Table of Contents

Chapter 1.........................................................................................................4
Introduction.....................................................................................................4
1.1 Background of the research....................................................................5
1.2 Rationale of the research........................................................................5
1.3 Importance of the study.........................................................................6
1.4 Aims of the research...............................................................................8
1.5 Research objectives................................................................................8
1.6 Motivation for choosing the research subject.........................................8
1.7 Structure of the research........................................................................9
1.8 Chapter Summary..................................................................................9
Chapter 2.......................................................................................................10
Literature review............................................................................................10
2.1 Introduction..........................................................................................11
2.2 Understanding motivation and financial incentives..............................11
2.3

Understanding

the

preferences

of

financial

incentives

among

employees..................................................................................................13
2.4 Effects of financial incentives in motivating employee behaviours......14
2.5 Understanding the employee demands................................................15
Importance of financial incentive and payments........................................15
2.6 Motivation of employees by financial incentives..................................16
2.7 Long term motivation and financial incentives.....................................18
2.8 Chapter summary.................................................................................20

Chapter 3.......................................................................................................21
Methodologies...............................................................................................21
3.1 Introduction..........................................................................................22
3.2 Research philosophy.............................................................................23
3.3 research approaches............................................................................25
3.4 Research strategy.................................................................................26
3.5 Research choice....................................................................................28
3.6 Data collection method........................................................................29
3.7 Data analysis method...........................................................................30
3.8 Research ethics....................................................................................30
3.9 Research limitations.............................................................................31
3.10 Research summary.............................................................................31
References.....................................................................................................32

Chapter 1
Introduction

1.1 Background of the research

The term of human resource management is applied by the managers of all companies in present
times. The purpose that it serves is to encourage employees to increase productivity. DeCenzo
and Robbins (2005) agreed that human resource managers take various methods into action to
encourage the workforce they have to deal with but in most of the cases, it remains unknown that
what type of encouragement does employee want. Employees get motivated the most by

financial incentives. It is needless to say how important human resource is for current contexts.
In the past, employees are thought to be only working part of the organization but the thinking
has changed so rapidly that managers falls into confusion what to do or not. The context of
financial motivation is now integrated with various approaches in the application of human
resource management widely, expressed by Ivancevich and Lee in 2002. This area has become a
significant part developing management strategies relating to human resource. The term financial
incentive is based not only on the needs but also the proper development planning so that it can
boost up the performance level. Employees are needed to be financially content in the work
environment beside their basics as well as to motivate them so that employee turnover ratio is
assumingly reduced. The proper implication of financial incentives makes sure of better
performance, better productivity and better satisfaction level in most of the times. Financial
incentives or motivational methods, in this manner, contributes in keeping workforce satisfied
with increasing performance level and help human resource managers ultimately the whole
organization to concentrate more on other sectors of business than remaining busy with
employee problems to solve. It creates enough strength for this term to be clarified for its
significance in organizations.

1.2 Rationale of the research

The reason behind choosing the term Financial Incentives as the subject of the research is the
growing importance and issues around it. It works as a technique of employee performance
enhancer. Every organization recruits human resource managers for the sake of the
organizational goal achievement (Marchington and Wilkinson, 2006). The context of British
American Tobacco is described in this research. But managers in this case face difficulties in
motivating people. Compensation is the return of employee performance for organization. Study
on employee behaviors shows that it is not only compensation or basic payment that keeps them
motivation financially as well as mentally. The one of the purpose of this research issue is to
clarify the importance of financial incentives from the other motivational methods and discuss an
effective implication of this term of BAT (British American Tobacco). One of the other rationales
behind the issue is the personal interest in human resource management. Human resource

managers seek to imply correct ways for motivating their workforce but conflicts create when the
financial incentives and social or emotional incentives are not clearly understood.
This study aims at what motivates employees most to perform swiftly within the work
environment and how employees react to each methods of motivation. To explore employee
behaviors toward financial incentives are the purpose of this writing.
Bryman and Bell (2011) expressed their thought that the evaluation of this subject is important
for organizations and for researcher as well to be clarified as this issue is becoming unavoidable
for every organization. So, the concurrent importance and significance of this topic is another
rationale behind this research.

