International business assignment on theimpact of reward system on employee commitment: a case study of ASDA in Holborn
Task: Critically write your international business assignment on reward system and problems related to employee commitment within ASDA.
Chapter 1: Introduction to the international business assignment
Globalisation in recent times has allowed businesses to go beyond national boundaries and the workforce associated with these organisations is protected by international laws where the reward systems are becoming a major competitive tool to improve employee morale and motivation. The advent of globalisation has developed extreme competition in the field of business management to remain innovative, creative and proactive to survive the volatile business environment. Asda is one of the largest retailers operating in the United Kingdom and has more than 145,000 employees. The company considered in the international business assignmentin recent times has been facing issues regarding the lack of commitment in its workforce. The international business assignmentresearch will highlight and investigate the importance of the reward system as a possible cost for deteriorating employee commitment in ASDA. The international business assignmentwill also try to establish a relationship between the salaries and employee commitment provided in ASDA. Furthermore, special emphasis will be provided on the impact of employee commitment on the availability of benefits and recognition for the workforce of a business enterprise.
1.2 Research background of the international business assignment
Numerous behavioural researches have consistently demonstrated the peak in performance level when the reward system of organisations is contingent upon the performance of its workforce. According to the views of Francis et al. (2020), the most important aspect that is considered by the majority of the business organisation is the function served by its reward system to its workforce. As per the international business assignment reward systems in business enterprises like ASDA create a significant impact on the efforts and performance of its workforce as well as the retention and attendance of its employees. There has been a direct and significant impact between the performance and commitment of the workforce. According to the views of Mahmood Aziz et al. (2021), the development of employee commitment towards a specific organisation usually occurs through the reward systems that are being perceived by the employees of the organisation. How about there are numerous instances where lack of recognition and unavailability of fringe benefits have led to the development of discontentment in the workforce of a business enterprise.
In order to understand the relationship between employee commitment and the reward system in the international business assignment, it is necessary to understand the motivating factor of the employee commitment to working for a specific business organisation. Asda is one of the largest retailers providing employment to more than 145,000 employees and serving approximately around 18 million customers every week (Corporate.asda.com, 2022). The scale and size of operation of business enterprises like this mentioned in the international business assignmentsignificantly require committed employees to look after the business operations. The lack of motivating factors and an adequate reward system might degrade the motivation and commitment of the workforce which will create a negative impact on the business operations of a company. Therefore, it becomes quite evident for a company to look into the needs and benefits of the word force and develop a reward system that will help in keeping the employee morale high. The availability of an equal and appropriate reward system will help in instilling faith and belief in the workforce of a company and will ensure that they remain committed to the organisation for a long period of time (Beqiri and Aziri, 2022). It will not only reduce the pain of recruiting new employees as per the international business assignmentbut also help in providing benefits to the organisation in the management of its financial resources.
1.3 Research problem of theinternational business assignment
There is a strong correlation between employee commitment and reward system for their work. Lack of employee engagement in the organisation considered in the international business assignmentcan cause dissatisfaction and disruption among the workforce along with decreased morale (Kucharska, 2020). As customers sense and respond to those less engaged employees, the organisation confronts a negative response in the organisation due to the lack of employee commitment. It is the responsibility of the management to address the reasons of disengaged employees as a bigger concern for the development of the company. As the reward system helps to increase employees' performance by improving their skilful knowledge and abilities, they can sustain the reward system by achieving organisational objectives. Lack of employee engagement as per the international business assignmentcreates numerous instances in the reward structure of the employees where unavailability of fringe benefits led to the development of discontentment among the workforce. Inefficient reward systems in the business enterprise also demotivates employees in terms of low productivity, high turnover, internal conflicts, lateness, lack of commitment and loyalty (Pham et al. 2019).
1.4 Aims and objectives of the international business assignment
The aim of the international business assignmentis to investigate the reward system as a cause of the problem of the low employee commitment in ASDA.
To understand the relationship between performance-based pay and employee commitment
To assess the presence of our relationship between employee commitment and team-based pay
To highlight and understand the influence of recognition on the commitment of an employee
To analyse the impact of fringe benefits on the commitment of the employees
To assess the presence of a relationship between employee commitment and the reward system
Research questions of the international business assignment
Q1. What is the relationship between employee commitment and performance-based pay
Q2. Is there a relationship present between employee commitment and team-based pay
Q3. What is the influence of recognition on the commitment of employees
Q4. How far do the fringe benefits create an impact on the commitment of the employees
Q5. Is there a direct relationship between employee commitment and the reward system
1.5 Research rationale
Reward systems in business enterprises as per the international business assignmenthave far-reaching consequences both at the individual satisfaction level and organisational effectiveness. However, business enterprises in the current globalized world pay very less attention to the factor of reward system for the employees. According to the comments of Tariq and Ding (2018), the absence of a motivating factor for the workforce of a business enterprise might create a negative impact on the organisational effectiveness and overall output. There have been many instances as per the international business assignmentthat can be easily cited where the reward system has been badly distorted and has been used in a wrong manner to punish the good performing individuals in a company or inhibit their creativity. For business enterprises like Asda which is operating at a humongous level, employee performance directly has a creative impact on the overall effectiveness of the organisation. It has been highlighted by Amis et al. (2018) in theinternational business assignment, it is a well-known and common reality that numerous contemporary organisations around the world are affected by inequality regarding the distribution of available rewards for their workforce. These factors have led to the development of discontentment and reduced commitment to the organisation. It is one of the major reasons for the development of this specific research on the factor of employee commitment to an organisation. The area of research in theinternational business assignmentregarding the availability of motivating factors and their relationship with employee commitment has surfaced due to the decreasing effectiveness and overall profits generated by large companies such as ASDA. As per the views of Plachá (2020), fringe benefits and the recognition of committed employees in an organisation are some of the factors that have significantly improved the overall business metrics of multinational corporations. Business enterprises like Asda which is operating in numerous locations in the United Kingdom and have various supercentres, supermarkets and superstores require skilful employees who are committed to the organisation to manage the complex business demand of the company. According to the comments of Wei et al. (2020) in international business assignment, the nature of business operation in the retail industry that is operating at a large scale is quite complex and demanding which on many occasions creates additional pressure on its workforce. In these scenarios, the absence of a reward system will reduce employee commitment and will significantly create a negative impact on the overall business of the company. Moreover, the presence of a reward distribution system based on the principles of equality helps in the development of faith in the business operations of a company in their employees. The topic of employee motivation and commitment and the influence of its recognition considered in international business assignmenthas surfaced in recent times due to the development of discontent in the employees of ASDA.
