Research Scholars of Department of Management Sciences, University of Okara
Research Scholars of Department of Management Sciences, University of Okara
Research Scholars of Department of Management Sciences, University of Okara
Evidence from
Banking Sector of Pakistan)
Naeem Akhtar
Supervisor
University of Education, Lahore
[email protected]
Gul Jabeen
MA, Economics, Pak Studies, M.Phil.
Lecturer
Army Public School Okara Cantt
Introduction:
Better work done by employee give more profit to organization. Then organization
take more interest in employee work and give wages, salary and some other rewards.
[ CITATION MrA142 \l 1033 ] Encouragement is the way of work between employee
and his owner .That the outcome employee deal. Organization obey all rules and
regulation who is related to the employee. After work organization pay fully relief to
the employee or further increase in pay, dues as year as schedule. Employee future
one of the most important part of cash flow. Encouragement is mostly valuable to
half of cash flow. Therefore; the services area is more than half. Major effect to
employee attraction and motivate with the help of incentives. In this deal typically
personalities who educated and high standard in market are not satisfied from
organization. Compensation of employees is necessary for organization to achieve
his goal and then satisfied.
Employee work depend on ability of his mind. His level touched the organization
level then his rewards and compensation effect on his decision power. Value of
employee depend on performance .To enhance the confidence or improve the
employee performance with help of salary, incentive and non-financial compensation
system. From many way, it is very important area of research .Many researcher
identify related link between job satisfaction and ability to do something better.
Organization gain or loss depend on capability of employee with rewards, wages,
and non-financial compensation of organization to stay here for long time by the
employee.[ CITATION Muh12 \l 1033 ]
Employees are main value of the organization If employee perform well then its
organization also appreciate on its work with the help of rewards and salary,
nonfinancial compensation .Saving money of an employee future help of his family
and organization provide this facility in which double his employee saving such as
insurance of life. Medical allowance is more help fully to the employee .Because any
person in employee family will become ill, also go for a medical treatment it is free
because employee organization.[ CITATION Ser12 \l 1033 ]
A employee do better work and organization five reward such as money ,non-
financial compensation in the form of pick and drop facility and important thing as
gift. Positive attitude of employee imposed better impression on organization
.Therefore: employees complete with each other well better and better.[ CITATION
Aye15 \l 1033 ]
It is verification the generally the individual person that getting higher education
there are not happy their job. The employee point of view about the organization if
the value of the employee training and more motivation and more beneficiary
bundles has growth performance of the employee and organization outcome day by
day also increase efficiency and visit their action.[ CITATION Pay131 \l 1033 ]
Incentive are moved the employee actions of the employee contribute the company
goal attainment of the organization. Every organization have a one of the most
essential task in any organization is adjusting the variation of market and employee
desires.[ CITATION Meh14 \l 1033 ]
The employee and manager have key responsibilities manage the connection to act in
power fully in the market. Else, the manager must allocate their plan to the changes
and organization task and idea and check the future plan and possible outcomes as
well as the attitude decrease the efficiency and more effectiveness. [ CITATION
Nad111 \l 1033 ]
In the study for example when a functional manager involve their inspirations or
incentive human resources strategy. In other words, capability encouragement or
incentive give new tests satisfying polices to the organization and the customer needs
and wants established by efficient manager and accomplish them. In fact, the Human
resource is more important the clear outcome reward or incentives and new polices
and causes, and result.[ CITATION Sai141 \l 1033 ]
In addition, today the more advantage of the human resource management to degree
of the all matter of the organization is one of the most essential for any organization
and when the human resource management amount and get the possible outcome and
highest efficiency and effective for Human resources manager and all the inspired
employee of the organization. Some of the success full elements of the employee
include working condition and relationship among employee and employer.
[ CITATION Mas14 \l 1033 ]
Process of training and development business prospects job rules and directive and
security and firm incentives. Really all the more effective items on employee
performance and explain the motivation of the employee is the most essential items.
In other words, reward are the two types both of the reward relationship among the
employee and organization intrinsic reward are variety job itself. Else, the employee
interest them as the result of the finishing the task and popular approach and succeed
goals. Secondly intrinsic reward most of the main factor of the job. Job task such pay
in form of money and central benefit and situation working and job monitors and
service act upgrade, and friendly location condition. Such an actually reward
continuously and organization level
And all over the process of the control by the manager exercise and growth is the
non-financial elements for the employees.[ CITATION Nee131 \l 1033 ]
The purpose of any good reward beliefs are to more invite and motivated people and
attainment of the goal desire level of establish this goals most company are use
combination of the three major modules are reward basic pay, also called salary.
