Research dissertation 1

The Impact of reward management as an incentive for staff retention and organizational

productivity: A case study of Chinese HRM strategies of Compensation and Reward at Huawei

and Haier in UK

Presented by

Student Name:

A Research dissertation Submitted in Partial Fulfillment for the Postgraduate Certificate

and Diploma in study in HRM, University of Lincoln

August 2014
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Abstract

The current research dissertation investigates the impact of reward management as an incentive

for staff retention and organizational productivity at Huawei and Haier in UK. Hence, by

investigating the strategies of reward and compensation adopted by the case study

organizations, the current research sought to provide additional insight concerning the

situation under which performance-based reward plans can become effective. Apart from

identifying the financial and non-financial rewards selected by the management of the case

studies, it is important that management empowers their staffs and recognizes the role of

designing and implementing performance-based plans. The findings revealed that rewards and

compensations incentives showed positive significant relation with the level of staff retention

and increase in organizational productivity.

KEY WORDS: Reward, Compensation, Retention, Productivity

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Acknowledgement
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Table of Contents
Abstract.......................................................................................................................................................2
Acknowledgement.......................................................................................................................................3
1. CHAPTER ONE: INTRODUCTION...........................................................................................................6
1.1. Study Background........................................................................................................................6
1.2. Research objectives and questions..............................................................................................8
2. CHAPTER TWO: LITERATURE REVIEW................................................................................................11
2.1. Introduction...............................................................................................................................11
2.2. Employee Reward management research.................................................................................12
2.3. Employee retention research....................................................................................................13
2.4. Impact of reward management incentives on staff retention...................................................15
2.5. Impact of incentive on staff performance..................................................................................19
3. CHAPTER THREE: METHODOLODY.....................................................................................................23
3.1. Shaping of Research Process.....................................................................................................23
3.2. Research philosophy..................................................................................................................24
3.3. Research approach....................................................................................................................25
3.4. Research strategy......................................................................................................................26
3.5. Ethical considerations................................................................................................................27
3.6. Rigor..........................................................................................................................................28
3.7. Variable operationalization........................................................................................................29
3.8. Control variables........................................................................................................................32
3.9. Model specification...................................................................................................................32
4. CHAPTER FOUR: DATA COLLETION AND FINDINGS............................................................................34
4.1. Data collection...........................................................................................................................34
4.2. Findings......................................................................................................................................36
4.3. Empirical model findings............................................................................................................37
4.4. The analysis findings for productivity model.............................................................................41
5. CHAPTER FIVE: ANALYSIS AND DISCUSSION......................................................................................45
5.1. The impact of reward management on staff retention..............................................................45
5.2. The impact of reward management on organizational productivity..........................................51
5.3. Theoretical and practical implications.......................................................................................53
6. CHAPTER SIX: LIMITATIONS AND FUTURE RESEARCH........................................................................55
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7. CHAPTER SEVEN: CONCLUSION.........................................................................................................57

8. REFERENCES......................................................................................................................................59
9. APPENDICES.......................................................................................................................................63
9.1. Questionnaire instrument.........................................................................................................63
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1. CHAPTER ONE: INTRODUCTION

1.1. Study Background

The economic theory provides that and implementing on performance-based compensations

has the impact of increasing employee retention in the organization and sees the need to exert mush of

their efforts to perform even better (Glebbeek & Bax, 2004). Previously conducted empirical studies

and laboratory experiments concerning the current topic have focused on management of several

compensation plans and examined reward management approaches. Their findings reveal that an

increase in employee retention level makes employees to record higher performance and hence, overall

organizational performance (Dess & Shaw, 2001). However, organizational managers might also make

decisions to adopt and design compensation management incentives in order to have a positive impact

on employees. For example, in a contemporary business environment, organizations are

increasing looking for ways to retain existing staff at all costs. Additionally Krell (2011) points

out that, the realization that employees are the most valuable resources of organizations

competitive advantage over its main competitors has seen firms focus on implementing

retention strategies. Sayim (2010) explains that, managers’ project talent shortages as growing

into the next decade. This could limit the ability of organizations to grow as well as survive in a

competitive global landscape.

Organizations are now focusing on their existing talents by implementing training

programs, providing career development opportunities among others. On the other hand,

Michael, Duncan and Peter (2011) posit that, the focus has now shifted to the development of

competitive reward management strategies in organizations as a staff retention strategy. This

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has been the case as organizations have now realized that it is only by offering improved and

lucrative performance-based schemes that attract a pool of top talented employees.

Apart from attracting and retaining a talent of employees, Stevens (2010) contends that

organizational managers have realized that reward-based performance plans also play a key

role when it comes to motivating employees to increase on their performance. For instance, it

is only through such schemes that a well-rewarded employee feels their value for working in an

organization. Furthermore, employees also use rewards to find the reason for working harder

to achieve the set objectives. For example, while employees form the essential resources and

engine for organizational performance, rewards, on the other hand, forms fuel that motivates

employees. Hence, this implies that no one organization can achieve its objective without

depending on well-rewarded employees.

Even though several studies have focused studying the impact of rewards on

performance, there are still mixed findings concerning the impact of such rewards on both

employee retention and overall firm performance? For instance, a recent research study

conducted by Tirbutt (2014) shows a weaker correlation between rewards and employee

retention. Furthermore, another study conducted by Kanungo and Mendonca (2000) on

Chinese textile industries, indicate that while reward systems led to a higher level of retention

among employees, the empirical findings failed to show any instances of correlation between

employee retention and performance. However, other studies have successfully showed a

stronger relationship between performance based-reward schemes and employee retention

(Dess & Shaw, 2001). According to these studies, reward management strategies have become

important retaining top talents in organizations attracting high performers.

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1.2. Research objectives and questions

As discussed above, the current research project focused on Chinese Multinationals in

UK that adopted performance based-reward schemes as incentives. Such adoption and

implementation came as a recommendation and requirement of 1998 requiring that industry

players major multinationals, implement on labor law amendments. My database involved two

Chinese multinational corporations in UK with multinational with 3,000 individual level

observations including performance ratings, sales quantities, employee rewards and other

aspects such as demographic information. Furthermore, the database also included

organizational-level data such as new hires, income level, turnover rates and revenues. The

dissertation paper found that adopting and implementing on performance-based reward

scheme in the two multinational organizations increased individual performance and

compensation. More importantly, there was a greater impact for the higher performing

employees. While using the theory to predict retention and performance of employees, the

study observed that the incentives contributed towards attracting less-performing employees

and retained a considerable number of high-ability performing employees. More interestingly,

the research study did not find a decrease in the level of individual productivity translating into

lower performance. For instance, our interviews conducted on managers from the Chinese

Multinational corporations in UK and other additional analyses, revealed that in light of the

reduction in the level of employee sales, managers from the two Chinese multinational

corporations from UK began to hire more employees. Furthermore, the managers from the two

companies also began to design performance-based compensation systems and advanced them

to employees.
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The current thesis sought to add to the already existing prior studies by being the first

research study to use the two companies as the case studies, to examine the Impact of reward

management as an incentive for staff retention and organizational productivity at Chinese

Multinationals in the UK. Furthermore, the current thesis measured directly, the impact of reward

management as an incentive, to employee retention and overall organizational performance by using a

cross-sectional data covering the period before the implementation of the reward scheme and after the

implementation of the reward scheme. More importantly, review of the past studies revealed that the

previous empirical studies in this area seem experimental in nature. Consequently, they only tend to

test on only one of the two variables (Dess & Shaw, 2001). However, the study conducted in the

current thesis, had the objective of examining the impact of reward as an incentive scheme to both

retention and employee productivity in a simultaneous manner. Addition, other studies including that of

Williams et al. (2008), have focused on examining the manner of implementing performance-based

reward schemes and the manner they affect employee performance. However, the study findings only

showed that after management had implemented on the plan, they simply measured the level of

employee performance. Bryant and Allen (2013) remained explicit concerning such limitations by

noting that the lack of such an objective makes it even harder to access individual data that explains the

retention and motivation for employees to increase on their performance. Shaw, Gupta and Delery

(2002) adds to above assertions by explaining that the study also limits the access to knowledge in

order to understand the impact of an incentive plan towards retaining more employees within an

organization. The current thesis noted that in addition to Shaw, et al. (2002) inferences, the

inferences concerning employee retention and turnover depended only on comparing the sales volume

between those that remained in the organization and those that left the organization adopting the

incentive plans. As indicated in our thesis, therefore, is that the objective was to obtain employee data

covering both before and after implementation of a performance-based incentive plan. Consequently,
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this helped in providing a robust conclusion regarding the impact of management of reward as an

incentive in increasing staff retention and organizational productivity at Chinese Multinationals in the

UK.

In addition, the current study also went beyond other previous studies by examining the way

employees’ skills affected the performance of the two case studies after designing and implementing on

performance-based reward system. While doing this, the current study measured performance abilities

of employees by using proxies of factor analysis. The three-factor analysis measured by the current

study included the annual performance rating for an individual employee, the sales made by an

individual employer, and the reciprocal of time for the promotion since the manager of separate case

study employed the employee. In specific, measuring the above performance abilities played a key role

in identifying specific performance groups affected by the performance-based program, but also

provided a better understanding concerning employee turnover after the implementation of the system.

Furthermore, the findings also have implications that are more practical when it comes to assisting the

top-level managers from the respective companies in anticipating the potential impact of changes in the

performance-based system from the less performance-sensitive compensation plan towards a more

responsive reward scheme. Additionally, the managers get to understand the possible effect of

changes in employee recruitment and employee turnover.

