BACHELOR THESIS Major Enterprise Management Topic INFLUENCES OF REWARDS AND RECOGNITION ON EMPLOYEE PERFORMANCE AT HIEN LONG FASHION LIMITED COMPANY TABLE OF CONTENTS ACKNOWLEDGEMENTS i TABLE OF CONTE.
INTRODUCTION
Rational
In the competitive business landscape, entrepreneurs are increasingly focused on enhancing quality while reducing costs However, a robust economy has led to a tight labor market, creating a scenario where small businesses demand more from their employees, who in turn seek greater rewards and recognition Implementing employee reward and recognition programs can effectively motivate workers to adapt their work habits and behaviors, ultimately benefiting the company.
To enhance employee satisfaction and productivity, organizations must adopt tailored methods and standards, particularly in call centers where our study's findings can improve reward systems, recognition, and stress management Understanding employee behavior within organizations is crucial, and skills in Human Resources Management (HRM) and Organizational Behavior (OB) are essential for predicting and managing this behavior In today's competitive landscape, businesses need to leverage their workforce effectively while addressing critical issues such as workforce diversity, employee rights, and evolving work attitudes OB focuses on a select range of work-related attitudes that influence employees' perceptions of their workplace, ultimately impacting overall organizational success.
Employee job performance is a critical challenge in organizational management, as businesses strive to enhance productivity and competitiveness The decline in employee performance, particularly in Nigerian tertiary institutions, poses a significant threat to their survival, emphasizing the need for urgent intervention Effective employee performance is essential for organizational growth and profitability, as employees are vital resources that facilitate daily operations Organizational effectiveness hinges on employee satisfaction, which directly influences productivity Job satisfaction encompasses a range of emotions and expectations that impact an employee's motivation and performance A high level of job dissatisfaction among employees can lead to negative attitudes and decreased performance, threatening organizational viability Therefore, prioritizing employee well-being and recognizing their contributions is crucial for optimal job performance This research will explore the effects of incentives and recognition on employee performance, using empirical evidence from Hien Long Fashion Company Limited to address these human resource challenges.
Objectives of the study
Based on the research problems, the objectives of this research are:
1 To know the influence of reward on employee performance at Hien Long Fashion Co Ltd.
2 To know the influence of recognition on employee performance at Hien Long Fashion Co Ltd
3 To identify suitable recommendations to make the reward and recognition system more effective.
The Subject and scope of research
This study focuses exclusively on the employees of Hien Long Fashion Co Ltd, constrained by time limitations that restrict its scope to this organization It specifically targets respondents in low-level management positions or below To assess the current status of HLF's incentive and recognition programs, the research utilizes company statistics from 2018 to 2021, alongside data collected from employees A total of 50 individuals participated in this research.
Research methodology
I conducted a survey on employees of Hien Long Fashion Co Ltd The hypothesis was investigated using regression analysis and descriptive analysis after several scales were constructed to measure the variables.
Thesis structure
The thesis will be divided into 5 chapters:
Chapter 2: Literature Review and hypothesis development
LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT
Reward and recognition
According to the Oxford Dictionary, a reward is defined as "anything offered in acknowledgment of service, effort, or achievement," and organizations utilize rewards for various purposes Employees receive rewards as recognition for their valuable contributions, which fosters a positive work environment Without rewards, organizations may create a negative atmosphere that can hinder employee motivation The primary aim of implementing rewards is to retain staff, although monetary rewards may not serve as effective long-term motivators.
Reward systems, including status, commissions, and recognition, play a crucial role in enhancing the working atmosphere and boosting employee performance When employees are acknowledged for their creativity, it not only improves their productivity but also helps organizations attract more qualified candidates Implementing effective reward programs is essential for companies aiming to recruit and retain talent, as these systems contribute to greater job satisfaction and reduced staff turnover.
Rewards are crucial in enhancing job performance, as they are influenced by both the amount offered and personal significance attached to them Effective managers acknowledge employee accomplishments through tangible rewards, fostering loyalty and workability Employees in challenging roles that utilize their skills report higher job satisfaction Incentives, rewards, and recognition are essential components of modern motivation programs, linking employee performance to organizational success Promotions not only facilitate personal growth and increased responsibility but also elevate an individual's social standing With appropriate rewards and recognition, employees find greater fulfillment in their roles, leading to improved productivity and performance over time.
H1 = Reward has influence to employee performance at Hien Long Fashion Co Ltd.
Employee recognition, a form of verbal appreciation for performance, can be delivered in both formal settings like meetings and informal gestures such as a simple "pat on the back." This acknowledgment boosts employees' self-esteem and satisfaction, ultimately leading to increased motivation and productivity in their contributions.
