GROUP MEMBERS

M. Amir Mushtaq PRESENTED TO: Dr. Prof. Naveed Ramzan COURSE TITLE: Research Methodology EXMBAFAL12058

RESEARCH TOPIC

MOTIVATION through Compensation and Working Environment

Background The human resources are the most important assets of an organization. The success or failure of an organization is largely dependent on the caliber of the people working there-in. Without positive and creative contributions from people organizations cannot progress and prosper.

MOTIVATION
Motivation is a psychological feature that arouses an organism to act towards a desired goal and elicits, controls, and sustains certain goal directed behaviors. It can be considered a driving force; a psychological one that compels or reinforces an action toward a desired goal. For example, hunger is a motivation that elicits a desire to eat.

WHAT DOES MOTIVATION DO

Is an intrinsic and internal process Encourage people to achieve goals Influence project productivity Emphasize psychological, social and economic satisfaction Mean creating an environment of satisfaction

FINANCIAL TECHNIQUES
Salary increment Bonus Incentives Rewards Allowances

NON FINANCIAL
Promotion Praise Appreciation Job enrichment Participation in management

Scope and objectives

In any organization employees motivation is the key factor for organizational performance. Previous studies have shown positive impact of working environment and compensation on employees motivation.

Literature Review Compensation Benefits

Compensation benefits (Pay, rewards, medical & transportation) are a major consideration in human resource management because it provides employees with a tangible reward for their services (Bohlander, Snell, and Sherman, 2001) Basically compensation refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship (Milkovich & Newman).

Pay/Salaries
Pay can be a factor in decision to stay or leave, it is clear that dissatisfaction with pay can be a key factor in turnovers (R. Heneman andT. Judge: 1999). Linkage between pay and behaviors of employees results in better individual and organizational performance (W. N. Cooke: 1987). Level of pay and pay system characteristics influence a job candidates decision to join a firm (E. E. Lawler: 1971).

Rewards & Incentives

In

motivation, rewards and incentives directly effect on the behaviors ofemployees. According to a report by the American Compensation Associations, August 1996. When it comes to reinforcing team behavior, the reward system is one of the most effective and influential tools available to the organization (IRS 1996). Rewards may enhance the employees financial well-being through wages, bonuses, or profit sharing, or indirectly, through employer-subsidized benefits such as retirement plans, paid vacations, paid sick leaves, and purchase discounts (Sue Shellenbarger, 19999).

Health Benefits
Wellness programs for healthy working environment, may help organization to cut employer health costs and to lower absenteeism and turnover of employees (Carolyn Petersen). Family Health benefits often have spillover effects in the form of loyalty because employees see the benefits as evidence that the organization care about its employees. (S. L. Grover and K. J. Crooker: 1995). Family Health benefits often have spillover effects in the form of loyalty because employees see the benefits as evidence that the organization care about its employees. (S. L. Grover and K. J. Crooker: 1995).

Working Environment
Organization officials have a legal responsibility, if not a moral one, to ensure that the workplace is free from unnecessary hazards and that conditions surrounding the workplace are not hazardous to employees physical or mental health (Decenzo). Green (2001) says managers can motivate employees by setting in motion the conditions required for motivation such as working environment, confidence, trust and satisfaction that enforce employees to improve their performances.

Herzberg
Herzberg is the grandfather of theory of motivation. He states that compensation including pay, rewards, communication and working conditions are four common incentives, which motivate employees.

Formulating Research problem

Previous studies have shown positive impact of working environment and compensation on employees motivation. But basic purpose of this project is to find out positive relationship between motivation through compensation and good working environment in Pakistan as all previous studies have been conducted in outside of Pakistan in different cultures and different economies.

Identifying of Variables
We are trying to investigate the relationship between independent variables (working environment & compensation) with dependent variable (employees motivation)

Hypothesis
It was an attempt to determine the impact of Working Environment and Compensation on employee motivation. The main objectives were: To investigate the impact of Working Environment and Compensation on employees motivation. To investigate the relationship between Independent variables (Working Environment & Compensation) with dependent variable (employees motivation). To recognize the degree of association between Independent variables and dependent variables.

Research Methodology
The project will be carried out systematically by the following methodology: Instrument: Primary data we will collect thorough questionnaires. This questionnaire was initially developed by the Frontliners by consulting a number of research papers.

Sample: Total 200 questionnaires were distributed by Frontliners in their respective organizations in the field of industry sector and as well as in services sector. Questionnaire: For this purpose a questionnaire was designed and items were scored on a five point Likert Scale with end points of Disagree and Strongly Disagree.