Impact Of Bonus On Employee Performance In The Hospitality Industry: A Case Study Of Town Hall Hotel London

Literature Review

The increased competition in the market has enhanced the demand of the skilled employee and labour in the market. It becomes important for very business to train and retain every employee to manage the quality of work and performance of the company. There are many factors which impact on the employees and enhance the employee turnover of a company such as training, bonuses, rewards etc. Due to liberalization and globalization, it becomes important for the business to motivate the people and enhance their capability to improve the quality of work (Wong, Siu and Tsang, 1999). Due to these services attributes evaluation on the bonus and the rewards are important.

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A bonus is a financial reward which is given to the employee against their quality services in the business. A bonus could be given by a business to its employees on the basis of their quality work, their tenure period or on any special occasion. Bonus is basically given by a business to motivate its employees. Bonus is a compensation which is given to the employees in addition to their normal salary and wage. Bonuses could be of many types but the main aim of every bonus is to motivate the employee to achieve the specific set of the objectives (Metcalf, 2008).

The main research aim of the study is to assess the point view of employees towards the bonus and the rewards. The study has been done to critically assess the disposal and collection operations for employees in order to manage the quality and performance of the employees in relation with the bonus and the motivation of the employees. The study has been performed on the employees who are serving into various industries to evaluate the impact of bonus into their performance.

Main research objective of this study are as follows:

  • To understand the significance of bonus
  • To evaluate the impact of bonus on employee
  • To identify the motivation power
  • To analyze the bonus impact on an employee life
  • To evaluate that how a bonus could enhance the performance of an employee
  • To evaluate the high impact bonus on the performance

The main research questions of the paper are as follows:

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  • Why the bonuses are so important for an employee?
  • What are the impacts of the bonus of employee’s performance?
  • What are the consequences of the bonus?
  • What is the main effect of bonus on competition of the company?
  • How the bonus could affect the motivation of the company?
  • How the bonus of an employee is significant to deliver a quality work?

The study has been conducted on the bonus and its impact on the employee’s performance. Board of directors and top level management take a decision about the type of bonus and the level of bonus. This decision is taken by them according to the performance and some other relevant factor of the employee. Though, few companies do not offer any bonus to its employees and it leads to them towards disappointment and they leave the job. So, it becomes important for the management to offer bonus to the employees. Though, sometimes it is difficult for the management to decide about the bonus and the impact of the bonus on the entire performance of the company.

Methodology

Currently, as the time is getting change due to liberalization and globalization, it becomes quite important and compulsory for every organization to motivate the people for improving their quality work and enhance their performance in the organization. The bonus could be a better factor for the management of the company to motivate the people. Many industries have been evaluated and it has been found that bonus always positively impact on the performance and the quality of the employee.

The study has been conducted on the employee of Town Hall Hotel London. It is a 5 star hotel in London. The hotel is set in the London’s heart at vibrant east end. The award winning hotel, town Hall combines architectural magnificence along with cutting-edge devise and a devotion to make the customers happy. The hotel various extra services to its customers for enhance their satisfaction. Every room and the suit of hotel have been designed by the hotel individually (Janta, Ladkin, Brown and Lugosi, 2011). The hotel has its various branches at different locations. Company has used various new technologies and the innovation to please its guests. Further, the marketing opportunity of the company is also higher. Financial position of the comapny briefs about the positive changes and the higher profitability position of the company.

The human resource factor of the company has also been evaluated and it has been found that the hotel offers various training programs to enhance the engagement of the employee in work as well as company also offers various rewards and bonuses to the employees on the basis of their work. The hotel industry of London explains that the industry is required to train the employees efficiently as the better employee could offer the better services to the clients.

For the research paper, the impact on bonus on an employee and the performance of the employee has been evaluated and it has been found that the bonus is one of the motivational factors for an employee. It enhances the quality and the performance of the company. For the study, literature review has been done and primary research has been conducted to identify that what do employee think about the bonus and how the bonus impacts on the quality, productivity and performance of an employee. The study of motivation and bonus in an employee life explains that monetary rewards are always motivational for an employee. In hotel industry, an employee always wishes for some extra pay due to his outstanding performance and the involvement in the duties and work.

Findings

Though, sometimes it is difficult for the management to decide about the motivation factors for the employees of the company. Currently, as the time is getting change due to liberalization and globalization, it becomes quite important and compulsory for every organization to motivate the people for improving their quality work and enhance their performance in the organization. The bonus could be a better factor for the management of the company to motivate the people. Many industries have been evaluated and it has been found that bonus always positively impact on the performance and the quality of the employee. Further, it has also been found that the performance and the quality of employee of an organization is the crucial factor for an organization especially for the hospitality industry.

The main purpose of the study is to assess the point and view of employees towards the bonus and the rewards. The study has been done to critically assess the disposal and collection operations for employees in order to manage the quality and performance of the employees in relation with the bonus and the motivation of the employees. The study of motivation and bonus in an employee life explains that monetary rewards are always motivational for an employee. In hotel industry, an employee always wishes for some extra pay due to his outstanding performance and the involvement in the duties and work. The study has been performed on the employees who are serving into hotel industries to evaluate the impact of bonus into their performance.

