Indo-Iranian Journal of Scientific Research (IIJSR)

(Peer Reviewed International Journal), Volume 2, Issue 3, Pages 38-50, July-September 2018

A Study on the Impact of Rewards and Recognition Programs on Employee

Motivation and Satisfaction in Five Star Hotels in Chennai
Dr.S.N.Soundara Rajan1 and Harini Mokshashri Pragadish2
1
Professor, Saveetha School of Management, Poonamallee High Road, Chennai – 600077. Mobile: 98410 30080 Email: [email protected]
2
MBA Graduate, Saveetha School of Management, Poonamallee High Road, Chennai – 600077. Mobile: 9940432406 Email: [email protected]

Article Received: 29 April 2018 Article Accepted: 24 July 2018 Article Published: 25 August 2018

ABSTRACT

Employee motivation and satisfaction is one of the fundamentally researched subjects. Due to the booming of the Hospitality and tourism sector on
a global level in the recent times there is a lot of opportunity and growth for those candidates who opt to have a career in this industry. The
Hospitality and Tourism sector is one of the highest people oriented service sector which is rising at a fast pace in the recent years. Ensuring that the
employees in the hotel are satisfied and motivated must be one of the top priorities of the management so that it can acquire and retain its best talents
and also to deliver the best services with the highest quality. This study is undertaken to learn the impact of rewards and recognition programs on
employee motivation and satisfaction in five star hotels in Chennai. From the study it is evident that there is no significant link between the provision
of monetary rewards and non-monetary rewards to Employee motivation and satisfaction respectively in the five star hotels in Chennai, but there is
a significant link between the performance appraisal process and Employee motivation.
Keywords: Hospitality sector, Employee motivation, Employee Satisfaction, Rewards and Recognition Programs.

INTRODUCTION
Motivation is the energy that fuels people to choose a particular job and to try hard to succeed in that job. The
ultimate result of success driven by motivation is satisfaction. Which again leads to motivation? It resembles a
chain of events. Employee motivation refers to a factor, or factors, that cause an employee to pursue work tasks or
goals. It's what causes you to act in a certain way which is beneficial to achieving both individual and
Organisational objectives. Many studies state that motivation is focused on different human needs. These studies
state that the pressure of an unsatisfied need provides motivation, but Humans cannot simply be termed as creatures
who function after recognizing their need. They understand work situations based on the framework of their lives,
their perceived possibilities of Success, their cultural values, and the level of satisfaction that they have already
achieved. Each human being differs in character and in the way of functioning. It is the job of the Human resource
manager to know what kind of monetary or non-monetary reward an employee might prefer in order to be
motivated. Employee satisfaction is also an important element that contributes towards achieving the ultimate goals
of the organisations. Employee satisfaction is a portion of how contented workers are with their job and working
environment. So it is the management’s responsibility to ensure that the employees attain complete Job satisfaction
so that the firm would be able to achieve its shared objectives.

OBJECTIVE OF THE STUDY

To find the impact of Rewards and Recognition programs on employee motivation and satisfaction.
 To check if monetary rewards have an impact on the employee motivation.
 To find if non-monetary rewards influence the Employee satisfaction.
 To analyse how performance appraisal plays a crucial role in motivating and satisfying employees.

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 Indo-Iranian Journal of Scientific Research (IIJSR)
(Peer Reviewed International Journal), Volume 2, Issue 3, Pages 38-50, July-September 2018

SCOPE OF THE STUDY

The research study attempted to understand and analyse various HR factors revolving around rewards and
recognition programs and how it has an impact on employee motivation and satisfaction.

LIMITATIONS OF THE STUDY

 The sample size available during the research was limited.
 Time frame of the study was only for a duration of one month.
 This study lacked the ability to relate to a wider society in general.
 The analysis may not be taken as a universal answer as it is based on a study in Chennai, Tamil Nadu.

REVIEW OF LITERATURE
Employee motivation
Employee motivation is one of the vivacious parts in achieving the success of business. Employee motivation is a
compilation of active forces (C. C. Pinder, 1998); Each manager must understand the needs of the employees and
must generate an apt work environment to motivate employees (R. Luomanpaa, 2012); Crucial factors that
contribute to employee motivation are the needs of employees, their working environment, given responsibilities,
supervision, fairness shown employee´s development in the firm, feedback and rewarding. (S. Ramlall, 2004);
Employee motivation can be defined as the psychological process that gives behaviour purpose and direction
(Kreitner, 1995); an internal drive to satisfy an unsatisfied need (Higgins, 1994); and the will to achieve (Bedeian,
1993).

