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Effectiveness of Reward and Appraisals System in Increasing The Retention and Productivity in Retail Sectors

1. Introduction

According to Sablynski, 2014, human resource department of any organization is the integral department as it plays an essential role in integrating the organization to its maximum extent. HR department manages the performance of the employees, check whether the employee is comfortable with the training program provided to him, utilize motivational activities to increase employees performance and lead the development of organization towards a better future. Reward and appraisal are the two primary factors which benefits by increasing the performance level of the employees.

1.1. Aim of the Research Work

The research aims to work on and understand the award and appraisal system in increasing the productivity of retails. It also aims to determine the impact of award system in mining retention of employees and the increase of performance of the organization.

1.2. Objectives of Research Work

  • To inspect the importance of reward and appraisal systems in the overall performance of retail organization.
  • To scrutinize the impact of reward and appraisal system in the retention of the employees and also determined the extent of retention.
  • To evaluate the increase in profitability, productivity and the overall performance of the retail organizations due to reward and appraisal system.

1.3. Hypothesis

  • The reward & award system does not cause any impact on the productivity of organization.
  • The reward and appraisal system enhances the productivity of organization and also the retention of man power or employees.

2. Literature Review

2.1. Introduction

According to Veld and Alfes (2014), award and development reward system plays important role for the betterment of the organization therefore it is necessary for any organization to follow. Award and reward system helps to increases the motivation of employees and also satisfy their needs that they accept from their jobs. It further helps in the retention of employees. Awards and rewards are usually provided to the employees as per their performance within the organization for motivating them to perform more good in order to maintain the prosperity of the company and the other employees as well.

2.2. Importance of Reward and Appraisal systems in the organization

According to the outlook of Rudge (2011), award and reward system helps to motivate the employees and directly inspire them to work with full capacity of enhancing the quality of work and the performance of the organization within the competitive market. Moreover, this procedure also inspires other employees to work hard and motivate themselves with the advantages of award and reward systems. In this context, Cahill et al. (2014) stated that ward and reward system helps the employees to understand the need of training programs and it also helps them to satisfy themselves with the facilities of the organization which ultimately retain themselves within the organization to large extent. Employees stay loyal towards the proactively and performance of the organization.

2.3. Retention of employees and increase in Productivity

Employees form the integral part of organization and it is the primary responsibility of organization to retain the employees to maximum extent by fulfilling their needs or the satisfaction level [outlook, Rolland and Jardri (2014)]. To make retention of employees, organizations need to satisfy employees by motivating them and providing awards for their performances. According to Tangthong et al. (2014), some factors should be evaluated on the basis of which awards or rewards should be provided to the employees and these factors are commitment, hard work & dedication, productivity etc.

2.4. Summary

This section explains the theories regarding the award and appraisal system in retaining the employees within the organization. Extensive experience discussion has been carried out for the understanding of reward and award system in order to motivate the employees and increase the performance of the organization.

3. Research Methodology

3.1. Research Approach

Research approach interlinks the proposed theories with the principles of research work. In this research, inductive research approach has been utilized to explain the research in the broader sense.

3.2. Research Design

Research Design acts as a blueprint of the research work that helps a researcher to explain the work with detail and step-by-step discussion.

3.3. Research Philosophy

Interpretive research design has been adopted for detailed discussion on the research topic that focuses on the utilization of award and reward system in order to retain the employees of the organization.

3.4. Data Collection Methods

Both primary and secondary data collection method has been utilized to achieve the objectives of the research work. The primary data has been collected throughqualitative and quantitative questionnaires whereas the secondary data has been collected from various Internet sources, journals, articles, books etc.

3.5. Sample Size

Questionnaires have been prepared for the sample of 10 HR managers and 50 employees.

3.6. Research Ethics

The researcher will collect the information regarding the research work while following the ethical code of conducts otherwise it will be conducted as unethical or illegal.

3.7. Limitations

Budget and time constraints were the major limitations while collecting data for the research work.


Cahill, C., Cook, C. and Pickens, S. (2014). Migraine and Reward System—Or Is It Aversive?. Current Pain and Headache Reports, 18(5).

Chang, C. and Mills, J. (2013).Effects of a Reward System on Resident Research Productivity. JAMA Otolaryngol Head Neck Surg, 139(12), p.1285.

Rolland, B. and Jardri, R. (2014).Cortico-accumbens circuitry in schizophrenia: Merely a “rewardsystemâ€Â?. Schizophrenia Research, 160(1-3), pp.233-234.

Rudge, A. (2011). Birmingham City Council links increased contribution and outcomes to reward and recognition. Hum Res Mgt Intl Digest, 19(5), pp.6-8.

Sablynski, C. (2014). Job Embeddedness and Enthusiastic Stayers: Management Consulting Strategies for Employee Retention. Academy of Management Proceedings, 2014(1), pp.15282-15282.

Tangthong, S., Trimetsoontorn, J. and Rojniruntikul, N. (2014). HRM Practices and Employee Retention in Thailand—A Literature Review. International Journal of Trade, Economics and Finance, 5(2), pp.162-166.

Veld, M. and Alfes, K. (2014). “Employee retention in long term care: The link between HR practices, climate and employee outcomes”. Academy of Management Proceedings, 2014(1), pp.10769-10769.

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