Effectiveness of Reward and Appraisal Systems in Retail

EFFECTIVENESS OF REWARD SYSTEM AND APPRAISAL
SYSTEM IN INCREASING THE RETENTIONS AND
PRODUCTIVITY OF EMPLOYEES IN RETAIL SECTOR
STUDENT’S NAME:
PROFESSOR’S NAME:
Chapter 1: Introduction1.1 Introduction
The Human Resource Department plays an important role in
ensuring that all units of a business are integrated. This is
attained through employee management; performing appraisals
and rewarding of well-performing employees. Rewards appraisal
is significant in raising the employee motivation and levels of
performances (Hendry, 2012).
Reward system is a motivating strategy to employees that
enable them to perform at the highest level. Employees take
pride of their work when they are ware that their job offers
them security and opportunities for advancement. It is
necessary to recognize that there is no right or wrong systems

for rewards but there are those that will make employees to be
more motivated than others.
On the other hand an appraisal system assists the management
in evaluating the performance of employees on the job so as to
develop a system that is fair for promotion and wage increment.
Appraisal systems is also evident in helping the employees
improve on their performance and also enable the company to
devise and reorganize the job functions so as to better fit the
employees with the position available. Performance appraisal is
usually done on periodic basis general and systematic processes
that access the performance and productivity of the employees
in accordance with the pre-determined objective and criteria of
the company. 1.2 Background Information
The relationship and connection between reward systems,
motivation as well as job satisfaction of the workforce play an
essential role in the success of the business regardless of the
size. Employees expect to gain both financial and non-financial
rewards so that they are motivated to work for the company.
Some employees prefer to have financial reward while other
non-financial rewards. This becomes necessary for the
researcher to identify the effective reward systems that should
be embraced by the company especially those in retail business
(Ibrar & Khan, 2015).
Performance appraisal is recognizes to be a tool that spur
employees to attain the goal of the organizations. Employees
are in most cases driven by their attitude towards the jobs they
doo which has a great impact on the level of productivity and
retention. This makes the appraisal systems to be an
indispensable part of the organization in the process of
developing employees cognizant of their growth and
performance improvement, their potentiality and abilities.
Performance appraisal systems impose a substantial impact to
other human resource aspects and strategies of the organization
at large. Effective performance appraisal is key bedrock in
ensuring that the success of employees matters such as
employee motivation, selection and training. There is need for

the company to develop and reveal the effects of the appraisal
systems to the organization and also enable the employees to
vividly understand the systems of appraisal and their purpose
(Agyare, Yuhui, Mensah, Aidoo, & Ansah, 2016).
According to Miah (2014), many businesses and organization
during this era of global competition strive to establish a high
work performance culture which is incorporated with the
corporate and business strategies so as to develop individual’s
contribution to the success of the company. In this process,
employees are the key role player in the organization through
the process of performance management. This calls upon the
entire employer to develop performance management strategies
that will effectively develop a workforce with competence and
commitment and determined to work towards the attainments of
the shared objective and goals of the business. The
performance of the organization is determined by the role
played by the management and the employees whereby it is
required to be in line with the stated goals and objectives. 1.3
Problem Statement
Despite the positive effective that are associated with the
reward and appraisal systems in the company, it is evident that
most of the employees, supervisors and management are mostly
not satisfied with the systems embraced by the company. As a
result most of them fail to understand the system appropriates
hence associate them with many negative loopholes that develop
the negative impact. Many people become dissatisfied with the
strategies put in place resulting into failure of the stems such
that they fail to attain the intended goal of creating motivation
that lead to increased productivity and retention of employee in
the company.
In retail business, most of the management team fails to identify
the essence of developing effective reward and appraisal system
since they view this as necessary to the large companies. As a
result of this problem, this project aims to determine effective
strategies of reward and appraisal that has the potentiality of
increasing productivity and retention among the employees in

retail businesses. 1.4 Aim of the Study
The aim of the study is to evaluate the effectiveness of the
reward and appraisal systems in increasing employee
performance and retention in the retail sector. The study will
examine various reward system and appraisal systems applied
by business in the retail sector so as to determine whether they
are effective in contribution to employee performance and
motivation in their work. It is essentials to note that motivation
play an integral part in the productivity of the employees hence
they is need for companies to develop strategies that enhance
the motivation of the employee. This study will examine the
effectiveness of the two performance management strategies
among the employees which will be measures by the level of
productivity and retention of employees in the companies that
utilize the strategies. 1.5 Objective of the study
The main goal of the study was to determine effectiveness
reward and appraisal systems in increasing the retention and
productivity of employees in retail sector
The following are the objective of the research.
· To have an understanding of the significance of the systems of
appraisal and rewarding in the retail sector.
· To have an understanding of the impact of rewarding and
appraisal system on employee productivity.
· To have an understanding of the systems used to appraise and
reward employees for their retention.
· To understand the importance of reward and appraisal systems
in the retail organization.
· To understand the extent of employee retention through
effective reward and appraisal system.
· To understand the increase in productivity that is related to
reward and appraisal system.1.6 Research questions
During the study, the researcher utilizes the following set of
question in order to attain the goals of the study.
· What is the significance of the systems of appraisal and
rewarding in the retail sector?
· What is the impact of rewarding and appraisal system on

