Effectiveness Of Reward System And Appraisals System In Increasing The Retention And Productivity Of Employees In Retail Sector.

EFFECTIVENESS OF REWARD SYSTEM AND APPRAISAL SYSTEM IN INCREASING THE RETENTIONS AND PRODUCTIVITY OF EMPLOYEES IN RETAIL SECTOR

STUDENT’S NAME:

PROFESSOR’S NAME:

Chapter 1: Introduction
1.1 Introduction
The Human Resource Department plays an important role in ensuring that all units of a business are integrated. This is attained through employee management; performing appraisals and rewarding of well-performing employees. Rewards appraisal is significant in raising the employee motivation and levels of performances (Hendry, 2012).

Reward system is a motivating strategy to employees that enable them to perform at the highest level. Employees take pride of their work when they are ware that their job offers them security and opportunities for advancement. It is necessary to recognize that there is no right or wrong systems for rewards but there are those that will make employees to be more motivated than others.

On the other hand an appraisal system assists the management in evaluating the performance of employees on the job so as to develop a system that is fair for promotion and wage increment. Appraisal systems is also evident in helping the employees improve on their performance and also enable the company to devise and reorganize the job functions so as to better fit the employees with the position available. Performance appraisal is usually done on periodic basis general and systematic processes that access the performance and productivity of the employees in accordance with the pre-determined objective and criteria of the company.

1.2 Background Information
The relationship and connection between reward systems, motivation as well as job satisfaction of the workforce play an essential role in the success of the business regardless of the size. Employees expect to gain both financial and non-financial rewards so that they are motivated to work for the company. Some employees prefer to have financial reward while other non-financial rewards. This becomes necessary for the researcher to identify the effective reward systems that should be embraced by the company especially those in retail business (Ibrar & Khan, 2015).

Performance appraisal is recognizes to be a tool that spur employees to attain the goal of the organizations. Employees are in most cases driven by their attitude towards the jobs they doo which has a great impact on the level of productivity and retention. This makes the appraisal systems to be an indispensable part of the organization in the process of developing employees cognizant of their growth and performance improvement, their potentiality and abilities.

Performance appraisal systems impose a substantial impact to other human resource aspects and strategies of the organization at large. Effective performance appraisal is key bedrock in ensuring that the success of employees matters such as employee motivation, selection and training. There is need for the company to develop and reveal the effects of the appraisal systems to the organization and also enable the employees to vividly understand the systems of appraisal and their purpose (Agyare, Yuhui, Mensah, Aidoo, & Ansah, 2016).

According to Miah (2014), many businesses and organization during this era of global competition strive to establish a high work performance culture which is incorporated with the corporate and business strategies so as to develop individual’s contribution to the success of the company. In this process, employees are the key role player in the organization through the process of performance management. This calls upon the entire employer to develop performance management strategies that will effectively develop a workforce with competence and commitment and determined to work towards the attainments of the shared objective and goals of the business. The performance of the organization is determined by the role played by the management and the employees whereby it is required to be in line with the stated goals and objectives.

1.3 Problem Statement
Despite the positive effective that are associated with the reward and appraisal systems in the company, it is evident that most of the employees, supervisors and management are mostly not satisfied with the systems embraced by the company. As a result most of them fail to understand the system appropriates hence associate them with many negative loopholes that develop the negative impact. Many people become dissatisfied with the strategies put in place resulting into failure of the stems such that they fail to attain the intended goal of creating motivation that lead to increased productivity and retention of employee in the company.

In retail business, most of the management team fails to identify the essence of developing effective reward and appraisal system since they view this as necessary to the large companies. As a result of this problem, this project aims to determine effective strategies of reward and appraisal that has the potentiality of increasing productivity and retention among the employees in retail businesses.

1.4 Aim of the Study
The aim of the study is to evaluate the effectiveness of the reward and appraisal systems in increasing employee performance and retention in the retail sector. The study will examine various reward system and appraisal systems applied by business in the retail sector so as to determine whether they are effective in contribution to employee performance and motivation in their work. It is essentials to note that motivation play an integral part in the productivity of the employees hence they is need for companies to develop strategies that enhance the motivation of the employee. This study will examine the effectiveness of the two performance management strategies among the employees which will be measures by the level of productivity and retention of employees in the companies that utilize the strategies.

1.5 Objective of the study
The main goal of the study was to determine effectiveness reward and appraisal systems in increasing the retention and productivity of employees in retail sector

The following are the objective of the research.

· To have an understanding of the significance of the systems of appraisal and rewarding in the retail sector.