The liberalization and globalization is impacting on the overall international market. Due to it, the competition is rapidly increasing in the market and it is enhancing the demand of the skilled employee and labour in the market. It becomes important for very business to train and retain every employee to manage the quality of work and performance of the company. There are many factors which impact on the employees and enhance the employee turnover of a company such as training, bonuses, rewards etc. Due to liberalization and globalization, it becomes important for the business to motivate the people and enhance their capability to improve the quality of work. Due to these services attributes evaluation on the bonus and the rewards are important.

The main question of the research is how do employees think and feel about bonus & rewards and how the bonus affects their quality, performance etc. This question is imperative to the study as it would offer a clear connection between bonus pay out and performance in every organisation. However, the amount of bonus paid out would always differ from one industry to other. The remuneration plans of every organisation are also different to each other (Peterson and Luthans, 2006). To undertake this question of bonus, a mixed method research has been used which includes both quantitative as well as qualitative data from the hospitality sector so that a varied understanding could be developed about the difference of the bonuses plan and the impact of the bonus on their performance. Indeed, this topic is quite interesting as the current set of business is quite different from the business which used to be before globalization and liberalization (Rothfelder, Ottenbacher and Harrington, 2012). 

Discussion

A bonus is a financial reward which is given to the employee against their quality services in the business. A bonus could be offered to the employees by the business on the basis of their performance and the quality work, their tenure period or on any special occasion. Bonus is basically given by a business to motivate its employees. In terms of remuneration covering bonus and employment, an employee is always paid for his extra work and enthusiasm which has been shown in his work (Papasolomou and Vrontis, 2006). It motivates the employees to accomplish the work with full of his efficiency. On the other hand, an organization thinks to retain such employees and for that, they offer quite attractive bonuses and plans to the employee (Rowley and Purcell, 2001).

Further, rewarding the staffs and employees in an administration, bonus and remuneration come hand in hand and remuneration also has long term benefits for employee as well as company. Reward policies of employee and practises are principally set to assist, retain, attract and motivate the employees and high-quality staff in an organisation. Fletcher, (1989) have explained that workers who are satisfied with their salary and payment method and the structures of bonus are highly attracted and committed to their organizations and performances. Since, Bonuses and rewards are offered to employees according to their evaluation of their performance. Though, some Managers also set the structures in a manner that these techniques of performance source backfire, this is how an employee feel as there are positive behaviours amongst employees, criticisms about unfair pay allocation, or overburden and stress (Lucas, 2002).

As, it has been found that there is a genuine problem for many organizations, as little development has been made in collecting proof on how bonus might influence performance and happiness, as noted by Altarawmneh and Al-Kilani, (2010) that bonus is consideration to make additional productivity against for extra effort. Staff of an organization always have an considerate that they need to be in an service that is seen to be offering and rewarding in their efficiency and that such position of environment are associated with enhanced worker optimism about potential employment and pay. Davies, Taylor and Savery, (2001) and depicts that employees who believe that their payment and bonus methods are quite fair, shows higher levels of job satisfaction and performance eagerness.

However, it has bee evaluated that the bonus could be offered by a business to employee on the base of various factors and figures (Truss, Mankin and Kelliher, 2012). A bonus is a financial reward which is given to the employee against their quality services in the business. A bonus could be given by a business to its employees on the basis of their quality work, their tenure period or on any special occasion (Adam-Smith, Norris and Williams, 2003). Bonus is basically given by a business to motivate its employees. Bonus is a compensation which is given to the employees in addition to their normal salary and wage. Bonus directly enhances the motivation of an employee too work with efficiency and improves the quality of the work (Denvir and McMahon, 1992).

Conclusion

Bonuses are probably one of the most misused tools in an organization. If the bonuses are given correctly to the employees than it could enhance the performance and the quality of the employee whereas if wrong bonus has been given to the employee then it would directly lead the employee to dissatisfaction and discouragement (Lashley, 1999). An organization is required to make simple plan for the employees who could be translated into steps so that it becomes easy for them to understand the bonus criteria and they could work accordingly. Though the management rules about the bonus plan should be realistic and company should manage to motivate the employees to accomplish the task and the goals of individual or the team (Bratton, 2007).

An organization should evaluate the bonus plans and the motivation plan accordingly. Delery and Doty, (1996) explains that an organization and its management should consider all the related factors of bonus and motivation. A motivated employee always serves the organization in best way. The quality of a motivated employee is always better than a demotivated or a normal employee. However evaluating further analysis, bonus schemes are intended to more closely line up the interest of employees with those of the firm, it has been suggested that workers salaried piece rates or commission pay equal to the salary which is full value added or which is greater than their total efforts (Wright and McMahan, 1992). Payment by consequence schemes might allow employee optimization which is not confined by others factors in typical aspects of job satisfaction and its understanding, beyond the optimization ability; workers do intrinsically value the procedure of being rewarded on the basis of results (Salmon, 2008).

