Reward Management System As An Indicator Of The Performance Of Employees: A Study In Manufacturing Sector

Abstract

The effectiveness of human resource management in an organization is incomplete without the motivation of its employees. More the motivated the employees are the better they perform. There are many initiatives taken by the organization to boost the morale and motivation of its employees. Some of them include employee engagement, attractive compensation, challenging roles, appreciation, recognition, and rewards. Considering this theory, this study is emphasizing the study of reward management and its components in some organizational setups and validating the objective of whether the reward management programs or initiatives adopted by these organizations lead to improved performance of its employees. To achieve these objectives, a descriptive study was conducted in manufacturing companies in Pune through the administration of a structured questionnaire designed on 5 point likert scale. Regression analysis was used to determine the impact of the objectives set and the observed results were found significant. Such results derived in this study can help the manufacturing companies in understanding that effective reward management can gain a competitive advantage for the firm. Hence these companies can further strategize their initiatives in this area to improve the R² (percentage of impact) for more effective outcomes. The results derived from the current study are restricting the generalizability to the wider population since the study focused on manufacturing sectors. Based on the data analysis, there is a significant impact of Reward management on Employee Performance with R² = 9.6% and Adjusted R²= 8.7%. The alternative hypothesis is accepted as the p-value is less than 0.05. Although the data collected for analysis holds all conditions of Multiple Linear regression but not normality conditions. The value of Y can be predicted by the value of X (Here X stands for independent variable i.e. Reward Management and Y stands for dependent variable i.e. Employee Performance) and the equation for that is given as Y = 2.458 +0.328(X). The result of the study shows that there is a significant impact of reward management strategies on the performance of the employees of the manufacturing sector