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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

A STUDY ON THE IMPACT OF REWARDS ON EMPLOYEE MOTIVATION IN THE TELECOMMUNICATION SECTOR OF PAKISTAN
Farheen B. Zaidi 1, Zahra Abbas 2

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VOL 3, NO 3

Abstract A good reward system is necessary to motivate the employees of an organization. This study was conducted in order to investigate the impact of rewards on the motivational level of employees of telecommunication sector of Pakistan. The impact of three independent variables rewards, monetary rewards and non-monetary rewards on the dependent variable motivation was studied. Four dimensions of motivation, focus, determination, effort and satisfaction were considered for the development of theoretical framework. A total of 292 questionnaires were returned fully complete. The research study showed that there exists a strong positive relationship in rewards and motivation among the employees. It was concluded that monetary rewards have greater impact on motivation of employees than the non-monetary rewards. Significant differences in rewards offered to employees and motivation level were found in the analysis of comparison of means with respect to gender, age group, marital status, working duration in the organization and salary. Keywords Focus, Determination, Monetary Rewards, Non-Monetary Rewards, Motivation, Rewards . INTRODUCTION "Motivation is the art of getting people to do what you want them to do because they want to do it." (Eisenhower) Rewards whether monetary or non-monetary can be used as significant tools for increasing the motivation of an employee. Rewards are a positive step towards the improvement of an employees performance as they boost his morale. Rewards help in increasing the frequency of an action performed by the employee of an organization, (Zigon, 1998). The desire or motivation is necessary for the performance of an activity. Kleinginna (1981) defined motivation as a internal response or condition that boosts the behavior of an individual in giving it a direction, it can also be said as a force or a desire that gives invigorates the behavior of a person who is goal oriented. (Hutti, 2001) Organizations performance is dependent on the employees who work for it, so in order to get the better and quality output; rewards contribute a lot in this part, so it is essential for organizations managers to make effective and attractive reward programs to motivate their employees, (Deeprose, 1994).
The telecommunication sector of Pakistan has shown tremendous growth in recent years and its all because of using up to date technology and the adoption of competitive and innovative human resource practices. For having the competitive advantage for any business human resource is basic source to get it, (Brian E. Becker, 2006).
1

F.B. Zaidi, is with the Institute of Business & Information Technology, University of the Punjab, Lahore 54000 Pakistan 2 Zahra Abbas, is graduating student of Master in Business & Information Technology from Institute of Business & Information Technology, University of the Punjab, Lahore 54000 Pakistan COPY RIGHT 2011 Institute of Interdisciplinary Business Research

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The organizations in the telecommunication sector of Pakistan are the structures that provide their services supported by the human resources. The most important factor in the delivery of the best quality service is the motivation of the employees; on the individual level as well as on the group level. In todays world of competition to deliver best service in order to satisfy customers it has become very difficult; in fact organizations take it as a challenge to motivate employees in order to get best output from them. The telecommunication sector of Pakistan plays a powerful role in its economy. Excellent professional services delivered by the employees of the telecom sector of Pakistan can create an affirmative and endless image in the minds of their customers. Employees that are motivated and are fully aware of the organizations goals, and know that organization will provide those benefits when they will achieve the goals, they will divert their all hard work and devotion towards those goals. (Roberts, 2005). The telecommunication sector of Pakistan is offering several benefits and rewards to its employees; so that employees feel motivated and remain satisfied with their jobs and improve their performance in order to achieve organizational goals.

