Employee recognition thesis

DUBLIN INSTITUTE OF TECHNOLOGY
BUSINESS SCHOOL
Business and Management
(DT365)
“An exploratory study of employee recognition
programmes and practices among the Irish grocery
retail market.”
(Word count 13,712)
James Brown
March 2016
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Dedication:
This project is dedicated to my parents Patty and Lar Brown and my
mother in particular who has encouraged me and helped me through my
college years. Thank you.
Acknowledgements:
I would like to acknowledge my course tutor Dr. Eoghan O Grady for his
help and guidance through my college years and particularly my final
year. Thank you.
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Disclaimer:
Name: James Brown
Programme: Business and Management
Module Code: DT365
Assignment Title: An exploratory study of Employee Recognition Programmes
and practices from an employees perspective among the Irish
Grocery Retail Market.
Submission Date:
Word Count
Declaration:
I, James Brown, declare that this project is entirely my own work, except where
otherwise accredited, and that it has not been submitted for a degree or other award to
any other university or institution.
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Abstract
It is believed that Employee Recognition Programmes have the ability to attract
talented employees to a company and increase the satisfaction and retention levels of
the employees. However, there are still difficulties as to how we deploy employee
recognition programmes and just how effective they can be in driving the overall
performance of a company. This will be the central question addressed in this project.
The literature review of this project defines employee recognition and its key
components and then examines the process of implementing and running employee
recognition programmes within an organisation. There are evidently numerous
challenges and difficulties in the process of introducing and successfully conducting
employee recognition within an organisation and the literature review examines areas
to overcome in the process of this. I have then carried out primary research through
the process of in-depth interviewing and I have focused my research of employee
recognition within the grocery retail industry. Two Human Resource managers have
been interviewed from two large grocery retail organisations for the purpose of
identifying what they believe to be the benefits, issues, motivation, role of Human
Resource managers and other management and recommendations for any
improvements or alternatives they may believe there are to employee recognition
programmes. The findings of the primary research have been compared and
contrasted with those of the literature review.
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TABLE OF CONTENTS
CHAPTER 1: LITERATURE REVIEW
1.1 Introduction to Recognition Programmes
1.2 Employee recognition defined
1.3 Key Components of employee recognition
1.3.1 Motivation
1.3.2 Intrinsic Motivation
1.3.3 Extrinsic Motivation
1.3.4 Intrinsic versus Extrinsic Motivation
1.3.5 Meaningful work
1.3.6 Individual needs of the employee
1.3.7 Quality of work life and health and well-being
1.4 Employee recognition programmes
1.4.1 Methods of recognition
1.4.2 Methods of communication
1.4.3 The role of management
1.5 Benefits of employee recognition
1.6 Issues of employee recognition programmes
CHAPTER 2: RESEARCH METHODOLOGY
2.1 Introduction and rationale for the research
2.2 Research Process
2.3 Problem Definition
2.3.1 Research question
2.3.2 Research objectives
2.4 Research approach Developed
2.4.1 Research paradigms
2.4.2 Interpretivist paradigm
2.4.3 Research approach chosen
2.5 Research approach developed
2.5.1 Rationale for the selected research design
2.5.2 Qualitative research versus Quantitative research
2.5.3 Rationale for chosen research design
2.6 Data collection
2.6.1 Data collection techniques
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2.6.2 Rationale for selecting Qualitative interviews
2.6.3 Planning and conducting interviews
2.6.4 Preparing for In-depth interviews
2.7 The sampling process
2.7.1 The sampling unit
2.8 Data preparation and analysis
2.8.1 Research ethics
2.8.2 Limitations of the research 7
CHAPTER 3: FINDINGS
3.1 Introduction
3.2 Recognition Programmes: Benefits
3.3 Recognition Programmes: Issues
3.4 Methods of recognition: Rewards versus Recognition
3.5 The role of communication
3.6 The importance of Management training
3.7 Measuring Employee Recognition to organisational success
3.8 Alternatives to employee recognition
CHAPTER 4: GROCERY RETAILING IN IRELAND
4.1 Definition
4.2 Headlines
4.3 Competitive landscape
4.4 Company profiles (Tesco Ireland, Supervalu)
CHAPTER 5: SUMMARY AND CONCLUSION
5.1 Summary of the research findings
5.2 Limitations and recommendations for further research
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SECTION 1: LITERATURE REVIEW
1.1 INTRODUCTION TO RECOGNITION PROGRAMMES:
All Employees like to be recognised and appreciated for their performance at work. A
high performing employee will work extra hard to deliver what is critical for an
organisation to succeed. For these reasons, organisations attempt to deliver a platform
for these high performing employees to thrive and feel appreciated in their place of
work. A strong employee recognition programme can be the key to motivating these
employees to work harder and introduce a healthy amount of creativity into what may
be a ‘stale’ corporate culture. Employees who perform consistently and deliver
exceptional results that are aligned to those of the organisations values and ultimate
goals can be recognised and rewarded through recognition schemes.
Traditionally, recognition programmes were simply considered as, ‘a nice thing to
do’, however today companies are thinking a lot more about the importance of
recognition programmes and how they can approach aligning them with business
goals. Employee recognition programmes, when developed, implemented and
administered appropriately, can improve the communications between management
and employees, and also increase the loyalty and commitment by giving the
employees more of a stake in the company’s success.
Large amounts of employers have started to add employee recognition sections to
their websites and employment details to inform prospective employees about
incentive and reward programmes which are in place within their organisation in the
attempt to portray themselves as an attractive place of work. Although it may be a
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crucial part of the process, recognition programmes are not just about making
employees feel good. A well designed programme can help drive revenue growth,
boost productivity of workers and improve employee retention. Van Dyke (2012)
believes employees have the ability to boost revenue and sustainable growth through
implementing an effective recognition programme. One which is aligned to the values
of the company. Luthans (2000) agrees and furthermore acknowledges that employee
recognition must be strongly considered by an organisation in order to retain talent
and drive productivity. The application of employee recognition is rooted in the
behavioural psychology principle of positive reinforcement. Behaviour which is
rewarded is most likely to be repeated. In a work place, recognition for behaviour that
promotes an organisation’s goals has been clearly shown to improve employee
performance and retention.
In this literature review, this paper examines employee recognition and its definition.
It will then discuss key components of employee recognition programmes such as
motivation, employee development, meaningful work, preserving the individual
identity and employee health and well-being. It will then look at the design and
implementation process of a recognition programme identifying the benefits and
concluding with any issues with employee recognition.
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1.2 EMPLOYEE RECOGNITION DEFINED:
Employee recognition is the opportunity of an organisation to acknowledge the
unique contribution and value of expertise and experience of an employee or a team
Van Dyke (2012). Personal employee recognition focuses on the expertise of the
individual, unique talents and qualities they possess. The recognition of work
practices acknowledges the way by which work practices are performed, the
demonstration of creativity, innovation and the continued improvement of work
processes and practices. A recognition of employee’s dedication to work views the
quality and quantity of efforts an employee makes to contribute and how they align
with the overall objectives of the organisation for which they work. Results must be
acknowledged. Viewing the actual end product after a task has been completed.
Gratitude will be determined on the efficiency, usefulness and quality of work that
contributed to the end result.
Brun and Dugas (2008:727) have defined Employee Recognition as:
‘ A constructive response; it is a judgment made about a person’s contribution,
reﬂecting not just work performance but also personal dedication and engagement.
Lastly, recognition is engaged in on a regular or ad hoc basis, and expressed
formally or informally, individually or collectively, privately or publicly, and
monetarily or non-monetarily’.
Brun and Dugas (2008) concur with Danish (2010) that employee recognition is a key
component of an organisations success and will most likely have a strong impact on
the area of industrial relations as it will help with building the relationships between
employers and employees to promote their respective interests. They believe
employee recognition is important to the employee as tasks in the workplace are
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becoming more difficult and complex and require a considerable level of effort and,
for this reason, employees should be recognised and rewarded for their hard work.
Brun and Dugas (2008) believe that, the purpose of recognition programmes is to
communicate with employees and pay them in such a way that they can link reward to
performance.
Brun and Dugas (2008) see the key components of employee recognition as:
Motivation, meaningful work, preserving individual identity, employee development
and that can be a driver in personal development ensuring the well being and health of
employees.
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1.3 KEY COMPONENTS OF EMPLOYEE RECOGNITION
1.3.1: MOTIVATION
In order for organisations to meet obligations they have to their shareholders,
employees and society, its top management must develop a relationship between the
organisation and its employees that can fulfil the continuous changing needs of both
parties. The organisation, at least, expects employees to perform reliably the tasks that
are assigned to them at the standards that are set for them, and also to follow the rules
that have been established to govern the workplace. However, management often
expects more. Employees are expected to take initiative, supervise themselves,
continue to learn new skills and be responsive to business needs. Then from the
employees’ perspective they expect the organisation to, at least, provide them with
fair pay, safe working conditions and equal/fair treatment.
Employee motivation is evidently an important issue for business today as companies
struggle to know how to motivate their employees. Motivation has been defined as:
the psychological process that gives behaviour purpose and direction (Kreitner, 1995);
a tendency to behave in a purposive method to achieve specific, unmet desires
(Buford, Bedeian, & Lindner, 1995); an inner force to gratify an unsatisfied need
(Higgins, 1994); and the will to accomplish (Bedeian, 1993). Hanson (2002) believes
that in order for companies to develop and implement a successful recognition
programme they need to discover the difference between reward and recognition, as
there are distinct differences in motivating each of them. Hanson (2002) analysed the
theories of Intrinsic versus extrinsic, hygiene versus motivators and coping versus
expressive and believes that the motivational processes of recognition will differ from
the application and the outcomes of each motivational process will be different. The
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Author believed that rewards programmes should not expect increased loyalty or
commitment and should probably only expect the minimum behaviour to meet the
expectations of the reward. However, a correctly implemented and appropriate
recognition programme will see a greater drive for excellence and continuous
improvement in its employees.
Ali and Ahmed (2009) view the processes of motivation as intrinsic versus extrinsic
and state that in intrinsically motivated behaviour there is no reward except with the
task itself. Reward and recognition programmes come within the discussion on
extrinsically motivated behaviour that occurs when an activity is rewarded by
incentives not inherent in the task.
1.3.2: INTRINSIC MOTIVATION
Definitions of intrinsic motivation:
• "Intrinsic motivation occurs when we act without any obvious external
rewards. We simply enjoy an activity or see it as an opportunity to explore,
learn, and actualise our potentials."
(Coon & Mitterer, 2010)
• "Intrinsic motivation refers to the reason why we perform certain
activities for inherent satisfaction or pleasure; you might say performing one of
these activities in reinforcing in-and-of itself."
(Brown, 2007)
Intrinsic motivation refers to behaviour that is driven by internal rewards. The
motivation to act and perform in a behaviour arises from within the individual as it
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is intrinsically rewarding. People perform in something they have an interest in and
would like to further their knowledge or expertise in believing they will benefit
from doing so.
1.3.3: EXTRINSIC MOTIVATION
Definitions of extrinsic motivation:
"Extrinsic motivation refers to our tendency to perform activities for known
external rewards, whether they be tangible (eg, money) or psychological (eg, praise)
in nature." (Brown, Psychology of Motivation, 2007)
“Motivation can come from the outside, such as the motivation to win medals,
receive financial rewards, and attract attention from the media. This is known as
external, or extrinsic, motivation because it involves participation in behaviour for
some kind of reward that is external to the process of participation." (Karageorghis
& Terry, Inside Sport Psychology, 1969)
Extrinsic motivation refers to the behaviour that is driven by external rewards such
as money or praise from an external source. A persons motivation of performing or
acting in a certain behaviour is extrinsically motivated meaning they benefit through
the form of reward (Money) or recognition (praise).
1.3.4: INTRINSIC VERSUS EXTRINSIC MOTIVATION
Intrinsic motivation means that we place more value on outcomes that are sourced
from within, rather then from external factors. Intrinsic motivations are linked with
our feelings.
For example:
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• Feeling satisfied
• Feeling capable
• Enjoying a sense of challenge
• Reinforcing self-esteem
• Satisfaction at accomplishments
• General enjoyment in our work
• Feeling appreciated
• Satisfaction at realising our potential
• Taking pleasure in being treated with care and consideration
How do managers promote and support intrinsic motivation and behaviour in their
workers? By ensuring the value and achievements of their employees is fully, fairly
and explicitly recognised.
Extrinsic motivations: we are also motivated to perform by external or tangible
rewards by things or factors which come from other people or organisations. These
can include:
• Salary
• Fringe benefits
• Promotion
• Security
• The physical work environment (such as better office)
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• Better conditions of work
These benefits are often beyond the control of a general line manager and more often
determined by higher organisational level personnel. Nonetheless, effective managers
should be supportive of employees who are motivated by extrinsic factors, if they are
justly entitled to these rewards.
Hertzberg (1966) argues that intrinsic motivators can help achieve desired behaviour
from employees and are driven by employee autonomy, job feedback and task variety.
Danish (2010) argues intrinsic motivation leads to more creative work from workers,
however, extrinsic motivation is seen to be unfavourable towards producing creative
levels of work. Long and shield (2010) believe that work and money tends to motivate
behaviour; however, this was challenged Hertzberg (1966) to be an inferior extrinsic
motivator. Long and Shield (2012) debate that extrinsic incentives can eliminate any
intrinsic motivation in a work place.
Intrinsic and extrinsic motivation can be considered as a continuum and people can
easily move along any continuum. Its better not to consider these motivational factors
as opposites as most people are motivated by a combination of the two. Companies
will ideally look towards balancing Intrinsic and Extrinsic motivation. Companies
search to discover the best methods that will motivate employees’ behaviour. Saile
and Schechter (2012) suggest that the level which an employee is at within an
organisation may impact the type of reward that may motivate them. For workers,
Intrinsic rewards tend to motivate and lead to job satisfaction in higher level jobs
while in lower level jobs extrinsic rewards have a more positive effect on motivation
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and job satisfaction (Schechter, 2012). However, Brun and Dugas (2008) do not agree