· To have an understanding of the impact of rewarding and appraisal system on employee productivity.

· To have an understanding of the systems used to appraise and reward employees for their retention.

· To understand the importance of reward and appraisal systems in the retail organization.

· To understand the extent of employee retention through effective reward and appraisal system.

· To understand the increase in productivity that is related to reward and appraisal system.

1.6 Research questions
During the study, the researcher utilizes the following set of question in order to attain the goals of the study.

· What is the significance of the systems of appraisal and rewarding in the retail sector?

· What is the impact of rewarding and appraisal system on employee productivity?

· Which systems are used to appraise and reward employees for their retention?

· What is the importance of reward and appraisal systems in the retail organization?

· To what extent are employee retained through effective reward and appraisal system?

· Can we relate increased in productivity to reward and appraisal system?

1.7 Research hypothesis
Based on the Assumption of the existing causal relationship, the following hypothesis was developed with to help the researcher in testing.

H0: Effective appraisal and rewarding systems in a retail organization lead to employee retention in the retail organization.

H1: Effective appraisal and rewarding systems in a retail organization lead to increased employee productivity in the retail organization.

1.8 Rationale of the Study
In the organizations, the rewarding and appraisal systems have an important role they play. They help in employee motivation and affect the quality of their work. This also helps in improving the quality of work of the employees. These systems are important in retaining the employees in the organizations. The effective system makes the organizations maintain the loyalty of employees and increase their productivity.

Veld and Alfes (2014) commented on the essential fact that reward and appraisal systems within the organization are essential within the organization. This is because it helps in increasing the motivation of the employees and retaining them. Rewards and appraisals are provided to the employees based on their performance hence it is a mark of prosperity of organization and its employees.

It is the responsibility of the organization to make sure that employees are retained for the productivity and profitability of the organization. Employees need to need motivated for work done (KUYKENDALL et al, 2013). Similarly, they need to be assessed on their productivity, dedication, and commitment to the work; this is done using the appraisal systems. Positive appraisals ensure work satisfaction of the employees through high rating of their performance hence increasing their productivity (Jakowski & McKellar, 2014).

1.9 Purpose of the Study
According to the outlook of Rudge (2011) the reward and appraisal system plays an important role within the organization. The rewards and appraisal systems help in increasing the motivation of the employees that directly affects their quality of work. Moreover, it also helps in improvement of the quality of the work and also improves the overall performance of the employees. According to Cahill et al. (2014) the satisfaction of the employees for their work is also maintained and also helps in understanding the need and requirement of the trainings. The employees tend to retain to the organization and hence also tends to stay loyal to the organization that increases the productivity.

This study will help the retail businesses in determining the effectiveness of reward and appraisal systems which are associated to increased employee productivity and retention. It will help the business owners to determine effective strategies that should be developed so that they can facilitate the appraisal level of motivation among the employees. It will also help them to recognize that reward and appraisal systems are not only essential in large companies and corporate bodies but rather in every workplace that has employees who need some level of motivation so as to attain the overall goals and objective of the organization.

The study will also help the employees by determining the essence of reward system and appraisal systems that are developed by the companies so that they can embrace them. They should also help the company in developing an effective reward and appraisal system that will help in motivating them and increasing their productivity. They are cases whereby employees have misinterpreted the essence of reward and appraisal systems making them view the performance management strategies as a threat to their employment, employee will be educated on the important part of the appraisal systems as well as the rewards systems.

The research will also help other researchers since it will be used to develop knowledge and background of the study they intent to conduct. It will also help them in identifying existing gaps that require research hence it will be essentials in the research sector. Comment by Bincy Baburaj: Please include a brief introduction of methodology to be adopted.

1.11 Structure of the Dissertation Comment by Bincy Baburaj: Please check the numbering..
The researchers of this research study represent their discussion, research topics, researching analysis in five respective chapters. The chapters have been furnished with significant data, information, and analysis of the research topics significantly and adequately. The chapters have been followed in the figure that has been represented in this context below:

Chapter 1

· Aims and Objectives

· Rational of the study

Chapter 2

· Concept of the Topic

· Related Theories and Models

Chapter 3

· Research Methodology tools

· Sampling

Chapter 4

· Findings

· Data analysis

Chapter 5

· Conclusion

· recommendation

Figure 1: Dissertation Structure

Source: Created by the Researcher

1.12 Conceptual Framework
Independent variables Dependent Variables

Retention Reward system

Appraisal system Productivity

Figure 2: Conceptual Framework

Explanation

In the conceptual framework above, the independent variables are the Reward systems and the Appraisal systems which the researcher which the researcher intends to identify they influence in the independent variables which are the retention and productivity in the retail business.

