RESEARCH PROJECT REPORT

ON

“A STUDY ON THE IMPACT OF COMPENSATION AND REWARD

SYSTEM ON THE MOTIVATIONAL LEVEL AND PERFORMANCE OF
EMPLOYEES’’

In partial fulfilment of the requirements for the award of the

degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)

SUUBMITTED TO

Dr. A.P.J ABDUL KALAM

TECHNICAL UNIVERSITY,
LUCKNOW( UP)

VISHVESHWARYA GROUP OF INSTITUTIONS, GR. NOIDA (UP)

BATCH 2019-21

1
UNDER THE GUIDANCE OF: SUBMITTED BY:

NAME-SNEHA RAI

Faculty guide: Prof. Chakshu Gupta Roll No: 1900960700018

TABLE OF CONTENTS

2
CHAPTER-1 TOPIC
1.1 ABSTRACT
1.2 INTRODUCTION
1.3 BACKGROUND OF THE STUDY

CHAPTER-2 INTRODUCTION TO CONCEPT

2.1 IMPACT OF COMPENSATION
2.2 REWARD SYSTEM
2.3 MOTIVATION
2.4 IMPACT OF REWARD SYSTEM ON EMPLOYEE MOTIVATION
2.5 FACTORS AFFECTING MOTIVATION
2.6 DRAWBACKS OF LAW MOTIVATION
2.7 EFFECT OF GOOD REWARD SYSTEM ON EMPLOYEE
MOTIVATION
2.8 PERFORMANCE EVALUATION
2.9 HUMAN RESOURCES AND EMPLOYEE RELATIONSHIP
2.10 HR FUNCTION
2.11 1.10 HR SOLUTIONS TO WORK

CHAPTER-3 LITREATURE OF REVIEW

CHAPTER-4 RESEARCH METHODOLOGY
CHAPTER-5 RESEARCH OBJECTIVES
CHAPTER-6 STATEMENT OF HYPOTHESIS
CHAPTER-7 STATEMENT OF THE PROBLEM
3
CHAPTER- 8 TOOLS OF DATA COLLECTION
CHAPTER-9 SOURCE OF DATA COLLECTION
CHAPTER- 10 RESEARCH DESIGN
CHAPTER-11 POPULATION, SAMPLE SIZE & SAMPLE
TECHNIQUE
CHAPTER-12 ANALYSIS
CHAPTER-13 DATA ANALYSIS OF QUESTIONNAIRE
CHAPTER-14 FINDINGS
CHAPTER-15 SUGGESTIONS
CHAPTER-16 LIMITATIONS
CHAPTER-17 RECOMMENDATIONS
CHAPTER-18 CONCLUSIONS & ACKNOWLEDGEMENTS
CHAPTER-19 ANNEXURE
19.1 BIBILIOGRAPHY
19.2

QUESTIONNAIRE
19.3 RESEARCH QUESTIONS

CERTIFICATE
4
This is to certify that Mr/Ms...Sneha Rai...., Roll No…
1900960700018 …has completed the report titled ".A Study
on Impact of Compensation and Reward system on the
performance of Employees Working In Centrum Financial
Servics Limited.." under my guidance for the partial fulfilment
of Summer Internship of Masters of Business Administration
(2020-21) from APJ Abdul Kalam Technical University.

Name of Faculty Guide: .............................

Signature of Faculty Guide: ...............................

Head of Department: Examiner:

Sneha Rai

ABSTRACT
The research is an appraisal of the effect of reward system on
the motivational level of employees; it analyzes the concept of
reward system, types and significance as a motivational
strategy. Organizations must learn to align reward policies