1.6 Scope and limitations of the international business assignment
The research scope of the international business assignmentfocuses on the impact of the reward system on employee commitment level as it deals with disengaged employees. ASDA in Holborn is the organisation that is selected for the study to develop and sustain employee commitment towards the organisation performance. It is a retail industry that benefits customers through economic and overall quality of life improvements. Involvement of a secondary research method is selected for the international business assignmentso as to make it a qualitative research paper on the findings of low commitment in ASDA in comparison to the other organisations operating in the UK. The international business assignmenthas not measured primary research data that could involve first-hand information from the employees of ASDA in their commitment level and reward system (Abasilimet al. 2019).
1.7 Research methodology of theinternational business assignment
Research philosophy develops proper understanding and assumptions of the research practices that provides a transparent result in the research outcome. There are three types of research philosophy such as interpretivism philosophy, positivism philosophy and realism philosophy. Application of interpretivism philosophy is selected for international business assignmentas it can interpret individualistic ideas based on the perception of employees towards their commitment level and reward system. It can also analyse the unacceptable consequences of employee disengagement by reformulating the divisions of research questions in a proper way (Jaworski et al. 2018).
Research approach to theory development
Research approach defines the plan and procedure that details the broad assumptions of the subject arena as addressed by the research problem mentioned in the international business assignment. There are two types of research approaches such as inductive approach and deductive approach. Involvement of an inductive research approach is suitable for the study as it can analyse the activities of employee disengagement as the reason for low employee commitment and poor reward structure in the organisation. Different dimensions of an employee's disengaged level can be identified through an inductive research approach that is utmost important to influence a positive outcome in employees commitment level. Application of Robinson model of employee engagementin the international business assignmentcan induce two-way communication in ASDA that will facilitate development focus on the commitment to employees’ well-being and effective internal cooperation between the employees and seniors (oreviet al. 2020).
Research method is the strategy or technique that is required to uncover new information on the research topic through a proposed intervention. There are two types of research methods such as quantitative method and qualitative method. Implementation of a qualitative research method is quite effective for the international business assignmentas it can evaluate statistical data of employees' disengagement level along with a theoretical hypothesis. It will involve collection and analysis of non-numerical data so as to generate new ideas on the reward structure of the ASDA as needed to increase employee engagement level and further their commitments.
Research strategy indicates the data collection process to gain in-depth information about the research study as needed to obtain the intended outcome. There are five types of research strategy such as case study strategy, cross-sectional study, ethnographic strategy, descriptive strategy and exploratory strategy (Jung et al. 2020). Integration of descriptive strategy in the research international business assignmentof ASDA is quite important as it can describe the particular situation of the employees relating to their disengagement level in the workplace, primarily due to their poor reward system. It can also detail the problems of disengaged employees as a greatest weakness of employee’s commitment level in ASDA on the instances of negative reward structure.
1.8 Data collection
Data collection is considered the key element for identifying and analysing the intended outcome of the research data. There are two data collection methods such as primary and secondary data collection methods. Application of secondary data collection method is selected for the international business assignmentto gather convenient pieces of information of employees’ disengagement level along the reward structure of ASDA and other retail organisations to maintain transparency in the research outcome (Alharthiet al. 2019). This data collection method is quite time saving and less expensive than the primary data collection method that would involve first-hand information from the employees. Selection of random sampling techniques is suitable for international business assignmentas it reduces research biases and analyses diverse dimensions of employees' disengagement level in the organisation. The researcher has included 10 peer-reviewed journals and articles of retail organisations including ASDA from the last 10 years, i.e. from 2011-2021. Involvement of thematic data analysis is more suitable to evaluate qualitative data sources in a strategic manner as it has defined significant patterns of employees’ impact on their reward structure as a concern for employees’ commitment level.
1.9 Research ethics
The ethical issues have been dealt with strict consideration in order to maintain the integrity and confidentiality in the research data obtained from the secondary insights. Enforcing the regulation of Data Protection Act, 2018 was vital to protect the ethical issues of data manipulation or data theft as required to access the data collection measure (TrigueroSánchez et al. 2021)). In order to maintain the GDPR data protection rule, the research in theinternational business assignmenthas used only peer-reviewed secondary data such as published journals and articles along with the information from the official website of ASDA to ensure clarity in the research topic.
1.10 Chapter contents
Findings and analysis
Conclusion and recommendation
1.11 Chapter summary
The chapter of the international business assignmenthas appropriately discussed the importance of employee motivation and commitment and its direct impact on the growth and development of a company. The important aspects of employee commitment and influence and recognition of the workforce on their efficiency have been discussed in this specific chapter. The aims and objectives including the problem statement have highlighted the issues that the research will be covering in its subsequent chapters. The research rationale of theinternational business assignmenthas highlighted what is the primary reason for the lack of employee commitment in a large organisation such as ASDA. The background of the research has also emphasized the significant impact on the ability and performance of the workforce of a company on it.
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