Objectives
The basic objectives for carrying out this research were; To measure the impact of rewards in the most fast growing sector of (a) Pakistan i.e. Telecommunication sector Pakistan on the motivation of its employees. To measure which type of reward i.e. monetary rewards or non monetary (b) rewards cause more motivation among the employees of telecommunication sector of Pakistan. To measure whether there are significant evidences of having different (c) motivational levels on the basis of demographic variables or not. To determine is there any difference or not in rewards that were being (d) offered to employees on the basis of demographic variables

Literature Review
It was in the past when there was a permanent guarantee for the job and in return employees used to give the organization the loyalty, best output etc. since its a dream now, this indicates that rules of working in the organizations has changed and now the organization should understand that what are the motivational needs of the employees, (Harris, 1996). Employees are educated, highly skilled and enable to execute their duties in such a manner that they can achieve the goals of the organization, therefore, the management of organizations should consider its employees as the most valuable asset, and in order to get best and maximum from this valuable asset management should know that what is it that motivates the employees so much that they deliver their best to the organization, (Lawler III, 2003). There are two main factors that reflect the importance of rewards in the eye of an employee of the organization, (Lawler III, 2003). These two factors are as follows; a) Firstly, in how much quantity the reward is being given to an employee? Is it sufficient enough?
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b)Secondly, how much is importance of that particular reward in the eyes of the employee that is being given to him. A. Rewards In order to treat the employees of the organization right, rewarding them properly is one of the important 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. Rewarding for good performance encourages employees to continue their performance and improve their skills and knowledge day by day to contribute positively towards organization, (Lawler III, 2003). For improved and better output from the employees rewards act as catalyst. Rewards are part of the organization and management should pay special attention towards them; rewards should be quick, significant, related to performance, compatible with job measurement and irrevocable. Rewards should be given fairly, if there is some factor of unrealistic distribution of rewards like giving promotion of the favoritism basis, it will have a negative impact on the motivation of the rest of the employees. A list of points that a reward system must have in order to have a direct and positive impact of rewards in the motivational behavior of the employee, (Wilson, 1994), these are as follows;
(i) Rewards should be given on achieving certain desired goals rather than all the way without any condition (ii) They should be formulated in such a manner that it has some meaning and value in the eyes of employee (iii) They should be given to every employee of the organization

Getting the satisfaction of the employees over the rewards that are being offered to them is a difficult task, organization has to learn to manage those things which creates feeling of dissatisfaction among employees, (Searle, 1990).
B. Types of Rewards

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 solid reward that create an impact on monetary position of the employee, (Syedain, 1995). There are two types of rewards monetary rewards and non-monetary rewards. Employee reward programs design requires a balance between monetary rewards and non-monetary rewards to provide incentives and benefits to the employees. Good organizations make a proper reward management system for their employees; and good reward management system while deciding rewards for the employees consider both financial and non-financial rewards because an ideal reward system doesnt ignore any of the attribute because every employee has different cause of motivation, (Armstrong, M., & Murlis, H., 1991).
1. Monetary rewards 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 outstanding performance in a difficult
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situation or delivering a project report in the best way (Marcia Moore, M.S.S.W. , 2010). The monetary rewards are called as the tangible awards, (Adam, 2010). Money is an important factor in motivating people as we live in a money motivated world. According to Peter Drucker (1974), monetary rewards have so much importance that if no proper attention is paid to them or ignoring them will act as de-motivator. They are now becoming the rights of the individuals, (Employee Rewards).
2. Non-Monetary Rewards Non-monetary awards includes certificate, a word of thanks from supervisor or manager, flexible schedules, a day off, acknowledgment of birthdays, and free lunches or dinners to celebrate team work success, (Marcia Moore, M.S.S.W. , 2010). The nonmonetary rewards are called as the intangible awards, (Adam, 2010).

Non-monetary rewards play an important role in improving employee performance. Using proper attractive and communicative method of non-monetary rewards leaves a positive impact on the employees and improves employees performances in different dimensions. Such types of awards are inexpensive to give to employees but worth a lot when employees receive them, (Ryan). Nelson (1994), states that 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 said that they feel more motivated and happy when their manager appreciates them, (Ryan).
C. Motivation

