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Impact of Reward Systems on
Operations Management
Student’s Name
Institutional Affiliations
Course Name
Instructor’s Name
Date
Abstract

The research study investigated the impact of reward systems on
operations management using a web-based survey of 500 employed
individuals in the United States.

Descriptive and inferential statistics were employed to analyze the data
and examine variables such as reward system design, type of rewards,
distribution frequency and timing, clarity of criteria, and employee
communication.

The findings revealed that the effectiveness of the reward system is
influenced by these variables, and employees who perceive the system as
fair and unbiased exhibit higher motivation and superior performance.

Additionally, the study found that frequent and timely reward distribution
is correlated with increased job satisfaction and employee retention.

The research provides implications based on the findings and offers
recommendations for organizations aiming to improve their operational
effectiveness through the implementation of incentivization frameworks.
Introduction
Efficient administration of resources is crucial for the success of an
organization.
Reward systems motivate employees and contribute to organizational
objectives.
Rewards include bonuses, promotions, and acknowledgment.
Effective reward systems lead to increased engagement, satisfaction, and
productivity.
Research Questions

What are the different types of reward systems used in operations
management?

How does the reward system impact employee performance in an
organization?

What are the factors that influence the effectiveness of a reward system?

How can organizations measure the effectiveness of their reward system?
Research Objectives:

Identify the different types of reward systems used in operations
management.

Analyze the impact of the reward system on employee performance in an
organization.

Identify the factors that influence the effectiveness of a reward system.

Propose a framework for measuring the effectiveness of a reward system in
organizations.
Dependent and Independent Variable

Dependent variable: Employee performance influenced by the reward system.

Independent variables: Types of reward systems, factors influencing
effectiveness, measurement framework.

Reward systems include monetary and non-monetary incentives.

Factors influencing effectiveness include organizational culture, employee
motivation, and communication.
Literature Review

Reward systems are crucial tools for operations management.

They motivate employees, improve performance, and enhance job
satisfaction.

Different types of reward systems exist, including monetary and nonmonetary incentives.

Factors influencing effectiveness include organizational culture, employee
motivation, and communication.

Measurement frameworks such as the Kirkpatrick model and Balanced
Scorecard can assess effectiveness.

Organizations should design and implement effective reward systems to
enhance operational efficacy.
Participants and methodology

Participants: Gainfully employed individuals from diverse industries in Saudi Arabia

Convenience sampling: Selection of readily available and willing participants

Sample size: Initially determined as 384 individuals, increased to 500 for enhanced
reliability

Survey instrument: Web-based survey created on SurveyMonkey platform

Dissemination: Utilized social media platforms for wider reach and diverse
participant recruitment

Inclusion criteria: Gainfully employed with a minimum of six months of
occupational tenure

Informed consent: Participants required to provide consent before undertaking the
survey

Demographic data: Collected information on age, gender, education, occupation,
and tenure
Study Intervention/Materials

Intervention: Reward system implemented as an approach to operations
management

Incentives: Range of rewards including pecuniary remuneration, career
advancement opportunities, accolades, public acclaim, and extended leisure time

Data collection: Internet-based questionnaire to assess the effectiveness of the
incentive system

Closed-ended questions: Quantitative data conducive to statistical analysis

Preliminary testing: Survey evaluated for dependability and authenticity before
data gathering

Data triangulation: Performance records obtained with consent from participants’
employers for verification

Interviews: In-depth conversations conducted with executives and overseers for
comprehensive understanding of the reward system and its impact on operations
management
Descriptive Data Collection Procedure

Questionnaire administration: Participants received predetermined structured inquiries

Questionnaire standardization: Mitigated potential bias by employing a methodical
questionnaire

Ethical clearance: Obtained approval from institutional review board (IRB) for ethical
compliance

Informed consent: Participants’ voluntary involvement ensured after communicating research
objectives

Questionnaire components: Demographic information (age, gender, education, tenure) and
assessment of incentive system effectiveness, impact on motivation and performance, and
future engagement

Dissemination: Questionnaires distributed via email, allowing self-paced completion within
seven days

Clarification of inquiries: Participants encouraged to seek further explanation if needed

Data analysis: Descriptive measures (frequency distributions, percentages, means) used for
overview and inferential statistics (correlation, regression, ANOVA) for deeper analysis
Data Analysis & Presentation of
Findings

Data analysis: Descriptive and inferential statistical methods were applied

Data purification: Identification and removal of discrepancies for result integrity

Descriptive statistics: Central tendency, dispersion, and skewness measures used
for data overview

