Preview

Impact of Reward System on Employee Motivation

Best Essays
Open Document
Open Document
3833 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Impact of Reward System on Employee Motivation
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
Robeela Qayyum

Abstract
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


References: Rob H. Kamery (2004). Employee motivation as it relates to Effectiveness, efficiency, productivity and performance. Allied Academies International Conference, page 139-143. Hooi Lai Wan (2006). Employee Satisfaction: The Impact of Benefit and Reward Policies, page 1155-1170. Reena ali and M.Shakil Ahmed, 2009, The impact of reward and recognition programs on employee’s motivation and satisfaction: An empirical study International Review of Business Research Papers, Vol William C. Minnis (2004), Consultants’ Intrinsic Reward: A Qualitative Study Alexander k. Kocha and Julia Nafziger (2009), Self-rewards and personal motivation Kalimullah khan,(2010), Relationship between rewards and employee motivation in commercial banks of Pakistan. © Research Journal of Internatıonal Studıes - Issue 14 (May, 2010) Rob H Rizwan Danish and Ali usman(2010). Reward and recognition on job satisfaction and motivation: an empirical study from Pakistan Puwanenthiren Pratheepkanth(March 2011),”Reward System And Its Impact On Employee Motivation In Commercial Bank Of Sri Lanka Plc”,Global Journal of Management and Business Research, Volume 11 Issue 4 Version 1.0. Dr E C ,Str oÈ h(2001),Personal motivation strategies to stimulate employee to increase performance, Richard A Richard C. Becherer, Fred W. Morgan, Lawrence M. Richard(2001),Vol. 46, No. 4 (Autumn, 1982), pp. 125-135.The Job Characteristics of Industrial Salespersons: Relationship to Motivation and Satisfaction Gabriel “Venom” Wilson, BSc
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Ldr/531 Motivation Plan Paper
    • 1446 Words
    • 6 Pages

    Ldr/531 Motivation Plan Paper

    In business world, motivation for employees in an organization is one of the facts of how effectively and efficiently tasks are accomplished. Motivation is the process that accounts for an individual’s intensity, direction, and persistence of effort toward attaining a goal (Robbins and Judge, 2006). Every individual is different with different personality and background and it is very important for the management to understand what can motivate and satisfy each individual in the organization that can help their performance boost into a cohesive and effective workforce. Different kind and level of motivation can influence work performance and result in job satisfaction in their organization; it is commonly believed that the most satisfaction is directly tied to the money that the employees are receiving. Promotion is another big motivation for the employees which are also related to money. Other than money reward or promotion, Quast (2012) recommends five tips to management for motivating employees.…

    • 1446 Words
    • 6 Pages
    Better Essays
    Read More
  • Powerful Essays

    Relationship Between Rewards and Employee Motivation
    • 1955 Words
    • 8 Pages

    Relationship Between Rewards and Employee Motivation

    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.…

    • 1955 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Reward System for the Employees for Human Services Organization
    • 253 Words
    • 2 Pages

    Reward System for the Employees for Human Services Organization

    In any type of business reward systems offer employees the incentive to more effectively and efficiently perform. Whether the rewards are financial, material, recognition based, or just beneficial they are important in helping to motivate employees in performing better and going above and beyond the minimum requirements. There are nine major factors that motivate employees to perform better. These nine factors are: “Respect for employee as a person; good pay; opportunity to turn out quality work; the chance of being promotion; opportunity for self-development and improvement; feeling my job is important; being told by my boss when I do a good job; opportunity to do interesting work; and large amount of freedom on the job. When creating a reward system these factors should be considered. We will focus on implementing these factors in creating a rewards system for human service organizations.…

    • 253 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Motivational Theories
    • 1692 Words
    • 6 Pages

    Motivational Theories

    Employees help to achieve the company’s goals by performing assigned jobs. If the company has an integrated company-wide performance management system in place, employee performance is no longer a nebulous concept but rather a set of clearly defined expectations (goals) to be met by an employee in a given position. To determine the expectations, the company’s strategic goals are broken down in detail to the level of ordinary employees. Employees then seek motivation to meet the designated goals in which the company is able to help them by setting attainable conditions and measures. Hence, the performance of employees corresponds to how the work and rewards (both financial and non-financial) meet the employee’s needs. Motivation can also be negative or positive. At first glance it could seem, indeed, that financial motivation, i.e., financial rewards for employee’s performance, is the right driver of employee performance and that the higher the financial reward, the higher the work commitment and employee’s performance. Yet, the results of surveys and experiments have shown for years that this is not always the case. Financial motivation is meaningful to employees only to a certain extent; once the motivation reaches a certain amount, it no longer influences the employee. This is not a suggestion that companies should disregard the financial remuneration of employees. A well thought out and fair compensation system aligned with…