According to the above discussion, the three primary objectives for the current research project

included:

1. To examine the nature of reward management scheme as an incentive at Huawei and Haier in

UK

2. To examine the impact of reward management scheme on retention of staffs at Huawei and

Haier in UK
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3. To examine the impact of retention of staff retention on organizational productivity at Chinese

Multinationals in the UK

4. To examine the impact of reward management scheme on organizational productivity at

Chinese Multinationals in the UK

2. CHAPTER TWO: LITERATURE REVIEW

2.1. Introduction
The correction section of the research study focuses on reviewing the past literature that

examines the same topic. In so doing, my intention was to enlist various findings conducted by

the researchers, their opinions and proposals on the models. Furthermore, review of the

literature as explained by Osterloh and Frey (2000) was to assist in identifying some of the

weaknesses in terms of gaps and strengths for adoptions. More importantly, identifying the gaps

provides a better foundation to design the appropriate approach and models for bridging such

gaps. In overall, a number of subtopics will focus on defining and understanding different

compensation and performance-based systems to employees, the impact of such reward schemes

on retention of staffs in organizational environments, the impact of retention on staff

performance, and finally, the impact of reward management as an incentive to staff performance.

In so doing, the research project will help understand the overall impact of reward management

as an incentive scheme on both staff retention and productivity of Huawei and Haier as the two

Chinese Multinationals corporations in the UK. Besides, the section also presents the theoretical and

model underpinning of above-different aspects affected by reward management as an incentive for both

staff retention and productivity.

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2.2. Employee Reward management research

Several studies have focused into studying different reward management schemes and ways of

motivating employees to accomplish their roles. Chin –Ju Tsai (2010) recommends that the starting

point into understanding the impact of a reward system is to categorize it into benefits plans or

performance-based scheme managements that organizational managers advance to staffs. for instance,

Osterloh and Frey (2000) explains that management can manage rewards as incentives in the form of

prize (praise), recognition, cash or even a combination of both aspects. When it comes to a group based

performance rewards, the author explains that management may decide to reward a team or a group of

employees with a cash payment for having achieved a certain set target. While employees might see such

rewards as a form of encouragement or praises, Osterloh and Frey posits that organizations manage such

rewards in the form of incentives as a way of enhancing retention in organizations and aligning individual

employees’ interests together with those of the entire organization. Kanungo and Mendonca (2000)

supports above the view by illustrating that reward management as an incentive may occur in the term of

profit sharing between the organization and employees in order to contribute towards increased retention

of employees, linking their interests to those of the entire team and organization.

Other empirical grounded studies maintain that entirely, reward management as an incentive falls

into one group known as a benefits plan (Chin –Ju Tsai 2010; Ratna & Chawla, S 2012). In studying

the topical area, Chin –Ju Tsai explains that benefits programs involve the section of the whole

compensation package that differs from the normal pay given to staffs after accomplishing their tasks.

Managers do this in order to provide workers in either completely or in part. In addition, the article

journal further explains that organizational managers manage can decide to manage benefits in the form

of group membership rewards as an incentive. In so doing, managers offer the security to not only the

members, but together with their families. Management of benefits plans occurs in two different ways.

For instance, the first refers to the narrow definition, which incorporates the manager, or the employer

provided health, fringe benefits, welfare and health. Besides, there is a need to include other social
 Research dissertation 13

insurance programs as a way of broadening the above-narrow definition for benefits advanced to

employees. In particular, satisfaction of benefits should include not only different types and levels of

specified benefits received by employees, but that such satisfactions should incorporate the manner in

which the entire system operates (Stevens, 2010). Organizational managers design and manage

employee benefits in order to protect individual employees from the risks that could compromise or even

jeopardize their financial security or the health status. Additionally, Mrkvicka (2014) explain in his

journal article that different organizational managers design benefits plan in order to increase the value

for employees, encourage employees to remain and work for the firm for a considerable time.

Consequently, benefits plans tend to have a moderating effect towards organizational productivity,

irrespective of either the area of operation or size of the firm. Moreover, Tirbutt (2014) argues that while

some studies have found the effect to have a greater impact in a multinational organization, there are the

medium-sized organizations (SMEs) that show greater effects of benefits plans on both staff retention and

productivity.

2.3. Employee retention research

The current period represents the age when both the people and knowledge represents the greatest

asset that organizations have ever had. Majority of organizations continue to grapple with the challenges

of retaining the most-valuable assets and the continued exodus of most-talented people to other

competition organizations. Any staff that sees an opportunity in other competing organizations will have

no reason for remaining with the current organizations. Even with the prevailing rate of unemployment,

employers continue to grapple with the ever-increasing exodus and decreasing of skilled employees.

Garnefeld et al. (2009) illustrates that staff retention involves designing programs that allow

the workers to see the reason for opting to remain and work for the organizations. Workers made

decisions to work for the organizations with the objective of not only benefiting themselves, but also

contributing towards the benefits of the entire organization. Manager in SMEs and MNCs all continue to

have trouble of retaining a higher number of skilled employees. For example, the recent empirical study
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indicates that more that 40 percent of the retail sector now experiences a high level of attrition. Thus,

when it comes to retaining a pool of talented employees, Tohru (2014) outlines that manager’s design

and adopt different approaches that include relationship, support, growth, environment, and competition.

Despite the availability to a number of approaches, Tohru asserts that majority of organizational

managers turn to retention and motivation as the best strategies to keep their staffs. The effectiveness in

the retention practices works, in the same way, as the congenial working atmosphere in order to support

both the learning and training facilities.

Sustaining retention in any organization requires a lot of efforts resources and energy from the

organizational managers. A recent study conducted by Lo, Ghosh and Lafontaine (2011) revealed that

job stressors such as job complexity, task overload among others, forms the major factors that trigger the

psychological reaction chain into people’s state of mind and hence and see the need to leave their current

jobs. Because of this, the authors suggest that managers can design and adopt programs that reduce the

impact of the stressor among staffs and the need to quit their current positions. Furthermore, monitoring

the workloads and creating a healthy work environment by managers, may help to reduce the level of

stress among staffs and increased the level of satisfaction and commitment on their jobs ( Williams et al.

2008).

Schmidt (2011) illustrates in their journal articles that even for tasks that only require fewer

skills and knowledge on the part of staffs, managers need to come up with the most-elaborate retention

strategies that positively affect both the staffs and organizations. When a considerable number of

employees remain with the organization for only a limited number of years, this implies the presence of

problems that call on the managers to identify and design the most-appropriate solutions. Furthermore,

Schmidt (2011) supports above perspective by explaining that attracting and retaining highly talented

employees, remains significant strategies to achieve higher productivity for organizations. In specific, the

authors argue that financial and non-financial incentives play a key role when it comes to encouraging

staffs to stay and work for the organization for a limited period.
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2.4. Impact of reward management incentives on staff retention

Kirkland (2009) developed a model that contains the bonus payment to staffs (that measures and

determines the start employees’ contract period) in order to determine and form as one of the flexibility

tool for compensating staffs. Consequently, this corresponds to unpredictable both internal and external

labor market scenarios. According to the study report, the incomplete information that concerns the

marginal productivity of workers within the current job as well as the already competing offers of jobs,

tries to preclude the organizational manager and the staff from making a complete work contract. The

bonus advanced to staffs at the end of the pay period showed a positive correction with the performance

and value of workers within the current work as well as some of the available competing job offers.

Hence, the authors relate the role of incentive as well as the function of retentive to unconstructed

bonuses. More importantly, Kirkland conducted a test to the theoretical model using prime-age male

workers from the administration and management occupation. The findings revealed that designing and

advancing bonus payments to staffs play an important role as well as the dominant role in retaining

employees at the workplace. Furthermore, research report indicates that Kirkland viewed their study as

an examination of the impacts of bonus schemes in retaining employees in U.S labor market.

Apart from the foregoing study, Bryant and Allen (2013) also form part of the grounded

empirical study that relates to turnover for employees working in both sales and non-sales departments.

The study concluded that turnover in the sales force forms the most important and under-researched topic.

In addition, the researchers also developed a model to test the selected factors on the sales force turnover.

For instance, the article reveals that the authors used primary characteristics of employees and employee

attitudes concerning their jobs. In order to analyze the impact of behaviors and attitudes, the researchers

used the data from the task duration from the sales representatives of multinational corporations whose

cross-sectional data covered a period of ten years. The authors also used three different independent

variables from the demographic factors. The three factors included tenure (considered as the total time

undertaken by the employee to work in the firm up to the time of conducting the survey); education; and

the age of the sales agents. In addition, the research also included four other behavioral characteristics
 Research dissertation 16

including extrinsic job satisfaction, intrinsic job satisfaction, task-based self-esteem and supervisory

considerations.

Bryant and Allen (2013) hypothesized in their research article that the above-identified

independent variables (extrinsic job satisfaction, intrinsic job satisfaction, task-based self-esteem and

supervisory considerations) all showed positive impacts on the time taken by employees to work in the

organizations. While, on the other hand, education showed a negative correlation on the time taken by the

employees to work in the study organization. While considering the entire seven-study hypothesis, the

analysis findings showed that only two hypotheses including the age of employees and the tenure of sales

agents supported the statistical significance. Notably, the behavioral construct independent variables

showed very little ability to explain behaviors of employees in terms of their turnover. Consequently,

(2013) concluded that indeed, the sales force turnover might become important functional factors that are

external to the organization than the internal factors. While explaining the reasons behind such lower

outcomes, the researchers explain in their article that perhaps, aspects such as the general economic

scenarios and job opportunities available in the industry could limit the turnover for employees than other

attitude or job-related factors. Finally, they provided a recommendation that sales managers working in

any organization need to become more proactive when responding to some of the environmental

variability. In addition, they also suggested the need for managers to consider the need to design and

advance special bonus schemes and any other forms of incentives to key salespersons. Finally, Bryant

and Allen (2013) highlighted in their research journal, the need for other researchers to come up with

creative approaches for examining the impacts of reward management as incentives towards retention of

employees. For instance, the authors indicated that further researchers have the opportunity of researching

into understanding the impact of reward management schemes as incentives to staff retentions.

