TOPIC: THE EFFECTS OF REWARD ON EMPLOYEE PERFORMANCE

A Proposal Submitted

By

Maira Khan (57733)

To

Department of Business Administration

In partial fulfillment of

The requirement for the

Degree of

BACHELOR OF BUSINESS ADMINISTRATION

In

Human Resource Management

The Proposal has been

Accepted by the faculty

FACULTY OF BUSINESS ADMINISTRATION

Advisor

Research Facilitation Centre

 The Effects of Reward on Employee Performance 1

Independent variable
JOB PERFORMANCE
INTRINSIC REWARD
 Job satisfaction
EXTRINSIC REWARD  Employee engagement
 Employee motivation
 Self- efficacy
 Empowerment

Monitoring reward

Non monitoring
reward

The Effects of Reward on Employee Performance 2

CHAPTER 1

Introduction
 1.1Back ground of Study
This research basically focus on effect of reward on employee performance and reward system is
playing an important role in any organization to the betterment of an organization.
Telecommunication is more efficiently work because of reward system. Employee expectation is
getting fulfilled by reward that’s why their performance is highly appreciated.

1.2Problem statement
Telecommunication companies in Pakistan must improve its performance and hold competitive
advantage with resourceful and current strategy to remove the absenteeism, low productivity, and
demotivation. Adequate rewards; management can motivate employees, particularly low
performers, but also increase job contentment particularly of high achievers (Dewhurst, 2010).

In this research the researchers have emphasized the reward system which affects the
organization performance. Now a day’s Pakistani manager are focusing to reveal the problem
that demotivate the employee. They also survey about employee satisfaction and change the rules
and policies according to the expectation of employees.

1.3 Research Question

 What is effect of reward on job satisfaction?
 Does reward effect on employee engagement?
 What is the effect of reward on employee motivation?
 What is the effect of reward on self-efficacy?
 What is the effect of reward on empowerment?

1.4 Research objective

1. To identify the effect of reward on job satisfaction.

2. To determine the effect of reward on employee engagement.

3. To examine the effect of reward on employee motivation.

The Effects of Reward on Employee Performance 3

4. To ascertain the effect of reward on self-efficacy.

5. To assess the effect of reward on empowerment.

1.5 Significance of study

This Research basically involves the advantages of employee satisfaction that increase
the organization performance. This study also contributes the awareness and creates a new
culture to boost the employee performance. It helps organization to achieve the organization
goal, high productivity, increase employee engagement and familiarizing success of long term
result.

1.6 Scope of study

The research work scope is to spread the efficiency of employee satisfaction around the
country, supporting the increasing number of employee as well as creating high level services on
HRM practices. On the other hand spreading and promoting the Telecommunication industry in
order to employee satisfaction, HRM practices, employee engagement. Also to create the value
added for Telecommunication industry in regional level.
The Effects of Reward on Employee Performance 4

1.6 Structure of study

BACKGROUND

INTRODUCTION

LITERATURE REVIEW

RESEARCH METHOD

RESULT

ANALYSIS

CONCLUSION

RECOMMUNDATION
The Effects of Reward on Employee Performance 5

Structure of study
• The researcher will use quantitative research methodology for this study.

• The researcher will research specific Sample size from population.

• SRSS 21 software will use in this study.

• Regression analysis model will use to fit the data.

1.7 THEORY

Motivation theory
An important view for all links is to motivate their workers. From a classified point of view, the
motivation is necessary because of the way that it can engage high-performing workers to remain
inside the association. Also, the workers can through a higher level of motivation build up their
general capabilities in their particular employment task and be more connected with to perform
at a higher amount. (Sveningson, 2008)

1.8 Two factor theory

According to Herzberg theory, particular highlighting should to be put on actions that the
workers connect with the activity undertaking, or the consequences from these tasks. The
association should be to a more remarkable degree put action on self-awareness and
acknowledgment for a well-done work or using innovation, which are more natural motivational
angle that to a more remarkable degree should to be stressed on. (Matsson, 2010)

1.9 Expectancy theory

The focus of the expectancy hypothesis is depending on representatives' willingness to play out a
certain effort. This is relying upon the degree to which a particular target is rewarded, which for
example could be a higher reward or improvement inside the link. On the chance that the
representative inside the link sees the reward as important, the implementation will be more
prominent. Then again, if the prizes are demotivating the worker, the implementation will be
inferior (Sveningson A. &., 2008)
1.10 Hypothesis
H1 Intrinsic rewards have positive effect on job satisfaction
H2 Intrinsic rewards have positive effect on employee engagement
H3 Intrinsic rewards have positive effect on employee motivation
H4 Extrinsic rewards have positive effect on self-efficacy
H5 Intrinsic rewards have positive effect on empowerment
.