and believe that the status or profession of the workers is irrelevant. Long and Shield
(2010) suggest that alternatives could be social recognition which utilises non-
monetary methods to recognise and achieve appropriate employee behaviours
concluding social recognition can indeed, reinforce desired behaviours from the
employee. There are many arguments with regards to Intrinsic and extrinsic
motivators and this can be further acknowledged by looking at other components of
recognition such as, meaningful work, Individual needs of the employee and
employee development.
1.3.5: MEANINGFUL WORK
Meaningful work can be explained as, Employees’ perceived positive value of what
they are doing. Characteristics of meaningful work include:
• Basic needs are met: Employees physiological and safety needs must be met.
This is a base requirement for meaningful work to emerge.
• Strengths are leveraged: Strengths are what energise the employee. Employees
must experience work which energises them. Otherwise, all work is draining
and meaningless to the employee.
• Personal satisfaction from work: Employees see their work as fulfilling.
• Being in on things: Employees believe they are trusted with important, inside
knowledge and information
• Treated with respect by managers: Employees believe they can speak their
ideas, listened to, and acknowledged in a positive manner.
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• See how their work fits into the bigger picture: Ultimately, what does the
employees input contribute to the goals of the organisation and how they are
aligned.
• Sense of independence and interdependence: Autonomy in completing work is
important. Collaboration is vital in the 21st
century given the Internet and
globalisation. These raise the importance of interdependence in today’s
workplaces
• Employees believe that they are valued by their organisation and the
managers: Meaningful work is marked by the belief that employees are the
means to a profitable end. Employees who see this can be motivated and
valued through their contribution.
• Promotion of other’s satisfaction: Ability to be concerned for others well-
being and humanity is important to meaningful work.
• Recognised, give recognition for good work: For meaningful work to emerge,
employees efforts are recognised in a manner that’s important to them.
Giancola (2011) argues that organisations should look to make their work intrinsically
satisfying as this can motivate employees to perform at a higher standard for the
organisation. In the 70’s job enrichment was very popular as, at the time, a lot of
employees were dissatisfied with their work and believed it to be boring with little
challenge and little meaning. Giancola (2011) has the belief that Hertzberg (1992)
deserves the credit for implementing job design features such as job enrichment as an
important element in work motivation. He acknowledges that meaningful work can be
achieved through an effective job design that has meaningful roles that are aligned to
the needs of the organisation.
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1.3.6: INDIVIDUAL NEEDS OF THE EMPLOYEE
Van Dyke (2012) recognised that promoting the use of non-cash rewards that align
the personal interests of employees with the company’s values represented a
significant opportunity for a company to achieve better results. This provides both an
opportunity to control spending and also proves to better motivate the employees.
Perlmutter (2012) agrees that rewards need to be tailored to the individual needs of
employees, however, he recognises that choosing what these rewards are can be a
difficult process when deciding on a programme.
Each employee has different needs. There will be different goals and perceptions of
corporate culture. Companies must adapt and come up with different approaches to
seal the generational gaps and differing personality traits for all employees to thrive
and be content in a particular corporate culture
1.3.7: EMPLOYEE DEVELOPMENT
Management ought to recognise hard work of their employees. Employees who put
their heart and soul into their work and to the organisation also expect to receive
something in return. Yes, Money can be one motivating factor but nothing like it if
you prepare employees not only for his/her current job but, also, for future
assignments. Employees want and need to grow in the company with time. Employee
development is important for employees to enhance their skills and upgrade their
existing knowledge to perform better. Employees like to acquire new skills in their
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job and a sense of pride and motivation develops when employees believe that their
organisation is investing time and money into training them. Job enrichment and
development are therefore considered key to recognition. Empey (2010)
acknowledges how the roles of individuals can be enriched through the processes of
coaching/mentoring, training, project and job rotation, secondments and conferences.
The employee needs to be made aware that this is in recognition of the employees
potential or contribution to the future of the organisation. Giancola (2011) identifies
the relevance of job design that should assist and allow the development and growth
of the employee.
1.3.8: QUALITY OF WORK LIFE AND HEALTH AND WELL BEING
It makes things a lot easier when looking to attract and retain top talent if the
organisation has built a reputation for taking good care of their employees. A quality
work-life programme refers to the balance by which employees work, personal time
and family care are maintained with minimum amounts of conflict arising. Using
these work-life programmes as a motivational technique including examples such as,
flexible work times, workplace wellness and family support will allow employees to
utilise their time more efficiently and makes life easier with the support of their
organisation. Flexible work times can allow the employee to work whenever best suits
them as long as they work a certain amount of hours necessary and ensure that
deadlines and objectives set out for them are met. Workplace wellness support can
mean organisations having exercise facilities, offering counselling to employees upon
request and health programmes, which may provide dietary advice or weight loss
advice or helping employees who are attempting to stop smoking. Family support
refers to help with childcare and making life easier in any way the organisation can
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for employees who are parents and perhaps have family struggles. Grawitch et al
(2007) viewed the relationship with health and well-being procedures at work with
employees’ satisfaction. He found that it is essential that employees understand there
is specific programmes and procedures in place in order to meet employee needs and
employers and employees working together to develop a healthy environment within
the workplace motivates the employee and gives them a sense of comfort in their
work surroundings.
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1.4: EMPLOYEE RECOGNITION PROGRAMMES
In response to the limits of re-engineering work processes and organisational
requirements of productivity and efficiency, many researchers have viewed the impact
that employees motivation to work has on their performance. Studies have highlighted
that employee recognition evidently plays an essential role in the motivation of
employees.
Van Dyke (2012) acknowledges the relevance for a well thought out design and
implementation for a recognition programme to avoid unsuccessful consequences
designing 8 steps or processes to follow for a successful design: Assessing gaps
between employees performance and company goals. Selecting an appropriate
programme to close this gap. Ensuring that this programme being implemented
enhances the value employees have towards work goals by providing rewards,
communication and support. Training employees to ensure they do the right things to
contribute to the success. Careful attention to the process of how the rewards are
provided to employees. Distinguishing between compensation and reward and
ensuring fairness when rewards are being disbursed. Ensuring that incentive rewards
make a positive influence on emotion and the spirit of the organisation. Measuring
and analysing the motivational outcomes and then viewing the operational programme
against the performance objectives set out originally and then taking the information
from these results and recycling and adjusting it to future programmes to increase
efficiency and success.
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The varying challenges of implementing an effective recognition programme will
differ for different organisations but there are common principles. It is suggested by
Saunderson (2004) expanding recognition to ensure that awards are delivered on time,
senior management need to be involved, and awards that are chosen reflect the
lifestyle of the employee. By including senior management in the process of
rewarding employees this creates a successful culture of recognition as management
act as role models for the employees. Studies of Saile and Schechter (2012) go further
and say recognition has to contain both an intrinsic and extrinsic motivational balance
which is aligned with the organisational goals and ensure that employees can see the
connection between improved performance and reward.
Empey et al (2010) believe it is necessary for the process to be continuously updated
and renewed. The organisation should provide employees with peer recognition
opportunities and must be transparent and fair. It is clear that the methods of
recognition, methods of communication, the HR strategy and the role of management
have to all be considered in order to help the development of organisations and
improvement of their recognition procedures.
1.4.1 METHODS OF RECOGNITION
Methods of rewards and recognition are numerous for organisations to give their
employees. Rewards can be given on an annual, quarterly, monthly or even weekly
basis. Organisations may provide “on the spot” awards and informal recognition to
spontaneously recognise great work. Management should generally be quick to
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publically recognise their employees and celebrate their success. Common awards or
initiatives include:
• Annual awards: Given to employees for their performance or achievement in
specific areas or demonstration of a company value (i.e. Innovation, customer
service, Integrity, teamwork etc.) These awards are generally given at a
company event and annual awards often include an emblem and gift.
• Weekly, Monthly, quarterly rewards: These are given to employees who
display certain behaviours, results or characteristics that are selected and given
by their peers, supervisor or leaders in the organisation and generally include
rewards which can be monetary, gift cards, time off, or gifts.
• Rewards and recognition systems: Some organisations have online rewards
and recognition systems which allows employees at every level of the
organisation to recognise one another, earn points and recognition and view
who and for what reason certain employees might be being recognised
throughout the organisation.
• On the spot awards: These awards are spontaneously given to employees for
random reasons. Reasons such as, work well done, putting in extra hours on
projects, unique input to a specific project or programme enhancement, among
others. Gift Cards, Certificates, Thank you notes.
• Public recognition: The organisation publicly recognise employees via
mentions in their company and client newsletters, social media,
announcements at staff meetings, bulletin boards, presentations etc.
• Informal recognition: Management and supervisors informally recognise
employees through handwritten notes, emails or personal calls, or taking the
employee out to lunch.
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• Appreciation events: Employees may be shown appreciation for their work
and celebrate success through parties, dinners, summer outings, festivals and
other celebrations and unique activities, Additionally, sometimes top
performers may be invited to exclusive events with the CEO.
• Trips: Trips are becoming an increasingly common way for organisations to
recognise their employees. Awarding top performers with a vacation to
recognise their good work.
• Service awards: Length of service should be recognised and rewarded by
organisations. Recognising milestones in employees’ tenure through rewards,
tokens of appreciation, gifts and special events.
• Personal accomplishments and milestones: Recognising significant personal
accomplishments whether they be educational or professional developments
achievements, certifications, birth of children, weddings, retirements, and
birthdays. Cards, Gifts, parties are common for these forms of recognition.
Van Dyke (2012) believes that recognition in the form of praise and other forms of
non-cash motivators are even more effective than monetary ones like cash bonuses,
increased pay or stock options. Non-monetary recognition programmes are seen to be
popular alternatives to monetary, as they tend to be lower in cost. Luthans (2000)
highlights that it is important to use various types of recognition when looking to re-
enforce value added behaviours. When looking to personally reward individuals
formal recognition procedures should be utilised through incentives which the
employee values. Perlmutter (2012) also believes in using various types of recognition
and proposes that this will motivate employees to work harder. He also recommends
that organisations use trophy achievement awards and lasting status awards as some
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employees can gain a greater sense of achievement and view having these awards or
titles as a better motivation than cash.
1.4.2: METHODS OF COMMUNICATION
There are many negative effects that can occur in the workplace as a direct result of
communication challenges. These can include, decreased productivity,
misunderstandings and misinterpretations with regards to policies and procedures and
also employee dissatisfaction. Communication is a process where by each one of us
specifically assign and engage in the act of portraying a certain message so that two or
more individuals create an understanding that is shared among all parties. It is evident
that with communication there is a large repertoire of specific skills involved in
successful communication. In order for one to be an efficient communicator in the
workplace they must process skills that are interpersonal as well intrapersonal.
Individuals must have the ability to listen and appropriately evaluate what is being
shared. It is a two way, back and forth process that consists of questioning what is
being said for understanding and speaking as well. Employee communication is
extremely important for the success for any employee recognition programme for
organisations as there must be a clear, transparent understanding of the link between
improved performance and reward.
Communication can be effective in the workplace through the use any of these
methods.
• Meetings: Using open meetings to communicate is one of the most effective
and efficient methods for organisations. Employees will be able to gather
information by not only hearing what you have to say but they will also see
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and feel it. This would be considered one of easiest ways for an organisation
and its management staff to communicate how they feel and what they want.
• E-mails: Communication via email is quick and efficient and enables you to
pass messages to employees at any time and without pulling them away from
their work stations.
• One on One: Communicating with workers one to one is evidently a better
way to ensure clear and better understanding when trying to explain or give a
message to the workers.
• Presentations: Presenting information to co-workers by using, for example,
Microsoft PowerPoint can aid them to grasp a message much easier.
• Communicating through training: Training should be tailored to ensure that it
is communicating necessary information to workers. Most employees will take
training seriously and as an opportunity to learn more about the organisation
and process new skills.
• Listening to team members: As already mentioned, communication is a two
way, back and forth process. Leaders should not just talk simply because they
may be at a higher level in the organisation. They should listen to what others
have to say and encourage them to open up with any opinions or ideas they
may have.
• Body Language: Stand/sit up straight, Smile, Use Handshakes and ensure you
make eye contact. Using body language will help you to pass a message faster
and better.
• Act out the message: Let the employees see exactly what you want them to do
rather then just telling them to do it. Showing them this way makes it easier to
understand and reduces the margin for error. Somebody once said “Tell me
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what you want me to do and I might forget it, but do it in front of me and I
will never forget it”.
• Ensure a receptive atmosphere: Avoid a tense atmosphere at all costs as when
communicating in an overly intense manner, the message being shared may
not be well understood or retained and employees may take the message
negatively.
• Humour: Use friendly jokes when trying to discuss a matter or pass a message
as this helps create a friendly, relaxed atmosphere. This will help avoid
tension, however, don’t overdo it.