1.3 Importance of the study

The main reason for choosing financial incentives as a technique of employee performance
improvement is its ongoing importance in the organizations. Ivancevich and Lee (2002)
described that managers find this method of motivation helpful in most of the cases when
conflict arises about satisfaction in employees mind. In general, financial incentives are
financial benefits offered to employees, customers and other parties to affect their behaviors
toward a particular fact or to motivate them toward the fact (Wilton, 2011). In organization,
financial incentives are offered rather provided to employees so that they can be motivated to
enhance their working abilities and performance as a follow through. The study definitively
carries a huge importance in several points of view. Some of the benefits are like:

Financial incentives are rewards in return for employee performance. People have a

strong feeling about this issue. It helps to satisfy the needs of employees. Needs, such as:
Security needs
Esteem needs
Self-actualization needs
It has been a subject of business legislation importantly now days. It covers the national

minimum wage, equal opportunities legislation and so many other acts relating to it.
The company offers a relevant and locomotive financial benefit attracts more effective
and suitable candidates in selection processes. People desire to work for the organization.
So, human resource managers and recruiters find it helpful to choose the best possible

employee options for the company among many willing people. People willing to work
for a company will definitely enter as motivated recruits and try to prove themselves
through better performance from the beginning. It also creates a positive impact on
employee training and motivation directly. In result, that organization enjoys much

reliable and skillful workforce that is needed to succeed.

Individual performance is so much affected by financial reward or motivations.
Employees seem to have a positive outlook on the current organization if they are
properly benefited according to their performance level. It also causes a competition
among the employees to prove they better by increasing individual performance and

productivity.
Productivity increasing is another importance for managers to imply financial rewards to

employees of any organization. Increased productivity

Satisfaction level
Achievement of organizational goals
Less turnover ratio
Competitive advantage

1.4 Aims of the research

The aim of this research is to establish the importance of the term financial incentives in
improving employee performance in the environmental context of British American Tobacco.

1.5 Research objectives

This research has been conducted based on several aspects that will serve as the objectives of this
research and the whole writing will shed light on these objectives from the managerial and
individual employees point of view. The objectives of this research are like:

To determine the preferred types of incentives of employees

To find out whether the employees are motivated by financial incentives
To get to know how they are motivated by financial incentives
To know what is needed for high performance in work place
To understand the long term needs of employees in work environment

1.6 Motivation for choosing the research subject

Basically the ongoing importance of motivation in increasing employee performance has made
the researcher to choose the subject. Financial incentives as a tool of employee and workforce
motivation are undoubtedly applied by the human resource managers of almost every company.
But this sector of organizations needs development on planning and implementing them. Current
organizational context motivates researcher to advance ahead with this subject. The proper
evaluation can make the action simpler than current positions. This research subject signifies
single certain research area which helps to research and analyze. Personal interest is another fact
to choose the research subject. Another reason to choose is the availability and access to
resourceful databases which decorates the research in successive manner. So, based on the
reasons behind, the operational research is proceeding further.

1.7 Structure of the research

This dissertation aims at answering the objectives of the research. This research has strategically
planned to help researcher. The research begins with chapter 1 which describes an introductory
overview of the research objectives, aims, rationale and reasons of the research. The second
chapter defines and elaborates the research objectives of the research topic which is financial
incentives as a technique of employee performance improvement according to the contexts of
British American Tobacco. The next chapter expresses the methodologies of data sourcing,
collection and analysis needed to complete the research. The processes used by the researcher are

described in this part. The fourth chapter is all about result analysis and discussion which carries
the most importance of this research work. Researcher then comments some recommendations to
the company from his point of view and leaves a conclusion at the end chapter.