Motivation is a result of few internal and external factors of an employee’s life which stimulates the energy and the desire of the people to continually serve their services to the organization with a commitment and interest in the job (Schaufeli and Salanova, 2007). Looking at Town Hall Hotel London that is one of the biggest hotel firm  in London as it has been looked further into the staff and the employee reward and bonus structure, it has been found that the company has moved from the traditional ways to modern ways of reward and compensation. A new technique named by “Lets Reward Success” has been launched and it has replaced the annual business cash bonuses that were based on business performance with fixed rate percentage payments to all the performers who have participant effectively, it is now based and revised on personal performance and corporate profits along with the objective of running the individual success (Bansal, Mendelson and Sharma, 2001). Further, it explains that the performance of the company, employees are put with individual objectives on dissimilar key outcome areas, personal impact, core standards and business integrity that suggests that reward and bonus to employees are very significant and has a unexpected rise to job performances (Torres and Adler, 2011).

As, it has been found that there is a genuine problem for many organizations, as little development has been made in collecting proof on how bonus might influence performance and happiness, as noted by Maroudas, Kyriakidou and Vacharis, (2008)  that bonus is consideration to make additional productivity against for extra effort. Staff of an organization always have an considerate that they need to be in an service that is seen to be offering and rewarding in their efficiency and that such position of environment are associated with enhanced worker optimism about potential employment and pay. Spencer and Spencer, (2008) depicts that employees who believe that their payment and bonus methods are quite fair, shows higher levels of job satisfaction and performance eagerness.

Motivation is a result of few internal and external factors of an employee’s life which stimulates the energy and the desire of the people to continually serve their services to the organization with a commitment and interest in the job (Mokaya, Musau Wagoki and Karanja, 2013). The more the motivation of an employee would be, the more the efficiency and the productivity would be. It has been evaluated that there are various techniques through which an employee could be motivated. Further, it has also been evaluated that the positive work environment, incentives, bonus, rewards, set goals, profit sharing, employee input, professional enrichment etc are few techniques which could enhance the employee motivation of an organization (Namasivayam Miao and Zhao, 2007). Many managers have invested new techniques and methods to enhance the motivation of an employee so that the employee could perform better in the organisation.

Though, it has been found that monitory rewards such as incentives and bonuses are one of the most used techniques to motivate the employees of an organization. It has been an usual practice to disburse the employees in an association for their efficiency and this perform still holds significance in the modern organizations as well (Ro and Chen, 2011). The financial recompense or bonus has constantly been a significant factor which impacts the quality and the performance of the employee (West, 2012).

A study conducted by Chen McCain, Tsai and Bellino, (2010) on the employees of hotel industry of London explained the impact of diverse extrinsic reward on the entire performance of the staffs and employees that contains working conditions and salary and performance bonus. The survey outcomes indicated that out of 154 employees, 106 people has agreed that the performance bonus and incentive act as a inspiring factor and have an important positive collision on their performance and position in the organization. A motivated individual always serves the organization in best way. The quality of a motivated employee is always better than a demotivated or a normal employee. However further analysis evaluates that bonus schemes are intended to more directly align the interest of employees and workers with those of the firm, it has been suggested that individual and workers paid commissions or piece rate equal to the full value added or greater than their effort cost (Valentine and Fleischman, 2008).

For the better understanding of the motivation and its impact on the performance of an employee, few theoretical model of motivation has been evaluated. Saunders, Altinay and Riordan, (2009) has explained that the most tending theoretical model of motivation is Maslow’s hierarchy theory and Herzberg’s two factor theory. Maslow’s hierarchy theory explains that the there are five independent level of human’s basic needs which must be satisfied in a proper and strict sequence which starts from the lower level. If the 5 needs of the human are satisfied then an employee could be motivated.

On the other hand, Herzberg’s 2 factor theory is a physiology theory which explains that there are few certain factors in an organization which causes job satisfaction while there is few other set of factors as well which enhances the dissatisfaction in an organization.

  • Maslow’s hierarchy of needs:

Maslow’s theory had been expressed in 1954 in a book named by Motivation and personality. The hierarchy explained by Maslow is one of the most popular frameworks of motivation. Maslow’s hierarchy theory explains that the there are five independent level of human’s basic needs which must be satisfied in a proper and strict sequence which starts from the lower level (Chen McCainTsai and Bellino, 2010). If the 5 needs of the human are satisfied then an employee could be motivated.

The below figure explains about the 5 different level of motivation.

The above figure explains that the human needs starts from physiological needs and ends at self actualization. It is often pot yard in pyramid shape as above. All the different level of pyramid explains about the different needs of a human ad explains about the time when the needs would be generated (Hoque, 1999). It has been explained in the theory that a human brain is quite complex system and it run parallel process at a same time so sometimes; different needs from the hierarchy could be generated at the same time. It has been acknowledged by Maslow that the likelihood of motivation could be occurred at any time in the main of an individual but the individual should be focused on the basic type of motivation and in the order to meet the needs (Waldron and Kassing, 2010).

