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The role organizational rewards on employees motivation
1. The role organizational rewards on employees motivation Page 1
Executive Summary
Motivation refers to forces within person that affect his or her direction, intensity, and
persistence of voluntary behavior Motivated employees are willing to exert a particular level of
effort (intensity) for a certain amount of time (persistence) toward a particular goal (direction).
Every organization wants to increase motivation of their employees to enhance their
productivity. For that purpose some organizations use rewards which includes various benefits
which are provided by employer these may be monetary or non monetary and some use other
tactics like job design practices to motivate employees. We are conducting this research to
enhance the academic knowledge in this topic Organizational Rewards and Employees
Motivation.
This study finds out the motivation level of different employees for benefits and rewards
received from their employers in Pakistan. Responses from users will be received through
Questionnaires, Interviews and Observation.
The scope of this research is that it will help organization’s management to learn the ways of
improving their services. It will tell them how they can motivate their employees and what the
shortcomings in their operations are. For that purpose we are supposed to explore banking
sector. Our study will be of exploratory nature. Exploratory study is necessary when some facts
are known, but more information is needed for developing a viable theoretical framework.
Exploratory studies are important for obtaining a good grasp of the phenomenon of interest
and advancing knowledge through subsequent theory building and hypothesis testing.
Qualitative studies where data reveal some pattern regarding the phenomenon of interest,
theories are developed and hypothesis formulated for subsequent testing.
2. The role organizational rewards on employees motivation Page 2
Table of contents
Executive Summary................................................................................................ 1
Introduction........................................................................................................... 3
Literature Review................................................................................................... 4
Methodology ....................................................................................................... 11
Research Design................................................................................................... 11
Data Collection and Procedures........................................................................... 12
Data Analysis ....................................................................................................... 13
Findings of Study.................................................................................................. 29
Conclusion and suggestions................................................................................. 29
Appendix.............................................................................................................. 30
3. The role organizational rewards on employees motivation Page 3
Introduction
Motivation has been a difficult concept to properly define, because there “are many
philosophical orientations toward the nature of human beings and about what can be known
about people” (Pinder, 1998). Although Pinder (1998) provided a definition that nicely
accommodates the different theoretical perspectives that have been brought to bear in the
explanation of work motivation. Work motivation is a set of energetic forces that originates
both within as well as beyond an individual’s being, to initiate work-related motivation, and to
determine its direction, intensity, and duration.
So Motivation of employees means the forces within a person that affect his or her direction,
intensity, and persistence of voluntary hard work to achieve organizational goals . Intrinsic
motivation can be defined as an individual’s need to feel competency and pride in something
(McCullagh, 2005). Therefore, athletes who are intrinsically motivated participate in sports for
no apparent reward other than the satisfaction and pleasure they get from the activity itself.
While extrinsic motivation can be defined as performance of an activity in order to attain some
separate outcome (Ryan & Deci, 2000). Therefore, athletes that are extrinsically motivated
participate in sport for external causes such as rewards, positive feedback, recognition, etc,
rather than for the inherent satisfaction of performing the activity itself (intrinsic motivation).
Results indicate that individuals who are intrinsically motivated (and or have the two forms of
autonomous extrinsic motivation), compared to those who are controlled by others to perform
an activity (extrinsically motivated) have more interest, excitement, fun, and confidence, which
leads to enhanced performance, creativity, persistence, vigor, general well-being, and self-
esteem, among other benefits (Ryan & Deci, 2000). Therefore, ways to enhance intrinsic
motivation are of the utmost importance for athletes.
In the current scenario the competition in the business markets has been dramatically
increased due to which organizations want more competent and motivated employees. In the
past organizations have armies of supervisors to closely monitor employees’ motivation and
rewards system. Even if commitment and trust were low, employees performed their jobs with
the boss watching them closely but most companies thinned their supervisory ranks when they
flattered organizational structure to reduce costs. Supervisors now have many more
employees, so they can’t possibly keep a watchful eye out for laggards. Therefore now
organizations want more motivated employees.
Organizational rewards refer to benefits which organization provides to its employees it may be
monetary rewards or non monetary rewards. Monetary rewards include salary increases, profit
sharing, stock options, project bonuses and additional paid vacation time. Non monetary
rewards include employee autonomy, personal recognition, pleasant work environment,
flexible work hours training, new and challenging opportunities and also momentous trophies.
Monetary rewards fulfills the employee’s basic needs therefore they are important but non
4. The role organizational rewards on employees motivation Page 4
monetary rewards are also very important because they are more long lasting and less costly
for the organizations.