1.8 Chapter Summary

The research background is the basis of discussion of the introductory first chapter. This chapter
has broadcasted a view of research accessories based on the context of BATs human resource
sectors and its motivational management. The research objectives and aims as well as rationale
and importance of the study are also displayed in this chapter with a view to clarify the research
issues. Meanwhile, researcher plans to describe the literature review of the subject of financial
incentives in the consequent chapter. It will define the issue clearly and describe the contextual
facts around it. An overview will be shown of what role the financial incentives play in
motivating employees in multinational companies like British American Tobacco.

Chapter 2
Literature review

2.1 Introduction
The second chapter describes about the literature review of the term Financial Incentives used
to improve employee performance in British American Tobacco. In this portion of dissertation,
researcher clarifies about financial incentives differing or relating to motivation. This chapter
also shows an over view of the research objectives including employee preferences of financial
incentives and effects of it on employee behaviours. Researcher summarizes how human
resource managers take initiatives to motivate employees implementing financial incentives in
action.

hPSeoEsfgycuritaNmndz-l
2.2 Understanding motivation and financial incentives

Financial incentives programs are mainly designed to inspire the employee to work with loyalty
and get the best performance from them. In other word the main purpose of financial incentives

are to motivate the employees. British American Tobacco (BAT) one of the biggest multinational

tobacco companies motivates their employees through meeting their needs by giving financial
incentives in different sector. They give financial incentives in different situation depending on
the situation.

Abraham Maslow described different kinds of need of human being in his motivation theory. He

outlined a hierarchy of needs starting from low level and after one meets the first need then he go
for the next one (1954). Organization like BAT also follows this hierarchy of needs to meet their
employees demands of financial incentives and motivate them for work.

Figure 1: Hierarchy of needs (Maslow, 1970)

The first needs of the employees are always basic needs like food, housing, rest etc. To meet this
kind of needs money is essential and employees can get the money by selling their service to the
organization. For their work they get salaries which help them to meet these kinds of basic needs.
After satisfying the lowest need the employee try to meet the next level of needs and money is
also the main factors here. Money can help them to reach the next level which includes the
security or esteem needs. So the organization and also the employee see money as the main
motivational factors for their work.
There are many ways in which financial incentives are used to motivate and influence employee
performance, expressed by Shrestha (1989), the human resource head of Siddhartha Bank
Limited. Some of the most frequently used ones include allowances for holidays, overtime and
lunch. Additionally, there are performance linked incentives, like salary increments and
revisions, which are usually given at the end of the financial year based on performance
appraisals.
The bonus and other kinds of commission are always helpful tools to get the efficient work from
the employees. There are lot of theories and writing which said that financial incentives or
motivation is overrated. Even in Maslows hierarchy theory he said that after a certain period
money cannot able to holding power over peoples performance. Another famous theory which is
presented by Herzberg known as Two Factor Theory (1968) state that salary is not a motivation
after all, rather achievements, responsibility and advancement in a job affect employee
performance more than wages.
Though these theories state otherwise but BAT founds that financial incentives are the most
helpful and it is very effective to inspire the workers for their work. So BAT always tries to
maintain a good amount of financial incentives for their employees in order to keep them
productive.

2.3 Understanding the preferences of financial incentives

among employees

Business organization can follow various ways to motivate their employees but the most
effective and efficient way to motivate the employees is financial incentives said by Northouse
(2006). Employees always like to get financial incentives and when they get it they dedicate
themselves to work and try to get more. BAT give their employees financial incentives
considering their performance, they follow performance incentives plan to properly give
incentives. Performance incentives plan is good for any kinds of organization. BAT creates
objectives for their employees and when they achieve the objectives they are rewarded
financially. Sometimes the company gives financial reward when their net profit is increased. A
good incentive plan must be directly related to a measurable performance beyond the norm.
Some theories are not agree with the fact is that financial incentives is the most useful tools for
motivation. Hezerberg believe pay system is motivating people and it is true that lack of enough
pay can demotivate people but he doesnt think that money is a positive motivator. Though the
real factor is that the employees are always like to get paid properly and get various financial
incentives. So to keep the employees satisfied BAT provides various incentives in different way.
They set several types for financial incentives and give them based on situation.
There are different types of financial incentives that an organization gives their employee to keep
them satisfied. Different types of financial incentives are:

Time-rate pay

Piece-rate pay

Commission

Performance-related pay

Bonuses

Shares and options

Fringe benefits

Pensions

BAT mainly gives these kinds of financial reward to their employees and motivated them for the
work and these helps them to improve the employees performance which increase the total
production of the company.

