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Mohamad Faour-206142-UGMP

Anglia Ruskin University


London School of Marketing

Title: AN ANALYSIS OF THE REWARD SYSTEM ON EMPLOYEES


MOTIVATION: A CASE STUDY OF CARREFOUR –Abu Dhabi, UAE

Student Name: LSM ID:

2018
Mohamad Faour-206142-UGMP

Table of Contents
Abstract.......................................................................................................................................................4
Chapter 1.....................................................................................................................................................5
Introduction.................................................................................................................................................5
1.1 Introduction...........................................................................................................................................5
1.2 Research Background............................................................................................................................5
1.3 Rationale................................................................................................................................................6
1.4 Research Aim.........................................................................................................................................6
1.5 Research Objectives..............................................................................................................................6
1.6 Research Questions...............................................................................................................................7
1.7 Hypothesis.............................................................................................................................................7
Chapter 2.....................................................................................................................................................8
Literature Review........................................................................................................................................8
2.1 Introduction...........................................................................................................................................8
2.2 Strategic Reward Systems......................................................................................................................8
2.3 Intrinsic and Intrinsic Motivation...........................................................................................................9
2.4 Workplace Reward Systems..................................................................................................................9
2.5 Conceptual Framework.......................................................................................................................11
2.5.1 Compensation...................................................................................................................................11
2.5.2 Benefits.............................................................................................................................................13
2.5.3 Recognition and Appreciation..........................................................................................................15
2.6 Theoretical Framework........................................................................................................................17
2.6.1 Maslow’s Hierarchy of Needs...........................................................................................................17
2.6.2 McGregor’s Theory X and Theory Y..................................................................................................21
Conclusion of the Chapter.........................................................................................................................24
Chapter 3...................................................................................................................................................25
Research Design Methodology..................................................................................................................25
3.1 Introduction.........................................................................................................................................25
3.2 Research Philosophy............................................................................................................................25
3.3 Research Approach..............................................................................................................................25
3.4 Research Purpose................................................................................................................................25
3.5 Research Method................................................................................................................................26
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3.5.1 Qualitative Research Method:..........................................................................................................26


3.5.2 Justification for Choosing Research Method....................................................................................26
3.6 Data Collection Process.......................................................................................................................27
Chapter 4...................................................................................................................................................29
Result, Analysis and Interpretation of Data...............................................................................................29
4.1 Introduction.........................................................................................................................................29
4.2 Background of Findings and Analysis...................................................................................................29
4.2.1 Rewards Systems Used by Carrefour................................................................................................29
4.2.2 Factors Affecting the Employee Motivation in Carrefour-Abu Dhabi................................................36
4.2.3 How do reward systems motivate the employees?..........................................................................37
Conclusion of the Chapter.........................................................................................................................42
Chapter 5...................................................................................................................................................43
Conclusions and Recommendations..........................................................................................................43
5.1 Introduction.........................................................................................................................................43
5.2 Conclusions..........................................................................................................................................43
5.3 Recommendations...............................................................................................................................44
References.................................................................................................................................................46
Mohamad Faour-206142-UGMP

Abstract
Purpose: The aim of the presented research is to analyze the rewards used by Carrefour to
motivate their employees in Abu Dhabi, UAE. The research can contribute to the process of
rewarding to the Human Resource of the company.

Theoretical Framework: The research used the Maslow’s Hierarchy of Needs and The
theory X and Y of Douglas McGregor which is suitable with tangible, reliability and assurance
of analyzing the rewards systems that motivates the employees of Carrefour in Abu Dhabi.

Method: The researcher has conducted using the secondary data which are collected from
the report of the organization and select the best sample details that fits the need of the
study.

Key Findings: Analysis has identified the employees of Carrefour are motivated by the
rewards system practice in the organization. However, the factor that influenced much to
the motivation of the employees is the salary and other benefits. Best performer
recognitions are mostly given to the sales staff who attracts the customers. This is indicated
from the data surveyed by Carrefour in year 2016. All these statements have led that the
reward system influences the motivational level of the employees hence need to be
analyzed.
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Chapter 1

Introduction

1.1 Introduction

This chapter introduces the research project with the title “An Analysis of the
Reward System on Employees Motivation: A Case Study of Carrefour in Abu Dhabi
UAE”. It provides the research background, rationale, aims and objectives of the
research and the research question.

1.2 Research Background


Carrefour Supermarket was founded in 1958 by Fournier, Badin and Deofforey
families in Annecy. It is French-owned business headquartered in Billancourt,
France near Paris (Carrefour, 2016).

In UAE, the brand was launched in 1995 by Majid Al Futtaim which is known as the
exclusive franchisee across Middle East, Africa and rest Asia. The very first
hypermarket was opened in Deira, Dubai, UAE and expanded to 15 countries with
total of 175 Carrefour Stores across the region (Carrefouruae, 2016).

Training of employees for career advancement, fair salaries, bonuses and other
related benefits such as vouchers and free tickets are some of the advantages of
the rewards system to its employees. Hence, motivates them to work.

A major part of performance management involves managing employees and


managers, as their performance will have a major effect on the performance of the
organization as a whole (Andrews, 2010). This said treatment is based on the core
competencies that Carrefour has embodied through the years.

Researcher has gathered secondary data to make this research effective and
fruitfully analyze the reward system that motivates the employees of Carrefour.
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This research work will address on the analysis of rewards on the motivation of
employees and perform their duties according to the standards and policies of an
organization.

1.3 Rationale
Analyzing the rewards systems on the employee motivation is the research issue.
Rewards must be reasonable practiced by Carrefour. This is whether the reward
system can motivate the employees in the organization like Carrefour.

The employees have a point of working productively once they are motivated. In as
such rewards are very essential amongst any other motivators. Applying the
rewards to the performance can lead to the high level of motivation of the
employees.

Due to different motivational techniques, the businesses like Carrefour enlightened


to use rewards systems to understand if this can also be a motivational factors for
the employees.

The research will emphasize on the rewards systems used by Carrefour and how it
motivates the employees.

1.4 Research Aim


The general aim of the study is to determine and analyze the rewards systems on
the motivation of the employees of Carrefour.

