"Motivation is the art of getting people to do what you want them to do because they want to do it."
Like a little kid being given a chocolate on standing first in his class or a big hug for doing something good like helping someone, or cleaning the place after playing, in the similar way rewards whether monetary or non-monetary can be significant tools for the motivation of employee and a positive step towards the improvement of his performance an boosting his morale. Rewards are something that helps in increasing the frequency of an action performed by the employee of an organization, (Zigon, 1998).
It's a common observation that most of us don't perform our tasks completely, not because they are difficult but because of low interest or motivation to perform that task. The desire or motivation is necessary for the performance of an activity. Kleinginna and Kleinginna (1981a) has defined motivation as a the internal response or condition that boosts the behavior of an individual in giving it a direction, it can also be said as a force or a desire that gives invigorates the behavior of a person who is goal oriented, (Hutti, 2001).
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It was in the past when there was a permanent guarantee for the job and in return employees used to give the organization the loyalty, best output etc. since it's a dream now, as the guarantee of job is no more for employees, this indicates that rules of working in the organizations has changed and now the organization should understand that what are the motivational needs of the employees, (Harris, 1996).
A good and attractive reward program is necessary for the employees in order to motivate them otherwise the unmotivated employees will not perform their tasks properly and will ultimately affect the company in a negative way i.e. decrease in profitability, (Rebecca, Gatlin, 1997). Organization's performance is dependent on the employees who work for it, so in order to get the better and quality output; rewards contribute a lot in this part, so it is essential for organization's managers to make effective and attractive reward programs to motivate their employees, (Deeprose, 1994).
Gregory P. Smith, author of book 'Dynamic Ways to Reward, Energize & Motivate Your Teams', states in his book that rewarding and recognizing the work of the employees makes them happy, provide them job security and they contribute more towards the organization.
Rewards and motivation are the basis of virtuous spiral, in which both rewards and motivation support each other for their success. Employees can be motivated to give their best with the use right combination of reward system practices, and those employees who actually give the best out of them is because they are properly highly rewarded, shows that they are highly motivated, (Lawler III, 2003).
In Pakistan human resource departments are seen only in those organizations where technology is rigorously applicable or which are highly knowledge organizations. The telecommunication sector of Pakistan has shown tremendous growth in recent years and its all because of using up to date technology and the adoption of competitive and innovative human resource practices. For having the competitive advantage for any business human resource is basic source to get it, (Brian E. Becker, 2006).
The organizations in the telecommunication sector of Pakistan are the structures that provide their services supported by the human resources. The most important factor in the delivery of the best quality service is the motivation of the employees; on the individual level as well as on the group level. In today's world of competition to deliver best service in order to satisfy customers it has become very difficult; in fact organizations take it as a challenge to motivate employees in order to get best output from them. The telecommunication sector of Pakistan plays a powerful role in its economy. Excellent professional services delivered by the employees of the telecom sector of Pakistan can create an affirmative and endless image in the minds of their customers.
Several studies show that rewards have a huge impact on the job satisfaction and motivation of the employees. For top management it is the top most responsibility to develop a strong positive relationship between the organization and its employees in order to carry out the continuous needs of both i.e. organizations and the employees. Organizations want their employees to follow the organization's rules and regulations i.e. work according to the standards that are being set for them, and as a result of it employees want from the organization good working environment, good salary, good behavior, job security, delegation of authority. For organizations understanding to deal with these expectations of employees is required, (Beer, M., Spector, B., Lawrence, P.R., Mills, D.Q., & Walton, R.E. , 1984).
Always on Time
Marked to Standard
Nel reports that those employees that are motivated and are fully aware of the organization's goals, and know that organization will provide them benefits when they will achieve the goals, they will divert their all hard work and devotion towards those goals, (Roberts, 2005).
These days organizations understand the great gains derived by linking rewards whether monetary or non monetary to their business strategy, (Flynn, 1998). The telecommunication sector of Pakistan is offering several benefits and rewards to its employees; so that employees feel motivated and remain satisfied with their jobs and improve their performance in order to achieve organizational goals.