Inferential statistics: Correlation analysis, regression analysis, and ANOVA
conducted to examine interrelationships between variables

Presentation of findings: Tables, graphs, and visual aids used to present results in a
clear and concise manner

Comparative analysis: Comparison of findings with prior research on incentive
systems and operations management

Contextual framework: Understanding of findings enhanced by providing a broader
context
Findings

Reward system design, nature of rewards, frequency and timing of
distribution, lucidity of criteria, and communication impact effectiveness

Perception of equity and impartiality, non-financial incentives, clarity of
goals, and parameters impact motivation and performance

Perceived equity and impartiality, vocational contentment, temporal
placement, and frequency influence retention

Meticulously crafted and executed incentive systems positively impact
employee drive and efficacy, while other organizational factors such as
resource allocation, leadership support, and alignment with strategic goals
also contribute to overall organizational performance.
Recommendations of enhancing
effectiveness of the reward system

Adoption of clear and transparent reward criteria and guidelines

Ensuring regular and timely distribution of rewards

Consideration of both financial and non-financial incentives

Customization of rewards based on individual preferences and motivations

Effective communication of the reward system and its impact on employee
performance
Conclusion

The study provides valuable insights into the effectiveness of reward systems in operations
management.

The findings suggest that a well-designed and implemented reward system can positively
influence employee motivation, performance, and retention, leading to improved overall
organizational performance.

Recommendations based on the study’s findings can guide organizations in enhancing their
reward systems to maximize their impact on operations management.

Further research is encouraged to explore additional factors and their effects on the reward
system and operations management in different contexts.
References

Cahapay, M. (2021). Kirkpatrick model: Its limitations as used in higher education evaluation. International Journal
of Assessment Tools in Education, 8(1), 135-144.

Coccia, M. (2019). Comparative incentive systems. Global Encyclopedia of Public Administration, Public Policy, and
Governance, Springer International Publishing AG, part of Springer Nature, DOI, 10, 978-3.

Dobre, O. I. (2013). Employee motivation and organizational performance. Review of applied socio-economic
research, 5(1).

Emerson, R. W. (2015). Convenience sampling, random sampling, and snowball sampling: How does sampling
affect the validity of research? Journal of Visual Impairment & Blindness, 109(2), 164-168.

Mani, S., & Mishra, M. (2020). Non-monetary levers to enhance employee engagement in organizations–“GREAT”
model of motivation during the Covid-19 crisis. Strategic HR Review, 19(4), 171-175.

Manti, S., & Licari, A. (2018). How to obtain informed consent for research. Breathe, 14(2), 145-152.

Omotayo, F. O. (2015). Knowledge Management as an important tool in Organisational Management: A Review of
Literature. Library Philosophy and Practice, 1(2015), 1-23.