5
and types in line with employee’s aspirations in other to
maximize employee productivity.
Research on motivation has attracted academic and
corporate entities over the last two decades. In the present
study, authors have reviewed the intense literature to extract
all possible dimensions of motivation, having direct and
indirect impact on motivation techniques. This has examined
the multidimensionality of motivation from the existing
literature and present a conceptual framework based on it,
and it is experienced that various motivation techniques
(discussed in this study) are having a positive impact on both
employee satisfaction and the quality of performance in the
organization; however, the model needs to be validated
using quantitative measures. In order to study the various
issues highlighted in this paper related to employee
motivation, a large body of literature mainly from different
journals have been incorporated. To make the study more
current only those studies were included which were
published in the last two decades. In past research papers
few dimensions of motivation were used to explain the
different models motivation theory which has direct
influence on employee motivation. The novelty of this study
lies in its theoretical framework where authors have made an
attempt to come up with a construct having dimensions that
directly or indirectly influences employee motivation.

INTRODUCTION
Reward system is an important tool that management can use
to channel employee motivation in desired ways. In other
6
words, reward systems seek to attract people to join  the
organization to keep them coming to work, and motivate them
to perform to high levels. The reward system consists of all
organization components – including people processes rules
and decision making activities involved in the allocate of
compensation and benefits to employees in exchange for their
contribution to the organization.
In order for an organization to meet its obligations to
shareholders, employees and society, its top management
must develop a relationship between the organization and
employees that will fulfill the continually changing needs of
both parties. At a minimum the organization expects
employees to perform reliably the tasks assigned to them and
at the standards set for them, and to follow the rules that have
been established to govern the workplace. Management often
expects more: that employees take initiative, supervise
themselves, continue to learn new skills, and be responsive to
business needs. At a minimum, employees expect their
organization to provide fair pay, safe working conditions, and
fair treatment. Like management, employees often expect
more, depending on the strength of their needs for security,
status, involvement, challenge, power, and responsibility. Just
how ambitious the expectations of each party are, vary from
organization to organization. For organizations to address
these expectations an understanding of employee motivation
is required (Beer, Spector, Lawrence, Mills, & Walton, 1984).
Baron (1983) defines motivation as “a set of processes
concerned with the force that energizes behaviour and directs
it towards attaining some goal.” Kreitner and Kinicki (1992) 1
postulate that motivation represents “those psychological
processes that cause the arousal, direction and persistence of
voluntary actions that are goal directed.” If it is the role of
managers to successfully guide employees toward
7
accomplishing organizational objectives, it is imperative that
they understand these psychological processes. Schermerhorn,
Hunt and Osborn (1991) conceptualizes motivation as based
on content and process approaches. The content theories of
motivation emphasize the reasons for motivated behavior
and/or what causes it. These theories specify the correlates of
motivated behaviour that is states, feelings or attitudes
associated with motivated behaviour, and help to represent
physiological or psychological deficiencies that an individual
feels some compulsion to eliminate. Establishing this balance
and meeting this need is one of the first reasons, according to
Deprose (1994) to reward and recognize employees. Formal
reward programme which denote financial rewards such as
salary, fringe benefits, bonuses, promotions.

BACKGROUND OF THE STUDY

Increasingly, organizations are realizing that they have to
establish an equitable balance between the employee’s
contribution to the organization and the organization’s
contribution to the employee. Establishing this balance is one

8
of the main reasons to reward employees. Organizations that
follow a strategic approach to creating this balance focus on
the three main components of a reward system, which
includes, compensation, benefits and recognition. Studies that
have been conducted on the topic indicates that the most
common problem in organizations today is that they miss the
important component of Reward, which isthe low-cost, high-
return ingredient to a well-balanced reward system. A key
focus of recognition is to make employees feel appreciated
and valued. Research has proven that employees whoget
recognized tend to have higher self-esteem, more confidence,
more willingness to take onnew challenges and more
eagerness to be innovative.
The research intends to investigate the effect of reward system
on the motivational level of employees.

