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Impact of Rewards on Employee Motivation

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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
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