Physiological needs explain about the physical needs of an individual which is required for a human to survive (Chand and Katou, 2007). If an individual is not able to meet these requirements than the human body could not be able t function properly. Following are the physiological needs of a human body:

  • Air
  • Food
  • Water
  • Sexual instinct
  • Sleep (Hoque, 1999)
  • Clothing
  • Shelter  

Safety needs:

Once physiological needs have an individual is satisfied then the needs take precedence behaviour. At this level, human searches for the safety factors such as job security, health security etc. following are few common safety needs of a human:

  • Personal security
  • Health security
  • Financial security
  • Security needs against the illness and adverse impacts

Once safety needs of an individual is satisfied then the needs take precedence behaviour. At this level, human searches for love and the social belongings. This need is interpersonal and involves human feelings. Following are few common social belonging needs of a human:

  • Friendship
  • Family
  • Intimacy (Worsfold, 1999)

Once love and social belonging needs of an individual is satisfied then the needs take precedence behaviour. At this level, ego and self esteem needs of human generates in relation with getting recognized, importance, status, respect from others etc. This need is interpersonal and involves human esteems. These needs involve self esteem, self respect, self confidence, freedom, independence etc.

Once esteem needs of an individual is satisfied then the needs take precedence behaviour. At this level, human searches potential. This need involves a feeling to do everything. It involves the passion or hobby of an individual (Boselie, Dietz and Boon, 2005).

Thus, Maslow’s hierarchy theory explains that the there are five independent level of human’s basic needs which must be satisfied in a proper and strict sequence which starts from the lower level. If the 5 needs of the human are satisfied then an employee could be motivated.

  • Herzberg’s two factor theory:

The theory explains that there are 2 factors which enhance the motivation of employee. Herzberg’s 2 factor theory is a physiology theory which explains that there are few certain factors in an organization which causes job satisfaction while there is few other set of factors as well which enhances the dissatisfaction in an organization (Chand, 2010).  Motivation is a result of few internal and external factors of an employee’s life which stimulates the energy and the desire of the people to continually serve their services to the organization with a commitment and interest in the job. It has also been evaluated that the positive work environment, incentives, bonus, rewards, set goals, profit sharing, employee input, professional enrichment etc are few techniques which could enhance the employee motivation of an organization (McGunnigle and Jameson, 2000). Many managers have invested new techniques and methods to enhance the motivation of an employee so that the employee could perform better in the organisation but Herzberg’s 2 factors theory is one of the most used theories.

It explains that there are always 2 factors which are motivating factors and the hygiene factors. Motivator factors are challenging work, responsibility, involvement in decision making, recognition, sense of importance etc. these factors offers positive satisfaction to an employee at workplace. It arises from intrinsic conduction at workplace itself. On the other hand, Hygiene factors are salary, job security, work conditions, paid insurance, good pay etc. these factor enhances the motivation t a higher level (Knox and Walsh, 2005). These are the extrinsic factors at work. It explains that the employee should be motivated at both the levels.

  • Intrinsic and extrinsic motivations:

Intrinsic and extrinsic motivational factors have been evaluated further to identify the performance and the position of the company. It has been evaluated that motivator factors are the intrinsic motivation factors. Motivator factors are challenging work, responsibility, involvement in decision making, recognition, sense of importance etc. these factors offers positive satisfaction to an employee at workplace (Alleyne, Doherty and Greenidge, 2006). It arises from intrinsic conduction at workplace itself. On the other hand, it has been evaluated that hygiene factors are the extrinsic motivation factors. Hygiene factors are salary, job security, work conditions, paid insurance, good pay etc. these factor enhances the motivation t a higher level (Sturman and Ford, 2011). These are the extrinsic factors at work. It explains that the employee should be motivated at both the levels.

  • Conceptual framework:

Further, it has been evaluated that how the bonus works and how do it affect the employee’s performance. Though, the current research explains about bonus payment in separation which is not sufficient to stay employees motivated. According to these three bonus structures: Year-end bonus, production bonus and performance bonus, employees are rewarded. There is no appropriate recognition to presentation, as there may be no apparent set goals to do so, as individual expect it and further there is no grounds to work smarter or harder or put any additional efforts to performing more (Maroudas, Kyriakidou and Vacharis, 2008).

Performance Bonus: This bonus explains that the employer pays performance bonuses to achieve higher incentives and bonuses during their quarter, monthly or yearly output. This structure type has a constant souvenir on the worker on the incessant need to endeavour for more.

However, almost same study has been  conducted by West (2012) on 200 hotels working in 45 different locations in London and it has been exposed that the financial bonus or reward has a negative collision on the presentation of the employees in hotel and hospitality sector in London. The analyst and researchers expressed their concern by expressing that the increment which has been given to the employees in the financial reward or bonus form will reduce the entire performance of the employees working in the hospitality sector. 

Delery and Doty, (1996) conducted a study or research work on 56 employees which were working at Town Hall Company in London to identify the financial rewards imapct on the performance of the employee. The study explained that the financial rewards not only enhances and improves the performance and position of the achiever, but also act as a basis of inspiration to the other workers and motivate them to be spirited so that it becomes also easy for them to earn a reward (Kelliher and Johnson, 1997).

Further, Larrick (1993) has conducted a study to converse the crash of two different types of bonuses, which is named as the verbal reward bonus and cash bonus and the cash bonus on the productivity and performance of the employees. As far as the employee productivity is concerned, the research study revealed that the position and performance has been enhanced by about 6% when the rewards and the bonus are based on the position and performance of the employee. However, when the cash bonuses are neglected, it reduces the employee’s productivity in an organization. On the other hand, the representative rewards, like praise and appreciation have a extended lasting force on the performance of the staff and the crash persisted even when the motivator of the organization has been deliberately removed (Strigas and Jackson, 2003).