Research Question:
Introduction shows that now more motivated and satisfied employees are needed, now the
important concern is that how we can satisfy the employees? Various previous researches
shows that employees can be motivated as well as satisfied by giving those rewards, but only
rewards do not result in satisfaction, it may be due to several other factors. Therefore in this
study we will evaluate,
“What is the role of organizational rewards on the motivation level of employees?”
Research Objectives
The main objective of this research is to check how the organizational benefits and rewards
affect the performance and satisfaction of employees. Some specific objectives are as follows;
This study shows various rewards used by organizations.
This study evaluates the impact of reward system on employee motivation.
This study is conducted to identify most important organizational rewards.
This study helps to deliver the theories and models of motivation in the organization.
This study helps to demonstrate the motivational approaches existed in an organization.
Literature Review
Motivation
The term motivation is derived from the Latin word for movement (movere). Building on this
concept, Atkinson defines motivation as ‘the contemporary (immediate) influence on direction,
vigor and persistence of action’ (1964: 2).
Motivation is the “driving force within individuals that drive them physiologically and
psychologically to pursue one or more goals to fulfill their needs or expectations (Lam & Tang:
2003).
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While Campbell and Pritchard (1976), defines motivation as a dependent and independent set
of relationships which explains the amplitude, direction, and persistence of a behavior holding
constant the effects of skills, aptitude, and understanding of a task and the constraints
operating in the work environment.
Motivation is the desire to achieve beyond expectations, being driven by internal rather than
external factors, and to be involved in a continuous striving for improvement(Torrington,
Hall, Taylor & Atkinson, 2009, p. 276).
Motivation, in the context of work, is a psychological process that results from the interaction
between an employee and the work environment and it is characterized by a certain level of
willingness. The employees are willing to increase their work effort in order to obtain a specific
need or desire that they hold (Beardwell & Claydon, 2007, p. 491).
Managers can motivate employees through methods such as pay, promotion and praise.
Employees can also motivate themselves by seeking work where individual goals, needs and
wants will be achieved. These two types of motivation are called intrinsic and extrinsic
motivation and are more closely described as follows: (Armstrong 1988, p. 109).
Intrinsic motivation
Refers to the motivation that comes from inside an individual. The motivation is generated
trough satisfaction or pleasure that one gets in completing or even working on a task.
Factors that influence on intrinsic motivation include responsibility, freedom to act, scope to
use and develop skills and abilities, interesting work and opportunities for advancement. These
motivators, which are concerned with the quality of work life, tend to have a long-term effect
since they are inherent in individuals and not imposed from outside. (Armstrong 1988, p. 109-
110).
Extrinsic motivation
It is something that is done to or for people to motivate them. It arises from factors outside an
individual, such as money, grades, criticism or punishments. These rewards provide satisfaction
and pleasure that the task itself might not provide. An extrinsically motivated person might
work on a task even when they have little interest in it. This type of motivation usually has an
immediate and powerful effect, however it does not tend to last for long. (Armstrong 1988, p.
109-110)
Theories of Motivation:
Content Theories of Motivation are based on the needs of individuals. These theories try to
explain why the needs of individuals keep changing overtime and therefore focus on the
specific factors that motivate them. In general, these theories explain motivation as the product
of internal drives that encourage an individual to move towards the satisfaction of individual
needs. Major content theories of motivation are Maslow's hierarchy of needs, McClelland's
6. The role organizational rewards on employees motivation Page 6
learned needs theory, Alderfer's ERG theory and Herzberg's motivation-hygiene theory from
which the firstly mentioned will be closer discussed. (Beardwell & Claydon, 2007, p. 492).
Maslow's hierarchy of Needs:
It is a theory of personality that identifies five basic need categories:
Physiological needs:
These are basic human needs that are vital for survival. Examples of these needs are food,
water, air and comfort. The organization provides a financial reward by paying a salary and this
way helps to satisfy employees' physiological needs.
Safety needs:
These reflect a desire for security and stability. Examples of these needs include desire for
steady employment, health insurance and safe neighborhoods.
Social needs:
These are the desire for affiliation. They reflect the person' s desire for love, affection and
belonging.These needs can be fulfilled by the organization through sport teams, parties and
celebrations. The managers can help to satisfy employees' social needs by showing direct care
and concern for employees.