• Encourage feedback: Look for feedback from the people you are
communicating your message to. Receiving feedback will allow you to
measure the effectiveness of your communication and allow you to understand
if your message was well understood.
• Gesticulate: Using your hands to demonstrate the message. Hand motions and
signals can establish the seriousness of the subject matter.
• Be appreciative: Always make sure that you let employees know after a
communication session that you are thankful for their time and thankful for
their listening and opinions.
Saunderson (2004) believes that recognition awareness is important and discusses
various methods on how to achieve this through Internet/Intranet, Employee
orientations, Company meetings and company newsletters. In order for
communication to be effective from management, they must completely understand
the culture, policies and procedures of the company themselves. Perlmutter (2012)
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acknowledges the importance of the internet on recognition in an organisation and
sees it as an effective tool for communicating motivational and recognition activities.
Using online technology has many benefits being, economical, efficient and provides
flexibleness. He believes that online technology takes the administrative workload of
traditional methods.
1.4.3: HUMAN RESOURCE STRATEGY
When organisations have sound HR practices in place, it is more likely that within
this organisation you will discover that employees feel satisfied, safe and work to
their full potential and when employees have this settled and comfortable feeling they
are more likely to stay put.
Strategic HR planning: People are the main resources that organisations have for
delivering productivity and results. Strategic HR planning directly links HR
management to an organisations strategic plan and therefore ensuring that staff will
have meaningful roles which align to the strategic direction of the organisation The
role of HR strategy is to plan how the organisation meets its current and future needs
and how people will be supported and nurtured within the organisation and this is
critical for success. Through the process of performance management human
resources should look to work together with employees to plan, monitor and review
their work objectives or goals and overall contributions to the organisation. When HR
uses the process of performance management this is said to motivate employees to do
their best. Clear communication between employer and employee helps to build the
relationship and ensures that the employee feels like an important element in
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achieving the overall goals of the organisation. Monitoring performance and
recognising the employees work allows for constructive feedback and helps each
party to identify where the employee may be able to improve their performance and
skills. Identifying the skills and abilities of individual employees allows management
ensure that work assignments can be meaningful to the employee and build on and
reflect the employee’s strengths. It is the role of HR to engage with employees and
give them a sense of shared value and purpose by creating a strong relationship with
them. Sawalha and Zaitouni (2012) state that recognition is essential in the
organisational and social environment as it can be used as an effective HR practice
that delivers effective motivation. Danish and Usman (2010) argue that having a
strong HR strategy which balances reward and recognition leads to organisations
employees having better and higher performance levels. Long and Shield (2010)
concur that the HR strategy of a company influences the employee recognition of the
company. Recognition must be implemented into organisations overall strategy and
goals for it to achieve desired outcomes and be effective.
1.4.4: THE ROLE OF MANAGEMENT
The core element for an organisational environment of successful and sustained
recognition is the role of management and their awareness, commitment and ability
towards using recognition in the organisation on an ongoing basis. Recognition will
be as effective as those managers who use it, therefore management training is vital to
driving successful recognition efforts within an organisation and the optimal way to
begin the process of creating a strong culture of recognition within the company.
Management need to understand how to recognise their employees, when they should
recognise, and how often they should recognise. Management should look to use
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frequent, specific, and timely recognition to show the employees that their
contributions are valued and appreciated
When management should recognise: Step one is to identify the behaviours of
employees which should be recognised. Then step two is to reward this positive
behaviour immediately. Management should not prolong to the time before they
recognise the employees behaviour as this can often diminish the positive effect it will
have on the employee.
How often to recognise: Recognise should be exercised as often as management
possibly can. Giving employees recognition such as personal praise, thank you notes,
and public praise. This type of regular recognition doesn’t need to be formal or time
consuming to have a positive impact on the employees. How frequent formal
recognition is used should be determined when developing the employee engagement
strategy to define the programme which best meets its core objectives.
What to say: Management being prepared to recognise a deserving employee is the
most important part of any recognition event. When speaking with and praising the
employee it is important that the management knows what to say. The words used
will affect the engagement level of the employee. When the management have the
ability to make the employee feel fully appreciated in the moment of recognition, the
employee engagement level will increase. By training managers to effectively
communicate how they feel and what they think, this can make the experience of
employee recognition a lot easier. Managers can use statements to phrase their
thoughts in personally meaningful ways such as:
• I saw what you did…
• I appreciate it…
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• Here’s why it is important…
• Here’s how it makes me feel…
When training managers for recognition there are many ways that they can be trained.
The most common process of training is in-person, followed by online education.
These methods of training for recognition are the most common as they are
interactive. The managers have to be able to link the company’s vision and values to
recognition practices.
Saunderson (2004) acknowledges the importance of the process of training leaders
and managers to provide effective recognition feedback and mentoring. Luthans
(2000) also believes that ongoing training is important for managers to ensure
consistent delivery of appropriate recognition. Saunderson (2004) sees the need for
ongoing training for managers as results displayed that just 47% of managers are
showing consistency when recognising their employees for their good work and
mentions that the level of recognition which managers themselves receive on a regular
basis is low and this can be the reason why managers have a lack of understanding on
how to give it.
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1.5: BENEFITS OF EMPLOYEE RECOGNITION
For organisations, we all must understand that the most important factor of keeping
your company afloat is your workforce. Having an effective employee recognition
programme in place can not only keep your company from capsizing, but will most
likely increase productivity and raise revenues. Companies being able to effectively
thank, reveal and coach with recognition can make a sustained difference to an
employee’s career and the company’s future. Implementing programmes which are
aimed at building relationships and improving employee performance across
organisations can strongly influence the overall success of any recognition
programme. If the people inside your organisation (employees) feel visible, valued
and appreciated, they will extend that same attitude and commitment to the people
outside of the organisation (customers).
Appreciation is a fundamental human need. Workers will respond to appreciation
expressed through recognition of their good work positively as it confirms to them
that their work and input is valued. When employees are recognised and their work is
valued, employee satisfaction rises, their productivity rises, and they are motivated to
maintain or improve their good work. Praise and recognition are essential to an
outstanding workplace and a positive industrial relations environment. It is evident
that people want to be respected and acknowledged for their contribution at work.
Employees need to be recognised and feel a sense of achievement for work which has
been done well or even a valiant effort. Doing this will ‘simply’ make them feel good.
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Employee recognition is excellent for industrial relations of an organisation.
Employees will be content and comfortable and both the work relationships and
personal relationships of workers throughout the organisation are more likely to be
positive. Employee recognition has a huge communication component. Recognising
people for their good work sends an extremely powerful message to the recipient,
their work team and other employees through the grapevine and formal
communication channels. Employee recognition is therefore a potent communication
technique.
The cost of a recognition programme tends to be quite small and when implemented
effectively the benefits are large.
Benefits:
• Increased productivity - The act of recognising a desired behaviour from
employees increases the repetition of the desired behaviour and therefore
productivity.
• Employee satisfaction and enjoyment at work. Employees are likely to spend
more time focusing on their job and less time complaining
• Performance feedback for individuals and teams is provided.
• Higher loyalty and customer satisfaction
• Teamwork between employees is enhanced and approached positively and
with determination.
• Retention of skilled employees is enhanced – lower employee turnover.
• Lower negative effects such as absenteeism and stress.
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Danish and Usman (2010) agree with Brun and Dugas (2008) that employee
recognition is very influential and key to an organisations success and acknowledge
that successful recognition programmes will result in stronger and higher levels of
employee performance. Danish and Usman (2010) believe that recognition is
excellent for lifting the spirits of employees, boosting morale and develops the link
between their performance and motivation to achieve targets and goals. Recognition
boosts the employees feeling of being valued and appreciated for their work and will
enhance morale and productivity which is evidently beneficial to both the employee
and to the organisation. Danish and Usman (2010) along with Saunderson (2004)
agree that management and leaders can see how employee recognition massively
contributes to employee morale, commitment, loyalty, and satisfaction in the
workplace. The research of Saunderson (2004) reveals that management see how
recognition ties into the commitment, satisfaction and retention of employees and the
strong influence that employee recognition has over these areas. Saile and Schechter
(2012) acknowledge that there is evidently a relationship between rewards and
recognition and employee retention and these rewards and recognition systems can
also help the organisation to hold on to its top workers while thinning out the
population of weaker employees. Markham et al (2002) believes that employee
recognition has a strong influence over attendance and supported the idea that good,
effective recognition helps to improve employee attendance and reduce absenteeism.
Brun and Dugas (2008) suggest that companies that do not have recognition systems
or have poorly implemented recognition processes are at risk of having psychological
distress existing in the workplace.
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There are benefits to employee recognition which organisations may not foresee. The
intentions of originally putting in place a recognition programme can be to ensure
employee motivation, commitment, loyalty, satisfaction and retention, however, there
can be more to benefit the organisation from effective recognition.
Employee recognition can give a higher opinion of your organisation to those outside
of it. Employees may share how they feel about working in the organisation to family
and friends and with everyone they contact. The attitude and emotions they express
when discussing work issues with others will portray their happiness or satisfaction
with their place of work. Happy employees help to put a better face on the
organisation, which can translate into better external business relationships.
Employee recognition helps for recruitment and will give potential employees a desire
to work in the organisation and something to be excited about. When looking for
suitable candidates and the best people for a position in the organisation the company
needs to be attractive to these potential employees. An established employee
recognition programme will be viewed positively by people outside the organisation
and will attract them to look for a position in the company if they see that employees
are valued and appreciated. When competing with other companies to attract talent
this can be the edge that your organisation has over your competitor. The reputation
of the organisation is hugely important and building a positive business brand and
culture through placing value and importance in employee recognition can be vital to
the success of the organisation.
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1.6: ISSUES OF EMPLOYEE RECOGNITION PROGRAMMES
Employee recognition can, a lot of the time, be a major problem for organisations.
Many organisations struggle to implement a recognition programme knowing exactly
how to get the full effectiveness and benefit from using recognition methods with
their employees. Employees want to have a personal connection with their managers
and so, the most authentic thing management can do is approach the employees one-
on-one and give them personalised praise for their particular contribution. A lot of
companies can go for very formal procedures of recognition such as an ‘employee of
the month’, but it will not have the same effect as a personal connection. A lot
managers can claim that they find it difficult to find the time and it can be argued that
thanking each employee individually will be a very time consuming process. This
could explain why a lot of organisations choose formal reward and recognition
programmes, because they are somewhat more automated, taking responsibility away
from the manager. One problem with employees when they go a long time without
receiving praise is their motivation levels drop, their work ethic drops and the
employee starts to avoid the tasks that they are not being thanked for.
Another issue which exists with recognition is that it there is a tricky balance which
affects how the employees take the positivity out of recognition and the extent to
which they are appreciative of praise being given. This tricky balance exists in
organisations where giving praise and recognition can be too much or too little. It is
difficult for management to find this balance between not too much and not too little
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so as to achieve the full effectiveness of giving praise to your employees. Too much
praise will eventually cause it to become meaningless to the employee over time.
However, it is acknowledged that praise should be given very frequently to keep
employees feeling appreciated. There is no magic formula which exists for when
praise is warranted or not warranted but it is something which needs to be kept in
mind for management. Keep praise specific and to a specific achievement and there
should be no reason why it should be perceived as meaningless.
Certain types of formal recognition can also have negative effects in an organisation
with regards to industrial relations. When using processes such as ‘employee of the
month’ awards, fellow co-workers of the employee who receives this title can develop
feelings of discontent if they feel their input and contribution was just as much or as
good as the person being publicly recognised. Jealousy, competitiveness and
dissatisfaction can arise through recognising one employee more then the other. This
can create a negative relationship between employees and their co-workers and
managers.
Javed et al (2012) suggests that it is evident rewards and recognition play an
influential role in job satisfaction for the employee, however believes that If there is
nothing equitable attached to the rewards or recognition they can be viewed in a
different light by the employees. This can prompt management to be very careful not
to discriminate when rewarding or recognising an employee. Saunderson (2004)
acknowledges that managers are not under any sort of obligation to give employee
recognition therefore, may not go out of their way to do so, particularly if the
managers or leaders have not been trained and educated on how to effectively give
recognition. This can be another reason why they will look to avoid the process of
doing it. Saunderson (2004) also acknowledges the communication issue and through
37