Not only this, the research study also revealed that work number present greatly enhances due to the bonus compensation program and reward system (Jaworski et al, 2018). The study also explained that providing a chance to worker to select their additional benefit could act as a barricade to the negative feelings which might arise in the mind of the employee on account of the small amount of bonus (Kim, Park and Cozart, 2014).

Brandes, Dharwadkar and Lemesis, (2003) discussed a narrative type of financial bonus and rewards which are called as prosaically bonus that is given to the workers in many modern organizations. This type of bonus could be explained as the reward or bonus which is offered to any worker so as to pamper in prosaically actions which are directed towards other workers in the association or towards the charities. The researchers explained that such type of bonus could guide to enhance the social support, improved  team cohesion, and  improved employee’s performance in the organization. The researcher ghas performed two experiments. The first experiment had been conducted on 300 employees who were working at a hotel in UK (Cardelle-Elawar, Irwin and Sanz de Acedo-Lizarraga, 2007). The workers were given vouchers to contribute to a charity. After contribution, the workers reported that they sense satisfied and the prosaically bonus has better collision on their job presentation, rather than the individual bonus.

The second research was conducted on salesperson working at a pharmaceutical company in Belgium. The workers were alienated into two parts. One category established personal bonus, while other group received prosaically bonus. Out of the two, the squad which got prosaically bonus has been evalauted to be more unified, as compared to the team which got personal bonus (Aworemi Abdul-Azeez and Durowoju, 2011). Not only this, prosaically additional benefit has been analyzed to enhance the cooperation among team members, which in twist positively crash their performance. . . . . . . . . . . . . . . .

Truss, Mankin and Kelliher, (2012) conducted a study on 154 employees working in the production and manufacturing companies that is located in UK. The learning attempted to evaluate the factors which are accountable behind the enhancing absenteeism amongst the workers. The study explained that financial bonuses given to the workers can considerably decrease the cases of absence, which would in turn assist in increasing the output of the employees.

Even the character traits influence the presentation of the workers under bonus based system. An investigate study conducted by Schaufeli and Salanova, (2007) on 175 subjects who were located in the U.S.A. market. It has been revealed that the workers high in vanity are more involved in a compensation scheme which involves great lump sum bonuses, as contrasted to the workers who are low in egotism. Not only this, the workers high in narcissism feel aggravated when they are praised in community and receive cash recompense in public set up, somewhat than in a confidential set up. This indicates that character traits of an employee are in charge behind their approval towards the compensation system followed in the association (Kwok and Gao, 2004). . . . . . . . . . . . . . . . . . . . . . . .

A study conducted by Hendry (2012) highlighted the disadvantage of the bonus- based compensation schemes in the associations. The study fundamentally explained that such type of recompense system promotes dishonest performance and cheating amongst the employees. The investigation was directed on 641 subjects. The test directed by the specialist uncovered that the subjects, who were presented to the pay conspire in view of reward, carried on more untrustworthily than alternate subjects as they controlled the critical information in order to procure more rewards (Zameer et al, 2014). Be that as it may, when subjects were presented to arbitrary rewards, they were not observed to be unscrupulous or bamboozling. This implies shock monetary impetuses lessens the odds of representative untruthfulness. Not just this, the investigation uncovered that the more number of male subjects were observed to cheat or depicting untrustworthy conduct with a specific end goal to acquire more rewards when contrasted with the female subjects. . . . 

In the comparative setting, another exploration led by Ulrich et al, (1995) differentiated the effect of money and non-money reward on the execution of the representatives. The examination uncovered that the because of money construct reward framework with respect to the premise of objective accomplishment, the execution of the workers break down on the grounds that the representatives have a tendency to choose the simple objectives so they can gain reward effortlessly. Then again, this was not the situation with the non-money rewards given to the workers in the associations. 

Indeed, even the exploration consider directed by Legge (1995) on 68 representatives working at Kenya Power and Lighting Company Limited uncovered that the money rewards have no huge effect on the execution of the workers. The analysts found that the instead of giving representatives a money reward, the human asset must think about changing the inherent parts of the activity, which incorporates giving more self-sufficiency to the representatives and giving them a chance to deal with testing ventures will without a doubt increment worker inspiration.

This study further reveals about the view points of the analysts and researchers which are different concerning the impact of additional benefit on their presentation in the group. This obviously indicates a space in the obtainable literature and the current research. It would try to plug in this space by recognizing what is the emotion of the workers about the additional benefit offered to them and does it make an impact on their performance, or not.

  • Introduction:

Philosophy depicts about the fundamental knowledge of the study. It mainly focuses on the existence especially in respect to the academic excellence (Foster, 2014). Philosophy of the report says that bonus of an employee impacts positively on their performance in the organization. This clearly indicates that better the bonus plan of an organization would be, the better the position and the performance of an employee would be.

  • Method outline:

For the research, study has been conducted on the Town Hall Hotel, London and other hotels who are running their business in UK market. The main question of the research is how do employees think and feel about bonus & rewards and how the bonus affects their quality, performance etc. This question is imperative to the study as it would offer a clear connection between bonus pay out and performance in every organisation. However, the amount of bonus paid out would always differ from one industry to other. The remuneration plans of every organisation are also different to each other (Laurent, 1986). To undertake this question of bonus, a mixed method research has been used which includes both quantitative as well as qualitative data from the hospitality sector so that a varied understanding could be developed about the difference of the bonuses plan and the impact of the bonus on their performance. Indeed, this topic is quite interesting as the current set of business is quite different from the business which used to be before globalization and liberalization. 

