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Motivational theories and positive reinforcement theories stress the importance of recognition programmes as a motivational tool which enhances employee's self-esteem and confidence. Recognition programmes are comprised of a combination of formal recognition schemes and informal recognition activity. This research focuses on a recognition programme which operates in a manufacturing and shared service multinational company, and asks if the current programmes should be overhauled. The research investigated the employee's views as to the motivational and commitment generating attributes of two current in-house formal recognition schemes and two formal schemes not in operation in the organisation. In addition, the study investigated the extent of informal recognition activity in the organisation and employee's perception of the motivational impact of these informal recognition techniques. The central hypothesis of this dissertation argued that employees would value informal recognition over formal recognition, as it is the recognition format which increases their intrinsic motivation and builds their self-esteem and confidence. The research did not concur with this hypothesis. Employees believed that a recognition programme that comprises both forms of employee recognition is the format that increases their motivation and enhances their self-esteem. The results also indicated that an employee's position in the organisation predisposes one's preference for different formats of employee recognition. Surprisingly the results also indicated that one's gender indicates a preference for the different employee recognition formats. The research concluded that the organisation should reinvest in its recognition programme and that further analysis is required in relation to the job characteristics and personal variables of employees in order to investigate the gender findings.
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