CHAPTER-1 INTRODUCTION TO CONCEPT

IMPACT OF COMPENSATION

9
A Compensation package does not necessarily mean
rewarding in the monetary form. It also includes flexible
benefits, medical care, work-life balance, as well as
employee perks. Today’s Employee’s not only work for the
money, but also place equal emphasis on other aspects of
compensation. A good compensation package ensures:
 Retention- A compelling compensation plan helps to
reduce the turnover rate of the company. Employees
will be more incentivized to stay in their role and this
saves potential expenses related to turnover.
 Motivation- Compensation is the primary motivating
factor for employees to continuously push themselves
to strive for greater heights. It offers them a reason to
work hard and keep driving towards achieving the next
milestone. On the other hand, employee performance
and efficiency can be drastically affected if a good
compensation package is absent. Here are a few reasons
why:

 Low job satisfaction- Employees will feel

underappreciated and derive low satisfaction form their
job. This may lead to discontent amongst co-workers
and put a dent in workplace morale.

10
  Low productivity- Poor compensation includes low
productivity. There is less motivation for employees to
strive for excellence.

 High turnover- If the reward versus effort ratio is low,

employees are incentivized to cast their sights away
from their current job. Employee churn incurs a hefty
cost to the company (retraining, relocating and time
wasted).
Systemize Your Compensation Planning Process Today
A well-crafted compensation plan is imperative to the success
of the company. But many of today’s compensation
processes rely on Excel spreadsheets that offer no room for
optimization and streamlining. Using specialized
compensation software to plan compensation allows
compensation managers to use hard data to identify
compensation strategies that provide the greatest return on
investment.

REWARD SYSTEM

11
Reward system is an important tool that management can use
to channel employee motivation in desired ways. In other
words, reward systems seek to attract people to join  the
organization to keep them coming to work, and motivate them
to perform to high levels. The reward system consists of all
organization components – including people processes rules
and decision making activities involved in the allocate of
compensation and benefits to employees in exchange for their
contribution to the organization.

The reward system is a group of neural structures that are

critically involved in mediating the effects of reinforcement. A
reward is an appreciative stimulus given to a human or some
other animal to alter its behaviour. Rewards typically serve as
reinforces.
A reward system is important for the employee performance.
As employee performance will be more effective to high
reward system. That how to be high performance is base high
reward vice versa. Job performance is also part of human
resources management. Performance is an important for the
organisation succession and achieving the goals. There is so
much changing occurring in the school education in the world
an every school has much relay on employee’s good
performance. Rewards are considered an important tool to
check the employee’s performance in every organization.
Management use rewards for employees motivations. So we
can say that effective reward system attract new employees
for organization and motivate existing employees to perform
12
high levels. Employee’s good work is necessary to achieve the
specific goals. Employees give their good efforts for achieving
goals and good effort depends on rewards. In other words we
can say that good rewards are most important way to engage
the employees with their work and with their organization.
Schuler and Jackson(1996), the connection and relationship
between rewards, motivation and job satisfaction of
employees have much significance to success of both public
and private sectors. Employees want to get both types of
rewards means financial and non-financial reward. Some
opportunity to like an important tasks and projects, attention
and encouragement of leadership. In this way employees feel
that they are being valued by the employers and also feel
that the company is seriously involved in employee’s career
and development. So there rewards contribute to improve
the satisfaction level of workmen(Dewhurst,2010).
Rewards and their Influence are becoming an issue of
concern for all. Therefore effective reward management
deals with setting processes, policies and strategies. Such
practices are required to ensure that the contribution of
employees to the business is recognized by those responsible
for the running of the organization. The main theme of
reward management is to reward employees fairly, equitably
and consistently in correlation to the value of these
individuals to the organization. Reward system exists in order
to make employees work towards achieving strategic goals

13
through enhancing their productivity and performance levels.
Reward Management is not only concerned with pay and
employee benefits. It is equally concerned with non-financial
rewards such as recognition, training, development and
increased job responsibility.