Esteem needs:
These include the need for things that reflect on personal worth, self-respect and social
recognition. Individuals need to attain a good reputation in a group or strive to increase their
status in the eyes of others are driven by these needs. The organization can help to satisfy
employees' esteem needs by showing workers that their work is appreciated and recognized.
Self-actualization needs:
These are the individuals desire for self-fulfillment and the realization of doing what he or
she has the potential of doing. Assigning tasks that challenge employees' minds and
encouraging their aptitude and training are examples on how the organization can help
fulfill self-actualization needs. (Beardwell & Claydon, 2007, p. 493).
The basic needs are arranged in a hierarchy where the most basic need emerges first and the
most sophisticated need last. In other words, the higher-order needs including belonging,
esteem, and self-actualization are not seen important until the lower-order needs which are
safety and physiological are satisfied. Managers should find out what motivates the employees
at each of the levels and develop a reward strategy accordingly. (Tosi, Rizzo & Carroll, 1994, p.
217 and Beardwell & Claydon, 2007, p. 493).
7. The role organizational rewards on employees motivation Page 7
The goal setting theory of Locke and Latham assumes that human behavior is governed by
goals and ambitions, which lead to the assumption that an employee with higher goals
will do better than an employee with lower goals. This theory states that there is a positive
relationship between goal precision, difficulty and performance. Hence, if an employee
knows precisely what he or she is expected to do, that individual will do better than someone
whose goals are vague. Adequate and timely feedback plays an essential role in the goal
setting theory sine it has a the following effect on the employees:(Beardwell & Claydon, 2007,
p. 498).
Increase feelings of achievement
Increase the sense of personal responsibility for the work
Reduce uncertainty
Refine performance
Rewards
The Word rewards state the benefits that workers receive from their jobs (Kalleberg
1977,Mottaz1988), and significant elements of employee job attitudes such as organizational
commitment and motivation(Steers and Porter 1991). In any organization, rewards play an
important role in building and sustaining the commitment among employees that ensures
a high standard of performance and workforce constancy (Wang 2004). According to the
individual–organization exchange theme, individuals enter organizations with specific set of
skills, desires and goals, and expect in return a decent working environment where they
can use their skills, satisfy desires, and attain their goals (Mottaz 1988). Mostly
organizations have increased the substantial improvement by entirely complying with the
organizational strategy by a well-balanced reward and recognition programs for employee.
Reward refers to all categories of financial benefits, tangible services and benefits that an
employee receives as part of employment relationship with the organization (Bratton and
Gold 1994). Lawler (2003) described that there are two aspects that decide how much a
reward is attractive, the quantity of reward which is provided and the weight age an
employee gives to a specific reward. Employees are certainly closer to their organizations and
perform better job, while they receive healthier reward and recognition in their
organizations. Rewards increase the level of efficiency and performance of the employees on
their jobs and in the result thereof increase the success of the organization. Generally
employees’ job description and job specification determines rewards to maintain fairness
among employees within an organization and competitive in the marketplace (Zaini et al. 2009).
8. The role organizational rewards on employees motivation Page 8
Organizational rewards means all the benefits i.e. financial and non-financial that an
employee receives through their employment relationship with an organization (Bratton
and Gold 1994,Malhotra et al. 2007).
According to the literature the rewards distinguishes into three main types that
individuals seek from their organization i.e. extrinsic, intrinsic and social rewards
(Williamson et al. 2009).
Extrinsic rewards
These are the physical benefits provided by the organization such as pay, bonus, fringe
benefits and career development opportunities.
Intrinsic rewards
These refer to the rewards that come from the content of the job itself, and encompass
motivational characteristics of the job such as autonomy, role clarity and training
(Hackman and Oldham 1976).
Social rewards
These arise from the interaction with other people on the job and may include having
supportive relationships with supervisor and co-workers.Ali and Ahmed (2009) established that
there is a substantial affiliation between reward and recognition, and similarly in employee
motivation and job satisfaction. Study exposed that if rewards and recognition offered to
employees then there would be a substantial modification in work motivation and satisfaction.
Explores past and present attitudes of employees concerning work-related motivational factors.
