THE EFFECT OF REWARD ON EMPLOYEE PERFORMANCE

AND JOB SATISFATION AMONG STAFF IN A FASTFOOD

CHAIN

Title:

Employee performance and job satisfaction among staff in fast food chain.

Authors:
J. MONISHA

Abstract:

The purpose of this study is to study the level of job satisfaction and the level of

work performance among employees. Furthermore, this study also identifies the relationship between

these two variables. This study uses quantitative method using questionnaire. A total of 103 workers

involved as sample in this study. Researchers have used descriptive analysis and inferential analysis in

responding to research questions. The results showed that the level of job satisfaction was high.

Furthermore, the results of descriptive analysis also examine the level of job performance of staffs that

are at high level. Whereas, the result of Pearson correlation analysis to identify the relationship between

job satisfaction and job performance and the result shows that there is a close correlation between these

two variables with r value of 0.616. The implications of this study can be seen through employees where

they can identify the level of job performances they have. By recognizing the level of performance,
employees are able to further improve through appropriate action. In line with that, all parties need to

mobilize to increase the level of performance they have to ensure the success of an organization.

Employee performance recognition techniques are used extensively by every

organization to recognize employees, which motivates employees to put more efforts in attaining more

customer satisfactions in order to achieve organizational growth. Restaurants of contemporary epoch are

putting more time, money and efforts to satisfy their employees because restaurant owners and managers

know that external customers can never be satisfied until own internal employees are satisfied. In this

paper, various techniques of employee performance recognition, which includes awards, bonus/cash,

certificates of appreciations, praise in meetings, nominations for training and job redesign has been

interrogated and gauged to evaluate their possible impacts on the customer’s satisfaction. A sample of

200 restaurant managers and 4000 customers of restaurants were taken for the study from the variety of

restaurants of major cities of Pakistan, which includes Karachi, Hyderabad, Lahore, Multan, Islamabad,

Rawalpindi, Peshawar and Quetta. Personal survey method was used to acquire data and General Linear

Model was used to interrogate the relationship between various employee performance recognition

techniques and customer satisfaction. Results show that all outlined performance recognition techniques

have a positive relationship with the customer satisfactions which reflects that the employee performance

recognition techniques have a pivot and vital role in making customers satisfied.

Keywords:

Purpose of Recognition Techniques, Focus on Employee Satisfaction, Recognition

Techniques Examined, Study Sample, Methodology, Findings like customer satisfaction, customer

satisfaction and achieving organizational success, Job Satisfaction, Work Commitment, Job Performance
Introduction:

Nowadays, service industry is dominating the business world. In developing countries,

it is observed that the largest growing area of business is service industry. In the global organizations,

which encourages cross-culture management, the service industry is booming in the developing countries.

Accepted in European Journal of Social Sciences (EJSS), (2011) The restaurant business is one of the

service-oriented businesses, which is very popular in Pakistan. Chain of restaurants are not only the

primary source of favorite food in most of the cities of Pakistan but even many local chains of restaurants

with a very unique taste and at a low cost are competing with the international chains of restaurant. In

Pakistan, Restaurant industry is highly competitive in terms of quality of service as it has a significant

effect on the profitability and success of the restaurants.

As a starter of this paper, Restaurant is a setup where people go to eat, drink

and have related relaxing and entertaining moments, which is the sole-purpose of restaurant owners to

satisfy its customers. The groups of people, which are dealing with the customers, are known as the

internal customers (employees) and these internal customers should be satisfied in order to delight the

external customers, which ultimately increases the profit of the restaurant. Many restaurants are

expanding much of their earnings in satisfying internal customers (employees) by providing different

rewards that could be just a Thank-you Letter or formal award in annual function of organization. In

restaurants, the concept of internal customers is most suitable for front line staff because customer’s

satisfaction is largely depends on employees dealing with them. Hence, the aim of this study was to find

out that how employees are recognized in this form of service industry and how these employee

performance recognition techniques are related or associated with customer satisfaction in restaurant

industry of Pakistan.
Evolution in customer satisfaction:

Since many years, service quality and customer satisfaction have become a

major area of attention to researchers because it was found that both have the impacts on organization

performance and customer behavior. Service quality gives higher profitability while, service quality also

gives customer satisfaction and customer satisfaction is an element that spread positive word of mouth

(Söderlund, 1998). Various authors have confirmed and concluded that the profitability of an

organization is directly affected by the satisfactions of their customers (Anderson, Fornell & Lehmann,

1994; Yeung, Ging & Ennew, 2002; Luo & Homburg, 2007). Yeung, Ging and Ennew (2002) confirmed

that customers’ satisfaction produces customer loyalty that increases repurchase intentions which spread

positive word of mouth. Knutson (1988) found the various significant factors which really matter to

customer satisfaction and it include convenience of location, safety and security, prompt service, and

friendliness of employees. Barsky and Labagh (1992) are with the view that location and employee

attitude are the factors which can easily influence customers' satisfaction. While, Bolton and Drew (1991)

are convinced with the thought that customer satisfaction represents a sign of service quality which is

offered by the organization. 2.4 Proposition and Hypotheses Proposition: There is positive relationship

between employee performance recognition techniques.