Employee satisfaction
Employee satisfaction has become an increasingly important category. A satisfied employee works more and
better. (Sakanovič and Mayer, 2006); A satisfied person is more successful and performs his/her work more
efficiently, achieves the goals of the organization and contributes to its effectiveness (Gorenak and Pagon, 2006).
The reason for wanting a job is often considerably more than just a pay check. Jobs can be looked at as the means
used to achieve personal goals. When a job meets an individual’s expectancy, the individual experiences positive
emotions.

Rewards and Recognition Programs

Provision of rewards is an important task of Human Resources Management. The compensation system that an
organization offers to its employees plays a significant role in determining the commitment levels of employees,
their motivation, satisfaction and their retention. The providing of a lucrative remuneration package is one of the
broadly discussed factors of Employee motivation and satisfaction (Parker & Wright, 2001). Rewards fulfill needs
of the employees and also provide a social status within the firm. Monetary and non-monetary rewards are
important in order to raise employee motivation and satisfaction. Monetary rewards that increase employee
motivation and satisfaction includes performance bonuses, reasonable salaries, and remuneration for scarce skills.

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 Indo-Iranian Journal of Scientific Research (IIJSR)
(Peer Reviewed International Journal), Volume 2, Issue 3, Pages 38-50, July-September 2018

Non-monetary rewards includes recognition programs, simple praise among other such non-monetary incentives.
(Pillay, 2009); Recognition is another non-monetary reward, yet many employees are not given even a pat in the
back or a handshake by their bosses. Recognition can come in different forms. An informal appreciation ceremony
for all those who have excelled expectations for a given month is the most common form. Other forms of
Non-monetary rewards are Provision of Training, A Chance to Contribute and Fringe Benefits.

Performance Appraisal contributing to Rewards and Recognition Programs

The General way is to appraise the employee’s performance and then after adequate analysis, the results are
evaluated and decisions are taken as to which reward is suitable for which employee and the same for the
recognition programs as well. The usual criteria for eligibility for nomination for the recognition programs after
employee appraisal might have many factors, but the outstanding factors are: Continuous attendance, No Warning
letter or misbehavior and a good recommendation from the Head of the Department. It is important to recognize
employees’ efforts and achievements and reward performance. The managers must take the time to personally
thank employees for doing something well which in some way has increased the level of productivity or even the
betterment of the organization. Performance appraisal and review must be made an obligatory process to ensure
that proper, fair and equitable reward system is maintained.

Importance of Employee Motivation and Employee satisfaction in an organisation

Importance of employee motivation
The answer is survival (Smith, 1994). Motivated employees are very much needed in our rapidly changing
workplaces. They help organizations survive. Motivated employees are more productive. Managers must
understand what motivates employees with respect to the work they perform. It is very complex and it is due to the
fact that whatever motivates at one time employees changes constantly (Bowen & Radhakrishna, 1991). For
instance, research proposes that as employees' income rises, money converts into a less of a motivator (Kovach,
1987). Also, as employees get older, interesting work becomes more of a motivator.

Importance of Employee satisfaction

Employee satisfaction is important to the triumph of any business. A high rate of employee contentedness is
directly related to a lower turnover rate. Thus, maintaining employee satisfaction should be a main priority for the
management. While this is a well-known fact in management practices, economic downturns like the current one
seem to cause employers to ignore it. There are numerous reasons why employees can become discouraged with
their jobs and resign, including high stress, lack of communication within the company, lack of recognition, or
limited opportunity for growth. Management should actively seek to improve these factors if they hope to lower
their turnover rate. Even in an economic downturn, turnover is an expense best avoided.