Understanding the factors that employees consider Motivating lends insight to the rewards to
which they more positively respond. Compares the results of four motivation surveys
conducted in 1946, 1980, 1986 and 1992. The comparisons reveal that employees’ motivational
preferences vary over time. In addition, the results of the 1992 survey indicate that the factors
that motivate today’s workers are more extrinsic than they used to be. Although employees
differ on how they rank these factors, they overwhelmingly selected “good wages” as the top
motivator. A good wage is an extrinsic reward with intrinsic potency. On the surface “good
wages” seem to be purely extrinsic. Yet, at a deeper level, monetary rewards communicate
what the company values and affect employees’ emotional and familial wellbeing(Carolyn
Wiley, (University of Tennessee at Chattanooga, Tennessee, USA)
A well designed and functional reward system is an efficient way to increase employee work
motivation. The appropriate type of reward is developed in accordance to the company's
reward philosophy, strategies and policy. However, it might be challenging to find the right way
to combine the company’s integrated policies and practices together with the employee’s
contribution, skill and competence. (Armstrong, 1999, p. 569-570).
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Theoretical Framework
Schematic Diagram for the Theoretical Framework
In this research we take the following variables;
Dependent Variable
Employees Motivation
Independent Variables
Bonuses and incentives
Handsome salary packages
Promotion opportunities
Working Environment
Explanation of the relationship between dependent and independent variable
The variance in the dependent variable, motivation of employees can be explained by the five
independent variables; Bonus and incentives, handsome salary package, promotion
opportunities, Flexible timings, Working Environment.
Handsome salary packages
Promotion opportunities
Working Environment
Working Environment
Bonuses and incentives
Employees Motivation
Dependent variableIndependent Variables
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If the employees are given the proper training in this way their motivation level towards
organizations can be increased. With highly motivated employees organizations can increase
their productivity. Different factors affect the motivation level of employees that includes
bonuses and incentives, handsome salary package, promotion opportunities, flexible timing,
and working environment.
Bonuses and incentives is a very important factor for motivating the employees within the
organization to get high productivity from them. In this way organizations can increase
motivation level of the employees.
Handsome salary packages also affect the motivation level of the individual. If someone
perceives the beneficial and fruitful salary package for himself then his motivation level be such
higher than others.
Promotion opportunities also have great impact on employees, so that promotion
opportunities should be exist in every organization. Because every employee wants to be grow
up in his working field and also status conscious. If the employees know that promotion
opportunities exist within the organization then they work with their best efforts which are
beneficial for the organization.
Working environment is also very important factor for the employees as well as good repute of
the organizations. If organizations provide friendly working environment to their employees
then employees will perform their duties with high moral and also will pay their full
concentration to their work.
HYPOTHESiS:
Based on the assumed casual relationship given in the conceptual model the following
hypothesis were developed for testing.
H1:- Higher the employee rewards lead to higher the Employee Motivation
H2:- Lower the employee rewards lead to lower the Employee Motivation
A reward can be defined as an external agent administered when a desired act or task is
performed, that has controlling and informational properties. While rewards are typically
delivered to increase the probability of a response, they can increase or decrease the
probability of an event occurring, depending on the saliency and direction of the controlling
and informational aspects of the reward. Saliency would refer to the intensity of either the
controlling or informational aspect of the reward. It is what stands out to you the most. While
direction would refer to whether the reward is perceived as increasing or decreasing the
athlete’s control; and whether the information is perceived as positive (increasing the athlete’s
competency) or negative (decreasing the athlete’s competency). Rewards can come in the form
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of verbal rewards (i.e. telling someone “good job!”), physical rewards (i.e. a pat on the back), or
tangible rewards (i.e. giving someone money, food, or a medallion), among others. There are 5
basic types of rewards discussed in the literature as follows (Deci, Koestner, & Ryan, 1999)
Methodology
Sampling Design:
Target population
Target population for this study is the employees of different organizations in different cities of
Punjab.
Characteristics of sample
Our sample includes males and females employees of different ages from different organizations.
They are working on different job status.
Sample Size
100 questionnaires were distributed to employees of different organizations.
Type of sample
Type of sampling we use is convenient sampling. We visited different organizations to get fulfill
our questionnaires.
Research Design
This research will be taken on the following approaches.
Purpose of Study
Our study will be of exploratory nature. Exploratory study is necessary when some facts are
known, but more information is needed for developing a viable theoretical framework.
Exploratory studies are important for obtaining a good grasp of the phenomenon of interest
and advancing knowledge through subsequent theory building and hypothesis testing.
Qualitative studies where data reveal some pattern regarding the phenomenon of interest,
theories are developed and hypothesis formulated for subsequent testing.
12. The role organizational rewards on employees motivation Page 12
Type of investigation
The type of our investigation is causal. When the researcher wants to check the cause and
effect relationship among variables then causal study is called for.
Study Settings
The study setting for our research is non-contrived. Because it has conducted in the natural
environment of organization where work proceeds normally.
