Effect of Rewards on Employee Motivation

Effect of Rewards on Employee pauperismIntroduction pauperism is the art of getting sight to do what you fatality them to do because they want to do it.Dwight D. EisenhowerLike a little kid existence given a chocolate on standing first in his curriculum or a big hug for doing slightlything good uni convention dower or so superstar, or cleaning the place after playing, takingss whether fiscal or non-m acetary post be signifi notifyt tools for the motive of employee and a decreed step towards the value of his consummation an boosting his morale. Jack Zigon (1998) defines rewards as something than growings the frequency of an employee action.Its a common honoring that most of us dont perform our tasks exhaustly, non because they atomic number 18 difficult just now because of low interest or pauperism to perform that task. The desire or demand is undeniable for the performance of an activity. Kleinginna and Kleinginna (1981a) defines motivating as, intragroup state or condition that activates demeanor and gives it counselor desire or want that energizes and directs determination-oriented conduct influence of of necessity and desires on the intensity and direction of behavior.BackgroundGatlin, Rebecca (1997), joints that a good and attractive reward program is necessary the employees in pronounce to maked them oppositewise the unmotivated employees allow not perform their tasks correctly and leave ultimately affect the comp some(prenominal) in a negatively charged way i.e. decrease in profitability. Organizations performance is dependent on the employees who spirt for it, so in tell a position to get the better and quality getup, rewards domiciliate a lot in this part, so it is essential for ecesiss managers to make rough-and-ready 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 rew ard and recognizing the grow of the employees makes them happy, de expirer them concern line security and they contri scarcee to a greater extent towards the musical arrangement.Edward E. Lawler one-third (2003), With the right combine of reward system practices, masses will be motivated to excel, and those who do excel will be motivated to stay because they will be highly rewarded. This is the foundation of the virtuous spiral, in which twain sides win and take a crap success for each other.In Pakistan human re bug departments be seen except in those organizations where technology is rigorously applicable or which atomic number 18 highly knowledge organizations. The telecom sphere of Pakistan has shown tremendous growth in youthful categorys and its every because of using up to date technology and the word meaning of free-enterprise(a) and innovative human resource practices. Becker and Huselid (1998) supports that for having the competitive advantage for any bus iness Human resource is basic source to get it.The organizations in the telecom sector of Pakistan atomic number 18 the structures that provide their servings supported by the human resources. The most principal(prenominal) factor in the deliin truth of the beaver quality service is the need of the employees on the individual direct as fountainhead as on the group level. In to twenty-four hour periods innovation of disputation to deliver best service in order to satisfy customers it has obtain very difficult in fact organizations take it as a chall(a)enge to motivate employees in order to get best output from them. The telecom sector of Pakistan plays a powerful fictitious character in its economy. beautiful professional operate delivered by the employees of the telecom sector of Pakistan can construct a constructive and everlasting image in the eyes of their customers.several(prenominal) studies show that rewards run through a huge impact on the job rejoicing and motivation of the employees. Beer (1984) governs that for go along management it is the top most function to develop a strong cocksure relationship betwixt the organization and its employees in order to carry out the continuous ask of both i.e. organizations and employees. Organizations want their employees to follow the organizations rules and regulations i.e. scat according to the standards that be world organise for them, and as a number of it employees want from the organization good workings environment, good salary, good behavior, job security, delegation of authority. For organizations witnessing to deal with these expectations of employees is required.Nel (2001), argues that those employees that argon motivated and be fully aw ar of the organizations goals, that provide the organizations benefit, will divert their all hard work and devotion towards those goals. jibe to Flynn (1998), that these days organizations sympathise the great gains derived by linking rewards whether monetary or non monetary to their business strategy. The telecommunication sector of Pakistan is offering several benefits and rewards to its employees so that employees feel motivated and wait satisfied with their jobs and improve their performance in order to compass organisational goals.ObjectivesThe basic objective for carrying out this query is to measure the impact of rewards in the most fast suppuration sector of Pakistan i.e. Telecommunication sector Pakistan on the motivation of its employees.SignificanceThe significance for carrying out this research is that whether the employees in the telecommunication sector of Pakistan argon 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 LiteratureRewardsJack Zigon (1998) defines rewards as something than increases the frequency of an employee action.In order to treating the employees of the organization right, rewarding them properly is one of the consequential components. Organization which is growing healthier provides its employees the opportunity to grow and prosper. In todays highly business competitive environment win-win relationship is important that forms the right treatment of employees by the organizations. scheme 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 exactingly towards organization, Edward E. Lawler III (2003).ACCEL team maturement