Employee recognition is a vital factor in enhancing motivation within a company, as it encompasses how an employee's performance is evaluated and the admiration they receive from their employer This process involves rewarding and promoting employees based on their efforts and achievements The significance of recognition was assessed using Spector's Job Satisfaction Survey (1985), which included a recognition satisfaction item measured on a 5-point Likert scale, from strongly disagree to strongly agree, with reverse coding applied when necessary An example statement from the survey is, "When I perform an excellent job, I receive the accolades that I deserve."
Employee recognition plays a vital role in determining their status within a company, significantly influencing motivation and job satisfaction When employees feel valued and included in decision-making processes, they exhibit greater enthusiasm and commitment to their work According to Maslach et al (2001), this involvement fosters a more engaged and motivated workforce.
“while a lack of rewards and recognition can lead to burnout, appropriate recognition and reward is important for performance.”
Employee recognition is a vital management strategy that enhances motivation and boosts performance among staff Numerous empirical studies indicate a strong correlation between employee recognition, motivation, and overall performance.
Research indicates a strong link between employee recognition and performance, with public acknowledgment leading to significant improvements in productivity Recognition enhances employees' psychological well-being, making them feel valued within the organization, which in turn positively influences their overall performance.
Employee performance recognition techniques are vital for organizations aiming to enhance employee satisfaction and motivation By implementing robust recognition programs, employers can significantly boost workplace efficiency Notably, employees have indicated that acknowledgment of their efforts is more impactful in driving engagement, performance, and innovation than traditional incentives like bonuses or salary increases.
1033 ] Considering the above relation between recognition and employee performance, the hypothesis is stated as below.
H2 = recognition has an influence on employee performance at Hien Long Fashion Co Ltd.
2.1.3 Difference of rewards and recognition
Rewards are tangible assets that hold intrinsic value, whether they are material or monetary In contrast, recognition is an intangible form of appreciation It is essential to acknowledge achievements before presenting any rewards, as recognition enhances the significance of the prize.
Transactional rewards are inherently transactional, while recognition is fundamentally relational Achieving "X" guarantees a reward of "Y," but true recognition fosters meaningful connections among individuals While rewards effectively attract new employees, it is recognition that plays a crucial role in retaining them.
Rewards are often fleeting, as they are typically spent or consumed quickly, such as money or gifts In contrast, recognition provides a profound and memorable experience, creating a unique and intimate connection By thoughtfully balancing both rewards and recognition, we can better navigate our individual differences.
Rewards can be transferred between individuals, creating a permanent transaction, while recognition remains personal and cannot be shared To maximize impact, focus on achieving lasting acknowledgment, while also leveraging the immediate benefits that tangible rewards can offer.
Rewards are anticipated outcomes for good performance, while recognition often comes as an unexpected surprise It's essential to acknowledge that individuals enter situations with the expectation of rewards for their efforts, yet recognition can catch them off guard To foster a positive environment, never overlook the importance of giving well-deserved rewards and consistently practicing appreciation and celebration in everyday interactions.
Rewards are a strategic use of resources within the economy of production, distribution, and income, emphasizing their economic value In contrast, recognition serves as an emotional experience that resonates deeply with individuals While talent is crucial, it is the emotional connection that truly holds power in the workplace.
Employee performance
Employee job performance is a critical concern for organizational managers, as it significantly impacts a company's success To foster good performance, businesses must thoroughly analyze the factors that contribute to it Job performance serves as a key benchmark for various HR decisions, including promotions, layoffs, incentives, and salary adjustments Additionally, it plays a vital role in helping employees realize their potential, reflecting their overall attitudes and contributions to the organization's success.
Employee performance is a crucial factor that encompasses an individual's beliefs about their contributions to organizational success, influenced by compensation, performance evaluations, and promotional practices It serves as an indicator of both financial outcomes and overall organizational achievement, with key determinants including workplace atmosphere, leadership, relationships with coworkers, training, career development, reward programs, and overall well-being Research indicates that enhancing employee performance is possible through targeted training and development initiatives Ultimately, effective employee performance fosters innovation and improves overall firm performance, as motivated and engaged employees generate new ideas and enhance product quality, operational efficiency, and customer satisfaction.
Employee performance is significantly influenced by their belief in their contributions to the organization's goals, as noted by Ahmadi (2011) Key benchmarks for assessing this performance include remuneration standards, evaluation practices, and promotion criteria An individual's performance is closely tied to the overall success of the organization, as highlighted by Ani (2014), who emphasizes the impact of workplace atmosphere, relationships with supervisors and peers, and compensation procedures Furthermore, Ala (2015) suggests that regular training and development play a crucial role in enhancing employee performance Thomas and Feldman (2010) categorize employee performance into core job performance, which includes in-role and security performance, as well as innovation, while also recognizing the importance of organizational citizenship behaviors The dimensions for evaluating employee performance identified in Lia's (2012) research provide a comprehensive framework for understanding these dynamics.