1.5 Research Objectives


According to Andrews, (2010), research objective basically assist the researcher to
evaluate the activities in the research very efficiently and effectively. Some
research objectives of this study are as follows:

 To analyze the reward system used by Carrefour on the motivation of


employees

 To describe employee motivation and factors affecting this

 To analyze the reward system and how it affects Employee motivation


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 To provide suitable recommendations on improving the reward system to


motivate employees of Carrefour

1.6 Research Questions


 What are the reward systems used by Carrefour on the motivation of
employees?

 What are the factors affecting the employee motivation?

 How do reward systems motivate the employees?

 What recommendations can be applied in improving the reward system to


motivate employees of Carrefour

1.7 Hypothesis
 The reward system has significant motivation to the employees.
 The reward system has no significant motivation to the employees.
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Chapter 2

Literature Review

2.1 Introduction
Review of literature is an evaluative report found in the related literature of the
study. It describes, summarizes, clarifies and evaluates the literature relevant to
the topic. It also gives theoretical base for the research and helps the researcher in
determining the nature of the research (Kaye, and Johnson, 2009).

This chapter presents the related literature and studies after the thorough and in-
depth search done by the researchers. This will also present the synthesis of the
art, theoretical and conceptual framework to fully understand the research to be
done.

2.2 Strategic Reward Systems

According to Jones (2013), every company needs a strategic reward system for
employees that address these four areas: compensation, benefits, recognition and
appreciation. The problem with reward systems in many businesses today is
twofold: A winning system should recognize and reward two types of employee
activity-performance and behaviour. Performance is the easiest to address because
of the direct link between the initial goals you set for your employees and the final
outcomes that result. For example, you could implement an incentive plan or
recognize your top salespeople for attaining periodic goals.

Rewarding specific behaviors that made a difference to your company is more


challenging than rewarding performance, but you can overcome that obstacle by
asking, "What am I compensating my employees for?" and "What are the behaviors
I want to reward?" (Daft, 2008). For example, are you compensating employees for
coming in as early as possible and staying late, or for coming up with new ideas on
how to complete their work more efficiently and effectively? In other words, are you
compensating someone for innovation or for the amount of time they're sitting at a
desk? There's obviously a big difference between the two.
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2.3 Intrinsic and Intrinsic Motivation 


According to Hunt (2001), intrinsic motivation is internal to the person in that it is
something that you have to offer yourself and is driven by personal interest or
enjoyment in the work itself. Because intrinsic motivation exists within the
individual, Parks (2013) said that achieving it does not depend on others. Some
people believe that the most powerful rewards come from inside a person.

A motivated workforce can be a significant factor in organizational success. When


employees are motivated to work at higher levels of productivity, the organization
as a whole runs more efficiently and is more effective at reaching its goals
(Tsouras, 1992). This is in contrast to an unmotivated workforce, who can
negatively disrupt an organization and distract employees from their work. For this
reason, it is imperative that managers understand the power of reward systems
and how they are used to influence employee behavior.

Parks (2013) also cited that rewards are positive outcomes that are earned as a
result of an employee's performance. These rewards are aligned with organizational
goals. When an employee helps an organization in the achievement of one of its
goals, a reward often follows. There are two general types of rewards that motivate
people: intrinsic and extrinsic.

Extrinsic motivation is based on tangible rewards. Unlike intrinsic motivation that is


self-administered, extrinsic motivation is external to the individual and is typically
offered by a supervisor or manager who holds all the power in relation to when
extrinsic rewards are offered and in what amount. Extrinsic rewards are usually
financial in nature, such as a raise in salary, a bonus for reaching some quota or
paid time off. However, extrinsic rewards can also be as simple as getting the
better office, verbal praise, public recognition or awards, promotions and additional
responsibility (Bourgeois, 2005).

2.4 Workplace Reward Systems


According to Daft (2008), workplace reward systems are incentive programs that encourage
employee engagement and productivity by offering bonuses, increased pay, additional time
off or other awards for a job well done. Reward systems recognize staff members who excel
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in areas such as customer service, loyalty and sales ability. Organizations implement
workplace reward systems to retain employees, increase morale and improve overall service
and productivity within the company.

Employers who recognize and reward workers for their efforts give them an
incentive to perform better and be more productive (Bourgeois, 2005). Reward
programs that are quota-based not only encourage healthy competition within the
workplace but also stimulate workers to meet personal and organizational goals
that drive production.

Workplace reward systems come in a variety of forms. Although many programs


are performance-based, some reward for work ethic, tenure and/or attendance.
Unscheduled absences cost organizations money (Kotter, 2008). It was supported
by Jacobs (2016), when he mentioned that absenteeism affects customer service
because workers are not available to assist clients. According to Luft (2002),
attendance-based reward systems offer employees incentive to adhere to their
schedule and maintain perfect attendance, which, in turn, supports an
organization's bottom line.
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2.5 Conceptual Framework


Conceptual framework is a blue print recipe that outlines how the plan to conduct
the research by positioning the work in a larger field of studies (Kaye, and Johnson,
2009). Aside from guiding the research, this ensures that the study is on track and
how other researchers and advisers are guided when analysing the research. This
further shows the relationship of the independent and the dependent variables.

Rewards

Compensation

Benefits Employee Motivation

Appreciation and
Recognition
Fig. 2.1 Conceptual Framework (Source: Author, 2018)

2.5.1 Compensation
According to (Caminiti, 2005), compensation would include rewards when firms
offer a monetary payment such as incentives, bonuses and other performance pay.
Organizations reward the staff when they attain the goals that they set with their
employees.

Rewards can be non-financial such as paid vacation and free accommodations and or tickets
for two. Compensation refers to a salary scale in different levels. According to Parks,
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(2013), this can be into a non-executive, executive and managerial before the range of the
salary is established.
Compensation can also be a hygiene factor or a motivational factor. We can only
consider this as a hygiene factor when the salary paid out is on fixed monthly basis.
Employees usually compare salary to determine whether they are paying
competitive rates. Therefore, they may want to participate in any salary survey that
can give necessary information referring to the reward matters (Bass, 2005).

Compensation can be considered as a motivational factor if it is actually a variable.


