Download the Applied Management Capstone Outline.docx file and review it to familiarize yourself with the required sections and format of the Capstone Project. As you go through the different sections of the project, think of an organization, industry, or topic that you will pursue in the Capstone Project. Review various courses in the program and identify theories and practices that will be pertinent in analyzing business environments, framing problems, developing solutions, and evaluating alternatives. Remember that the quality of your project is dependent on the breadth and depth of your analyses, research rigor, systematic thinking, attention to details, mastery of prior course concepts, and communication skills. Review the ‘Introduction’ section of the Applied Management Capstone Project as found in the Applied Management Capstone Outline.docx. The ‘Introduction’ section is where you will present important background information of your selected organization or industry, including its history, products and services, structure, competitors, and other pertinent facts. Prepare the Capstone Project Proposal Template (download and use the Capstone Project Proposal Template for this) by the third day of this workshop, in order to give your instructor an opportunity to approve or offer comments for your revision.




Compensation, reward and recognition program: A case of Walmart Inc.





Rewards are described as benefits that employees receive when they deliver desirable results. On the other hand, recognition is a formal or informal acknowledgment of an individual’s or team’s performance or behavior which is beyond expectation and supports organizational goals as well as values. Compensation as well as reward and recognition are important aspects of an organization since they are used to motivate or boost up the morale of employees to work towards the achievement of goals and objectives of an organization (Luthan, 2010).However, determination of compensation is a complex a challenging exercise that is required to be expressed to reduce the cost of production while still maintain highly qualified personnel or employees. If employees feel or perceive, that compensation is not satisfactory, or it is inadequate they may leave the company for another (Freedman, 1978).

Motivation of employees is a process that accounts for a person’s intensity, persistence as well as the direction in attaining the goals and objectives. Hence, intensity can be associated with how best an individual attempt while direction, is the way to which a certain task is performed. On the other hand, persistence is the measure of the period that an employee can maintain or keep up with effort. Workers ought to be motivated or encouraged so as to maintain and increase their efforts to boost productivity, increase the organization’s competitive advantage, improve customer services and avoid chances of liquidation (Baldoni, 2012).

It is the responsibility of the company to motivate its workers to ensure efficiency in production. Appreciation is an important human need. Workers may respond well to appreciations that are expressed through recognizing the good work that they have done. Therefore the employees of the company need to be recognized as part of the company. Recognition can be achieved by praising employees for good work done. As a result, they will feel satisfied with the job and will be motivated to work thus raising productivity.

On the other hand, employees can be motivated through rewards. Through the provision of rewards workers will focus on accomplishing the goals of the organization .Thus, rewards and recognition are building blocks or a company or an organization since when injected into a worker, they apply their maximum working capability. Rewards to be given will be in the form of gifts, promotion, allowances and others. These rewards coupled with good working environment will enhance productivity.

There is need for the organization to reform human resource management policies and create an effective compensation and rewarding system. This will be helpful when it comes to solving problems associated with employee dissatisfaction due to poor pay. However, before coming up with an effective rewarding system, a proper communication system need to be established to facilitate discussion with all the employees and determine their level of satisfaction and opinion regarding the operations of the organization. Afterward, a rewarding system should be established (Lotta Laakso , 2012). Some of the rewards and compensation that can be provided include.


  • Better salaries and allowances


The salaries provided by the company should be based on the minimum wage set by the government. The value of allowances and wages should match the existing market price for labor. Besides, there should be annual increase in salaries and wages. Factors that need to be considered before providing appropriate compensation might include factor such as knowledge in a specified field, experience, abilities, and skills among other factors. Cash and non-cash reward program (Kim & Ouimet, 2011).


  • Cash and non-cash reward program        


Provision of cash rewards to top performers and monthly department recognition events where employees get some time off work and also celebrate their victories. They also include the offering of non-cash gifts such as t-shirts, mugs, credit to buy from company’s store, flowers, chocolates, movie tickets, books and magazines among others. It is important to communicate the program to all the employees and make sure it has been delegated to all department employees, set goals aligned with the company mission which can help boost the production again.


  • Promotions


Employees who exhibit high performance rating should be promoted to higher positions. Herzberg argued that recognition is an important and true motivating factor. This is a form of reputational recognition. This form of motivation is associated with self-esteem needs as suggested by Abraham Maslow in his theory of Hierarchy of needs. No matter what function human being perform, they should be recognized. Therefore, leaders need to provide opportunities for employees to give their point of views concerning different issues that affect the organization during specific functions and organizational events so that they can feel recognized and appreciated. This will also enhance their professional growth.

Employees need to be provided with sufficient compensation regarding salaries and wages. Workers who are not provided with adequate compensation will not be motivated to work well. Thus, poor compensation is a demotivating factor. After careful analysis of the cost of production and consultations, a decision can be made to increase the salary of the workers to restore their confidence in a company. Moreover, a healthy working environment should be established by encouraging peace and unity between employees.



Baldoni, J., (2012). Motivation Secrets. Great Motivation Secrets of Great Leaders.

Lotta Laakso (2012). The impact of financial and non- financial rewards on employee

Motivation. Bachelor’s thesis of Turku University of Applied Sciences

Luthans, K. (2010); Recognition: A Powerful, but often Overlooked, Leadership Tool to

Improve Employee Performance, The Journal of Leadership Studies, Vol.7,     No.1, pp.32-39.

Freedman, S. M. (1978). Some determinants of compensation decisions. Academy of     Management Journal, 21(3), 397-409.

Kim, E. H., & Ouimet, P. (2011). Employee stock ownership plans: Employee compensation and     firm value. Available at SSRN 1823745.


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