1.13 Summary
The introduction part submits significant discussion and targets of the research study so that the readers and observers of this research study can be understood all the objectives and information related to the study significantly. Organizations and the business sectors use the system of appraisal to gauge the performance of the various employees. Moreover, rewarding of well-performing employees is a motivation to the employees. This project aims a studying the effective systems of appraisal and rewarding in the retail business. Effective appraisal systems ensure that there is progress in the organization. Effective appraisal systems are appreciated by the employees and are the basis of retaining good performing employees. The proposal aims at providing an understanding effectiveness of systems of rewarding and appraisal to the performance and retention of the employees

Chapter 2: Literature Review
2.1 Introduction
A critical review of existing literature related to the study is significant since it helps in the researcher to develop an insightful understanding of the topic. Analyzing previous researchers gives a clear background of the study that will help the researcher in identifying the existing gaps to fill on this research. In order to purse the goal of literature analysis in the study, the existing literature will be categorized ion to theoretical perspective and empirical perspective. In the theoretical study, the research will analyze existing theories that are relevant to this study. In the empirical study will consist of the observations and findings of other researchers, on the issues of effectiveness of reward and appraisal systems in increasing employee performance and retention. The literature review will be guided by the objectives of the study which will help the researcher in identifying essential knowledge to the study.

2.2 Theoretical study
2.2.1 Equity Theory
According to Young (2018), John Stacey Adams suggest that employees are motivated by the fact that they believed the employments rewards or benefits are at least equal to the level of efforts they subject to the work. Employees will consider that they are treated fairy when they perceive that the ration of their input is relatively equal to the outcomes or rewards obtained. People are satisfied with the job when they weigh between their remuneration to other employee in the same business or other companies in the same industry. The employer should provide wages that are competitive to other companies so that when the employees weigh between the outcome and the input they become satisfied with what they get. The reward system should consider the work done by the individual and the level of experience they possess. People at higher rank should be given higher remuneration as compared to those at lower rank (Abdelghafour & Al-Madi, 2003). This ensures motivation of people to perform better since they rewards given are equal the efforts. It is also necessary the employees doing similar work or those at the same rank should be offered similar compensation since equality is very essential in creating motivation and satisfaction.

2.2.2 Agency Theory
According to Evans & Tourish (2017), Agency Theory promotes the understanding of the correlations between provision of incentives and performance measurement system. The theory is applied in research of the mechanisms employed but the business owners to align the CEO’s interest with the organizations objectives. The problem of principal agent revolves around the degree to which the principal is required to devote their efforts in minimizing behavior that is shirking especially for an agent who not trusted and motivated by self-interests. The theory argues that the primacy of the values of shareholders or owner of the company is taken for granted when people utilize their power inappropriately or tend to execute self-interest at the expenses of the company. Therefore, there is need to ensure that every individual expressed the interest of the company and the company to strive to meet the expectation of the employee. Therefore, performance appraisal and reward systems play a vital role in ensuring the employees are geared towards achieving organization goals and the company strives to reward their inputs by proving competitive incentives. Both parties must strive to bridge the existing gap between the employees interested and the company’s interest so that the optimum goal is attained. Therefore, the use of appraisal is aimed to limit the chances of an employee prioritizing on their self-interest rather than the shareholder’s values and ensure that every individual live in line with the expectation of the company when working. Bridging the gap between the interest of the individual and organizations’ goal will result into motivation and retention of employees.

2.3 Empirical Study
2.3.1 Significance of Appraisal and Reward systems
These two performance management strategies are essential to the business. They enable increased focus of attaining the goals of the business. Every day work of the employee support the mission of the company since they goals are aligned in accordance with the functions of various departments in the company. Performance appraisal helps in ensuring that the employees retain their focus throughout the year so as to be appraised or rewarded for good performance. These strategies are essential to the attainment of business results and also facilitate profitability (Puckett, 2015).

According to Fasseh (2013), they help in developing an empowered and engaged workforce. The company is able to strengthen employee engagement through the creation of a business culture that is accountability shared for growth and development of the employees’ career. Performance appraisal and rewards systems help the management to develop an insight into the skills and abilities of the workforce hence ensure that the function and duties of the employees are matched with their capabilities. The systems also helps in ensuring that employees get direction, feedbacks and development of their needs that will help the, in succeeding in their personal goals as well as those of the larger company.