It is basically varies to the end result which is aligned to the goals that are also
established (Becker and Geer, 2005). The payment is also sometimes called as
incentive and for the employees to be productive they have to be incentivized.
Incentives become a variable cost to the business that varies directly to the output
of the operations and the service level. Thus, compensation is considered as a
strategic matter (Tsouras, 1992).

Carrefour had designed and developed a scheme of reward systems and


compensation in the organization. This is to attract the right people in the right
position. The rewards and compensation system is implemented to ensure the
retention of the employees. Compensation is one technique for talent management
such as attraction and retention. On the other hand Carrefour still needs of the
tools on mapping the potential talents of the employees; professional and technical.
Compensation develops high motivation being part of the team, creativity and
productive workforce (Carrefour, 2016).

Fixed monthly salary is the practice of Carrefour in motivating its employees


(Carrefour, 2016). It includes the basic salary and other related pays regardless of
the employees’ sick leave and their performance in each month.

According to Parks (2013) monthly salary is a compensation for the employee in his
effort and performance for the entire month which comprises of wages, overtime
pay, tips and other allowances. This is used by all businesses like Carrefour to
reward the employees for the exerted effort to meet the objectives of the
organization.
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2.5.2 Benefits
Motivation of the employees can be influenced by the rewards practiced by the
organization. By means of the financial rewards, it is almost considered that this
does affect their working behavior. Benefits such as financial and non-financial can
increase the esteem of the employees at work.

Carrefour employees benefits on the different schemes such as free tickets,


discounts for groceries and flexibility of time at work. This practice encourages the
employees to work well hence increase the level of motivation.

Free tickets

According to Carrefour (2016), as part of the benefits of the employees working in


Carrefour in UAE, free tickets are part of the contract of two years. This will be
given annually which mean that once the employee finish one year, he or she is
eligible for this kind of benefit. However, this is only limited to the employee and
not applicable to the relatives and families of the worker. However, free tickets are
not given annually to everyone. For instance, maintenance staffs are getting the
free tickets after two years unlike the office workers and sales staff with yearly
ticket.

Discounts for Groceries

The employees of Carrefour enjoy the discounts for various products. The MyClub is
given once the employee finishes the probationary period of six months. MyClub is
the reward scheme used by Carrefour for the customers and employees. Employees
enjoy up to 30% of the discount to most of the products of the company. The same
as the policy for free tickets, it is only applicable for the employees of Carrefour and
the family and relatives are not included to use it (Carrefouruae, 2016).

Flexibility of time at work

Unlike other hypermarket, Carrefour in UAE has good work timings with two shifts a
day, morning and evening. Employees are given one hour break as per the UAE
law.
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Compensation is cash component remuneration and the other component is the


benefit. It is another aspect of compensation (Hogan, Curphy and Hogan, 2004).
Carrefour wants to make and support a happier working environment. Thus, they
provide policies about the flexible time off that adds life to the employees’
harmonious stay in the business. In some cases, organizations provide travel
discounts, vacations and out of towns that allow the employees to blow off steam
(Carrefouruae, 2016).

Employees Being Part of the Legacy

Aside from this, Carrefour wants the employees to be inspired understands their
needs when it comes to skills and knowledge. The benefit of creating legacy is an
opportunity for them to impart the ideas from one to another generation.
Organizations create a legacy program of learning and coaching which match
leaders with the mid-level employees who can be positioned in the same place in
the future. Mentors boost morale and give the business an advantage by deepening
the values that company has developed. Setting up mentoring is a benefit
(Carrefouruae, 2016).

Good Working Environment

According to Kotter (2008), Employees these days are looking for a complete
package. They are not willing to work in a hot cubicle with no window or any
pleasant scene to look at. The organization provide clean environment of
workplace. Workers will be motivated to work when their areas are pleasant such as
ventilation and illumination, collaborative work stations and artwork. This translates
to happier employees.

2.5.3 Recognition and Appreciation


Positive climate aside from the mentioned benefits are most likely the innovative
organizational ambiance. This will happen if the management knows how to
appreciate and recognize. Saying “thank you” will encourage more of the actions
and thinking of the employees and boost them to work productively. Employee
recognition is one of the keys in motivating the employees. This follows trusts
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which are the factors in the satisfaction of the supervisor to the job well done hence
create a good working environment (Huber, 2011).

Competent employees motivated and satisfied lead to the productivity of the


organization. In addition to, it is suggested by Parks, (2013) that satisfying the
employees need not only the power of money instead the appreciation and
recognition is most likely significant.

According to Jacobs, and Jaques (2016), recognizing and appreciating the


employees increases the level of motivation of the employees. He also emphasized
that recognitions are praises or personal note that acknowledge the achievement of
the employees that even gestures are important to the employees.

This is timely informal and formal acknowledgment of the person or teams’


behavior towards work, their effort or the results of the business towards the goals
and core values that is also beyond expectations (Katz and Kahn, 2016).

According to Keller, (2013) to be really good in job, leaders and management itself
must know how to praise others in their good work. This applies the principle of
employee recognition that encourages others to initiate the working relationship.

Appreciation is a basic human need (Luft, 2002). Employees are responding to this
appreciation in a way they can express themselves as good or effective workers.
Appreciation is given to them for the recognition of their work that confirms that
the work is valued; by the management and by other stakeholders. When the work
of the employees are valued, their satisfaction increases hence productivity also
arises. This motivates them maintain or improve the good work they serve for the
company.

Recognition and praises are very significant to the outstanding workplace. Respect
is one essential key that must be valued by people. The contribution of the
employees needs a corresponding respect that will motivate them while at work.
Everyone has a need for recognition either individually or a team that gives them
sense of achievement of the work and great effort they did (Nixon, 2012).
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According to Mumford, (2003), recognizing the employees is the principle of the


social proof of action. He said “We view a behavior as correct in a given situation to
the degree that we see others performing it.” Employee recognition exemplifies
this principle by showing tangible ways on the outstanding effort of the employees.
People need to understand and see that every person who makes the same
contribution has equal recognition for his effort.

