Impact of a reward sytem on employee motivation in Nestle

Project Background

The reason of the thesis was to examine and analyze how well the current reward system of Nestle helps generate employee work motivation. More specifically it aimed to find out which aspects of the reward system functions well, and which aspects could be further developed and improved in order to increase employee satisfaction. The theoretical part of the study introduces different theories of motivation and rewarding.

 Importance is put on Maslow’s hierarchy of needs, the goal setting theory and the total reward system. The empirical part of the thesis was conducted by using a quantitative research method. The data was gathered with the help of a questionnaire and two interviews.

 The endeavor of the research was to compare the different reward systems used in Nestle and find the pros and cons of them. The research results revealed how Nestle can develop their reward system by including the employees in the decision making process. The research chains the assumption that a well developed and functional reward system can increase employee motivation and satisfaction.

Research question and purpose of the study

If you study the today we can see the today organization result is highly dependent on the workers motivation. Hence it is vital for an organization to dig out what motivates its employees so that I could be plan a suitable reward system and obtained good result. The right combination of immaterial and material rewards can boost up the employees’ work motivation and enhance their commitment to the company.

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