Performance management and appraisal are essential in the management of talent since they help in establishing an empowered and skilled workforce. The company is required to do more than just auditing the achievement of employees, it should focus on establishing a continuous support and improvement of the workforce and the company so that to create a conducive environment for working. The process helps the company in goal setting and revisions those that may seem unrealistic (Ibrar & Khan, 2015). Every employee’s should be provided with a clear guidelines and understanding of the expectation of the employer. They are also able to determine where an individual will fit best in the company; the process should begin from the company’s goal, down to the managers or department goals, team and individual goat setting. This helps the individual and the company to determine their priorities and direction to follow in order to achieve all the goals set. This process allows the individuals to feel they are part of the business management and ownership hence ate motivated to ensure that all these goals are attained.

Performance appraisal and rewards also helps the organization management and coaching. The process allows the identification of goals that required adjustments since there are other goals that the employees may not possess the skills to attain them. Feedbacks and coaching offered during the process enable gap identification and solution to the gaps (Ayomikun, 2017). The management is able to improve employee engagement and performance as a result of continued feedbacks and coaching. At times, the company may hire potentials but inexperienced individuals hence performance appraisal will help them in determining proper training and development programs with the capability of addressing the skills and performance gaps that exist.

According to Fasseh (2013), the process also helps the company in ensuring that the employees acquire regular and quality feedbacks which are essential to their performance and ways of improving them. Once a gap in the skills is identified, the management is able to advice the employee on the skills they need to develop so as to attain the wish of the company’s and also in line with their career progress. Therefore, there 9s need for the workforce to recognize of essence of performance appraisal and rewards which is to help them in development and provide control over progression of their career.

Recognition and rewards helps the employee in balancing between negative and positive feedbacks. Little appreciation for good work done helps in satisfying the fundamental needs for praise, leverage social engagement and reinforces the appropriate behavior and culture. Rewards and recognition and able to facilitate employee retentions and work engagement which creates good ambassadors of the origination culture and practices and also enhance productivity (Puckett, 2015).

2.3.2 Types of Performance Appraisal systems
According to Ayomikun (2017), ther are various type sof appraisal systems that are used by companies which include 360 degree/Multi-rater appraisal system, Management by Objectives (MBO), and Graphical Rating Scales. The 360 Degree performance Appraisal which is also referred to as the Multi-rater performance appraisal is one of the most recently used system of appraisal in both large and small sized organizations. It involves an appraisal systems that consists the views of various groups and reviewers who have the opportunity of socializing with the employees. These reviewers include the managers, supervisors, customers and co-workers. The system also encompasses the perception of the individual employee on their opinion about performance; hence it is recognized to be multi-rater, multi-source and full-circle appraisal system. In this case, employee competencies is determined by the existence of four key assessments which include self-assessment, immediate supervisor, the subordinate assessment as well as peer assessment hence constituting the 360 degree appraisal system. The 360 degree appraisal system allows the reviewers to gather information regarding the performance of particular employee from various angles and degrees. The process also ensures that the performance of the employees is viewed from various angles and double checked it help in overcoming some of the disadvantages that may accompany opinions from some people such as subjectivity, prejudice as well as hale errors. These systems are perceived by the employees to be more accurate as compared to other methods since is more reflective and involved the opinion of various which provide comprehensive information that could assist in determining the training need of the employees. However, this method is also accompanied by disadvantages whereby the use of degrees ad numeric limits the ability of the company to gather rich information that may be provided by the reviewer. Consequently, interpretation of the final results is usually hard since it uses qualitative assessments and fails to provide accurate qualitative information.

Management by Objective can be defined as a result-based program of evaluation. The goal of the performance appraisal systems in this method is mutually defined by various key stakeholders who include the employees, subordinates and the supervisors. MBO appraisal systems consist of various steps which begin by establishing clear objectives for employees, a detailed action plan stating the way the employees will achieve the stated objectives is developed, and then employees are allowed to implement the established action plan. This method allows the process of appraisal to be objective. MBO stresses that essence and values of employee involvement in the appraisal system. When determining the effectiveness of the MBO approach it is recognized that it provides a significant benefit to both the employees and the organization. It promotes objectivity, gives room for a two way feedbacks and also encourage performance improvement through motivation. When the process is implemented accordingly in allow the provision of results that are fair and efficient. However, the process is also accompanied by shortcomings whereby it does not allow monitoring to determine every eventuality over a given period of work since it focus on results rather than the process of attaining the results. Consequent it gives little consideration for a comparative evaluation since no benchmarks are established based on the changing environments at the workplace during the period of work.

