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This research is being withheld to know the reward and recognition on employee motivation level at Nestle. The esteem importance of employee motivation cannot be overthrown and reward and recognition system has been the top priority to enhance their motivation. Only those companies flourish who give time and efforts to their employees and improve their reward & recognition system. The reward & recognition system is set to see the feedback obtained from employees and meet the deficiencies in their system and improving it to enhance the employee productivity.

This research has used the simple random sampling technique and the data obtained is measured by mean test evaluation and correlation. Simple random sampling is the best and provides ease of handling the questionnaire to gather the data while mean test evaluation is the easiest to understand and interpret the data.

From this research, it has been observed that majority of respondents have selected agreed option for given questionnaire.

The current study is going to design how reward, recognition are perceived as sources of employee motivation at Nestle Pakistan. In today’s competitive business setting companies face several challenges and among those challenges acquiring right work force and retentive it, is of utmost importance.

Rewards: Employee reward system refers to programs set up by an organization to reward performance and motivate employees on individual and/or team levels. They are normally considered separate from salary but may be monetary in nature.

Recognition: Employee recognition programs are often combined with reward programs. These may or may not be monetary in nature. Employee recognition is a communication tool that reinforces and rewards the most important outcomes people create in an organization.

Motivation The first and most obvious reason for employee rewards is the motivation that it provides. Good employees will try their best anyway, but even the best employees are spurred on by a little extra incentive. It might surprise you to find out that most people do not work at their full capacity, and most people often do the bare minimum. So if you want everyone to work a bit harder, create a rewards scheme and let them know what will happen if they do good work. Sometimes there does not have to be something going wrong in order for you to want to kick your business up a notch.


Nowadays, human assets are considered to be the most vital asset of any organization. so as to urge the economical and effective result from human resource, employee motivation is critical. Rewards can be extrinsic or intrinsic, extrinsic rewards are tangible rewards and these rewards are external to the job  or task performed by the employee. External rewards can be in terms of salary/pay, incentives, bonuses, promotions, job security, etc. Intrinsic rewards are intangible rewards or psychological rewards like appreciation, meeting the new challenges, positive and caring attitude from employer, and job rotation after attaining the goal. Frey (1997) argues that once pay exceeds a subsistence level, intrinsic factors are stronger motivators, and staff motivation requires intrinsic rewards such as satisfaction at doing a good job and a sense of doing something worthwhile.


Although these terms are often used interchangeably, reward and recognition systems should be considered separately. Employee reward systems refer to programs set up by a company to reward performance and motivate employees on individual and/or group levels. They are normally considered separate from salary but may be monetary in nature or otherwise have a cost to the company. While previously considered the domain of large companies, small businesses have also begun employing them as a tool to lure top employees in a competitive job market as well as to increase employee motivation.

Human resource is one of the most important resources of gaining competitive advantage over competitors for a firm. And this resource can be retained and optimally utilized through motivating it using different techniques among which reward is of significance importance. Carraher et al (2006) advocates that there should be an effective reward

system to retain the high performers in the organization and reward should be related to their productivity. A lot of work has been done on evaluating the relationship between

rewards and employee motivation and there exist a large number of studies in the literature describing impact of reward on employee motivation. In order to maximize the

performance of the employees organization must make such policies and procedures and formulate such reward system under those policies and procedures which increase employee satisfaction and motivation.  Bishop (1987) suggested that pay is directly related with productivity and reward system depends upon the size of an organization.

Organizations in today’s competitive environment want to determine the reasonable balance between employee loyalty and commitment, and performance of the organization. Sometimes management pays more attention to extrinsic rewards but intrinsic rewards are equally important in employee motivation. Intangible or psychological rewards like appreciation and recognition plays a vital role in motivating employee and increasing his performance. Andrew (2004) concludes that commitment of employees is based on rewards and recognition.


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