Encouragement pay whether inform of cash or non-cash such as stock and benefits
or non-financial incentive. The main task of the tasks is to create a pay program and
acknowledge and three of goal prevailing resource. Non-financial incentive also non
as non-financial incentive. [ CITATION Muh16 \l 1033 ]
Back ground of study:
The main restriction of the investigation is that this study only accommodations the
financial area of the Panjab. Addition control is that it reject many flexibles of
payment outstanding to less time reserve were also other control. Separately from
these control this research may provide that more efficiently help and then managers
to crease the employees presentation of their underlining. Unlike investigate research
strictly research is way vivid based on around period constrained form on your
research problem. The specific problem some few of research effort have addressed
highly turnover rate in employee banking industry. A problem that has undated the
industry long period and highly extra and training cost etc. Employee’s income less
is to good and bad. Some companies strength suppose for a highly unit of income
rate be occurs and extra cost are mostly considered in product. The mostly top level
organization rate of cost is also highly. The main problem of working force and their
mentally worried is increasing due to lack of compensation and benefit for the
employees. The last year study that identify the stockholders and round about the
non-financial information can moderates usually problem. Inappropriately, it is
regularly difficult to verify the data and information your available currently
information. This statement help to organization workforce and sustainable there
turnover and income of the organization and company earn more profit at the end of
the year. In other word the organization have showed that declining can be problem
including loss of personnel proper and failure of the remaining workers have done
more work pressure on employee of the organization. In fact the top level
performance of firm short term and long term through avoiding any short term
structural or operational problem and consistency that capability and old professional
relationship will commonly this strategy and enhance the interest of the relationship.
An organization will not work without involvement with the employees as the
employees could prime the organization to a better station in the highly reasonable
market at the moment. Salary is play also vital role in the employee performance.
This study focuses on the impact that salary, rewards and non-financial
compensation will be improvement for the employee’s performance.
Problem statement:
In Today good setting government are pushing to gain specific outcome by using
different method and to improvement of the organization and good control of poor
fitness. Some organization disagree right of staff which prove job and income in an
organization bust in this Era. Different cases and articles, to reduce income of
company are offering the different kind of sector and giving rewards & incentive and
to increase the employee performance. So we showed our research to determine
impact of incentives and rewards the job employee satisfaction.
Research Objectives and Question:
Objective:
1. To find out the impact of salary on the employees performance.
2. To investigate the relationship between reward and employee performance.
3. To identify the effect of non-financial compensation on employee performance.
Question:
1. What is realize impact of salary on the employee performance?
2. What is investigating the relationship between reward and employee
performance?
3. What is identifying the effect of non-financial compensation on employee
performance?
Significance of study:
A good employees feel better than the value of the company or organization is working
also enhance the better work. They are comfort busy significance by their employees &
there occupation self-evaluation also taking care by their generally employees are the
more big share of company like machine of the company which different and funds
incentive know organization scene and allocate any purpose with its profession .The
significance of inspiring employees cannot sufficient in companies setting background
incentive of employees highly creative and more efficiency avail and willing to execution
attraction in the organization .The employees performance more effective then more
employees’ of organization leadership of gain of increase the performance. So the
performance of the employees has positive impact.
Literature Review:
The relationship in the middle of remunerates and worker's execution ponder when
to clear up the relationship between compensates .When representatives performed
well and it’s remunerate as nosy and extraneous remunerate .All association taking
into account worker work or execution. Representative's execution is a key of
association ubiquity. As that; when a presentation arranged by various worker
however select just whose well planned.[ CITATION Ser121 \l 1033 ]
The investigation of reimburse is a stand out amongst the most imperative
component to welcome the workers. This exploration of compensate rely on upon
various sort of remunerates, for example, wages, pay, and money related backing.
