A Study of Perceived Effectiveness of Reward and Recognition at Amazon

 
Abstract
An effective reward and recognition program leads to improved employee morale and productivity. Rewards and recognition are important tools in motivating employees to be productive. From the above recognition of the importance of the two constructs, the study relies on a mixed method approach sought to determine the perceived effectiveness of reward and recognition at Amazon. The study determined that employees at Amazon perceive the reward and recognition programs as ineffective due to irrelevancy, poor timing, employee disappointment, unbalanced application, and favouritism. Despite the above findings, the study also found that when all other factors that may influence employee performance are held constant, the employees at Amazon consider reward and recognition as effective tools for improving performance. The paper is subdivided into the following sections; the introduction, which lays the ground for the subsequent sections; the literature review section containing information on different authors on the subject of discussion; the research methodology section discusses the way the research was carried out, the analysis and discussion of findings section which makes sense of the findings and the conclusion and recommendation section that summarizes main points of discussion in the paper and provide ways forward.

Introduction
According to Dulebohn and Werling (2007), rewarding an employee is a significant component of the effective management of human resources. According to fundamental motivational theories such as Vroom’s (1964) expectancy theory, Adams’ (1965) theory of justice, and Maslow’s (1943) hierarchy of needs, rewards are important factors in determining whether an individual will be motivated. It is worth mentioning that rewards may be financial or non-financial rewards. The financial rewards are extrinsic rewards and may include salaries and bonuses. The intrinsic non-financial rewards may include appreciation and recognition (Pearce and Bangura, 2019). It has been shown that it may encourage desirable actions and attitudes (such as performance and dedication) and discourage negative behaviours and attitudes (e.g., variation, absenteeism; Williams et al., 2006). However, there are two main gaps in the literature on reward outcomes. Firstly, the emphasis has historically been on monetary benefits. In recent years, academics and professionals have emphasised the significance of concentrating on non-monetary rewards (e.g., (Koo et al., 2020; Kumari et al., 2021). Second, Leki? et al. (2019) explain that academics have generally concentrated on identifying the link between compensation, reward satisfaction, and performance for the “average” worker, neglecting the notion that individual perception may play a part in the debate.

From a more pragmatic standpoint, businesses need to improve their knowledge of individual differences in how various rewards affect employee retention and performance. This is especially the case when taking into consideration the growing economic pressure to be efficient and the competition for talented employees (Kumari et al., 2021). Jeff Bezos founded Amazon in July 1994 (Stone, 2022). Originally, the site was supposed to be named Cadabra, a play on the phrase abracadabra, but the resemblance to the word cadaver led to a name change. Amazon was chosen because it provided the firm with a feeling of grandeur, and a name beginning with “A” was advantageous for appearing towards the top of alphabetised lists of websites. Initially, the site concentrated on selling books and used the slogan “World’s largest bookshop” (Schmidt, 2020). In this research, we will explore how Amazon’s incentive management is viewed by its employees in terms of their intrinsic motivation and how this perception correlates with organisational production. The paper argues that the perception of employee reward and recognition at Amazon is that they improve employee retention, cultivate a culture of self-improvement among the employees, enhance team effort, provide a sense of accomplishment among employees, and boost employee morale which increases employee performance.

Statement of the Problem
While the growth of Amazon company is widely documented, there is little writing on how the employees that help built it to what it is today were motivated to help in its growth. Further, there is little information on how the employees perceive the reward and recognition programs initiated by the company or whether there are the reward and recognition programs are present. The lack of knowledge on the effectiveness of the recognition and reward programs makes it difficult for the company to act on the program to improve employee performance.

Justification of the Study
The study is justified on the ground that it provides comprehensive information on the perception of the effectiveness of the reward and recognition program at Amazon that the company can use to improve the performance of its employees. The study is also justified on the ground that it will provide valuable information that researchers and students can use in the future.

Hypothesis
The paper hypothesises that when all other factors that may influence employee performance are held constant, the employees at Amazon consider reward and recognition as effective tools for improving performance.

Research Questions