Soderberg, M., Kalagnanam, S., Sheehan, N. T., & Vaidyanathan, G. (2011). When is a balanced scorecard a
balanced scorecard? International Journal of Productivity and Performance Management, 60(7), 688-708.
The role of training and development in raising the performance of employees and
contributing to the achievement of the vision of the Kingdom of Saudi Arabia 2030.
Name
Institution
Instructor
1
Table of Contents
Abstract …………………………………………………………………………………………………………………………. 5
Introduction ……………………………………………………………………………………………………………………. 7
Background Information……………………………………………………………………………………………. 7
Importance of this Study……………………………………………………………………………………………. 8
Research Questions…………………………………………………………………………………………………… 9
Research Objectives …………………………………………………………………………………………………. 9
Literature Review………………………………………………………………………………………………………….. 11
Meaning of Training, its Importance among Employees and Elements of a Good Training
Program ………………………………………………………………………………………………………………… 11
Importance of Improving Employee Performance and Various Strategies Applied to
Improve their Productivity……………………………………………………………………………………….. 13
Relationship Between Training and Employee Performance in the Modern Corporate Sector.
…………………………………………………………………………………………………………………………….. 14
Methodology ………………………………………………………………………………………………………………… 16
Description of Study Participants ……………………………………………………………………………… 16
Description of Intervention and Data Collection Tool …………………………………………………. 18
Data Collection Procedure ……………………………………………………………………………………….. 19
2
Data Analysis & Presentation of Results ………………………………………………………………………….. 22
Respondents Age distribution …………………………………………………………………………………… 22
Gender of Study Participants ……………………………………………………………………………………. 22
Educational Background of Respondents …………………………………………………………………… 23
Job Position of Respondents …………………………………………………………………………………….. 23
Duration of Service in the Organization …………………………………………………………………….. 23
Participants’ Awareness of Training Programs …………………………………………………………… 24
Respondents’ Participation in the Training Programs ………………………………………………….. 24
Respondents’ Understanding of Training Objectives …………………………………………………… 24
Type of Training …………………………………………………………………………………………………….. 25
Opinion on the Effectiveness of the Training Programs on Improving Performance ……….. 25
Opinion of the Impact of Training among Employees on the Growth of the Organization .. 25
Challenges Experienced During the Study …………………………………………………………………. 25
Conclusions, Implications and Recommendations …………………………………………………………….. 27
Conclusion …………………………………………………………………………………………………………….. 27
Recommendations ………………………………………………………………………………………………….. 28
Implication for Further Research ………………………………………………………………………………. 29
References ……………………………………………………………………………………………………………………. 30
3
Appendix ……………………………………………………………………………………………………………………… 33
4
Abstract
Employees are important stakeholders in any organization for its productivity and core
mission entirely depends on the performance of these employees. The success or failure of any
business is significantly attached to employee performance. For this reason, organizational
leaders and business owners over the years have realized the importance of ensuring that the
employees perform at their top potential. In this research paper, the main focus will be
determining the impact that developing and training employees has on improving employee
performance. Since the research will entirely involve collecting data from real case studies and
an in-depth literature review, the study will confirm a qualitative methodology. The paper has
started by providing background information on employee training and development and the
various ways organizations apply to improving employee relationships. Secondly, the study has
provided the rationale for carrying out this research study.
The study paper further provides a review of existing literature in line with the study
objectives. After the literature review, the paper has provided a theoretical framework and
various models relating to the improvement of employee performance. In the third chapter, the
study has addressed the methodology applied in data collection, that is, the description of
participants of the study, intervention and data collection procedure. The fourth chapter is on
data analysis and presentation of the result findings while the sixth chapter will cover the
conclusion, recommendation and implication for further research.
Various challenges were experienced in the study. First, there were inadequate
indications connecting the relationship between developing and training employees and
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improving employee performance. Secondly, some of the participants provided limited
information and this somehow affected the outcome of the study.
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Introduction
Background Information
Over the years, organizations have been adapting to different strategies for improving
employee performance and productivity. One major factor that has contributed to this need to
seek ways of improving employee performance is the increasing competition in the modern
business world (Park & Park,2021). A recent study carried out indicates that the typical
employee is only productive for less than 60% of a day across all professions and this has
emerged as a result of different factors (Bartik et al., 2020). For instance, technology has resulted
in the replacement of manual tasks with simple and automated activities hence employees are
less engaged than previously. Therefore, a great need for improving employee productivity has
emerged in both industrial and corporate organizations.
In the modern corporate world, skilled employees have emerged to be the most valued
asset in any given organization. Employee relation is the bloodstream in any business for the
success or failure of the organization firmly depends on the performance of the employees
(Bartik et al., 2020). For this reason, top management members have realized the benefits that
can emerge when they invest in training and developing the employees. For example, improved
skills and knowledge among the employees not only improve their general performance but also
help in improving organizational competitive advantage in its market.
Various strategies can be applied to improve employee performance. Training and
developing the skills of the employees has been one of these strategies that has been incorporated
by organizations as they seek to enhance their performance (Chaudhary, 2020). In many
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organizations, employee training happens through learning programs, which may be conducted
within or outside the organization. Even though this strategy of training employees does not
yield immediate results, it creates a long-term impact on an organization when applied correctly
(Chaudhary, 2020). Additionally, for this approach to work, employees must be willing to go
through the training process.
Developing the skills and knowledge among the employees requires effective training
programs that will ensure that the employees will remain motivated and committed throughout
the training program. Generally, these training programs have always aimed at optimizing the
potential among the employees, individually or as a team (Chaudhary, 2020). Improving
employees’ potential becomes effective when training programs take a long-term approach,
where they get quality time to work on their skills and cope with uncertainties that may emerge
in the process. It is also important to note that employees feel encouraged once they realize that
their employers are interested in improving their skills. In return, they reciprocate by bringing
their best input and working ambitiously to achieve the set organizational goals thereby
demonstrating high performance on their job.
Importance of this Study
Determining the impact that training and developing employees has on improving their
performance is an essential study area to address in the modern corporate world. First, the study
will demonstrate the necessity of training and development in the workplace and how it helps
employees embrace their responsibilities. Training acts as a way of reminding the employees
what is expected of them in performing their duties hence it is a reminder of how they need to
take responsibilities (Piwowar‐Sulej, 2021). Secondly, this study will inform corporate
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organizations in Saudi Arabia on how they can organize employee training programs in a way
that can fully impact the employees. Thirdly, the employees will benefit from this study as they
will understand the importance of undergoing thorough training and development programs. For
example, through training and development, the employee is exposed to professional
development opportunities.
Research Questions
The main research question in this study is, how does training and development among
the employees contribute to improving employees’ performance? To answer this research
question the following are highlighted research questions that will help in understanding the
entire study phenomenon. Secondly, the highlighted research questions will act as a guidance in
achieving the research objectives. The highlighted research questions include:

What is the meaning of training, its importance among the employees and what does a
good training program entail?

Why is it important to improve employee performance and what are the various strategies
that can be applied to improve their productivity?

What is the connection between training and employee performance in the modern
corporate sector?
Research Objectives
This study aims to determine the role of training and development in raising the
performance of employees. Through the different methodologies that will be applied, this study
aims to achieve the following objectives:
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To determine the meaning of training, its importance among the employees and what
entails a good training program.

To identify the importance of improving employee performance and various strategies
that can be applied to improve their productivity.

To determine the connection between training and employee performance in the modern
corporate sector.
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Literature Review
In the ever-changing world of business and environmental uncertainty, organizations are
realizing their respective challenges and therefore they have developed strategies for dealing
with these challenges (Akpinar & Ozer-Caylan, 2022). One of these challenges is reduced
performance among the employees. As a response to this challenge, organizations invest in
training and development programs to equip and make their employees competent enough to
improve their productivity as they maintain the competitiveness of the organization (Akpinar &
Ozer-Caylan, 2022). Effective training has turned out to be beneficial to organizations in several
ways. For example, through training programs, it has been possible for employees to understand
their basic roles and obligations in the organization.
Secondly, training and development programs have helped organizations build and
maintain capabilities among the employees, both at the individual and team levels. Thirdly,
training and developing employee skills have enhanced retaining talented workforces, thereby
creating potential long-term employee commitment (Akpinar & Ozer-Caylan, 2022). Retaining
talents has further reduced the extra costs organizations go through while recruiting new
employees. All these benefits associated with training and developing employees have been
leading to creating a competitive advantage.
Meaning of Training, its Importance among Employees and Elements of a Good Training
Program
Training among employees refers to the process of bridging the gap between their current
performance and the expected or set performance. Employees can be engaged in training
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programs through different methodologies depending on organizational preferences (Ahmad et
al., 2021). Examples of these methodologies include offering mentorship, coaching classes, peer
training and direct participation by senior and experienced organizational members. Such
training programs inform the employees on how they can actively participate in their duties and
obligations thereby enhancing their performance (Ahmad et al., 2021). Improved performance at
the individual level ends up improving the general performance at the organizational level.
According to Rawashdeh & Tamimi (2020), there are various reasons why an
organization needs to train and develop their employees. One, through training, employees
develop their skills thereby putting the organization in a better position to utilize their human
input and resources efficiently. Efficient use of human resources in an organization ends up
improving the overall competitive edge, especially in the maintenance of desired talent. For this
reason, it is a key requirement that any organization engage their employees in training programs
to enhance their key abilities and competencies (Rawashdeh & Tamimi, 2020). Secondly,
training employees helps in developing their thinking ability thereby cultivating creativity and
innovation. This creativity comes when the employees are exposed to new ideas and ways of
thinking that they were not previously aware of.
There are key components that need to be present in an effective training program. First,
a good training program should seek to benefit both employees and employers (Helmreich &
Foushee, 2019). Secondly, a good employee training program needs to align with organizational
objectives, both long-term and short-term expectations it wants to achieve. Thirdly, a good
training program will need to assess and meet the learning needs of the employees (Helmreich &
Foushee, 2019). Another feature is that a good training program needs to have relevant content,
designed to meet the learning objectives.
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Importance of Improving Employee Performance and Various Strategies Applied to
Improve their Productivity
Employee performance entails the level of effectiveness of an employee in how one
carries out the responsibilities and duties assigned over a specific time. In many cases, employee
performance is applied as a measure of evaluating how well one performs in a given task or the
general impact one creates towards the success of an organization (Ridwan et al., 2020). There
are various approaches that an organization can implement in measuring employee performance
such as the ability to achieve goals, key performance indicators and feedback from fellow
employees. High employee performance is evident among happy and satisfied employees and
this has been the major factor determining the level of productivity among the employees
(Ridwan et al., 2020). Additionally, the study indicates that employees develop satisfaction in
their jobs when they feel competent to perform their duties and roles.
An organization needs to initiate strategies for improving employee performance for the
following reasons. One, through improved employee performance, an organization is usually in a
position to improve its overall productivity (Ridwan et al., 2020). This is because every
employee optimizes the roles assigned and performs effectively and when this occurs to all the