Employee performance fosters innovation within the workforce and enhances overall company performance When motivated and dedicated employees thrive, they generate innovative ideas for new products and services, leading to improved quality of work and increased customer satisfaction.
Performance measurement is essential for a reward strategy as it highlights the importance of organizational goals, emphasizing that "what gets measured and rewarded gets attention" (Bohlander et al, 2001) Key indicators for assessing employee performance include quality, measured by the percentage of work needing rework; customer satisfaction, gauged by loyal customers and feedback; timeliness, determined by the speed of task completion; absenteeism/tardiness; and the achievement of objectives, where surpassing targets indicates strong performance (Hakala, 2008; Armstrong, 2006) Successful individual performance is increasingly recognized as a product of individual ability and motivation, influenced by planning and a supportive environment, which includes clear performance objectives, adequate resources, and managerial guidance Furthermore, human resource policies and practices significantly affect both organizational and individual performance.
Relationship between Employee Recognition and Job Performance
Recognizing employees is crucial for maintaining their self-esteem and motivation, leading to enhanced performance Motivated employees are more engaged and driven, which directly contributes to achieving business goals The link between employee recognition and performance is strong; when employees feel valued, their morale increases, resulting in higher productivity and overall effectiveness in the workplace.
Relationship between rewards and job performance
Rewarding employees significantly enhances their motivation and job performance, as they feel valued and recognized for their efforts Effective reward systems in the workplace encourage desirable behaviors and outcomes, leading employees to adopt practices that boost their performance Consequently, this increased effort benefits both the organization and its employees, ultimately resulting in improved outcomes and greater success for the company.
Previous research of Influences of rewards and recognition on
A study conducted in Pakistan explored the impact of reward and recognition on job satisfaction and motivation The research revealed a significant correlation between various aspects of job motivation and satisfaction, highlighting that incentives and recognition play a crucial role in enhancing employee motivation.
This study explores the development of an employee performance program centered on employee satisfaction It highlights the strong correlation between employee satisfaction and performance, indicating that enthusiastic employees tend to achieve higher performance levels.
Research indicates that employee recognition and rewards play a crucial role in enhancing job performance, while job stress adversely affects it Specifically, positive reinforcement through rewards and acknowledgment significantly boosts employee performance, whereas high levels of job stress lead to a decline in performance outcomes.
Research by Zee (2013) highlights the positive impact of rewards on employee job performance and satisfaction, revealing a strong correlation between both intrinsic and extrinsic rewards and enhanced job outcomes.
A study conducted by Sha16 highlighted the significant influence of rewards and recognition on employee engagement at PT Bank Sulutgo in Manado The findings suggest that effective rewards and recognition strategies can enhance employee motivation, leading to improved performance and increased profitability for the company.
A study by Min (2021) examined the impact of a total rewards system on employee performance within Bangladesh's leather industry, highlighting the roles of psychological empowerment and motivation The findings indicated that both internal and external reward statuses positively and significantly influence the relationships among total rewards, motivation, and employee performance.
A study on the impact of rewards on employee performance in the commercial banks of Bangladesh revealed a statistically significant relationship between various independent variables and employee performance The findings indicate that all independent variables positively influence employee performance, highlighting the importance of effective reward systems in enhancing productivity.
Research indicates that rewards and recognition significantly enhance employee motivation and job satisfaction To achieve the best outcomes from motivational strategies, managers must acknowledge and understand the unique values, beliefs, and practices of each individual.
RESEARCH METHOD
Research framework
The research investigates how rewards and recognition influence employee performance at Hien Long Fashion Co Ltd In this study, employee performance is considered the dependent variable, while rewards and recognition serve as the independent variables.
H1 = reward has an influence on employee performance at Hien Long Fashion
H2 = recognition has an influence on employee performance at Hien LongFashion Co Ltd.
Data collection
Secondary data refers to information gathered from various sources such as books, journals, articles, magazines, and websites This data is obtained from internal sources, including the HLF manual policy and HLF HR reports.
The questionnaires were specifically crafted for current HLF staff to gather feedback on the existing reward and recognition program A total of 53 questionnaires were distributed directly to employees to assess their preferences regarding rewards and recognition Ultimately, 50 completed questionnaires were returned, providing valuable insights for the research.
The scales were used to gather the measurements and tools The data was collected using a 5-point Likert Scale 5 represents "strongly agree," 4 represents
"agree," 3 represents "neutral," 2 represents "disagree," and 1 represents
"strongly disagree" on a 5-point Likert scale.
Data Analysis Method
The design of questionnaires aims to conduct validity and reliability tests to confirm the hypothesis and assess the relationship between variable Y and variables X1 and X2 Survey data is analyzed using the Pearson Product Moment method, while the Alpha Cronbach's coefficient serves as a reliable measure of the correlation among elements within a construct A research instrument is considered valid if the correlation probability is below 0.05 (5 percent) and each correlation value exceeds 0.3 In this study, the Alpha Cronbach reliability test was employed, with a reliability threshold set at 0.6; values below this indicate unreliability According to Sekaran (2003; 311), the interpretation of Alpha Cronbach's results is crucial for assessing the quality of the research instrument.