employee productivity?
· Which systems are used to appraise and reward employees for
their retention?
· What is the importance of reward and appraisal systems in the
retail organization?
· To what extent are employee retained through effective reward
and appraisal system?
· Can we relate increased in productivity to reward and
appraisal system?1.7 Research hypothesis
Based on the Assumption of the existing causal relationship, the
following hypothesis was developed with to help the researcher
in testing.
H0: Effective appraisal and rewarding systems in a retail
organization lead to employee retention in the retail
organization.
H1: Effective appraisal and rewarding systems in a retail
organization lead to increased employee productivity in the
retail organization.1.8 Rationale of the Study
In the organizations, the rewarding and appraisal systems have
an important role they play. They help in employee motivation
and affect the quality of their work. This also helps in
improving the quality of work of the employees. These systems
are important in retaining the employees in the organizations.
The effective system makes the organizations maintain the
loyalty of employees and increase their productivity.
Veld and Alfes (2014) commented on the essential fact that
reward and appraisal systems within the organization are
essential within the organization. This is because it helps in
increasing the motivation of the employees and retaining them.
Rewards and appraisals are provided to the employees based on
their performance hence it is a mark of prosperity of
organization and its employees.
It is the responsibility of the organization to make sure that
employees are retained for the productivity and profitability of
the organization. Employees need to need motivated for work
done (KUYKENDALL et al, 2013). Similarly, they need to be

assessed on their productivity, dedication, and commitment to
the work; this is done using the appraisal systems. Positive
appraisals ensure work satisfaction of the employees through
high rating of their performance hence increasing their
productivity (Jakowski & McKellar, 2014). 1.9 Purpose of the
Study
According to the outlook of Rudge (2011) the reward and
appraisal system plays an important role within the
organization. The rewards and appraisal systems help in
increasing the motivation of the employees that directly affects
their quality of work. Moreover, it also helps in improvement of
the quality of the work and also improves the overall
performance of the employees. According to Cahill et al. (2014)
the satisfaction of the employees for their work is also
maintained and also helps in understanding the need and
requirement of the trainings. The employees tend to retain to the
organization and hence also tends to stay loyal to the
organization that increases the productivity.
This study will help the retail businesses in determining the
effectiveness of reward and appraisal systems which are
associated to increased employee productivity and retention. It
will help the business owners to determine effective strategies
that should be developed so that they can facilitate the appraisal
level of motivation among the employees. It will also help
them to recognize that reward and appraisal systems are not
only essential in large companies and corporate bodies but
rather in every workplace that has employees who need some
level of motivation so as to attain the overall goals and
objective of the organization.
The study will also help the employees by determining the
essence of reward system and appraisal systems that are
developed by the companies so that they can embrace them.
They should also help the company in developing an effective
reward and appraisal system that will help in motivating them
and increasing their productivity. They are cases whereby
employees have misinterpreted the essence of reward and

appraisal systems making them view the performance
management strategies as a threat to their employment,
employee will be educated on the important part of the appraisal
systems as well as the rewards systems.
The research will also help other researchers since it will be
used to develop knowledge and background of the study they
intent to conduct. It will also help them in identifying existing
gaps that require research hence it will be essentials in the
research sector. Comment by Bincy Baburaj: Please include
a brief introduction of methodology to be adopted.
1.11 Structure of the Dissertation Comment by Bincy Baburaj:
Please check the numbering..
The researchers of this research study represent their
discussion, research topics, researching analysis in five
respective chapters. The chapters have been furnished with
significant data, information, and analysis of the research topics
significantly and adequately. The chapters have been followed
in the figure that has been represented in this context below:
Chapter 1
· Aims and Objectives
· Rational of the study
Chapter 2
· Concept of the Topic
· Related Theories and Models
Chapter 3
· Research Methodology tools
· Sampling
Chapter 4
· Findings
· Data analysis
Chapter 5
· Conclusion
· recommendation
Figure 1: Dissertation Structure
Source: Created by the Researcher 1.12 Conceptual Framework
Independent variables