Objective:

1. To Analyse the Growth of the Service Industry: Examine the expansion of the
service industry, with a particular focus on the restaurant sector, in developing
countries and assess the factors driving this growth.
2. To Evaluate the Competitive Dynamics in the Pakistani Restaurant Industry:
Investigate how local and international restaurant chains compete in Pakistan,
including an analysis of pricing strategies, unique offerings, and market positioning.
3. To Assess the Impact of Service Quality on Restaurant Success: Analyse how
the quality of service affects the profitability and success of restaurants in Pakistan,
including customer satisfaction and retention.
4. To Identify Key Service Quality Drivers: Identify and evaluate the key factors
that influence service quality in the restaurant industry, including employee
performance, customer service practices, and operational efficiency.
5. To Explore the Role of Cross-Cultural Management: Examine how cross-
cultural management practices within global restaurant chains impact their
performance and customer satisfaction in the context of Pakistan’s diverse dining
preferences.
6. To Provide Recommendations for Enhancing Service Quality: Develop
actionable recommendations for restaurant managers and owners to improve service
quality and maintain a competitive edge in the Pakistani market.
Enhancing Job Satisfaction

1. Work-Life Balance

Maintaining a healthy work-life balance is key to job satisfaction. The food industry can be

demanding, with long hours and high-pressure environments. Employees should strive to

establish boundaries and find time for personal interests and family.

2. Career Fulfillment

Job satisfaction often stems from feeling fulfilled in one’s role. Employees should seek positions

that align with their passions and strengths. For instance, a chef with a love for innovation might

find satisfaction in a role focused on creating new dishes or culinary experiences.

3. Recognition and Rewards

Recognition of hard work and achievements plays a significant role in job satisfaction. Employers

should establish systems for acknowledging and rewarding employees, whether through

performance bonuses, promotions, or public recognition.

4. Professional Growth Opportunities

Offering opportunities for professional growth is crucial for retaining talent. Employees are more

likely to stay with an employer who provides pathways for advancement and supports their career

development.

5. Positive Work Environment

 A supportive and inclusive work environment contributes significantly to job satisfaction.

Creating a culture of respect, teamwork, and open communication helps employees feel valued

and engaged.

6. Employee Well-being

Promoting physical and mental well-being is essential. Providing access to health resources, stress

management programs, and creating a positive workplace culture can enhance overall job

satisfaction.

Career Progression in the Food Industry

1. Diverse Career Paths

The food industry encompasses a wide array of roles, including chefs, food

scientists, nutritionists, food service managers, and supply chain experts. Each

career path offers unique opportunities and challenges:

 Culinary Arts: Chefs and cooks can start in entry-level positions and gradually

progress to roles such as sous chefs, executive chefs, or restaurant owners.

Specializing in different cuisines or techniques can further enhance career

prospects.

 Food Science: Food scientists and technologists work on developing new products,

improving food safety, and ensuring quality control. Career progression in this field
 often leads to roles like research and development managers or regulatory affairs

specialists.

 Nutrition and Dietetics: Nutritionists and dietitians help individuals make healthy

food choices. They can advance to roles in public health, corporate wellness

programs, or specialized clinical settings.

 Food Service Management: Managers oversee operations in restaurants, catering

companies, or food service departments in institutions. Career growth can lead to

regional or corporate management positions.

2. Skills Development and Continuing Education

To advance in the food industry, continuous skill development is essential.

Employees should seek opportunities for professional development through

workshops, certifications, and advanced degrees. For instance:

 Culinary certifications can open doors to higher-level positions and

specializations.

 Food safety certifications are crucial for roles in quality assurance

and regulatory compliance.

 Management training programs can prepare employees for

leadership roles and operational oversight.

 3. Networking and Industry Involvement

Building a strong professional network is vital for career advancement. Attending

industry conferences, joining professional organizations, and participating in

relevant online forums can provide valuable connections and insights into emerging

trends.

