Reward Management Assignment: Importance of Rewards in Managing Employee Performance

Question

Task:
You work in a retail organisation with offices in London, Paris and New York. Your head office is in London. The company has always operated on a flat rate pay scheme, for all employees. It has now been decided that there should be some reward for performance. This reflects the feedback received from employees in a recent employee attitude survey. Employees commented that they did not think it fair that all employees received the same reward regardless of their level of contribution. You are now planning the introduction of some form of performance related pay. In doing this you need to address a number of different issues, and in doing so you need to answer the following questions:

1. The reward system in an organisation is affected by both internal and external factors. Identify two internal and two external factors that need to be considered when introducing performance related pay in this retail organisation and evaluate their potential impact.
2. It is likely that introducing performance related pay will have the potential to increase the cost of reward in the retail organisation. The senior management have asked, therefore, for some way of evaluating whether the approach is successful. Applying theory, explain an approach that could be used to critically evaluate the strengths and weaknesses of your chosen approach.
3. Pay does not necessarily motivate individuals, but other aspects of reward might motivate. Critically analyse how particular intrinsic and extrinsic reward strategies can motivate employees.
4. Design a reward strategy for the retail organisation that utilises both extrinsic and intrinsic reward. What effect might this strategy have on the motivation of employees working as sales staff in the retail organisation? Provide specific examples in your response.
5. Critically evaluate what you need to consider to ensure that the performance related pay scheme is both ethical and demonstrates a professional approach to reward. What impact will this strategy have on expatriates working in Paris and New York?
6. Critically evaluate the key issues in reward management in relation to the retail organisation. To what extent can these issues be mitigated?

Answer

Introduction
Reward management establishes policies and strategies that reward each worker between the business justly and constantly beyond the board. As evident in the present context of reward management assignment, rewarding workers for excellent work makes them realize the value and can demonstrate to be strong motivational equipment that enhances productivity. In this assignment, a retail organisation’s reward management has decided to provide their workers with rewards based on their performance. That retail organisation follows some retail strategy extrinsic and extrinsic reward and the ethical portion of reward paying and the issues and mitigation of those issues of reward management are also discussed. The main purpose of this assignment is to know about the importance of the rewards and the actual effects that motivate the employees towards their work, along with the ethical factors of these rewards.

1. Internal and External factors affecting performance-related pay

Internal factors

Compensation policies
The policies of compensations give usual recommendations for creating the decisions of compensations. The very first thing managers should think about when evolving compensation packages is impartiality. As contradicted by Khan and Friedman-Krauss (2021), the policies of workforce compensation lead the employees in their organisation. It should be essential and handle the equity of internal and external. The policy should incorporate the organisation’s philosophy associated with the massive parts of inducement compensation, including the strengths and weaknesses and how the entire plan gives optional adjustment of interest with the owners of shares. This particular policy should offer wide recommendations by which the organisation will utilise alternative shapes of compensation.

Job analysis and description
It is recognised that more dissimilar and challenging a job; the towering is referred to the wages. For this, the specific job is examined, and then the comparative worth of a job is set on. Job analysis refers to the structured method of controlling the skills and knowledge needed for performing a job. As opined by Anyakoha (2019), job analysis is considered equipment for developing the organisational performance of SMEs. The reward manager can determine which jobs must be exerted by whom and choose which job differentiations should be spared and which should be non-spread. With the help of job analysis and description, evolve the job description model for the position of exempt and nonexempt and dispense the models to occupants for reviews and comment and adjust the job descriptions.

Impact of internal factors
The internal factors of performance-related pay impacts empathetically connected with job stimulation, organisational dedication and trust in the administration. The profit associated payment did not contain some positive impacts. Some quantities of profit-related pay followed in workers being minimally accomplished and trusting administration less. As stated by Stoyanova and Angelova (2018), the effect of the interior factors directly impacts the competitiveness of the business organisations. The job analysis and description have helped the reward manager analyse every employee's performance to reward them. The impact of compensation policy the reward manager would understand individual employees' performance and make the employees understand the importance of rewards.

