The Relationship between Compensation and Rewards and Performance of Employees: A Survey of Small and Medium Sized Firm



Table of Contents

CHAPTER 01: INTRODUCTION1

Background of the Problem1

Problem Statement1

Aim of the Research2

Research Questions2

Objectives of the Study2

Significance of the Study2

CHAPTER 02: LITERATURE REVIEW4

Theoretical Framework6

CHAPTER 03: METHODOLOGY12

Quantitative Research Methodology12

Data Sources12

Sample Selection12

Research Instrument13

CHAPTER 04: RESEARCH PLAN14

Time Scale14

Expected Outcomes14

Expected Problems14

Plan B15

References16

CHAPTER 01: INTRODUCTION

The first chapter of the research is introduction. The introduction section includes a background of the study. The introduction section also includes the aims and objectives of the research.

Background of the Problem

Human resource management is considered to be one of the most important functions of any organisation. The human resource function is particularly important for entrepreneurial firms that are based on the competitive advantage of the intellectual level of employees (Cable, and Aldrich, 2002).

Human resource is considered to be one of the most important tools used to achieve a competitive advantage. It allows an organization to differentiate itself from its competitors. However, in order to achieve a sustainable competitive advantage, it is important to utilise this tool in an effective manner.

One of the important roles of human resource management, in an organisation, is to reward employees and to provide them with incentives. Rewards and incentives are considered to be important because they are associated with the performance of employees. According to Dewhurst et al. (2010), there are different ways that are used to reward employees. The concept of rewards and incentives is not limited to financial compensation. In fact, it also includes verbal recognition and appreciation from managers and supervisors.

The aim of this study is:

To examine the role of rewards and compensation

To examine the impact of compensation on performance

Identify effective reward and compensation strategy for SMEs

Problem Statement

Compensation and rewards are important to bring job enrichment and to motivate the employees. In this research I am going to analyze the importance of both the variables in order to enhance the employee performance. Research. The problem statement which can be concluded from the topic is as under:

What is the importance of compensation and rewards in SMEs.

Aim of the Research

The aim which will be followed in the dissertation is to analyse the importance and impact of compensation and rewards on the employee performance.

Research Questions

This research is based on the following research questions:

What is the value of compensation and rewards in human resource management?

How does the compensation and rewards relate and impact over the employee performance?

Objectives of the Study

Following are the research objectives

To review the impact of compensation and rewards on the performance of employees

To review the performance indicators as what are the specific points of performance that get impacted with compensation and rewards

To review SME and to look as how they get impacted with compensation and rewards

To review the existing literature in order to identify the relationship between variables that are compensation and employees' performance

Significance of the Study

In the current era the compensation and rewards are important for large and multinationals and they have specific policies and strategies designed by human resource ...