Organization needs to establish the criteria for regular employee recognition that will make
the person eligible for any recognition and appreciation. Anyone who can meet the criteria
will then be recognized.
According to Hunt (2001), everyone who goes according to the goals and objectives
which is to exceed production and expectations will be recognized and gets glory. If
recognition will only be for highest performer, it will defeat and dissatisfy other
employees and contributors especially when the criteria are not clear or based only
on the supervisors opinion.

Verbal Praises

Praising is a mandatory requirement to use when leading and developing a team.


Thus, the management has to use this as a tool in commanding and giving
feedback to the employees. However, Patton, (2014) said that there is no concrete
point of measuring the recognition and appreciation since this is verbal comments.

As for Carrefour, they are giving three major recognitions such as the best
performer, the Gold Star and the Service Awards (Carrefouruae, 2016).

Best Performer

Best performer refers to the employee who exerted total effort for the success of
the business in the entire year according to the objectives of the organization. This
recognition is given mostly to the sales staff whose job is to face people and attract
them (Carrefouruae, 2016).
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The Gold Star

The gold star is known as the employee of the month. Usually, the best performer
is decided from the lists of the gold stars. This award is given to the employees who
increase the sales and awareness of the brand as per the evaluation of the board.
The opportunity to lead the group is one benefit of being the employee of the
month (Carrefouruae, 2016).

The Service Awards

Service award is also known as loyalty awards that are given to the employees who
worked for more than 5 years. Their dedication and effort are recognized by the
company whether in monetary of non-financial form of recognition (Carrefouruae,
2016).

2.6 Theoretical Framework


Varieties of motivational models are related to the selected topic of the researcher
(Machiavelli, 2013). Variation of the model is appropriate from the employees and
managers point of view that adds labeled to reward, behavior and satisfaction
(Priem, 2010). The employees who have certain needs to various things can get
rewards set up by the managers such as bonuses and performance related pay
which satisfies the needs.

2.6.1 Maslow’s Hierarchy of Needs

One major model related to the motivation of employees in Carrefour is Abraham


Maslow’s “hierarchy of needs” in 1943. He wrote paper about human motivation
that extends the idea that included in the human’s curiosity. Some of the points in
the hierarchy cover the stages of human growth as they get along with different
people, their satisfaction, esteem and actualization.
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Fig. 2.2 Maslow’s Hierarchy of Needs (Source: Author, 2018)

According to Maslow, needs at the lower position must be prioritized. Before other
needs are being activated, lower needs must be fulfilled. There are some basic
things that should be the focus of the manager which are common sense.

Physiological Needs: these are the things that are vital for survival (Priem, 2010). It
includes the food, water, shelter and clothing. Carrefour provides reward such as
paying salaries which they think satisfies the employees to meet their physiological
needs.

Safety needs: This is known as the desire of the employees for security and
stability. Employees need a steady employment, the health insurance and safe
neighbourhoods. Carrefour also provides all the items mentioned above to make
sure that employees are safe while they are still working with the company.

Social Needs: Employees have desire for affiliation. It means that they reflect on
desire for love, belongingness and affection. This need is fulfilled by Carrefour
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through team buildings, parties and other events where they can get along with.
Managers must help to satisfy this type of needs by simply showing care and
concern to the employees (Zald, and Berger, 2015).

According to Jones (2013), as part of the social needs, involvement of the


employees is also significant to the systems of the organization particularly, the
rewards system. The employee involvement model of Tannenbaum and Schmidt
(2010) and Sadler (2011) gives a clear picture of involvement that motivates the
employees meeting another aspect of social needs.

Fig. 2.3 Employee Involvement in Decision Making, Source: Tannenbaum and Schmidt (2010)

The model consists of the five elements by which indicate the activities in the
system of decision making (Rupert, 2015). First element is to tell. The supervisor
makes decision to the organization and this is announced to the staff. This creates a
complete direction to all the members of the organization. Second is “sell. This
happens when the supervising team makes decision and tries to obtain commitment
from the employees through selling the positive aspects of the decision. The third
one is to consult where the supervisor invites input in decision making however the
final decision will be given by the authority. The fourth one is “join. This element
means that the supervisor invites the employees to make the decision with them.
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Their voices are considered in the process. And the last among the element is to
delegate which means that the supervisor turns any decisions with another party.

The involvement to the system creates a positive impact to the work of the
employees (Kaye, and Johnson, 2009). They are motivated and feel that they
belong to the organization where they work. Hence social and sense of
belongingness needs are achieved.

Esteem Needs: this is a need for things reflecting on the personal worth of the
employees, self-respect and social recognition (Rupert, 2015). They have to attain
a good reputation in a team that will also increase their status in the eyes of other
people. Carrefour helps to satisfy the esteem needs of the employees by showing
the workers that they are well appreciated and recognized.

Self-actualization: The individual desire for self-fulfilment is called actualization.


This is known as the realization of what the person’s potential of doing. Tasks
assigned to employees challenge their minds and encouraging the aptitude and
training can be examples of self-actualization. This is how the organization can help
to fulfil these needs. The highest form of fulfilment that the person has is the self-
actualization (Rupert, 2015). Carrefour has given its employees the opportunity to
pursue their inner talents and creativity.

Maslow called the four bottom levels as deficiency needs because the person will
not be able to feel anything once these are met and becomes anxious if not met.
Hence, eating, drinking and sleeping are physiological needs which are considered
deficient. The growth need according to Maslow is the fifth level of the pyramid.
This enables the person to self-actualize or to reach the fullest as a human being in
the world. This actualization required qualities like honesty, awareness, creativity,
independence and originality.

Once the person has met the four levels, his anxiousness can shift to self-
actualization due to the fact that he begins to contemplate the meaning of life and
its context.
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2.6.2 McGregor’s Theory X and Theory Y


Another theory that is related to the motivation and reward system is the Theory X
and Theory Y of Douglas McGregor (O’Reilly and Pfeffer, 2012). McGregor
formulated the theory in 1960 suggesting the two aspects of the behavior of human
at work. These are the views of employees at work which theory x is the negative
and the theory Y is the negative. The perceptions of managers on the individual are
based on the assumption and their behavior.

