The impact of the "Financial Incentive Program" on the employee performance: The HRC Case
Kuznetsova, Anastasia (2015)
Lataukset:
Kuznetsova, Anastasia
Yrkeshögskolan Arcada
2015
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2015121821479
https://urn.fi/URN:NBN:fi:amk-2015121821479
Tiivistelmä
The purpose of this thesis is to investigate the impact of the Financial Incentive Program introduced at HRC Helsinki on the employee performance. The research is based on three theories of motivation: Vroom’s Expectancy Theory, Adam’s Equity Theory and Locke’s & Latham’s Goal-Setting Theory.
The research is implemented through analyzing the sales reports of 2 months before and after the introduction of the incentive program and, the HRC staff survey conducted by the author. The monetary data obtained from the sales reports allows the author to examine the employee performance during the incentive program, compare it with the performance before the program and indicate a change in the key areas. Conduction of the HRC staff survey provides the research with the overall attitude of the personnel towards the experimental financial incentive program, and the level of their motivation.
The outcome of the Financial Incentive program shows contradicting results after 2 months of analysis in terms of sales and employee performance. The results help to indicate important failures in the design of the program and its ways of assessing the actual employee performance. The HRC staff survey outlines overall negative attitude of the staff towards the program due to certain aspects including fairness of the program.
The analysis of the results helps the author to draw certain conclusions and come up with the recommendations for the future programs, which will be implemented at Hard Rock Café Helsinki. Therefore, the author concludes that the incentive program is not effective due to its multiple design failures, which makes it impossible to assess an actual employee performance, and it does not address the issues of fairness and equality. Moreover, the program has a lack transparency and clarity, which causes negative opinions among the staff. By taking into consideration the issues mentioned above and improving them, the company will be able to create better incentive programs for the personnel in the future.
The research is implemented through analyzing the sales reports of 2 months before and after the introduction of the incentive program and, the HRC staff survey conducted by the author. The monetary data obtained from the sales reports allows the author to examine the employee performance during the incentive program, compare it with the performance before the program and indicate a change in the key areas. Conduction of the HRC staff survey provides the research with the overall attitude of the personnel towards the experimental financial incentive program, and the level of their motivation.
The outcome of the Financial Incentive program shows contradicting results after 2 months of analysis in terms of sales and employee performance. The results help to indicate important failures in the design of the program and its ways of assessing the actual employee performance. The HRC staff survey outlines overall negative attitude of the staff towards the program due to certain aspects including fairness of the program.
The analysis of the results helps the author to draw certain conclusions and come up with the recommendations for the future programs, which will be implemented at Hard Rock Café Helsinki. Therefore, the author concludes that the incentive program is not effective due to its multiple design failures, which makes it impossible to assess an actual employee performance, and it does not address the issues of fairness and equality. Moreover, the program has a lack transparency and clarity, which causes negative opinions among the staff. By taking into consideration the issues mentioned above and improving them, the company will be able to create better incentive programs for the personnel in the future.