Impact of Rewards on Employee Motivation

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS A STUDY ON THE IMPACT OF REWARDS ON EMPLOYEE MOTIVATION IN THE TELECOMMUNICATION SECTOR OF PAKISTAN Farheen B. Zaidi 1, Zahra Abbas 2

JULY 2011

VOL 3, NO 3

Abstract A good reward system is necessary to motivate the employees of an organization. This study was conducted in order to investigate the impact of rewards on the motivational level of employees of telecommunication sector of Pakistan. The impact of three independent variables rewards, monetary rewards and non-monetary rewards on the dependent variable motivation was studied. Four dimensions of motivation, focus, determination, effort and satisfaction were considered for the development of theoretical framework. A total of 292 questionnaires were returned fully complete. The research study showed that there exists a strong positive relationship in rewards and motivation among the employees. It was concluded that monetary rewards have greater impact on motivation of employees than the non-monetary rewards. Significant differences in rewards offered to employees and motivation level were found in the analysis of comparison of means with respect to gender, age group, marital status, working duration in the organization and salary. Keywords— Focus, Determination, Monetary Rewards, Non-Monetary Rewards, Motivation, Rewards . INTRODUCTION "Motivation is the art of getting people to do what you want them to do because they want to do it." (Eisenhower) Rewards whether monetary or non-monetary can be used as significant tools for increasing the motivation of an employee. Rewards are a positive step towards the improvement of an employee’s performance as they boost his morale. Rewards help in increasing the frequency of an action performed by the employee of an organization, (Zigon, 1998). The desire or motivation is necessary for the performance of an activity. Kleinginna (1981) defined motivation as a internal response or condition that boosts the behavior of an individual in giving it a direction, it can also be said as a force or a desire that gives invigorates the behavior of a person who is goal oriented. (Hutti, 2001) Organization’s performance is dependent on the employees who work for it, so in order to get the better and quality output; rewards contribute a lot in this part, so it is essential for organization’s managers to make effective and attractive reward programs to motivate their employees, (Deeprose, 1994). The telecommunication sector of Pakistan has shown tremendous growth in recent years and it’s all because of using up to date technology and the adoption of competitive and innovative human resource practices. For having the competitive advantage for any business human resource is basic source to get it, (Brian E. Becker, 2006). 1

F.B. Zaidi, is with the Institute of Business & Information Technology, University of the Punjab, Lahore 54000 Pakistan 2 Zahra Abbas, is graduating student of Master in Business & Information Technology from Institute of Business & Information Technology, University of the Punjab, Lahore 54000 Pakistan COPY RIGHT © 2011 Institute of Interdisciplinary Business Research

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

JULY 2011

VOL 3, NO 3

The organizations in the telecommunication sector of Pakistan are the structures that provide their services supported by the human resources. The most important factor in the delivery of the best quality service is the motivation of the employees; on the individual level as well as on the group level. In today’s world of competition to deliver best service in order to satisfy customers it has become very difficult; in fact organizations take it as a challenge to motivate employees in order to get best output from them. The telecommunication sector of Pakistan plays a powerful role in its economy. Excellent professional services delivered by the...
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