According to the analysis findings of Cone (2014), the current research study assumes that the

existence of reward management scheme as an incentive will enhance the retention level for staffs

working in the two companies including Huawei and Haier as the two Chinese Multinationals
 Research dissertation 17

corporations in the UK. In effect, the current research study also expects that the reward scheme will

serve as a flexible incentive instruments for compensating employees. More importantly, they will make

employees respond successfully towards unpredictable internal and external events in the labor markets.

In essence, the current study posits that:

Hypothesis 1: organizations that design and advance reward management as incentives to staffs as part

of their compensation structures will show significant higher retention than organization without

reward management incentives in the compensation structures.

Additionally, Bryant and Allen (2013) post that the turnover of sales representatives might depend on

the entire economic conditions and other related job opportunities and not attitudinal or job factors.

Sought to investigate the function of variable that serves as the major indicators for attracting staffs

towards alternative job opportunities. In essence, such alternative opportunities would include incentive

compensations relative to other industry average. The above foundation leads us to hypothesize that:

Hypothesis 2: organizations that offer incentive compensations greater or less than the industry average

will reflect a significant lower or greater turnover than the organization offering the total

incentive compensations which seem relatively lower (greater) than the industry average

In addition, the current research study examines the impact of other few variables on staff turnover. Such

variables include trainings provided on sales representatives, the prevalence of some of the non-financial

instruments, the length in the selling cycle, and other demographic aspects. In terms of sales training, the

current research study posits that it will encourage employees to stay (retention) with the organization

(Oladapo, 2014). More importantly, the study expects that such training scheme will affect staffs in two

different ways. The first effect is that training program will have an effect of increasing staff knowledge

and hence, increase their performance and satisfaction. The second effect of training is that it will

contribute towards higher levels of organization specific assets. It is from the higher levels of specific

organizational assets that create both psychological and economic barriers to shifting and switching

between organizations. The contrary perception of this is that trainings offered to staff tend to enhance
 Research dissertation 18

staffs ability to sell more products and services. Consequently, this will make staffs more attractive to

other organizations that contribute towards increased turnover.

The organizational managers adopt several non-financial motivational approached in order to

encourage and offer support to their employees. Some of the example of approaches that involve non-

financial tools includes making telephone calls to make recommendations, offering honorary job titles,

giving distinguished employee sales awards, and ensuring that managers publish their results. the

research project expects to find the revelation that non-financial motivational tools have a positive

correlation with the employee retention impact.

Finally, while focusing on the turnover model, Stewart (2014) suggests that it always

mandatory and customary to include other demographic variables such as respondents’ education and age

levels. The reason for including the two variables is that they help in determining decision-making criteria

for employees. For example, some of the grounded empirical research studies in labor and marketing

economics reveal that voluntary changes on the job tend to decline with the level of age ( Singh &

Selvarajan, 2013). While, on the other hand, the impact that comes with the level of employee

education, remain complex. For instance. Hence, organizations end up experiencing high levels of

turnover. Studies have also found that higher levels of education achieved by the workers might also

make employees see the need to stay longer and work for the organization. Furthermore, high level of

education obtained by employees might also correlate with other variables including the psychological

job-switching costs and hence, end up influencing positive performance by employees. For example, the

recent quantitative research study conducted by Stewart (2014) revealed that the education had a

positive influence on a sample of workers interviewed while during their entry level. However, the

current research study sought to follow the first two previous studies. The objective for adopting a model

for the two research studies is because of the way they developed their hypothesis by using the context of

employees. Furthermore, the researchers also posit in their studies showed that the employee educational

levels had a positive impact on the level of employee retention.

 Research dissertation 19

2.5. Impact of incentive on staff performance

Kim, Gong and Sutton (2013) describes in their journal article that any individual can get

extrinsically motivated in cases when an individual meets all the needs using monetary rewards. In

essence, the authors describe performance-based pay to be ideal incentive that motivates employees

extrinsically. However, the authors blamed the failed for failure of having such long-term effects on

employees. While describing on ways that employers need to motivate their employees, the authors

describe the money as most incentive that employers use as a goal to satisfy their employees. For

instance, Kim et al. (2013) explains that employees gain a constant involvement in the social exchange

programs where they can contribute in the efforts of designing the most-appropriate exchange rewards.

Furthermore, employees also prefer making comparisons of their efforts and contributions to the

organization by accomplishing some tasks. It is from such aspects that employees begin to acquire

rewards as a form of exchange for their performance. Shaw, Gupta and Delery (2002) perceive that in

cases where employees begin to succeed in their performance, it even becomes easier for organizations to

create their reward schemes. The purpose for designing rewards as staff incentives is to act as a motivator

for employees to perform better and give positive results.

Ho et al. (2009) observes that when organizational managers design and implement effect

reward incentives, this contributes towards the creation of favorable working environment that motivates

employees. Furthermore, the article asserts that this does not only motivate employees but that employees

will also start to feel the need to improve their performance. In most cases, for example, employees

recognize the feeling of their appreciation and value as the primary contributor for boosting their morale,

which as a result, leads towards more productivity. According to Ho et al., reward as an incentive, forms

one of the most determinants when it comes to the realization of significant performance in organizational

staff performance. The analysis findings conducted by the researchers revealed that rewards had a

positive correlation with the level of motivation for employees. Kim et al. (2013) emphasizes on the role

played by reward management scheme in combating burnout. Majority of staffs tend to experience this

while serving in their different positions. Staffs that experience high levels of burnout are those likely to
 Research dissertation 20

feel low level of fulfillment. Furthermore, such staffs also tend to develop and show negative outlooks,

approach the given responsibilities with fewer dedications and vigor. According to Whitt (that adopt on

poor remunerations for their staffs have also shown how such rewards relate with the profit levels. For

instance, the analysis findings revealed that the wage differentials between the staffs earning high income

and those earning low-income levels resulted to low morale, failure for staffs to gain commitment and

low instance of productivity. The empirical research study conducted by Shaw et al. (2012) also

supports above findings by showing a statistical significance in showing a positive relationship between

staff reward and recognition. Furthermore, the analysis findings also showed a stronger association

between staff motivation and satisfaction. For instance, the authors explain that in case the organizational

managers altered on their recognition or reward schemes, this would contribute towards corresponding

changes in both satisfaction and work motivation. The research conducted by the authors targeted 35

stores of multination companies over a period of three 20 months. The theoretical analysis findings

predict that the majority of organizational stores that designed and implemented on reward management,

as incentives were likely to record high volume of sales, increase their profitability levels and customer

satisfaction. Furthermore, a recent study conducted by Whitt (2006) on more than 800 manufacturing

companies, found that companies that had implemented on profit sharing plans recorded higher

productivities.

It is important to note that organizational managers cannot overemphasize the role of reward as

an incentive scheme when it comes to rewarding staffs after accomplishing their jobs. It is a well-known

aspect that in order to motivate employees, managers need to design some of the programs that not only

encourages employees, but that schemes provide staffs with the feelings that, they belong to the entire

organization. Kirkland (2009) examined the importance of different reward schemes and staff

performance. In order to test on the above aspect, the authors collected primary data from the company

operating in Nigeria. Analysis of data showed that companies in Nigeria and mainly those operating in

Oyo state adopted on different rewards as incentives to their staffs. Furthermore, the findings also
 Research dissertation 21

revealed a positive correlation between motivations of staffs through performance based benefits and

overall productivity. For instance, the findings showed that reward strategies such as praises, recognition,

performance bonuses, and pay, all forms the most-important tools for managers to motivate their workers

and increase productivity. Above study presents the understanding that while rewards matter at the

workplace, it should remain a concern for both employees and employers to learn how to manage such

programs.

Hypothesis 3: organizations that offer incentive compensations will reflect a significant productivity than

organizations offering lower incentive compensations

Fringe Benefits and staff retention

Fringe benefits management schemes apply to the voluntary organization by managers. The

expenditure incurred by the organization while managing fringe benefits contribute in retaining a

considerable number of staffs through increased job satisfaction. for example, managers offer fringe

benefits to their employees through service offering such as care to children and elderly, food services,

workplace health services, travel, counseling services, recognition, insurance and medical benefit, job

security, opportunity to learn new things, and better working conditions. The more the manager offers

above fringe benefits, the more the staffs gain job satisfaction and increases the rate of retention at the

workplace. However, the costs that an organization incurs while managing the fringe benefits, would

apply to bureaucratic cost. More importantly, the purpose for management to adopt fringe benefits at the

workplace, involves ensuring that organization retains the highest number of employees that contribute

towards the reduction of market arrangement costs. In addition, management also manages fringe benefits

go towards only members of the organization. The above implies that staffs will be in a position to

balance the utility of fringe benefits or job separation when making decision to leave the workplace or

stay with the organization. Hence, more fringe benefits adopted by the organization will increase the

utility for staffs to stay with the organization. We can apply the above discussion to hypothesize that:

Hypothesis 4a: the incidence of increasing fringe benefits at the workplace, relates positively to

employee retention rate

 Research dissertation 22

Hypothesis 4b: the average amount paid by management as fringe benefits, relates positively with staff

retention rate
 Research dissertation 23

3. CHAPTER THREE: METHODOLOGY

3.1. Shaping of Research Process

The current research project acknowledges the need to shape the entire research process

by applying the most-appropriate models. More importantly, the current research study depended

on the methodology and operationalization of variables in order to determine reliable conclusions

that can justify the impact of reward management as an incentive for staff retention and

organizational productivity among multinationals in the UK. As explained in the foregoing

sections, is that the current project focused on using strategies adopted by Chinese HRM towards

compensation and rewards at Huawei and Haier as two case study companies operating in UK.

The current research project adopted Onion model applied by Ali and Ahmed (2009) while

examining issues of customer perceptions of Nokia products in the market. According to the

author, the Onion model shown in figure 1 below provides the researcher with a clear direction

concerning the manner to address the research questions and come up with the decisive findings

as the solution to issues under study.

