Investigating the influence of reward systems on employee performance in the service industry of Potchindustria and Potchefstroom Central

Abstract

With the service industry in South Africa being a labour-intensive environment with a 72.29% share of employment (Stats SA, 2019), the demand for service delivery is high, and managers will need all the knowledge/tools to assist them in keeping up with the orders. The focus of this study was to investigate the influence of reward systems on employee performance in the service industry of Potchindustria and Potchefstroom Central. In Chapter 2, a thorough literature study was carried out and comprised a detailed literature review on reward systems in organisations. Concepts such as reward systems, reward strategies, employee performance, and the service industry were defined and explained. An additional literature review was done on different reward systems, types of reward strategies, influences of the reward system on employee performance, advantages and disadvantages. After assessing the literature and the organisation's history, empirical research was carried out, and the findings of the empirical study were discussed. Finally, a questionnaire was used to gather the information from the participants in the study of "Investigate the influence of reward systems on employee performance in the service industry of Potchindustria and Potchefstroom Central" to investigate the three constructs. The questionnaire consists of four (4) sections. Section A assessed the current types of reward systems, Section B assessed the current reward system used in the organisation, Section C investigated the perceptions of the organisation's current reward system, and Section D gathered the demographical information of the participants. Hundred and twenty-two (122) questionnaires were used of the hundred and twenty-seven (127) returned. Following an extensive empirical analysis performed in Chapter 4, it was concluded that the three constructs "Type Of Reward Systems" indicated a mean of x = 3,00, the "Current Reward System" ( x = 2,78) and "Perception Of The Current Reward System" ( x = 2,82) demonstrate lower means. The study concluded by evaluating the primary and secondary objectives and made suggestions for further research.