of by the organization. Motivating employees means that they will tend to use more effort to show gratitude to the organization, hence increasing success in how the firm is operating.

Employee reward performance refers to how employees generally recognize the jobs they are obliged to with the relation of the working environment and how it affects their jobs and lives. It is also a psychological manner that affects how an employee is concerned and engaged with their job. Job involvement has effects on the working environment and all the working experience of an employee. It controls all firm norms and all sets of valued feedback from the job the employees are undertaking. Involvement of the employees leads to a proper relation of commitment of the employees and the organization’s performance (Sypniewska, 2014, pg. 64). Proper involvement of the employees in their tasks will mean that the firm will have a productive and coordinated workplace, increasing work output. Rewarding leads to coordination in the organization where employees will work in a well-structured manner for better results. The coordination and increased productivity of the firm will grant the organization success in its undertakings. An organization’s working environment is crucial to how the organization operates; hence, a proper working environment will mean that the firm will have much success, hence more benefits to both the organization and the employees. Job involvement puts the effort on the performance of an individual through motivation to add more significant effort and enhance using creativity to ensure that issues like problem-solving are done with ease. Benefits of job involvement generally come from two sides; characteristics and personality of the individual and the organization’s context. Situational factors like the design of the job and style of management affect the employees’ job involvement (Chen et al., 2009, pg. 486). Factors of the job design affect o job involvement for employees with a strong urge to satisfy the psychological needs in the organization. Organizations will need to structure their jobs in a matter that will be useful to the employees and also be used to promote the organization’s success. All employees will need to be involved in the jobs they are well known for, and all kinds of work they have proved successful are increasing the organization’s productivity.

Motivation is all needs and wants which are directed towards a goal of a specific factor. Motivation in an organization helps in minimizing all physical efforts and enhances pleasure. Motivation acts as a primary tool in enhancing employee commitment that makes the organization accrue high benefits, and the employees have excitement during their work. It also serves as a factor that ensures all employees have trust within the organization, making the organization perform better in all its undertakings (Aziri, 2011, pg.3). Motivation can also be enhanced by the use of promotion which serves better work output. Gratitude is also crucial in how the employees are also motivated within the organization. In general, motivation leads to an increase in the commitment and the performance of the employees within the organization, which guarantees success in the firm.


Research methodology is the system of beliefs and possible assumptions that ensure the expansion of knowledge. Well thinking of the assumptions and the data will lead to successful and credible research that will enhance the methodological choice, research strategy, and analysis of the collected data. The philosophy of research that will be applied is that performance of an organization is based on the commitment of employees Katzenbach et al., 2015, pg.22). The study will support the literature and the theory, which is similar to employee commitment. The main aim is to understand how employees’ commitment to an organization affects its performance in general.

Research philosophy and approach

To get knowledge in a particular field, for instance, in a business environment, understanding the nature of research is very important. Still, the approach that will be given to the research also matters a lot in how data and information will be got and analyzed in the research. Two methods contemplate the research philosophy that is ontology and epistemology(Aziri, 2011, pg.3). In matters to deal with ontology, it gives meaning to how the perceiving of reality takes place. Epistemology, on the other hand, means what is acceptable of knowledge from the field of study.

In matters to deal with ontology, the first part that will be in view is objectivism. Researchers believe that it is quite relevant to adopt the standing of objectivism, and they only do research the real as they believe in subjectivism (Govender et al., 2010, pg. 245). To put in place the impact of employees’ commitment to the organization’s performance, the researcher will have to view all the conditions of the working place of employees and how they relate with the organization’s general performance.

When it comes to epistemology, a researcher will have to define their epistemology or even consider all that is said to be as knowledgeable in the area of operation. The research will be mainly aimed at ensuring that the relationship between employees and the organization is known. Also, the effects of employees operating in different working conditions and how it affects the organization’s performance will be considered. The researcher will ought to majorly use interpretivism, putting in mind that employees work in different conditions in different places. All organizations have employees, and the relationship between the employees and organization is similar within the globe.

Research approach

Researchers mostly use deductive and inductive approaches. It is stated that researchers choose one order to practice a clear distinction that is made periodically (Mishra, 2013 pg. 47). Also, it is believed that if both of the approaches are combined there, good research is produced from the data that is input. Induction is understood to start research from some specific observations, and then general theory and the deduction process are the opposite. The inductive approach will be followed by a logical sequence of suing interpretivism through qualitative data collection compared to quantitative data. There is a great importance of first collecting the data then;, theory development takes place.