1 < 0.6 0.6 indicates that the data is untrustworthy or has an insufficient internal consistency.
2 0.7 indicates that the data is acceptable
3 0.8 indicates good internal consistency or considers that the data resulted is reliable.
Multiple regression analysis is a statistical method that examines the relationship between two or more independent variables and a dependent variable measured on an interval scale Linear regression serves as a foundational model for exploring these relationships, while multiple linear regression extends this concept to illustrate how a dependent variable is influenced by multiple independent variables simultaneously.
Multiple linear regression analysis was performed using SPSS 20.0 application The analysis of a multiple linear regression analysis using the SPSS 20.0 application can be formulated as follows:
+ Notes: b: Beta a: Alfa or constant e: Error
The coefficient of determination, represented as R², quantifies the percentage of variation in the dependent variable that can be explained by independent factors R² values range from 0 to 1, with higher values indicating a greater ability of independent variables to explain the variance in the dependent variable This suggests that a higher R² reflects a more accurate regression line that effectively represents the actual study results.
FINDINGS
Overview of Hien Long Fashion Limited company
4.1.1 History of formation and development
- Vietnamese name: Cong ty trach nhiem huu han mot thanh vien thoi trang Hien Long
- International transaction name: Hien Long Fashion Co Ltd
- Date of establishment: 3rd February 2016
- Type of business: Limited Liability Company one member with 100% Vietnamese capital
- Legal representation: Mrs Nguyen Thi Ly
- Address: Hamlet 3, Tam Hiep Commune, Phuc Tho District, Hanoi ã Tax code: 0107322088 ã Phone number: 02433649009
- The main areas of activities of the company are processing garments in the form of importing raw materials and exporting finished products, fabric wholesale
- “Management by objectives” is the dominant method of management of the company.
Hien Long Fashion operates under the guiding principle of "Client's Interests First," prioritizing the delivery of exceptional service and high-quality products This commitment to customer satisfaction is viewed as the key factor driving the company's success and reputation in the fashion industry.
- Vision: Customers trust Hien Long Fashion as the preferred global express and logistics partner, leading the industry in terms of quality and profitability.
1 To deliver excellent quality ã Our core business is to deliver excellent service – for any product, at any time, at any place. ã They provide their services based upon the demands of their customers in their national and international markets.
2 To make their customers successful ã Customer satisfaction is the No.1 factor ã Our customer’s success is their success They strive to establish long- erm business partnership with their customers.
Hien Long Co., Ltd was established on February 3, 2016, amidst significant changes in the economy and the textile and garment industry following over 20 years of economic reform in Vietnam As a small to medium-sized enterprise with 100% Vietnamese equity, the company operates as a Limited Liability Company and is legally recognized by the Hanoi Department of Investment Planning With a six-year operational history, Hien Long Co., Ltd has navigated both the challenges and opportunities presented by the evolving industry landscape.
- 3rd February 2016: Established with the name “Hien Long Fashion Co Ltd”
- June 2018: The construction of Hien Long Fashion 1 Bonded Warehouse started with a total floor area of 1800 square meters.
- December 2019: Commenced the operation of Hien Long Fashion 1 Bonded Warehouse with total floor area of 1800 square meters.
Hien Long Fashion Co Ltd specializes in various sectors, primarily focusing on garment processing that involves importing raw materials and exporting finished products The company also engages in ready-to-wear production, excluding costumes, and offers a diverse range of clothing items, excluding fur leather Additionally, Hien Long Fashion Co Ltd operates in the wholesale market for fabrics, ready-to-wear goods, and shoes.
Because the company's products are diverse and plentiful, the company's customers have many types: a/ About customers and domestic markets
To establish long-term and sustainable contracts, the company should engage with both large and small businesses, as well as households, that utilize its products as raw materials in the production of high-quality finished goods like fabrics and fibers.
The company delivers its ready-to-eat products to domestic consumers, supermarkets, wholesalers, and retailers across the country Despite facing numerous competitors, its offerings, including fashionable women's suits and pajamas, maintain a strong market presence The primary target audience is women aged 18 and above.
Targeting individuals aged 40 and above with moderate to decent incomes, the company offers products priced between VND 150,000 and VND 500,000 This pricing strategy remains competitive, appealing to a diverse customer base that includes retail stores, wholesalers, and clothing retailers.