2.4 Effects of financial incentives in motivating employee

behaviours
In the present world the competition in business world are increasing day by day and
organization need to take various strategy to survive in the competition. Tyson (1995) said that
Market strategy is one of the most important factors to improve company performance. But
market strategy is not all, every company need to find the best way to motivate its employees to
get the best work for them. There are various way to motivate employees but the best and most
effective one is the financial incentives and BAT use this technique most to motivate this
employees.
The employee of any organization is motivated but both the internal and external factors.
Financial incentives are external factors and the main objectives of financial incentives are to
motivate the employees toward their work.
Bay Jordan state three primary objectives of the financial incentives and they are

Give employee the control over their income as the income of the employees depend

on their performance. So they can income more by improving their performance.

Create responsibility and liability toward work on employees mind
Encourage the employee to work hard by giving them the award for their work
performance.

A research done by Locke and Braver showed the effect of financial incentives on employee very
clearly. They offer employee to work on a special task and there are reward and punishment
depending on the result of the work. The checking the heart rate of the worker while they work
and they use Behavioral Inhibition/Activation System (BIS/BAS) for this. The result from this
experiment shows that the senility of workers is greatly related to the reward and it shows

positive effect of reward on employee heart acceleration. It proves that financial incentives can
produce a positive impact on employees mind and increase their performance.

2.5 Understanding the employee demands

This is very important to know the demand of the employees of the organization. What they
want, why they want it and by how much they want it. BAT is very careful about these factors.
They try to know their employees demand by arranging questioner interview time to time. It
helps them to know the needs and demand of the employees and they take steps to meet those
demands.
Importance of financial incentive and payments
Financial incentives or regular pay are always important factors to the employees in an
organization. There are various factors behind these.
People feel safe and powerful if they get paid enough and it helps them to meet their
basic needs (Wilton, 2011).
Business laws have very clear statement about paying the employees perfectly.
Attractive amount of pay and incentives helps organization to get the staff and keep them
productive.
There are always risks of losing the employees if the organization paid them timely.
The main factors for an employee to work are the pay and incentives he gets from the
organization.
A survey is run by a research organization which shows the tools and factors that are mostly used
by every organization to motivate their employees. They interview 58 participants from different
sectors. 11% of the respondents are from financial service, 29% are from industrial markets and
consumers, 43% respondents are from information technology (IT), communications and
entertainment and other 17% are infrastructure, government and healthcare.

The result of the survey shows that most of the respondents think that the factors which influence
most are the financial incentives. 31% of the total respondent are think that. 20.7% of the
respondents answered that showing recognition to the employees is the best way to motivate
them for work. 17.2% said that providing career development opportunities are the tools to
motivate the employees. 6.6% are think that employee benefits are the key way and other 13.8%
emphasize that seeking workers opinion is also very important to motivate them because when
the organization do that to take a decision it encourage the employee to think themselves as a
part of the organization and these positive thinking reflects on their work performance.

