Impact of Compensation and Reward System On the Performance of Mobile Firm Companies
The phone industry has experienced robust growth attributed to the innovative and competitive nature of the industry. The emergency of smartphones has seen an increase in global mobile sales over the past five years. The number exceeds the sales of the typical handset device by a large proportion. Such dynamism that is experienced in the industry is highly connected to the development of human capacity. Training and hiring knowledgeable employees in the ICT sectors have seen the mobile industry expand and innovate new products that meet the customers’ needs. The industry is well known for its competitive nature as each firm daily tries to outshine its rivals. For these reasons, individuals firm marketing strategies must be well-drafted to maximize its sale. One of the significant components of increasing the purchase and building a reputable brand is through investing in its employees through rewards compensation and promotion (Zhao et al., 609-629). Addressing this aspect in the industry not only does it increase sales but also provides a conducive environment for the creation and innovation of quality brands that improve the firm’s competitive edge.
Rewarding and compensating employees in the mobile phone industry is essential for firm performance, as improved relationships between people and their daily work performance are enriched. Failure to recognize employee’s effort results in the demoralization of employee’s motivation and, in the long, it might negatively impact the performance of the firm (Mabaso and Dlamini 83). The firm’s service delivery and brand building are associated with professional practices among the employee, which in most cases are gained through proper and regular training of the employees. Compensation and rewarding employees are the approaches of motivating employees as this improves their willingness to promote the firm and direct their efforts toward achieving the firm’s objectives. Considering the competitive nature of the mobile phone industry, it is essential to reward, compensate, and promote employees based on their performance.
This study aims to establish the impact of compensation and reward systems on mobile firm companies. Hence, the research question will address whether there is a relationship between compensation and the type of reward system and the company’s performance.
Research question: Is there a relationship between compensation, the type of reward system, and the company’s performance?
Hypothesis:
With the design of the research question the null and alternative hypothesis will be as follows;
Null hypothesis: There is no relationship between compensation, the type of reward, and the company’s performance.
Alternative Hypothesis: There is a relationship between compensation, the type of reward, and the company’s performance.
Data collected will be analyzed, and the results will guide the top-level management of the mobile firm industries on the best criteria of the human resource management approach to improve employee performance. The results will further identify gaps and recommend measures to enhance performance and relationships in the workplace. The findings will be vital in assisting the companies in selecting the best appraisal system for the employees. As a result, employees will get an opportunity to prove their worth, as awarding employees will be merit-based. With such strategies put on course, mobile firms’ productivity would be enhanced, and quality products that meet the customers’ needs would be produced.
Mobile phone firms will be able to emphasize the provision of incentives based on different departments using the collected data. With the best strategies put across, employees will be able to associate their job performance with the number of incentives they get from the firm. The approach will motivate the employees to work hard with the knowledge that their efforts will be rewarded. Consequently, the firm will increase its revenue and diversify its product in the market. Furthermore, model creation thorough analysis will help identify the underlying factors necessary for improving the management aspect of human resources. The model will be fundamental in rating the staff based on the sales made and ideas generated regarding mobile phone innovation.
Relevant quantitative data addressing the research question will be collected from different mobile firm companies. The companies will be categorized into three groups based on the type of compensation and reward system they use. The groups will entail companies that use skill-based compensation, competency-based compensation and time-based compensation. Organization performance will be assessed using data related to net income earned by the mobile firms belonging to the three different groups.Net income information will be derived from the financial statements of the firm. Comparison of net income for the three categories of mobile firms will be conducted and a conclusion made regarding the quality compensation system of mobile firms.
