CREATING EFFECTIVE ORGANIZATION (SECTION: 2)
“IMPACT OF REWARD SYSTEM ON EMPLOYEE MOTIVATION”
SUBMITTED TO: SIR RAZA NAQVI
SUBMITTED BY: (Group#6)
Shazia faiz (MM111119)
Zainab Hassan (MM111027)
Robeela qayyum (MM103070)
DATE: 22 JUNE 2011
“IMPACT OF REWARD SYSTEM ON EMPLOYEE MOTIVATION”
Shazia Faiz, Zainab Hassan
The purpose of the study was to investigate and analyze the impact of reward system on employee motivation and how well the current reward system was helping to generate employee motivation. Employees can be motivated on the job by many things such as intrinsic rewards (recognition, autonomy, responsibility, importance) and extrinsic rewards (pay, promotion, bonus, title). More specifically it aimed to find out which aspects of the reward system functions well, and which aspects could be further developed and improved in order to increase employee motivation. Subjects for the study consisted of one hundred employees of different commercial banks of Pakistan. Data for the study were gathered through questionnaire. The data collected was analyzed by using correlation and regression analysis. The results obtained from the analysis showed that there existed strong relationship between rewards and employee motivation in commercial banks of Pakistan. The research supports the assumption that a well developed and functional reward system can increase employee motivation. Key Words: Rewards, HRM, Motivation, Intrinsic rewards, Extrinsic rewards. Introduction
In this ever changing world of today as competition is very high, there is continuous change and development in organizations, especially for commercial banks the only possibility to survive profitably and retain employees successfully is motivation. Motivation is a ‘will to accomplish’. It comes from an opportunity to succeed and a person’s ability to avail that opportunity, motivated employees are enthusiastic, optimistic, creative and responsible. If employees are motivated they will assure organizational success. Beecher once said that ‘god made man to move forward by motives, he can’t go without them, like a boat without engine or a balloon without air’ (Helminger, 1997). Motivation doesn’t exist without any reason, it is natural system that you cannot expect rain without clouds, how could you expect motivation without any reason? Best answer to the question is rewards, it can be tangible and intangible, lead to employee motivation, rewards are the benefits and incentives that employee receives in response to the performance, can be intrinsic (recognition, autonomy, responsibility importance) and extrinsic (pay, promotion, bonus, title). Affiliation oriented employees do not value money only, but also to praise that they are able to acquire from their managers, the opportunity to take on important projects or tasks, and even leadership attention. To meet requirement of bank employees, management need to offer best mix of both. In the total reward system both rewards are considered valuable, which not only increases employee motivation and their commitment towards their organization but also strong their relationship with organization. It can meet individual as well as organizational needs effectively, on one hand it is a source for banks to attract and retain employees, on the other hand it motivates employees to contribute their best and have strong affiliation with organization. In this study focus was at reward system and employee motivation in banking sector. Research was conducted in Islamabad/Rawalpindi, different bank employees were surveyed through questionnaire to clearly examine reward policies and its affect on employee motivation. Research questions
1- What is the impact of current reward system to employee motivation? 2- Which reward system does the employee perceive the most motivating? 3- How can reward system be further developed?
Management theories as background...
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Gabriel “Venom” Wilson, BSc
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