The aim of this research paper is to study the impact of recognition on employee performance in a Sri Lankan software development company. In the modern business environment, employee performance is a critical factor in determining the stability and success of the organization. It is essential to address the performance-related challenges of the industry as there are historical examples of businesses becoming bankrupt due to underperforming employees. Recognition plays a vital role in maintaining the competitive performance nature of the employees. Hence, the relationship between recognition and employee performance is explored by providing perspectives from the software engineers of this company. A mixed method was used to conduct the action research, combining both quantitative and qualitative research questions. Seven software engineers actively participated in the study. The data collection was conducted through an online questionnaire where participants were presented with close-ended questions along with an open-ended question. Findings included perception of recognition and appreciation and alignment of rewards with performance. Recommendations include management reviewing the company’s performance rewards schemes semi-annually to identify the effectiveness of the rewards scheme to enhance performance. Future research can expand the study to multiple companies in a similar industry and in different countries would also provide a comprehensive analysis of the perceptions of employees of diverse cultures on recognition’s impact on employee job performance.
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