CHAPTER 2
LITERATURE REVIEW

2.1 Intrinsic reward and Job Satisfaction

Intrinsic reward framework is basic for employee motivation both for high achievers and low
achievers. This is on the grounds that rewards increase the activity satisfaction among superior
employees and go about as a motivation for low performers. Intrinsic Reward frameworks are
similarly important and compelling in an inclusive range of associations whether it is an open or
private, for benefit or non for benefit association. Although the framework itself change from
association to association in light of the fact that individuals working in an association have
different characteristics and in addition individual preferences. Some favor monetary rewards as
inspiration while other may slender toward nonmonetary rewards. (Dewhurst G. a., 2009)

2.2 Extrinsic reward and Job Satisfaction

Confirmation from different aspects into had done throughout the years plan the consequence of
both extrinsic and intrinsic reward. To accomplish improved employee satisfaction, neither one
of the ones can be replaced for the other. Representatives who are liberally rewarded yet are
made to work in situations which are not favorable or made to do dull effort will leave for
different associations in view of the absence of typical rewards similarly as representatives who
work in attractive and investing organization will leave since they will be dissatisfied with
extrinsic rewards. (Shanks, 2007) (al., 2007)

2.3 Intrinsic reward and Employee Motivation

Most organizations see rewards as methods for inspiring certain performs in representatives. In
particular, rewards are proposed to awaken employees to perform effectively and expertly
towards doing classified objectives. (al. M. e., 2007) Martin define In other words, an individual
is inspired to create expected conduct in the event that he or she is sure that that conduct will
prompt certain prizes. The hope demonstrates is examined in detail under Vroom's Expectancy
Theory. (al. M. e., 2005)Managers tend to believe that motivation is either extrinsic or intrinsic
and in this way concentrate on only one of them, disregarding the other. Morse contends that in
most work settings managers and even representatives have a trend to have a bias towards
unimportant rewards. Manion however struggles that it is basic for directors to remember that
'regularly, a mix of elements influences representatives, not only one kind of unnecessary or
individual reward. (Manion, 2005)

2.4 Extrinsic reward and Employee Motivation

An Extrinsic rewards really satisfies representatives unnecessary variables or hygiene elements
and in this way don't give him a chance to begin planning leaving the organization. Cases
incorporate pay growth, rewards, paid leaves, yearly entertaining plans and so onward.
(DANISH, 2010) Exposed that there is a factually critical connection between reward and
acknowledgment separately likewise inspiration and satisfaction. (ZAMAN, 2011) Explain
"there must to be a compelling unnecessary reward framework to hold the superior employees in
the association and reward must to be connected with their success". Another reality that can be
seen from the above dialog and cases is that extrinsic reward is for the most part subjective in
nature and can't be evaluated for example more regard, acknowledgment and so on. Though
outward rewards are all the more a quantitative in nature.

2.5 Relationship of Intrinsic, Extrinsic Reward and Empowerment

This is workers. Truth be told, it is perceived to be "a piece of regular administration dialect the
work environment the thought of strengthening developed in the late 1980s and of late it has
gotten expanded consideration from the scholastic and business society. Because of the
observation that strengthening can essentially help the two associations(Wilkinson, 1998,p.40)
Empowerment has also been considered as a management practice which can be every
organization implemented in and in every sector (Lashley, 1999).Especially, in the service sector
where the customer participates in the exchange process, employees' role becomes very
significant. As a consequence, employees' behavior and the provision of s (Lashley, 1999)ervice
in general can affect organization's performance. Despite the great importance that has been
attributed to the notion of empowerment and the plethora of papers that have been written, the
empirical research in this field is limited. According to Dimitriades "the systematic and rigorous
study of employee empowerment is still in its infancy" (2005, p.81) Empowerment is a term
which includes a variety of practices and has diversely been used by academics and managers.
As a result, it is logical for empowerment to present a range of definitions. However, in the most
simple and generic form empowerment "is concerned with giving employees more authority and
discretion in task and context related issues" (Melhem, 2004, p.73).

2.6 Relationship of Intrinsic, Extrinsic rewards and Employee Engagement

Employee engagement is a generally new idea in scholastic research. While its
significance was for the most part advertised by HR consultancy firms
previously, it has in additional late years picked up ubiquity among specialists
(Macey and Schneider, 2008, p. 3Saks,2006,600).Representative engagement is
a questionable one, and a horde of
diverse meanings of representative engagement can be gotten from ebb and
flow inquire about and
hone driven writing (Macey and Schneider, 2008, p. 4). Macey and Schneider
(2008, p. 3) compose that easygoing perception recommends that the
hierarchical administration intrigue in the idea of worker engagement can be
ascribed to the proposed enhancements
it can bring to authoritative execution, as has been proposed from the
discoveries of many investigations (Smith and Macko, 2014; Harter et al.,
2002; Paradise, 2008; Wellins et al., 2005). Therefore a significant number of
the given definitions are based around the commitment representative
engagement makes to authoritative execution, especially those given by
experts and HR consultancy firms as they tend to concentrate on these
assumed positive results (Macey and Schneider, 2008, p. 4; Shuck, 2011, p.
305). This attention on authoritative execution has affected the definitions that
are given, as well as has additionally coordinated the concentration of ebb and
flow look into. Jenkins and Delbridge (2013, p. 2672) watched that quite a bit
of current writing is about the ability of supervisors to convey
drawn in workers with a definitive objective of authoritative advantage. In
spite of the fact that this approach shows an essential part of worker
engagement, it frequently covers engagement with different builds inside
authoritative conduct, for example, duty what's more, fulfillment (Shuck,
2011, p. 305)
2.7 Relationship of Intrinsic, Extrinsic rewards and Self -Efficacy