his research found that just 44% of managers in the research study believed that
recognition programmes were well communicated and well understood by employees.
Danish (2010) states that for any reward system for organisations, recognition is the
most important element and if the organisation identifies this they will succeed in
keeping employees motivated and happy with how they are acknowledged in their
workplace. Latham (2000) identifies that recognition is effective and motivational for
employees while costing less to implement then any rewards based system and can be
a useful tool to drive the overall performance of an organisation.
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CHAPTER 2: RESEARCH METHODOLOGY
2.1: INTRODUCTION AND RATIONALE FOR THE RESEARCH
There is mixed evidence from the literature review that the implementation of an
effective recognition program can be very influential in driving a company’s overall
performance. Furthermore, there are issues for organisations on how to implement an
effective recognition programme and what way to approach it and what way are the
particular recognition methods that are used going to motivate the employees to drive
the overall performance of the company. How will the recognition processes chosen
satisfy the needs of employees and why? Within the literature review there are many
explanations as to why employee recognition can be so effective for organisations and
how recognising and praising the employee on a regular basis can achieve motivation,
satisfaction, commitment, loyalty, and retention of good employees. Recognition can
have different effects in particular areas of work, different organisational positions of
the employees and different sectors of work. Further research is needed into the area
of employee recognition especially since organisations these days are experiencing
adverse economic conditions and so continue to search for ways to drive the overall
performance of the organisation.
39