Whose worker will secure association future that additionally association secure
representative future.[ CITATION AlG12 \l 1033 ]
The reason for this study was impact of pay and compensate on execution at Nakuru
workers. In legislature of Nakuru was embracing inquire about outline an illustrative;
an overview was led through 11 sub regions. The study in which utilized arbitrary
inspecting strategies was utilized on an objective of populace 6400 respondent that
sort of geologically territory. Information was gathered in the base of essential
research through Questionnaires and meetings plan; with a mix of open and close.
The concluded of Nakuru Government worker have solid connection with
remunerates.[ CITATION She15 \l 1033 ]
The study in which decide effect of representative inspiration on hierarchical
perform chose firms. 17 producing associations over the senatorial zones of
Anambra state and respondents were chosen 103. The populace size was 120
representatives of select from assembling firms. A study in which rank connection
coefficient was utilized and test three speculations .The scientist recommend that
more ought to be directed impact and relationship of compensates workers'
performance.[ CITATION USM13 \l 1033 ]
The exploration question is to recognize distinctive component finding natural and
extraneous compensates in the light of Herzberg's two element hypothesis and their
effect on saving money representatives. Information was accumulated by short frame
MSQ (Minnesota Satisfaction Questionnaire). MSQ overview for assessing the level
of fulfilment through characteristic and outward compensate given to 200 bank
representatives in Pakistan, takes premise for investigation and aggregate of workers
165 secured through poll. Programming was utilized as a part of which SPSS v
16.0[ CITATION Ism13 \l 1033 ]
This study aims to examine the impacts of rewards and motivation using perceived
amount of rewards on job satisfaction in both public and private banks of Saudi
Arabia. In this study 568 employees were participated from both sectors. To conduct
the study regression analysis was developed to test the relationship between rewards
motivation and job satisfaction. Results indicate that (1) rewards have positive (2)
significant of motivation is positively related to the job satisfaction (3) rewards have
a positive significant effect on job satisfaction. The results are inconsistent with
previous studies conducted to analysed relationship of reward motivation and job
satisfaction in different contexts. The study simple random population of
568 employees were selected out of which 351 respondents
completed the survey questionnaire with response rate of 62%. The
sample included 68% male and 32% female. This high ratio of male
participation is because of easy access to males than females in
Saudi society. 43% were aged between 25 to 40 years; however,
only 40% had upper secondary school qualification because most
of the respondents were performing non-managerial roles 28% has
been working for 4 to 5 years.[ CITATION Kha12 \l 1033 ]
Salary
Employee
Rewards
Performance
Non-financial
Compensation
1 Participants
the data was collected from different branches of HBL. Approximately 03 branches of
HBL were included to collect data. Questionnaires were distributed among the full time
working employees of banks and they were selected randomly.
2. Measurement Scale:
all the questions were extracted from already developed questionnaires which were
published in different journals and articles. All the questions were designed in Linkert
scale (1=Strongly Disagree, 2=Disagree, 3.Neutral, 4. Agree, 5. Strongly Agree).
All the questions regarding to each variables are given below.
3. Salary:
To measure the impact of salary, 08questions were extracted from “Employees’
Perception towards Compensation and Benefit Policy: The case of some selected
Government Higher Education Institutions were further modified.
4. Rewards:
the questions related to Rewards were extracted from “effects of rewards systems on
employee’s performance.
5. Indirect Compensation:
The questions regarding to Indirect Compensation were extracted from “the impact of
indirect compensation on employee productivity: a case of “University of Okara ” were
further modified.
Research hypothesis:
H1: There is a significance relationship between salary and employee s performance
H2: There is a significance relationship between rewards and employee s
performance.
H3: There is a significance relationship between Non-financial compensation and
Employee performance.
Research Methodology:
Response Rate:
As the questionnaires were distributed personally, therefore the response rate was 100 %.
Population Size
the population size was consists of 03 branches which were selected randomly.
Sample Size
the sample size was consists of 150 respondents who were selected randomly.
Procedure
Descriptive and analytical techniques were used for the analysis of data. The process of
analysis was carried out in SPSS 20.0 version for windows. Among the descriptive
analysis, mean and standard deviation were applied. Among the analytical techniques,
correlation and regression were run to measure the impact and relationship among the
variables.