2.6 Motivation of employees by financial incentives

Incentives are an act or promise that the administration does for their employees (Ivancevich and
Lee, 2002). It is one kind of inspiration or stimuli for the employee to work hard and helps them
to achieve the goal. Sometimes incentives are given as extra money or in addition to the wages.
Financial incentives always help the organization to keep their employee satisfied and
productive. A recent research shows that the employee who get financial incentives are 33 times
more likely to done voluntary work for the organization by their own then the employee who
dont get financial incentives. BAT always motivate their employee by financial incentives and
they try to get several benefits from their employees. The main purpose behind the financial
incentives are

Get the better performance from the employees

Increase the productivity of the organization
Increase the interest toward work
To create the job satisfaction on the mind of employee through psychologically

satisfaction
Change the outlook of the employee toward work and shape it perfectly
Utilize the maximum capability of the employee and get the best performance from them
Relationship between Rewarding or Incentives and Performance
In the real world, it is very important to reward high performance levels because this motivates
and controls the performance (Horne and Wachowicz, 2008). The performance of any employee
in any organization is highly connected to the incentives or reward he gets. So BAT develops

their reward strategies which include the financial and non-financial incentives necessary to
inspire the employees for the work and also helps the organization to hold their skillful and
talented employees. The manager of any organization needs to have a clear knowledge about the
incentives which really motivate their employees. Most of the incentives are given in financial
forms like wages, bonus, commissions etc. though organization also need to give various nonfinancial incentives which are really important to satisfied the employees and these non-financial
incentives may differ from one employee to another.
Benefits of Highly Motivated Employee
Research has proven that highly motivated employees are more beneficial for the organization
and the main stimuli behind their motivation are various financial incentives. Highly motivated
employees are likely to Always attend in workplace and very few amount of absence
They perform better than other employees
Depending on the situation they work harder and sometimes they work extra time if the
organization demand it
They are very loyal to the organization
They are not switching the job frequently rather work in one organization for a very long
time

2.7 Long term motivation and financial incentives

British American Tobacco provides long term motivation to their employee so that they are loyal
to the company and dont think about switching the job. If the employees are not satisfied with
their job and if they dont get satisfactory amount of financial incentives then the job turnover
rate is increased in any company. So motivation is very important factor for any kind of business
organization.

BAT provides various types of financial incentives for their employees to motivate them for long
term. The types of financial incentives BAT gives are describe here:
Commissions: Baum (1993) stated that, Commission is a particular percentage that a salesman
gets on the total amount of his sales. Sometimes it is a fixed rate set for a particular work.
Commission is a great way to motivate the employees because it is one kind of reward and
people always want to be rewarded. Employee who gets commission sees a direct link between
their work and the pay they got so they try to improve their work to get more. Commission also
inspire motivation and create a sound competition.
Premium Pay: Premiums pay is a great way to attract the employee to work more and work
hard. Premium pay is like the wages that is given for the extra time work of the employee which
called overtime. Overtime rate is set by the main hourly wages rate. It is normally double time as
normal wages. Overtime inspired workers to spend more time on work and it is greatly motivated
the employees.
Stock: Stock is a great way for the employer who wants so offer financial reward for their
employees. It is reward the employee by giving them a special chance to buy a block of company
stock at a low priced than normal. They can sell that whenever they want or hold the stock as
long as they want. The owner of the stock also has the shareholder right and they can have some
particular advantages like voting for board members, receiving a copy of annual report.
Employees are greatly motivated when they get or have a stock of the company and work more
efficiently because they consider themselves as a part of the organization.
Price Rate System: In the price rate system employees are paid depending on the work that they
done on in the workplace. This is given on the amount produced by a worker. For example a
wood workers get his incentives on depending the number of tolls or furniture he created one day
or a mechanic get his price on the number of devices he repair one day. This is extra money
without his main wages. It is provide for incur age the employee to work more and efficiently.
This system is more appropriate where the work amount is countable.
Merit Pay: While bonus is given for one time based on performance merit pay is a permanent
pay raise of the employee depended on his performance. Organization uses their performance
appraisal system to know about the performance of the employees. If the performance of any