2.2: RESEARCH PROCESS
Malhotra (2010) proposes a six-stage process to guide researchers through designing
and carrying-out a research process. This paper included Saunders, Lewis, and
Thornhill (2009) stage five sampling stage as the author believed it to be an integral
stage in conducting marketing research. The author of this paper followed the
following process in order to provide a comprehensive structure:
1. Problem definition
2. Research approach
3. Research design
4. Data collection
5. Sampling
6. Data preparation and analysis
7. Presentation of results
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2.3: PROBLEM DEFINITION
Domegan and Fleming (2007) suggest that, the first step in the research process is to
define the problem. The researcher identifies what the purpose of the research topic is
and the rationale for studying it. According to Malhotra (2010) the most important
step in the research process is to define the problem. Indeed, Malhotra (2010) explains
that, the researcher must acknowledge the following:
• The purpose of the study
• Significant background information
• How it will be used in making decisions
2.3.1: RESEARCH QUESTION
Aaker, Kumar and Day (2007) express that the research question investigates the
precise material required to answer the research purpose. The main research objective
of this paper is to gain a deeper understanding of how employee recognition
programmes are managed and the best practices of successful implementation in the
Irish grocery retail sector. The core research question explored in this paper is:
“How employee recognition programmes and practices are managed and
implemented from the employers perspective among the Irish grocery retail sector?”
2.3.2: RESEARCH OBJECTIVES
Zikmund and Babin (2007) define the research objectives as the goals to be achieved
by carrying out research. The following is a list of research objectives conducted in
this paper:
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1. To identify the benefits and issues of employee recognition programmes in the
Irish grocery retail market
2. To explore best methods of recognition programmes in motivating employees
to perform at best levels and go above and beyond their call of duty.
3. To examine the role of communication in the successful implementation of
employee recognition programmes in the grocery retail market in Ireland.
4. To understand the relevance of training management in best employee
recognition processes and practices.
5. To investigate alternative methods and practices of motivating staff to achieve
high standards with specific reference to the Irish grocery retail channel.
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2.4: RESEARCH APPROACH DEVELOPED
2.4.1: RESEARCH PARADIGMS
Zikmund and Babin (2007) note that, all academic research is rooted in a
philosophical perspective. Indeed, Easterby-Smith, Thorpe and Lowe (1991) express
the relevance of having a philosophical perspective in all research projects. The
authors claim a philosophical perspective can help to identify:
• The research design
• What kind of evidence is collected and where from
• How this evidence can be interpreted in order to find answers to the question
asked
• Which designs are most likely to succeed and which are likely to fail
In addition, Saunders, Lewis and Thornhill (2009) suggest that, philosophical
perspectives can help the researcher to emphasise the limitations of certain
approaches and aid the research to discover research paradigms they previously have
not explored.
A paradigm can be described as a widespread belief system, world view, or
framework guiding researchers and practices (Willis, 2007). Hussey and Hussey,
(2007) explain that, a paradigm presents the researcher with a framework that
involves an accepted set of theories and methods of defining data. Proctor (2003)
notes that, the researchers methodological epistemological and ontological premises
can be deemed a paradigm that represents a set of beliefs to guide the research action.
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Hussey and Hussey (2007) agree with Proctor (2003) that the two core research
paradigms are as follows:
1. The positivist paradigm dominated by quantitative research
2. The interpretivist paradigm dominated by qualitative research
2.4.2: INTERPRETIVIST PARADIGM
In order to break free from the constraints imposed by positivism the interpretivist
approach emerged in the social sciences (Saunders, Lewis and Thornhill, 2009).
Anderson (2009) defines interpretivism as an epistemology that stresses the
importance for the researcher to understand differences between humans in a role as
social actors. This philosophy is characterised by a belief in a socially constructed,
subjectively based reality, influenced by culture and history (Jabar, 2009). Thus, the
participant’s views and beliefs of the field under study are relied on.
2.4.3: RESEARCH APPROACH CHOSEN
This paper considered the interpretivist research approach most relevant to the
research question, which seeks to gain a deeper understanding of employee
recognition programmes in the Irish retail market. Indeed, this research topic will be
based on the interpretations and views of Human Resource managers in relation to
how employee recognition programmes are managed. Malhotra (2010) explains that,
qualitative research is typically described as ‘an umbrella term covering an array of
interpretive techniques that seeks to describe, decode, translate, and otherwise come
to terms with meaning, not frequency, of naturally occurring phenomena. Thus, this
further validates the suitability of this approach
44