The Theory X

McGregor stated that the employees under this theory don’t like the work and tries
to escape if there is a change to leave (Zald, and Berger, 2015). Since employees
don’t like the work, he needs to be persuaded or warned with punishments just to
achieve the goals of the organizations. Most of the business managers creates close
supervision and created dictatorial styles of leadership. He also stated that the
employees don’t have any aspirations and ambitions instead they just focus on
getting the amount they have every pay day. They dislike having responsibilities
and most of the times they resist to the changes in the organization. Employees on
this theory mean no formal direction.

The motivations of the employees are actually based from the leadership and
management. Theory X assumes that the work is distasteful to every employee and
they will avoid the work whenever it would be possible. This theory also states that
most people are not ambitious and employees are preferred to be directed. Most
people are motivated only when achieved the physiological needs and security
needs in Maslow’s Hierarchy. Most people in this theory resist to changes in the
organization.

McGregor argues that once the needs are satisfied then it does not motivate at all
and people may find another satisfaction. Carrefour relies on the monetary rewards
and benefits in satisfying the lower needs of the employees. When they got the
satisfaction in these needs then the motivational level has gone as well. This style
of management hinders the satisfaction of the higher level needs of the employees.
As a result, the only way for the employees to reach the higher level of needs is to
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increase the salaries so it means that they focus more on the monetary rewards to
be able to reach the higher needs. However, money is not the most effective way of
self-fulfillment; still, it is the only way available to increase motivation and
satisfaction of the employees. To satisfy the needs of the employees, they will use
work which is the only way for them to satisfy the higher needs during leisure time.
However, employees are most productive when their goals in working is matching
to the higher level needs (Zald, and Berger, 2015)..

The theory makes to point a command-and-control environment which is effective


because it is relying on the lower needs for motivation but in the modern society
these needs are satisfied and hence cannot and no longer motivate. In the cases
like this, employees will dislike the work, they will avoid responsibilities, they have
no interest in the goals of the organization and more importantly they resist to the
changes in the organization. This creates self-fulfilling forecasts (Zald, and Berger,
2015).

Carrefour encourages the employees to be part of the organization and convince


them to work productively despite several disturbances. However, the organization
doesn’t force anyone to stay if they don’t feel to be part of the culture of the
business. The effect to the business is basically faced by a constructive approach
that recruitment shall be intense to be able to find a fit candidate.

Theory Y

The second assumption suggested by McGregor is the theory Y which is related to


the employees who can perceive their jobs as a normal work and sort of relaxation.
The work for this group of people are just an exercise of the mental and physical
efforts in an inherit manner. The can use self-direction and control if they are
dictated to achieve the organizational objectives. If the job is rewarding and
satisfying, this will result to the employees’ commitment and loyalty at work and in
the organization. In this theory as well, average employee can learn to admit and
recognize any responsibility given to him he can even learn in obtaining it. The
theory stated also that these employees have skills and capabilities that need to be
fully utilized. These also include the creativity, resourcefulness and innovative
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potentials that can help solve the problems of the organization (Zald, and Berger,
2015).

The higher level of esteem needs and the self-actualization are needs that
continuously going on that predicts that people are not completely satisfied of
things. As such, this is contrasting the theory X in which employees are de-
motivated. Employees are best motivated in this theory.

Theory Y makes assumptions such as the work can be as a natural play when there
are considerations favorable to employees. Also, people will be self-directed to
meet the organizational objectives and then work and check if they are committed
to the goals. People under the theory Y will be committed to the quality and
productivity objectives if the rewards are also meeting the higher level of needs like
self-fulfillment. The level of creativity is also high in theory Y and this is observed in
the entire organization. Most of the people can handle the responsibility because of
the high creativity.

It is also mentioned that this assumption finds that the opportunity amongst
employees are aligned to the personal goals and the organizational goals and uses
the employees need for fulfillment as the motivator. This theory does not imply a
very soft approach.

Some people may not have reached the level of maturity which is assumed in
theory Y that us why there is a need of tighter control that can be relaxed as
employees are developing.

Carrefour rewards the employees who participated, committed and involved a lot to
the success of the organization. Giving extrinsic and intrinsic rewards motivate the
employees to work hence the company gives to those who deserve as part of the
systems and practices.
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Conclusion of the Chapter


The conceptual framework clearly identifies that the motivation of the employees is
through rewards such as compensation, benefits, appreciation and recognition.
Understanding all these concepts give a clear understanding that the workers in
Carrefour are affected by such factors.

Rewards systems related to motivation of employees can be analysed using some


theories such as Maslow’s Hierarchy and Theory X and Y of McGregor. In Maslow’s
theory, the emphasis is more on the needs of the individuals which are categorized
in different stages in a pyramid. Basic needs, security needs, self-esteem and
other needs are essential to life of individuals and organization must see to provide
all these needs for the satisfaction of the people in the organization. However, it is
also clear that it is difficult to reach the top which is the self-actualization since, his
assumption was like people may not stop his satisfaction and once he met the three
stages, the satisfaction is done while motivation start from the beginning. This is
why employees start again to find something new for him to be satisfied.

The application of theory X and Y has implications for workforce motivation. Theory
Y applies principles of scientific management to improve the motivational level of
the employees such as delegation and decentralization. If firms decentralize and
reduce the number of level of management, these managers will have more
subordinates and can delegate the responsibility and decision makings to different
employees. Broadening the scope of employees’ job will add opportunities that can
satisfy the ego needs. When it comes to participative management, consulting
employees in making decisions increases their creativity that can provide them to
control over the environment of their work.
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Chapter 3

Research Design Methodology

3.1 Introduction
Research methodology and design is a systematic scientific procedure to provide
necessary information regarding data collection and its analysis. Researchers
simultaneously have justified the causes behind selecting the specific tools and
techniques for the research purposes (Kaye, and Johnson, 2009).

As Carrefour is growing faster, it is significant to ask if the workers are satisfied to


the benefits they are getting, most especially in terms of rewards and if these
rewards can still motivate the employees (Carrefouruae, 2016). Basically, this
research has been conducted to analyze the rewards system on employee
motivation.