The basic objectives for carrying out this research are;
To measure the impact of rewards in the most fast growing sector of Pakistan i.e. Telecommunication sector Pakistan on the motivation of its employees.
To measure which type of reward i.e. monetary rewards or non monetary rewards cause more motivation among the employees of telecommunication sector of Pakistan.
To measure whether there are significant evidences of having different motivational levels on the basis of biographical variables or not.
To determine is there any difference or not in rewards that are being offered to employees on the basis of demographic variables.
The significance for carrying out this research is that whether the employees in the telecommunication sector of Pakistan are satisfied with their organizational reward system or not. And which reward type they appreciate the most whether the monetary rewards or the non monetary rewards.
REVIEW OF LITERATURE
Review of Literature
It was in the past when there was a permanent guarantee for the job and in return employees used to give the organization the loyalty, best output etc. since it's a dream now, this indicates that rules of working in the organizations has changed and now the organization should understand that what are the motivational needs of the employees, (Harris, 1996).
Employees are educated, highly skilled and enable to execute their duties in such a manner that they can achieve the goals of the organization, therefore, the management of organizations should consider its employees as the most valuable asset, and in order to get best and maximum from this valuable asset management should know that what is it that motivates the employees so much that they deliver their best to the organization, (Lawler III, 2003).
There are two main factors that reflect the importance of rewards in the eye of an employee of the organization, (Lawler III, 2003). These two factors are as follows;
Firstly, in how much quantity the reward is being given to an employee? Is it sufficient enough?
Secondly, how much is importance of that particular reward in the eyes of the employee that is being given to him.
If the employees of the organizations give importance or value to a particular type of the reward, organization will in return try to give it more, because a good management that follows a proper reward system will smell that this is thing that has potential to create motivation among the employees, (Lawler III, 2003).
In order to treating the employees of the organization right, rewarding them properly is one of the important components. Organization which is growing healthier provides its employees the opportunity to grow and prosper. In today's highly business competitive environment win-win relationship is important that forms the right treatment of employees by the organizations. Strategy of rewarding employees when performance is not good cannot prevail for long, hence rewarding for good performance encourages employees to continue their performance and improve their skills and knowledge day by day to contribute positively towards organization, (Lawler III, 2003).
For improved and better output from the employees rewards act as 'catalyst'. Rewards are part of the organization and management should pay special attention towards them; rewards should be quick, significant, related to performance, compatible with job measurement and irrevocable. Rewards should be given fairly, if there is some factor of unrealistic distribution of rewards like giving promotion of the favoritism basis, it will have a negative impact on the motivation of the rest of the employees, (Employee Rewards).
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A list of points that a reward system must have in order to have a direct and positive impact of rewards in the motivational behavior of the employee, (Wilson, 1994), these are as follows;
Rewards should be given on achieving certain desired goals rather than all the way without any condition
They should be formulated in such a manner that it has some meaning and value in the eyes of employee
They should be given to every employee of the organization
Getting the satisfaction of the employees over the rewards that are being offered to them id a difficult task, organization has to learn to manage those things which creates feeling of dissatisfaction among employees, (Searle, 1990).
Employee's satisfaction towards reward in comparison of what he expected and how much he received secondly is comparing his rewards with other people of same jobs in the organization, overestimating his own performance as compare to his colleagues, (Motivation: Reward system and the role of compensation, 2009). So rewards should be designed in full justice by the management of what they are taking from employee and what they are giving to him for his input, and they should be fully defined to the employees so that there may not remain any chance of misconception. This plays important role in creating feeling of satisfaction or dissatisfaction.
Types of Rewards
There are two schools of thought for rewards at the workplace, one is to say THANK YOU in any way, verbal, non-verbal, via certificate etc, other is to give a solid reward that create an impact on monetary position of the employee, (Syedain, 1995).