2.5: RESEARCH APPROACH DEVELOPED
Malhotra (2010) concurs with Domegan and Fleming (2007) that the research design
provides a comprehensive framework to carry out the research process. Domegan and
Fleming (2007) explain that, the research design guides the researcher through the
outstanding stages of the research process:
• Data collection
• Measurement analysis
• Reporting
Indeed, Malhotra (2010) notes that, the research design directs the researcher through
the required stages in order to gain the information necessary to answer the research
topic. Malhotra (2010) describes three basic research designs:
• Exploratory
• Descriptive
• Causal
2.5.1: RATIONAL FOR THE SELECTED RESEARCH DESIGN
The research carried out in this dissertation is believed to be exploratory in nature for
a number of reasons. As it is important to understand best employee recognition
methods & practices in the retail sector in Ireland, an exploratory study was
considered most suitable. In order to reach a deeper understanding of these practices it
was deemed necessary to consider the opinions of key HR personnel in the said field.
45

Sekeran and Bougie (2013) explain that, it is necessary to conduct exploratory
research when certain facts are acknowledged but further information is required for
developing a feasible theoretical framework. Indeed, there is basic information known
about best employee recognition practices and methods, however, additional
information is required on employee recognition programmes in the Irish Retail
Industry.
The aim of the research topic is to gather broad and less specific qualitative research
rather than the collection and analysis of numbers. Lastly, this research study requires
examining experiences in order to answer the research topic. Research conducted to
date, has been exploratory in nature and proved difficult to investigate through
quantitative research. Indeed, Malhotra (2010) suggests that, in order to efficiently
analyse experiences, research should be conducted on a one on one basis.
2.5.2: QUALITATIVE RESEARCH VS QUANTITATIVE RESEARCH
Saunders, Lewis and Thornhill (2009) discuss the differences between qualitative and
quantitative. Qualitative data is based on meanings through words whereas
quantitative data is based on meanings derived from numbers. In addition, qualitative
data collects results in non-standardised data requiring classification into categories
rather then the quantitative technique of collecting results in numerical and
standardised data. Finally, Saunders, Lewis and Thornhill (2009) state that, in
qualitative data, analysis is conducted through the use of conceptualisation. On the
other hand, quantitative data analysis is conducted through use of diagrams and
statistics.
2.5.3: RATIONALE FOR CHOSEN RESEARCH DESIGN
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This paper decided to adopt the qualitative research technique only. Qualitative
research looks at intangible components of human behaviour. On the other hand,
quantitative research focuses on scientific proof and statistical data. Research carried
out in this paper, is deemed to be exploratory in nature focusing on behaviours of
Human Resource managers and senior personnel in the Irish retail industry. Indeed,
Qualitative research techniques are considered significantly more personal and human
oriented compared to quantitative techniques.
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2.6: DATA COLLECTION
2.6.1: DATA COLLECTION TECHNIQUES
The following techniques are what qualitative data analysis consists of:
• Focus groups,
• Observations,
• Projective techniques
• In-depth interviews
2.6.2: RATIONALE FOR SELECTING QUALITATIVE INTERVIEWS
The decision to use interviews for this research project derives from the literature
review. By interviewing Human Resource managers within the field of Retail, the
opportunity was afforded to examine how they view employee recognition and its
importance in the retail industry and did large retail brands place emphasis on
recognising their employees. The decision to interview managers in retail presented
the opportunity to deeper understand the advantages and best practices of recognition
programmes. In addition, it presented the researcher with the opportunity to draw
distinctions and comparisons of the Irish retail industry with other industries.
2.6.3: INTERVIEW METHODS
Interviews can be considerably formalised with strict structures utilising standardised
questions for each respondent. In contrast, they can be highly informal and
48

unstructured (Yin, 2009). Saunders, Lewis and Thornhill (2009) separate interviews
into three main categories:
• Structured Interviews
• Semi-structured interviews
• In-depth Interviews
2.6.2: RATIONALE FOR SELECTING IN-DEPTH INTERVIEWS
This paper conducted. Exploratory, in-depth interviews with two separate retail
Human Resource managers in the Irish retail industry, in order to collect reliable and
sufficient data related to the research topic.
Chisnall (2005) suggests that in-depth interviewing helps to understand the nature of
the area being studied. Malhotra (2010) believes that, the purpose of qualitative style
interviewing is to abstract meanings as opposed to facts from the analysis of
participant feedback. It is noted by Saunders, Lewis and Thornhill (2009) that the use
of in-depth interviews is most appropriate when the questions being asked are either
complex ones or open-ended questions.
Malhotra (2010) believes that the use of in-depth interviews caters for the
investigation of the motivations and beliefs about a particular topic. It should be
encouraged that the respondent speak in a free and openly manner about the subject in
question. Patton (2002) proposes three different styles of in-depth interviewing:
• Informal conversation interviewing
• Interview guide approach
• Standardised open ended interviewing
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In this research project the general interview guide approach was selected to be most
suitable. This approach helps for an in-depth exploration while also aiding the
researcher to keep within the boundary determined by the aim of the research. This
approach was deemed most suitable as the standardised open ended interviewing
approach was not flexible to accommodate for an in-depth probing and the other
informal conversational approach seemed to lack structure to be suitable to this
research objective. This paper selected semi-structured interviews as Malhotra (2010)
notes that, this data collection technique is applicable for industry expert research,
which this research project requires.
2.6.3: PLANNING AND CONDUCTING INTERVIEWS
It is considered by Knox and Burkard (2009) to be vital that, the researcher
conducting the interview develop their own questions that he or she wish to ask in
order to get the relevant feedback to their research objective. In this paper, suitable
questions have been developed in order to investigate the research question and
objectives and receive the feedback necessary to gain a better insight to the reality of
the research study. (See appendix x for questions developed and theme guide sheet
followed.)
2.6.4: PREPARING FOR IN-DEPTH INTERVIEWS
Saunders, Lewis and Thornhill (2009) along with Malhotra (2010) advocate the
significance of conducting a pilot interview to successfully carry out interviews. This
paper conducted numerous pilot interviews to test if the questions developed
presented any issues or difficulties. It also allowed the researcher to eliminate any
50