    • 1692 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    Employee Dissatisfaction on Reward System
    • 569 Words
    • 3 Pages

    Employee Dissatisfaction on Reward System

    Recently, the organization had to build reward system to adapt the new environment. Employee’s need the rewards as motivation to improve performance is different with others. Traditional reward system cannot perform the effective to improve the performance of employees such as merit pay or base pay.…

    • 569 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    A Positive Motivation Plan
    • 1187 Words
    • 5 Pages

    A Positive Motivation Plan

    Compensation is a very important aspect for rewarding increased performance but has a limited effect in increasing an employee’s motivation and satisfaction (Robbins & Judge, 2007). Rewarding employees…

    • 1187 Words
    • 5 Pages
    Better Essays
    Read More
  • Better Essays

    Designing A Reward System In The Workplace
    • 1715 Words
    • 7 Pages

    Designing A Reward System In The Workplace

    Designing a reward system in the workplace is a way for Employers to show their appreciation and gratitude to their employees. Although there are many different ways to implement a reward system there are many factors that contribute to a successful system. There are many steps and factors that should be considered by the employer in order to best satisfy the employee(s). For example, while many believe pay incentives are the only necessary reward system to ensure happiness in the workplace, there are many more options for us, as the employer, to express more sincere appreciation.…

    • 1715 Words
    • 7 Pages
    Better Essays
    Read More
  • Best Essays

    Coles' Human Resources Management Report
    • 3668 Words
    • 15 Pages

    Coles' Human Resources Management Report

    References: Armstrong, M, and Murlis, H, 2004, Reward Management: A Handbook of Remuneration Strategy and Practice. 5th ed. London: Kogan Page.…

    • 3668 Words
    • 15 Pages
    Best Essays
    Read More
  • Powerful Essays

    Motivation at Work: a Key Issue in Remuneration
    • 3761 Words
    • 16 Pages

    Motivation at Work: a Key Issue in Remuneration

    To be effective, remuneration systems should be based on sound understanding of the motivation of people at work. However, this has proved to be an extremely complex topic, and very often reward systems used by employers have been based on simplistic motivation theories and they have failed. In this article I describe the most significant contributions to the theory of motivation, leading up to a review of current understanding of this complex subject. This leads us into examining strategies for reward systems aimed at motivating better performance; and the scope for integrating reward systems into strategies for changing other human resource management systems.…

    • 3761 Words
    • 16 Pages
    Powerful Essays
    Read More
  • Good Essays

    reward system
    • 2548 Words
    • 8 Pages

    reward system

    Once of a manager’s most important tools is the ability to select rewards and time the rewards properly. Even if managers are not solely responsible for financial rewards, they can use a number of tools to increase the effectiveness of their organization. Reward systems can address several important managerial objectives as they relate to employee motivation. A solid reward system requires concerted attention in its development. The following sections provide a basis for a well-contructed reward system.…

    • 2548 Words
    • 8 Pages
    Good Essays
    Read More
  • Powerful Essays

    Apple’s motivation system
    • 1250 Words
    • 5 Pages

    Apple’s motivation system

    As we all know, employee motivation plays an important role in a company’s development. Then the question comes to be how to motivate employees? Namely, how a company could find a way to attract people to joint the company and to keep them performing to high levels. Reward system is one of the best answers. It is an important tool that managers can use to motivate employees in a desired way. And it involved in allocate of compensation and benefits to employees in exchange for their contribution to the organization.…

    • 1250 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    The Role of Employee Reward System
    • 8860 Words
    • 36 Pages

    The Role of Employee Reward System

    The study is set to investigate the role of employee reward system in an organization at MTRH. The objectives of the study are to examine various employee reward system used by MTRH, to establish the ways of managing employee reward system at MTRH, to determine how MTRH employee reward system has affected employees’ performance and to determine the challenges faced by MTRH in the management of its employee reward system.…

    • 8860 Words
    • 36 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Employee Motivation
    • 283 Words
    • 2 Pages

    Employee Motivation

    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.…

    • 283 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Job Evaluation
    • 2257 Words
    • 12 Pages

    Job Evaluation

    Develop an alternative reward system for bank’ employees and explain why it is superior to the proposed reward system…

    • 2257 Words
    • 12 Pages
    Better Essays
    Read More
  • Good Essays

    Research Proposal
    • 746 Words
    • 3 Pages

    Research Proposal

    In every organization, the productivity and performance of the employees are important to increase the effectiveness of the organization in the market. The performance of the employees in their tasks depends on the demanded responsibilities of the organization. However, according from the past research studies that focuses in the organization, the rewards and other incentives given to the employees can increase the productivity and effectiveness in the performance of the people.…

    • 746 Words
    • 3 Pages
    Good Essays
    Read More

Related Topics