Units of analysis
Because we’ve to study the behavior of the individuals on the workplace, so our unit of analysis
is individuals.
Time Horizon
The time horizon of the research is the cross – sectional because the data is gathered just once.
This kind of time horizon is also called one – shot studies.
Data Collection and Procedures
Our purpose of study is exploratory. So our first concern is with the primary data. Efforts are
made to find out the necessary supportive secondary data but the major point of emphasis is
on primary data.
Questionnaire
Questionnaire was considered as a sophisticated tool for the purpose of primary data
collection. Questionnaire was so designed that it can generate the required information.
Questionnaire was consisting of option choices as well as the simple question of which the
answers were given in hand writing by the respondents. Personally Administered Questionnaire
technique was used.
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Data Analysis
For data analysis we met personally to employees of different organizations for purpose of
questionnaires filling. We spent suffiecient amount of time on it.
To find the role of rewards on employees motivation we used the regression analysis and
applied Pearson correlation to examine the connection between variables. In descriptive
statistics, we calculated mean and standard deviation to check the inclination of our
respondents.
Frequencies
Statistics
Age
N
Valid 100
Missing 1
Minimum 1
Maximum 4
First question about age of respondents. Age is classified into four categories. Statistics is
showing that almost 56.4% of respondents are within category of 20-30 years.
Age
Frequency Percent Valid Percent Cumulative
Percent
Valid
Below 20 6 5.9 6.0 6.0
20-30 57 56.4 57.0 63.0
30-40 19 18.8 19.0 82.0
Above 40 18 17.8 18.0 100.0
Total 100 99.0 100.0
Missing System 1 1.0
Total 101 100.0
14. The role organizational rewards on employees motivation Page 14
Frequencies
Statistics
Gender
N
Valid 100
Missing 1
Minimum 1
Maximum 2
Second question is about gender. Gender is classified in two categories, male and female.
Statistics shows that there are more male respondents than female with percentage of 78.2.
Frequencies:
Statistics
TotalHS
N
Valid
100
Missing 1
Minimum
5
Maximum
20
Gender
Frequency Percent Valid Percent Cumulative
Percent
Valid
Male
79 78.2 79.0 79.0
Female 21 20.8 21.0 100.0
Total 100 99.0 100.0
Missing System
1 1.0
Total
101 100.0
15. The role organizational rewards on employees motivation Page 15
TotalBI
N
Valid
100
Missing 1
Minimum
12
Maximum
25
TotalPO
N
Valid 100
Missing 1
Minimum 7
Maximum
25
TotalWE
N
Valid 100
Missing 1
Minimum 9
Maximum 20
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TotalMotivation
N
Valid 100
Missing 1
Minimum 16
Maximum 25
Above descriptive statistics shows the frequencies of independent variables and dependent
variables . Results show that there is one missing value. Detailed results are available in
appendix section.
Graphs
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On inspecting the above shapes of the histogram we conclude that the scores are reasonably
normally distributed, with most scores occurring in the centre, tapering out towards the
extremes.
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The output from bar graphs is providing quick summary of the distribution of scores for the
groups. The graphs presented above suggests that males had higher motivation than females
on getting organizational rewards.
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Correlations
Descriptive Statistics
Mean Std. Deviation N
TotalHS 13.51 3.395 100
TotalBI 18.49 2.970 100
TotalPO 18.78 3.174 100
TotalWE 15.39 2.647 100
TotalMotivation 21.31 2.419 100
Correlations
TotalHS TotalBI TotalPO TotalWE TotalMotivatio
n
TotalHS
Pearson Correlation 1 .321**
-.009 .107 -.158
Sig. (2-tailed) .001 .928 .290 .115
N 100 100 100 100 100
TotalBI
Pearson Correlation .321**
1 .297**
.056 .031
Sig. (2-tailed) .001 .003 .577 .762
N 100 100 100 100 100
TotalPO
Pearson Correlation -.009 .297**
1 .119 .269**
Sig. (2-tailed) .928 .003 .240 .007
N 100 100 100 100 100
TotalWE
Pearson Correlation .107 .056 .119 1 .345**
Sig. (2-tailed) .290 .577 .240 .000
N 100 100 100 100 100
TotalMotivation
Pearson Correlation -.158 .031 .269**
.345**
1
Sig. (2-tailed) .115 .762 .007 .000
N 100 100 100 100 100
**. Correlation is significant at the 0.01 level (2-tailed).
Results show that there is negative relationship between motivation and handsome salary with
value of -.158. Bonuses and incentives positively motivate employees with value of .762.