Dependent Variables
Retention
Reward system
Appraisal system
Productivity
Figure 2: Conceptual Framework
Explanation
In the conceptual framework above, the independent variables
are the Reward systems and the Appraisal systems which the
researcher which the researcher intends to identify they
influence in the independent variables which are the retention
and productivity in the retail business. 1.13 Summary
The introduction part submits significant discussion and targets
of the research study so that the readers and observers of this
research study can be understood all the objectives and
information related to the study significantly. Organizations and
the business sectors use the system of appraisal to gauge the
performance of the various employees. Moreover, rewarding of
well-performing employees is a motivation to the employees.
This project aims a studying the effective systems of appraisal
and rewarding in the retail business. Effective appraisal systems
ensure that there is progress in the organization. Effective
appraisal systems are appreciated by the employees and are the
basis of retaining good performing employees. The proposal
aims at providing an understanding effectiveness of systems of
rewarding and appraisal to the performance and retention of the
employeesChapter 2: Literature Review2.1 Introduction
A critical review of existing literature related to the study is
significant since it helps in the researcher to develop an
insightful understanding of the topic. Analyzing previous
researchers gives a clear background of the study that will help

the researcher in identifying the existing gaps to fill on this
research. In order to purse the goal of literature analysis in the
study, the existing literature will be categorized ion to
theoretical perspective and empirical perspective. In the
theoretical study, the research will analyze existing theories
that are relevant to this study. In the empirical study will
consist of the observations and findings of other researchers, on
the issues of effectiveness of reward and appraisal systems in
increasing employee performance and retention. The literature
review will be guided by the objectives of the study which will
help the researcher in identifying essential knowledge to the
study. 2.2 Theoretical study
2.2.1 Equity Theory
According to Young (2018), John Stacey Adams suggest that
employees are motivated by the fact that they believed the
employments rewards or benefits are at least equal to the level
of efforts they subject to the work. Employees will consider
that they are treated fairy when they perceive that the ration of
their input is relatively equal to the outcomes or rewards
obtained. People are satisfied with the job when they weigh
between their remuneration to other employee in the same
business or other companies in the same industry. The employer
should provide wages that are competitive to other companies
so that when the employees weigh between the outcome and the
input they become satisfied with what they get. The reward
system should consider the work done by the individual and the
level of experience they possess. People at higher rank should
be given higher remuneration as compared to those at lower
rank (Abdelghafour & Al-Madi, 2003). This ensures motivation
of people to perform better since they rewards given are equal
the efforts. It is also necessary the employees doing similar
work or those at the same rank should be offered similar
compensation since equality is very essential in creating
motivation and satisfaction.

2.2.2 Agency Theory
According to Evans & Tourish (2017), Agency Theory promotes
the understanding of the correlations between provision of
incentives and performance measurement system. The theory is
applied in research of the mechanisms employed but the
business owners to align the CEO’s interest with the
organizations objectives. The problem of principal agent
revolves around the degree to which the principal is required to
devote their efforts in minimizing behavior that is shirking
especially for an agent who not trusted and motivated by self-
interests. The theory argues that the primacy of the values of
shareholders or owner of the company is taken for granted when
people utilize their power inappropriately or tend to execute
self-interest at the expenses of the company. Therefore, there is
need to ensure that every individual expressed the interest of
the company and the company to strive to meet the expectation
of the employee. Therefore, performance appraisal and reward
systems play a vital role in ensuring the employees are geared
towards achieving organization goals and the company strives to
reward their inputs by proving competitive incentives. Both
parties must strive to bridge the existing gap between the
employees interested and the company’s interest so that the
optimum goal is attained. Therefore, the use of appraisal is
aimed to limit the chances of an employee prioritizing on their
self-interest rather than the shareholder’s values and ensure that
every individual live in line with the expectation of the
company when working. Bridging the gap between the interest
of the individual and organizations’ goal will result into
motivation and retention of employees. 2.3 Empirical Study
2.3.1 Significance of Appraisal and Reward systems
These two performance management strategies are essential to
the business. They enable increased focus of attaining the goals
of the business. Every day work of the employee support the
mission of the company since they goals are aligned in
accordance with the functions of various departments in the

company. Performance appraisal helps in ensuring that the
employees retain their focus throughout the year so as to be
appraised or rewarded for good performance. These strategies
are essential to the attainment of business results and also
facilitate profitability (Puckett, 2015).
According to Fasseh (2013), they help in developing an
empowered and engaged workforce. The company is able to
strengthen employee engagement through the creation of a
business culture that is accountability shared for growth and
development of the employees’ career. Performance appraisal
and rewards systems help the management to develop an insight
into the skills and abilities of the workforce hence ensure that
the function and duties of the employees are matched with their
capabilities. The systems also helps in ensuring that employees
get direction, feedbacks and development of their needs that
will help the, in succeeding in their personal goals as well as
those of the larger company.
Performance management and appraisal are essential in the
management of talent since they help in establishing an
empowered and skilled workforce. The company is required to
do more than just auditing the achievement of employees, it
should focus on establishing a continuous support and
improvement of the workforce and the company so that to create
a conducive environment for working. The process helps the
company in goal setting and revisions those that may seem
unrealistic (Ibrar & Khan, 2015). Every employee’s should be
provided with a clear guidelines and understanding of the
expectation of the employer. They are also able to determine
where an individual will fit best in the company; the process
should begin from the company’s goal, down to the managers or
department goals, team and individual goat setting. This helps
the individual and the company to determine their priorities and
direction to follow in order to achieve all the goals set. This
process allows the individuals to feel they are part of the
business management and ownership hence ate motivated to
ensure that all these goals are attained.

