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

1. Introduction

Human Resource Department of the organization one of the integral departments of the organization as it plays an important role in integrating the organization to maximum extent (Sablynski, 2014). Rewards and appraisals help in increasing the motivation and performance level of the employees to the maximum extent.


1.1.Aims of the Research Work

The research proposal aims in understanding the effectiveness of the reward system and appraisals in the performance of the employees. Along with it also increases the rate of retention of the employees that make the organization profitable and successful in its operation.


1.2.Objectives of Research Work

  • 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.

1.3. Hypothesis

H0: The reward and appraisal system in the organization increases the retention of employees and productivity of organization.

H1: The reward and appraisal system in the organization increases the retention of employees and productivity of organization.



2.Literature Review


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.


2.2. Importance of Reward and Appraisal systems in the organization

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.


2.3.Retention of employees and increase in Productivity

From the outlook and opinion of Rolland and Jardri (2014) the employees are the integral part of the organization. It is the responsibility of the organization to retain the employees to the maximum extent and hence increase the profitability and production of the organization. In order to retain the employees, the organization needs to satisfy the employees, motivate them and give the reward systems. From the point of view of Tangthong et al. (2014) the productivity, hard work, dedication, commitment and results need to be evaluated in order to give them rewards and appraisals. This will ultimately make the employees satisfied with their work and organization and hence they will tend to work more for higher productivity. The greater rating of the employee satisfaction levels, the more will be the productivity and hence the organization will profit more.


2.4. Summary

This section of the research work deals with the rewards and appraisal system along with the importance of it in the organization, Moreover, the importance of reward system for retaining the employees for better productivity is also explained extensively.


3. Research Methodology

3.1. Research Approach

Chang and Mills (2013) commented that research approach depicts the inter-relationship between principles and theories of the research work. This research work undertakes inductive research approach which explains the research work from specific observations to broader approach and concepts.


3.2. Research Design

It is the blueprint of the research work and for this research descriptive research design will be utilized (Rudge, 2011).


3.3. Research Philosophy

The researcher has opted for interpretive research design for vivid explanation of research work.


3.4. Data Collection Methods

Both primary and secondary data collection methods are used. Primary data collected through qualitative and quantitative questionnaires. Secondary data is collected from journals, online and offline sources.


3.5. Sample Size

The sample collected consists of 10 HR managers and 50 employees.


3.6. Research Ethics

The researcher is bound to follow the rules and regulations while successful conduction of the data and presenting it (Veld and Alfes, 2014). The researcher needs to follow the codes of conduct of the university and organization where the research work will be taking place.


3.7. Limitations

Both budget and time are the major limitations of conduction of 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 “reward systemâ€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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