Figure 1: Onion Model showing the research process

 Research dissertation 24

Source: Saunders et al. (2009)

Other recent professionals that have applied the model contend that the model allows

researchers to collect relevant information. Consequently, researchers can use findings to

understand the problem under study (Anderson, 2013; Biggam, 2011). As illustrated in the

above model, the current project used the model while defining the research methodology under

the rest of the sections.

3.2. Research philosophy

Brown (2006) explained in his book that positivism and hermeneutic represents the two

research philosophies. While differentiating the two approaches, the author explains that

positivism approach starts from a scientific point of view that allows the researchers apply their

subjective definitions to several actions to undertake. While, on the other hand, the hermeneutic
 Research dissertation 25

approach of the research study begins from the foundation of human science. The nature of the

current research study led to the application of the latter approach in order to provide an

understanding of different phenomenon using qualitative data. The approach contradicts with the

positivistic approach that in most cases, applies quantitative empirical data in order to show the

relationship between variables. The choice for selecting on hermeneutic approach depended on

what Brown explains as the foundation of research questions and the way of designing the

questionnaire. The choice for using qualitative data in the current research project was to help

explain the impact of reward management as an incentive towards staffs retention and

organizational productivity.

3.3. Research approach

Brown (2006) categorizes research approach into two different categories: inductive and

deductive approaches. According to the author, researchers adopt the latter approach when they

want to test different theories that relate to the problem under study. Consequently, the approach

allows professionals to come up with useful application of the theory to their problems. While,

on the other hand, Bryman and Bell (2011) explain in relation to the inductive approach refers to

the formulation of different hypothesis to solve the problem. As explained above, the current

research study adopted inductive approach applied by Dawson (2007) while studying the impact

of product brands on customers. For example, a research project applied the responses given by

the target respondents to explain most of the related issues. Furthermore, the study did this

without testing the importance of the solution given in the research. As a way of following all the

responses provided by the respondents, it became easier for the research to find issues that

resonate around employee retention and organizational productivity. In addition, the current

study also applied the research process to interpret the problem and come up with the decisive

findings.
 Research dissertation 26

3.4. Research strategy

Research strategy remains one of the most-essential tools in providing researchers with a

platform to collect relevant information. Bryman and Bell (2011) posts that strategies depend on

research approaches and philosophy. The quality in the findings obtained after analyzing the

overall data depends on the strategy for collecting the data. The current research study adopted

the use of the questionnaire instrument as the most-appropriate tool for collecting primary data

from the respondents. Furthermore, (Bryman and Bell (2011) explain that the use of the survey

instrument allows researchers with the option of collecting Likert level and categorical responses

from the responses to measure variances and impacts of variables.

The researcher designed the questionnaire instrument to consist of three different

sections. The first section focused on asking the respondents to provide responses that relate to

their basic information such as sexual orientation, their current age, the education level, and the

years worked in the organization. The design of the questionnaire in the section second focused

on asking the respondent's questions that relate to the reward management at the organization.

For example, the question asked the respondents to identify several numbers of rewards in the

list of 13 items. The 13 items consisted on different examples of reward management incentives

such as better pay, performance bonus, recognition, praise, insurance and medical benefits, job

security, better-working condition, and performance appraisal among others. Secondly, the

second section also asked the respondents to say whether the organization was managing the

reward incentives in the rightful manner. In so doing, the question requested the respondents to

select among the five categorical scales with 1 representing strongly disagree while 5

representing strongly agree. The other questions involved asking the respondents to state the

level at which they agreed whether the reward management scheme implemented by the

company matched their efforts while working for the organization.

 Research dissertation 27

The third section of the questionnaire instrument asked the respondents to state whether

they were satisfied with the different types of reward management incentives adopted offered by

their managers. In order to answer this question, the design of the questionnaire included

categorical likert scales with 1 showing strongly disagrees and 5 showing strongly agree.

Similarly, the section also asked the respondents to state using the same number of Likert scales,

whether the reward management an incentive offered by the management affected their long stay

at the company. The third- and last part of the questionnaire design focused on collecting

information concerning respondent opinion and productivity of the organization.

3.5. Ethical considerations

The researcher used two research assistants to assist in the identification of particular

respondents from both Huawei and Haier to participate in the collection of data. In so doing, the

research assistants helped identify and get the respondents to give their consent concerning the

need to provide their responses to the questionnaires. However, before consenting to the study,

the research assists ensued the respondents understand that all the findings will remain

confidential without sharing with any third party. In addition, the research assists explained to

the respondents by reading the questionnaire whose objective was to explain that the study would

use the findings for educations purposes only.

In addition, the research study collected the primary data from the respondents by

avoiding the aspect of collecting personal information. For example, the researcher designed the

questionnaires met the issue of anonymity by failing to allow the respondents fill their names.

Nevertheless, the researcher used the coded to identify individual respondents. The researcher

also subdivided the questionnaires into two different groups. The first group consisted of 45

percent of the questionnaires administered by the research assistants. While the second group

consisted of 55 questionnaires emailed through the respondent's email accounts. Even though the
 Research dissertation 28

respondents could not give their verbal consents as those used by the research assistants, the

researcher emailed a letter to the respondents by outlining the objective of the study, the

procedure use while answering the questions and understanding their rites concerning research

areas.

3.6. Rigor
The process explains several procedures used in order to achieve various components

including credibility, transferability, conformity and even dependability. More importantly, the

study employed all the outlined components to optimize the aspect of trustworthiness in data

analysis. For example, when it comes to the aspect of credibility, the current research study

conducted both pilot study and final study by targeting the respondents from the two case studies

in UK. Secondly, the researcher also designed the questionnaire instruments by incorporating

structured and semi-structured questions. Instead of allowing the respondents to give their

opinions, the researcher used the above method to allow the respondents verify a number of

statements that applied to them. The current research study also met the aspect of dependability

by using similar and uniformity in coding. For instance, the researcher created majority of the

questions by using categorical Likert scales on the range of 1 to 5. Such a method provided the

most-effective approach of coding qualitative data. The study measured the aspect of

transferability by describing the data collection and sampling strategy in a more detailed manner.

The last component refers to conformity. As discussed in the foregoing section, the current

research study treated all the responses provided by the respondents with confidentiality. In

addition, the analysis procedure involved recording all the code schemes and verifying all the

findings through the raw data entered in the SPSS (Statistical package for Social sciences)
 Research dissertation 29

3.7. Variable operationalization

The current research paper selected dependent variable as the average length of time by

staff while working in the case study. The average length of time relates directly to the studied

phenomenon for staff retention. Such a measure should become superior to other turnover

measure collected within the current survey. For instance, the current research study used the

turnover rate of 2013 as the key dependent variable. While applying this measure, however, its

effect in using the turnover for a period of one year may fail to become an indicative for an

overall turnover within a certain organization. Therefore, the current research study selected an

average length of time undertaken by staff while working in two case studies as the dependent

variable. According to the dataset collected from the staffs of the two companies that operate in

UK, the average length of employees while working in the two organizations as the case studies

reveals a mean of 6.53 years and a standard deviation of 5.23 years. Hence, this implies the need

for variation in the depended variable used in the current research study.

Staff retention = Number of staffs that left/Total number of employed staffs

The staff reward incentives form part examination of antecedents of staffs’ retention rate

as indicated in the current research study. According to the data collected from the staffs working

in the two case studies, the independent variables included better pay, performance bonus,

performance appraisals, reward, and fringe benefits.

Secondly, the current research study also utilized to use both subjective and objective

productivity measures as the dependent variable. The research study included the two measures

of organizational performance to play a key role of leveraging the advantages and ensuring that

they mitigate any form of pitfall that arises from the utilization of productivity of one

organization. The objective measures adopted in the current research study contain more

information concerning organizational productivity. However, the above measures fail to reflect
 Research dissertation 30

the long-term value for the organization. While other previous studies have relied on measures

such as market-based organization productivity Ali and Ahmed (2009), the current research

study applied the data limited to accounting measures only. Therefore, the objective accounting

measures included in the current research study included the gross margin for individual staff

and net income earned by an individual for the period of December 2013. Moreover, when the

research study considered objective organizational productivity as the dependent variable, the

number of respondents targeted in the two case studies reduced to 479. From this number, 48.1

percent of the respondents came from the staff functions including strategic planning, financial

management and HR management. 13.4 percent of the respondents came from the marketing

department, 16 percent of the respondents came from the research and development department.

Furthermore, the analysis findings also revealed that 98 percent of the respondents were of men

and 87.8 percent of the respondents had attained bachelor’s degree in their educational level.

Although the new model shows reduction in the number of sample size and changes in the

characteristics of respondents, the average number of respondents that came from the two case

studies remained the same.

While subjective measures concerns organizational productivity, which remained

susceptible towards the discretion of managers. More importantly, the subjective variables in the

current research study captured values concerning intangible organization resources.

Furthermore, the current research study also measured the subjective organizational productivity

as one way of offsetting the possibility for productivity shortcomings. For instance, the

subjective organizational productivity measures depended on managers within the strategic and

planning departments. The studies rated the level at which productivity exceeded productivity of

competitors in areas such as brand equity; customer retention; economic sales; customer service;
 Research dissertation 31

development of new products and services; market development, product and service quality;

and processes and procedures.

In addition, the current research study also operationalized the independent variable in

terms of the presence or absence of the reward management as an incentive in the two case

studies operating in UK. According to the questionnaire instrument, the current research asked

the respondents to select as many as possible, the example, of reward schemes adopted by

management in their organizations. for instance, the sample of organizations used in the current

research study, designed and implemented on one or more of reward management as incentives

in terms. The current study identified (i) better pay, (ii) performance bonus, (iii) recognition, (iv)

praise, (v) insurance and medical benefit, (vi) job security, (vii) better working conditions, (viii)

performance appraisals, (ix) proper induction program, (x) flexible working hours, (xi)

promotion policy, (xii) opportunity to learn new things, and (xiii) reward and fringe benefits. In a

way to come up with a meaningful analysis, the current research study only considered reward

management of (i), (ii), (viii), and (xiii) as aspects that incorporate rewards as incentive

structures.