There are two types of rewards monetary rewards and non-monetary rewards. Employee reward programs design requires a balance between monetary rewards andÂ non-monetary rewardsÂ to provide incentives and benefits to the employees.
Good organizations make a proper reward management system for their employees; and good reward management system while deciding rewards for the employees consider both financial and non-financial rewards because an ideal reward system doesn't ignore any of the attribute because every employee has different cause of motivation, (Armstrong, M., & Murlis, H., 1991).
Monetary rewards are those rewards that are being given by the organization in the form of cash, or through cheque or some other way of financial transaction for achieving the sales goals, providing best quality, providing outstanding performance in a difficult situation or delivering a project report in the best way, (Marcia Moore, M.S.S.W. , 2010).
The monetary rewards are called as the 'tangible awards', (Adam, 2010).
Gratton (2004) says that motivation can be determined by analyzing both monetary and non-monetary factors. Although this is a fact that money generally plays a very important role in our lives and our behaviors. Mostly companies pay little attention towards the non-monetary factors that can cause motivation; mostly the concentration is on the monetary factors that can attract the employees, (Silverman, 2004).
Money is an important factor in motivating people as we live in a money motivated world. According to Peter Drucker (1974), monetary rewards have so much importance that if no proper attention is paid to them or ignoring them will act as de-motivator. They are now becoming the rights of the individuals, (Employee Rewards).
Monetary rewards cannot be remunerated by the non-monetary rewards (human relations). Famous companies like Microsoft, IBM are to some level a result of monetary motivation. Financially rewarding employees' increases their motivation levels, which results in increase in the output, creating more profits and those profits should be circulated back to the employees who are actually responsible for it, (Employee Rewards)
Non-monetary awards includes certificate, a word of thanks from supervisor or manager, flexible schedules, a day off, acknowledgment of birthdays, and free lunches or dinners to celebrate team work success, (Marcia Moore, M.S.S.W. , 2010).
The non-monetary rewards are called as the 'intangible awards', (Adam, 2010).
Non-monetary rewards play an important role in improving employee performance. Using proper attractive and communicative method of non-monetary rewards leaves a positive impact on the employees and improves employees' performances in different dimensions. Such types of awards are inexpensive to give to employees but worth a lot when employees receive them, (Ryan).
Nelson (1994), states that saying thank you to your employees or appreciating their performances when something good is done, is extremely important factor that should be recognized by the managers. According to him 78% employees said that they feel more motivated and happy when their manager appreciates them, (Ryan).
According to research conducted by, Allen and Helms' (2002), expressions of appreciation and praise by the managers give employees encouragement, (Ryan). American Society for Training and Development's (ASTD) research proves that non-monetary awards work as an important factor for keeping hold of top performing employees, (Employee Motivation - Theory and Practice).
Motivation is derived from a Latin word, 'movere', which means to move, (Romando, 2007).
Motivation is derived from a word "motivate", which means to move, push or persuade to act for satisfying a need. Further motivation can be explained as acting of such forces within a person that cause a stimulation of effort, direction and goal direction, (Dr. Green and Butkus, 1999) .
Mol (1992), defines 'motivation' as the total involvement of a person in his tasks to carry out with dedication, devotion, happiness, excitements, and voluntarily, (Khan, 2010).
Some employees are self motivated; they have passion that they want to do something, something creative, something remarkable without the concern of any external powers, (Harris, 1996). He used the word, 'heat-power' for such self-motivated people; he defined this term 'heat-power' as passion of an employee excellence. Organizations which hire such employees have a great advantage that they don't need to pay special attention on the employee reward system as the employees are self- motivated, in actual its their hearts that motivate them. Such kind of employees are not required to be managed, such employees work in the proper direction with a motive to do something their heart wants. But this thing no longer is common among employees; organizations need something that can motivate employees.
The basic motive that let an individual to work or to do something is nothing else than the 'motivation'. Every individual has different reasons to get motivated, but this is not essential that one thing that is motivating one employee many also exactly motive another employee in the same way. Different employees have different motivational levels towards different rewards, and a good management should keep this thing in mind while designing the rewards for employees, (La Motta, 1995).