Some of the company's products:
- Winter velvet home wear: priced around 450,000 VND, thick velvet material Customers can wear it at home or out
( Source: Technical Department of of Hien Long Fashion Co., Ltd)
- Silk pajamas: with soft Satin silk, the price ranges from 150,000 VND-200,000 VND suitable for customers from middle to decent income
( Source: Technical Department of of Hien Long Fashion Co., Ltd)
Here are a few competitors in the pajamas industry with the company:
Fashion brands wear special homes for office workers Janet is diverse in design and materials that meet a wide range of customers Products ranging from VND 500,000 to good income customers
The designer fashion brand focuses on luxury bedwear products crafted from satin silk, priced around 600,000 VND, making them ideal for affluent customers Additionally, the brand targets overseas markets, expanding its reach to a global clientele seeking high-quality bedding options.
Exporting has become a significant advantage for the company, serving as a substantial source of income The company consistently upholds international contracts to export its products Notably, during the COVID-19 outbreaks in 2019 and 2020, the company successfully exported medical masks after obtaining ISO 9001 certification.
The FDA certification is essential for accessing Canadian and US markets, especially in the wake of the global impact of COVID-19 over the past two years, which has led foreign enterprises to pause and seek opportunities for international collaboration Nevertheless, the company has maintained a loyal customer base that continues to trust its products, supported by long-term contracts that ensure stable production.
To deeply understand the organizational structure of Hien Long Fashion Limited Company, the following chart can be considered:
Figure 4.1 Organizational structure of Hien Long Fashion Co Ltd
Ms Nguyen Thi Ly serves as the Director General of the company, overseeing all operations and holding the authority to make decisions regarding production and business activities She is fully accountable for the company's actions, both legally and to higher authorities.
The financial accounting department plays a crucial role in advising the director and managing financial operations It oversees the company's total financial expenditures, ensuring accurate salary payments, material purchases, and proper documentation for all incurred expenses.
Sewing Unit Cutiing unit Finishing unit
Unit Sample sewing unit Traning unit
The Human Resources Department is tasked with overseeing the accounting system, ensuring accurate recording of financial data, and providing timely information to management They prepare monthly and quarterly financial reports for the board of directors, maintain thorough documentation of transactions, and ensure compliance with legal regulations while aligning with the enterprise's objectives and operational requirements.
The Technical Department is essential for product development, overseeing the design and management of technical drawings It creates innovative models to meet customer demands and provides guidance on processing and assembly techniques for factory employees during mass production Additionally, the department conducts regular inspections of the manufactured products to ensure quality.
The Human Resources Department is responsible for managing employee records, overseeing recruitment, and organizing training programs Additionally, it calculates monthly salaries for staff and ensures compliance with company regulations by formulating staff rules and working policies.
Results
Table 4.5 Demographic presentations of the respondents
Demographic variables of the respondents in the study include gender, age, educational qualification, and length of the experiences The results in Table
The distribution of sample individuals based on key demographic variables reveals that 44% of respondents are male, while 56% are female Additionally, 32% of the respondents fall within a specific age range, highlighting the diversity of the sample population.
The survey results reveal that 40% of respondents are aged 23 to 33 years, while 34% are high school graduates, 28% have completed college, and 38% hold university degrees, with no respondents having a master's degree In terms of job experience, 42% of participants have 0-1 years of experience, 36% have 1 to 3 years, 16% have 3 to 5 years, and 6% possess over 5 years of experience Additionally, the majority of respondents work in technical and production departments (64%), followed by human resources (30%), sales (14%), and finance and accounting (12%).
Table 4.6 The results of the employees' evaluation of the rewards
1.The rewards are distributed rightfully 2.82 1.02
2 The rewards match my work effort 3.38 0.901
3 I am satisfied with the quality/quantity of the rewards 3.46 0.952
4 I am ready to increase my work efforts in order to gain rewards 3.4 1.143
5 The rewards have a positive effect on the work atmosphere 3.56 0.807
6 The rewards motivate me to perform well in my job 3.76 1.041
The reward factor, encompassing variables R5 and R6, indicates that workers are generally satisfied, with a significant proportion of reviews reflecting this sentiment The statement "The rewards motivate me to perform well in my job" received a score of 3.76, suggesting positive motivation among employees However, the perception of fairness in reward distribution, marked by a low average score of 2.82 for "The rewards are distributed rightfully," highlights a lack of clarity in the criteria for award allocation Despite this, the rewards policy and the alignment of rewards with achievements scored 3.46 and 3.56, respectively, demonstrating that effective rewards can enhance employee motivation and improve the overall working environment.
Table 4.7 The results of the employees' evaluation of the recognition
7 I am praised regularly for my work.
8 I receive constructive criticism about my work 2.74 1.275
9 I am told that I am making progress.
The respondents reported a mean score of 2.74, indicating a general disagreement regarding the receipt of constructive feedback on their work Research shows that individuals tend to enhance their performance when acknowledged and rewarded for their efforts Notably, around 50% of participants expressed uncertainty on this issue, while 30% strongly disagreed, and only 16% acknowledged that recognition positively influences their performance.