MOTIVATION
(Beer, Spector, Lawrence, Mills, & Walton, 1984). Baron
(1983) defines motivation as “a set of processes concerned
with the force that energizes behaviour and directs it
towards attaining some goal.” Kreitner and Kinicki (1992) 1

14
postulate that motivation represents “those psychological
processes that cause the arousal, direction and persistence of
voluntary actions that are goal directed.” If it is the role of
managers to successfully guide employees toward
accomplishing organizational objectives, it is imperative that
they understand these psychological processes.
Schermerhorn, Hunt and Osborn (1991) conceptualizes
motivation as based on content and process approaches. The
content theories of motivation emphasize the reasons for
motivated behavior and/or what causes it.

Impact of Reward Systems on Employee Motivation

Employee’s work and satisfaction are what determines the level of
progress, their performance, and how productive the employee
would be in their respective jobs. Taking care of employees is very
important because most of the employees may not be happy with

15
their jobs due to many factors like excessive responsibilities and
workload, unsatisfactory rewards, etc. Hence interactions and solving
problems of employees are important. In many cases, the rewards
system is used as a tool to enhance the employees performance. The
main reward system implemented is an increase in salaries and
wages which is a monetary aspect of motivation. Every employee
needs a good salary package along with other benefits such as
bonuses, allowances, medical claims, etc. But with the corona
infection everywhere, the created lockdown situation is making the
work progress slow and hard for the employees. Employees are
working through internet calls and online video conferences for
completing their projects and employees are losing interest because
of working in a home environment. But still, the firm is doing its best
to provide monetary and non-monetary rewards to keep the
employees motivated. Employees are credited with their agreed
salaries to their bank accounts to keep the continuous flow of work.
When it comes to non-monetary rewards, the first thing is that
learning and training opportunities are provided to employees who
do not have much knowledge about their area of expertise because
this is the best time to improve and motivate employees sitting at
their homes which is quite difficult during the normal busy working
hours. The second thing is employees are given recognition as they
attend meetings and show their best efforts to finish the work during
such hard times.

Factors Affecting Motivation

Motivation is an important aspect of an employee as it helps
determines if the employee is satisfied with his/her working
condition and shares the same organizational vision. An employee
who is satisfied with his/her job would be „motivated‟ and is much
likely to perform better. Whereas, an unsatisfied employee would
16
need to be pushed to work using different motivational tools and
techniques (Kroon, Woerkom, & Menting, 2017). The first tool
presented is rewards and remuneration. Employee satisfaction and
remuneration have a direct relationship with each other. The
affection towards money is what drives the employees to work
better. It is previously known and seen by many motivational
theorists and researches that money is the most motivating factor
Reward packages do acts as a positive factor that highly affects
motivation towards employees. If the employees are provided with a
higher salary, then that could result in a better performance of the
employee. The second strategy or technique advised is changing the
leadership style. If the superiors maintain a healthy relationship with
the subordinate, then it affects the work progress of the employees
as there would be no communication barrier between them. This
helps the employees to share their problems and grievances or
discuss any difficulty they are facing while working. The superior can
find an alternative solution and therefore can motivate the employee
by guiding and encouraging the subordinate. There are various other
strategies advised that positively affect an employee‟s motivation
such as employee engagement, ob rotation, delegation, and so on.

Drawbacks of Low Motivation

Low motivation can cause many issues in an organization. This can
lead to companies having a major dip in their performance for some
time. One of the major drawbacks of low motivation is a decrease in
productivity. An employee slaking of work due to a dip in motivation
can lead the entire team in a major fall back in productivity. Just one

17
employee can easily decrease productivity drastically and can
influence others as well. An unmotivated employee will have a hard
time in overcoming difficulties. A decline in performance is another
drawback of low motivation. When an unmotivated employee is
given a challenging task, he or she may postpone it subconsciously
and move to an easier task without understanding the underlining
problem. The employee soon loses their interest in their job and
stops caring about being on time to work or in general are not
abided to follow organizational rules and regulations . This leads to
higher costs for the business, which means in financially difficult
times it could be a difference between going out of business or
staying above water. Unmotivated employees come to the
workplace with little or no enthusiasm to work. This will steer to
working just for their pay check and nothing more. Over time, they
could lose passion for work or at worse feel depressed. There are
various drawbacks to low motivation that can affect not only the
employees but the company as well. Due to the current COVID-19
pandemic crisis, a sense of panic has been created among
individuals. The organization needs to tackle this stress to prevent
the employees from feeling de-motivated. 3.10 Effect of Good
Reward System on Employee Motivation.

