Relationship Between Rewards and Employee Motivation

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The study examined the influence of rewards (payment, promotion, recognition and benefits) on employee work motivation. Subjects for the study consisted of one hundred and sixty seven employees of commercial banks of Kohat, Pakistan. Data for the study were gathered through the administration of questionnaire. The data collected was subjected to appropriate 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. 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 . On the basis of these findings implications of the findings for future study were highlighted. Keywords: Rewards, Employee motivation-performance, Commercial banks, Human resource.


It is important for the top management to develop strong relationship between the organization and employees to fulfill the continuous changing needs of both parties. Organizations expect employees to follow the rules and regulations, work according to the standards set for them, and the employees expect good working conditions, fair pay, fair treatment, secure career, power and involvement in decisions. These expectations of both parties vary from organization to organization. For organizations to address these expectations an understanding of employees’ motivation is required Beer, (1984).

Commercial banks are physical structures supported by human resources that enable the delivery of service. The most important thing in the delivery of quality service is the individual motivation of all employees. With the growth of the service industry the commercial banks now competes for quality service employees. Research finds that it is a challenge for management today to motivate employees to provide quality services as it has been observed that there is a tough competition among commercial banks in Pakistan to provide best services to satisfy their customers. The commercial banks are a significant part of the economy worldwide and its employees play a key role in delivering the services to its customers. Excellent services provided by employees can create positive and everlasting image in the eyes of banks’ customers.

The individual motivation of the commercial banks employee plays an important and a significant role in achieving high satisfaction among commercial banks customer. One of the human resource manager’s functions is related to ensuring employees’ workplace motivation.

Human resource management’s function is to assist the general manager or the top management in keeping the employees satisfied with their jobs. If employees are not satisfied, they will not perform to expected norms (Petcharak, 2004). Workplace dissatisfaction and poor performance may lead to high employee turnover in an organization particularly in less developed countries where little opportunities are available to people to join other organizations, but it may affect employee’s performance adversely. According to Deeprose (1994), effective reward system enhances employee motivation and increases employee productivity all of which contribute to improved organizational performance. Baron (1983) argues that there is a close relationship between motivation and job performance. Strategic success for the organization lies in focusing attention at all levels on key business activities, which can be achieved through effective performance management Nel, (2001).

The commercial banks in Pakistan are now realizing to revisit their benefits offering to staff which include reward program so that employee feel motivation and satisfaction to improve their performance to achieve organization goals. Therefore present...
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