Table 4.8 The results of the employees' evaluation of employee performance
10 The method of evaluating the company's performance is reasonable and convincing.
11 The benefits that I receive at this company meet my needs 3.2 1.16
12 The company provides fair compensation and benefits in return for my contributions in it.
13 Gives positive recognition for good performance 3 1.069
14 Overall, I am satisfied with my opportunities for promotion, recognitions, and bonuses.
Employees at Hien Long Fashion Limited Company express dissatisfaction with the performance evaluation process, which relies heavily on leaders' sentiments rather than clear criteria Despite this, those scoring 3.2 and 3.3 are motivated by a compensation policy linked to their achievements, with regular salary evaluations serving as an ethical incentive that fosters employee growth and value contribution Interestingly, around 60% of respondents indicated that benefits, such as health insurance and company vehicles, while not a primary concern, still provided financial support and positively influenced their performance.
The validity and reliability of the questionnaire are assessed through a validity test, which determines the effectiveness of the instrument An indicator score greater than 0.3 (r > 0.3) indicates that the instrument is considered valid.
** Correlation is significant at the 0.01 level (2- tailed).
To evaluate the validity of research instruments, the Pearson Product Moment correlation index is compared against a significance level of 5% An instrument is deemed valid if the correlation probability is below 0.05 and each relationship value exceeds 0.3 Additionally, the reliability of the measuring device is assessed using the Alpha Cronbach coefficient, with a threshold of 0.6 indicating that the instrument is reliable for the study.
Table 4.10 Reliability Statistics for Reward (X1)
Table 4.11 Reliability Statistics for Recognition (X2)
Table 4.12 Reliability Statistics Employee performance (Y)
The Alpha Cronbach coefficients (X1) 0.772, (X2) 0.915, and (Y) 0.822 are all over the acceptance level of 0.6, indicating that the research instrument is reliable.
This study aims to analyze how reward (X1) and recognition (X2) influence employee performance (Y) through quantitative analysis and linear regression methods Utilizing SPSS Version 20, we calculated the relationship between the independent variables, reward and recognition, and the dependent variable, employee performance The findings reveal significant insights into the impact of these factors on enhancing employee productivity.
From the analysis, the obtained linear regression equation is as follows:
The following is the explanation of the multiple linear regression equation:
1 A constant value of 0 indicates that employee performance (Y) will be 2.025 points if all independent factors (reward (X1) and recognition (X2) are equal.
2 A coefficient of 0.291 indicates that increasing the award (X1) by one scale or unit will boost employee performance (Y) by 0.291.
3 A coefficient of 0.633 indicates that increasing recognition (X2) by one scale or unit will boost employee performance (Y) by 0.633.
As a result, the independent variables of this study, incentive (X1) and recognition (X2), had an impact on employee performance (Y).
Adjusted R Square Std Error of
According to Table 9, (r) equals 0.826, demonstrating a significant relationship between the independent variables (reward (X1) and recognition (X2) and the dependent variable (employee performance (Y).
This study utilizes the r² value of 0.682 to assess the impact of reward (X1) and recognition (X2) on employee performance (Y), indicating that these factors contribute 68.2% to employee performance The remaining 31.8% is influenced by other unexamined variables.
The SPSS data analysis reveals a strong correlation between reward and recognition and employee performance, highlighting that personal interests significantly influence performance outcomes Compared to job satisfaction, employee commitment, and organizational citizenship behavior, employee performance is a stronger predictor of overall organizational success, underscoring the reciprocal relationship between employers and employees When employees feel emotionally connected to their organization and are committed to their roles, they are motivated to exceed their contractual obligations Motivation is further enhanced when companies show appreciation through rewards, fostering an environment where employees feel valued and are driven to perform at their best Incentives and recognition are crucial, as their absence can lead to employee disengagement and reduced motivation.
The status of rewards and recognition at Hien Long Fashion Limited Company
According to Maslach et al (2001), insufficient rewards and recognition can lead to burnout, whereas appropriate acknowledgment and rewards are essential for achieving success The findings of this study indicate that recognition and reward factors play a crucial role in enhancing employee performance at Hien Long Fashion Co Ltd.
4.3 The status of rewards and recognition at Hien Long Fashion Limited Company
4.3.1 According to the recognition and reward factor
To enhance employee performance and motivation, bonuses play a crucial role alongside salaries Hien Long Fashion Limited Company recognizes this importance and has consistently prioritized its bonus policy throughout its development In addition to their monthly base salary, employees are eligible for bonuses at various opportunities throughout the year.
Recognizing and rewarding initiative is essential for fostering innovation within a company Departments and outstanding individuals who propose new ideas or effective solutions to challenges faced by the organization will receive immediate recognition and rewards This approach not only motivates employees but also encourages a culture of creativity and problem-solving that benefits the entire company.