says that for improved and better output from the employees rewards act as catalyst. Rewards are part of the organization and management should pay especial assist towards them rewards should be quick, significant, link up to performance, compatible with job measurement and irrevocable. Rewards should be given fairly, if in that respe ct is some factor of unrealistic distribution of rewards like well-favored promotion of the discrimination basis, it will encounter a negative impact on the motivation of the rest of the employees.Searle, John G. (1990), 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 Employees satisfaction towards reward in comparison of what he expected and how practically he bugger offd secondly is comparing his rewards with other stack of same jobs in the organization, overestimating his own performance as compare to his colleagues. So rewards should be knowing in full justice by the management of what they are victorious from employee and what they are giving to him for his input, and they should be fully defined to the employees so that on that point may not remain any chance of misconception. This plays important rol e in creating feeling of satisfaction or dissatisfaction.Cameron Pierce (1977), states that every business use rewards like salary, promotion, and other types of bonuses to encourage employees towards high level of performances.Types of RewardsAccording to Syedain (1995), 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 concrete rewards that create an impact. in that respect are two types of rewards monetary rewards and non-monetary rewards. Employee reward programs design requires a balance between monetary rewards andnon-monetary rewardsto provide incentives and benefits to the employees.pecuniary rewardsMarcia Moore, M.S.S.W.(2010), says that 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 big(p) p erformance in a difficult situation or delivering a project report in the best way.Gratton (2004), states that motivation is determined by both monetary and non-monetary factors, g superannuated has come to play an overly important role in our thinking about the causes of behavior. In most companies very limited time and effort are spent on considering non-monetary sources of motivation. notes is an important factor in motivating people as we live in a money motivated world. According to Peter Drucker (1974), there is not one shred of evidence for the allege turning aside from material rewards. Antimaterialism is a myth, no matter how much it is extolled. financial rewards have so much importance that if no proper attention is remunerative to them or ignoring them will act as demotivator. He further says, sparing incentives are becoming rights kind of than rewards.ACCEL team development argues that monetary rewards cannot be remunerated by the non-monetary rewards (human rela tions). Famous companies like Microsoft, IBM are to some level a go forth of monetary motivation. Financially rewarding employees increases their motivation levels, which results in increase in the output, creating to a greater extent than profits and those profits should be circulated backrest to the employees who are actually responsible for it.Non-Monetary RewardsMarcia Moore, M.S.S.W., (2010), non-monetary awards includes certificate, a word of thanks from executive program or manager, flexible schedules, a day off, acknowledgment of birthdays, and free lunches or dinners to celebrate team work success.Pfeffer (1998), People do work for money but they work even more than for meaning in their lives Companies that slew this fact are essentially bribing their employees and will pay the price in a lack of loyalty and commitment.Sherry Ryan ( formulation Specialist, Weyerhaeuser Company), says that non-monetary rewards play important role in improving employee performance. Usi ng proper attractive and communicative method of non-monetary rewards leaves a positive impact on the employees and improves employees performances in contrasting dimensions. Such types of awards are inexpensive to give to employees but worth a lot when employees receive them.Bob Nelson (2004), 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 say that they feel more motivated and happy when their manager appreciates them.According to research conducted by, Allen and Helms (2002), expressions of appreciation and praise by the managers give employees encouragement. American Society for Training and Developments (ASTD) research proves that non-monetary awards work as an important factor for keeping reign of top performing employees.MotivationMotivation is derived from a Latin word, movere, which means to move.The author of book Mo tivation, beliefs, and organizational transformation (1999), Dr. Green and Butkus (1999), says that motivation is derived from a word motivate, which means to move, push or persuade to act for red-blooded a indigence. Further motivation can be explained as playacting of such forces within a soulfulness that cause a stimulant of effort, direction and goal direction.Motivation is the total involvement of a soulfulness in his tasks to carry out with dedication, devotion, happiness, excitements, and voluntarily, Mol (1992).Theories on MotivationThere are two classes of supposition of motivationContent Theories Content similarly called as need theories of motivation basically emphasis on internal factors of an individual that strengthen and gives the direction to the behavior.Maslows Hierarchy of requireAbraham Maslow (1943, 1954), unsatisfied needfully creates demotivation, there are following necessarily that must be satisfied, these are called as deficiency postulate. As th ese 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 aspire of fulfilling the needs of employee give proper breaks for lunch, and offer such salary to employees that modify them to buy basic needs of life. Provide ample breaks for lunch and convalescence and paysalaries that allow workers tobuy lifes essentials.Security needs it includes security regarding the physiologic environment, living in a safe area, medical insurance, job