Employee Motivation and Employee satisfaction in the hotel industry

Employee motivation in the hotel industry

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 Indo-Iranian Journal of Scientific Research (IIJSR)
(Peer Reviewed International Journal), Volume 2, Issue 3, Pages 38-50, July-September 2018

The hotel industry has long struggled with this question because of high employee turnover. It is believed that the
nature of the work, its low pay, and its long working hours contribute to the high turnover. (Chun-Fang Chiang,
2010) Without motivation, an employee will not advance in his/her career (Wong et al., 1999). Motivation factors
comprising pay, financial rewards, chance for progression and upgrade which have been followed for ages in the
hotel industry (Byrne, 1986; Wong et al., 1999). Also, other motivation factors such as job responsibility, Getting
recognised by people, challenging work, and feelings of achievement and improvement of self-esteem have been
identified important for hotel employees (Wong et al., 1999).

Employee satisfaction in the hotel industry

Considering the circumstances which shape the hotel industry today, such as high labour intensiveness, constant
human interaction, dependence on other colleagues (Galičić & Laškarin, 2016) managing employee satisfaction in
the hotel industry compared to other industries represents the most critical point of hotel management. Diverse
scientific literature and practical examples demonstrate the importance of employee satisfaction and its causal
connection to job performance (Brayfield & Crockett 1955; Naylor, et al. 1980; Testa, et al., 1998; Judge, et al.
2001). This relationship has been described as “Holy Grail” of industrial psychologists (Landy, 1989). If these
employees are not satisfied it will lead them to lose interest in their job, which in turn affects the productivity of the
company. Therefore it is essential that the employee is satisfied by the management from time to time.

RESEARCH METHODOLOGY
Sampling Design
For the study, the researchers chose hospitality industry which does not have a standard workman position and the
respondents are not possibly available most of the time and also due to the time constrain for collecting the
information inside the organization the researchers used Non – probability convenient sampling method to collect
the data from the respondents.

Sample Size
The participants in this study were 80 employees working in different departments. The purpose of choosing
different departments is to cover the employees of different work nature and to get the information from the major
operating units in the organizations.

Questionnaire Design
These five-point Likert scale was selected as the response mode for the questionnaire. For each of the dimensions
the respondents are asked to tell whether and how strong they agree or disagree with the suggestion that is made.
This is done by choosing a number given on a five- point scale. The responses can then be given scores e.g. from 1
to 5 as was done in this research. Then the scores can be summed for each of the respondents in order to give
attitudinal score for each question.

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 Indo-Iranian Journal of Scientific Research (IIJSR)
(Peer Reviewed International Journal), Volume 2, Issue 3, Pages 38-50, July-September 2018

Data collection
Primary data
Primary data was collected both survey method by distributing questionnaires to hospital employees. The
questionnaires where carefully designed by taking into account the parameters of my study.
Secondary data
Besides the primary data, the secondary data was also collected for the study. Websites and books, Articles written
by various authors were referred for this purpose from the library to facilitate proper understating of the study.

Tools of analysis
The data collected from both the sources is analyses and interpreted in the systematic manner with the help of
statistical tool like percentage analysis and SPSS tool.

DATA INTERPRETATION AND ANALYSIS

The key results indicate that there is not much of a significant impact on Employee motivation and Employee
satisfaction by the Monetary Rewards and Non-Monetary Rewards (Recognition activities and Programs)
respectively. But there is a significant impact on employee motivation by Performance Appraisal in the five star
Hotel. The majority of the employees in the Organization are very much satisfied with the existing reward and
recognition programs. The researchers have employed a combination of naturalistic and participant observation
techniques in the five star hotel located in Chennai and have also taken help of a questionnaire to conduct the
research. The objectives of the study were satisfied and completed. The results are as follows:

Table 1. Profile of respondents and their responses on Recognition programs

No. of
S.No. Parameters %
Respondents
Gender
1  Male 60 75
 Female 20 25
Education
 School 6.25
5
 Diploma 32.5
26
2  Under Graduate 45
36
 Post Graduate 16.25
13
 Doctorate 0
0

Age
3  Age between 18 and 25 14 17.5
55 68.75

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 Indo-Iranian Journal of Scientific Research (IIJSR)
(Peer Reviewed International Journal), Volume 2, Issue 3, Pages 38-50, July-September 2018