When it comes to other structures such as recognition, insurance and medical benefits

among others, the current research study asserts that organizational managers implement on them

in order to motivate employees to work better and record higher productivity levels.

Nevertheless, the data collected from the respondents using questionnaire instruments provides

other benefits offered to staff. Majorly, these represent non-financial benefits advanced staffs as

motivational tools to make them give a positive performance. According to 13 items outlined

above, the current research study identified 9 non-financial tools adopted by management as

motivators to staffs.
 Research dissertation 32

The demographic variables in the operationalization process were straightforward. For

example, question instrument collected necessary information concerning the respondents in

terms of sex, age, income, education level. The income level represents a continuous variable

while education is a categorical variable. As indicated in the prior operationalization of

variables, the current research study conducted an analysis using aggregate level. Therefore,

while it is imperative to consider the factors that impact on staff retention at a staff level, the

empirical testing conducted in the current study focused on the level of organization.

3.8. Control variables

Apart from the dependent and independent variables, the current research study also

included three different control variables including the organizational size, years of operation for

the organization, and the average level of educational attainment for staffs. The current study

adopted Joseph and Kalwani (2000) perceptions of measuring the size of the organization by

considering the number of employees. Secondly, the organization average educational level of

staffs represents the transformed index. For example, the current research study calculated the

average educational level of staffs by adopting the formula used by Ali and Ahmed (2009). Ali

and Ahmed explain in their journal article that the calculation depends on the weights of each

category then multiplied by the number of workers found in the individual classification after

which, we sum the total. Furthermore, in order to standardize the size of organization, the author

recommends that we also need to divide the index value by the organization size.

3.9. Model specification

As discussed above, the independent variable will consist of better pay, performance

bonus, performance appraisals, reward, and fringe benefits. Hence, the current model research

paper examined two model including the productivity model and inducement model. On the one

hand, the inducement model examined the impact of staff retention and organizational
 Research dissertation 33

productivity with or without the reward management as incentives. While, on the other hand, the

investment model studied the effect of reward management as an incentive on staff retention.

Model 1: the inducement model measures the retention rate for staffs

Retention rate = f (Control variables, BP, PB, PA, FB)

Where the control variables includes the size of organization, average education attainment for

staffs, the number of employees

BP = Better Pay; with (BP = 1); without (BP = 0)

PB = performance bonus; with (PB = 1); without (PB = 0)

PA = performance appraisals; with (PA = 1); without (PA = 0)

FB = Fringe Benefits; with (FB = 1); without (FB = 0)

Module 2: Productivity model

Productivity model = f (Control variables, ABP, APB, APA, AFB)

 Research dissertation 34

4. CHAPTER FOUR: DATA COLLECTION AND FINDINGS

4.1. Data collection

The current research project focused on collecting primary and secondary qualitative

data. The study collected the data for a period of three months starting the month of June to

August of 2014 through questionnaire instruments. More importantly, the data collected through

the survey, helped to generate vital database contained information about HR reward

management by the two company case studies, retention, and organizational performance.

The researcher reviewed literature before the design and using the questionnaire

instrument, to evaluate the construct validity of various items. In addition, the researcher also did

this in order to validate and verify the reliability of various items utilized in the survey

instrument. Furthermore, the researcher also conducted a pre-test of the questionnaire on the

manager of two case study MNCs operating in UK.; the researcher contacted the managers in

order to share the research objectives and invite the target staffs as respondents to participate in

the data collection process. The researcher also employed two research assistants to use several

methods in order to administer current surveys such as personal interviews to managers, and

paper-pencil questionnaires as one way of increasing the response rate (Saunders, Lewis &

Thornhill, 2012).

The research assistants collected an original sample from the two companies including

Huawei and Haier in UK with total staffs of more than 100 staffs. All the two case studies

specialize in manufacturing and distribution of communication products. Furthermore, the two

case studies also varied in terms of the number of staffs. For instance, despite Huawei operating

in several global countries and employing several staffs, the company employs 2500 employees

that work in its UK subsidiary. While on the other hand, Haier in UK now has approximately

1500 staffs working in UK subsidiary. Therefore, it is imperative to see that the original sample
 Research dissertation 35

remained an effective representative of two case studies and functional areas of the two

companies (Anderson, 2013). The number of staffs used in the original sample consisted of 500.

In addition, the research assistants also identified the staffs to belong to different departments

including administration, management, operation, project, service, customer care among others.

Organizations that have less than 100 staffs fail to implement on a systematic and

organized HR reward management systems, policies and practices. From the two organizations

included in the case study, the study included multiple numbers of respondents in order to assist

in mitigating the validity and reliability of different issues that tend to arise in any single-

respondent survey (Saunders et al. 2012). In essence, the current research project sought to test

on the research model concerning individual employee perception of reward management as

incentive program towards staff retention of productivity.

According to the current research study, 58.8 percent noted to be working in the

functional departments such as strategic planning, financial management and HR management.

23.8 percent of the respondents indicated that they were working in the marketing department,

16.1 percent were working in the research and development department while 1.3 percent of the

respondents stated that they were working in the project management departments. Furthermore,

the basic information provided in section one of the questionnaire focused on collecting

demographic characteristics of respondents. For instance, the basic information included

descriptive information on their sex, average age, average earning, the educational level, the

nature of employment and the volume of sales. The results showed different percentage

frequency scores. The sample showed that 87 percent of respondents were men all of then stating

that they were in their fill employment. The descriptive analysis for job positions showed that

76.3% of respondents were working in their managerial positions while, on the other hand, 23.7
 Research dissertation 36

percent of the respondents were from the non-managerial positions. In terms of the basic salary,

the analysis findings showed that the majority of the employees earned an average of US32, 112

with 82.6 percent of the respondents saying they had beyond bachelor’s degree in their level of

education.

4.2. Findings
The current section of the research dissertation presents the findings from the primary

data collected through questionnaire instrument. The first analysis test refers to Chow test that

plays a key of examining the consistency in the pooling of data sets covering the two years from

2002 to 2003 into one figure. The analysis results for model 1 one focused on the inducement

model whose analysis findings shows the correlation coefficients among control variables,

dependent variables and independent variables. The correlation table 1 below depicts that staff

retention rate related positively to a statistical significance (p<0.01) with the variables including

the better pay (BP), the seniority of staffs in their management levels (SEN), the performance

bonus (PB), the performance appraisals (PA) and fringe benefits (FB). While, on the other hand,

the analysis findings reveals that retention rate variable shows a negative relationship with

average performance bonus (APB) and Average performance appraisal (APA) at a significant

level of P<0.01. Furthermore, the retention rate also showed a positive significant correlation

with the staff education level at P<0.01

 Research dissertation 37

4.3. Empirical model findings

The current research applied hierarchical ordinary least squares (OLS) regression analysis

as the appropriate and effective way of testing the above hypotheses. all the control variables in

the controlled model such as the organization size, the average education attainment of staffs and

the years of operation, showed statistical significance (F = 1923.07, P<0.01, adj-R2 = 0.69).

Furthermore, the control variables all showed non-collinear with the level of tolerance being less

than 0.1. The organizational size revealed a score of (b = -0.46, and p<0.01) and the average

achievement education for staffs (b = 0.08, and p<0.01) all remained statistically significant.
 Research dissertation 38

Table 2 above presents the analysis findings that focus on the two models: inducement

and productivity model. For instance, the analysis findings for the inducement model showed the

following measures (F = 1217.6, P<0.01, adjusted R2 = 0.702). While, on the other hand, the

productivity model gave the following analysis findings (F =1,213.8, P<0.01, and adjusted

R2=0.701). All the analysis for the two models shows statistical significance. Furthermore,

according to table 2 above, the analysis findings reveal that all the four independent variables

including better pay, performance bonus, fringe benefits, and performance appraisal showed

positive correlations with the dependent variable retention at a statistical significance level of

(P<0.01). All these positive correlations support the three hypotheses 1, 2 and four. In addition

to above analysis findings, table 2 above also reveals that the average amount of money
 Research dissertation 39

contributed by the employers towards better pay, performance bonus, performance appraisal and

fringe benefits are also statistically significant at the level of (P<0.01). Hence, the results also

provide support to the above hypotheses on the impacts of reward management towards staff

retention.

In addition, table 3 above shows the regression analysis for the inducement model whose

findings indicates significant differences between the larger and smaller organizational sizes (F

= 87.2, and p<0.01). Hence, the current research study conducted a manipulation of results that

concerned the separate regression of table 4 above. On the one hand, the analysis findings

presented in the above table reveals that the smaller organization showed statistical significance

for performance appraisal at p<0.01with an impact of 0.149. The report findings showed
 Research dissertation 40

positive statistical significance (p<0.01) for independent variables along firm size of the larger

organization for instance, the findings showed that presence of better pay had an effect of 0.052,

performance appraisal with a positive effect of 0.110, fringe benefit with an effect of 0.058, and

performance bonus of 0.081. When we compare this with standardized regression coefficient,

the analysis findings reveal that the beta, for a smaller organization gave (b = 0.15, and p<0.01)

relatively larger than the larger organization at (b = 0.12, and p<0.01). In addition, the effect of

the performance appraisal fund towards staff retention remains only significant towards the large

organization. Such analysis findings show that unlike the smaller organizations, the larger

organizations always have enough resources that enable them to utilize the staff retention

incentives and reduce the possible costs of market arrangements such as the transaction costs.

The Chow test for F value reflects (F = 24.96, and p<0.01) support the model through

higher and lower staffs’ average education attainment as statistically different. More

interestingly, the analysis findings reveal that better pay, performance bonus and performance

appraisal for the two groups concerning the education attainment in smaller and larger

organizations have a positive statistical significance at (p<0.01). We can compare the above

findings with the standard regression coefficients. The positive impacts that come from the fringe

benefits within the firms whose staff’s higher average education remain greater than the firms

that have staffs whose attainment of average education is relatively lower. More importantly, the

impact of fringe benefits in increasing the level of retention for staffs, play a key role among the

organizations whose staffs attain lower education status.

