effective rewards & recognition system haroon 51482

Supervisor : Aadil RiazSupervisor : Aadil Riaz

Haroon Rasheed 51482Haroon Rasheed 51482

Contents

• Introduction

• Purpose of the study

• Literature Review

• Concepts & Indicators

Contents

MethodologyHypothesis ConclusionRecommendationsExperiences

INTRODUCTION

Effective rewards & recognition system is the vital factor to achieve;• Profitability

• Employee’s commitment

• Business growth

• Stability

In our society & culture most people have the juicy “bad workplace environment & bad boss” tales to tell.

People have a strong urge to “spill the beans” about their performance, efficiency and productivity and to highlight the inadequate remuneration & support they get from the firm.

INTRODUCTION

PURPOSE OF STUDY

Empirical study is carried out;

The relationship between effective Rewards & Recognition system

√ Process equity√ Personal growth√ Maximization of shareholder’s profit

LITERATURE REVIEW

Selected 13 research articles from different sources, in order to understand the applications of R&R system and to find

Gap analysis

Variables

Concepts & Indicators

CONCEPT & INDICATORS

Transparent appraisal system

Functioning reward committee

Well defined & clearly communicated recognition criteria

Clearly stated performance standards

Integrity of committee members

Integrity of information

CONCEPT & INDICATORS

Employee receptiveness towards system

Employees attitude towards incentives

Functioning grievances handling procedures

Employees concept about organization

Accountability & Feedback

Internal & External equity

Fair implementation of policies

METHODOLOGY

Population

All policy makers, Managers and Employees of all levels is population for this research project from all private & public limited business organizations.

Sample Size

Sample size is 51 managers and employees.

Sampling Technique

Used Convenient sampling

METHODOLOGY

Testing Methods

Correlation with Chi-Square Cross-Tabulation

for composite measure based on the scale of

significance level.

Data Collection

Data is collected through self filling questionnaires.

HYPOTHESIS

H1: The effective reward and recognition system allows workers to grow well and to maximize share holder’s profit.

H2: Process Equity is the most important ingredient or part of effective Rewards & Recognition System.

HYPOTHESIS TESTING

H1: Hypothesis passed the three tests out of five on the scale of significance level.

Proved through research that effective rewards and recognition system plays an important role in workers growth and in maximization of share holder’s profitability

HYPOTHESIS TESTING

H2: Hypothesis passed only one test out of three on the scale of significance level.

Proved through research that process equity is not the most important part or ingredient of effective rewards and recognition system. It has the importance but there are certain other factors which are being considered by the employees to compromise otherwise

HYPOTHESIS TESTING

Symmetric Measures

.432 .002

.432 .002

51

Phi

Cramer's V

Nominal byNominal

N of Valid Cases

Value Approx. Sig.

Not assuming the null hypothesis.a.

Using the asymptotic standard error assuming the nullhypothesis.

b.

HYPOTHESIS TESTING

Performance appraisal system is working well in your organization

YesNo

Co

un

t

40

30

20

10

0

Bar Chart

YesNo

You are motivated to stay further

In above, phi is 0.002 and it is statistically significant. Note that this a measure of effect size for an associational statistic. According to Cohen (1998) this is a medium to large size effect.So in the light of above calculations, I would say that the two variables are correlated to each other.

Conclusion

H1: Hypothesis passed the three tests out of five on the scale of significance level.

Proved through research that effective R&R system plays an important role in;

workers growthmaximization of shareholder’s

profitability H2: Hypothesis passed only one test out of three on the scale

of significance level.

Proved through research that process equity is not the most important part or ingredient of effective R&R system. has importance but certain other factors can be considered by the employees to compromise otherwise.

RECOMMENDATIONS

Rewards and recognition has a pivotal role in the productivity and has robust influence to promote image, profit, and credibility of the firm. Therefore, it should be maintained, promoted, implemented and refreshed vigorously.

Maintain inspiring and feasible working environment that include; the understanding to give importance to workers view point, the convenient task, conditions, the resources and passion to accomplish goals.

Establish team system and promote equal relationship/importance for all team members as every member is touch point for customers and firm

RECOMMENDATIONS

Hire those who are motivated and capable to apply themselves

in different situations confidently

Always set achievable short targets that ultimately leads to the

whole because “only dead fish swim the stream”

Provide fair rewards with the perceived image of fairness.

Recognition should be given equally, on the basis of merit.

EXPERIENCES

• In most of the cases people’s response was not candid.

• Most of the employees were found reluctant to unleash the real opinion

• Employees do not like to offer them personal questions

• In certain cases, employees were found confused to distinguish between

their responsibilities and rewards.

• The concept of rewards & recognition system is misapprehended in local

organization

• The convenience sampling has its own demerits and derived conclusion

can not be generalized.