Research Strategy

The author will consider choosing primary and secondary data to complete the research. There does not exist primary data since secondary data exists. Primary data can only be generated by conducting the research, and it is mainly considered a flexible method. The researcher will need to establish all appropriate systems to help them collect data, increase validity internally, and remove all unwanted variables to control the data collection process fully. High internal validity is the motivating factor that the researcher will accrue since the accessibility of primary data is not easy (Aziri, 2011, pg.3). If primary data reduces in matters to deal with the adverse effect, the secondary data will be used. This will mainly help the researcher to produce excellent and favorable results from the research. Answering the research questions and ensuring that the objective of the research is met, the researcher will need to use secondary data like textbooks and organization reports to generate a good report. Using secondary data saves the researcher time and money that will be spent in performing the research by the use of primary data.

Research methods

The collection of secondary data is not a problem for the researcher. Primary data through crucial is not easy to access, and secondary data collection helps supplement the primary data from the research. Collection of primary data will be through the use of questionnaires for employees within an organization. Other questionnaires will be structured to be used to get information from firms. Using the questionnaires, data that is valid and shows relevance to the research objectives are obtained (Christensen et al., 2011, pg. 42). By using questionnaires, qualitative data will be obtained since that means convenient and easy to use. Each employee will have to fill the questionnaire, which is confidential. The set of questions in the questionnaire generally helps the researcher get the needed qualitative data that will help the researcher understand the importance of employees’ commitment to the success of an organization. Some of the information in matters to deal with the primary research can be got by putting the questionnaires online where each employee can fill their place hence providing the required data. For the employers, information can be obtained directly, where the use of the questionnaires will help get the needed information by the researcher.

Type of the research

Two different data types will be used in conducting the research. Quantitative and qualitative data will be used in the research. Qualitative data is based on all meanings, which can be presented using words and analyzed by conceptualization. The data collected by using this means mainly relies on interpretation, and also, it doesn’t follow the structure, which is strict (Burren et al., 2010, pg.534). The data in the view is not easy to generalize since it becomes better when understanding how people are, especially in work matters. To get greater validity in the research, qualitative and quantitative data are essential to the validity of data collected. While conducting this research, quantitative data from secondary sources is necessary as it complements qualitative data. It gives the researcher a great idea of how employees’ commitment will result in a higher organization’s higher performance.


The questionnaire method is chosen because; the structured questions will help direct the employee and the employer to what to answer to provide the information. Also, general questions will be used to keep the person where information is being got from, allowing the respondents to understand the topic (Greguras et al., 2009, pg. 465). Using the questionnaire method, the researcher will provide the respondents with enough time to get information. Using the online method, questions will be answered with ease, providing a short time to get the results. In supplying the questionnaires, conduct will be made where some people will increase the answering rate and reduce the time taken when getting the needed information. After giving out the questionnaires, the researcher will need to first talk with the people given to create awareness of the importance of answering the question correctly by being frank.

Issues of access

To understand how employees are committed and how the commission to the organizations helps the organizations conduct successful practices, there will need to get 20 employees and two employers(Mishra, 2013). The researcher will access the targeted group by explaining how the data can help what is taking place in the research. Permission will be asked before the researcher gives the target group the questionnaires, which help get the needed data. Researchers should be ready to meet challenges in collecting data since some people will be reluctant to give out information while providing short answers. Some more time will be needed to get the data completely.


Data from the survey will e edited directly in a transcript and kept anonymously due to the names of the people. The researcher will generally analyze the data from the source, and the transcript will need to be checked for any mistakes. Because of time, factor analysis of the collection will be done by software to guarantee quality output.

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Research ethics

The research will be done by the use of all ethical methods in the area of research. A complete ethics form will need to be attached to the appendix since the data collection will be voluntary. Provision with all information about the need of the study and the significance of the topic of supply will be needed (Katzenbach et al.;2015). On some occasions, consent to provide the information can be hard to do because some people will e thinking that their lives are being intruded into.


All the relevant information, mainly in the introduction and literature review, is essential since it explains the importance of all organizations having employment benefits that suit the organization’s norms. The most crucial issue is getting the employees to be committed then all other issues will be running well. The relationship between the employees and organization matters a lot in how the employees’ commitment will be. For better results, the organization will need to constantly review its employees and how the current situation is happening. To better understand the matter, it will be good to have someone or even bring their grievances to ensure unity among the employees and the employer. A good and active relationship will always mean that employees are motivated in work. Since motivation is a crucial factor in ensuring its success, it will need to be looked upon by its management. All organizations will need to ensure that their employees are motivated by using the relevant rewarding systems determined by the organization. The employees can also determine them through their involvement in open forums within the organization’s meetings. To understand the effects of employees’ commitment on the organization’s performance, collected data (secondary) will need to be analyzed. Good analysis and a summary of the data collected will mean that data was well collected. Failure to do this will render it difficult to put more information on the employees’ impact from benefits outlined by the organization.


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