Rewarding Store Managers - Do personal differences matter?

Abstract: Background and research problem: Reward system is today a common tool for companies to make sure their employees achieve their goals. An interesting aspect is how companies reward their store managers who have a complex role because they ought to handle goals set by the superiors and requests from the employees. When it comes to the framing of the reward system, the complexity of the role as a middle manager is appealing. The personal differences, concerning the employees’ personalities, are another aspect the companies need to take in consideration when it comes to the reward systems framing. With this background our research problem is as follows: How to reward store managers? Specific interest will be put into how personal differences and complexity in the role of a middle manager influences store managers’ perception of reward system. Purpose: To understand how the store managers experience the reward system in relation to their own situation and interest. Methodology: This thesis is based on a case study with two cosmetics- and health companies, Kicks and The Body Shop. For the empirical data, interviews have been made with store managers at the two companies. We have also taken use of scientific literature for the theoretical background. Conclusions and results: When the purpose with a reward is to motivate the store managers to perform their very best, it might be difficult for the companies to find the right measurements for the specific company. It is also of great importance to make sure that the store managers understand what goals they have to achieve. Concerning a well functioning reward system, there are two factors to take in consideration. The first one is the complexity of the role as a store manager; and the second one is the existing personal differences, regarding the store managers opinions and references about the reward system. Suggestions for further research: Because the companies in this thesis are dominated by women, it would be interesting to make a comparison concerning the reward system with a company dominated by men. Another interesting aspect is what impact cultural differences might have on the reward system’s framing.