members, the core activities in the organization improve as well. Secondly, improving employee
performance helps in achieving both long-term and short-term goals (Ridwan et al., 2020). The
third benefit of improved employee performance is that it helps lower the cost of production an
organization undergoes and at the same time, it increases the revenue collected.
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Relationship Between Training and Employee Performance in the Modern Corporate
Sector.
Over the years, studies carried out in the corporate sector indicate that there is a strong
connection between human resource management practices and the performance of the
employees. Employee training and development programs are among the key important human
resource activities as they help in developing knowledge, and skills and nurturing innovation
among the employees, especially in big organizations. Guan & Frenkel (2019) carried out
investigating the relationship between training and employee performance, the relative
relationship between the two variables was found to be r=.344. From this study, it is possible to
develop a hypothesis that any organization that engages in employee relationships has a higher
chance of improving employee performance. For the training and development to have a positive
impact on employee performance, the organization will need to fully utilize its human resources
in the training programs (Sugiarti, 2022). Additionally, it is through training and development
programs that an organization can identify the level of employee performance and what will be
required to improve it.
According to Shneiderman (2020), the act of bridging the gap between desired employee
performance and current performance involves the implementation of relevant training
interventions. These training intervention strategies aim to develop specific skills, and
capabilities and nurture innovation that is in line with the desired outcome. The study further
emphasized that through employee training and development, an organization gets to a position
of recognizing how its employees perform (Shneiderman, 2020). Through this understanding, the
organizational leaders come up with better strategies to improve employees’ knowledge, talents
and other capabilities that will help in improving their performance. Additionally, the leaders can
14
use this information to shape employees’ performance in line with the organizational needs and
goals.
The relationship between employee training and performance can help identify the
various challenges that may be contributing to poor performance. For example, such challenges
may include the absence of motivation, performance confidence or other work-related conflicts
(Peccei & Van De Voorde, 2019). Such challenges must be considered when an organization is
developing training and development programs as they will guide in selecting appropriate and
effective training programs. For this reason, it can be said that effective employee performance
emerges as a result of good training programs that will lead the employees to a fulfilled and
motivated work life.
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Methodology
Description of Study Participants
In this study investigating how training and development among employees contribute to
improving employees’ performance, human participants will be involved due to the nature of the
study. For effective data collection, the study will take a case study approach by focusing on one
corporate organization. One requirement in selecting a suitable organization is that the
organization need to have previously engaged its employees in training programs aimed at
improving their performance. The following participants will be involved during the data
collection process.
Employees- Employees are the first and most important group of people that will need to
be engaged in this study. When selecting employees who will participate in this study, the
following factors will need to be considered. First, demographic diversity is the first
consideration as the participants will need to be of different age groups, gender, ethical
backgrounds, levels of education and cultural practices. This demographic diversity is an
important element when a researcher is aiming to collect qualitative data (Braun & Clarke,2022).
The second consideration when selecting employee participants will be job level, where both
entry, mid-level and executive employees will be involved in the study.
The third consideration when selecting the employees will be the duration of
employment. It will be important to categorize the employees based on their employment
duration since employees engaged for long-term durations have increased performance. Lastly,
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when selecting the employees, it will also be important to consider their level of experience as
they will get to share how training has impacted training at different stages.
Managers and other executive members- the second group of people that will be
engaged in this case study will be management members. The reason for engaging management
in this study is that they play a significant role when it comes to employee training. For example,
it is the role of the management to oversee and implement training programs. Therefore, they
will get to share in-depth insight on how they have been designing effective training programs to
improve employee performance.
Training and Development Specialists- The third group of people that will be involved
in this study is training and development specialists. Modern organizations are hiring training
experts whose primary role is to design and develop training programs. Therefore, it will be
important to engage these specialists as they will provide insights on how effective training
programs need to be designed.
Organizational representatives- the fourth group of participants will be organizational
representatives such as senior leaders who are involved in the development of training programs.
It will be important to engage these representatives as they will share their experiences in how
training improves employee performance.
Control and Experimental employees- Another group of participants will be employees
w