Reward Systems - Motivating different generations. A case study of Volvo Car Corporation

Abstract

Background and research problem: In today’s society it becomes increasingly more common to find different generations working side-by-side. Each generation has its own characteristics and factors they are motivated by mainly based on experiences. Reward systems are often used to motivate employees to greater performance. We thought it to be interesting to study how managers from different generations perceive reward systems due to this area not being greatly explored in Sweden. Therefore, we consider this to be very interesting and worth to examine further. With this background our research question is as follows: Are managers motivated by a reward system and do generational differences exist concerning this? Purpose: The purpose of this thesis is to create a deeper understanding for whether managers are motivated by a reward system, and their thoughts and preferences concerning this. Furthermore we will also look at generational differences. Method: The thesis is based on a case study of Volvo Car Corporation in Göteborg. The empirical data is based on twenty interviews with managers at the company. The empirical data have been analyzed from a theoretical frame of reference collected in advance. Conclusion: Differences between the generations do exist, although they are not of enough importance to differentiate the reward system. Both generations consider salary to be the most important part of a reward system and non-monetary rewards to be of great importance. The variable parts of the reward system are not perceived as motivating as they are believed to be, although it is needed. Suggestions for further studies: There are several possible approaches towards reward systems. We have been studying generational differences but we also consider that other interesting aspects to study could be in what life stage you are, gender, Generation Y and also study managers at other companies.