Employees'reactions due to a reward system : a study in a sale organisation

Abstract: Background: Reward systems may be used in order to encourage different behaviors and to motivate employees in accordance with a company’s intended goals and results. To be able to design a reward system that leads to desirable performances, it is of great importance to be aware of the reactions that a reward system can emanate among employees. Purpose Statement: The purpose is to analyze and explain the reactions of employees due to a reward system that has been designed and implemented by the management. Research Method: We have carried out interviews with 2 middle-managers, 7 employees as well as the responsible of the reward system at Telia Kundtjänst AB in Norrköping. Result: According to our study, reactions emanating from the implementation of a reward system appear as improvements as well as deterioration of performance. Further, our study indicates that the reactions can be explained by the injustice experienced among the employees, unclear goals and a deficient communication.