Performance appraisal and rewards also helps the organization
management and coaching. The process allows the identification
of goals that required adjustments since there are other goals
that the employees may not possess the skills to attain them.
Feedbacks and coaching offered during the process enable gap
identification and solution to the gaps (Ayomikun, 2017). The
management is able to improve employee engagement and
performance as a result of continued feedbacks and coaching.
At times, the company may hire potentials but inexperienced
individuals hence performance appraisal will help them in
determining proper training and development programs with the
capability of addressing the skills and performance gaps that
exist.
According to Fasseh (2013), the process also helps the company
in ensuring that the employees acquire regular and quality
feedbacks which are essential to their performance and ways of
improving them. Once a gap in the skills is identified, the
management is able to advice the employee on the skills they
need to develop so as to attain the wish of the company’s and
also in line with their career progress. Therefore, there 9s need
for the workforce to recognize of essence of performance
appraisal and rewards which is to help them in development and
provide control over progression of their career.
Recognition and rewards helps the employee in balancing
between negative and positive feedbacks. Little appreciation for
good work done helps in satisfying the fundamental needs for
praise, leverage social engagement and reinforces the
appropriate behavior and culture. Rewards and recognition and
able to facilitate employee retentions and work engagement
which creates good ambassadors of the origination culture and
practices and also enhance productivity (Puckett, 2015).
2.3.2 Types of Performance Appraisal systems
According to Ayomikun (2017), ther are various type sof
appraisal systems that are used by companies which include 360
degree/Multi-rater appraisal system, Management by Objectives

(MBO), and Graphical Rating Scales. The 360 Degree
performance Appraisal which is also referred to as the Multi-
rater performance appraisal is one of the most recently used
system of appraisal in both large and small sized organizations.
It involves an appraisal systems that consists the views of
various groups and reviewers who have the opportunity of
socializing with the employees. These reviewers include the
managers, supervisors, customers and co-workers. The system
also encompasses the perception of the individual employee on
their opinion about performance; hence it is recognized to be
multi-rater, multi-source and full-circle appraisal system. In
this case, employee competencies is determined by the existence
of four key assessments which include self-assessment,
immediate supervisor, the subordinate assessment as well as
peer assessment hence constituting the 360 degree appraisal
system. The 360 degree appraisal system allows the reviewers to
gather information regarding the performance of particular
employee from various angles and degrees. The process also
ensures that the performance of the employees is viewed from
various angles and double checked it help in overcoming some
of the disadvantages that may accompany opinions from some
people such as subjectivity, prejudice as well as hale errors.
These systems are perceived by the employees to be more
accurate as compared to other methods since is more reflective
and involved the opinion of various which provide
comprehensive information that could assist in determining the
training need of the employees. However, this method is also
accompanied by disadvantages whereby the use of degrees ad
numeric limits the ability of the company to gather rich
information that may be provided by the reviewer.
Consequently, interpretation of the final results is usually hard
since it uses qualitative assessments and fails to provide
accurate qualitative information.
Management by Objective can be defined as a result-based
program of evaluation. The goal of the performance appraisal
systems in this method is mutually defined by various key

stakeholders who include the employees, subordinates and the
supervisors. MBO appraisal systems consist of various steps
which begin by establishing clear objectives for employees, a
detailed action plan stating the way the employees will achieve
the stated objectives is developed, and then employees are
allowed to implement the established action plan. This method
allows the process of appraisal to be objective. MBO stresses
that essence and values of employee involvement in the
appraisal system. When determining the effectiveness of the
MBO approach it is recognized that it provides a significant
benefit to both the employees and the organization. It promotes
objectivity, gives room for a two way feedbacks and also
encourage performance improvement through motivation. When
the process is implemented accordingly in allow the provision
of results that are fair and efficient. However, the process is
also accompanied by shortcomings whereby it does not allow
monitoring to determine every eventuality over a given period
of work since it focus on results rather than the process of
attaining the results. Consequent it gives little consideration for
a comparative evaluation since no benchmarks are established
based on the changing environments at the workplace during the
period of work.
According to the outlook of Rudge (2011) the reward and
appraisal system plays an important role within the
organization. The rewards and appraisal systems help in
increasing the motivation of the employees that directly affects
their quality of work. Moreover, it also helps in improvement of
the quality of the work and also improves the overall
performance of the employees. According to Cahill et al. (2014)
the satisfaction of the employees for their work is also
maintained and also helps in understanding the need and
requirement of the trainings. The employees tend to retain to the
organization and hence also tends to stay loyal to the
organization that increases the productivity.
Finally, the Graphical Rating Scales consist of the mostly used
method in performance appraisal of many organizations. This

