Employee Motivation

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Procedia Social and Behavioral Sciences 24 (2011) 1510–1520

7th International Strategic Management Conference

The Relationship between Reward Management System and Employee Performance with the Mediating Role of Motivation: A Quantitative Study on Global Banks Pınar Güngör
Okan University, Istanbul, 34722 Turkey

Abstract The primary goal of this study is to research the relationship between the reward management system applications and employee performance of bank employees on global banks in Istanbul. It also focuses on the role of motivation as an intervening factor. According to the literature review on the previous studies it is proven that organizations use reward systems and strategies to motivate their employees and to increase their performance. This study will have lots of contributions to the business world. Organizations may improve or change their reward systems to survive in today’s environment with the help of this study. They may renew their reward systems and put more efficient and effective ones. In this study, employee performance effectiveness is determined on reward systems. At the beginning of the study, there is a literature review and there are hypotheses concerning the effects of reward management system and motivation on employee performance. Secondly, theoretical framework is discussed through the effects of reward management system applications and motivation on employee performance. Finally hypotheses are tested using data from 116 bank employees in 12 global banks and research results or findings are analyzed. Keywords: Reward Management System, Employee Performance, Motivation, Global Bank

© 2011 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of 7th International Strategic © 2011 Published by Elsevier Ltd. Selection and/or peer-review under responsibility 7th International Management Conference Strategic Management Conference ∗

Corresponding author. Tel. + 90-216-677-1630

fax. +90-216-677-1647

Email address: pinar.akinci@okan.edu.tr

1. Introduction Globalization is a concept that encompasses change and competition. Organizations who want to survive in an intense competition and to develop themselves are required to produce different kinds of solutions. There are lots of external factors that triggered organizations to work harder. Especially in

1877–0428 © 2011 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of 7th International Strategic Management Conference doi:10.1016/j.sbspro.2011.09.029

Pınar Güngör / Procedia Social and Behavioral Sciences 24 (2011) 1510–1520

1511

global crises, businesses in terms of profitability and permanency should pay attention to change and development within their systems. Undoubtedly, the most important factor is human in organizations. One of the main management strategies of the organizations is to invest in employees. Organizations are seeking to develop, motivate and increase the performance of their employees in a variety of human resources applications. Therefore, the reward management system has been the most considerable practices of the human resource management system. Reward management system is a core function of human resource discipline and is a strategic partner with company managements. Besides, it has an important role on employee performance. [15] Barber and Bretz (2000) mentioned that reward management systems have major impact on organizations capability to catch, retain and motivate high potential employees and as a result getting the high levels of performance. [7] On the other hand, it is crucial to invest in employee development for enhancing the skills and abilities of employees and organization. Furthermore, social exchange theory shows that employees behave in positive ways when the organizations invest to them. [4] Organizational inducements are the factors for the motivation of the employees...
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