employee is at a satisfactory level then he is awarded a merit pay. For example- for the good
performance of any employee BAT gives a 2% to 15% increase in their wages depending on
individuals performance.
Bonus: Bonuses are the most common and traditional form of financial incentives. Bonus is
onetime payment that raises the total amount of payment. Bonus is given on special occasion or
for the good performance. For example- a group of people are assigned on a special project and
after completing the project they get a bonus amount. Sometimes bonus is given in special
occasion like Christmas. Bonuses are given based on salary. It is depend on the performance of
the employee and sometimes the total performance of the organization
Award: Award is a creative way to motivate the employees (Cambridge Personality Research,
2013). It is a way to motivate the employee through financial incentives but it cost less money
because it is not given regularly. After a certain period company give award to the employees
who achieve a big success or help the company in a special project. Award is not always directly
money related rather company can gives a certificate or a crest. But it motivated the employee
greatly because it proves that he work hard and after the reward he get recognition to the every
one of the company.
Team Bonus: Team work is very important for any organization. The environment of the
company is hampered if they the relation between the employees are not good. So organization is
given team bonus depending on the team work to encourage the team work to the organization
and it also helps to develop the relation between employees.
Profit Sharing: Profit sharing is the system where company shares a particular amount of their
total profit with their employees. It is a great way to motivate the employees because to get more
profit share employees are working hard to increase the company profit. This technique also
helps to develop a positive mentality of employees where they consider themselves not just an
employee of the organization rather a part of the organization.

2.8 Chapter summary

This chapter of literature review describes about the financial incentives from various point of
views. The purpose of this chapter is to focus the term according to the BATs context. The next

chapter describes about the methodologies of collecting, analyzing and evaluating data and
processed information for further research work.

Chapter 3
Methodologies

3.1 Introduction
Saunders et al (2007) described that to get benefit from the research in the best possible way is to
choose the proper methodologies. The selection and adoption of right methodologies helps
answering all the questions that are to be solved in the research. The main purpose behind
conducting a methodology is to collect information whether primary and secondary, data that are
necessary to analyze, evaluate and decide. Research works can be in various kinds and each

research type requires different methodologies. There is no single perfect way for all types of
research (McNiff and Whitehead, 2009). From that point of view, methodologies selection is a
vital part again choosing the right source and techniques reduces the complexities largely. In the
introductory part of this chapter a brief discussion about the definition of methodologies,
research philosophy, strategies and choices will be presented. This chapter also aims at providing
a clear understanding of data collection and analyzing methods that helps to come to a decision
will be showed. While, running the research work, difficulties and ethical issues faced will also
be broadcasted in brief manner.
However, researcher can avail any of various methodologies to get the research work done
swiftly (McNiff and Whitehead, 2009). In case of researching on financial incentives as a
motivational tool possess general and numerous data collection methods. Being a well known
company, British American Tobacco has a huge database of its own and so many publications on
this company. The methodology is put on careful significance because it also helps to process,
analyze and present data in a way that not only the business enjoys the benefit but also the other
parties want to know about BAT. Methodology can be various in kinds. Such as:

Qualitative
Quantitative
Correlation
Regression analysis.

It is described by Marhsall in 2008 before that selection of proper methodologies is important for
the author to conduct the research. Researcher needs to adopt such methodology or brunch of
methodologies that it can answer all probable questions about the research. The selected
technique should be amply eligible to effectively collect and present data in an easy manner for
the researcher. This vital pre-research work is called research design. A proper research design
allocates the researcher with a complete scenario of the research. Thus, researchers are able to
avoid complexities and preplan all the possible solutions to upcoming problems. A research
design consists of several processes. As like:

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Figure 2: Research Philosophy (Jha, 2008)

Describing every stages of research design is the purpose of this chapter and that provided in the
context of researching on financial incentives as a motivational technique of BAT.