According to the outlook of Rudge (2011) the reward and appraisal system plays an important role within the organization. The rewards and appraisal systems help in increasing the motivation of the employees that directly affects their quality of work. Moreover, it also helps in improvement of the quality of the work and also improves the overall performance of the employees. According to Cahill et al. (2014) the satisfaction of the employees for their work is also maintained and also helps in understanding the need and requirement of the trainings. The employees tend to retain to the organization and hence also tends to stay loyal to the organization that increases the productivity.

Finally, the Graphical Rating Scales consist of the mostly used method in performance appraisal of many organizations. This method entails the use of a rating checklist during the appraisal process. The manager simply used the checklist to rate the performance of the employee on a continuum which range from poor to excellent in accordance with the factors being evaluated. The graphical rating scale is popular since it has the ability to utilize this scale in a variety of factors or jobs being evaluated. The process also required minimum cost, time and training efforts hence makings it suitable to many people. The scale is used to evaluate various factors which include the quality of work of the employee whereby the ability to meet the requirements; desired outcomes and expectation are assessed. It is also used in productivity assessment whereby it determines whether the employees used the available plans appropriately, complete assignments as scheduled and used the work time accordingly. Graphical Rating scale can also be used in assessing the knowledge of employees in relation to the job done whereby the relevant skills are assessed especially those gained through on-the- job training, education and experience (Ayomikun, 2017).

2.3.3 Types of reward systems
There are various types of reward systems that are utilized the various organization regardless of their size. They reward systems can be categorized as either extrinsic or intrinsic rewards. Extrinsic rewards are usually in form of tangible materials which are given to employees’ by the manager in relation to good performance. They include pay raises, benefits and bonuses. They are referred to as extrinsic because they are externals as related to the work itself, and people can control their size regardless of whether they are granted or not. On the other hand, intrinsic rewards refer to those that are intangible such as personal achievement, sense of pleasure, professional growth, accomplishment and recognition. This aims to improve the inner attitude of the individual towards their work. Most organization utilizes the following discussed typed of reward to motivate the employee to improve in their productivity.

Variable pay is mostly used by companies and also referred to as the pay-for –performance. It refers to a mode of reward whereby compensation programs is a portion of the individual is considered to be at risk. Variable pays can be bounded to performance of the individuals, business unit resulted, accomplishment by individual or a combination of these factors. These forms of reward may take various forms such as stock options, bonus programs or one-time award for accomplishments. Some business choose to pay employees low incentives as competed to their competitors in the same industry but subject the employee to motivation and rewards used in variable pay programs. The good incentives provided by the pay package provide a positive challenge to the employees hence motivate them to stretch their performance. However, when too much effort is required to attain the goal, then they employees end up ignoring the program.

Bonuses programs are also used to motivate employees. Bonuses usually reward individual for accomplishments especially in sales organizations with the aim of encouraging the salespersons to bring forth higher profits or additional business. They are also used to recognize group accomplishment. However, bonuses are recognized to be disadvantageous since they generate short-term motivation hence small businesses are advised to consider utilizing other form of reward systems that will target long-term motivation. Rewarding the performance of an employee from the past years encourages short-term perspective of motivation rather than future-oriented accomplishment. Therefore, these programs require careful considerations during structuring so as to ensure that the reward accomplishment are above or beyond individuals or group based legitimate strategy of rewarding outstanding performance and such compensation have the potentiality of encouraging future top-level efforts in functions, failure to which there are misinterpreted whereby there are perceived as entitlement or regulates merit pay instead of rewards for an outstanding work. The bonuses reward systems are considered to be perfect.

Profit sharing is also utilized whereby it refers to the strategy of developing poo of monies which are disburden to employees by considering the stated percentage of the profit obtained by the company. The amount presented to the employee is usually equal to the percentage of their salary which I disbursed once the business closes their end of year books. The benefits provided to the employees can be in from of actual cash or contribution the employees plan. This mode of reward helps the company to keep low fixed costs. This profit sharing reward systems is based on the idea of rewarding the employees for their contribution towards the attainments of the organization profit goals. It encourages the workforce to stay up since there are structures to only reward employees who remain with the company for a number of years. Unless profit sharing is managed appropriately it might not attain the goal of motivating individuals especially when all the people receive equal the shared regardless of their contribution.