security. These needs can simply be fulfilled by giving all these securities to employees.Belongingness needs it includes friendships trust and satisfaction, feeling right in a group, giving and receiving care and love. It can be achieved by generating a feeling of acceptance. watch needs It includes recognition, attention, kindly status, accomplishment, self-respect. It can be achieved by recognizing the achievements of the employee, by appointment them some projects, make them feel important and valued asset for organization.Self-actualization needs it includes ones own potential, creative capabilities etc, it can be achieved by offering con essay and meaningful work assignments which enable innovation, creativity, and progress according to long-term goals.Alderfers ERG suppositionThe Alderfers ERG theory (1969), is an extension of Maslows theory of needs. He suggested that needs can be divided into tierce 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 significantly fulfi lled before moving towards higher(prenominal)(prenominal) 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 thwart a person may regress to increase the satisfaction of a lower need which appears easier to satisfy.Frederick Herzbergs Motivator hygienics theoryHerzbergs motivator hygiene theory (1959), is about related to Maslows 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 factorsHygiene factors These are said to be lower level of needs by Herzberg.Motivator factors These are said to high level of needs by Herzberg.According to him see hygiene factors will not motivate individuals to put their effort or to improve their performance, it will just attend to them from being getting dissatisfied, but if motivator factors will be feature with this it will help individuals to motivat e.McClellands Learned needs theory acquireMcClellands theory states that individuals learn needs from their culture and life experiences. There are cardinal basic needs of an individual train for affiliation (n Aff) It is the need of establishing social relationships with the people, communities, getting accepted by them.Need for power (n prisoner of war) It is divided in two parts, desire to control ones 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 conceive 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 ha ve 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 accomplishable goals.Process Theories These theories of motivation focus on known human conclusion behaviors for the explanation if motivation. These theories determine that how an individuals behavior can be energized, maintained in willed and self directed cognitive process. succeeder Vrooms Expectancy TheoryVictor Vroom (1964), theory is based on three beliefsValence is the campaign of the expected outcomes of an individual are attractive or unattractive.Expectancy is the put under to which employees believe that they are giving enough effort that they will achieve the target of given level of performance.Instrumentality is the level to which employees believe that achieving a given performance level result in the form of authorized reward.Motivation = Valence x Expectancy (Instrumentality)If even one of these is nonentity 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 heed for satisfying that need is powerful enough to make effort valuable. equity TheoryEquity 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 candor regarding the rewards influences the level of motivation of individuals a lot. Equity exists when individuals identify that the ratio between there efforts and rewards is similar to whom they are comparing.Individuals Rewards (output) / Individuals Efforts (Input) = Other persons Rewards (o utput) / Other persons Efforts (Input)Similarly unfairness occurs when there is variance in ratio in comparison to others. injustice has two typesUnder-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 little effort.Over-Reward this type occurs when an individual starts believing that his equity ratio is higher other individuals. Thus getting more rewards by putting less(prenominal) efforts.Under-Rewarded individual may get motivate to do more work to meet his performance level while on the other ease up 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.Gary Latham and Edwin Lockes goal prospect theoryE. Locke and G. Latham (1990), states that goals are importa nt factors in bear upon 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 more good than those in which you just say, you did a great job, well done. Researches 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 alternatively than those who are low-efficient.B.F. Skinners financial backing TheoryIn 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 result ants from the behavior that cause it more liable(predicate) 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.Need for motivationThe satisfaction or the dissatisfaction levels of an employee are directly comparative 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 displease from his job, so HR management should take steps to motivate employees differently employees will not perform up to expected standar ds of the organization. Cheng (1995), says that it is one of the larges example challenge for service providing organizations to motivate their employees in order to satisfy their customers. The HR departments major task is to develop strategies to motivate its employees.