 Age between 26 and 40 10 12.5

 Age between 41 and 55 1 1.25
 Age Greater than 55
Performance appraisal
4  Yes 80 100
 No 0 0
Performance Recognition
5  Yes 80 100
 No 0 0
Feedback Provided during Appraisal
6  Yes 80 100
 No 0 0
Feedback accepted at time of Appraisal
7  Yes 79 99
 No 1 1
Salary is satisfactory
Agree
Strongly Agree 20 25
8
Neither Agree nor Disagree 53 66
Disagree 4 5
3 4
Career Progression is Satisfactory
Agree
Strongly Agree 35 44
9
Neither Agree nor Disagree 15 19
Disagree 23 29
7 9
Expected work is realistic
Agree 12 15
10 Strongly Agree 48 60
Neither Agree nor Disagree 14 18
Disagree 6 8
Required training is provided
Agree 6 8
11
Strongly Agree 62 78
Neither Agree nor Disagree 12 14

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 Indo-Iranian Journal of Scientific Research (IIJSR)
(Peer Reviewed International Journal), Volume 2, Issue 3, Pages 38-50, July-September 2018

Innovation is appreciated
Agree 41 51
12 Strongly Agree 33 41
Neither Agree nor Disagree 1 1
Disagree 5 6
Locker Facilities are Satisfactory
Agree 4 5
Strongly Agree 25 31
13
Neither Agree nor Disagree 6 8
Disagree 36 45
Strongly Disagree 9 11
Shift timings are Satisfactory
Agree 12 15
14 Strongly Agree 62 78
Neither Agree nor Disagree 2 3
Disagree 4 5
Discipline is Maintained by all employees irrespective of the
designation
15
Agree 3 4
Strongly Agree 77 96
Organization is concerned with motivating employees
Agree
16
Strongly Agree 26 32
54 68
Motivation is High through Non-Monetary Rewards
17 Agree 28 35
Strongly Agree 52 65
Motivation is High through Monetary Rewards
Agree
18
Strongly Agree 43 54
37 46
Working Conditions are encouraging
Agree 28 35
19 Strongly Agree 47 59
Neither Agree nor Disagree 4 5
Disagree 1 1

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 Indo-Iranian Journal of Scientific Research (IIJSR)
(Peer Reviewed International Journal), Volume 2, Issue 3, Pages 38-50, July-September 2018

Motivation is High through Activities

20 Agree 29 36
Strongly Agree 51 64
Motivation is High through Award Functions
21 Agree 42 53
Strongly Agree 38 48
Decision making helps employee get motivated
22 Agree 43 54
Strongly Agree 37 46
Appraisal rating Motivates employees
Agree 47 59
23 Strongly Agree 21 26
Neither Agree nor Disagree 1 1
Disagree 11 14
Level of motivation through monetary rewards
Never Motivated 0 0
Sometimes Motivated 7 9
24
Neutral 9 11
Well Motivated 37 46
Highly Motivated 27 30
Level of motivation through non-monetary rewards
Never Motivated 0 0
Sometimes Motivated
25 Neutral 7 9
Well Motivated 7 9
Highly Motivated 42 53
24 30
Level of motivation at time of receiving appraisal rating
Never Motivated 7 9
Sometimes Motivated 7 9
26
Neutral 2 3
Well Motivated 41 51
Highly Motivated 23 29
Overall level of motivation of employee
27 Never Motivated 1 1
Sometimes Motivated 5 6

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 Indo-Iranian Journal of Scientific Research (IIJSR)
(Peer Reviewed International Journal), Volume 2, Issue 3, Pages 38-50, July-September 2018

Neutral 13 16
Well Motivated 37 46
Highly Motivated 24 30
Level of Satisfaction through monetary rewards
Neutral 2 3
28
Well Motivated 38 48
Highly Motivated 40 50
Level of Satisfaction through non-monetary rewards
Never Motivated 5 6
Sometimes Motivated 7 9
29
Neutral 22 28
Well Motivated 33 41
Highly Motivated 13 16
Level of satisfaction at time of receiving appraisal rating
Never Motivated 7 9
Sometimes Motivated 7 9
30
Neutral 2 3
Well Motivated 41 51
Highly Motivated 23 29

Anova Test 1
 Null Hypothesis (H0): There is no significant relationship between provision of monetary Rewards and
employee motivation.
 Alternate Hypothesis (H1): There is a significant relationship between provision of monetary rewards and
employee motivation.
Anova
Sum of
Model df Mean Square F Sig.
Squares
Regression .006 1 .006 .160 .690b
1 Residual 2.741 78 .035
Total 2.747 79
a. Dependent Variable: EmplMotivation
b. Predictors: (Constant), MontRewards

Since the Significance level is 0.690, which is more than 0.05, the null hypothesis is accepted. Therefore this table
indicates that there is no significant relationship between provision of monetary Rewards and employee motivation.