method entails the use of a rating checklist during the appraisal
process. The manager simply used the checklist to rate the
performance of the employee on a continuum which range from
poor to excellent in accordance with the factors being
evaluated. The graphical rating scale is popular since it has the
ability to utilize this scale in a variety of factors or jobs being
evaluated. The process also required minimum cost, time and
training efforts hence makings it suitable to many people. The
scale is used to evaluate various factors which include the
quality of work of the employee whereby the ability to meet the
requirements; desired outcomes and expectation are assessed. It
is also used in productivity assessment whereby it determines
whether the employees used the available plans appropriately,
complete assignments as scheduled and used the work time
accordingly. Graphical Rating scale can also be used in
assessing the knowledge of employees in relation to the job
done whereby the relevant skills are assessed especially those
gained through on-the- job training, education and experience
(Ayomikun, 2017).
2.3.3 Types of reward systems
There are various types of reward systems that are utilized the
various organization regardless of their size. They reward
systems can be categorized as either extrinsic or intrinsic
rewards. Extrinsic rewards are usually in form of tangible
materials which are given to employees’ by the manager in
relation to good performance. They include pay raises, benefits
and bonuses. They are referred to as extrinsic because they are
externals as related to the work itself, and people can control
their size regardless of whether they are granted or not. On the
other hand, intrinsic rewards refer to those that are intangible
such as personal achievement, sense of pleasure, professional
growth, accomplishment and recognition. This aims to improve
the inner attitude of the individual towards their work. Most
organization utilizes the following discussed typed of reward to
motivate the employee to improve in their productivity.

Variable pay is mostly used by companies and also referred to
as the pay-for –performance. It refers to a mode of reward
whereby compensation programs is a portion of the individual is
considered to be at risk. Variable pays can be bounded to
performance of the individuals, business unit resulted,
accomplishment by individual or a combination of these factors.
These forms of reward may take various forms such as stock
options, bonus programs or one-time award for
accomplishments. Some business choose to pay employees low
incentives as competed to their competitors in the same industry
but subject the employee to motivation and rewards used in
variable pay programs. The good incentives provided by the
pay package provide a positive challenge to the employees
hence motivate them to stretch their performance. However,
when too much effort is required to attain the goal, then they
employees end up ignoring the program.
Bonuses programs are also used to motivate employees.
Bonuses usually reward individual for accomplishments
especially in sales organizations with the aim of encouraging
the salespersons to bring forth higher profits or additional
business. They are also used to recognize group
accomplishment. However, bonuses are recognized to be
disadvantageous since they generate short-term motivation
hence small businesses are advised to consider utilizing other
form of reward systems that will target long-term motivation.
Rewarding the performance of an employee from the past years
encourages short-term perspective of motivation rather than
future-oriented accomplishment. Therefore, these programs
require careful considerations during structuring so as to ensure
that the reward accomplishment are above or beyond individuals
or group based legitimate strategy of rewarding outstanding
performance and such compensation have the potentiality of
encouraging future top-level efforts in functions, failure to
which there are misinterpreted whereby there are perceived as
entitlement or regulates merit pay instead of rewards for an
outstanding work. The bonuses reward systems are considered

to be perfect.
Profit sharing is also utilized whereby it refers to the strategy of
developing poo of monies which are disburden to employees by
considering the stated percentage of the profit obtained by the
company. The amount presented to the employee is usually
equal to the percentage of their salary which I disbursed once
the business closes their end of year books. The benefits
provided to the employees can be in from of actual cash or
contribution the employees plan. This mode of reward helps the
company to keep low fixed costs. This profit sharing reward
systems is based on the idea of rewarding the employees for
their contribution towards the attainments of the organization
profit goals. It encourages the workforce to stay up since there
are structures to only reward employees who remain with the
company for a number of years. Unless profit sharing is
managed appropriately it might not attain the goal of motivating
individuals especially when all the people receive equal the
shared regardless of their contribution.
The other reward systems is the stock options programs provide
the employee with the right to a specific number of shares at a
fixed price over a certain period of time. In most cases they
are generally authorized by the board of directors or the
company and approved by the shareholders. The number of
options awarded to the employees is usually equal to a
particular percentage of outstanding shares of the company.
This mode of reward systems reward the employee for being
tied to the company for a long period hence serves as a
motivator that is long-term. Once the employee remains in the
company for a certain period of time they are vested fully in the
programs. In case the individual leave the company, the
programs of stock option are cancelled. Once the employee has
purchased the shares they are given an opportunity of selling
them to the open market. However, this method of rewards
imposes a risk to both the employee and the company since
incase the options strikes a higher prices that the market prices
the programs becomes worthless to the employee. In case the

