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Impact Of Motivational Rewards on Employees Essay

Internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal. Motivation results from the interaction of both conscious and unconscious factors such as the (1) intensity of desire or need, (2) incentive or reward value of the goal, and (3) expectations of the individual and of his or her peers. These factors are the reasons one has for behaving a certain way. An example is a student that spends extra time studying for a test because he or she wants a better grade in the class.

Companies can motivate employees to do a better job than they otherwise would. Incentives that can be offered to staff include increased pay or improved working conditions. Motivational theories suggest ways to encourage employees to work harder. A motivated workforce results in:

Increased output caused by extra effort from workers.
Improved quality as staff take a greater pride in their work. A higher level of staff retention. Workers are keen to stay with the firm and also reluctant to take unnecessary days off work. Managers can influence employee motivation in a variety of ways: Monetary factors: some staff work harder if offered higher pay. Non monetary factors: other staff respond to incentives that have nothing to do with pay, eg improved working conditions or the chance to win promotion.


Reward Systems is a vital aspect of any organization. They can actively engage and renew the overall sense of community and mission of an organization Reward systems according to Sziligyi [1981], are outcomes or events in the organization that satisfy work related needs. Rewards systems are much more than just bonus plans and stock options but while they often include intrinsic incentives, they also include extrinsic. A well-organized reward system will motivate and energize employees because it recognizes the achievements of employees . Reward system implemented by organization will influence employees’ behavior and attitude towards their job if the rewards satisfy their needs and help them to reach their personal goals. When employees desire to get the rewards, they will change their behavior in order to achieve the minimum level of performance required by organization.

Organizations often design and implement the reward system without linking it with the ultimate improvement of organization’s performance .Therefore, the reward system is unable to contribute significantly to the performance of an organization Motivation is such a factor that exerts a driving force on our actions and work. According to Baron (1983) motivation is an accumulation of different processes which influence and direct our behavior to achieve some specific goal. Motivation depends on certain intrinsic, as well as, extrinsic factors which in collaboration results in fully committed employees. Incentives, rewards and recognitions are the prime factors that impact on employee motivation.

The factors like incentives and rewards are the most preferred factors for employee motivation programs Rewards is one of the important elements to motivate employees for contributing their best effort to generate innovation ideas that lead to better business functionality and further improvise company performance both financial and non-financially. Today an organizations result is highly dependent on the employees work motivation. It is therefore important for a company to find out what motivates its employees so that it can plan a suitable reward system and gain better results. The right combination of intrinsic and extrinsic rewards can boost up the employees’ work motivation and enhance their commitment to the company.


KASBIT Private Limited is the parent body of KASBIT that was established in September 1999, through Registration with Securities & Exchange Commission of Pakistan, Government of Pakistan. It is the first Private Sector Institute of Higher Education that was registered as a Corporate body. Since its inception, KASBIT has achieved many a mile-stones that advocate its high standard, excellence and quality recognition. KASBIT is Chartered by the Government of Sindh and recognized by the Higher Education Commission of Pakistan, which has also awarded the highest category W(4) rating to KASBIT in recognition of the high educational standards that it maintains KASBIT is recognized by the Higher Education Commission of Pakistan and has been awarded the highest ranking of W(A) under whom the standards of educational institutions are scrutinized and evaluated in Pakistan. KASBIT became a member of the Association to Advance Collegiate Schools of Business (AACSB), which is based in the US to ensure the quality and continuous improvements in collegiate management education. KASBIT was certified by ISO in January 2002 in recognition of the high quality control system that it has in place. By this virtue, KASBIT became the first ISO-9001 Certified Degree Awarding Institute in the Private Sector of Pakistan.

Pakistan Navy established Bahria Institute at Islamabad and Karachi in the late eighties. These Institutes were aimed at providing quality and uninterrupted education up to Intermediate level, to the children of naval personnel on their transfer from one station to another and in turn to contribute to the cause of promotion of education at the national level. Over the years these Institutes grew in size and facilities, leading to the starting of BBA and B.Sc(CS) classes in 1995. These programs have since been upgraded to BBA (Hons), BCS (Hons) and MBA, MCS Program which were introduced in Fall 1997 as ‘evening programs’ run under the management of two independent ‘Institutes’ one each at Karachi and Islamabad respectively. The institutes are known as “Bahria Institute of Management and Computer Science” short title “BIM&CS” suffixed with the location i.e. Karachi or Islamabad. Objectives:

Bahria University, though very young, has the will and determination to develop and attain the objectives set forth below: Ensure academic excellence through quality education in disciplined and peaceful learning environments. Establish Campuses, Research Institutes, Schools and Colleges across the length and breadth of Pakistan to turn population explosion into knowledge based force. Prepare the younger generation to become future leaders and managers for a prosperous and educated Pakistan, through development of their mental, moral and professional strengths. Ensure academic excellence through quality education in disciplined and peaceful learning environments. Constantly monitor and upgrade facilities and update the curricula to keep pace with the emerging trends and technologies. Coordinate and provide facilities for exchange of knowledge and applied research in the newly emerging fields in collaboration with national and international Universities and research institutes. RESEARCH AREA:

Human resource (HR)

Find out to what extend does employees performance influenced by motivation

Decreasing Employees performance & satisfaction due to lack of motivational factors that drives employee’s productivity level at its best in educational sector.

1. What Is the Relationship between Employees Performance and motivation?
2. How many types of motivation that drives employee’s productivity?
3. What Is the Effect of Intrinsic motivation On Employee’s Performance?
4. What is the Effect of Extrinsic motivation On Employee’s Performance?
5. What measures can be taken to increase employee’s motivation level?
6. What are the factors behind the low productivity of employee?
7. What should be the behavior of employer towards the employee’s job satisfaction?


Intrinsic Motivation
1. Recognition
2. Learning opportunity
3. Career advancement

Extrinsic Motivation
1. Basic Pay
2. Performance Bonus


Insufficient Funds
Small sample size
Time barrier
Hardly possibility that organization will provide authentic information regarding their employees Research can take place only within the city
Being a student’s it’s hard to get perfect information regarding their whole scenario of problem

Respondents will not provide appropriate response
Employees will feel insecure while sharing their organizations’ point of view. Time conscious
City situations
This study will provide a better understanding to employers who have been facing employees low productivity level they can get a better understanding of how motivational factors can influence an employee’s performance level that ultimately helps in growth of organization. This study will helps organization to increase employees performance through a perfect combination of intrinsic or extrinsic motivational factors. And it can be use in different dimension of business where employers are facing low productivity of employees.


H1: Recognition has an impact on Employees Performance.
Ho: Recognition has not impact on Employees Performance.

H1: learning opportunity has an impact on Employees Performance.
Ho: learning opportunity has not impact on Employees Performance.

H1: Career advancements have an impact on Employees Performance.
Ho: Career advancements have not impact on Employees Performance.

H1: Basic Pay has an impact on Employees Performance.
Ho: Basic pay has not impact on Employees Performance.

H1: Performance bonus has an impact on Employees Performance.
Ho: Performance bonus has not impact on Employees Performance.

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