Impact of rewards on Employee Motivation

Group # 17

Fact Sheet

Group Members M.Bilal Kamran Karamat Ali Shafqat Mehmood

PAPER # 1
Reward System And Its Impact On Employee Motivation In Commercial Bank Of Sri Lanka Puwanenthiren Pratheepkanth

Global Journal of Management and Business Research Volume XI Issue IvvvvV Version I March 2011

OBJECTIVES OF THE RESEARCH To determine if there is a relationship between reward and employee motivation. To determine the impact of rewards on motivation. To determine which factors contribute to work motivation. To determine the impact of biographical variables on work motivation. HYPOTHESES H1:- Higher the employee rewards lead to higher the Employee Motivation H2:- Lower the employee rewards lead to lower the Employee Motivation

METHODOLOGY Data Sources Primary and secondary data are used for the present study. Primary data are collected through the questionnaire. Secondary data are collected from annual reports, journals, internet, books and etc.

VARIABLES

Independent Wages & salary Bonus Commission Status Promotion Opportunities to Completion Responsibility Meaning full work Work Kind Condition Dependent Higher performance consistency achieved. Co operation.

Statistical Techniques

samples, percentage analysis, correlation analysis, means analysis and diagrams.

Findings

H1:-Higher the employee rewards lead to higher the Employee Motivation On the basis of 80% Employees of this Bank have High Motivation; these hypotheses confirmed by effectively Hence it illustrate that when both intrinsic and extrinsic rewards provide, the Motivation of the employees of this Bank also slightly improved and vice versa. H2:- Lower the employee rewards lead to lower the Employee Motivation hypothesis is accepted, because there is a positive relationship found between the reward system and the employees motivation. That is when the employee reward system Decrease, Motivation also decrease through the performance consistency achieved, Cooperation, Willingness of responsibility, Challenging work, Growth in job.

PAPER # 2
The Relationship between Rewards and Employee Motivation in Commercial Banks of Pakistan

Kalim Ullah Khan Syed Umar Farooq Muahmmad Imran Ullah

Objective

This paper investigate the role played by rewards in the process of motivating employees. The study explored factors determining rewards and their impact on employee motivation and endeavors to influence the commercial banks for a consideration of a more systematic and structured approach to acknowledge employees efforts which would in turn flourish high performance culture in commercial banks of Pakistan. The study also attempted to examine the relationship between rewards and employee motivation and the effects of biographical variables on work motivation.

The four independent variables of reward included, payment promotion recognition benefits Dependent variable employee work motivation.

Methodology A quantitative methodology used for the study and questionnaire method used as the measuring instrument. population for the research obtained from commercial banks of Pakistan, the subjects selected for the present study were employees of commercial banks of Kohat consisted of commercial banks employees of all levels. A total of 200 questionnaires were distributed to respondents and a total of 167 employees completed the questionnaire. There were two main sections of questionnaire, included biographical questionnaire and the work motivation Questionnaire which comprises of items regarding four variables of rewards developed by De Beer (1987) and items regarding four dimensions of employee work motivation.

The Cronbach-Alpha reliability coefficients for the subsections of questionnaire are as follows: payment (r = 0.86), promotion (r = 0.84), Recognition (r = 0.90), and benefits (r = 0.84). The sign of a correlation coefficient ( or -) shows the direction of the relationship between 1.00 and +1.00. For the purposes of this study, the Pearson Product-Moment Correlation Coefficient used to determine Analysis of Variance (ANOVA) is a statistical technique used to analyze data from designs that whether there are significant differences in work motivation based on the biographical characteristics of the sample.

Findings
The results indicate that there is a statistical significant relationship between all of the independent variables with dependent variable employee work motivation , all the independent variables have a positive influence on employee work motivation and Result also showed that among four independent variable promotion was most important and more influential variable.

PAPER # 3
RELATIONSHIP BETWEEN REWARDS AND EMPLOYEE MOTIVATION IN COMMERCIAL BANKS OF PAKISTAN

By:- Kalimullah Khan

Objective The study examined the influence of rewards (payment, promotion, recognition and benefits) on employee work motivation.

Hypotheses
1)

There is no statistically significant relationship between reward (payment, promotion, benefits, and recognition) and employee motivation in commercial banks of Pakistan.

2) There are no statistically significant differences in effects of biographical variables (Gender, Marital status, qualification, age and experience) on employee work motivation in commercial banks of Pakistan.

