Impact of Reward System and Motivation on Business Management: A case study of Subway BUSINESS RESEARCH (HI 6008) Name of Student: Sachin Thapa Student ID: EMV 3615 HOLMES INSTITUTE  Review of literature Investigating rewards is mainly about managing the expectations and the required anticipation of the employees from their management in return for their performance and the employer’s prospect in return for the compensation and the potentiality of working and extending their skills. According to Kehoe and Wright (2013), the relationship that subsists within the limitations of the employment helps in building the prospect, preparatory from the rewards perspective, employee responsibility in offering extension and the employer adeptness. In arrival, employers provide their employees with the salary or wages. The management rationale of the system of reward existing within an organization is mainly for magnetizing and preserving the human resources that organizational firms require to achieve its intent. As per Lepper and Greene (2015), to hold on to the employee services and supporting a high stratum of performance, it is necessary to supplement their commitment level and the factor of motivation. The organization through this, aims to bring in a relationship among the objectives based on an individual when the focus would be on the management of rewards. Motivation has been highly considered as an important management issue. In an organization, a staff that is commonly aggravated can augment efficiency and services connected to customers. Organizations need implementing a culture that takes into account the collective loyalty and employee satisfaction existing within conjecture and support. As per the reports of National Association for Employee Recognition (NAER), managers and professionals exhibit the section of resources of human in underestimating the success of the appreciation programs in enhancing the motivation of employees for achieving the goals of business (Olafsen et al. 2015). Managers have been bewildered at the incapacity of their employees in reaching their true latent having obtained monetary benefits. Motivation and Reward: Motivation has often been measured as the spur causing people to proceed. At the workplace, motivation is considered as an incorporation of the facet in the environment of working leading to the hard work that is either positive or negative. It depends on the understanding of the people on things that plays the role of motivation and identifying the same would lead to attainment of personal as well as professional goals. On the other hand, organizations need to identify things that would assist in accomplishing the factor of motivation to the employees that would in turn take care of organizational efficiency (Ritz, Brewer and Neumann 2016). The organizational capacity is getting boosted up that is aiming to increase the production and make the company ready to compete at global stage. Organizations need to think of fresh strategies including the various compensation packages, enabling them to work smoothly across the globe. Scientific management creator, Taylor described that money is the main thing in motivating people. Self-interest is the factor motivating people and has been extreme in accepting the challenges of exploiting their income. As per the theory of Herzberg, money is stated to be the hygiene factor having the capacity of offering potential dissatisfier in pertinent amounts, but not as the probable satisfier or motivation in the optimistic manner (Engelmann and Pessoa 2014). Performance improves satisfaction through the intermediary reward outcome. For employee motivation that might turn them to perform better, it is necessary in offering incentives and other situational factors in ways of integrating at personal level with the organizational goals. Literature Review Scope Subway and the Challenge: SUBWAY is a company that is known for the hot and cold submarine sandwiches and the salads, the SUBWAY chain has accomplished significant growth in the recent years as one of the strong options to that of Quick Service Restaurants. SUBWAY has been thinking of a program that would reward their Sandwich artists for their outstanding service that has been pragmatic by the ‘mystery shopping program’ already situated. The franchisee structure in SUBWAY is such that there is no continuation of the data of employees to work with, and no accessibility on the number of staffs across the franchisee system. In SUBWAY there has been need of employee motivation along with the deficiency of challenging work atmosphere with no proper levels of communication, de-motivating the employees even more. Employees were not getting the required zeal and motivation to put their extra effort for performing better. In SUBWAY even the best of performances goes unnoticed and there is lack of any sort of recognition. Repetitive and boring work existed in SUBWAY and the employees were devoid of any sort of experience in working within a team. Another major issue that has been encountered by the SUBWAY employees is the lack of any sort of plan for career progression. There is absence of growth in the organization for which employees do not put in much effort to be rewarded. The way they contributed towards the organization did not fall in line with the remuneration scheme of the organization. Intrinsic Rewards: One of the key theorists, Fredrick Herzberg found intrinsic rewards playing a significant role than the financial rewards in shooting up the employee motivation (Pinder 2014). In the economy that is generally knowledgeable, the big asset is an employee proffering an organization is their shrewdness, capability of solving the issues and experience. Employees generally believe in intrinsic awards and that other compensatory benefits connected with jobs do not matter (Haider et al. 2015). Extrinsic Rewards: Extrinsic rewards are financial in character like an increase in the salary amount, receiving bonus for accomplishing the goal and objective or the paid off time. An extrinsic reward is usually directed towards employee performances in jobs, though it is not always essential for employers to think of rewarding their employees for completing their tasks (Arokiasamy et al. 2013). The scope of this present literature review is looking into the reward system’s impact on the organizational firms like the SUBWAY. There have been enough articles over the database that has dealt with the factors of motivation and the influence of reward system. This literature review would zero in on the probable opportunities that organizations have in enhancing the reward systems and the employee motivation. The literature review focused on the common factors, motivation, reward schemes and opportunities that lie within the organizations like SUBWAY. The literature reviews also focused on the intrinsic and extrinsic rewards that motivate employees in performing better. The literature scope searched took into account the journals, articles and evaluation reports on the subject matter. A small portion of the recent literature has been put under the scanner, focusing on SUBWAY, an organization that is devoid of motivation and proper reward system. 