External factors

Business performance
The business performance, which is nearly bound to commercial effectiveness and is determined by a company's capability. It is established to the exceptional company with the target of offering a product or facility that encounters customers' anticipations. As stated by Ghlichlee and Bayat (2020), the frontline workers of an organisation are trained to engage with their business performance. The business performance is considered an individual employees' performance-related business. Some workers are essentially evaluated on their capability to sell, and some organisations still select to encounter the conversation in their policy of incentive compensation towards them.

Economic trends
Following the economic trends, this retail organisation can easily engage their employees towards their work. In this high period of unemployment, this retail organisation sometimes pauses to recruit new employees, additionally querying workers who endure on the pay sheet to work longer and harder. As Kobushko and Kobushko (2020) evaluated, following the economic trends, the organisations sometimes motivate and check that level by using the KPIs system. High unemployment frequently slows down wages, especially increases, due to the affluence of employees in contrast to obtainable openings. When the company increases the pay of the existing workers for their extra work, the company is more profitable than before.

Impact of external factors
Due to the performance-related pay, the retail organisation can enhance their employees' consumer satisfaction levels towards the number of objections. The external factors of performance-related pay also enhance the environment of the consumer relationship and the share of the sustained business and consumer loyalty. The help of external factors impacts the qualitative business performance indicators, which are numerous and also remarkable equipment concerning the acknowledgement of the work. As contradicted by Cheba et al. (2021), external factors positively impact the organisation. The external factors of the performance-related pay handle the business and hiring the workers and putting salaries and compensation which is considered one of the various necessary jobs that the reward management encounters. Though the organisation eventually determines the amount of pay of their employees and external finance factors which additionally act a role.

2. Approach regarding performance-related pay

Chosen approach
The chosen approach for employees' reward giving is performance-related pay which is related to paid advancement. This approach is helped to enhance the rate of base or bonuses to the evaluated performance of individuals. As contradicted by Cardinaleschi et al. (2020), the performance-related pay indicates the sectors of knowledge-intensive and the role of collective performance connected pay. The rate and limitations of progression are set on by the performance ratings and are always between the grades of the job to prevent inequalities. In other words, performance-related pay can be acknowledged as pay levels based on the appraisal of the performance of employees against prior set objectives. Concerning learning-curve theory, the payment should be huge throughout the beginning of a job when education is at the highest rate. As opined by Papenfuß and Keppeler (2020), the performance-related pay and public service motivation research handle the state-owned organisations like other organisations. It is considered a successful achiever as it gives an economic incentive and rewards. It carries a clear message to the workers that the retail company accepts in developing the performance of their workers and is prepared to pay for it. The performance-related payment assists to make performance formed companies. It is considered as a most excellent pathway to attain the objectives of an organisation.

Justification of approach with theory
Performance-related pay is referred to as performance-connected pay, which is considered an organised program that provides payment based on the employees' job performance. The organisations that used the initiatives of pay for performance commonly give the guidelines that describe what attitudes' evaluation consequences guide enhancing the payment amount. The justification of this approach is by analysing the theory of Maslow’s hierarchy of needs. These needs consist of physiological, safety, requirements of love and belonging, esteem and self-actualisation. The performance-related pay has increased the motivation which appears from a human's basic needs. As Hopper (2020) evaluated, the theory of Maslow's hierarchy of needs motivates the individual's working performance; thus, they can fulfil their regular requirements. According to Maslow's motivational model, it will proceed away when a deficiency requirement has been roughly satisfied. Their workings habitually straighten towards encountering the next munch of requirements they have yet to satisfy.