Promotion opportunities less motivates employees with value of .007. Working environment is
correlating at .oo with motivation.
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Regression
Descriptive Statistics
Mean Std. Deviation N
TotalMotivation 21.31 2.419 100
TotalHS 13.51 3.395 100
TotalBI 18.49 2.970 100
TotalPO 18.78 3.174 100
TotalWE 15.39 2.647 100
Correlations
TotalMotivation TotalHS TotalBI TotalPO TotalWE
Pearson Correlation
TotalMotivation 1.000 -.158 .031 .269 .345
TotalHS -.158 1.000 .321 -.009 .107
TotalBI .031 .321 1.000 .297 .056
TotalPO .269 -.009 .297 1.000 .119
TotalWE .345 .107 .056 .119 1.000
Sig. (1-tailed)
TotalMotivation . .058 .381 .003 .000
TotalHS .058 . .001 .464 .145
TotalBI .381 .001 . .001 .289
TotalPO .003 .464 .001 . .120
TotalWE .000 .145 .289 .120 .
N
TotalMotivation 100 100 100 100 100
TotalHS 100 100 100 100 100
TotalBI 100 100 100 100 100
TotalPO 100 100 100 100 100
TotalWE 100 100 100 100 100
In Pearson correlation we interpret that there is strong relationship between motivation and
working environment with value of .345. Promotion opportunities less motivate employees
because we find a correlation of .269. Total bonus and incentives and motivation have a good
21. The role organizational rewards on employees motivation Page 21
correlation with value of .381. And same as promotion opportunities and handsome salary have
good relationship with a correlation of .381.
Model Summary
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
1 .457a
.209 .176 2.197
a. Predictors: (Constant), TotalWE, TotalBI, TotalPO, TotalHS
b. Dependent Variable: TotalMotivation
Collinearity Diagnosticsa
Model Dimension Eigenvalue Condition Index Variance Proportions
(Constant) TotalHS TotalBI TotalPO TotalWE
1
1 4.899 1.000 .00 .00 .00 .00 .00
2 .049 10.023 .01 .78 .00 .09 .04
3 .027 13.447 .00 .00 .14 .16 .65
4 .016 17.539 .00 .20 .67 .61 .01
5 .009 23.675 .99 .02 .19 .15 .31
a. Dependent Variable: TotalMotivation
ANOVAa
Model Sum of Squares Df Mean Square F Sig.
1
Regression 121.019 4 30.255 6.270 .000b
Residual 458.371 95 4.825
Total 579.390 99
a. Dependent Variable: TotalMotivation
b. Predictors: (Constant), TotalWE, TotalBI, TotalPO, TotalHS
22. The role organizational rewards on employees motivation Page 22
Coefficientsa
Model Unstandardized
Coefficients
Stand
ardize
d
Coeffi
cients
t Sig. 95.0% Confidence
Interval for B
Correlations Collinearity
Statistics
B Std.
Error
Beta Lower
Bound
Upper
Bound
Zero-
order
Parti
al
Part Toleran
ce
VIF
1
(Constant)
15.0
84
2.067 7.297 .000 10.981 19.188
TotalHS
-.139 .070 -.195 -
1.998
.049 -.277 -.001 -.158 -.201 -.182 .875 1.143
TotalBI
.006 .083 .007 .071 .944 -.158 .170 .031 .007 .006 .807 1.239
TotalPO
.172 .074 .225 2.326 .022 .025 .318 .269 .232 .212 .887 1.127
TotalWE
.310 .084 .339 3.666 .000 .142 .478 .345 .352 .335 .974 1.027
a. Dependent Variable: TotalMotivation
Statistics shows that there is no possibility of multicollinearity and relationship with other
variables are not high. Because our tolerance values are more than 0.1. these are .875, .807,
.887, 974.
VIF calculations are also showing good relation as all the values are below 10. This is a goog sign
.
23. The role organizational rewards on employees motivation Page 23
Charts
Normal Probability Plot of the regression standardised residuals are showing that there are no
major deviations from normality.
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Above scatter plot is showing that there are not much scatterness in values. There are only some
values that are falling outside . mostly are lying in our range because these are less than 3.3 and
above -3.3 and are mostly lying in centre.