In addition, the findings presented in table three above reveals that performance

appraisal (PA) among the organizations whose staffs attain relatively higher educational status

resulted towards a considerable number of staffs remaining within the organization than the
 Research dissertation 41

smaller organization whose staffs attained smaller average educational status. We can explain

these impacts using the perspective of an employee. For example, staffs with relatively higher

educational status, have a higher chance of securing for more job opportunities with other

organizations. hence, this implies that quitting from their current organizations, not only

contributes towards making an organization to experience higher expenses in terms of

unemployment but that it also leads towards making managers undergo higher costs in

performance appraisal. Otherwise, we can as well assert that when it comes to organizational

managers offering performance appraisal, it might function as a sign of organizational advance.

Consequently, the organizational managers that apply this procedure are likely to retain a

considerable number of staffs especially, when it comes to organizational that have relatively

higher workforces of human capital. As expected, is that Table 3 above reveals that performance

showed a positive correlation with statistical significance level within the firm whose staffs had

achieved higher average educational status. More importantly, the positive impacts arising from

the statistical significance are also present within the organization that had staffs with the lower

achievement of an average education. The above scenario explains that in most cases,

organizations that that majority of its staffs attaining lower average education are likely to

experience stiff competition from the firms that have staffs with relatively higher attainment of

average education. Furthermore, the educational status represents a simple of knowledge, ability

and skills for organizations. Hence, organizational managers adopt to use performance appraisals

as a mean of incentive that encourages their staffs with have higher average educational status, to

stay for a considerable period working for the organization.

4.4. The analysis findings for productivity model

The regression analysis for the productivity model differs significantly across the smaller

firm size and larger firm size. The Chow test conducted on the productivity model showed
 Research dissertation 42

revealed (F=56.98, and p<0.01). Hence, the current research study conducted an individual

regression analysis to show the impact of paying for a reward as incentives towards by

management from the two case studies towards organizational productivity levels. For example,

table 4 below shows all the findings that relate to such impacts. Furthermore, the analysis

conducted in the table below treated organizational productivity as the dependent variable while

the amount paid by management towards the better pay, performance bonus, performance

appraisal and fringe benefits as the four different independent variables. Besides, the model also

treated firm size and educational attainment as two different control variables. according to the

analysis findings below, the results show that the reward management as incentives in terms of

the amount paid to all the four independent variables, became major predictors towards

performance (F=690.1, P<0.01, and adjusted R2=0.71). On the one hand, the impacts of the

reward management scheme towards the smaller organization, the findings revealed that the

predictor variables explained variance in staff productivity by 71.4%. The impact of reward

management scheme on larger firm showed that predictor variable explained variances in the

staff productivity by 75.2%. Nevertheless, the analysis findings revealed that all the predictor

variables showed positive significant (p<0.01, 0.05) contribution towards the productivity of the

smaller and larger organizations.

Despite motivating staffs to record higher productivity, the findings revealed that the

reward management as incentives had a different degree of motivation. For instance, the amount

provided by the organization towards performance appraisal had a greater positive impact of

0.145 for the smaller organization and 0.111 for the larger organization. The amount contributed

by the employer towards fringe benefits showed a positive statistical significance (p<0.01) on a

small organization by 0.02. Although similar predictor had a positive impact in the productivity
 Research dissertation 43

of a larger organization by 0.03, the impact was only at the level of (p<0.10). The other major

contributors towards productivity of the organization included the amount contributed by

employers towards performance bonus at 0.072 and 0.009 on the larger and smaller

organizations respectively. Lastly, the findings revealed that while the contribution of the amount

made by the employer towards the better pay had low impact on the productivity of the smaller

firm at 0.008, the impact was greater on the productivity of a larger organization with 0.525.

In addition, the research study extended the analysis to include the firm employees’

average education attainment as another control variable. According to the findings provided in

Table 4 below, the results reveal that all the four amount of contributions made by the employers

showed positive statistical significant at (p<0.01) productivity of organizations but with different

scales. More importantly, the study controlled for the employees that had attained lower average

educational level and those that had attained relatively higher educational level. For example,

controlling for education level showed that better pay had a greater impact towards those that

had attained higher average educational status at 0.236 than those that had attained relatively

lower average education at 0.0934. The second significant contribution in the amount made by

the employer was that of performance appraisal. According the findings, the results in Table 4

below shows that performance appraisal for staffs that had attained average higher education

recorded an impact of 0.145 and 0.101 for those with a lower average education. Furthermore,

the amount of the contribution made by the employers towards performance bonus, had an

impact of increasing productivity among those that had attained higher average education status

by 0.053 and 0.057 among those that had attained relatively lower educational status. Although

the contribution made by the employers towards fringe benefits had positive significance towards

performance, the analysis findings revealed that that had the least contribution. For example,
 Research dissertation 44

Table 4 below shows that fringe benefit made a greater contribution among those that had

attained lower educational status at 0.053 than those that had attained higher educational status at

0.045.
 Research dissertation 45

5. CHAPTER FIVE: ANALYSIS AND DISCUSSION

5.1. The impact of reward management on staff retention

The current research study started by analyzing the Chow test. In so doing, the study

wanted to examine the consistency by pooling the data sets that covered two-year period into one

figure. Furthermore, the analysis also concerning correlating the variables in the model in order

to show the correlation among dependent retention variable, control variables and independent

reward variables. According to the independent variables, the current research study focused on

four-reward management as incentives including better pay, performance bonus, performance

appraisal and fringe benefits. In so doing, the current research paper adopted Krell (2011) model

by categorizing rewards into financial and non-financial benefits. According to the author,

financial rewards form part of the extrinsic rewards advanced by employers to their staffs in

terms of money aspects. On the one hand, the analysis classified the three rewards such as better

pay, performance appraisal, and performance bonuses at extrinsic rewards. While, on the other

hand, the current study classified all non-financial rewards such as recognition, praise, insurance

and medical benefits, job security, better working conditions, proper induction, flexible working

hours, promotion policy and opportunity to learn new things as intrinsic fringe benefits.

Furthermore, the model also consisted of the control variables in terms of firm size and average

level of educational attainment for staffs.

The analysis while analyzing the firm size, the current research study examined the

number of staffs employed to work in certain subsidiary. The above procedure supports Michael,

Duncan and Peter (2011); Lee, Hsu and Lien (2006) procedure who while examining the impacts

of benefits plans on employee's turnover, treated the size of different firms within Taiwanese

manufacturing industry as the number of participants in the individual organization, usually the

number of employees. Furthermore, the study conducted by Kim et al. (2013) on the impact of
 Research dissertation 46

pay for performance plan towards firm performance, considered the size of the firm by referring

to the number of employees.

The hypotheses testing findings presented in the current paper, resulted in the in the

support of statistical significance. For instance, the average achievement of educational status by

the workers working in the two case studies showed a positive relationship with the staff

retention. However, the results showed that the impact is smaller for firms that have relatively

higher staffs with higher attainment of education. We can explain this scenario by using

resource-based theory. For example, according to Dess and Shaw (2001), is that higher human

capital inventory playing a key role when managers want to retain a relatively higher number of

staffs. Furthermore, the author theorizes that larger sized organizations enjoy the benefits of

abundant capacity and capability in order to implement on several practices that encourage staffs

to remain with the organization for a considerable number of years. Furthermore, the author

explains in the theory that when managers remain more staffs, this also helps to reduce of the

separation gap among staffs. in addition, Michael, Duncan and Peter (2011) reiterates using

human capital theory that staffs that have higher levels of educational attainment are likely to

experience higher level of separation. Furthermore, we could explain this perspective using

social capital theory. For example, Lee et al. (2006) explains that staffs’ level of shared trust and

collective orientation remains useful in the realization of resources that reflect the social

characteristics and relations in organizations.

The above foundation implies that organizational managers use several components when

they want to create knowledge among staffs and retain them within organizations. For instance,

the greater the value that HRM embed in their human capital, then the greater the aspect of

creating intelligence. Michael et al. (2011) illustrates in their journal articles that staffs develop
 Research dissertation 47

their knowledge through social interaction. Organizational gain in terms of increasing returns

when staffs start to experience social capital. According to the above discussion, the current

research paper points out that higher level of education attained by staffs, forms part of the social

capital and contributes towards the formation of human capital. Hence, the current research study

supports the theory that firm size relates positively with the staff retention. According to

resource-based theory, is that the larger the organization becomes in using its abundant resources

and capability, the higher the chance for staff staying longer in the organization.

In addition, the current research study draws several discussions. First, is that Huawei and

Haier as the case study implements on different reward management as incentives. Secondly, the

findings showed that the size of the firm determines nature of reward plans. More importantly,

the results from the current study showed that Huawei as one of the largest Chines multination

that operates in UK, has more staffs than Haier multinational company in UK. Hence, Huawei

implemented on more reward plans than Haier its counterpart. Furthermore, the average amount

of money contributed by the employers towards the reward plans, also increased with the size of

organization. The above example on the findings supports resource-based theory whose

interpretation indicates that organizations that have abundant resources are likely to allocate

more towards staff retention programs. Secondly, the empirical results indicate that organization

size correlates positively with the retention rate of staffs. The above also remains consistent with

the resource-based theory. The staff average attainment of educate showed a negative

relationship with the separation. Furthermore, higher organizations with inventory support this

perspective. Even though the social capital theory explains this view, the perspective is out of the

scope of the current study and leaves the theory to future research work.
 Research dissertation 48

Moreover, the impacts of financial and non-financial rewards showed positive significant

relation with the level of staff retention. More importantly, the financial rewards such as better

par, performance appraisal, and performance bonus, all showed a positive impact on the level of

staff retention across the two Huawei and Haier case studies. As expected from the first study

hypothesis, is that organizations that design and advances the reward management as an

incentive to its staffs will show a significant higher retention rate than organization without the

reward management incentives in the compensation structures. For example, the study findings

revealed when it comes to the impact of reward on a small organization, performance appraisal

showed a positive significant relationship towards retention of staffs. Failure in other financial

rewards including better pay and performance bonuses supported justification of H1 for

implementation of reward among larger organizations. For example, the analysis findings shown

in table 3 revealed that all the three financial rewards showed a positive significant relationship

with the retention rate in Huawei MNC than Haier Company.