The other reward systems is the stock options programs provide the employee with the right to a specific number of shares at a fixed price over a certain period of time. In most cases they are generally authorized by the board of directors or the company and approved by the shareholders. The number of options awarded to the employees is usually equal to a particular percentage of outstanding shares of the company. This mode of reward systems reward the employee for being tied to the company for a long period hence serves as a motivator that is long-term. Once the employee remains in the company for a certain period of time they are vested fully in the programs. In case the individual leave the company, the programs of stock option are cancelled. Once the employee has purchased the shares they are given an opportunity of selling them to the open market. However, this method of rewards imposes a risk to both the employee and the company since incase the options strikes a higher prices that the market prices the programs becomes worthless to the employee. In case the employee utilized the option, the company issues a new stock shares which can be traded publicly. In order to strike a balance of the two factors, earning must appreciate at an equal rate to the rate of increasing the outstanding shares. Otherwise, it imposes the risk of the company repurchasing shares that are on the open market with the aim of reducing the number of outstanding company shares.

Recognition is also used by businesses to reward employees for good performance. In small business, the owners and manager perceive recognition to merely appear as an extra effort in combination with tangible returns in regard to employee’s performance. In cases where an entrepreneur has more ingenuity as compare to the available cash, recognition presents an opportunity for employees to be motivated. In order to develop recognition programs that are effective, business owners are required to ensure that they separate the programs from the system of rewarding employees in the company. This ensures that the owner recognized the efforts of particular employee. This method may be accompanied by other form of rewards with monetary value such as gift certificates, plagues and luncheons but money in form of cash is discouraged for recognition (Cooper & Eerde, 2014).

2.3.4 Perception of employees towards appraisal systems and reward systems
According to Dipboye and Pontbriand (1981), the effectiveness of reward and appraisal systems has been researched on my few researchers. It is important for the company to review how they can design heir systems so that they can improve employee perceptions towards developing motivation among them. It is predicted that the workforce is positively moved by the latest performance appraisal systems since they are allowed to participate the in e process of appraisal, and also due to the fact that the appraisal systems are goal oriented. It is also perceived that employees positively embrace appraisal system to a degree that they view the factors evaluated by the process to be relevant to their jobs. It is evident that appraisal interviews that tend to focus on mannerism and personality of the employees lead to more subordinate dissatisfactions that interviews that mainly focus on job-related matters. Therefore, perceived goal orientations as well as participation of employees have the potentiality of moderating the favorability of employees towards appraisal opinion. They tend to favor process that enhances their participation and those that are goal oriented.

According to Jain and Jain (2014), employee favour perfromnce appraisal since the activities involved provide an apportunity foir the comaosny to seek and asess the employees in regard to their competency, enhance perfromance and ditsribute rewrads accordingly. Perfromanec a[praisals are considered to be very essentail in cretaing a positive working environment since it involces a ranbge of factors such as communicatsion, reward, equity and fairness, employee relatsions, attitude towards conflicts, trust and acceptance and socail context. It is very essentail athat the comaosny addreses ythe recatsion of employees towars appraisal due to certain reaosn such as it involveds that notion that is representde by the recations which is a criterion fro interestd that is great to practitioners.

Employee rewards are efecive in motivatsing empoyee perfromance in agreat manner. They provide the employee with a sence of job security and opportuynitiy fro their advancemnte since they encourgae them to take pride in the job. There is no right or wrong systems for rewards but rather the management is required to identify the intent of the rewards and the impact intended among the employees. It is necessary to recognize that there are systems that result into long-term motivation while other focus on short term motivation. The management should focus on establishing those that will lead to long-term motivation (Ayomikun, 2017).

2.4 Gaps in Literature
There are many researches that strived to examine the issues to reward systems and appraisal systems in the companies. Researchers have studies the input of various theories in the issue of reward and appraisal in the companies. The impact of the performance management strategies have been identifies whereby most studies recognize that there is a significant impact of the two in the business. The researcher had also identified the existing types of Reward systems and appraisal systems that hare implemented by various companies. These studies have played a significant role in developing the knowledge on the topics of study. However, the researcher has identified that there exist a gap whereby this study that strive to recognize the effectiveness of the reward systems and appraisal systems in increasing productivity and retention of the employees. As a result the research is interested in filling the gap hence has decided to carry pout this study.

2.5 Conclusion
In Conclusion, Literature review signifies the evident as well as reflective comments and speeches of various individual so as to support the analysis and study of the researcher regarding reward systems and appraisal systems. However, there exist various gaps in the literature review that require studies to be carried out hence researcher in the field should take the initiative of identifying the gaps and striving to fill them. Despite the gaps, the literature had helped in proving their significance and analysis which will be of benefit to the study since it will guide the activities of the study.