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 Indo-Iranian Journal of Scientific Research (IIJSR)
(Peer Reviewed International Journal), Volume 2, Issue 3, Pages 38-50, July-September 2018

Anova Test 2:
 Null Hypothesis (H0): There is no significant relationship between provision of non-monetary Rewards
and employee Satisfaction.
 Alternate Hypothesis (H1): There is a significant relationship between provision of non-monetary rewards
and employee Satisfaction.
Anova
Sum of
Model df Mean Square F Sig.
Squares
Regression .045 1 .045 .100 .752b
1 Residual 35.016 78 .449
Total 35.061 79
a. Dependent Variable: EmplSatisfaction
b. Predictors: (Constant), NonMontRewards

Since the Significance level is 0.752, which is more than 0.05, the null hypothesis is accepted. Therefore this table
indicates that there is no significant relationship between provision of non-monetary Rewards and employee
Satisfaction.

Anova Test 3:
 Null Hypothesis (H0) :There is no significant relationship between Employee motivation and Performance
appraisal
 Alternate Hypothesis (H1) :There is a significant relationship between Employee motivation and
Performance appraisal
Anova
Sum of
Model df Mean Square F Sig.
Squares
Regression 1.012 1 1.012 4.649 .034b
1 Residual 16.976 78 .218
Total 17.987 79
a. Dependent Variable: EmpMotivation
b. Predictors: (Constant), PerfAppraisal

Since the Significance level is 0.034, which is less than 0.05, the null hypothesis is rejected. Therefore this table
indicates that there is a significant relationship between Employee motivation and Performance appraisal.

SUGGESTIONS
The researchers have a few suggestions regarding the functions performed in the Five Star Hotel with respect to
Employee motivation and Satisfaction. Some of the suggestions are:

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 Indo-Iranian Journal of Scientific Research (IIJSR)
(Peer Reviewed International Journal), Volume 2, Issue 3, Pages 38-50, July-September 2018

 The Hotel can introduce many more activities for increasing the overall employee satisfaction, as there is a
recent spike in positive behavior of employees when it comes to participation in activities. They see it as a
stress buster.
 The department of human resource at the hotel still follow traditional methods to maintain database of
employees for certain processes alone. It is highly recommended that they soon digitalize all their data, So
that it would be easier for them to access data when needed, which would also save a lot of time for both the
HR department and the Employees.
 A lot of files get lost easily due to the busy schedule of the admin. Better handling of data is advised by all
and not only one member of the HR department.
 The Human resource department must have the ability to manage all the other employees in the
organization. They must manage the control that they have over them from time to time, when and
wherever need. As many procedures are not followed as per the routine due to poor cooperation from other
departments. This might be caused due to lack of Employee motivation.

CONCLUSION
The researchers had undergone an internship period of two months, in a reputed five star hotel in Chennai, as part of
the course requirement. The objectives of the study were achieved successfully by the researchers. The researchers
had successfully studied about the impact of rewards and recognition programs on Employee motivation and
satisfaction in A Five Star hotel. During this study the researchers learned about the importance of employee
motivation and employee satisfaction. The researchers also realized the importance of the role played by the
rewards and recognition programs in the way the employees perform their job and behave at the workplace. They
also realized how the monetary and non-monetary rewards affect the employee motivation and employee
satisfaction levels respectively. The key results indicate that there is not much of a significant impact on Employee
motivation and Employee satisfaction by Monetary Rewards and Non-Monetary Rewards (Recognition activities
and Programs) respectively. But there is a significant impact on employee motivation by Performance Appraisal in
the five star Hotel. The majority of the employees in the Organization are very much satisfied with the existing
reward and recognition programs. The research was performed by collecting data with help of a questionnaire but
some of the data was also obtained by observing the functions of the Human Resource department at the five star
hotel located in Chennai, which was very helpful.

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