The above findings support Dess and Shaw (2001) analysis of the impact of benefits

plans towards employee turnover. According to the author’s findings, is that the effect of

financial benefits advanced to employees showed a negative relationship with the turnover rate.

However, the findings also showed that the level of the negative impacts of such benefits could

not show it the study especially among the small-sized organizations. The fact that several

employees share the fringe benefits at the workplace, this might as well contribute by employers

to incur higher costs than the counterpart larger organizations. For instance, Sayım (2010)

explain that when it comes to smaller organizations, the internal management of such costs tends

to become higher than the market arrangements. The above discussion supports transactional

cost theory that demonstrates the approach undertaken by HRM to combine both optimism and
 Research dissertation 49

bounded rationality. In addition, Sayım (2010) explains using the theory that the rationality for

the adoption of HR practice depends on the efficiency as compared to other available

alternatives. According to the application of transaction cost theory to HRM, the two key

application aspects include the efficiency in the administrative mechanisms and performance of

such interactions. Hence, in case the transaction becomes more efficient and less costly, then the

management will have the rationality for implementing on the fringe benefits that target all

employees. The adoption of strategic approaches in terms of reward plans should allow

organization to streamline the entire governance structure where there is more value for

employee skills, capability, knowledge and loyalty to work for a longer period.

The respondents from Huawei MNC indicated that management had adopted on several

fringe benefits plan in order to not only benefit the entire workplace, that contribute towards

making staffs see the sense to remain with the organization for a considerable number of years.

The analysis revealed that larger organizations were likely to incur the costs of paying for several

fringe benefits that target staffs such as recognition, praise, insurance and medical benefits, job

security, better working conditions, proper induction, flexible working hours, promotion policy

and opportunity to learn new things as intrinsic fringe benefits. The above findings explain the

reason as to why while the fringe benefits showed positive significant impact on retention

following costs incurred by the larger organization; the fringe benefits failed to show a

significant impact in a smaller organization. Therefore, the organizations opt to decrease on the

expenditure of incurring higher costs in fringe benefits plans.

Nevertheless, the above research findings reveal that investing in benefits and human

capital contribute towards increased retention. Dess and Shaw (2001) discusses in their journal

article on the strategic HRM study that commitment that plays an essential role of enhancing
 Research dissertation 50

HRM structures, help to retain a considerable number of workers at the workplaces. More

importantly, the author illustrates that in most cases, more focused investment HRM strategy

tend to subsume other HRM practices. In so doing, they ensure that organizations experience

high-quality pool of human capital. In essence, benefit and compensation packages such as the

once outlined above, remain the most-visible investments among several organizations. For

example, Dess and Shaw add that the high pay or better pay to staffs, play a role of encouraging

staffs to stay longer with the organization. Furthermore, the author explains that apart from

encouraging staffs to maximize their self-interests when they stay with the organization, the

reward management as an incentive also ensures that management attracts and retains superior

workforce. Moreover, advancing fringe benefits in the form of incentives to employees

significantly increases retention rate. The above impact might arise from a ‘job lock’:

experienced by staffs that have no ability from the pre-existing conditions such as to attain self-

interest from the fringe benefits in case their quit from their present positions (Sayım, 2010).

Finally, is that contrary to the above perspective of transaction theory, Lee et al. (2006)

argues that institutionalization always dominates the implementation of a benefits plan in

organizations. Benefits plans experiences two different aspects that differentiate them from other

HR practices. According to Lee et al., the first aspect relates to the question of legal compliance,

hence the and state play roles when it comes to controlling and coercive adoption of benefits

plans like promotion of the minimum benefit as the payment into retirement account other

mechanisms such as pension disbursement. Scott (2001) refers to this mechanism as coercive

isomorphism. Lee et al. (2006) also adds that the second unique aspect of benefits plans refers to

the institutionalization of the organization that voluntarily chooses to offer them to staffs. The

above occurs because of tacit agreement between an organization and industry what Scott (2001)
 Research dissertation 51

refer to as the normative isomorphism. Therefore, coercive isomorphism, which occurs as a form

of government or law regulation, and mimic isomorphism, which occurs when organizations

adopt the behaviors of other organizations, tends to dominate the reward implementation plans of

several organizations.

5.2. The impact of reward management on organizational productivity

Apart from analyzing and explaining the impact of reward management as an incentive

towards staff retention, the current research study also focused on examining the impact of

similar rewards on organizational productivity of Huawei and Haier as two MNCs case studies

operating in UK. It was important to consider the above topic because some of the already

existing reward and compensation management studies that have focused on examining

individual reward schemes were only conducted Western industries (Sayım, 2010; Dess and

Shaw, 2001). However, the current research study individual reward management plans as an

incentive, correlated positively with the organizational productivity between Huawei and Haier

as MNCs operating in UK.

Furthermore, the current research study revealed that motivational practices implemented

by organizational managers play an essential role of enhancing the impact of individual

performance-based incentives on organizational productivity. according to the analysis findings

and consistent with the previous grounded empirical studies (Sayim 2010; ), we develop a

stronger perception that presence of reward plans as empowerment practices play a key role of

encouraging staffs to develop intrinsic motivations. The above motivations arise more

importantly in areas where organizational staffs gain more focus on ways of completing their

tasks. Dess and Shaw (2001) discusses in their journal articles that as reward practices encourage

employees to remain in organizations for a considerable longer period, they start to learn on

ways of working as a team with other c-workers and completing any given responsibility. More
 Research dissertation 52

importantly, the author places more credit on staffs that work as a group than those than work as

individuals.

Sometimes, performance-based management as incentives might make staffs lose their

motivation because different staffs tend to exhibit less accountability when working as a team

(Kim et al. 2013). However, the author argues in the current research paper that implementing on

reward management as incentives, will contribute intrinsic motivation and encourage staffs to

record higher productivity levels (Glebbeek & Bax, 2004). Therefore, there will be a lesser

chance for development of social loafing when management implements on performance reward

performance based plans and combine them with individual empowerment practices,. According

to the current research study, the research collected data concerning different reward mechanism

adopted by Huawei and Haier case studies from the management and staffs. According to

analysis findings presented in the foregoing chapter, the current study found that performance-

based performance rewards and other empowerment practices enabled the two case studies to

achieve higher productivity objectives.

The study findings of the current research paper supports Glebbeek and Bax (2004)

findings and explanation that when staffs become efficient and effective, they will start to

experience limitations in cases where managers fail to implement on motivational practices. The

author theorizes using expectancy theory that staffs in organizational are likely to gain from the

motivation when they create a strong link between rewards and productivity. Hence, the author

perceives that reward management acts as an incentive that motivates staffs to remain at the

workplace and achieve the set objectives. While managements expect to adopt different reward

systems, the analysis in the current research paper revealed that both Huawei and Haier

companies adopt financial and non-financial reward schemes. For example, further analysis
 Research dissertation 53

found that the irrespective of the organizational size, management makes financial contributions

to rewards such as better pay, performance bonuses, and performance appraisal. Furthermore, the

analysis also revealed that while financial rewards had positive significant contribution to

productivity of two case studies, regression of productivity model also showed that contributions

made in terms of fringe benefits had a positive significant contribution towards productivity of

both case studies with standard coefficients of 0.022 and 0.03 respectively. However, such

smaller positive impact towards productivity might have resulted from the external impacts of

extraneous variables (Sajuyigbe et al. 2013).

5.3. Theoretical and practical implications

The current research paper relied on several conceptual frameworks in order to present an

argument concerning the impact of reward management as incentives towards retention of staffs

and organizational productivity between Huawei and Haier MNCs operating in UK. In order to

build an argument, for example, the current paper drew its conceptual framework from resource-

based theory to describe the reasons that make organizations implement different reward

management as HR practices. For example, Glebbeek and Bax (2004) theorized that higher

human capital inventory play a key role when managers want to retain a relatively higher number

of staffs. Furthermore, the author theorizes that organizations enjoy the benefits of abundant

capacity and capability to execute several practices that encourage staffs to remain with the

organization for a considerable number of years. In addition, the research study also adopted

transaction cost theory in order to explain the impact of employer contribution towards different

reward systems and the cost towards small and large organization. The possibility concerning the

impact of performance-based reward incentives occurs because of unmeasured components of

HRM structures that included reward practices. Rewards management alone as incentives to

staffs, might not influence staff behaviors and attitudes more effectively. However, well-defined
 Research dissertation 54

and structured reward plans should become one of the elements within an integrated HRM

system. The implementation of performance-based rewards as incentives is not immune to risk

because social loafing might as well become familiar at workplaces. Therefore, when designing

and implementing on performance-based reward incentives to staffs, the findings for the current

research paper recommend that management should consider ways they can incorporate reward

management practices.

The current research paper presents different practical implications such as the notion for

management to recognize the importance of behavioral and perception context of staffs when

designing and implementing performance-based rewards. Furthermore, researchers have also

raised the proposed the possibility that performance-based rewards might become more complex

to implement. In addition, other challenges that might become inherent when designing and

implementing performance-based rewards, include unclear set goals and poor administration of

such rewards. Based on the analysis findings presented in the findings chapter, the researcher

argues that the challenges related to designing and implementing the performance-based rewards

might become effective when staffs also participate in making decisions. Discretion of staffs to

participate in making decisions will allow them to design some of the effective rewards.

