Supervisor : Aadil Riaz

Haroon Rasheed 51482

Contents

• Introduction
• Purpose of the study
• Literature Review
• Concepts & Indicators
Contents

 Methodology
 Hypothesis
 Conclusion
 Recommendations
 Experiences
INTRODUCTION

Effective rewards & recognition system is the vital

factor to achieve;
• Profitability
• Employee’s commitment
• Business growth
• Stability
 INTRODUCTION

 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.
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

Symme tric M e asure s

Value Approx. Sig.

Nominal by Phi .432 .002
Nominal Cramer's V .432 .002
N of Valid Cases 51
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null
hypothesis.
HYPOTHESIS TESTING

Bar Chart In above, phi is 0.002

and it is statistically
40 You are motivated to
stay further significant. Note that
this a measure of effect
No
Yes

30 size for an associational

statistic. According to
Cohen (1998) this is a
Count

20

medium to large size

effect.
10
So in the light of above
calculations, I would say
0
No Yes that the two variables
Performance appraisal system is working well in your
organization 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 growth
maximization 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.