Reliability
Handsome salary
Case Processing Summary
N %
Cases
Valid 100 99.0
Excludeda
1 1.0
Total 101 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's
Alpha
N of Items
.753 4
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance
if Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
You are getting handsome salary packages 10.25 6.169 .723 .592
The salary you are getting is commensurate with
the job you are performing
10.28 6.062 .728 .587
Good salary is main motivation for me 9.64 8.879 .246 .838
I am satisfied with my current salary 10.36 6.960 .543 .698
Table of case processing summary shows that the number of items are correct. Reliability
statistics is showing cronbach’s Alpha of .753 which is above 7. It can be considered reliable.
25. The role organizational rewards on employees motivation Page 25
Table of item total statistics shows that corrected total correlation is showing all values above
.3 except .246 which is also near 3 but it is showing that this item is measuring something
different from scale.
Bonuses and incentives
Case Processing Summary
N %
Cases
Valid 100 99.0
Excludeda
1 1.0
Total 101 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's
Alpha
N of Items
.467 5
Item-Total Statistics
Scale Mean if
Item Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
Bonuses improves your performance 14.50 7.162 .128 .487
All tasks to be accomplished are associated
with bonuses and incentives
15.08 6.761 .177 .460
In the organization bonus scheme is
satisfactory
15.22 5.870 .295 .376
Money motivates me to exert more effort in my
work
14.73 5.431 .423 .276
Attractive benefit packages will boost my
motivation to work hard
14.43 6.753 .228 .426
26. The role organizational rewards on employees motivation Page 26
Table of case processing summary shows that the number of items are correct. Reliability
statistics is showing cronbach’s Alpha of .467 which is less 7. It cannot be considered reliable.
Table of item total statistics shows that corrected total correlation is showing few values above
.3 . It is showing that this item is measuring something different from scale.
Promotion Opportunities
Case Processing Summary
N %
Cases
Valid 100 99.0
Excludeda
1 1.0
Total 101 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's
Alpha
N of Items
.493 5
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance
if Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
If current organization increase your job
responsibility with increase in pay scale, you will
accept it
14.52 8.959 .077 .533
Promotion opportunities motivate me to higher
performance
14.50 8.293 .214 .470
There are opportunies for promotion in the
organization
15.31 6.398 .373 .359
Promotion purely depends on performance 15.15 6.715 .296 .418
Promotion opportunities are equally distributed in
the organization
15.64 5.950 .371 .356
27. The role organizational rewards on employees motivation Page 27
Table of case processing summary shows that the number of items are correct. Reliability
statistics is showing cronbach’s Alpha of .493 which is less 7. It cannot be considered reliable.
Table of item total statistics shows that corrected total correlation is showing few values above
.3 . It is showing that this item is measuring something different from scale.
Working Environment
Case Processing Summary
N %
Cases
Valid 100 99.0
Excludeda
1 1.0
Total 101 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's
Alpha
N of Items
.466 4
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance
if Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
A positive working environment is important for
me to perform well on my job
11.36 4.839 .189 .471
I am satisfied with working environment in my
organization
11.69 3.832 .389 .256
You have the necessary tools, adequate
working space and appropriate equipment to
perform your duties affectively.
11.79 4.673 .262 .399
Working environment matters a lot in increasing
my performance
11.33 5.233 .236 .423
28. The role organizational rewards on employees motivation Page 28
Motivation
Case Processing Summary
N %
Cases
Valid 100 99.0
Excludeda
1 1.0
Total 101 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's
Alpha
N of Items
.507 5
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance
if Item Deleted
Corrected Item-
Total
Correlation
Cronbach's
Alpha if Item
Deleted
Motivation enhance my capabilities 17.06 4.178 .278 .451
Motivation should be encouraged in all
organizations
17.00 3.980 .340 .409
I feel motivated when colleagues appreciate me 16.95 4.270 .359 .408
The expectations of others from me make me feel
motivated
17.11 3.978 .297 .438
Incentive, promotion and working environment
motivate me
17.12 4.632 .137 .539
Table of case processing summary shows that the number of items are correct. Reliability
statistics is showing cronbach’s Alpha of .507 which is less 7. It cannot be considered reliable.
Table of item total statistics shows that corrected total correlation is showing few values above
.3 . It is showing that this item is measuring something different from scale.