Similarly, the approach of payor performance boost the motivation at work, which can differ from worker to worker; economical rewards can be a successful stimulator. As opined by Nyberg et al. (2018), based upon the employee performance, the employees get the collective payment as a cross-disciplinary review. When workers register that encountering certain anticipation of performance can result in huge pay, it can push them to work very hard and evolve their skills to encounter those particular targets. Moreover, these policies can increase ethics at work due to the worker's desire to watch them flourish and reward them for their hard work. Growth does not come from an absence of something but rather from an aspiration to expand as a person. Once these expansion requirements have been considerably satisfied and one may be capable of getting to the highest level, it can call out self-actualization.

Figure 1: Maslow’s hierarchy of needs

(Adopted by Hopper 2020)

Strengths and weaknesses

Strengths

Grabs and maintain top-level talent
Containing the compensation policies if performance pay can assist an organisation continue competitive when glancing to recruit employees. As opined by Keller and Meaney (2017), with the help of the approach of performance-related pay attracts and retains accurate talent. The potential workers may be more probable to select an organisation that gives monetary incentives. Thus possibly higher in compensation for their outstanding performance at work.

Provides workers more control
Lee and Ravichandran (2019) evaluated that the job control perceptions affect the individual employees' work-related responses in every industry. The strength of the approach of performance-related pay advantages the employees to gather more power to enhance their wages. These workers may determine to enhance their productivity throughout certain year periods like surrounding the holidays, gathering some additional cost. Containing this control assists them to realise like they have more power to improvise their rising at work rather than discerning the power.

Weaknesses
Negatively impacts teamwork:
The approach of performance-related pay negatively affects teamwork because it may concentrate individually more on developing whole team employees' workings. If the workers attempt to encounter objectives based on their workings as individuals, they may concentrate minimally on being a teammate to other fellow workers. As contradicted by Tseet al. (2018), teamwork reduces the negative impact of the surplus challenge on the state of flow.

Puts concentration on the amount of work:
The approach of performance-related pay hampers some concentration on the huge amount of work determined by the objectives to bind payment enhancement. It would be smoother to utilise perceptible measurements. As evaluated by Bocken et al. (2018), a tight concentration is helped to expedient the circular business model. Although, this may guide workers to concentrate more on the amount of work they provide rather than the standard.

3. Intrinsic and extrinsic reward strategies
Intrinsic reward strategies
Intrinsic rewards are those incentives that have been provided to the workers of the retail company. An intrinsic reward is an interior reward that workers attain from finishing their jobs or projects effectively. Xu (2021) evaluated that the exploration for deep reinforcement learning drives the intrinsic reward. These rewards are mostly familiar as psychological and are based on the attempt and capabilities of a person. There are some strategies of intrinsic reward which an organisation can follow,

• Provide workers more autonomy
• Authorise their workers to be self-satisfied and purpose-operated
• Encourage social interaction
• Give chances for development
• Investing in workers’ learning, evolution and well-being.

There are some examples of intrinsic rewards in the organisation: pride in the individual's work, realisations of respect from senior managers and other workers, and growth. Apart from these, there are more motivations like obtaining more trust from employers, affecting work that is much more enjoyable, realisations of accomplishment, studying something new, or growing capability in a specific portion. As opined by Jaegle et al. (2019), there are some visual novelty, curiosity and intrinsic rewards in working in the retail organisation. Recognising the intrinsic rewards, the reward manager started by examining the environment of the current day's work. The following are explanations of the four intrinsic rewards, which are,

Sensation of meaningfulness
This reward incorporates the significance of the motivation that they are attempting to fulfil. As Thomas (2019) evaluated, the employee has a chance to achieve something of actual value because there are some consequences in the huge plans of things. The employees can realise that they are on a pathway that values their time and energy and provides them with a powerful direction.

Sensation of choice
The employees are free to select how to achieve their work to utilise their best judgement to choose those work activities. As contradicted by Kouchaki et al. (2018), the sensation of choice can decide morality with some relevance of options. It creates the most sensation to the employee and to carry them out in pathways that seem suitable. The employee realises ownership of their work, accepts the approach they are grabbing, and is responsible for creating it.