  • Research with statistical analysis:

Various studied have been studied and the data has been collected about the bonus impact on the performance of the company. Though, for statistical analysis, questionnaire has been prepared and has been filled by 50 people who are working for part time in any industry. The statistical data has been prepared on the basis of their bonus and their feelings about the bonus.

  • Research Philosophy:

Philosophy says that bonus of an employee impacts positively on their performance in the organization. This clearly indicates that better the bonus plan of an organization would be, the better the position and the performance of an employee would be. The study has been done to critically assess the disposal and collection operations for employees in order to manage the quality and performance of the employees in relation with the bonus and the motivation of the employees. The study has been performed on the employees who are serving into various industries to evaluate the impact of bonus into their performance

  • Research Approach:

The main approach of the research is to evaluate the thoughts of an employee about the bonus and the impact of bonus on the performance of the employee. The main hypothesis of the report is that either the bonus would impact positively on the performance of an employee or the bonus would not impact positively on the performance of an employee. The main principle of the report is to evaluate about the bonus and its impact on an employee on the basis of primary as well as secondary data. Further, it evaluates that what are the types of bonus and how much it impacts on the performance of an employee.

  • Research Design:

For the research paper, descriptive questionnaire approach as well as secondary data collection approach has been used. The research has been evaluated on the basis of both primary and secondary data to conduct a better study on the research question. Multi data collection techniques make it easier for the researcher to reach over a conclusion. The investigation about the bonus and its impact has been effected on various factors such as the number of employees in an organisation, their payment scale, their work, their bonus schemes, incentives plan etc (Harel and Tzafrir, 1999). For the report, various factors of an organization and related to bonus have been evaluated so that a better conclusion could be made about the position of the company. It has bee evaluated through the research that how bonus impacts on the performance and the quality of the work.

  • Data collection procedure:

Data collection is the process to collect and measure the information on targeted variables in a systematic manner. The data collection of the research has been done on primary as well as the secondary basis. Following is the details about the data collection process of the research report:

  • Data sources: Primary:

The data for the research has been collected through questionnaire. The questionnaire has been given in the appendix. The questionnaire has been filled by 50 people who are working in different industries. Their point of view about the bonus has been asked in the questionnaire (Schuler and MacMillan, 1984).

  • Data techniques: Quantitative:

The data for the research has also been collected through various news articles, research paper and human resource management books. The Literature review has been given for that. The literature review explains about the impact of the bonus on the performance of an employee. Their point of view about the bonus has been analyzed in the report.

  • Population and sample:

It has been evaluated that sample numbers are quite important for a study. It is quite mandatory for a researcher to evaluate and take a perfect number of target. Population and the sample size assist the researcher to reach over a better conclusion about the study.

  • sampling technique:

It is quite difficult for the researcher to evaluate the sample size. It is always suggested to a researcher to choose the better number. Researcher should be very caution about the sample size. Sample size should be large enough to make a better conclusion. A little number of sample sizes always offers the negative result to researcher (Lewin and Mitchell, 1995). In the research paper, simple random sampling technique has been chosen.

  • Sample size:

It is quite mandatory for a researcher to evaluate and take a perfect number of target. Sample size should be large enough to make a better conclusion (Huselid, 1995). A little number of sample sizes always offers the negative result to researcher. The sample size for the research is 50 people who are working in different organization.

  • Ethical consideration:

Ethical consideration in research is critical. Research participants are not subjected to be harmed in any way. Dignity of the researcher participants has been prioritized. Consent of the participants has been taken before the study and the questionnaire. It has been ensured to the participants that the privacy would be managed. Adequate level of confidentiality has been ensured while conducting the research. In order to ethics, dissertation has been done in an effective and efficient manner.  

  • Research limitations:

Through the research, the opinion of the employees about the bonus has been evaluated and the impact of bonus on performance has also been evaluated. The allocated time for the research was quite lesser and thus the various components have not been studied. Only hotel industry of UK has been evaluated and their employees have been studied. The budget for the study was also limited. Further, the qualitative methods have not be concentrated on huge level. Though, the research paper would offer various aspect and study point to research on other topic related to human resource.  

  • Time horizons:

Time is the crucial part for every study. In the research paper, the allocated time for the research was quite lesser and the reading material and research topic were quite higher. Though, 1 month was quite average for the study.

  • Summary:

Through the research methodology evaluation, it has been found that the research has been done on the basis of primary as well as secondary data. For the research, study has been conducted on the Town Hall Hotel, London and other hotels who are running their business in UK market. The main question is imperative to the study as it would offer a clear connection between bonus pay out and performance in every organisation. However, the amount of bonus paid out would always differ from one industry to other. Research plan of the question explains that the ethical rules have been followed by the company. To undertake this question of bonus, a mixed method research has been used which includes both quantitative as well as qualitative data from the hospitality sector so that a varied understanding could be developed about the difference of the bonuses plan and the impact of the bonus on their performance. Indeed, this topic is quite interesting as the current set of business is quite different from the business which used to be before globalization and liberalization.