3.2 Research Philosophy


The initial stage is the research philosophy where the background was developed
(Kaye, and Johnson, 2009). The researcher used interpretivism/subjectivism. The
reality of the motivation of employees and the analysis of the reward systems are
constructed through its meaning and were created only by the individuals that
involves qualitative data and subjective meaning.

3.3 Research Approach


The research approach is the method of the research being conducted thus; the
study is about the analysis of rewards system on employees’ motivation that needs
only specific information. Therefore the approach being used was deductive
approach (Kaye, and Johnson, 2009).

3.4 Research Purpose


The analysis of rewards system on the employees’ motivation is an existing and
past phenomena where qualitative data can be gathered from the past writings and
researches (Luft, 2002).
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3.5 Research Method


There are two types of research methods (primary and secondary) to conduct a
research that are followed by the researchers all over the world. Primary involves
gathering of the fresh data such as data collected for the first time while the
secondary is a method that makes use of data that are already collected from the
primary research. By using one of them the researcher collects and analyzes the
data (Kaye, and Johnson, 2009).

The researcher has chosen the secondary research method where he gathered
information of the effectiveness of rewards systems to employee motivation from
synthesis of existing research, textbooks, news articles, and statistics and data
review of Carrefour. There are several books and journals where analysis of
motivating employees is written that can complete the study. Aside from this, the
data and statistical review of the selected organization can give an ample idea how
employees are motivated by different factors as much as rewards is concerned
(Carrefour, 2016).

3.5.1 Qualitative Research Method:

To conduct the research, Descriptive and comprehensive data was collected by the
researcher from the secondary data such as research papers and data from the
organizations. There will be no inflexibility since it needs the data from the research
done by other, books, and internet and so on (Kaye, and Johnson, 2009).

This method will give understanding on the accuracy and reliability of the data
which are being gathered from the research, websites and internet.

3.5.2 Justification for Choosing Research Method


The above topic is related to qualitative method which issues in the market and
therefore chosen by the researcher to use to be able to find studies on the analysis
of rewards systems to employee’s motivation.
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3.6 Data Collection Process

Secondary Data

Secondary data is the data collected by someone else for some other purpose but
being utilized by the researcher for another purpose ((Kaye, and Johnson, 2009).
The data are already given and the researcher has no responsibility in it. Like
primary data, secondary data is also reliable if the source is authentic.

In this study, the researcher gathered the secondary data about the motivation
through reward system from the published books, the newspapers, magazines,
journals, online portals and other researches by some authors. This is through the
fact that these sources are abundant of data when it comes to the reward systems
and its effectiveness to employees’ motivation. Thus, this increases the validity and
reliability of reliability of the research.

The criteria include date of publication, the credibility of the author, the sources
reliability, and discussions quality, the depth of the analysis and the extent of the
contribution to the research.

Figure 3.1 Data Collection Process (Source: Author, 2018)


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The researcher used different formats of secondary data such as the electronic
format like organization websites, government sites, electronic journals, and
academic writings published in the internet, and the written format such as text
books, newspapers, journals, magazines and company reports (Jones, 2013). The
most common website the researcher used is the Carrefour website which has
ample and sufficient data that are reliable and fit for the topic. This is also
considered as the internal secondary data by which information can only be
collected from the organization. External data is the data gathered from different
sources. Some government sites are also posting details about the employees’
benefits which are also the basis of the data of the researcher. Apart from this,
journals whether electronic or not, books and articles are considered by the
researcher in getting the secondary data.

To save time and stored the information properly, the researcher, aside from the
written format, decided to use the electronic format. The sources are also
accessible and useful websites are quite available. The websites of the relevant
companies which can also be the source of the research are also helpful in
searching secondary data.
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Chapter 4

Result, Analysis and Interpretation of Data

4.1 Introduction
Kaye, and Johnson, (2009), described data analysis as the process of giving
meaning to the collected data and bringing the information and structure in order.
This chapter aims to present the findings and data analysis. Secondary data is the
basis of the findings and was gathered from the existing research about rewards
systems to employee motivation and statistics data review of the selected
organization. This chapter is composed of two major parts; the findings and the
analysis.

4.2 Background of Findings and Analysis


This section presents the findings of the researcher regarding the reward systems
used by Carrefour to motivate the employees and the analysis on how the systems
affect the employees’ motivation. The findings and analysis were based from the
review of the organization and the existing researches.
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4.2.1 Rewards Systems Used by Carrefour


Compensation

Salary Range of Employees in Carrefour-AUH


Admin Officers

Fishmongers

Butchers
Salary Range of
Receiving Clerk Employees in …

Electronic Goods Stockers

Stockers

0 1000 2000 3000 4000

(Graph 4.1, Source: Carrefouruae, 2016)

The table shows the salary range of the employees in Carrefour in Abu Dhabi for the year
2014. From the list of the staff, the highest amount of salary earn is AED3000 which is
given to the admin staff. Salary is one major component and reason why employees are
motivated to work. The least among the salary earner is the stockers who receive only 1750
as payment for the entire month of work. This is also one reason why some employees
leave their job. For instance, the Fishmongers and the stockers who are receiving very less
compare to the butchers and other roles. It is observed from the management that among
workers, most of the turnover happens for stockers and fishmongers as result of the review
data of Carrefour.
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(Table 4.1 Salary Range in Carrefour, Source: Carrefouruae, 2017)

The table shows the 2017 revised salary of the employees of Carrefour in UAE and it is
observed that the workers in fishery department increased only of about 2000AED
equivalent to more than 12 % respectively while the office workers such as Supervisor
increase from 3000-3500. The table shows also the indication that workers from the IT
department are getting a big higher than other officers. This is real since the business
expands using promotional tactics and IT specialist, AutoCAD and computer experts are
needed for the programs of the development. This is also a bit higher than the month
receiving amount of marketing manager which is 6000 compared to what they get with total
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monthly salary of 8000aed. The revision of the salary of Carrefour staff was based from the
reports of performance and sales that affects the employees’ level of motivation.