29. The role organizational rewards on employees motivation Page 29
Findings of Study
Limitations
We have less time to investigate
Sample size was small
Some employees don’t cooperate with us
Employees were not easily accessible
Some Employees don’t provide accurate and satisfactory information
Some employees excuse to give their time
Our research result is based on limited area
Conclusion and suggestions
We have made a very extensive research and have come to this point after analyzing all the data
gathered through questionnaire that most of the employees of different organizations, which we
have surveyed, are de-motivated and dissatisfied with their job. The main reason behind their
motivation, which we have concluded is that employees perceive that their job is interesting but
the monetary and non-monetary rewards which they are receiving are not much sufficient
according to their needs. So therefore all the employees have answered that “Yes” they feel their
job is interesting and challenging but our rewards should be increased.
Therefore they have said that they are not thinking of ways to get out of work. Moreover they
also perceive that their job is matched with their personality therefore only a few employees have
given answer against it.
Motivation of employees can leads the organization towards success and achievement of vision,
so organizations should introduced such a reward system that can motivate their employees.
Salary packages should be increased according to the nature of job. Other factors such as
working conditions, and promotion opportunities also affects the motivation level of employees,
so banks should also consider these factors as well.
30. The role organizational rewards on employees motivation Page 30
Appendix
Questionnaire:
We are students of Bahauddin Zakariya University, MBA 3rd
Semester. Dear survey participant, we are
conducting a research about Role of organizational reward on employees motivation. Please complete
the questionnaire by sharing your honest opinion and experiences. All the information provided by you
will be confidential.
Gender: (1) Male (2) Female
Name:……………………………………………….
Age: (1) Below 20 (2) 20---30 (3) 30---40 (4) above 40
Organization Name:………………………………………………………………………………..
Please tick the relevant column’s showing scales from “Strongly disagree” to “Strongly agree”.
Statements Strongly
Disagree
Disagree
Neither
Agree
Nor
Disagree
Agree
Strongly
Agree
1 2 3 4 5
(Independent Variables)
Handsome Salary package
1 You are getting handsome salary
packages
2 The salary you are getting is
commensurate with the job you
are performing
3 Good salary is main motivation
for me
4 I am satisfied with my current
salary
Bonuses and Incentives
5 Bonuses improves your
performance
6 All tasks to be accomplished are
associated with bonuses and
incentives
7 In the organization bonus
scheme is satisfactory
31. The role organizational rewards on employees motivation Page 31
8 Money motivates me to exert
more effort in my work
9 Attractive benefit packages will
boost my motivation to work
hard
Promotion Opportunities
10 If current organization increase
your job responsibility with
increase in pay scale, you will
accept it
11 Promotion opportunities
motivate me to higher
performance
12 There are opportunies for
promotion in the organization
13 Promotion purely depends on
performance
14 Promotion opportunities are
equally distributed in the
organization
Working Environment
15 A positive working environment
is important for me to perform
well on my job
16 I am satisfied with working
environment in my organization
17 You have the necessary tools,
adequate working space and
appropriate equipment to
perform your duties affectively.
18 Working environment matters a
lot in increasing my performance
(Dependent variable)
Motivation
19 Motivation enhance my
capabilities
20 Motivation should be
encouraged in all organizations
21 I feel motivated when colleagues
appreciate me
22 The expectations of others from
me make me feel motivated
32. The role organizational rewards on employees motivation Page 32
23 Incentive, promotion and
working environment motivate
me
References
Primary Data
UBL Farid town, Sahiwal.
Standard Chartered Bank, Mission Chowk Sahiwal.
Faysal Bank, Sahiwal.
Punjab group of colleges chichawatni.
Punjab group of colleges khanewal.
Aims Technologies Faisalabad.
Govt Model High School Khanewal
Secondary Data
The Effects of External Rewards on Intrinsic Motivation - Practical Applications, Gabriel
“Venom” Wilson, BSc. (Hons), CSCS.www.abcbodybuilding.com
http://www.mona.uwi.edu/spsw/downloads/coursemat/PS66G/2005-
2006/sem2/meyer_becker_vandenberghe_2004_motivation_and_employee_commi.pdf
Employee Commitment and Motivation: A Conceptual Analysis and Integrative Model, John P.
Meyer, Thomas E. Becker, Christian Vandenberghe
Power rewards: Rewards that really motivate, Dean R. Spitzer
Organizational Behavior and Motivation: Psychological and sociological insights, William
Quisenberry
33. The role organizational rewards on employees motivation Page 33
Motivation (jimmy wales)
Developing a More Empirical1 Approach to Culture, Attitude and Motivation in Construction
Management Research: A critique and a Proposal, John Rooke Magnetized Target Fusion
A Proof-of-Principle Research Proposal, K. F. Schoenberg and R. E. Siemon