Basically motivation is a factor with the help of which the organizations can get best of their employees and this can be achieved only with the help of the proper reward system for employees. Every employee of the organization needs some level of motivation else than the self-motivation that can keep pushing one to perform his job, duties and tasks in the proper manner. It will get really difficult for the organization to carry out its work if the employees are not properly motivated. Employees with low motivation level, can cause the low office morale and resulting in workplace conflict. Thus, motivation main factor, which should be created among employees at the right time to achieve goals, (Adams, B., 2001).
In the further review of literature, there are different theories about motivation, which will explain what kind of rewards motivates people and what is the actual logic behind it.
Content also called as need theories of motivation basically emphasis of these theories is on internal factors of an individual that strengthens and gives the direction to the behavior.
Maslow's Hierarchy of needs
Alderfer's ERG Theory
McClelland's Learned needs theory
Herzberg's Motivator - Hygiene Theory
Maslow's Hierarchy of needs:
Abraham Maslow (1943, 1954), states that unsatisfied needs creates demotivation, there are following needs that must be satisfied, these are called as 'deficiency needs'. As these needs are fulfilled the person is satisfied and move towards growth and self actualization.
Physiological needs: These are the basic needs for example food, water, air, and all other things that are necessary for the survival. In order to enhance workplace motivation by achieving the target of fulfilling the needs of employee give proper breaks for lunch, and offer such salary to employees that enable them to buy basic needs of life. Organization should give employees proper lunch breaks, provide ample breaks for lunch andÂ proper wages so that the workers can buy the accessories of life.
Security needs: It includes security regarding the physical environment, living in a safe area, medical insurance, and job security. These needs can simply be fulfilled by giving all these securities to employees.
Belongingness needs: It includes friendship's trust and satisfaction, feeling right in a group, giving and receiving care and love. It can be achieved by generating a feeling of acceptance.
Esteem needs: It includes recognition, attention, social status, accomplishment, self-respect. It can be achieved by recognizing the achievements of the employee, by assigning them some projects, make them feel important and valued asset for organization.
Self-actualization needs: It includes one's own potential, creative capabilities etc, it can be achieved by offering challenging and meaningful work assignments which enable innovation, creativity, and progress according to long-term goals.
Alderfer's ERG Theory:
The Alderfer's ERG theory (1969) is an extension of Maslow's theory of needs. He suggested that needs can be divided into three components; existence (similar to physiological needs and security needs), relatedness (similar to belongingness needs and esteem needs) and growth (similar to self-actualization).
It differs from Maslow hierarchy of needs theory in a way that according to Alderfers it may happen that more than one need may be motivated at the same time, lower motivators is not necessary to be Â significantly fulfilled before moving towards higher motivators, the order of needs may differ from person to person, there is a 'frustration- regression principle' and according to it if high order need is frustrated a person may regress to increase the satisfaction of a lower need which appears easier to satisfy, (Appendix -III, Figure 1).
Frederick Herzberg's Motivator hygiene theory:
Herzberg's motivator hygiene theory (1959), is closely related to Maslow's theory but it is more closely related to how to motivate individuals at their workplace. According to him individuals are influenced by two sets of factors;
Hygiene factors: These are said to be lower level of needs by Herzberg, (Appendix -III, Figure 2).
Motivator factors: These are said to high level of needs by Herzberg, (Appendix - III, Figure 3).
According to him meeting hygiene factors will not motivate individuals to put their effort or to improve their performance, it will just help them from being getting dissatisfied, but if motivator factors will be combined with this it will help individuals to motivate, (Tim Barnet, Marcia Simmering).
McClelland's Learned needs theory:
McClelland's theory states that individuals learn needs from their culture and life experiences. There are three basic needs of an individual;
Need for affiliation (n Aff): It is the need of establishing social relationships with the people, communities, getting accepted by them.