Benefits

(Graph 4.2 Employees Availed Free Tickets, Source: Carrefouruae, 2017)

The graph shows the percentage of the availed free tickets to employees of
Carrefour in 2017. The data was collected from the review and statistics of
Carrefour per department. Among the different department, Human resource
personnel availed their free tickets which are 50%. Some of the marketing staffs
are new and not yet eligible for this benefit while some availed already in 2016
respectively. It also shows that the least department who benefited by the free
tickets is the maintenance which is equivalent to 20% only of the staff. This is due
to the fact that the reward system is not the same for everyone. Maintenance
people are getting their tickets once every two years which means that in the year
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2017; they are not eligible to avail it. Therefore only few received it. This means
that from the data of 2017, the most motivated employees when it comes to the
benefits are the Human resource personnel.

Discounts for Groceries

(Graph 4.3 %of Staff Discount in Carrefour, Source: Carrefouruae, 2016)

The graph shows the discount of the employees on various products at Carrefour. It
is observed that the highest discount that they enjoy in their MyClub discount
scheme is basically fruits and vegetables which is equivalent to 30%. Carrefour
ensures that the employees will enjoy their favorite fruits and vegetables to become
healthy. Aside from this, the company also gives 25% for cereals; breads and pasta
while 15% for dairy products. Frozen foods such as fishes and chicken are
discounted about 20% while the least among the products is the baby food
equivalent to 10% respectively. This bio brand is designed by Carrefour to fulfill not
only the demands of the customers but also the employees that they can enjoy
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having a healthy balanced and desirable diet at economical prices. This also
increases the motivational level of the employees at work since they can get the
products they want at cheaper price.

Flexibility of time at work


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(Figure 4.1 Flexibility of Work Timing, Source: Carrefouruae, 2016)

The figure shows the flexibility of time at work in Carrefour wherein all employees start their
work from 10:00am. The working hours are with accordance to the UAE law which must be
8 hours a day and one hour break. Hence, the table shows only the working hours at
Carrefour. Employees initiate work from 10am and end at 6pm while the second shift starts
from 2:00pm to 10pm. However, most of the time, the management needs more employees
due to peak seasons and high market hence they apply addition 2-4 hours for the retail and
sales units. They are all given one day off every week and paid over time. This means that
the privilege is given more to the office workers whose timings are from 9am-6pm. However
some employees are willing to extend time due to corresponding allowances.

Recognition and Appreciation

Recognition and Appreciation 2017 in


Carrefour-AUH
Service Award Best Performer Gold Star Award No awards

21%

54% 16%

9%
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(Graph 4.4 Recognition and Appreciation, Source: Carrefouruae, 2017)


The graph 4.4 shows the recognition and appreciation in Carrefour Abu Dhabi.
Employees from the marketing department obtained the Service award which is
equivalent to 21% while the employees in the finance unit got 16% close to the
highest one and known as best performer. The gold star awards are given to the
sales department who are facing the customers every day which is equivalent to
9% respectively. This means that all employees who received this recognition are
motivated and find it as honor and responsibility. However, the remaining
employees from the other sales units such as entertainment and food court units
and maintenance or 54% are not so much affected and they are the least to get the
recognition hence de-motivates them at work.

4.2.2 Factors Affecting the Employee Motivation in Carrefour-Abu


Dhabi

(Graph 4.5 Factors Affecting the Employee Motivation, Source: Carrefouruae, 2016)

The graph shows the factors affecting the employee motivation in Carrefour in Abu
Dhabi. The data were reviewed by Carrefour in 2016. Factors such as getting
achievement from the work, when they are recognized and even the nature of the
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working they do, affect their motivational level. Aside from this, the responsibility
and training advancement also have portions that motivate employees. In addition
to, what makes the employees motivate well at work are the salaries and other
benefits.

It is indicated that salary increases the motivational level of the employees. This is
either they are getting it on time or the amount of salary they receive. Employees
who are fond of buying groceries before the end of the month enjoy the salary once
given. The salaries that an employee receives affect how they work. When they
received the amount, they are more willing to work. When they get amount that
they think they deserve, they will also work well. This clearly means that employees
are more particular in getting the salaries for them to be motivated to work.

Second among the factors according to Carrefour is the recognition. When


employees are recognized, they are willing to perform the responsibilities well. The
employees need appreciation and recognition in Carrefour. Being thanked by the
managers improved the relationship within the organization as well as built trust
amongst them. This also increased the confidence of the employees at Carrefour in
their skills that fuel motivation and engagement.

The work itself impacts also the motivational level of the employees in Carrefour as
per their data of the factors affecting the employees when it comes to motivation.
The feeling of the employees that they are not so much stressed at work is very
essential that builds their strengths in performing the job well. There was also a
small percentage of the responsibility and advancement among the criteria from the
data presented by Carrefour which is still higher about 50%. This clearly means
that the responsibility of the employees towards their work and the training and
advancement create a good impact to the employees hence lead to motivation.
When it comes to discounts and other benefits, these are bit higher than any other
factors. Most of the employees enjoy the discounts they receive that motivate them
aside from the wages they get.
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4.2.3 How do reward systems motivate the employees?

Involvement of the employees to the implementation of Reward Systems

(Graph 4.6 Employee Approval on Involvemet, Source: Carrefouruae, 2016)


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The table shows the approval of the employees on their involvement to the
implementation of rewards in Carrefour. 70% of the employees approved that the
reward system is effective when it is announced to the staff. By telling the rewards
system to the employees, the organization provides complete direction and this
motivates them to continue working with the company.
The decision about the rewards system in Carrefour has to be communicated which
is to “sell” the positive impact to the employees. 80% of the entire employee
population agreed from the data reviewed by Carrefour. This is when the decision
attempts to gain commitment from the staff, hence create an impression to the
staff that they belong to the organization. This is similar to “consult” where the
supervisor invites input to decision making of the rewards systems.
Among the strategies, the highest is the “join” which is equivalent to 90%. This
means that the employees likes when they are invited to make decisions with the
supervisor in the last decision. The schemes have to be fair and the participation of
the employees will justify the results. However, the least among the approval is
when the managers are asking for help of another party for the approval of the system
which is estimated 40%. This de-motivates the employees and creates lack of trust to the
management.
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(Graph 4.7 Motivational Factors of Rewards, Source: Carrefouruae, 2016)

The graph shows the motivational factors of rewards to Carrefour employees


according to the data of the organization in 2016. It is observed that when the
rewards are linked to the performance, the employees are motivated well. Aside
from this the clear statement that the rewards are worth the effort also increases
the confidence of the employees and decides to stay in the organization. However,
not everyone believes that the rewards systems are fair and well distributed
according to the survey of Carrefour especially when employees learn an unfamiliar
task, employees will just be motivated when the rewards are based on continuous
reinforcement schedule.

