International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Goodness of Rewards and Incentives
Dr Janemary Thirusanku, Yap Yin Yin

Human capital is the most valuable asset of an organization which has been acknowledged as the significant source of competitive advantages because the knowledge, skills and experience of motivated employees cannot be imitated. This has additionally prompted to an increased understanding of various motivations for employees at work. This is because motivated employees would be satisfied with their job, demonstrate pleasurable positive attitudes and work energetically toward the accomplishment of organizational goals. Hence, effective rewards system is vital to determine the level of employees’ motivation and job satisfaction that could bring better outcome in return. The purpose of the paper is to discuss the positive and negative impacts of rewards and incentives on motivation and job satisfaction among frontline employees in hotel industry. This paper employed the qualitative research method through google scholar from the year of 2018 to 2022 to investigate the influence of rewards and incentives that yield positive or negative outcomes. The main results of this paper have shown that intrinsic and extrinsic rewards lead to employee motivations and job satisfaction, which further results in improved employee’s retention, employee’s engagement and customer satisfaction. Moreover, this paper also reveals that intrinsic reward has higher positive effects to employee motivation and job satisfaction compared with extrinsic reward. However, if the reward system is not implemented effectively and fairly, it could impact the employees’ enthusiasm to perform effectively and efficiently. Since the priority of this paper is on hotel industry, the comparison with other industries is restricted.

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