Need for power (n Pow): It is divided in two parts, desire to control one's environment and second to influence others.
Need for achievement (n Ach): It involves the aspiration to take accountability, set challenging goals and get feedback of their performance.
McClelland states that a person has full strong capability in any one of the above categories, thus it has prospective to motivated people that leads to satisfaction. Management should understand these needs of the individuals and then structure their jobs to satisfy them. Those who have high n Aff such people perform well in customer service jobs or where customer interaction is involved. Those who have high n Pow management should provide them the opportunity to manage others. Those who have high n Ach such people should be given challenging but achievable goals.
These theories of motivation focus on known human decision behaviors for the explanation if motivation. These theories determine that how an individual's behavior can be energized, maintained in willed and self directed cognitive process.
Victor Vroom's Expectancy Theory
Gary Latham and Edwin Locke's goal setting theory
B.F. Skinner's Reinforcement Theory
Victor Vroom's Expectancy Theory:
Victor Vroom (1964), theory is based on three beliefs;
Valence: Valence is the extent of the expected outcomes of an individual are attractive or unattractive.
Expectancy: Expectancy is the extent to which employees believe that they are giving enough effort that they will achieve the target of given level of performance.
Instrumentality: Instrumentality is the level to which employees believe that achieving a given performance level result in the form of certain reward.
Motivation = Valence x Expectancy (Instrumentality)
If even one of these is zero the employee will have not motivation for the task, so managers ensure increase in effort will improve performance and improved performance will result in high rewards.
The theory says employees have different goals to achieve and can be motivated if they believe that; there exists a positive correlation between efforts and performance, good performance will result in a reward, and this reward will satisfy an important need, and the wish for satisfying that need is powerful enough to make effort valuable.
Equity theory was first time developed by John Stacey Adams in 1963. Individuals in the society make comparison of their efforts (inputs) and rewards (outputs) that they get. The fairness regarding the rewards influences the level of motivation of individuals a lot. Equity exists when individuals identify that the ratio between their efforts and rewards is similar to whom they are comparing.
Individual's Rewards (output) / Individual's Efforts (Input) = Other person's Rewards (output) / Other person's Efforts (Input)
Similarly inequity occurs when there is difference in ratio in comparison to others. Inequity has two types;
Under-Reward: this type occurs when an individual starts believing that he is putting more efforts as compare to others, but receiving the same rewards that others are getting for relatively less effort.
Over-Reward: this type occurs when an individual starts believing that his equity ratio is higher than the other individuals. Thus getting more rewards by putting less efforts.
Under-Rewarded individual may get motivate to do more work to meet his performance level while on the other hand he may get dis-hearted from this. Over-Reward individual start putting less efforts as he may assume that he is getting much more rewards from little effort. For managers equity theory states that rewards should be fair to all employees, (Tim Barnet, Marcia Simmering).
Gary Latham and Edwin Locke's goal setting theory:
E. Locke and G. Latham (1990), states that goals are important factors in affecting the behaviors and motivation levels of employees. Motivated behavior of employees can be achieved by setting challenging goals for them that usually involve the quantitative targets. Such goals of performance are better than those in which you just say, 'you did a great job, well done'. Researchers have shown that challenging goals are more motivational than any other goals that are easily achievable. The more the dedicated is employee the more he will put his effort to achieve those goals. Researchers show that individuals that perform in goal setting have increases goal commitment. If an individual has high self-efficiency he will respond more positively to achieve goals rather than those who are low-efficient, (Tim Barnet, Marcia Simmering).
B.F. Skinner's Reinforcement Theory:
In Reinforcement theory B.F. Skinner (1957), considered a motivation theory along with learning theory. The theory state that motivated behavior is the outcome of reinforces which are actually the resultants from the behavior that cause it more likely to occur again. It further says that it is essential to measure the consequences of behavior rather than to understand cognitive or processes motivation. Such behavior that was previously rewarded will be continued in future as well from an individual rather than that behavior which was not rewarded or for which he was being punished. The theory suggests to managers that they can handle the behavior modifications by reinforce desired behaviors and punish undesired behaviors, (Tim Barnet, Marcia Simmering).