employee utilized the option, the company issues a new stock
shares which can be traded publicly. In order to strike a
balance of the two factors, earning must appreciate at an equal
rate to the rate of increasing the outstanding shares.
Otherwise, it imposes the risk of the company repurchasing
shares that are on the open market with the aim of reducing the
number of outstanding company shares.
Recognition is also used by businesses to reward employees for
good performance. In small business, the owners and manager
perceive recognition to merely appear as an extra effort in
combination with tangible returns in regard to employee’s
performance. In cases where an entrepreneur has more ingenuity
as compare to the available cash, recognition presents an
opportunity for employees to be motivated. In order to develop
recognition programs that are effective, business owners are
required to ensure that they separate the programs from the
system of rewarding employees in the company. This ensures
that the owner recognized the efforts of particular employee.
This method may be accompanied by other form of rewards with
monetary value such as gift certificates, plagues and luncheons
but money in form of cash is discouraged for recognition
(Cooper & Eerde, 2014).
2.3.4 Perception of employees towards appraisal systems and
reward systems
According to Dipboye and Pontbriand (1981), the effectiveness
of reward and appraisal systems has been researched on my few
researchers. It is important for the company to review how they
can design heir systems so that they can improve employee
perceptions towards developing motivation among them. It is
predicted that the workforce is positively moved by the latest
performance appraisal systems since they are allowed to
participate the in e process of appraisal, and also due to the fact
that the appraisal systems are goal oriented. It is also perceived
that employees positively embrace appraisal system to a degree
that they view the factors evaluated by the process to be

relevant to their jobs. It is evident that appraisal interviews that
tend to focus on mannerism and personality of the employees
lead to more subordinate dissatisfactions that interviews that
mainly focus on job-related matters. Therefore, perceived goal
orientations as well as participation of employees have the
potentiality of moderating the favorability of employees
towards appraisal opinion. They tend to favor process that
enhances their participation and those that are goal oriented.
According to Jain and Jain (2014), employee favour perfromnce
appraisal since the activities involved provide an apportunity
foir the comaosny to seek and asess the employees in regard to
their competency, enhance perfromance and ditsribute rewrads
accordingly. Perfromanec a[praisals are considered to be very
essentail in cretaing a positive working environment since it
involces a ranbge of factors such as communicatsion, reward,
equity and fairness, employee relatsions, attitude towards
conflicts, trust and acceptance and socail context. It is very
essentail athat the comaosny addreses ythe recatsion of
employees towars appraisal due to certain reaosn such as it
involveds that notion that is representde by the recations which
is a criterion fro interestd that is great to practitioners.
Employee rewards are efecive in motivatsing empoyee
perfromance in agreat manner. They provide the employee
with a sence of job security and opportuynitiy fro their
advancemnte since they encourgae them to take pride in the job.
There is no right or wrong systems for rewards but rather the
management is required to identify the intent of the rewards and
the impact intended among the employees. It is necessary to
recognize that there are systems that result into long-term
motivation while other focus on short term motivation. The
management should focus on establishing those that will lead to
long-term motivation (Ayomikun, 2017). 2.4 Gaps in Literature
There are many researches that strived to examine the issues to
reward systems and appraisal systems in the companies.
Researchers have studies the input of various theories in the
issue of reward and appraisal in the companies. The impact of

the performance management strategies have been identifies
whereby most studies recognize that there is a significant
impact of the two in the business. The researcher had also
identified the existing types of Reward systems and appraisal
systems that hare implemented by various companies. These
studies have played a significant role in developing the
knowledge on the topics of study. However, the researcher has
identified that there exist a gap whereby this study that strive to
recognize the effectiveness of the reward systems and appraisal
systems in increasing productivity and retention of the
employees. As a result the research is interested in filling the
gap hence has decided to carry pout this study. 2.5 Conclusion
In Conclusion, Literature review signifies the evident as well as
reflective comments and speeches of various individual so as to
support the analysis and study of the researcher regarding
reward systems and appraisal systems. However, there exist
various gaps in the literature review that require studies to be
carried out hence researcher in the field should take the
initiative of identifying the gaps and striving to fill them.
Despite the gaps, the literature had helped in proving their
significance and analysis which will be of benefit to the study
since it will guide the activities of the study. Chapter 3:
Research Methodology3.1 Introduction
Methodology includes reflective methods of techniques, which
help respective researchers to research or analyze a significant
research study in order to provide supports and information
regarding the topic to the readers as well. In this respect, it is to
be defined that this chapter helps the researchers and analysts to
find out and point out innovative and significant techniques of
research including diagrams, paradigms, models and theories
respectively. Moreover, it is to be defined that research topic
denotes the researchers to designate the research process
including quantitative or qualitative methods as well. This
research study needs both qualitative and quantitative research
method, through which researchers can be able to find out
researching data and information for the research study as