Motivation is derived from a Latin word, movere, which means to move, (Romando, 2007). Motivation is derived from a word motivate, which means to move, push or persuade to act for satisfying a need. Further motivation can be explained as acting of such forces within a person that cause a stimulation of effort, direction and goal direction, (Dr. Green and Butkus, 1999) . Mol (1992), defines motivation as the total involvement of a person in his tasks to carry out with dedication, devotion, happiness, excitements, and voluntarily, (Khan, 2010). Some employees are self motivated; they have passion that they want to do something, something creative, something remarkable without the concern of any external powers, (Harris, 1996). He used the word, heat-power for such self-motivated people; he defined this term heat-power as passion of an employee excellence. Organizations which hire such employees have a great advantage that they dont need to pay special attention on the employee reward system as the employees are self- motivated, in actual its their hearts that motivate them. Such kind of employees are not required to be managed, such employees work in the proper direction with a motive to do something their heart wants. But this thing no longer is common among employees; organizations need something that can motivate employees. The basic motive that let an individual to work or to do something is nothing else than the motivation. Every individual has different reasons to get motivated, but this is not essential that one thing that is motivating one employee many also exactly motive another employee in the same way. Different employees have different motivational levels towards different rewards, and a good management should keep this thing in mind while designing the rewards for employees, (La Motta, 1995).
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Basically motivation is a factor with the help of which the organizations can get best of their employees and this can be achieved only with the help of the proper reward system for employees. Every employee of the organization needs some level of motivation else than the self-motivation that can keep pushing one to perform his job, duties and tasks in the proper manner. It will get really difficult for the organization to carry out its work if the employees are not properly motivated. Employees with low motivation level, can cause the low office morale and resulting in workplace conflict. Thus, motivation is a main factor, which should be created among employees at the right time to achieve goals, (Adams, B., 2001).
1. Content Theories

Content also called as need theories of motivation basically emphasis of these theories is on internal factors of an individual that strengthens and gives the direction to the behavior. 1. Maslows Hierarchy of needs 2. Alderfers ERG Theory 3. Frederick Herzbergs Motivator hygiene theory 4. McClellands Learned needs theory
2. Process Theories

These theories of motivation focus on known human decision 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. 1. Victor Vrooms Expectancy Theory 2. Equity Theory 3. Gary Latham and Edwin Lockes goal setting theory 4. B.F. Skinners Reinforcement Theory
D. Importance of Rewards and Motivation

The managers of the organizations always look for such ways that can create motivation among the employees at their workplace so that they can contribute to the goals of the organization at its maximum, (Andrew Ballentine, Nora McKenzie, Allen Wysocki, and Karl Kepner, 2003). The satisfaction or the dissatisfaction levels of an employee are directly proportional 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 dissatisfy from his job, so HR management should take steps to motivate employees otherwise employees will not perform up to expected standards of the organization. Cheng (1995) says that it is one of the largest challenges 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, (Khan, 2010).

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Motivational arousal causes an employees interest to complete its project, achieve 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, (La Motta, 1995). 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. There are three levels of employee motivation, (Mosley, Megginson & Pietri, 2001). They are as follows; Behavior: 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. Persistence: the level of willingness to work regardless of difficult situations. s There are many benefits of rewards not only for the employees but for the organization itself, he called organization as employer, (Adam, 2010). According to him benefits of the rewards to employees are; employees start enjoying their work because they know that their work will be appreciated and will be properly responded by the authorities, it gives them satisfaction that their efforts are properly rewarded, they feel proud to work for that organization because the company is valuing them, they start giving their best because they know that better productivity will lead them to get the rewards. According to him the benefits to the employers for giving the proper rewards are that; the organization gets well educated, trained and highly qualified employees for work, when the productivity is good then the financial burden of the organization gets lower, employee productivity level increases and becomes more perfect and also the efficiency. When employees of an organization are properly motivated that can help in reducing the typical office politics and conflicts, and together all employees do work in a happy team which in return give better productivity and a good, pleasant and comfortable working environment. By this, not only the organizational goals can be achieved but also employees remain happy and give their best to the organization, (Adams, B., 2001).
E. Monetary Rewards as motivator Verses Non-Monetary Rewards as motivator