At the end of the year, employees of Hien Long Fashion Limited Company receive a year-end bonus calculated based on their total salary and a variable bonus coefficient, m The formula for the year-end bonus is: Year-end bonus = 1-year salary x m (%) The value of m is determined by the profit fund available after assessing the company's production and business performance; a higher profit fund results in a larger m, while a smaller fund leads to a reduced m This variable is set by the board of directors and the accounting department, with no formal calculation or written guideline for its value.
The HLF corporation rewards its employees with incentives on special occasions For instance, in 2021, each employee received 500,000 dong for International Labor Day, 200,000 dong following the Tet holiday, and another 500,000 dong after the New Year.
In addition to monetary rewards, company leaders can enhance employee motivation through methods such as awarding certificates of merit, publicly acknowledging achievements, and showcasing successes on message boards These recognition strategies not only reflect the company's appreciation for employees' contributions but also serve to inspire greater passion and commitment to work Consequently, effective reward programs not only boost employee morale but also enhance overall productivity and efficiency within the organization, fostering a more engaged workforce that is dedicated to achieving company goals.
4.3.2 Evaluation of positive side results
Despite facing numerous challenges and instances of fraud, the company has successfully fostered a motivated workforce through various incentives such as salaries, bonuses, and allowances This approach has enhanced employees' productivity and enthusiasm, even during stressful periods that require overtime Their unwavering work ethic remains intact, as they are dedicated to fulfilling their responsibilities and contributing to the company's success.
Hien Long Fashion Limited Company demonstrates its commitment to employee well-being and family support through thoughtful financial and spiritual encouragement, reflecting the management's genuine care and dedication to their staff.
The company's initiatives, including sports greetings, arts, and group activities, have fostered closer relationships among employees, promoting unity and collaboration to effectively achieve their assigned tasks.
Material and spiritual incentives play a crucial role in retaining skilled employees and fostering long-term commitment within the company By implementing clear and transparent reward policies, the organization ensures that employees feel secure and motivated to achieve results that reflect their hard work and dedication.
In addition to the advantages of improving work efficiency, there are some limitations:
The current compensation structure fails to meet employee expectations, as many feel their income does not reflect their contributions Employees' salaries are only on par with those at similar companies, leading to dissatisfaction and a lack of motivation.
Employees at Hien Long Fashion Limited Company express dissatisfaction with the current work performance evaluation process, which relies heavily on leaders' personal sentiments rather than objective criteria This highlights a significant issue within the company, as the lack of precise measurement standards undermines fair assessment of employee performance.
CONCLUSION AND RECOMMENDATIONS
Conclusion
Employees highly value rewards from their companies, significantly impacting their performance The correlation between human performance and motivation underscores the importance of reward systems in any business Research indicates that enhanced rewards and recognition can lead to increased motivation and job satisfaction, ultimately boosting performance However, current reward structures at Hien Long Fashion show that employees are not sufficiently motivated by monetary incentives, advancement opportunities, perks, or recognition Therefore, it is essential to revise the rewards and recognition plans to better motivate and satisfy employees Organizations must implement a strategic reward system to enhance employee performance, with an effective pay-for-performance program serving as a vital tool for attracting, retaining, and motivating a high-quality workforce.
Recommendations
To enhance employee performance, the company should implement an annual salary increase of 10-15% for those with over a year of experience Establishing a competitive and equitable salary and bonus structure is crucial for recognizing employee dedication Bonuses should include both material and non-material rewards, linked to the company’s financial performance and individual contributions to cost-saving initiatives Material rewards may consist of monetary bonuses, while non-material rewards could include travel opportunities or professional development courses This approach not only reassures employees of the company's growth but also acknowledges their hard work, fostering greater motivation and commitment.
5.2.2 Developing for evaluating clear job performance
Evaluating work results through Key Performance Indicators (KPIs) is crucial for determining salary increases, bonuses, and promotions, fostering a fair work ethic among employees To achieve accurate evaluations, companies must develop clear job descriptions for each position, outlining specific roles and responsibilities, which serve as the foundation for performance measurement Involving experienced employees in this process ensures that job descriptions accurately reflect the expectations of each role Additionally, a scientifically designed evaluation system is essential, as it must accurately reflect employee performance The human resources department should communicate the purpose of this evaluation system to all staff, promoting its serious implementation Currently, many companies lack a structured assessment program, relying on subjective measures, which leads to inconsistencies in salary and promotion decisions Therefore, an effective evaluation system should align performance assessments with compensation and bonuses, ensuring fairness and motivating employees to excel.
5.2.3 Recommendations for Human resource management
Enhancing employee performance requires clear communication between management and employees about current status, goals, and strategies for achievement Encouraging open discussions among the entire team regarding progress, deadlines, expectations, and available resources fosters collaboration This collective approach not only simplifies the navigation of goals from inception to completion but also contributes to improved overall performance for everyone involved.