To capture the relevant data that will answer the research objectives requires collecting data collection (Muhammad, 202). Failure to adopt the right tools of data collection would negatively impact the unreliable results of decision-making. Hence, it is essential to assess the study’s objective and come up with the best data collection technique. There are various methods of data collection, including observation, checklists, questionnaires, interviews, and focus group discussions. The methods can further be grouped into primary or secondary method of data collection. The primary method of data collection would take self-administered questionnaires, checklist, and observations. The secondary data collection method entails collecting information on online platforms and other resources and materials containing the required information. Both methods can collect quantitative and qualitative types of data. The quantitative data would mostly be captured using questionnaires, while the qualitative data is mainly captured using interviews and focus group discussions. This study will adopt the secondary method of data collection from which information regarding net income will be obtained through the use of companies financial reports. Additionally, type of compensation and reward system (skilled-based compensation, competency-based compensation and time-based compensation) will be obtained through desk study research of the companies profiles.
Data analysis is the most crucial part of the research. The decision to choose the right statistical test is critical in ensuring the desired outcomes are generated. There several analytical techniques that are applied in research such correlation analysis, One Way Analysis of variance, T-test, Regression analysis, etc. (Opoku et al., 32-49). Each analysis technique uses different types of data sets; hence, it is vital to consider the variables in the data set. This research will adopt both descriptive and inferential statistics. Descriptive statistics provide a summary analysis of the data set—statistics such as mean, median, mode, and standard deviation of net income of mobile firms. Information related to the type of mobile phone firms (skilled-based compensation, competency-based compensation and time-based compensation) will be analyzed through the descriptive statistics.
On the other hand, provide an advanced analysis that helps the researcher infer the population using a sample. The methods under inferential statistics include regression analysis, correlation analysis-test, and One-Way Analysis of variance. The research will adopt a One-Way Analysis of Variance to answer the research question.
One-way Analysis of Variance is a statistical technique that is used to establish a difference in mean between groups. The methods require the use of one continuous variable and one categorical variable with more than two levels. The continuous variable is the dependent variable, while the categorical variable is the independent variable. The techniques compute the F-statistics that is used the significance of the data.
As the study seek to establish the impact of compensation and reward system on the performance of mobile firm companies, it is vital to adopt a One-way Analysis of variance. The technique will measure whether there exists a difference in net income between the three categories of mobile phone companies. The dependent variable, in this case, is the net income of the mobile phone companies. In contrast, the independent variable will be the categories of mobile phone companies (skilled-based compensation, competency-based compensation and time-based compensation). This technique would be essential in comparing companies’ best strategies and recommend firms to adopt the working methods.
However, the adoption of those techniques requires conducting a diagnostic test of the dependent variable. The test involves checking if the data follows a normal distribution. Checking normality is vital in ensuring that the method adopted for the Analysis is the right one. One approach of checking normality would be through the generation of normality plots, such as histograms, which show the dependent variable’s distribution. For this study, a diagnostic test for the financial performance of the firms would be conducted. The examination would greatly help in determining whether to use a parametric or non-parametric test of Analysis. Assuming the data is not normal, the Analysis would use an alternative for Analysis of variance, which would be the Kruskal-Wallis one-way ANOVA (Kloke, and McKean,126). Alternatively, the data could be transformed to make normal and hence use the parametric method of Analysis.
Works Cited
Kloke, John, and Joseph McKean. Nonparametric Statistical Methods Using R. 2014, p. 126.
Mabaso, C. M., and B. I. Dlamini. “Impact of compensation and benefits on job satisfaction.”
Research Journal of Business Management 11.2 (2017): 80-90. Web.
<10.3923/rjbm.2017.80.90>.
Muhammad, Syed. Methods of Data Collection. Book Zone Publication, 2016, p. 202, Accessed
11 June 2020.
Opoku, Alex et al. Choosing an Appropriate Research Methodology
and Method. Routledge, 2020, pp. 32-49; Accessed 11 June 2020.
Sen, Ashish K, and Muni S Srivastava. Regression Analysis. Springer Berlin / Heidelberg, 2013,
- 1.
Zhao, Yongliang, et al. “Salesperson Human Capital Investment and Heterogeneous Export
Enterprises Performance”. Journal of Business Economics and Management, vol 19, no. 4,
2018, pp. 609-629. Vilnius Gediminas Technical University, doi:10.3846/jbem.2018.6267.