Data Analysis:
Reliability Analysis
Cronbach Alpha
Reliability Statistics
.661 24
Correlation
N 74 74 74 74
** **
Pearson Correlation .932 1 .961 .795**
Salary Sig. (2-tailed) .000 .000 .000
N 74 74 74 74
** **
Pearson Correlation .912 .961 1 .785**
Nonfinancial
This table Sig. (2-tailed) .000 .000 .000
compensation
shows the N 74 74 74 74
correlation Pearson Correlation .713**
.795**
.785**
1
Employee
analysis of Sig. (2-tailed) .000 .000 .000
Performance
the N 74 74 74 74
variables
**. Correlation is significant at the 0.01 level (2-tailed).
salary,
rewards, indirect compensation and employee performance. The relationship among these variable
is given below.
Regression:
1.1 Rewards Regression
Model Summary
The data analysis of the variable salary show the regression (0.713).the standard in which
show R square 0.508 and adjusted R is 0.501 and standard error of the estimate 0.20944.
ANOVAa
Regressio
3.261 1 3.261 74.349 .000b
n
1
Residual 3.158 72 .044
Total 6.419 73
Coefficients
(Constant
1.551 .090 17.300 .000
1 )
Model Summary
ANOVAa
Model Sum of Df Mean F Sig.
Squares Square
Total 6.419 73
Coefficients
(Constant
1.596 .066 24.070 .000
1 )
Model Summary
ANOVAa
Model Sum of Df Mean F Sig.
Squares Square
Regressi 115.88
3.959 1 3.959 .000b
on 2
1
Residual 2.460 72 .034
Total 6.419 73
Coefficients
QUESTIONNAIRE
Dear Respondent:
My name is Abdul Qadir. I am the student of MBA Master of business administration in University Of
Education, Okara Campus .I am conducting a research on the impact of compensation on employee’s
performance to participate in decision making program.
Name: Gender:
Age: Post:
City: Bank:
This section of the survey will consist of questions related to your job and the workplace. Please respond to
each question as it applies to you, based on the following scale:
3 - N/u = Neutral/Undecided
4-A=Agree 5 - SA = Strongly Agree
Bibliography
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SYSTEM ON THE PERFORMANCE OF. European Journal of Business and Social
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PERFORMANCE. Kuwait Chapter of Arabian Journal of Business and Management, 3(8),
14-28. Retrieved March Friday, 2016
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from www.iiste.org
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EMPLOYEE’S. Business Intelligence Journal, 4(2), 327-334. Retrieved March Wednesday,
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Bibliography
Bello Olaide Wasiu, A. A. (2014, Apirl). REWARD SYSTEM AND EMPLOYEES
PERFORMANCE. Kuwait Chapter of Arabian Journal of Business and Management, 3(8),
14-28. Retrieved March Friday, 2016
Mashal Ahmed, A. B. (2014). The Impact of Indirect Compensation on Employee performance:.
Public Policy and Administration Research, 4(6), 27-31. Retrieved March Sunday, 2016,
from www.iiste.org
Mehta, M. A. (2014, March). Impact of Monetary Rewards on Employee Performance and Job
Satisfaction. INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN
BUSINESS, 5(11), 276-283. Retrieved March Monday, 2016, from ijcrb.webs.com
Mr. Abdul Hameed, M. R. (2014, February). Impact of Compensation on Employee Performance.
International Journal of Business and Social Science, 5(2), 302-309. Retrieved March 2016,
from www.ijbssnet.com
Nadia Sajjad Hafiza, S. S. (2011, July). RELATIONSHIP BETWEEN REWARDS AND
EMPLOYEE’S. Business Intelligence Journal, 4(2), 327-334. Retrieved March Wednesday,
2016
Neelam Bari, U. A. (2013, July). Impact of Non-Financial Rewards on Employee Attitude
&Performance. International Journal of Scientific & Engineering Research,, 04(07), 2554-
2559. Retrieved March Sunday, 2016, from www.ijser.org
Payam Gohari, A. A. (2013, July). THE RELATIONSHIP BETWEEN REWARDS AND
EMPLOYEE PERFORMANCE. INTERDISCIPLINARY JOURNAL OF CONTEMPORARY
RESEARCH IN BUSINESS, 5(3), 543-570. Retrieved March Sunday, 2016, from
ijcrb.webs.com
Saira Yousaf, M. L. (2014). Impact of Financial and non Financial Rewards on Employee
Motivation. Middle-East Journal of Scientific Research, 21(1990-9233), 1776-1786.
Retrieved March Friday, 2016