Variables

Independent
Payment Promotion Recognition Benefits

Dependent
EMPLOYEE MOTIVATION

Methodology
The survey research design method used in this study. It involves using a questionnaire developed by de beer (1987) for the independent variables The statements for the dependent variable were adopted from TR Mitchell model of motivation

Reliability and validity :

The Cronbach-Alpha reliability coefficients for the subsections of the Work Motivation are as follows: Payment (r = 0.86), promotion (r = 0.84), recognition (r = 0.90), and benefits (r =0.84). Statistical analysis

using Pearson Product Moment Correlation Coefficient and Analysis of Variance, all the findings were tested at 0.01 and 0.05 level of significance.
ANOVA

Findings
Accept both Hypotheses The results obtained from the analysis showed that there existed strong relationship between rewards and employee motivation in commercial banks of Pakistan . The results also indicated that women experienced lower levels of motivation based on rewards they received .

PAPER # 4
The Impact Of Reward And Recognition Programs On Employees Motivation And Satisfaction: An Empirical Study

Reena Ali and M.Shakil Ahmed International Review of Business Research Papers Vol. 5 No. 4 June 2009 Pp.270-279

Objective

This study highlighted the impact of reward and recognition programs on employees motivation and satisfaction

Methodology

Data Collection Instrument For the study a quantitative methodology followed and a questionnaire used as the measuring instrument. The data gathering techniques used included a biographical questionnaire and the Work Satisfaction and Motivation Questionnaire as set out by De Beer (1987).

Reliability And Validity Of The Questionnaire

The Cronbach-Alpha reliability coefficients for the subsections of the Work Satisfaction and Motivation are as follows: Work content (r = 0.78), payment (r =0.86), promotion (r = 0.84), recognition (r = 0.90), working conditions (r = 0.77), benefits (r = 0.84), my leader/supervisor (r = 0.72), general (r = 0.75). Variables Independent Work Content Payment Promotion Recognition Working Conditions Benefits Personal Leader/Supervisor Dependent Employees Motivation And Satisfaction

Procedure and Statistical Methods 80 questionnaires were distributed among the employees out of whom 65 were responded appropriately giving an 85% response which is acceptable to make this study rigorous and generalizable. The obtained data is analyzed through Statistical Package for Social Sciences (SPSS) version 16. The statistical methods involved those of descriptive (mean and standard deviation) inferential statistics (Pearson Correlation) for the predictors of motivation and satisfaction of employees.

Conclusion
This

exploratory study suggests for the positive relationship between reward and satisfaction The study revealed that if rewards or recognition offered to employees were to be altered, then there would be a corresponding change in work motivation and satisfaction. The results of this study also indicated that employees were less motivated by rewards and recognition than some of the other dimensions of the Work Satisfaction and Motivation Questionnaire.

PAPER # 5 A study of the relationships between compensation package, work motivation and job satisfaction
JACQUES IGALENS PATRICE ROUSSEL Journal of Organizational Behavior J. Organiz. Behav. 20, 10031025 (1999)

Objective

Hypothesis

This study applied the theoretical framework based on expectancy and discrepancy theories to examine how the elements of total compensation might influence work motivation and job satisfaction. The principal dimensions of total compensation that give rise to distinct reactions among employees were examined.

Hypothesis I: The expectancy that leads to performance achievement positively influences work motivation. Hypothesis II: The expectancy that performance leads to the obtaining of outcomes in terms of total compensation positively influences work motivation. The total compensation outcomes are fixed pay, flexible pay, and benefits. Hypothesis III: The valence attached to each component of total compensation positively influences work motivation. The components concerned are fixed pay, flexible pay, and benefits.

Hypothesis IV: Satisfaction in relationship to each dimension of total compensation positively influences job satisfaction. The dimensions concerned are (1) internal equity of fixed pay, (2) external equity of fixed pay, (3) pay rises, (4) flexible pay and (5) benefits.

Methodology
The methodology that guided the empirical research followed the principles of Churchill's paradigm (1979). This paradigm proposes a procedure allowing the construction of precise measuring instruments for multiple scale or multi-item questionnaires. In an exploratory phase, the questionnaire was pre-tested on a sample to eliminate the items that challenged the reliability and construct validity of the scales. The statistical instruments used were Cronbach's alpha (1951) for the test of internal-consistency reliability, principal components analysis and Campbell and Fiske's multi trait multi method matrix (1959) for construct validity. For Cronbach's a coefficient, the norm of 0.70 set by Nunnally (1978) was used.

conclusions (1) under certain conditions, individualized compensation of exempt employees can be a factor of work motivation; (2) flexible pay of nonexempt employees neither motivates nor increases job satisfaction; (3) Benefits of exempt and nonexempt employees neither motivate nor increase job satisfaction.