well.3.2 Method outline
Every respective component and part is important and effective
in order to gather methods and techniques of researching a
significant research topic. Method outline indicates the
researcher’s significant techniques and methods of a research
study in order to analyze significantly. Methodology includes
reflective methods of techniques, which help respective
researchers to research or analyze a significant research study in
order to provide supports and information regarding the topic to
the readers as well. In this respect, it is to be defined that this
chapter helps the researchers and analysts to find out and point
out innovative and significant techniques of research including
diagrams, paradigms, models and theories respectively.
Moreover, it is to be defined that research topic denotes the
researchers to designate the research process including
quantitative or qualitative methods as well. This research study
needs quantitative research method, through which researchers
can be able to find out researching data and information for the
research study as well. Comment by Bincy Baburaj:
References required. Most of the statements are very strong, so
make sure citations are provided.3.3 Research Onion
The Research Onion Equipment helps the researcher in pointing
out various steps regarding the research analysis of this topic.
As a result, it is necessary to recognize that research onion
consist of six respective layers which are situated in accordance
with the layers of an onion. The outer most layer of the onion
represents by research philosophy. The second layer is the
research approaches, third replaces the strategies, the fourth
refers to the choices made, the fifth is the time horizons while
the inner most parties is the technique and the procedures used
in the research. The research onion is highly significant and
helpful in this research. Comment by Bincy Baburaj:
Reference?
F
Figure 3: Source: Saunder, Fernandes, and Kosnes (2009)3.4

Research Philosophy
Research Philosophy assists the researcher to understanding and
familiarize with all the sectors and components of the topic.
The research philosophies can be three parts which include the
positivism, post positivism and realism. The research
philosophy helps the researcher to describe and define the
information and topics to the readers. For this particular study,
the researcher will utilize the realism philosophy which will
help in identifying the real attitude of the Human researcher
Managers and Employee towards the reward systems as well as
the appraisal systems and they impact in increasing productivity
and retention of the employees.
Figure 4: Research Philosophy (Knobe & Nocholas, 2013)
Comment by Bincy Baburaj: Image is not clear, please
change background colour.
3.5 Research Approach
Describing the research approach is essential so as to evaluate
and develop the particular topics the study. Research
approaches include the deductive and inductive approaches. In
this study, the researcher will use the Deductive approach. This
approach helps the research in analysis so as to gain
information and knowledge thoroughly about the topic.
Deductive approach enables the researcher to highlight and
adopt theories and models that are highly applicable so as to
gain knowledge and information on this particular topic. 3.6
Research methods
Research methods refer to the methods used by the researcher in
performing the operation of the research. Research methods
involve the use of data collection in the process of researching.
Research methods include interviews, Case studies, Survey,
experiments and observations. The research methods are
applied to gather information that enables the researcher to find
the answers of the research problems and questions (Saunder,
Fernandes, & Kosnes, 2009). Comment by Bincy Baburaj: Is

this the only source that you have used throughout? Please refer
to Creswell and some other research methods sources as
well.3.7 Research Design
Research Design of a particular topic assists the researcher in
structure or designs the topic or the research and helps to
analyze the topics thoroughly. There are various research
designs which include Descriptive, explanatory and exploratory
research design. These designs assist the researcher in
describing and analyzing the research study so as to provide
current analysis and information to the reader. In this study,
the research selected descriptive research design. This research
design helps the researcher in describing and defining the
research topic adequately and thoroughly. In addition, the
design helps the researcher in identifying and pointing issues
and problems during the analysis of the research topic. 3.8
Collection of Data
The method used for data collection will be done using both the
primary and secondary data collection methods. Both qualitative
and quantitative questionnaires will be used for primary data
collection. Interviews will also be utilized so as to obtain
information that is consistent. The secondary will be obtained
from online sources, journals and other offline sources (Johnson
& Turner, 2003). The survey will include a sizable number of
human resources managers and employees. The questionnaires
and interview questions utilized will be provided in the
appendices. However, in order to make the analysis easier, the
researcher will use similar question in the questionnaires and
interviews. The researcher will utilize data collection assistant
so that they can help in collecting data from various reasons and
also to enable the researcher in completing the study within the
appropriate time. Comment by Bincy Baburaj: How many
questionnaires? Comment by Bincy Baburaj: So who are the
population involved in the study? Where are they based?
UAE?3.9 Data analysis
Once the data has been collected, it will be analyzed by the
researcher so as to describe different problem and solution of