Chapter 3: Research Methodology
3.1 Introduction
Methodology includes reflective methods of techniques, which help respective researchers to research or analyze a significant research study in order to provide supports and information regarding the topic to the readers as well. In this respect, it is to be defined that this chapter helps the researchers and analysts to find out and point out innovative and significant techniques of research including diagrams, paradigms, models and theories respectively. Moreover, it is to be defined that research topic denotes the researchers to designate the research process including quantitative or qualitative methods as well. This research study needs both qualitative and quantitative research method, through which researchers can be able to find out researching data and information for the research study as well.

3.2 Method outline
Every respective component and part is important and effective in order to gather methods and techniques of researching a significant research topic. Method outline indicates the researcher’s significant techniques and methods of a research study in order to analyze significantly. Methodology includes reflective methods of techniques, which help respective researchers to research or analyze a significant research study in order to provide supports and information regarding the topic to the readers as well. In this respect, it is to be defined that this chapter helps the researchers and analysts to find out and point out innovative and significant techniques of research including diagrams, paradigms, models and theories respectively. Moreover, it is to be defined that research topic denotes the researchers to designate the research process including quantitative or qualitative methods as well. This research study needs quantitative research method, through which researchers can be able to find out researching data and information for the research study as well. Comment by Bincy Baburaj: References required. Most of the statements are very strong, so make sure citations are provided.

3.3 Research Onion
The Research Onion Equipment helps the researcher in pointing out various steps regarding the research analysis of this topic. As a result, it is necessary to recognize that research onion consist of six respective layers which are situated in accordance with the layers of an onion. The outer most layer of the onion represents by research philosophy. The second layer is the research approaches, third replaces the strategies, the fourth refers to the choices made, the fifth is the time horizons while the inner most parties is the technique and the procedures used in the research. The research onion is highly significant and helpful in this research. Comment by Bincy Baburaj: Reference?

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Figure 3: Source: Saunder, Fernandes, and Kosnes (2009)

3.4 Research Philosophy
Research Philosophy assists the researcher to understanding and familiarize with all the sectors and components of the topic. The research philosophies can be three parts which include the positivism, post positivism and realism. The research philosophy helps the researcher to describe and define the information and topics to the readers. For this particular study, the researcher will utilize the realism philosophy which will help in identifying the real attitude of the Human researcher Managers and Employee towards the reward systems as well as the appraisal systems and they impact in increasing productivity and retention of the employees.

Figure 4: Research Philosophy (Knobe & Nocholas, 2013 ) Comment by Bincy Baburaj: Image is not clear, please change background colour.

3.5 Research Approach

Describing the research approach is essential so as to evaluate and develop the particular topics the study. Research approaches include the deductive and inductive approaches. In this study, the researcher will use the Deductive approach. This approach helps the research in analysis so as to gain information and knowledge thoroughly about the topic. Deductive approach enables the researcher to highlight and adopt theories and models that are highly applicable so as to gain knowledge and information on this particular topic.

3.6 Research methods
Research methods refer to the methods used by the researcher in performing the operation of the research. Research methods involve the use of data collection in the process of researching. Research methods include interviews, Case studies, Survey, experiments and observations. The research methods are applied to gather information that enables the researcher to find the answers of the research problems and questions (Saunder, Fernandes, & Kosnes, 2009). Comment by Bincy Baburaj: Is this the only source that you have used throughout? Please refer to Creswell and some other research methods sources as well.

3.7 Research Design
Research Design of a particular topic assists the researcher in structure or designs the topic or the research and helps to analyze the topics thoroughly. There are various research designs which include Descriptive, explanatory and exploratory research design. These designs assist the researcher in describing and analyzing the research study so as to provide current analysis and information to the reader. In this study, the research selected descriptive research design. This research design helps the researcher in describing and defining the research topic adequately and thoroughly. In addition, the design helps the researcher in identifying and pointing issues and problems during the analysis of the research topic.

3.8 Collection of Data
The method used for data collection will be done using both the primary and secondary data collection methods. Both qualitative and quantitative questionnaires will be used for primary data collection. Interviews will also be utilized so as to obtain information that is consistent. The secondary will be obtained from online sources, journals and other offline sources (Johnson & Turner, 2003). The survey will include a sizable number of human resources managers and employees. The questionnaires and interview questions utilized will be provided in the appendices. However, in order to make the analysis easier, the researcher will use similar question in the questionnaires and interviews. The researcher will utilize data collection assistant so that they can help in collecting data from various reasons and also to enable the researcher in completing the study within the appropriate time. Comment by Bincy Baburaj: How many questionnaires? Comment by Bincy Baburaj: So who are the population involved in the study? Where are they based? UAE?