Importance of Rewards and Motivation
The managers of the organizations always look for such ways that can create motivation among the employees at their workplace so that they can contribute to the goals of the organization at its maximum, (Andrew Ballentine, Nora McKenzie, Allen Wysocki, and Karl Kepner, 2003).
The satisfaction or the dissatisfaction levels of an employee are directly proportional to his good or bad performance. Employee dissatisfaction may lead to poor performance. Petcharak (2004), it is the responsibility of the human resource management of the organization that employee may not dissatisfy from his job, so HR management should take steps to motivate employees otherwise employees will not perform up to expected standards of the organization. Cheng (1995) says that it is one of the largest challenges for service providing organizations to motivate their employees in order to satisfy their customers. The HR department's major task is to develop strategies to motivate its employees, (Khan, 2010).
Human capital rather than financial capital plays a significant role in meeting the goals of the organization. It is the responsibility of the top executives to motivate the employees of the organization. Human capital is the basic source of competitive advantage for any service providing organization these days. Organizations which actually pay attention towards the motivation of its employees assure its success, (Carnegie, 1987). This shows that employees who are motivated are best for the organizations to attain its goals, it is the duty of managers and supervisors to motivate them, (Roberts, 2005).
Motivational arousal causes an employee's interest to complete its project, achieve all those goals that are being set for him. Different people are motivated by different ways; one thing that is creating motivation to one person might not create to other, because there is difference in motivation levels of every individual, (La Motta, 1995).
Baron (1983) agrees with Maslow's hierarchy of needs, that there are some natural factors of motivation that if provided to an individual will motivate him like security needs, esteem needs and self actualization needs.
Rewards are basically to motivate the behaviors of employees towards their work, (Searle, 1990). Rewards should be given as a result to effective performance. Following are some conditions that are necessary for the creation of motivation among employees;
Employees must have faith that their effective performance will surely be appreciated and rewarded.
The rewards that will be being offered by management are attractive.
Believe of employees that their effort is really contributing worthwhile to attain the organization's goals.
Organizations must pay attention towards the monetary as well as non-monetary rewards, because the balanced combination of both creates motivation. An individual's goals and organization's goals are independent goals that are linked by the work motivation. Individuals provide their services to organizations to attain organization's goals in order to meet their personal goals. So, we can say that an individual's goals are directly proportional to the organizational goals.
Motivation not only can influence the performance but the performance can also be influenced by rewards, i.e. direct rewards to true performance, (Baron, 1983). 'Total reward system' is the system in which salaries and other rewards are given to the employees on the basis of their performance. Therefore, 'total reward system' is one of the important element, (Wilson, 1994).
There are three levels of employee motivation, (Mosley, Megginson & Pietri, 2001). They are as follows;
Behavior: the direction of those behaviors of an employee that he selects to perform.
Effort: the level of willingness of an employee to put their effort on their work.
Persistence: the level of willingness to work regardless of difficult situations.
Benefits of rewards
There are many benefits of rewards not only for the employees but for the organization itself, he called organization as 'employer', (Adam, 2010). According to him benefits of the rewards to employees are;
employees start enjoying their work because they know that their work will be appreciated and will be properly responded by the authorities,
it gives them satisfaction that their efforts are properly rewarded,
they feel proud to work for that organization because the company is valuing them,
they start giving their best because they know that better productivity will lead them to get the rewards.
According to him the benefits to the employers for giving the proper rewards are that;
the organization gets well educated, trained and highly qualified employees for work,
when the productivity is good then the financial burden of the organization gets lower
Employee productivity level increases and becomes more perfect and also the efficiency.
When employees of an organization are properly motivated that can help in reducing the typical office politics and conflicts, and together all employees do work in a happy team which in return give better productivity and a good, pleasant and comfortable working environment. By this, not only the organizational goals can be achieved but also employees remain happy and give their best to the organization, (Adams, B., 2001).