self-efficacy identifies with the ecologically capable conduct of reusing and whether inborn
inspiration serves to intervene the connection between self-viability and reusing. The creators
measure those develops, alongside outward inspiration and the self-administrative practices of
fulfillment with and aims toward reusing. Occupants (n = 1,501) of 55 regions in Cordoba Spain
are met at home. Results demonstrate that all factors are decidedly identified with self-detailed
reusing, aside from that extraneous inspiration is contrarily identified with reusing. As the
creators guess, the connection between self-adequacy and reusing reduces when natural
inspiration is added to the model, which recommends that inborn inspiration represents a portion
of the connection between self-viability and reusing. With the utilization of basic condition
displaying, all factors, aside from extraneous inspiration, give a decent model fit; clarified
difference in detailed in-home reusing is likewise generous (balanced R2 = .45). The
meditational investigation gives knowledge in regards to the progression of inspiration; the
model recommends that self-adequacy identifies with reusing specifically, by offering ascend to
inherent inspiration, which thusly identifies with reusing

CHAPTER 3
METHODOLOGY
2.8 Research Method
There are two sorts of information in look into considers: Primary information and secondary
information. Essential information is the direct information gathered by the investigation by
joining members while secondary information depends on results and discoveries of looks into
directed by other individuals (Kovalainen, p. 2008) Secondary information is commonly
gathered by reducing existing writing as intellectual books, scholastic research articles, daily
papers, industry reports. There are a few strategies for essential information and are picked on
the premise of research outline. For subjective information, there are interviews, center
gatherings, and so on and for quantitative information there is survey, questionnaire perceptions
and so on.
A standout between the most prominent and most usually utilized quantitative research
instruments in examine group is survey questionnaire. This strategy has a few points of interest
over other quantitative information gathering strategies, for example, perceptions. Initially,
questionnaire empowers a scientist to gather huge measure of information in reasonably less
time. Besides, (baily, 2013)

2.9 Research Philosophy

Research philosophy refers to explanation of philosophical choices made in the study. Research
philosophy is related to epistemological considerations which deal with the Principles and
philosophy applied in a study to gain acceptable knowledge. There are different Schools of
thought that researchers base their research on, such as positivism (Wilson, 2011)
Positivism emphasized that strategies and methods of regular sciences are material in social
research and to plan social surprises while interpretivism resists that strategies and systems of
regular sciences are not related. The basic argument of interpretivism is that the topic of social
research is diverse as contrasted with topic of regular phenomena and along these lines a
different research technique is required to study and increase adequate learning with respect to
social phenomena (taddlie, 2010)

2.10 Sample Techniques and Population

Sample introduces to distinctive an example i.e. a gathering of members from target population
as descriptive of entire population. Information is gathered from the example and it is expected
that outcomes and conclusion drawn from this information is descriptive of the entirety
population. Test is standard on the grounds that scientist can't gather information from entirety
population. (mayers, 2013)
Sampling technique is widely organized into two gatherings: probability inspecting what's more,
nonprobability tests. Probability testing is more dependable as all individuals from target
population have break even with opportunities to take part in explore while in non-likelihood
examining, all individuals from target population don't have level with reports. (carvail, 2013)

3.1 Sample Size

The core population size of the survey considers was all the organizer and directors that are
working for Telecommunication Company. Remain that as it may, this investigation gathered
information from representatives of Telecom, since it was unlikely for scientist to gather
information from all employees; in this manner, an example was gathered as imaginative of all
Telecom company.
3.2 Research Approach
There are two sorts of research approaches; inductive and deductive. As per the Deductive
approach, additionally called "top-down" thinking, an investigation starts by gathering general
perceptions about the genius and surveys information and makes particular perceptions. (bell,
2011)
Regularly, this approach is utilized to create hypotheses (Teddlie, 2010). This examination
expected to test the connection amongst rewards and worker implementation. The investigation
with secondary research and afterward it moved to gather particular perceptions from
representatives of Telecom to test current hypotheses about the connection between the two
factors. Therefore, the unknown research approach of this examination was deductive approach.