Investigation on Effect of Reward System on Employee's Performance (Research Paper Sample)

An Investigation on Effect of Reward System on Employee's Performance During Covid-19, an Empirical Study of the Aviation Industry (Singapore)
Student's Name
Course Name
Professor
University
City and State
Date
1.0 Introduction
Organizations nowadays confront various obstacles to stay competitive in their operational sectors and obtain a long-term competitive edge. Nowadays, most businesses employ people of many countries, ethnicities, and socioeconomic backgrounds, making employee retention difficult. Consumers have grown more knowledgeable about goods, services, business practices, and individual freedoms than ever before in the globalized world of modern technology and the internet, necessitating more skilled and effectively trained personnel from corporations (Torrington et al., 2009).
Retaining a bright and high-quality employee has long been regarded as a long-term sustained competitive advantage, which has become difficult for businesses in the current business climate (Armstrong, 2016). According to Armstrong (2016), a reward system is designed to show gratitude for good performers while incentivizing poor performers to boost their output. Furthermore, one of the most influential variables in maximizing employee work happiness and productivity has been found as incentive schemes. In the eyes of management, an incentive system is designed to alter workers' attitudes toward their employment and the firm as a whole (Griffin et al., 2016). Employees that achieve or often exceed management's standards are rewarded, serving as a tool for motivating, attracting, and retaining talented workers.
1.1 Contextual Background
Each employee's performance impacts the team, department, administration, and business. As a result, performance is a critical component of an organization's success and productivity (Armstrong, 2016). Reward systems are a technique to boost an organization's efficiency while also monitoring employee performance, therefore keeping competent staff and recruiting fresh talent. According to Shields et al. (2015), awards should be tailored to the demands of individual workers since some prefer monetary prizes while others prefer alternative incentives such as a home, vehicle, or paid vacation. According to the above claim, an effective reward system should include monetary and non-monetary awards and incentives to meet the requirements and expectations of workers towards management and the reward system.
According to Torrington (2009), a good influence on employee productivity may be obtained only if the incentive system fits the requirements and expectations of workers. The most frequent types of incentives are intrinsic and extrinsic, with extrinsic rewards being promotions, commissions, bonuses, and prizes, and inherent rewards include performance praise, social acknowledgment, better working conditions, job diversity, and increased responsibility. Intrinsic motivation is the kind of motivation that originates from inside a person. This motivation is mainly derived from the enjoyment that an employee feels after completing a task or, in certain situations while working. Responsibility, independence to act, scope to utilize and develop skills and talents, exciting job, and prospects for growth may all affect intrinsic motivation. These motivators are employed to have a long-term influence since they are generated by the person rather than the surroundings (Armstrong, 2016).
On the other hand, extrinsic motivation is created by certain acts taken to motivate individuals. Money, grades, criticism, and punishments are all examples of external sources of incentive. Employees who are intrinsically driven may work on a job even if they are uninterested in it because they know that the reward should provide them with fulfillment and pleasure after the activity is accomplished. However, external motivation has a short-term impact on workers, and new incentives need to be presented when new tasks are completed (Armstrong, 2016). Employee commitment, motivation, and work happiness are enhanced by a healthy mix of extrinsic and intrinsic incentives, which improves employee performance significantly concerning productivity (Khan et al., 2017). Furthermore, according to researcher Wang (2020), a reward system effectively increases employee engagement while also enhancing employee loyalty and work satisfaction.
Additionally, Torrington (2009) researched incentives systems and their effects on organizations, concluding that an appropriate reward system maximizes work satisfaction, increasing staff productivity and quality. Pratheepkanth (2018) discovered that internal and external incentives are substantially positively related to employee motivation. He agrees with other H.R. investigators that a good association between motivation and incentives improves employee work satisfaction. Following it up, work happiness impacts an employee's view of job success and accomplishment. Job happiness is also linked to employee productivity, dedication, and loyalty to a company, according to Pratheepkanth.
According to Latham (2012), a firm should have a well-developed incentives system that fits the requirements and desires of its workers; otherwise, the system would be useless. While Boehm and Lyubomirsky (2008) regard the incentive system as a tool for job promotion, they believe that awards may drive people to learn and enhance their skills and competencies more quickly, resulting in career advancement. Job satisfaction is strongly influenced by employees' perceptions of the reward system, as well as performance appraisal and recognition, according to Andrew and Kent (2007), whereas Raza (2012) wraps up that the reward system is indeed a key motivator for employees to meet management's performance expectations.
Danish and Usman (2010) explored the incentive system to encourage workers to maximize production and deepen commitment to an organization by generating pleasant and beneficial working circumstances. Furthermore, they point out that performance recognition fosters strong staff morale, which helps a company's effective operation on the market. Employee burnout affects practically all sorts of workers at all levels, and a well-designed incentive system may help avoid it. Burnouts have a detrimental impact on workers, lowering job satisfaction and affecting motivation and the whole work procedures. Kehoe and Wright (2013) performed statistical tests in 2013 and discovered a significant association between the incentive system and performance recognition and motivation and work satisfaction. According to their research, employee motivation and work satisfaction fluctuate with changes in acknowledgment and incentives. Increased compensation, for example, leads to increased employee performance.
1.2 Organizational Background
Aviation Industry (Singapore) is a growing and innovative aviation technology industry in Singapore. As new trends and technology define an ever-changing environment, the aviation sector continually evolves. Singapore has developed the industry into a significant facilitator of the Singapore economy. We have the most award-winning airport globally, an excellent air safety record, a well-respected aviation training center, and a thriving aviation business. This comprises world-class airport and airline firms, globally famous maintenance, repair, and operations (MRO) companies, and associated aviation ancillary service providers, all of which result from a dedication to building a world-class aviation system.
Every year, the air transportation sector transports billions of people and tons of goods throughout the globe for business, pleasure, or personal reasons. It is a significant facilitator of international commerce and interchange. Singapore's growth as a global aviation hub with over 320 destinations and 54 million passengers annually aids in attracting high-value-added investments and talent to our shores. Aside from the most apparent pilot and cabin crew jobs, the aviation sector also employs various other professionals in aviation law and economics, fuel hedging, revenue management, route planning, and in-flight product and service development. According to the International Air Transport Association (ICAO), air traffic in the Asia-Pacific region will treble by 2030, presenting great potential for Singapore since our airlines are expected to receive over 150 new planes in the coming years. We are also increasing industrial land for more air freight and aerospace firms and new infrastructure for Changi Airport with building a third runway and a gigantic Terminal 5.
1.3 Problem Statement
The Aviation Industry (Singapore) requires efficient and effective tactics in all operational areas to remain competitive in the sector and grow market share. Employee motivation and morale have a significant role in the company's growth and competitiveness. A complete incentive system is a powerful management tool for motivating workers, inferior performers and enhancing job satisfaction, especially among high achievers (Dewhurst et al., 2009). Nevertheless, some workers are more driven by extrinsic benefits, whereas others choose intrinsic rewards, owing to variances in personalities and individual interests. Employees' career and professional growth must also be considered (Andrew and Kent, 2007). Additionally, proper awards give workers the impression that they are valued, and that management recognizes and appreciates their efforts.
The most important takeaway from this research is that conventional ways to increase productivity thrive in today's corporate climate. As a result, it is critical for businesses to maintain and enhance employee mo...