3.9 Data analysis
Once the data has been collected, it will be analyzed by the researcher so as to describe different problem and solution of essential topic and research topic. Data analysis assists the readers in understanding the effective issues and resolutions which are generally highlighted by the researcher through data analysis. The mode of data analysis utilized will be the statistical data analysis methods since they data collected contain quantitative data. Comment by Bincy Baburaj: So are you going to use any statistical software or just excel sheet for analysis, please specify.

3.10 Sampling method
There are two types of sampling techniques which include the probability and non probability methods. In the probability sampling method the respondents are provide with equal chanced of participating in the research whereby they present their information and thoughts regarding the topics. In the other hand non-probability sampling methods is defined as the respondents are not given equal chance to explore their information regarding the topic of study. This study will utilize probability sampling methods, whereby the researcher will use the random sampling technique to collect the data. Comment by Bincy Baburaj: Reference. Comment by Bincy Baburaj: ?

Sample will be collected among the employees and human resource managers hence the sample to be collected will consist of a sample population which is as indicated below who will come from various retail businesses which will also be selected on random sampling technique. This technique of sampling will be of advantage since it will provide respondent with an equal chance of participating in the study. The technique is also recognized with its tendency of reducing chances of bias practices during the selection of the participants. Comment by Bincy Baburaj: So how many people will be included in the sample? So would it be same sample for both survey and interviews?

3.11 Researcher Process Flow Chart Comment by Bincy Baburaj: Chart is not clear and should be placed after the research approach.
Figure 5: Research process and Flow Chart

Identification of Research Topic

Literature Review Identification of Research Gap

Identification of Variable and Preposition of Theoretical Model Conclusion and Recommendation Findings Hypothesis Conducting survey Questionnaire Development Sampling Pilot Study and Pretesting Hypothesis Formulation Formulation of Research Objectives Research Question

3.12 Target Population and sample size
Figure 6: Sample population.

Category

Population

Human Resource managers

15

Employees

45

Total Sample Population

60

The researcher will use this population in questionnaires. Other five responded will also be interviewed. This population will be obtained from the human resource and employees in the retail businesses whereby the researcher will be interested in addressing the research questions of the study. Comment by Bincy Baburaj: Area of study is not clear. It was mentioned that, its about retail sector but cant find this mention anywhere in the methods chapter.

3.13 limitation of the study
While researching or analyzing a significant research study, it is to be justified that researchers face a number of limitation that they must strive to handle so as to attain the intended results of the study. Accessibility issue is one of the limitations since they only time the researcher can access the employee and the human resource manager is during their working hours. These people remain busy in the working place during the working hours and it would be difficult to stop them from working so that they can respond to the questionnaires and interviews. However, in order to deal with the problem, the researcher will book appointments with the managers and employee to be interviewed. The researcher will also present questionnaires to the employees and human resource manager and collect them latter so that the people are given a humble time to respond to the questionnaire during their free time. Other limitation will include the limitations of the budget and the time for research. The cost of data collection, analysis and report complying. In some instances, statistical analysis will require an analyst; this will present a cost to the researcher. The time presented for the whole research process is also limited hence it may strain the researcher.

3.14 Ethical Consideration
The research will be conducted in according to the rules and regulations of carrying out research including data collection and result presentation. All codes of conduct will be followed by the researcher (Maloney, 2012). Confidentiality of the participant will also be maintained in that the information provided will only be applied for this particular study. Their identify will be protected hence they will not be allowed to provide details that will help in arriving at the most appropriate conclusion and recommendation of in this study. The researcher will also utilize data collection assistant who will be informed of the process of collecting data so that they follow the ethical practices during the data collection process.

3.15 Timeline of the research Comment by Bincy Baburaj: Not sure on what basis the time line was created. I think its quite impossible to do the mixed data collection within 1 week. Even for surveys you need atleast 2-3 response time.
Activity /Time

Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

Week 7

Week 8

Setting of research aim

Research objective design

Research question clarification

Evaluation of topic contribution

Thesis selection

Theories selection

Data collection

Data analysis

Figure 7: Gantt chart

Source: Created by the Researcher

3.16 Conclusion
It is to be defined at the end of this chapter of research methodology; researchers provide significant techniques and procedures of collecting and gathering data of SPSS, which is significant and adequate to identify the effectiveness of reward systems and appraisal systems in increasing employee retention and productivity in the retail sector. Moreover, this chapter also signifies and defines that data source is highly depended upon the research topic and study as well.

Research

Philosophy

Positivism

Post Positivism

Realism

 
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