The recent research proves that mostly monetary rewards are basic cause of the motivation among employees, and in order to get those monetary rewards employees work harder and try to improve their job performance. But this is not all, he reports that there are some people who say that monetary rewards are insulting and they are discouraged by these awards. Every employee cannot be motivated by monetary rewards; the people above who did not like monetary rewards are those people who are motivated by the nonmonetary rewards, according to them the required or desired level of work performance can be obtained by making environment good, (Adam, 2010). On the other hand it is equally important to keep notice that in every race of life money is very important; everyone works in order to earn some money, there is no one who provides his services without getting any sufficient monetary reward. It is real difficult to identify that which employee is motivated by which kind of reward. This is a COPY RIGHT 2011 Institute of Interdisciplinary Business Research 983

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fact that we live in a world that is motivated by money; there is no human resource management strategy that can replace the importance of monetary reward. Keller says that self motivation is the only motivation that can prevail in the long run but it is equally important that merit should be also rewarded in order to encourage and keep it sustainable, (Adam, 2010). The reward system that is being offered to the employees should be a strategic reward system that offers its employees a balanced structure of rewards, balanced in means of monetary and non-monetary rewards, (Sarvadi, 2005). There are four basic components of a most of the reward system, they are; Incentives or compensations, other benefits, Appreciation, and Recognition. 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 as compare to training, and these both gives a positive impact on their job satisfaction and motivation, (Zubair Aslam Marwat, Tahir Masood Qureshi, Muhammad I Ramay, 2007).
F. Past Research Results

The various researches that have been carried out in various sectors in different countries of the world report that rewards have a positive impact on employee motivation. During the research work several searches have been made also in comparison of motivation and rewards with work satisfaction and job performance. A research was carried out by Carolyn Wiley in 1994 in USA on, What motivates employees according to over 40 years of motivation surveys. The author has very beautifully summarized all the surveys in previous decades. Since 1930s employee attitude surveys are being carried out in businesses to know what actually motivates employees. In 1940s the main question that was searched for, why do workers work?, if a company knows its answer, it can boost up them to perform well. Employee performance can be determined by three main things, ability, work environment and motivation. If there is lack of skills and ability it can be fulfilled by proper training programs, if there is some problem in work environment it can be watched and monitored and can be rectify, while about the motivation only employee can tell that what he wants? Does he want more salary? Redesign job? Or more bonuses on achieving goals? Surveys have been carried out in years 1946, 1980, 1986 and 1992. The results are as follows; TABLE I EMPLOYEE SURVEY ABOUT MOTIVATIONAL FACTORS
Year factors 1946 1980 1986 1992 Appreciation Interesting Work Interesting Work Good Wages Most important motivational

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In 1946 America came out the depression, the employees were more interested that their work should be appreciated. By 1980 and 1986 new technology had come new in market, i.e. computer technology, employees were now in search of interesting work, to do something new, to learn something new. While as in the past years the standards of living got higher in 1992, the employees rated good wages as motivational factor because if they get good wages they can fulfill their needs. Demographic (gender, age, employment status, annual income, occupational category) information of the employees was also taken. The results are as follows; 1. Female employees preferred to appreciation, male preferred interesting work.. 2. There was not any significant difference was found on age basis in motivation level, hence it was concluded that good salary is a motivator to all regardless of age. 3. Significant differences were found among groups on salary basis. A research was carried out in Malaysia by Islam, Rafikul and Ismail, Ahmad Zaki in 2004, the search was not specified to any special sector it was based on all organizations, they took the demographic variables gender, race, age, education, marital status and designation, on the other hand they took variables Cash, Certificate, Merchandise, Medal, Write-up, Praise, Travel, Vacation, Training, share and power. The research observed that half of the sample population (46.79%), preferred Cash as the Number 1 reward they want no matter what gender, age group, race, marital status, or designation they belong to. On the next number it was vacations and training. The authors concluded that, due to many reasons the standard of living has been gone up, the people of Malaysia needs money in order to maintain their standards. Although smany past researches have shown recognition is one of the most liked attribute of the employees but the result is different in case of Malaysia. A survey of Malaysia in the National daily News Straits Times in October, 2004 published that 42% of people consider raising the cost of living as their number one concern that is why they need money to raise it. A research work was carried out by Kalim Ullah Khan, on The Relationship between Rewards and Employee Motivation in Commercial Banks of Pakistan, he concluded that his research has shown that management should properly make the policies and strategies for rewarding the employees because every employee has different importance for the reward, however his study showed that there exists a positive relationship between rewards and motivation, and rewards have a positive impact on employee motivation. However, it was observed that everyone was rewarded at the same level rather than rewarding on individuals performance. Some employees complained that though rewards are announced but delivered on time, which effects the motivation level. The research showed the following results; Pearsons Correlation was carried out among different monetary and non-monetary rewards and motivation, the research was significant at p < 0.01, it showed that; TABLE II :PEARSON CORRELATION RESULTS
Payment Promotion Recognition Benefits Motivation 0.78 0.86 0.65 0.74