essential topic and research topic. Data analysis assists the
readers in understanding the effective issues and resolutions
which are generally highlighted by the researcher through data
analysis. The mode of data analysis utilized will be the
statistical data analysis methods since they data collected
contain quantitative data. Comment by Bincy Baburaj: So
are you going to use any statistical software or just excel sheet
for analysis, please specify.3.10 Sampling method
There are two types of sampling techniques which include the
probability and non probability methods. In the probability
sampling method the respondents are provide with equal
chanced of participating in the research whereby they present
their information and thoughts regarding the topics. In the
other hand non-probability sampling methods is defined as the
respondents are not given equal chance to explore their
information regarding the topic of study. This study will utilize
probability sampling methods, whereby the researcher will use
the random sampling technique to collect the data. Comment by
Bincy Baburaj: Reference. Comment by Bincy Baburaj: ?
Sample will be collected among the employees and human
resource managers hence the sample to be collected will consist
of a sample population which is as indicated below who will
come from various retail businesses which will also be selected
on random sampling technique. This technique of sampling will
be of advantage since it will provide respondent with an equal
chance of participating in the study. The technique is also
recognized with its tendency of reducing chances of bias
practices during the selection of the participants. Comment by
Bincy Baburaj: So how many people will be included in the
sample? So would it be same sample for both survey and
interviews?3.11 Researcher Process Flow Chart Comment by
Bincy Baburaj: Chart is not clear and should be placed after the
research approach.
Figure 5: Research process and Flow Chart
Identification of Research Topic

Literature Review Identification of Research Gap
Identification of Variable and Preposition of Theoretical Model
Conclusion and Recommendation
Findings
Hypothesis
Conducting survey
Questionnaire Development Sampling Pilot Study and Pretesting
Hypothesis Formulation
Formulation of Research Objectives
Research Question
3.12 Target Population and sample size
Figure 6: Sample population.
Category
Population
Human Resource managers
15
Employees
45
Total Sample Population
60
The researcher will use this population in questionnaires. Other
five responded will also be interviewed. This population will be
obtained from the human resource and employees in the retail

businesses whereby the researcher will be interested in
addressing the research questions of the study. Comment by
Bincy Baburaj: Area of study is not clear. It was mentioned
that, its about retail sector but cant find this mention anywhere
in the methods chapter.3.13 limitation of the study
While researching or analyzing a significant research study, it is
to be justified that researchers face a number of limitation that
they must strive to handle so as to attain the intended results of
the study. Accessibility issue is one of the limitations since
they only time the researcher can access the employee and the
human resource manager is during their working hours. These
people remain busy in the working place during the working
hours and it would be difficult to stop them from working so
that they can respond to the questionnaires and interviews.
However, in order to deal with the problem, the researcher will
book appointments with the managers and employee to be
interviewed. The researcher will also present questionnaires to
the employees and human resource manager and collect them
latter so that the people are given a humble time to respond to
the questionnaire during their free time. Other limitation will
include the limitations of the budget and the time for research.
The cost of data collection, analysis and report complying. In
some instances, statistical analysis will require an analyst; this
will present a cost to the researcher. The time presented for the
whole research process is also limited hence it may strain the
researcher. 3.14 Ethical Consideration
The research will be conducted in according to the rules and
regulations of carrying out research including data collection
and result presentation. All codes of conduct will be followed
by the researcher (Maloney, 2012). Confidentiality of the
participant will also be maintained in that the information
provided will only be applied for this particular study. Their
identify will be protected hence they will not be allowed to
provide details that will help in arriving at the most appropriate
conclusion and recommendation of in this study. The researcher
will also utilize data collection assistant who will be informed

of the process of collecting data so that they follow the ethical
practices during the data collection process. 3.15 Timeline of
the research Comment by Bincy Baburaj: Not sure on what
basis the time line was created. I think its quite impossible to
do the mixed data collection within 1 week. Even for surveys
you need atleast 2-3 response time.
Activity /Time
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Setting of research aim
Research objective design
Research question clarification

Evaluation of topic contribution
Thesis selection
Theories selection

Data collection
Data analysis
Figure 7: Gantt chart
Source: Created by the Researcher3.16 Conclusion
It is to be defined at the end of this chapter of research
methodology; researchers provide significant techniques and
procedures of collecting and gathering data of SPSS, which is
significant and adequate to identify the effectiveness of reward
systems and appraisal systems in increasing employee retention
and productivity in the retail sector. Moreover, this chapter also
signifies and defines that data source is highly depended upon
the research topic and study as well.
Research

Philosophy
Positivism
Post Positivism
Realism

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