Monetary Rewards as motivator Verses Non-Monetary Rewards as motivator
In order to get maximum out from the employees give them the proper rewards and payments linking directly to the output they are giving to the organization. The theory emphasis that financial or monetary rewards or compensations or incentives should be offered to employees in order to boost up the employee motivation level and the employee work performance, (Taylor, 1911)
The recent research proves that mostly monetary rewards are basic cause of the motivation among employees, and in order to get those monetary rewards employees work harder and try to improve their job performance. But this is not all, he reports that there are some people who say that monetary rewards are insulting and they are discouraged by these awards. Every employee cannot be motivated by monetary rewards; the people above who did not like monetary rewards are those people who are motivated by the non-monetary rewards, according to them the required or desired level of work performance can be obtained by making environment good, (Adam, 2010).
On the other hand it is equally important to keep notice that in every race of life money is very important; everyone works in order to earn some money, there is no one who provides his services without getting any sufficient monetary reward. It is real difficult to identify that which employee is motivated by which kind of reward. This is a fact that we live in a world that is motivated by money; there is no human resource management strategy that can replace the importance of monetary reward. Keller says that self motivation is the only motivation that can prevail in the long run but it is equally important that merit should be also rewarded in order to encourage and keep it sustainable, (Adam, 2010).
The reward system that is being offered to the employees should be a strategic reward system that offers its employees a balanced structure of rewards, balanced in means of monetary and non-monetary rewards, (Sarvadi, 2005).
There are four basic components of a most of the reward system, they are;
Incentives / compensations
In Pakistan telecommunication sector is facing big changes for last few years, not only their customers are increasing but also the services are increasing. They reported from a research conducted by them that employees in telecommunication sector give more importance to pay and promotion as compare to training, and these both gives a positive impact on their job satisfaction and motivation, (Zubair Aslam Marwat, Tahir Masood Qureshi, Muhammad I Ramay, 2007).
Past Research Results
The various researches that have been carried out in various sector in different countries of the world reports that rewards have a positive impact on employee motivation. During the research work several searches have been made also in comparison of motivation and rewards with work satisfaction and job performance.
A research was carried out by Carolyn Wiley in 1994 in USA on, "What motivates employees according to over 40 years of motivation surveys". The author has very beautifully summarized all the surveys in previous decades. Since 1930's employee attitude surveys are being carried out in businesses to know what actually motivates employees. In 1940's the main question that was searched for, "why do workers work?", if a company knows its answer, it can boost up them to perform well. Employee performance can be determined by three main things, ability, work environment and motivation. If there is lack of skills and ability it can be fulfilled by proper training programs, if there is some problem in work environment it can be watched and monitored and can be rectify, while about the motivation only employee can tell that what he wants? Does he want more salary? Redesign job? Or more bonuses on achieving goals? Surveys have been carried out in years 1946, 1980, 1986 and 1992. The results are as follows;
Most important motivational factors
In 1946 America came out the depression, the employees were more interested that their work should be appreciated. By 1980 and 1986 new technology had come new in market, i.e. computer technology, employees were now in search of interesting work, to do something new, to learn something new. While as in the past years the standards of living got higher in 1992, the employees rated 'good wages' as motivational factor because if they get good wages they can fulfill their needs. Demographic (gender, age, employment status, annual income, occupational category) information of the employees was also taken. The results are as follows;
Female employees preferred to appreciation, male preferred interesting work..
There was not any significant difference was found on age basis in motivation level, hence it was concluded that 'good salary' is a motivator to all regardless of age.
Significant differences were found among groups on salary basis.