Effect of Good Reward System on Employee Motivation

A well organized, fair and, just reward and recognition system
positively affects employee motivation. Reward systems help
influence employee motivation as the employee feels „recognized‟
or seen by their superiors for their hard work . This makes the
employee feel valued and appreciated by its association for the hard
18
work he/she puts in and therefore leads to increased motivational
levels and increased enthusiasm. A fair and just reward system also
helps build up potential in the employee and pushes the employee to
work hard. This usually results in better performance leading to
increased employee productivity. Often, employees do not perform
up to their potential or work hard for their jobs because of low
interest or motivation to complete their tasks assigned. Therefore, it
is important to present the employees with that „need‟ or
motivating factor that would boost their motivation and desire to
complete the task efficiently. Reward systems play a significant role
in boosting employees‟ motivation and giving them the reason to
perform better. For instance, a simple target such as increase
productivity by 10% this month would result in bonus that would
automatically motivate the employee to achieve this target.
Moreover, rewards are not necessarily presented I „money‟ form. At
times, reward systems are nonfinancial techniques such as employee
of the month, an extra day off, and so on. Such rewards also increase
the employee‟s motivational levels as it likely to make him feel
valued and respected at his/her workplace.

PERFORMANCE EVALUATION

The Board of Directors carried out an annual evaluation of

the Board, its Committees and Individual Directors. The
Board carried out performance evaluation of each

19
Independent Director excluding the Independent Director
being evaluated. The Nomination Remuneration Committee
also carried out evaluation of every Director’s performance.
The evaluation was done after taking into consideration
inputs received from the Directors, setting out parameters of
evaluation. Evaluation parameters of the Board and
Committees were based on Disclosure of Information, Key
functions of the Board and Committees, responsibilities of
the Board and Committees, etc. Evaluation parameters of
Individual Directors the Board and Independent Directors
were based on Knowledge to perform the role, Time and
Level of Participation, Performance of Duties and Level of
Oversight and Professional Conduct etc. Independent
Directors in their separate meeting also evaluated the
performance of NonIndependent Directors, Chairman of the
Board and the Board as a whole.

HUMAN RESOURCE AND EMPLOYEE RELATIONSHIP

There is an ongoing emphasis on building a progressive Human

Resources culture within the organization. Structured initiatives that
foster motivation, teamwork and result-orientation continue to be

20
addressed. The Company has adopted “Policy for Prevention,
Prohibition and Redressal of Sexual Harassment at Workplace” and
has also constituted an Internal Complaints Committee (ICC). The
Directors further state that during the period under review,

there were no cases filed pursuant to the Sexual Harassment of

Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013.

There is an ongoing emphasis on building a progressive Human

Resources culture within the organization. Structured initiatives that
foster motivation, team work and result-orientation continue to be
addressed.

HUMAN RESOURCES FUNCTION

 Recruiting & Selection

 Training & development
 Performance Management
21
  Succession planning
 Employer-employee relations
 Maintain company culture
 Manage employee compensation benefits
 Create a safe work environment
 Handle displinary actions
 Human Resources Information System
 Human Resource Data & Analytics

HUMAN RESOURCES TO WORK

Human Resources or the people working in the Organisation
are the most important resource. Human Resource
Management is the process of employing people, training
them, compensating them, developing policies, relating to

22
the workplace, and developing strategies to retain
employees.
Human Resources is responsible for managing the
employee life cycle.
( i.e.,recruiting , hiring, onboarding, training and firing
employees ) and administering employee benefits.