Sensation of capability
The employees realise that they are holding their work activities, which indicates the performance of these workings encounters or excels their standards. As opined by Mahmoodabad et al. (2021), there are some analyses of capability, motivation and opportunity to help gather the sensation of capability. The reward managers always compliment their employees based on their personal qualities, like they are doing good and appreciate their high standard of work. The employees feel satisfaction, pride or even creativity in how excellently they manage these workings.

Sensation of progress
The employees are encouraged by their reward manager for their efforts which are achieving something. The employees realise that their work is on track and proceeding in the exact direction. The employees look at the persuading signs that things are answering and prove their confidence in the selections they have created and confidence in the future.

Extrinsic reward strategies
The extrinsic rewards are generally economical or tangible provided to workers like pay increments, bonuses and advantages. They are extrinsic because they are exterior to finish the work itself and are handled by a person other than the worker. As evaluated by Sulistiyani and Rahardja (2018), by analysing the impact of transformational leadership, the extrinsic reward and knowledge sharing helps on several creative performances. The strategies of the extrinsic rewards are economical or tangible rewards provided to workers like pay enhancement, bonuses and advantages.

• They are extrinsic because they are exterior to finish the work itself and are handled by persons other than the worker.
• The extrinsic reward strategies can be important in jump-beginning, commencing buy-in or involvement from persons at the beginning of the stages of preparedness to change.
• They generally have limitations in effect above time if they are not enhanced.
• They are a strong crank to strengthen and operate the attitudes that are worth of culture most but would not be the standard with the absence of sales commissions and performance bonuses.

The extrinsic rewards are unmoving broadly utilised in several companies for a span of initiatives and workings. But when they signify to enhance or encourage engagement of the worker in something such as individual well-being. But these impacts can be short-reserved for most people. As stated by Parker et al. (2017), the reward managers utilise stress and resource theories to examine the effects of incentive of a performance-based extrinsic reward. When an extrinsic reward stimulates someone to grab, the window for sustained arrangement is the limitation if the individual does not recognise a reason intrinsic to carry on with engaging. That emerges from exterior to interior stimulation, which is essential. The rewards and motivators of extrinsic can be utilised successfully to capture workers in a short-terminal situation to provide the push to their targets. If the intrinsic stimulation to encounter new targets or the exact targets above time is not evolved or does not occur in the non-appearance of a once served extrinsic reward, worker engagement. It can be negatively affected in the long term.

4. Reward strategy for the retail organization that utilizes both extrinsic and intrinsic reward
Organisations play a crucial role to infuse motivation at different hierarchical levels within the workplace. When the present organisation performing in the retail industry requires a shift in reward strategy, Both Intrinsic as well as extrinsic rewards are tried to be focused upon uniformly. As a present organization has a history of practicing flat rate of wage strategy Applied upon that employee workforce, irrespective of different hierarchical levels, it naturally leads to frustration and dissatisfaction of human labour (Kazancoglu et al., 2018). The present reward strategy therefore decides to concentrate upon improved employee engagement attribute where both intrinsic as well as extrinsic rewards shall be equally provided to their workforce. The performance related revert provision is the newly designed reward strategy that the particular retail organisation based in UK, London tries to absorb. This strategy aims to achieve two fundamental motives of distinguishing rewards on the basis of quality of contribution made towards workplace improvement and escalate the motivation of workers to perform In a better way to obtain the denoted reward. When the reward achievement shall be dependent upon the efforts, sincerity, quality of work and productive contribution made towards overall improvement of organisational workplace, the retail firm will be able to evaluate the qualitative grade of each employee distinctively.