Employees are more likely to invest their creativity and effort in a company that recognizes their value When staff members comprehend how their roles impact the organization's success, they become more motivated to excel Engaging in open conversations and listening to their feedback fosters a culture of appreciation and collaboration.
To ensure optimal performance, it is essential to provide comprehensive training for all new employees from the outset This training should equip them with a clear understanding of their roles and the most efficient methods to execute their tasks Once they grasp these processes, they can contribute their unique ideas and enhance productivity effectively.
To boost employee morale and encourage peak performance, it’s essential to acknowledge their individual contributions and achievements By offering genuine praise, you will foster a more innovative and motivated workforce.
An effective reward system offers ethical incentives linked to reliable performance levels, enabling organizations to distinguish exceptional employees based on their achievements, ultimately enhancing overall employee performance.
- The board of directors of the company should be aware of the role of the motivation of employees in the company, thereby having the appropriate attention, making appropriate policies
Effective evaluation processes involve active participation from leaders at all levels to ensure objectivity and fairness Leaders play a crucial role in guiding and motivating employees through consistent face-to-face communication By fostering a positive work environment, they can address challenges collaboratively, enabling them to understand employee difficulties and provide timely support measures.
- To build a fund for motivational activities, extracted from business revenues to implement training and welfare policies.
- Propagate so that employees can see their benefits are tied to the company's business and vice versa.
- Maintain a demanding mindset and a constant desire to learn new things.
- Recognize the organization's worth and the job you do, and establish your responsibilities inside the company.
- Willing to take on new challenges and collaborate with others to accomplish collaborative projects
Limitations and suggestion for future researchs
Due to time and funding constraints, the current study involved a limited number of worker interviews, suggesting that future research should expand the respondent pool to obtain more valid results The cross-sectional data collected may not fully capture the nuances of employee job performance, which can fluctuate over time and with experience; thus, longitudinal studies could yield different insights To enhance understanding of factors influencing employee performance, future research should include data from various managerial levels—top, middle, and lower management Additionally, the study's sample was not representative of the entire company, and the number of male respondents was limited Future studies should prioritize using reliable, non-perceptual secondary data to assess the firm's operations and performance over time, rather than relying on subjective self-reported measures.
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The rewards are distributed rightfully.
The rewards match my work effort.
I am satisfied with the quality/quantity of the rewards.
I am ready to increase my work efforts in order to gain rewards.
The rewards have a positive effect on the work atmosphere.
The rewards motivate me to perform well in my job. Employee recognition
I am praised regularly for my work.
I receive constructive criticism about my work.
I am told that I am making progress.
The method of evaluating the company's performance is reasonable and convincing.
The benefits that I receive at this company meet my needs.
The company provides fair compensation and benefits in return for my contributions to it.
Gives positive recognition for good performanceOverall, I am satisfied with my opportunities for promotion, raises, and bonuses.
At Hien Long Fashion Limited Company, I am conducting research on how rewards and recognition impact employee performance I invite you to share your insights on company policies by completing a brief ten-minute survey Your responses will remain confidential and will greatly assist in the completion of my internship thesis Thank you for your valuable participation.
2 What is your age? ã 1 16-22 ã 2 23-33 ã 3 34-44 ã 4 45 and above
3 What department do you work in? ã 1 Human Resource ã 2 Sales ã 3 Finance and Accounting ã 4 Another department
4 What is the highest degree or level of school you have completed? ã 1 High school graduate ã 2 Vocational training ã 3 Bachelor’s degree ã 4 Master’s degree
5 How long have you worked at the company? ã 1 Up to 1 year ã 2 1-3 years ã 3 3-5 years ã 4 5 years and above
1.The rewards are distributed rightfully.
(Phần thưởng được phân chia một cách hợp lí)
2 The rewards match my work effort.
(Phần thưởng phù hợp với nỗ lực làm việc của tôi)
3 I am satisfied with the quality/quantity of the rewards
(Tôi hài lòng về chất lượng/ số lượng của phần thưởng)
4 I am ready to increase my work efforts in order to gain rewards.
(Tôi sẵn sàng nỗ lực làm việc để đạt được phần thưởng)
5 The rewards have a positive effect on the work atmosphere.
(Phần thưởng có tác động tích cực đến không khí làm việc)
6 The rewards motivate me to perform well in my job.
(Phần thưởng thúc đẩy tôi hoàn thành tốt công việc)
7 I am praised regularly for my work.
(Tôi thường xuyên được khen ngợi vì công việc của mình)
8 I receive constructive criticism about my work.
(Tôi nhận được những lời chỉ trich mang tính xây dựng về công việc của mình)
9 I am told that I am making progress.
(Tôi được góp ý rằng tôi đang tiến bộ)
10 The method of evaluating the company's performance is reasonable and convincing.
(Phương pháp đánh giá kết quả làm việc của công ty hợp lý và thuyết phục.)