Data analysis is a procedure which inspects, cleanses, transforms and model the data with a n objective to discover the useful information, conclusion, suggestion and supports decision making, data analysis has multiple approaches ad facets which encompasses and diverse techniques under the name of different business, social life domains and science. A bonus is a financial reward which is given to the employee against their quality services in the business (Daley, 2012). A bonus could be given by a business to its employees on the basis of their quality work, their tenure period or on any special occasion.

Bonus is basically given by a business to motivate its employees (Perry, 1993). Bonus is a compensation which is given to the employees in addition to their normal salary and wage. Bonuses could be of many types but the main aim of every bonus is to motivate the employee to achieve the specific set of the objectives. The data analysis process evaluates the different answers which have been given by researcher participants.

  • Findings:

The view points of the analysts and researchers which are different concerning the impact of additional benefit on their presentation in the group. This obviously indicates a space in the obtainable literature and the current research. It would try to plug in this space by recognizing what is the emotion of the workers about the additional benefit offered to them and does it make an impact on their performance, or not. This part of the research is all about evaluating and analyzing the results of the study (Citimagzine, 2018). It has been evaluated through the study that bonus impacts on an employee at a huge basis and due to it, the performance of the employee also enhances.

Bonuses are probably one of the most misused tools in an organization. If the bonuses are given correctly to the employees than it could enhance the performance and the quality of the employee whereas if wrong bonus has been given to the employee then it would directly lead the employee to dissatisfaction and discouragement (Hospitality net, 2018). Further, it has been found that the financial incentives which have been given to the workers can considerably decrease the cases of absence, which would in turn assist the organization in increasing the productivity and performance of the employees.

  • Quantitative analysis:

The study has been conducted on the bonus and its impact on the employee’s performance.  Bonus is a crucial factor for every employee. It is an addition pay which is given by the employer to its employee against his skills, smart work and the efforts (Agarwala, 2008). It is quite important for the management to offer bonus to the employees in the ear of globalization and liberalization. Though, sometimes it is difficult for the management to decide about the bonus and the impact of the bonus on the entire performance of the company.

Currently, as the time is getting change due to liberalization and globalization, it becomes quite important and compulsory for every organization to motivate the people for improving their quality work and enhance their performance in the organization (Lawler, 2008). The bonus could be a better factor for the management of the company to motivate the people. For the evaluation on the bonus and its impact, questionnaire has been filled by 50 people.  

According to the data of the questionnaire, following data has been found:

  1. What is your age?

Out of 50 people, 80% people are in the age group of 20-30.  

  1. Are you eligible for  bonus at work?  If yes please go to Q3. If no, do not proceed.

Further, it has been found that out of 50 people, 70% people are eligible for the bonus and only 35 people preceded Further. 

  1. Do you work full time or part time?  If yes go to Q4.  If no, do not proceed. 

Further, it has been analyzed that out of 35 people, all people are doing job.

 Do you have a part time job?  If yes go to Q5. If no do not proceed. 

Further, it has been analyzed that out of 35 people, 70% people are doing part time job.

  1. What is your job title?

Most of the people are working as a lower level management in the organization. 

  1. How many hours do you work in a typical week?

Typically, people are doing job for 4-6 hours.

  1. Is your part-time job relevant for bonus at work?

Out of 25 people, 20 people said yes.

  1. Why do you work part time? 

Mostly person do the job for the purpose of work experience.

  1. Which department are you in or you would like to be in further your career ladder? 

It has been evaluated that average people are working in all the departments such as housekeeping, IT, manufacturing, HR etc. 

  1. What motivates you to take that career path

(Select all that apply.)

Remuneration is the first choice of all the research participants. 

  1. How would you scale your bonus and how does it affect you

(Select only one, explain further after your answer)

It has been found that most of the people answered that they found bonus very rewarding. It enhances their performance and the quality at their workplace. Bonus offers them extra pay which could be used by them for their extra expenses.  

  1. On average, what do which bracket of salary are you on 

Out of 20 people, 5 people are earning more than 35K, 8 people are earning 25k to 30k and 7 people are earning 17k to 20k. 

  1. Would you locate from your current Region in pursuit of a further bonus advancement/title change? 

Out of 20 people, all the people have been agreed to change the place but only if the higher package would be offered to them. As a result of your Bonus set up, would you ever reconsider your career path or change? Tick box and explain further 

Every participant has agreed that they would prioritize the career path first.  

  1. Where do you see yourself in the next 5 years in your career 

Every participant has stated about different goals and objectives but monetary rewards are the part of every participant.  

  1. When you receive your bonus do you feel well rewarded & satisfied? 

All the people has stated that it depends on the bonus and the position in the company.  

  1. Do you feel the bonus fairly rewarded? 

14 people agreed with the sentence. And said that they feel that the bonuses are

  1. After receiving your bonus do you feel compelled to do more, self-esteem performance and self-drive growth and self-drive?

All the participants have agreed that bonus enhances their performance and the quality of the work.  