issues developed in the interviewing technique e.g. giving examples or scenarios
when questioning in order to give the respondent a clearer understanding of the
questions being asked.
2.7: THE SAMPLING PROCESS
A sample is described by Zikmund and Babin (2010) as a subset from a larger
population. A sample of participants in research is used to gain a deeper insight of a
larger population from a smaller scale (Berg, 2009).
2.7.1: THE SAMPLING UNIT
The first step of the sampling design starts with defining the target population being
studied (Malhotra, 2010). The sample of this paper consisted of two Human Resource
managers, deemed to have relevant experience to provide the researcher with
comprehensive insights into the area of employee recognition. For the purpose of this
paper, the sample was restricted to two Human Resource managers in the Irish Retail
Industry.
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2.8: DATA PREPERATION AND ANALYSIS
Data analysis is defined as the application of reasoning to comprehend the data which
has been collected (Zikmund and Babin 2010). Malhotra (2010) proposes that data
preparation consists of the following procedure:
• Edition
• Coding
• Transcription
• Verification of Data
Qualitative data analysis is a diverse process. Thus, there is no standardised approach
to this technique (Malhotra 2010). Considering the flexible nature of qualitative data
analysis described above, there are various styles through which data can be analysed.
Nonetheless, Collis and Hussey (2009) describe two important steps to take in order
to effectively analyse qualitative data:
• Step one – ‘Reducing’ the data collected. This involves selecting what is the
most appropriate method of coding.
• Step two – ‘Restructuring’. We then restructure the coded data by developing
categories.
This paper mimics these two steps suggested by Collis and Hussey (2009).
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2.8.3 RESEARCH ETHICS
The literature presents various definitions of ethics. Nonetheless, all academics and
scholars come to the same point that ethics is the study of ‘doing right’. Ethics forms
an integral part of the research process. Indeed, ethics should be conducted in a
responsible and moral way (Blumberg, Cooper and Schindler 2005). Bryman and Bell
(2007) agree that, the protection of participants in research is essential. To ensure this,
the author insured all participants stayed anonymous. In addition, this paper was
presented to the participants prior to submission to ensure information gathered was
valid and accurate.
2.8.4 LIMITATIONS OF THE RESEARCH
Every attempt was made to ensure the validity of the research. Indeed, this paper
attempted to carefully plan the data collection method along with the selection process
of interviewees. Nonetheless, it is well documented in the literature that qualitative
research is presented with numerous limitations. While the author of this paper
conducted pilot interviews, the researcher lacked significant experience and
knowledge of conducting interviews. In addition, the short research period allowed
for only restricted time allocation to collect, organise and compare and contrast the
research conducted.
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CHAPTER 3: FINDINGS
3.1 INTRODUCTION
The aim of the research conducted in this project was to explore and gain a better
understanding of the link between employee recognition and organisational
performance within the retail sector. Coding was used in this project in order to
ensure that the data which was gathered was relevant and through the use of
categories this project explains the findings of research carried out and compares and
contrasts these findings with the literature review. These categories or topics include:
• Recognition programmes: Benefits
• Recognition programmes: Issues
• Reward versus recognition as methods of motivation
• The role of communication
• The importance of management training
• Measuring employee recognition to organisational success
• Alternatives to Employee recognition
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3.2: RECOGNITION PROGRAMMES: BENEFITS
The first Human Resource manager surveyed believed that the importance of
implementing recognition programmes was to help organisations achieve greater
employee engagement and employee retention. Relevant to the research of the
literature review, Saunderson (2004) similarly emphasises the importance of ensuring
employees are happy in their work environment and organisation and regularly
recognising the employees helps with keeping a positive environment and ensuring
employees are happy to stay put in their workplace.
The second Human Resource manager surveyed believed that recognition
programmes presented an opportunity for managers to demonstrate appreciation for
the work of employees and helped with employee motivation, morale and the
individual needs of the employee. These findings were comparable to the views of
Danish and Usman (2010). Within their research they explain that recognition aids the
employee to feel motivated, comfortable and appreciated for their work.
Comparing the primary research of this project to that of the secondary research, it is
discovered that the majority agree that the major benefits of employee recognition are
that it has a positive influence over the motivation and performance of employees to
strive for their organisation and its success. However, it is not that simple to link
recognition to the overall performance of the organisation and therefore, in order to
55

identify if recognition programmes are extremely effective in driving the overall
performance of the organisation we must look into all other issues which impact
recognition programmes.
3.3: RECOGNITION PROGRAMMES: ISSUES
Both Human Resource managers interviewed believed that, when implementing
employee recognition programmes it is important for procedures to be done correctly
and consistently. They believe it is important that, employees understand when and
why they are being recognised and that management is not just thanking or praising
their staff for no particular reason. The first HR manager, when questioned about
effectively giving recognition to employees stated that it was important that they were
able to ensure employees knew why they were being recognised and for this reason
the form of praise given to the employee was appreciated and gives them a sense of
accomplishment. Similar to Javed et al (2012), this first Human Resource manager in
question believed that inconsistent practices can leave the programme open to abuse,
which can undermine the programme in place and cause the employees to feel
undervalued.
The second HR manager questioned discussed the issues of unequal distribution of
recognition. It is important that all employees are recognised equally and consistently
praised for their effort at work, particularly in relation to group projects. Tension and
dissatisfaction may arise amongst some staff if they believe one employee has
received more credit for their input then another. These findings are consistent with
the view of Saunderson (2004) as this author highlights the importance of recognising
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each employee individually for their work and being individual and consistent with
their recognition. Furthermore, the second Human Resource manager surveyed
mentioned the importance of ensuring the method of recognition fulfils the needs and
motivations of the employee and reflects the level of hard work and input to their
tasks.
3.4: METHODS OF RECOGNITION: REWARDS VS RECOGNITION
In contrast to the literature review, the first manager questioned, believed that both
reward and recognition were equally important for motivating the employees but
states that recognition can further motivate employees to go beyond expectations and
deliver exceptional performance. Indeed, Hanson (2002) is of the view that, in order
for organisations to implement a successful recognition programme, they need to
differentiate between reward and recognition. The second Human Resource manager
agreed with the view that both reward and recognition are equally important in
successfully conducting employee recognition. They further added that, the
organisation needs to consider the employees position in the company and the
individuals personality but also stated that recognition helped to achieve a higher level
of performance. The primary research findings suggest that both reward and
recognition play a major role in the success of employee motivation, however both
interviewees consider recognition to be a key component in driving exceptional
performance.
57

3.5: THE ROLE OF COMMUNICATION
Saunderson (2004) acknowledges the importance of communication in the success of
employee recognition programmes. Indeed, both Human Resource managers
interviewed agree with the literature review that communication plays a pivotal role in
successfully implementing employee recognition. The second Human Resource
manager stresses the importance of top level management communicating and
acknowledging the hard work of employees at all levels. They further add that
communicating recognition should not just be a ‘HR thing’, but rather should be a
process undertaken by the whole organisation and from top level management down
right throughout the organisation.
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3.6: THE IMPORTANCE OF MANAGEMENT TRAINING
Saunderson (2004) emphasises the importance of training managers at all levels of the
organisation to be familiar with best employee recognition practices. Both Human
Resource managers agreed with Saunderson (2004) that training is essential for
management in order to effectively implement and operate employee recognition. The
first manager interviewed states that the training process can be “formal or informal”.
However, they suggested that formal methods of training processes can be more
effective.
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3.7: MEASURING EMPLOYEE RECOGNITION TO ORGANISATIONAL
SUCCESS
Saunderson (2004) and Van Dyke (2012) suggest that, it is difficult to directly link
employee recognition programmes to the success of an organisation’s performance.
Both Human Resource managers interviewed agree with the views of the authors
above. However, the first manager suggests that employee recognition programmes
create significant value to organisations and play a pivotal role in the company’s
overall performance. In contrast, the second Human Resource manager claims it is
very difficult to draw distinct comparisons between employee recognition
programmes and overall company performance.
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3.8: ALTERNATIVES TO EMPLOYEE RECOGNITION
The first Human Resource manager, when questioned about alternatives to employee
recognition, suggested having clear development paths which are transparent to the
employee. This can motivate the employee to deliver high performance with the
hopes of moving forwards in the organisation. They also suggested that strong
leadership from management/piers can inspire employees to want to achieve in the
organisation. The second Human Resource manager questioned believed that good,
clear communication and also job enrichment where particular areas which can
improve the overall performance of the organisation.
61