Benefits:

1. Enhanced Employee Performance

For Employees:

 Increased Motivation: Recognition techniques such as awards, bonuses, and praise

can significantly boost employee motivation, leading to improved performance.

 Improved Job Satisfaction: Employees who receive acknowledgment for their

efforts tend to experience higher job satisfaction, which positively influences their

performance levels.

For Employers:
 Better Work Output: Recognizing and rewarding employees can lead to enhanced

work output and efficiency, as employees are more likely to put in extra effort when

their contributions are valued.

2. Strengthened Customer Satisfaction

For Employees:

 Recognition Impact: Employees who are recognized and rewarded are more

motivated to deliver high-quality service, which directly impacts customer

satisfaction.

For Employers:

 Customer Loyalty: Satisfied employees provide better service, which translates

into higher customer satisfaction and loyalty, crucial for the success of any

restaurant or service-based business.

3. Improved Organizational Success

For Employees:
 Career Growth: Employees who perform well and are recognized for their efforts

may receive opportunities for career advancement, such as promotions or additional

responsibilities.

For Employers:

 Business Growth: Enhanced employee performance and customer satisfaction

contribute to overall business growth. Happy and efficient employees can drive

sales and improve the restaurant’s reputation.

4. Better Employee Retention

For Employees:

 Job Security: Recognition and rewards can lead to greater job satisfaction and

security, making employees feel more valued and secure in their positions.

For Employers:
 Reduced Turnover: Satisfied and recognized employees are less likely to leave the

organization, reducing turnover rates and the associated costs of recruitment and

training.

5. Enhanced Workplace Culture

For Employees:

 Positive Environment: Regular recognition fosters a positive work environment

where employees feel appreciated and respected, leading to a more collaborative

and supportive workplace.

For Employers:

 Team Cohesion: A culture of recognition can enhance team cohesion and morale,

leading to better teamwork and cooperation among staff members.

6. Data-Driven Decision Making

For Employees:

 Self-Improvement: Understanding the impact of recognition on performance can

help employees identify areas for improvement and take proactive steps to enhance

their work quality.

 For Employers:

 Strategic Planning: Insights from studies on performance recognition and

customer satisfaction allow employers to make data-driven decisions regarding

reward systems and employee management strategies.

7. Increased Organizational Efficiency

For Employees:

 Focused Efforts: Recognized employees are likely to focus their efforts on areas

that are valued by the organization, leading to more efficient and effective work

practices.

For Employers:

 Optimized Performance: Effective performance recognition techniques contribute

to a more efficient organization by aligning employee efforts with organizational

goals and customer expectations.

8. Positive Brand Image

For Employees:
  Pride in Work: Employees who are recognized and rewarded take pride in their

work, which enhances their overall work experience and personal satisfaction.

For Employers:

 Reputation Enhancement: A company known for valuing and recognizing its

employees builds a strong brand image, attracting top talent and creating a positive

perception in the industry.

Conclusion:

In the fast-food chain industry, understanding the interplay between

employee performance and job satisfaction is critical for organizational success. This

study reveals that high levels of job satisfaction are closely linked to elevated employee

performance. When employees feel satisfied with their roles, their motivation and

efficiency improve, leading to better overall job performance. Conversely, recognizing

and rewarding high performance contributes significantly to job satisfaction, creating a

positive feedback loop that benefits both employees and the organization.

Key Findings:
 1. High Job Satisfaction and Performance: Employees in the fast food chain

industry who experience high job satisfaction tend to exhibit higher levels of

performance. This correlation suggests that investing in employee satisfaction is

essential for optimizing performance outcomes.

2. Impact of Recognition: Effective recognition techniques, such as awards and

praise, enhance job satisfaction and performance. Employees who feel valued are

more likely to deliver exceptional service, which is crucial in the competitive fast

food sector.

3. Mutual Benefits: The mutual reinforcement of job satisfaction and performance

creates a win-win scenario. Satisfied employees are more productive, and high

performance further boosts satisfaction, leading to a more motivated and engaged

workforce.

4. Organizational Success: For fast food chains, fostering a work environment that

prioritizes both job satisfaction and performance is key to achieving operational

excellence. By focusing on these areas, organizations can enhance employee

morale, reduce turnover, and improve customer service.

In conclusion, fast food chains that invest in strategies to boost job satisfaction

and recognize high performance will likely see significant improvements in both
employee engagement and overall operational success. Creating a supportive and

rewarding work environment is not just beneficial for employees but is also a strategic

advantage that drives business.

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