Figure: Perception of Motivation

(Source: Muttaqin and Suwatno, 2020)

For suggesting an accurate and practice able reward strategy for the present retail organisation, culture specific motivation within workplace is acknowledged as the key to success. The human resource management team along with the top hierarchy leaders need to actively participate within the organisation to identify the elements that dick or push their specific employee strength to achieve greatness within work space (Muttaqin and Suwatno, 2020). Each of the employees has distinctive and distinguished motivational factors that help to strengthen productivity and commitment towards work. From the employee attitude survey, it is possible to determine the specific differences in acknowledging different motivator or pushing agents that an organisation can apply to retrieve improved service outcomes.

Strategy have on the motivation of employees working as sales staff in the retail organization
With the Help of introducing performance-based motivation, different targets and achievement limits are standardised for different levels or hierarchies of workers or employees within the organisation. This not only determines the ability of the employee to push towards greatness but also enhances the holistic contribution quality Derived from the employee strength. After the survey has successfully identified the particular precursors that indicate motivating factors for each employee level, the use of survey data is made in logical and justified manner (Saraih et al., 2021). As suggested by psychologists like Richard Ryan and Edward Deci, the culture specific workplace motivation is incorporated through multiple strategic approaches. When the higher-level employee workforce mostly indicate promotion, reputation, respect, esteem needs with greater recognition to be the driving motivating factors, the retail organisation plans to offer different promotional schemes with increased hierarchical position carrying great respect, regard and reputation.

In case of the middle layer hierarchy within the workplace, the managers, team leads and sales or marketing employees look for pay related incentives as the prime motivation for the work they contribute in. For such employees raised pay scale, incentive programs and remuneration rise on the level of reaching desired target and fulfilling successful deals in favour of the retail organisation are tried to be arranged as a strategic reward plan (Muttaqin and Suwatno, 2020). In case of the lower-level labourers like stock maintenance, logistics, Supply chain network and manufacturing or factory loading and loading members are tried to be offered workplace stability with proper organisational hygiene. Clear indication from the survey responses concentrate upon the satisfaction derived from poor working conditions identified at work place that Makes the productivity and performance of the workers and labourers suffer intensive downfall. In order to uplift their morale and boost their motivation levels, the performance-based culture specific workplace motivation is included.

With the help of the newly introduced performance-based reward strategy, both Intrinsyc as well as extrinsic motivators add possible to be infused within the workplace environment for the present retail organisation. The form of extrinsic rewards that the present retail organisation prepares to offer to different levels or hierarchy of workers according to their contribution level and quality of performance are discussed as follows:

Extrinsic rewards mostly manifest in the form of tangible or materialistic benefits provided from organisational we have towards the workers. These mostly constitute bonus paid, increased salary and benefits or perks like free food voucher, Gift coupons and shopping or product discounts and free benefits.

Figure: Intrinsic and extrinsic motivation

(Source: Li et al., 2017)

When the sales or marketing managers and employees recruited at different levels of the retail organisation performing in UK, London, are successful in achieving the given target it is considered that high-performance quality is executed (Li et al., 2017). It is based upon these benefits, perks and external rewards to earn a special edge along with their service contribution that motivate and boost their performance to deliver with greater loyalty drive and improved commitment levels. In order to secure extra income and bonus along with flat rate salary, high-quality performance is tried to be offered to create an edge to earn regard and reputation within the organisation. This not only reinforces the powerful level of behaviour modification as the route of performance drive but also lifts up the entire culture of workplace with a target achievement motive. The inclusion of extrinsic motivator factors unintentionally induces a certain level of healthy competition among the workers operating in the same hierarchical level to derive better performance outcomes which can result them in getting the added perks, pay raise and bonus benefits.

Intrinsic rewards on psychological level to improve performance by supplying motivators
Taking the psychological reward manifestation for motivating the workers within thepresent retail organization, the intrinsic motivators which are planned as the new strategic design for reward management are included as follows:

Finding a meaning to be associated or attached with the current retail organisation provides sufficient intrinsic motivation towards the workers and employees. Getting sufficient value, reputation and recognition boosts the moral esteem of the individual (David Pangaribuan, 2021). Getting appreciated for any valuable contribution, strategic ideas and noteworthy performance that generates improvement within the organisation becomes a significant source of intrinsic rewards.