CHAPTER 4: GROCERY RETAILING IN IRELAND
4.1 DEFINITION
Despite increases in consumer confidence and the rise in the value of grocery sales, it
is evident that discounters such as Aldi and Lidl are increasingly achieving significant
gains in market share. This suggests that, consumers are continually striving to reduce
grocery spend and optimise value. The grocery retailer sector is broken down into for
main categories:
1. Hypermarkets
2. Supermarkets
3. Convenience Stores
4. Discounters.
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4.2 HEADLINES:
• In 2014, the Irish grocery retail market value grew 1.9% reaching €13.8 billion. This
growth has been attributed to increased consumer confidence (Mintel, 2015).
• Holding a value of €6.3 million, private label products represented 46% of the
grocery retail sales in 2014. This demonstrated an 11% growth in total marketing
value from 2009 (Mintel, 20145.
• In 2014, the total number of grocery outlets decreased by 1% (Mintel,2015).
• Given higher costs of living and financial pressures, consumers are looking to
alternatives to reduce costs, resulting in many consumers opting to in discounter’s
along with purchasing private label products. Thus, private label products have
experienced significant growth as a result of the shift in consumer spending
(EuroMonitor, 2015).
• Musgrave Ltd is the market leader with Tesco raking number second. Tesco’s market
share has been significantly damaged and attacked by discounters and rival traditional
supermarkets (EuroMonitor, 2015).
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4.3 COMPETITIVE LANDSCAPE:
While individual brands made significant growth in 2014, Musgrave Ltd held the pole
position in the grocery retail market (EuroMonitor, 2015). 2014 saw the rebranded of
the Superquinn outlets as SuperValu. As a result, SuperValu moved ahead of Tesco
and stole the lead supermarket chain position (EuroMonitor, 2015). Centra (Musgrave
Ltd’s 3rd
most successful brand) achieved consistent growth and accounted of 12%
market share of the grocery retail industry (EuroMonitor, 2014). Tesco experienced
significant difficulties in 2014 with the company announcing four profit warnings
(Mintel, 2015). Tesco announced in December 2014 that their profits would not
exceed €1.4 billion for its financial year. Tesco’s market share fell 3% in 2014 to 25%
(Mintel, 2015).
In general, the grocery retail market experienced little shift with minor increases and
decrease in market share from 2013. Discounters such as Lidl and Aldi continued to
steal market share, however, their overall rankings stayed unchanged (EuroMonitor,
2015). BWG Foods Ltd, with its two strongest performing brands Spar and Mace,
ranked 3rd
in the grocery retail market. Their overall value share of grocery retailers
increased by 1% to 10% (EuroMonitor, 2015). Domestic players Musgrave Ltd, BWG
Foods Ltd & Gala retail services represented 42% of total value sales in grocery retail.
Tesco Ireland Ltd accounted for an 18% value share. Aldi Ireland and Lidl Ireland
64

accounted for a 6% value share each and ranked 4th
and 5th
respectively (EuroMonitor,
2015).
Discounters and in particular supermarkets tend to locate in busy urban areas within
densely populated locations. In less densely populated regions convenience stores
offer the majority of services. Over 2014, many of the companies in the Irish grocery
retail sector attempted to achieve national coverage. Given current consumer patterns,
this may prove costly to the players in the short term. Nonetheless, it has the potential
to prove highly beneficial in the long run, in relation to establishing and preserving
strong company profiles throughout the country (EuroMonitor, 2015).
4.4 COMPANY PROFILES
The companies detailed below represent the two companies understudy in the Irish Grocery
Retail Sector.
TESCO IRELAND LTD.
Tesco Ireland Ltd is part of one of the world’s largest retailers, Tesco Plc. The
company controls 171 outlets employing 14,000 staff across Ireland (Passport, 2014).
The retail giants have a national presence, providing them to reach urban dwellers and
those living on the edge of cities along with those in remote regions. Tesco Ireland
Ltd operates through its brand in supermarkets, Tesco Extra in hypermarkets, Tesco
Express in conveniences and Tesco Petrol in forecourt retailers. The Global
supermarket chain is the nation’s biggest online grocery service, reaching 80% of the
population (Passport, 2014). The company operates a significant range of grocery
retailing including private label as well as own-branded products. These include
65

Tesco Finest and Tesco Everyday Value which, brands introduced back in 1933
(Passport, 2014).
SUPERVALU
SuperValu, part of the Musgrave group, was established in 1979. It is one of Ireland’s
largest grocery retailers. It operates 200 SuperValu outlets in Ireland. 2014 saw the
rebranding of Superquinn under the Supervalu brand, resulting in an additional 16
stores. The company’s brand is based upon ‘Real Food, Real People’ strapline. It
prides itself around its ability to offer quality offerings at competitive prices, meeting
the requirements of local Irish consumers. Furthermore, the SuperValu brand centres
itself upon its ‘Irishness’, with the company purchasing 75% of products produced or
sourced with the Republic of Ireland.
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CHAPTER 5: SUMMARY AND CONCLUSION
5.1: SUMMARY OF THE RESEARCH FINDINGS
There is clear evidence that employee recognition programmes are very influential
and effective in driving the overall performance of organisations. However through
the primary research, it is discovered that it will always be difficult to measure just
how much employee recognition can influence the organisational success. The
success of any organisation comes down to a combination of numerous different
elements. Through the primary research and secondary research carried out in this
project it is very evident to see that recognition can be a strong driver of performance
of the organisations employees and this is one of the most important and key elements
for any organisation striving to succeed and therefore, the findings of the research
carried out portray how employee recognition programmes do in fact, strongly impact
company performance and so, play an important part in HR planning and strategy.
In order for recognition programmes to be implemented successfully, an organisation
needs to understand and input the correct elements to achieve employee motivation.
Methods of motivation need to be correct and the individual identity and needs of
each employee to be met. Employee development and opportunities should be
67

available for employees to have a transparent view of how they can better themselves
and progress in the organisation. It is important to ensure work is meaningful to the
employees and gives them a sense of enjoyment and accomplishment through their
tasks at work. Brun and Dugas (2008) concur that these elements of, motivation,
meaningful work, individual needs of the employee and employee development and
opportunities, are key to a successful recognition programme implemented in any
organisation. Having a strong understanding of the main components necessary will
aid the organisation to achieve a balance of recognition methods suited to the needs
and personalities of workers and help with how to communicate recognition within
the company. Recognition programmes can be implemented as part of Human
Resource strategy and entail ongoing training for management in order for it to be
delivered effectively and efficiently so as not to undermine the program. The
organisation focusing on ensuring managers are trained in recognition procedures will
help overcome any issues that can arise with recognition programmes and likely help
to reap more benefits by driving organisational performance.
This research identifies the importance of human resource practices in an organisation
and how they align with employee recognition. For employee recognition
programmes to be implemented and operated successfully will be dependant on
management being trained to effectively provide recognition with clear
communication techniques and different recognition rewards being monetary and
non-monetary. Finding the balance between these monetary and non-monetary
rewards will be key to motivating employees and will help organisations to maintain a
positive morale amongst the staff. These practices all need to form part of the
development process of the programme from the beginning and throughout in order to
68

make sure it effectively meets the needs of the individuals. The findings of the
primary research done in this paper conclude that employee recognition is most
definitely vital for organisations to achieve high performance and get the effort they
want from their employees and add value to the company.
5.2: LIMITATIONS AND RECOMMENDATIONS FOR FURTHER
RESEARCH
The research conducted in this paper was not carried out in a flawless manner. A
major limitation of the research was the fact that the primary research carried out was
a single-informant design that focused on the employer’s perspective. Thus, this paper
suggests that, in order to gain a deeper understanding of employee recognition
programmes in the Irish grocery retail market, further research is required into
investigating employee recognition from the employee’s perspective. In addition,
another limitation of the research was that the sample consisted of interviewees from
just one country. Furthermore, the research sample examined only one specific
industry. Further research is required into examining employee recognition
programmes and practices across multiple industries and regions.
69

APPENDIX
Interview Questions:
Are recognition programmes important in driving the overall performance of
grocery retail organisations?
1) What do you believe are the main benefits of implementing employee
reward recognition programmes?
2) Do you think there are any issues and/or disadvantages of using
employee reward recognition programmes?
3) Which type of rewards do you believe to be most effective and
motivating for an employee?
4) What do you believe to be the best way of communicating recognition
to the employees of this organisation?
5) As a Human Resource Manager, does employee recognition form part
of the Human Resource strategy in this organisation.
6) Does the organisational culture influence employee recognition in this
organisation?
7) How do you ensure consistency of recognition in this organisation?
70

8) How do you measure the effectiveness of the employee recognition?
9) Do you believe there are alternatives to employee recognition that can
work better to motivate the employees? Can you explain?
10) How can employee recognition programmes be improved in your
opinion?
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