The Implications of the Reward System on the Performance in Relation to Self-Efficacy

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Research Methodology Course
MBA program

“The Implications of the Reward System on the Performance in Relation to Self-Efficacy”

Presented by:
Mahmoud Hamouda

Presented to:
Dr. Ahmed Amin

Date: Jan 14th, 2012

“The Implications of the Reward System on the Performance In Relation To Self-Efficacy”

Mahmoud Hamouda
Germany University in Cairo
Prof. Ahmed Amin
Germany University in Cairo

January 2012


Reward System is an important tool used by the organization (Trevor, 2011) to increase the employee’s performance (Cummings & Worley, 2008), however it always depend on the manager’s subjective evaluation (Bol, 2011) which always lead to employee’s dissatisfaction (Cummings & Worley, 2008) declining in the employee performance and abusive treatment from the managers (Tepper, Moss, Duffy, 2011). part of these employees perceived themselves as able to offer a high level of performance (Bandura, 1994) believing in their capabilities, this study is going to call them herein after their self-efficacy is high as they always show great results in their assignments regardless whether they are well compensated or not. This study will show that reward system always has a positive relation with the performance, also is going to examine the relation between the reward system and the employee performance (Mumford, 2011) and see its effect on the employees who are high self-efficacy Since there is a great relation between the organization and the high caliber employees this study will emphasize the role of the high self-efficacy persons and what is the impact of abusing or mistreating them and examining whether they will still high performer or their performance will decline and consequently the organization will be in a risk Also the study is going to focus on the literature on (1) the relation between the reward system and the employee performance (Cummings & Worley, 2008; Mumford, 2011 & Wilson 2003 ) and (2) the effect of the reward system on the performance of the employees (Stumpf, Doh, Tymon & Jr, 2010) who perceived themselves high self-efficacy (Bandura, 1994)

Literature Review
The Reward System
Reward system can be defined as any compensation program used to achieve a target goal (Rubino, 1997) there are many ways for the organization to reward their employees (Hsieh, Chen, 2011) for example any kind of reimbursements, work experience, compensation and non-cash forms observed by employee as a value because of their work relationship (Hsieh, Chen, 2011) a convenient reward system is very important to make sure that investing in employees is administrated efficiently ((Hsieh, Chen, 2011) Many researches assert that the reward system is very important in any organization to keep the motivation of their employees such as (Trevor, 2011; Wilson, 2003 ; Cummings & Worley, 2008) executives in India have a strong faith that reward system and other HR practices in employee development are vital to maintain the workforce needed to achieve the company objectives (Stumpf, Doh, Tymon & Jr, 2010) performance must be aligned with the strategy, structure, employee involvement and work (Cummings & Worley, 2008) reward system is a tool used by the organization to improve the performance of its employees (Cummings & Worley, 2008) also (Mumford, 2011) shows that organization culture, leadership, teams and individual personality are mediating the relation between performance and reward system,

Employee Performance
Rao (2004) define the performance as the deliverables required from an individual or a team within period of time, a question always asked by both employees and employers is why you can find people in the same organization are performing higher than other people? This question put the employer under pressure to hire a competently, multitasking, high performer employees who can do their tasks...
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