3.2 Research philosophy

Research philosophy is the thinking, belief and attitude toward the ways of data collection,
presentation, analyzed and implemented, defined by Gill and Johnson (2004). Two different
concepts encompass the philosophies of research approaches. One is epistemology means what is
known to be true and another is doxology opposition to epistemology meaning what is believed
to be true.
Research philosophy reveals the nature of the research. Researchers should have a particular
philosophy toward the research subject. Background of the research also depends on researchers
philosophy. Research philosophy provides a clear idea of ways of conducting research.
According to Elliott (2001) there are usually two types of philosophies noticeable like:
1. Positivism Philosophy
2. Phenomenological Philosophy
Positivism Philosophy: It captures the idea that the researchers are free to observe. That means
independency to think and act. The positivism philosophy is a process of establishing
hypothetical tests from samples. Previous developed styles relating data collection, presentation,

and analysis may be repeated in this philosophy of research work. Writers find it comfortable
when the sample portion is huge in numbers. The positivism philosophy puts importance on
empirical data and scientific methods at the same time. It encourages human relationship by
testing the causes and results.
Phenomenological Philosophy: The phenomenological philosophy of research, on the contrary is
naturally subjective depending on the issues of research. Events and actions are taken into
consideration in this type. Unlike, positivism philosophy, this process induces a small number of
samples. It is deep investigation that requires in the phenomenological research process of the
researchers. A blend of both these methods can be used in this philosophy of research.
Researcher in this writing uses positivism philosophy due to the huge number of samples. It will
help the author to collect data relating samples experience and behaviors.

To conduct research on companies like BAT using a large sample base positivism

philosophy is suitable developing research design.

As this research requires descriptive data to properly research on this term, positivism

philosophy serves much better than phenomenological philosophy.

This philosophy provides researchers with proper and efficient data to conduct research

works.
This research philosophy helps the author to successfully rely on the collected data to
enrich the fact of financial incentives and motivational facts of British American
Tobacco.

3.3 research approaches

Researches are needed to be conducted and wholly operated through some genuine processes and
approaches (Kerzner, 2013). Research philosophy affects to determine the approaches to

research.

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Figure 3: Research Approaches (Eastham, Sharples and Ball, 2001)

There are two types of research approaches. They are:
1. Inductive research
2. Deductive research
Inductive research approaches: Inductive research focuses on the observation of different
theories and models by developing empirical generalization. According to Saunders et al, 2007
expressed that this approach does not allow the researcher to establish any hypothesis at the

DhlevTHysptObCmR/oajnfiicr
beginning of the research and before the completion of the dissertation it is impossible to
understand the nature if this approach.

Deductive research approaches: On the other hand, deductive approaches are flexible research
approach where researchers can formulate own theories or models by establishing suitable

hypothesis. The evaluation and analysis of those hypotheses can be improvised if needed. It
helps the researcher in this dissertation because its nature of focusing only particular points. For
obvious reasons, researcher chooses to adopt deductive research approach to conduct research
comfortably. The improvised approaches are like:

The reasons for choosing deductive approach this research are summarized as:

Flexibility
Modification
Developing and running models as own wish
Less procedural complexity

3.4 Research strategy

This chapter of methodologies aims at clearly following an appropriate research strategy by

which the dissertation can be successful in proving the truth of the statement. It is unnecessary to

describe how important to select a proper strategy to research on any subject is (Gill and
Johnson, 2004). There are several research strategies availably applied by the researchers. But to

shed light on the fact of financial incentives as a technique of employee performance

improvement, researcher select to adopt the survey strategy among the strategies shown in Figure
3. Survey method requires developing a questionnaire according to the needs. But the fact to

keep in mind is that the questions need to be relevant and eligible enough to answer the query of
the researchers. Researchers should develop the questionnaire in such manner so that people do
not get bored and exhausted and expected answers can be achieved easily.
To collect information, researcher has developed several questions for employees of BAT. The
questions are easily understandable and answerable as well. The participants as the sample of
research provide more relevant information than any other sources. Among the participants from
different sectors of BAT are questioned in the process.

Employees of Financial services 7% of participants

Employees of Consumer and industrial markets 29% of participants
Employees of Information technology (IT), communications and entertainment 38% of

participants
Employees of other sectors- 14% of participants
Experim
ental

Case
Study

S
u
r
v
e
y

Operational
Research

Action
Research

Modell
ing

Ethnogr
aphy

Figure 4: Research Strategies (Esper and Russell Crook, 2014)

Questionnaire provides ample data that helps the researcher to generate an idea of concurrent
human resource management of BAT though the intension was to find out the reactions and
attitudes of employees about financial incentives. The questionnaire was designed with issues
related to their contentment of financial motivation, motivational staffs of managers, and
motivational needs of them and so on. It shows the impact of financial incentives on employee
performance levels.