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 advandage for any service providing organization these days. Organizations which actually pay attention towards the motivation of its employees assures its success, Dale Carnige (1985). This shows that employees who are motivated are best for the organizations to attain its goals, it is the craft of managers and supervisors to motivate them, Roberts (2005).According to La Motta (1995), motivational arousal causes an employees interest to complete its project, achi eve 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.Baron (1983), agrees with Maslows 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.Importance of Rewards and MotivationSearle, John G. (1990), rewards are basically to motivate the behaviors of employees towards their work. Rewards should be given as a result to useful performance. Following are some conditions that are necessary for the creation of motivation among employeesEmployees must have faith that their effective performance will surely be appreciated and rewarded.The rewards that will be being offered by management are attractive.The believe of employees that their effort is actually contributing worthwhile to attain the organizations goals.Organizations must pay attention towards the Monetary as well as Non-Monetary rewards, because the balanced combination of both creates motivation. An individuals goals and organizations goals are independent goals that are linked by the work motivation. Individuals provide their services to organizations to attain organizations goals in order to meet their personal goals. So, we can say that an individuals goals are directly proportional to the organizational goals.Robert (2005), while studying the Barons work (1983) reports that motivation not only can influence the performance but the performance can also be influenced by rewards, i.e. direct rewards to rightful(a) performance. 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).Mosley, Megginson, Pietri (2001), reports that the there are three levels of employee motivationBehavior 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. assiduity the level of willingness to work regardless of difficult situations.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 than training, and pay and promotion gives a positive impact on their job satisfaction and motivation, . Kashif u Rehman et al., (2007).Theoretical exemplarProblem Statement shot 1There is a positive relationship between rewards and motivation in the employees of Telecommunication sector of Pakistan. definitionRewards are things that boost some ones morale to do something it is observed in our daily life that whe never an individual or a team is being given reward for their good work the motivation of the employee increases to do more good work in order to get more rewards. supposition 2Monetary rewards cause more employee motivation than the non-monetary rewards in the telecommunication sector of Pakistan. expositionReward in the form of money attracts people more rather than any other reward in form of just appreciation or a certificated. This hypothesis will test that whether it is true or not in the telecom sector of Pakistan.Hypothesis 3There are significant differences in effects of biological variables on employee work motivation in the telecom sector of Pakistan.ExplanationThis research hypothesis will find answers to such questions asWho were more motivated male or female?Which age group people were more motivated?Who were more motivated new or old employees?Married people had more motivation towards work or individual?Sales people are more motivated as compare to rest of the peo ple at different designations?Research Methodology motherfucker for data appealingnessThe tool for data collection for this research is survey. And for the nominate of doing surveys place questionnaire is designed. This method of data collection is chosen because it has geographical flexibility, undemanding sample accessibility, saves time, and cost, anonymity and respondent convenience to reply.Design of QuestionnaireThe research questionnaire consists of three partsPart I It consists of personal information of the subject, such as gender, age, designation, working experience, marital status and education.Part II It is designed for the collection of data about the independent variable i.e. Rewards (Monetary Rewards/Non- Monetary Rewards).Part III It is designed for the collection of data about the dependent variable i.e. employee motivation.Units of observationThe units of observation are the employees of different companies of telecom sector of PakistanMobilinkUfoneTelenorWar idZongWateenWorld forebodeWi-TribePakistan telecommunication LimitedThe sample includes all categories of employees.Sample SizeThe sample size for data collection is 1000.Time DimensionThis study is a cross sectional study.Scale / Scoring of questionnaireTe Likert scale is use for the collection of data. Likert scale is basically a 5-point scale which consists from 5 to 1.For positive statements scoring isStrongly Agree = 5Agree = 4 torpid = 3Disagree = 2Strongly Disagree = 1For positive statements scoring isStrongly Agree = 1Agree = 2 deaf(p) = 3Disagree = 4Strongly Disagree = 5 resultQuestionnaire will be spread out among the employees of telecommunication sector of Pakistan via mail questionnaire in their workplace. Instructions and grantee of confidentiality of the personal information will be ensured.Data analysisFor the descriptive analysis SPSS (Statistical Package for Social Sciences) magnetic declination 16 or simply Microsoft Excel 2010 will be apply.For finding out th e correlation between the Rewards (independent variable) and employee motivation (dependent variable) Pearson Correlation Coefficient will be used.For finding out the correlation between the Financial Rewards and employee motivation and Non-Financial Rewards and employee motivation Pearson Correlation Coefficient will be used.For the analysis of the differences in employees work motivation based on the personal characteristics (biographical) ANOVA will be used which is used to measure the significant differences between the variances.Expected ResultsThe 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.In 1997, Carolyn Wiley compared the result of previously held four surveys that were conducted on motivation of employees in year 1946, year 1980, year 1986 and year 1992.The survey that was conducted in 1992 resulted that in todays world employees are motivated by mone tary rewards. Employees chosen salary as the top most motivating element. The research said that salary is a monetary reward with a natural influence.Limitations small(a) response rateLow completion rateCannot catch verbal behaviorCannot use extended questionnaire