(Graph 4.8 Employee Satisfaction, Source: Carrefouruae, 2016)


The graph shows the employees satisfaction according to the survey of Carrefour –
Abu Dhabi in 2016. Most employees are expats hence they are more satisfied when
they receive a good amount every month. When they are recognized, they are also
satisfied and according to their survey 92% of the employees are satisfied when
there is appreciation and recognition. The third is the stability of the work. For the
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employees it is not only about the salary most of them are into the stability of work
which is about 85%. The least but still high percentage from their survey is the
respect. This is somewhat included to the appreciation however; most of the
employees or 80% in Carrefour Abu Dhabi basically satisfied when there is a
respect for everyone. This encourages the entire organization to have a peaceful
with unity environment.

Motivation of Employees According to level of Management in Carrefour AUH

45
40
35
30
25 Top
20 Middle
15
Below
10
5
0
2016 2017

(Graph 4.8 Motivation of Employees According to level of Management, Source:


Carrefouruae, 2017)

The graph shows the comparison of the most motivated employees, according to
the level of management in Carrefour for the year 2016 and 2017. It is observed
that the highest among the employees are the top management including the
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supervisors and the managers which about 45% in 2016 and 44% in 2017 which is
still the highest among the most benefited. This includes the salaries, benefits and
other recognitions. While the tope is highest, the middle management also gets
higher benefits and privilege which make them motivated such as marketing staff,
financial department staff and operational staff which is 35% and increased 1% in
2017. While these two are enjoying, the least among the level of management are
the people from the lowest management such as the maintenance and some sales
staff which is about 20% consistently from 2016 and 2017.

Conclusion of the Chapter


From the findings, the most important rewards employees of Carrefour are the
compensation or salaries by which motivates the employees. Range of the salaries
affect the people under bottom management; hence rewards system has no
significant effect to them such as maintenance and some employees below
management. Even when it comes to working hours, most of the employees on the
offices enjoy the privilege while other is not like the maintenance and below
management team. Full benefits are given to the major staff that made them
motivated on the work while others are de-motivated since they receive benefits
after period of a year or two. The reward system has no significant effect to the
lowest employees in Carrefour.
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Chapter 5

Conclusions and Recommendations

5.1 Introduction
Conclusion is provided to give the final word on the value of the analysis and the
research itself (Kaye, and Johnson, 2009). This will show the readers the developed
arguments and answered questions. This chapter gives a summary and suggestions
from the findings of various important topics.

5.2 Conclusions
The reward system used by Carrefour on the motivation of employees

Rewards Systems Used by Carrefour


In this case, salary is the key reward that can motivate the employees of Carrefour.
When it comes to compensation, the salary of the employees particularly for the
office admin is much higher than any other employees. The wages range is a bit
higher than those who are working in the operations and functions of facing more
customers. This de-motivates other employees hence either they will leave the job
or request for a salary increase.

In terms of Benefits, most of the people are getting the right benefits for them such
as free tickets, vouchers etc. It is also understandable that this cannot be 100%
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every year since most of the employees have joined in between years and are
eligible for it. However, the exemption is different on the part of the maintenance
staff by which they receive some of the benefits like free tickets after two years.
Most of the employees enjoy the discount given by Carrefour; this is one major
factor that motivates them to continue working. When it comes to flexible working,
the timing is flexible. However, adding more times to the agreed one is a stress to
the employees hence some are de-motivated to work when stressed of time. The
distribution of the recognition seemed to be not fair to all since not all of the
employees received.

Factors Affecting the Employee Motivation in Carrefour-Abu Dhabi


Salary is the number one factor the affect the motivational level of the employees
either they received it earlier or they get more than they deserve. Responsibility
also affects the motivation. When employees have more responsibilities, they are
stressed and de-motivated.

Involvement of the employees to the implementation of Reward Systems.


Employees are motivated when they are involved in the process of the rewards
system.

Employees must be involved to the implementation of the reward system. Their


high involvement leads to their confidence that they existing at work and in the
entire organization.

Rewards Systems and Employee Motivation

The employee rewards system affects the motivation of the employees basically
from the level of satisfaction observed in the business. Employees at Carrefour are
satisfied when they received salaries, recognized, have stable jobs and gaining
respect. These encourage them to work properly; efficiently and effectively that is
needed by the company to grow better.

Therefore, it is clear that when the employees are satisfied by the salaries and
benefits, they will be motivated to work. Money is the major source to meet all the
needs hence their satisfaction is really essential.
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5.3 Recommendations

The reward systems used by Carrefour on the motivation of employees

Carrefour must handle the situation very well when it comes to compensation.
One of the major reasons of leaving in Carrefour is due to the unfair salary which
has to be increased either based on performance or qualifications. It is not clear to
the people the exact strategy of giving wages and its fairness. This has to be part of
the internal communication policy of the organization to indicate why there are
differences of salaries at work.

The management has to continue the use of the rewards scheme to employees
such as vouchers and discounts however, when it comes to work timing, they have
to stick on the regular timing that will increase the confidence of the employees to
stay.

The Factors Affecting The Employee Motivation

Since the distribution of the recognition is somewhat not fair, the company must
focus on building a strategy that creates a vision to the importance of employees.
The loyalty award is suggested so that all employees will receive at least certificate
that will motivate them at work.

It suggested that the benefits such as free tickets must be fair and eligible for
every employee every year the fact that the business is functioning due to the
cooperation of the entire team, top or bottom.

Recommendations in improving the reward system to motivate employees of


Carrefour

Carrefour has to involve the employees to the reward systems as they are well
motivated when they participate in such things. Organization has to inform the
vision of the system to provide complete direction, let them create commitment,
join and be delegated. This can be thoroughly done by the managers that will
impact the motivational level of the employees at Carrefour positively.
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