CHAPTER-3 Literature review

In a complex and dynamic environment, leader of the organization

used to create the environment in which employee feel trusted and
are empowered to take decisions in the organization which leads to
enhance motivation level of employee and ultimately organizational
23
performance are enhanced. Smith and Rupp (2003) stated that
performance is a role of individual motivation; organizational
strategy, and structure and resistance to change, is an empirical role
relating motivation in the organization. Likewise, Luthan and
Stajkovic (1999) concluded that advancement of human resources
through rewards, monetary incentives, and organizational behaviour
modification has generated a large volume of debate in the human
resource and sales performance field. According to Orpen (1997)
better the relationship between mentors and mentees in the formal
mentoring program, the more mentees are motivated to work hard
and committed to their organization. Likewise, Malina and Selto
(2001) conducted a case study in one corporate setting by using
balance score card (BSC) method and found out that organizational
outcomes would be greater if employees are provided with positive
motivation. The establishment of operations-based targets will help
the provision of strategic feedback by allowing the evaluation of
actual performance against the operations-based targets.
Goaldirected behavior and strategic feedback are expected to
enhance organizational performance (Chenhall 2005). Kunz and Pfaff
(2002) stated no substantive reason to fear an undermining effect of
extrinsic rewards on intrinsic motivation. Decoene and Bruggeman
(2006) in their study developed and illustrated a model of the
relationship between strategic alignment, motivation and
organizational performance in a BSC context and find that effective
strategic alignment empowers and motivates working executives.
Leaders motivate people to follow a participative design of work in
which they are responsible and get it together, which make them
responsible for their performance. Aguinis et al. (2013) stated that
monetary rewards can be a very powerful determinant of employee
motivation and achievement which, in turn, can advance to
important returns in terms of firmlevel performance. Garg and
24
Rastogi (2006) identified the key issues of job design research and
practice to motivate employees’ performance and concluded that a
dynamic managerial learning framework is required to enhance
employees’ performance to meet global challenges. Vuori and
Okkonen (2012) stated that motivation helps to share knowledge
through an intra-organizational social media platform which can help
the organization to reach its goals and objectives. Den and Verburg
(2004) found the impact of high performing work systems, also called
human resource practices, on perceptual measures of firm
performance. Ashmos and Duchon (2000) recognizes that employees
have both a mind and a spirit and seek to find meaning and purpose
in their work, and an aspiration to be part of a community, hence
making their jobs worthwhile and motivating them to do at a high
level with a view to personal and social developments.

CHAPTER-4 RESEARCH METHODOLOGY

The primary objective to write this review is to highlight the

flow of motivation and reveals what motivation technique

25
works more efficiently in different stages of life. This study
provides useful managerial implication for employee
motivation in an organization. The dimensions are made fit
into a model that can benefit organization to enhance their
performance; however, the model needs to validate through
case study or quantitative study. To study the various issues
highlighted in this study related to employee motivation, this
study reviews a large body of literature mainly in different
journals. Once all the issues have been identified, each issue
is used as a keyword to search the relevant literature.

Research Methodology Adopted

 Research Design : Descriptive Research

 Research Instrument : Structure Questionnaire

 Duration : 4 weeks

CHAPTER-5 RESEARCH OBJECTIVES

Maintaining the employee performance ,salary ,reward,

Indirect Compensation and Employee Performance with new
technology.

26
 1. To strengthen areas of current excellence, in order to
reinforce department identity, cohesion, and
opportunities for internal collaboration and student
involvement.

2. To develop cooperative research relationships within

and outside the computer science discipline, as well as
with industry, government, alumni and local
organizations.

3. To continue to pursue a high level of research

productivity.

4. To assume leadership in our research areas of excellence.

5.    To appraise the nature of reward system

6.      To appraise the nature of employee motivation
7.    To determine the effect of reward system on the
motivational level of employees
8.    To determine the effect of reward system on the
motivational level of employees of selected investment
companies in lagos metropolis.
The study shall project the importance of reward system on
the motivational level of employees and shall serve as a
source of information for managers, human resource
experts,etc.