1.2 Literature Review Objectives: The literature review objectives in this research project would be including the following objectives: -To gain the background knowledge of the motivation and reward system in organizations -To unearth out the issues that exist within the company under discussion, ‘SUBWAY’. -To uncover various concepts related to motivation and rewards -To recognize the probable areas and the research hypothesis -To recognize the prospective resources for conducting the research on the impact of reward system on the motivation of employees in SUBWAY Comparative Analysis Rewards that are generally received by individuals are part of the understanding of inspiration. There should be existence of an effective reward system for retaining the highest performers’ employees where rewards should be according to the efficiency. A lot of work has been prepared on the existing relationship between the motivation of employees and the reward system. According to Baumann and Stieglitz (2014), for maximizing the organizational employee performance, it needs to make certain policies for formulating the reward system under the policies and processes that has the ability to increase satisfaction of employees and their motivation. This article suggested that an increase in the income of employees, money would be considered as less of a motivator. An effort of stimulating the creativity of employees, managers has been using the extrinsic rewards for motivating their employees. Empirical research has shown that extrinsic rewards assist in enhancing the creativity factor of employees, though equal importance should also be given to intrinsic rewards (Bullock, Stritch and Rainey 2015). Employee commitment is generally based on the recognition and rewards factor. Survival of organizations depends on the ways an organizational management is able to converse their programs of rewards and recognition to the employees and the clearness of such schemes to the employees. In another study that has been carried out the base of the research was on the Herzberg two-factor motivation theory that segregated the variables of jobs in two groups: motivators and hygiene factors. A sample of 690 subjects was taken in for validating the two-factor theory. In this article, as per Chuang, Jackson and Jiang (2016), it has been discovered that at the highest possible occupational level, “motivators” or the factors of intrinsic job were valued more, whereas in low level it is the “hygiene factors” or the extrinsic job factors. This article concluded the fact that an organization convinces both the intrinsic and extrinsic factors for getting the best out of workers. This paper would be dealing with the impact of reward system on the motivation of employees in the backdrop of SUBWAY. Several problems that have cropped up in the organization would be addressed. It needs to be kept in mind that reward systems are subjective in nature and the matter of reward system might vary from person to person. The article that has been evaluated is built on the question whether reward system has the ability to motivate employees, the reward systems that have been used and the ways that it can be made effective. It has been witnessed that organizations that makes the best use of reward system are better served than the ones that do not. The general belief is that employees exhibit more interest where there is existence of reward system. The selection of the proper reward system is also essential within an organization. Situations may be different and vary from company to company and so is their ways of motivating and paying employees. In each organization, there cannot be the use of the best possible reward system. However, every organization should be able to reflect on the type of reward system that they intend to use. The articles that have been reviewed for the purpose of focusing on the impact of reward system on motivation of employees are of standard quality. The authors have made use of clear and simple language for every reader to understand and the factor of motivation and different reward systems are being well linked. Most of the relevant articles have been searched that clearly defines the objective of the study and takes in the valuable motivational factors within an organization. All the research papers that have been taken in, have been either published in reputed sites like research gate and emerald insight. The paper that has been chosen for this particular review are from the books of professors and research scholars who have been exclusive in their study on the subject manner. It is well descriptive, easy to understand covering all the points that were required to complete the study. All the articles that have been dealt with for completing the literature review section of this particular research are from the last four years starting from 2013. For instance, the article, “A Study on the Impact of Rewards and Recognition on Employee Motivation” came out in the year 2013 whereas another, “Impact of Employee Motivation on Employee performance” cropped up in 2014. The idea has been to make use of the recent articles and not lay years back as lot has changed over the course of time which needs to be taken into consideration. All the articles that have been dealt with, are from the reliable and validate source like the Google scholar and the Holmes Institute Sources. Research gate is another validate source that has been considered for the articles that have been taken up for conducting the review on literature. Scholars and researchers have over the years been showing dependency on this sources and the validity of the same. 4.0 Research Gap and Contribution: Gaps in literature should always exist that might lead to scope for additional studies in such topics that has enough relevance. Reward system is like that carrot hanged in front of a horse to motivate him in working extra. This was not considered to be the collective review of all the feature of reward but those that can be stated as most pertinent to the organization in question. Not enough evidence based research is available that concerns with the failure or success of rewards that are generally teamed based taking in the cross functional and cross cultural teams. Moreover, the impact that reward has on motivation could have been more comprehensive in some of the articles. This is a hot topic as per organization is concerned as employees make up the integral part of the overall system. 5.0 Conclusion: The topic is based on the impact of reward system on the performance of employees and certain other important aspects that have been explored in the above parts. For establishment of the effective reward system and setting up of culture that works on regular improvement and effectiveness with proper support from the amalgamation of rewards at a particular time. It can be concluded that an efficient reward and recognition construction would offer the necessary means for getting the best out of the employees while calming a positive environment for work. The employees, who are highly motivated, are the ones who perform at the highest level. However, it can be stated that extrinsic rewards may corrode the intrinsic interest and only monetary benefits cannot motivate an employee to put in the extra efforts. It would be the combination of right rewards that needs to be targeted in the right possible individual or groups for improving the performance.  Reference: Arokiasamy, A.R.A., Tat, H.H. and Abdullah, A., 2013. The Effects of Reward System and Motivation on Job Satisfaction: Evidence from the Education Industry in Malaysia. World Applied Sciences Journal, 24(12), pp.1597-1604. Baumann, O. and Stieglitz, N., 2014. Rewarding value‐creating ideas in organizations: The power of low‐powered incentives. Strategic Management Journal, 35(3), pp.358-375. Bullock, J.B., Stritch, J.M. and Rainey, H.G., 2015. 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