3.5 Research choice

Research choice is made depending on various aspects of research. The preferred methods are
chosen carefully so that it can fulfil almost all the necessities. There are two options open for
researchers to use.
D
Q
i
u
s
a
lc
n
i
t
p
it
lt
a
i
t
a
in
t
e
iv
d
e
v
e
I
In
q
n
u
q
iu
ir
y
r
y

Figure 5: Research Types, Source: (Farooqui, 2010)

Quantitative method of research allows the researcher to analyze through a calculative method.
But this research does not require quantitative research analysis. So, qualitative research method
is suitable most due to the descriptive nature of this research.

3.6 Data collection method

Any researchers cannot avoid the importance of data collection and data must be relevant, ample
and able to answer the purposes of the research (Cohen et al, 2007). Data collection is needed by
the researcher on this research to obtain the objectives and goals by answering questions and
solving faced problems. Data has been collected in this research through questionnaire survey
based on hypothesizes of researcher. Usually there are two types of data that are to be collected.
1. Primary data collection
2. Secondary data collection
Primary data collection: Primary data means raw data collected by researcher himself.
Researcher can avail primary data from various sources like:

Action Research

Case Studies

Ethnographic Research

Interview

Life Histories

Longitudinal Studies

Observation

Questionnaires

Secondary data collection: secondary data are available data sourced by other users. It can be
collected from:

Government Reports

Historical Data And Information

Letters

Mass Media Products

Official Statistics

Previous Research

Web Information

Research work is impossible without primary data otherwise it loses its individuality. But the
sources of secondary data help researcher to patronize the writing. As a source of secondary
information journals, articles, reports and business publications are used. So, researcher adopts
both ways to collect data to successfully achieve the research objectives in the context of BAT.

3.7 Data analysis method

After data being collected, the most vital task is to analysis collected data in a proper manner.
Kane (2001) insisted that fail to analyze data properly causes the whole task repeat which is
unexpected. As other parts an efficient and easy method of data analysis is necessary. Data can
be analyzed using several media and methods. As the researcher follows deductive research
method it is best to use excel to analyze data for this research. Most of the data collected from
survey are descriptive in nature. So, it does not require any special knowledge of data processing.
For the ease of research, Excel sheets are used to analyze collected data. It provides researcher
with proper explanation so that operational context is paved through.
3.8 Research ethics

Before conducting a research according to planning and developed models, research ethics
should come into account. Research ethics plays an affecting role in research contexts. The
research needs to maintain the ethical codes and obligations. Researcher ensures ethical issues
like:

Safety of the participant as primary concern

Informed consent from each participant
Confidentiality of the subject and participant appearance
Preplanning of adverse situations
Assuring clinical equipoise

Moreover, the research issue and significant actions relating the research had been checked by
the authorized supervisor to verify the compliance of activities of this dissertation with the
provided methods.

3.9 Research limitations

Limitations faced during the research are considerable as a vital and effective portion of the
research. Limitations are considerable because these can be used to solute problems and improve
performance. For creating the most practical part of the research operation seeks to imply with
this vital part of the analysis. However, time context was very much limited that investigation
couldnt be conducted in every part of the research.

3.10 Research summary

This chapter of methodologies has analyzed the methods of data collection, analysis and decision
making of this dissertation. This chapter has described research philosophy, approaches and
strategies as well as research choice. Data collection and analysis methods and last but not the
least research ethics and limitations are also described in this chapter in an elaborative manner.
The next chapter of result analysis and discussion focuses on how the collected data through
survey on the employees of BAT. The fourth chapter sheds light on evaluation of how researcher
has come into taking a decision about the research subject to prove the statement.

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