By society changes in the requirements of every employee and on workplace necessity Such as requirement for regard, appreciation, approval and respect are possible to help the intrinsic strengthening of relationship between organization and the employee strength. By allowing the sales management capabilities, the power distribution and a decentralised manner help the employees to feel as an emergency part to be valued as a family member of the organisation. Such a positive emotional support acts as intrinsic reward achievement towards the employees.

5. Considering performance related pay scheme as an ethical and professional approach to reward employees
When the present UK-based retail organisation experienced heavy amount of dissatisfaction from all her at the levels related to the rewards or flat pay scale maintained for a long time, a change was thought to be necessary. As an alternative and practical approach of reward strategy, the retail organisation inclines towards preferring the performance related pay scheme. Such a strategic application is possible to be considered effective when the employees are reward driven and seek Motivation from their workplace. For accomplishing the purpose of making the employees work harder with quality-based service output, the bulk based pay packages provided at the end of the month are considered to be feasible replacement for the flat rate remuneration scheme (Parker et al. 2017). The retail organisation needs to avoid by policy norms where the minimum wage is provided under the country regulation is appropriately accomplished. One of the most ethical and legit way of offering the employees with performance related pay is the introduction of incentive based on target achievement. The employees associated within the marketing and sales department are possible to be provided with incentive programs where the pay scale is tried to be turned into a variable amount rather than a constant value. As revealed from the aptitude survey of employees, lack of discrimination and differences in reward benefits are found to be a source of dissatisfaction, the alternative scheme is tried to be strategically applied.

Figure: Reward based motivation

(Source: Saraih et al., 2021)

However, speaking on an ethical ground the excessive use of external motivating factors by adapting extrinsic rewards are highly questionable. In order to fulfill the purpose of engaging employees for a sustainable period, extrinsic motivating factors are made to utilise on a forcible nature. This however leads to an ethical breach under organisational compression of intrinsic value to engage an employee within their retail organisations (Saraih et al., 2021). Under corporate policy regulations CPR the extrinsic rewards influence has such an overpowering impact upon employee engagement that the actual meaning a reason to continue employee engagement naturally it’s deleted. The internal motivation is critical and unresponsive as the employee performance is only dependent upon the extrinsic motivating factors considered on value driven approach.

In order to fulfill the professional approach of providing rewards to the employees the intrinsic reward benefits and values have to be increased in nature. The overall culture and environment of the workplace needs to be the route driving cause according to Ryan and Deci which shall be the responsible factors for employee sustainability within an organisation. In order to create a balance between Intrinsic and extrinsic motivating factors, the ethical consideration needs to be given sufficient importance. Satisfaction derived from accomplishment of the job itself or achieving success on a particular deal or project shall be sufficient for the employees to derive motivation (Antoni et al. 2017). This is possible only when the employees are regarded as a family member of the organisation and develops equal association and attachment towards the retail firm.

Reward strategies have different implications upon different set of employees (Muttaqin and Suwatno, 2020). When expect react workers associated in New York and Paris shall be infused with the performance directed reward strategy has a new introduction, it is possible to face challenges regarding the new changes made. It is natural that employees recruited from hometown are provided with a different remuneration scheme as compare to the expatriates belonging from different country backgrounds. In order to facilitate the workers recruited from foreign country and cater to their benefits and perks to support their lifestyle as a host country, the retail organisation operating in UK, London originally has a distinguished pay scale where the expatriates working for the company had given more importance and raised payment then the local employees (De Moor et al., 2021). However, the absorption of the change in reward strategy on the basis of performance shall hit the employees belonging from Paris and New York In a negative way. It is natural that perceiving no significant difference between them and the local recruited employees shall be disturbing and dissatisfying in nature. The feeling of retrieving a superior amount and enjoying greater benefits shall be diminished. This shall give rise to a different set of conflict and contradiction in opinions giving rise to a state of unrest within the workplace scenario of the present retail organisation. This naturally builds the foundation for new set of complexity in the form of contradictions in opinion, conflicts in strategic preferences and requirement for motivation.

