Model Answer: Literature review on Employee motivation, rewards and performance

CHAPTER 02

LITERATURE REVIEW

Literature review is a comprehensive detail summery review of previous research done on the highlighted topic. Literature review survey is consist of scholarly articles, books, magazines, conference papers and related other sources relevant to the respective research area. Basically, it should be a theoretical basis, which corporate the author to determine the nature of the research area (Creswell, 1994).

Human Resource Management strongly believes that performance-based reward scheme has a significant role in increasing employee productivity and company performance. Therefore, herewith literature review will be illustrated on the motivational factors, theories which are important to its employees and staff of the company. Moreover, this report includes a critical review of performance-based reward scheme and its effectiveness. Therefore, the outcome of this literature review will be directly benefited to the organization to identify and compare previous motivational factors with present performance-based reward scheme.

2.2. Employee Motivation

Employee motivation is a factor, or factors, that cause(s) an employee to pursue work tasks or goals. It is what causes you to act in a certain way. There are two primary theories of motivation that are often used by employers: extrinsic motivation and intrinsic motivation. In this lesson, it is identified that these two types of motivation and how employers can use them (Herzberg, 1959).

Every successful organization mainly depends on the interest and positive relationship of their key stake holders. Therefore, the relationship between employees and the management is a key factor of the organization sustainable growth and stability. A sound relationship with employees will provide a better platform or friendly environment to work (Chandrasekar, 2011; Hammed and Amjad, 2009). Therefore, every organization is presently find ways to motivate their respective staff in many ways such as rewards and recognition, intensify, increments, promotions, provide technical or professional knowledge (Aamodt, 2012). It is observing that the level of motivation directly influences the employees positive thinking towards the organization and it directly impact on the company’s performance (Samson, Waiganjo and Koima, 2015). It can be identified by previous research studies that employees have different talents where they would likely to be displayed. Therefore, it is the management of the organisation to realize and motivates them by offering opportunities to perform (Decenzo, 1998). Presently organisation used many motivational methods to motivate their employees to achieve company’s objectives. It is empirically proven that performance-based rewarding scheme is the most effective tool used by many companies to motivate their employees (Fisher et al, 2006).

In the cutting-edge business world, compensation and reward system (CRS) have turned into an overbearing part. As indicated by Taylor (2005), strategically oversaw compelling CRS in a business unit can guarantee the tasks costs are diminished while the worker energy, execution