27
CHAPTER-6 STATEMENT OF HYPOTHESIS
1. H0- Motivational level of employees in selected investment
companies in Lagos is low
H1    Motivational  level of employees in selected investment
companies in Lagos is high
2. H0-  Reward system in selected investment companies in
Lagos is low

28
H1 Reward system in selected investment companies in Lagos
is high
4. H0-  The effect of  reward system on employee
motivational level  in selected investment companies in
Lagos is low.
H1-The effect of reward system on employee motivational
level in selected investment companies in Lagos is high.

CHAPTER-7 STATEMENT OF THE PROBLEM

The problem confronting this research is to appraise the effect
of reward system on the motivational level of employees; with
a case study of selected investment companies in Lagos
Metropolis.

29
CHAPTER-8 Tools of Data Collection

A questionnaire was prepared to collect data from the

employees on the various aspects of rewards and recognition
desired by the researcher.

30
CHAPTER-9 Source of Data Collection
Primary data

It comprises of the data which was collected through the

questionnaires filled by the respondents.

Secondary data
It comprises of the data which was collected through books,
31
journals, articles, magazines and websites.

CHAPTER-10 Research Design

This research explores the difficult situations and experiences of the

employees which is why exploratory research has been chosen. Their
opinions and feedback from the foundations of the research.
Exploratory Study is a method that helps the researchers to get
answers to primary research questions by using organized data
collection techniques that provide the required and expected

32
responses to the primary questions . The qualitative data approach
was involved as it pertains to the insight issues and the
understanding through human interactions. Qualitative research
allows us to see the larger picture and helps us to answer the
conditional problems of the organization. This research design helps
to explore employee-work relationship vastly. The exploratory study
creates room for us to describe our own preferences and ideas about
the whole situation. The main aspect of this research study is that it
helps us to frame and respond to the ethical considerations of the
project. This type of study helps to understand the participant‟s
point of view on a large scale. The perceptions of people cannot be
measured and therefore this type of qualitative data requires
exploratory study as our research tool.

CHAPTER-11 Population, Sample Size, and Sampling

Technique
The studied organization has a population of around 70-80.
A sample is defined as the specific amount of people that you
study or observe from your total population. There are
various sampling techniques used over time. Sampling is
divided into 2 forms – probability and non-probability

33
sampling. Probability sampling is further divided into 4 forms.
The first form is known as Simple random sampling, the
second is known as Systematic sampling, the third is known
as stratified sampling and the last is known as cluster
sampling . The sampling technique used for this research was
stratified sampling. Stratified sampling is used when a mixed
sample is used. Meaning, people with different
characteristics, ages, incomes, etc. Stratified sampling then
divides these different characteristics of people and makes
them in selected groups of people with the same age,
gender, income, and so on. This technique made the data
collection process easier and the research more identifiable
and understandable. The sample size for the study was 30
out of which 20 were males and 10 were females.

CHAPTER-12 ANALYSIS

The analysis of respondent revealed that the questionnaires

were filled in majority by males. The reason for this majority

34
of male respondent was that male employees were easier to
approach than female. Despite of the majority of male
respondent we can generalize our finding to the general
population because both male and female face the same
issues of compensation and reward system.

CHAPTER-13 Data Analysis of Questionnaire

The following results were received and analyzed with the

help of a questionnaire.
1. Which of the following factors do you believe causes low
employee motivation?

35
 2.How does motivation impact your performance at work?

3. In your opinion, which factor would help in increasing employee

motivation?

4. Do you feel that employee motivation is impacted

by rewards and recognition system?

36
 2.
5.Do you think a good rewards system is essential at the
workplace?

6. How does the rewards and recognition program help you as an

employee?

37
7. Which of the following is a sign of a poor reward and
recognition system?