6. Key issues related to reward management in the retail organisation

• Lack of acceptance towards the change in reward strategy

The long-practised strategy of the retail organisation has depended upon a flat rate of salary to be provided to all layers of performance within the organisation. It is their side and alternative introduced within the organisation which is possible to face hindrances to the change. Any change newly incorporated within the workplace is likely to face sufficient challenges. Accepting the performance-based reward management as a new alternative also faces practicality issues (Jhaveri, 2018). Keeping a track of each employee performance on a regular basis through their service output becomes a difficult job. The management responsibilities and complexities involved within the workplace will be much higher and involves intricate strategies to make the process risk prone and an overall level. Making a practical and feasible strategy to enhance the level of commitment among Employees will pressurise the higher-level management team to keep a close record and regular observation of the qualitative or quantitative contribution made by employees towards upliftment of the organisation as a whole.

• Contradictions in believes and requirements among the locals and expatriate workers

It is possible that expatriate workers belonging from New York or Paris region do not accept the newly incorporated reward strategy in a welcoming manner (Martono et al., 2018). Due to the existing difference in pay scale between the local and the expatriate employees, the natural superiority and benefits received by the expatriates are highly cherished and felt proud of. When the change in strategic approach becomes prevalent within the specific retail organisation, it becomes a natural cause of botheration for the expatriate workers. Losing the edge of benefit and seeking advantage for different origin to the organisation shall become a significant issue. This is likely to emerge in a state of conflict and contradiction. The performance-based reward management approach is possible to be denied and rejected rather being accepted by the expatriate workers.

• Creating a stable balance between Intrinsic and extrinsic motivating factors

When the performance related reward strategy is tried to be introduced within the organisation, the retail firm is likely to face the natural challenging consequence in the form of overpowering impact of extrinsic motivation factors upon the intrinsic factors. Deriving a stable balance is almost impossible or extremely difficult to manage within an organisation (Saputri and Hidayat, 2021). As the perks, Benefits and raised scale of remuneration our strong motivating indicators to influence performance and productivity quality of the employees, the intrinsic value of deriving joy and accomplishment simply from the performance of the job or fulfilment of project is somewhere lost. This becomes a challenge for the organisation to derive essential value towards intrinsic motivating factors to mellow down the extrinsic motivators.

• Approaches for issue mitigation

The use of workplace culture related motivation can become a significant mitigation strategy to resolve the risks related to the new change in reward management strategy. By infusing play activities and informal friendly associations among different hierarchical levels, the level of competition and negative feeling against one another can be reduced (Ismail and Abd Razak, 2017). This will not only resolve the issues between expatriate and local employees but will enhance the employee engagement level to uplift the value of intrinsic motivation factors. Rather than solely depending upon the extrinsic benefits, perks and incentive-based salary, considering them as a significant part of the organization shall also be derived. With the help of decentralization of power, the employee autonomy level can be accelerated so that the decision making contribution is positively impacted. By promoting social interaction within the workplace and celebrating achievements the intrinsic value can be lifted higher to balance down the extrinsic overpowering impact to motivate and influence the employee engagement level. This shall help in a healthy workplace to be established.

Conclusion
The present assignment helps to get an overview about reward management strategic importance to derive sufficient amount of employee engagement. By designing a new reward strategy for the retail organisation on the basis of performance-oriented pay scheme, the quality of service output is tried to be enhanced. The risks possible to emerge as a result of this new strategy are tried to be identified and addressed with sufficient mitigation strategies on a practical level.

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