A research was carried out in Malaysia by Islam, Rafikul and Ismail, Ahmad Zaki in 2004, the search was not specified to any special sector it was based on all organizations, they took the demographic variables gender, race, age, education, marital status and designation, on the other hand they took variables Cash, Certificate, Merchandise, Medal, Write-up, Praise, Travel, Vacation, Training, share and power. The research observed that half of the sample population (46.79%), preferred 'Cash' as the Number 1 reward they want no matter what gender, age group, race, marital status, or designation they belong to. On the next number it was vacations and training. The authors concluded that, due to many reasons the standard of living has been gone up, the people of Malaysia needs money in order to maintain their standards. Although many past researches have shown recognition is one of the most liked attribute of the employees but the result is different in case of Malaysia. A survey of Malaysia in the National daily News Straits Times in October, 2004 published that 42% of people consider raising the cost of living as their number one concern that is why they need money to raise it.
A research work was carried out by Kalim Ullah Khan, on "The Relationship between Rewards and Employee Motivation in Commercial Banks of Pakistan", he concluded that his research has shown that management should properly make the policies and strategies for rewarding the employees because every employee has different importance for the reward, however his study shown that there exists a positive relationship between rewards and motivation, and rewards have a positive impact on employee motivation. However, it was observed that everyone was rewarded at the same level rather than rewarding on individual's performance. Some employees complaint that though rewards are announced but delivered on time, which effects the motivation level. The research showed the following results; Pearson's Correlation was carried out among different monetary and non-monetary rewards and motivation, the research was significant at p < 0.01, it showed that;
The further research by Khan 2010, showed that;
Female employees were less motivated
Employees of age group 31-35 years were lowest motivated, whereas the age group of 45 and above were found highly motivated.
Married employees were found lower motivated
Those employees who were working for last 5 years were found least motivated
Those employees who had education for less than 12 years were lowest motivated.
A research that has been carried out by Zubair Aslam Marwat, Tahir Masood Qureshi and Muhammad I Ramay on, "Impact of Human Resource Management (HRM) Practices on employees performance", they specifically took a case of telecommunication sector of Pakistan. They took variables compensation, and training by human resource departments to check its impact on the employee performance. He results showed the correlations as follows;
This shows that the compensation's impact is higher on employee performance, the better the compensation plans the higher the employee performance, and it closely shows that employee's performance increases because his motivation level increases, it means compensation plans attracts employees. They further states that, their findings are similar to the finding of Qureshi M. Tahir (2006) and Singh K (2004), whose research results also showed a positive impact of compensation on employee performance and on organization, due to high motivation level of employees. All organizations who want their organization to grow and to be on the top should pay special attention to compensation plans.
A well-planned, well-executed and well-communicated total rewards program will motivate employees, improve competitive position and strengthen shareholder returns, (Wyatt, 2006). According to Wyatt, 70% of the organizations follow proper reward system while 17% are planning to adopt it. His research work in Canada shows the results that 24% employees are satisfied that they are getting proper rewards.
Mercer Human Resource Consulting carried out a survey in 2002 named as "People at Work Survey", the target population was people of United States. The results of the research are as follows;
48% employees were agreed that they are fairly paid
49% said that the rewards that are provided to them, motivates them
29% said that good performance is properly rewarded
A reserch that has been conducted by MacDonald, in the 100 companies of South Africa in 1993, resulted that among all the sample of the respondents, 96% of the respondents agreed that the 'money' is the most imporrtant factor in motivating an employee's morale, where as rest of the 4% said that it is appreciation, (Greenfield, 1993).
A research work was carried out by Roshan Levina Roberts in 2005 on, "Relationship between rewards, recognition and motivation at Insurance Company in Western Cape". The research showed that there are varieties of factors that influence the motivation of the employee, the Pearson Correlation results at p < 0.01 are as follows;
This research results show that employees are more motivated by recognition.
The research that was carried out on basis of demographics (gender, home language, marital status, age group, race, designation, working duration) showed that;
Females were rewarded lower and hence found low motivated.
Xhosa speaking employees were low motivated.
Married employees were not satisfied with the rewards they are getting and hence were low motivated.
Employees belonging to age group of 41 to 50 years were found least motivated.
African employees were least motivated.
Clerical staff was low motivated.
Employees working for 1 to 5 years were found as low motivated.