8. Gender of Respondent …………………………

a. Male

b. Female

No. of Respondent

9. Normal working hours per day

c. Less than 8 hours

d. 8-10 hours
38
 e. 10-12 hours

f. Above 12 hours

10. Age of the respondent

a. 18-23 No. of Respondent.

b. 24-29

c. 30-35

d. 36-41

e. 42-47

f. 48 and above

No. of respondent

11. Family of the respondent

a. Joint family

b. Nuclear family

c. Extend family

39
 No. of respondent

12. Marital status of the respondent

a. Single

b. Married

13.Do you know about reward?

a. Yes

b. No

40

No. of respondents
 14. If yes , then what does it mean?

a. Motivation of employee

b. b. No motivation of employee

c. No impacts

d. d. Any other

. No. of respondents

15. Does the Reward bring positive impact 0n employees

performance?

a. Yes

b. No

41
 No. of respondents

16. If yes, clarify for the what aspect.

a. Keeps more employee

b. Lower turnover

c. To achieving the target goals

d. Any other

No. of respondents
.

17. Which Reward is more important for employee to motivate.

a. Financial Reward

b. No- financial Reward

c. Any other

42
18. Pay decision are linked to performance achievements?

a. yes

b. No

19. The Reward system facilitates implementation of strategy

by motivating desired levels of performance.

a. Yes

b. No

20. The Reward system facilitates the implementation of

strategy by attracting and retaining the right kind of people.

A. Agree

43
 b. Strongly agree

c. Disagree

21. In what way can employers encourage employees.

a. By Compensation No. of respondents

b. By Reward

c. By Promotion

d. All are these

22. How often are employees rewarded and/or recognized?

a .On their birthday

b. Annually

44
 c. On work anniversary

d. At the end of a project

23. Who oversees the administration and implementation of

your reward and recognition program?

a. Compensation specialists

b. Human resource

c. CEO

d. Managers

CHAPTER-14 FINDINGS

FINDINGS

45
CHAPTER-19 ANNEXURE

19.1 BIBILIOGRAPHY

 http://www.alfribary.com
 http://iosrjournals.org.com
 http://www.slideshare.net.com
 http://cribfb.com
 http://www.thesus.fi.com
 http://ijrar.org.com
 http://abacademies.org.com
 http://opentextbc.com

46
19.2 QUESTIONNAIRE FORM

The Impact Of Compensation and Reward System On

Performance Of Employees Working In CFSL

1. Gender of Respondent

a. Male

b. Female

2. No. of respondent………..

3. Age of the respondent

a. 18-23

b. 24-29

c. 30-35

47
 d. 36-41

e. 42-47

f. 48 and above

4. Family of the respondent

a. Joint family

b. Nuclear family

c. Extend family

5. Marital status of the respondent

a. Single

b. Married

6. Do you know about reward?

a. Yes

b. No

7. If yes, then what does it mean?

48
 a. Motivation of employee

b. No motivation of employee

c. No impacts

d. Any other

8. Does the Reward bring positive impact 0n employees

performance?

a. Yes

b. No

9. If yes, clarify for the what aspect.

a. Keeps more employee

b. Lower turnover

c. To achieving the target goals

d. Any other

10. Which Reward is more important for employee to

motivate.

49
 a. Financial Reward

b. Non financial Reward

c. any other

11. Pay decision are linked to performance achievements?

a. yes

b. No

12. The Reward system facilitates implementation of strategy

by motivating desired levels of performance.

a. Yes

b. No

13. The Reward system facilitates the implementation of

strategy by attracting and retaining the right kind of people.

a. Agree

b. Strongly agree

c. Disagree

50
14. In what way can employers encourage employees.

a. By Compensation

b. By Reward

c. By Promotion

d. All above

15. How often are employees rewarded and/or recognized?

a. On their birthday

b. Annually

c. On work anniversary

d. At the end of a project

16. Who oversees the administration and implementation of

your reward and recognition program?

A. Compensation specialists

b. Human resources

51
 c. CEO/President

d. Managers

19.3 RESEARCH QUESTION

1.      What is the nature of reward system?

2.     What is employee motivation?

3.      What is the effect of reward system on the motivational level of employees?

4.      What   is  the nature of reward system of selected investment companies in Lagos
Metropolis?

52
53
54