  • Summary:

The quantitative analysis explains that the view points of the participants are different in relation to the impact of bonus on their position and performance in the firm. This clearly explains a space in the old literature and the current research. It would try to plug in this space by evaluating what is the feeling of the workers about the bonus provided to them and does it imapcts their performance, or not. This part of the research is all about evaluating and analyzing the results of the study. It has been evaluated through the study that bonus impacts on an employee at a huge basis and due to it, the performance of the employee also enhances.

Conclusion and Recommendation

Conclusion:  

The study has been conducted on the employee of Town Hall Hotel London and the other hotels in UK. The human resource factor of the company and the industry has also been evaluated and it has been found that the hotels offer various training programs to enhance the engagement of the employee in work as well as company also offers various rewards and bonuses to the employees on the basis of their work. The hotel industry of London explains that the industry is required to train the employees efficiently as the better employee could offer the better services to the clients.

For the research paper, the impact on bonus on an employee and the performance of the employee has been evaluated and it has been found that the bonus is one of the motivational factors for an employee. It enhances the quality and the performance of the company. For the study, literature review has been done and primary research has been conducted to identify that what do employee think about the bonus and how the bonus impacts on the quality, productivity and performance of an employee. The study of motivation and bonus in an employee life explains that monetary rewards are always motivational for an employee. In hotel industry, an employee always wishes for some extra pay due to his outstanding performance and the involvement in the duties and work. And it has been evaluated through the study that bonus impacts on an employee at a huge basis and due to it, the performance of the employee also enhances.

Linking with the objectives:

The main objective of the study was to Main research objectives of this study are to understand the significance of bonus, to evaluate the impact of bonus on employee, to identify the motivation power, to analyze the bonus impact on an employee life, to evaluate that how a bonus could enhance the performance of an employee and to evaluate the high impact bonus on the performance.

Through the entire study, it has been evaluated that the bonus is quite significant for an employee, it enhances the quality and the performance of the employee at the workplace. Further, it has been evaluated that the bonus plays a crucial role in enhancing the motivation level of an employee. The study evaluates that bonus is a positive factor in an organization and every organization is required to offer bonus to its employees to motivate them to perform efficiently and effectively.

Objective 1: To identify the motivations of staffs working for Stratford Primer Inn Hotel:

The study has been done in Stratford Primer Inn hotel and it has been evaluated that the out of 154 employees, 106 employees agreed that the performance bonus act as a motivating factor and have a significant positive impact on their performance in the organization. A motivated employee always serves the organization in best way. The quality of a motivated employee is always better than a demotivated or a normal employee. However bringing further investigation, extra plans are intended to all the more intently adjust the enthusiasm of laborers to those of the firm, it is proposed that specialists paid piece rates or commissions equivalent to the full esteem included more prominent than their exertion cost.

Objective 2: To identify the staff reward systems employed by the hotel and how staff perceive it:

Further, the study has been conducted to discuss the impact of two different types of bonuses, verbal reward bonus and cash bonus and the cash bonus on the productivity and performance of the employees. As far as the employee productivity is concerned, the research study revealed that the position and performance has been enhanced by about 6% when the rewards and the bonus are based on the position and performance of the employee. However, when the cash bonuses are neglected, it reduces the employee’s productivity in an organization. On the other hand, the representative rewards, like praise and appreciation have a extended lasting force on the performance of the staff and the crash persisted even when the motivator of the organization has been deliberately removed.

To understand to what extent the reward employed by the hotel influence their choice of working there:

Further, narrative type of financial bonus and rewards has been discussed which are called as prosaically bonus that is given to the workers in many modern organizations. This type of bonus could be explained as the reward or bonus which is offered to any worker so as to pamper in prosaically actions which are directed towards other workers in the association or towards the charities. The researchers explained that such type of bonus could guide to enhance the social support, improved  team cohesion, and  improved employee’s performance in the organization. The researcher ghas performed two experiments. The first experiment had been conducted on 300 employees who were working at a hotel in UK (Cardelle-Elawar, Irwin and Sanz de Acedo-Lizarraga, 2007). The workers were given vouchers to contribute to a charity. After contribution, the workers reported that they sense satisfied and the prosaically bonus has better collision on their job presentation, rather than the individual bonus.

The second research was conducted on salesperson working at a pharmaceutical company in Belgium. The workers were alienated into two parts. One category established personal bonus, while other group received prosaically bonus. Out of the two, the squad which got prosaically bonus has been evalauted to be more unified, as compared to the team which got personal bonus (Aworemi Abdul-Azeez and Durowoju, 2011). Not only this, prosaically additional benefit has been analyzed to enhance the cooperation among team members, which in twist positively crash their performance. . . .. . . . . . . . . . . . . . . .

Through the study, it has been evaluated that the amount of bonus paid out would always differ from one industry to other, though; the bonus is one of the motivational factors for an organization. Through the study, it is recommended to organizations to evaluate the performance, quality, tenure etc factors of an employee and must decide the bonus on the basis of that. Different bonuses make different impact on the performance of the employee so an organization must take it in concern always.

5.4: Future Scope of the Study:

While conducting the study, it has been found that there are various other related topics which should also be studied but the allocated time was quite lesser. Through the study, it has been evaluated that the type of bonuses, impact of different type of bonuses on the employee, other motivation factors, payment of the employee etc are the topics which could be studied in future.

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