Consequently, the discretionary practices will also shape and develop effective contribution on

staffs towards working for longer years in the organization and intrinsic motivation towards

higher productivity.
 Research dissertation 55

6. CHAPTER SIX: LIMITATIONS AND FUTURE RESEARCH

The current research study presents several features. The first aspect of the current

research study is that the researcher collected data using both primary and secondary data

through questionnaire instruments and review of the literature respectively. Despite the above

approaches, it is critical to identify and mention some of the limitations of the current study with

the objective of recommending the direction that future researchers would take. The first

limitation concerning the current study is the failure to apply the cross sectional data covering

the performance of two case studies concerning performance. Furthermore, the failure to utilize

on the cross section that covers a number of years would have played a role of testing the

causality among different variables. The study conducted by Perry, Mesch and Paarlberg (2006)

raised several possibilities that previous performance of organizations might offer support to

several sets of HR practices and policies. For instance, while organizations that performed well

might arise because of spending more resources on training, induction programs and other

performance-based rewards, there lacks a stronger conceptual reasoning and believe that such

organizations will experience an increase in the use of individual performance plans. The

current research study recommends that future researchers would deal with this problem by

collecting cross-sectional data in order to study the cause and effect relationship between HR

management practices and organizational performance.

A second limitation of the current research study is the failure to collect data concerning

the cultures found in UK countries such as collectivistic values. The researcher perceives that the

national culture found in the country where the organization operates might affect the level and

effectiveness of performance-based reward plans. However, the study also recognizes that

organizations and can still experience variability in collectivistic values. Furthermore, this could
 Research dissertation 56

also extend across and even within the countries where collectivistic values remain the stronger

foundation among societies. In response, therefore, the current research study recommends that

future researchers should focus on measuring the collectivistic values directly. Besides, future

researchers should also go ahead and test whether such values have the capability to moderate

and affect performance-based rewards and their impact on staff retention and productivity.

The third limitation regarding the current research study is that the research collected

primary data using the foundation of reviewed literature. Hence, most of the variables collected

concerning the current research might have failed to characterize appropriately the strategies of

compensation and reward plans targeting staffs at Huawei and Haier MNCs operating in UK. For

example, some of the selected variables might remain specific to organization benefits practices

and not compensation to staffs. From the above discussion, it is thus important to observe that

the reliability of concerning the survey information remain questionable.

Or else, several other factors that influence staff retention and productivity of

organizations include practices concerning incentive pay, training and development programs,

programs targeting staffing and placement, and management practices. Furthermore, the industry

also remains another factor that affects the current issue. Following the above-discussed

limitation, the current research recommends that future research studies should therefore; analyze

the workforce cross-industry retention.

 Research dissertation 57

7. CHAPTER SEVEN: CONCLUSION

In conclusion, therefore, the current research study has succeeded in studying the importance

that reward management as an incentive has when it comes to retaining and increasing the overall

productivity at the workplace. More importantly, we cannot over emphasize the importance that comes

from designing and managing the reward as part of the day-to-day operation of staffs. It remains a well-

documented fact rather that HRM motivate their staffs by adopting different effective practices.

The current research paper focused on examining the impact of reward management as an

incentive for staff retention and organizational productivity at Huawei and Haier in UK. Hence, by

investigating the strategies of reward and compensation adopted by the case study

organizations, the current research study succeeded in providing other additional insight

concerning the situation under which performance-based reward plans can become effective.

Apart from identifying the financial rewards selected by the management of the case studies, it

is important that management empowers their staffs and recognizes the role of designing and

implementing performance-based plans. For example, the data collected from the case studies

revealed that management designs and chose different financial rewards. On the one hand, the

analysis classified the three rewards such as better pay, performance appraisal, and performance

bonuses at extrinsic rewards. While, on the other hand, the current study classified all non-

financial rewards such as recognition, praise, insurance and medical benefits, job security, better

working conditions, proper induction, flexible working hours, promotion policy and opportunity

to learn new things as intrinsic fringe benefits. Furthermore, the model also consisted of the

control variables in terms of firm size and average level of educational attainment for staffs.

After analyzing the primary data, the findings revealed that strategies for rewards and

compensations that incorporate both financial and nonfinancial incentives showed positive
 Research dissertation 58

significant relation with the level of staff retention. As expected from the first study hypothesis,

is that organizations that design and advances the reward management as an incentive to its staffs

will show a significant higher retention rate than organization without the reward management

incentives in the compensation structures. Furthermore, the current research study showed that

motivational practices implemented by organizational managers play key roles of enhancing the

impact of individual performance-based incentives on organizational productivity.

Methodologically, the study provides more improvement to some of the previous grounded

compensation studies by incorporating multiple respondents from both Huawei and Haier in UK and

controlling for past organizational performance not done (Ho, Ling-Chu & Wu, 2009)

literature. If simple respondents from individual organization might provide biased empirical

results, the current research study addressed this concern by collecting data from different

various respondents. Other future research studies should examine other additional

moderating factors such as performance measures, trusting relationship, and group goal that

indicate implication of performance on performance-based rewards.

 Research dissertation 59

8. REFERENCES

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 Research dissertation 60

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 Research dissertation 62

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 Research dissertation 63

9. APPENDICES

9.1. Questionnaire instrument

Consent information

Hello respondent

The current questions seek to gather information to examine the impacts of reward
management on staff retention and productivity. The research assists requests that you give your
consent to show your approval and readiness to participate on the current study. Please note that
any decline to accept to participate in the current study, will not have any impact to your current
employment status. The study seeks to collect the data mainly for my course work. Furthermore,
the study will also treat the entire analysis finding with the highest level of confidence without
revealing to any other third party. The current questionnaire will on

Respondent basic information

1. What is your sex

1. Male two. Female

2. What would you say your current age to be

1. 25 and below 

2. 26 – 30 

3. 31 – 35 

4. 36 – 40 

5. 41 -45 

6. 46 – 50 

7. 51 and above

3. What would you say your education level to be

1. No educational status 

2. Elementary level 

3. Junior High 

4. Secondary level 
 Research dissertation 64

5. College level 

6. Undergraduate level 

7. Postgraduate level 

8. Any other please specify 

4. How many years could you say you have worked in the current organization

1. Less than one yea

2. 1-2 years

3. 2-5 years

4. 5-10 years

5. 10 and above years

5. Would you say that the current organization adopts of reward management in your

organization

1. Yes 2. No

6. Which of the following reward management as incentives would you say management

implements in your organization? please tick all that apply

1. Better pay

2. Performance bonus

3. Recognition

4. Praise

5. Insurance and medical benefits

6. Job security

7. Better working conditions

8. Performance appraisal
 Research dissertation 65

9. Proper induction programed

10. Flexible working hours

11. Promotion policy

12. Opportunity for learning new things

13. Rewards and fringe benefits

7. Would you say that the organization management manages the above rewards as

incentives rightfully? Please select by rating on the scale of

1. 1= strongly disagree

2. 2= somewhat disagree

3. 3. neither agree not disagree

4. 4. somewhat agree

5. 5 strongly agree

8. Would you say that the reward management scheme implemented by the company

matches your efforts while working for the company?

1. 1= strongly disagree

2. 2= somewhat disagree

3. 3. neither agree not disagree

4. 4. somewhat agree

5. 5 strongly agree

9. What would you say you are already satisfied with the level of reward system offered by

the management to staffs

1. 1= strongly disagree

2. 2= somewhat disagree
 Research dissertation 66

3. 3. neither agree not disagree

4. 4. somewhat agree

5. 5 strongly agree

10. Would you say that you are ready to increase the level of your performance in order to

get more rewards from the management?

1. 1= strongly disagree

2. 2= somewhat disagree

3. 3. neither agree not disagree

4. 4. somewhat agree

5. 5 strongly agree

11. Would you say that the reward management as an incentive offered by the company has

affected your long stay at the company?

1. 1= strongly disagree

2. 2= somewhat disagree

3. 3. neither agree not disagree

4. 4. somewhat agree

5. 5 strongly agree

12. Would you say that the reward management scheme has affected your performance at the

company?

1. 1= strongly disagree

2. 2= somewhat disagree

3. 3. neither agree not disagree

4. 4. somewhat agree
 Research dissertation 67

5. 5 strongly agree

13. Indicate your agreement or disagreement with the following statements. where 1-strongly

disagree, 2=somewhat disagree, 3= neither agrees not disagree, 4=somewhat agree; 5

strongly agree

1 2 3 4 5
a. The company management collects
information on performance
b. Management conducts sufficient recognition
compensations
c. The company rewards the right people
d. The performance appraisal is always
thorough
e. Management treats different people
appropriately
f. Management relies too much on seniority
g. Management uses the right people to
determine compensation
h. Company compensation system is fair
i. The range between the low and high
compensation is still low
j. The range between low and high
compensation is still high
14. What would you say that you would like to see at your company in regard to reward
management as an incentive to staffs

1 2 3 4 5
a. Management should implement more on
group that on individual rewards
b. Company need to move towards
implementing on a greater judgment component
than the formula
c. You would like to support a system that
includes mandatory feedback and satisfaction in
terms of scores and setting of compensations
d. Management need to rewards on
collaborations among members
e. Management need to pay more attention
towards profitability of the company and work
performed by staffs
f. The system need to place more weight of
short term performance outcomes of employees
g. The system need to place more weight on
 Research dissertation 68

long-term performance of employees and less on

short term results
h. In order to encourage staffs to perform
better, management need to reward and
acknowledge employee efforts and their results
i. Management need to change the way of
choosing reward management committee
j. Management need to encourage frequent
delegation of work
k. Management should reward those that build
skills in others
l. The system needs to apply and encourage
individual roles instead of relying on criteria
applied on all staffs
m. Management need to impose a limit
concerning the ratio of high-to-low for
compensating staffs

THANK YOU FOR TAKING YOU TIME TO ANSWER THE

QUESTIONNAIRE!