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The further research by Khan 2010, showed that; 1. Female employees were less motivated 2. Employees of age group 31-35 years were lowest motivated, whereas the age group of 45 and above were found highly motivated. 3. Married employees were found lower motivated 4. Those employees who were working for last 5 years were found least motivated 5. Those employees who had education for less than 12 years were lowest motivated. A research that has been carried out by Zubair Aslam Marwat, Tahir Masood Qureshi and Muhammad I Ramay on, Impact of Human Resource Management (HRM) Practices on employees performance, they specifically took a case of telecommunication sector of Pakistan. They took variables compensation, and training by human resource departments to check its impact on the employee performance. His results showed the correlations as follows;
Employee Performance 0.67 0.66

Compensation Training

This showed that the compensations impact is higher on employee performance, the better the compensation plans the higher the employee performance, and it closely shows that employees performance increases because his motivation level increases, it means compensation plans attracts employees. They further states that, their findings are similar to the finding of Qureshi M. Tahir (2006) and Singh K (2004), whose research results also showed a positive impact of compensation on employee performance and on organization, due to high motivation level of employees.
A research work was carried out by Roshan Levina Roberts in 2005 on, Relationship between rewards, recognition and motivation at Insurance Company in Western Cape. The research showed that there are varieties of factors that influence the motivation of the employee, the Pearson Correlation results at p < 0.01 are as follows;
Motivation Rewards Recognition 0.86 0.92

This research results show that employees are more motivated by recognition. The research that was carried out on basis of demographics (gender, home language, marital status, age group, race, designation, working duration) showed that;
1. 2. 3. 4. 5. 6. Females were rewarded lower and hence found low motivated. Xhosa speaking employees were low motivated. Married employees were not satisfied with the rewards they are getting and hence were low motivated. Employees belonging to age group of 41 to 50 years were found least motivated. African employees were least motivated. Clerical staff was low motivated.

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Theoretical Framework

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Fig 1. The Theoretical Framework

Theoretical Framework (Fig.1) was designed by keeping in mind Syedains (1995) work. Both monetary and non-monetary combine together and are categorized as rewards. He states that there are two schools of thoughts one that deals with monetary rewards and the other that deals with the non-monetary rewards. With the intention that employees will get reward (may be monetary or may be non-monetary), influences employees to put their more effort, determination, and focus on work showing his motivation to do something. Satisfaction becomes a part of motivation when he knows that his organization is valuing him, and in return he should give his best to the organization, these dimensions of motivation are defined by Mosley, Megginson & Pietri (2001).

Research Methodology Tool for data collection

The tool for data collection for this research was survey. And for the purpose of doing surveys questionnaire was designed. Questionnaires were spread out among the employees of telecommunication sector of Pakistan via mailing questionnaire and personal visits to their offices.

Design of Questionnaire
The research questionnaire consisted of two parts. The first part consists of personal information of the subject, such as gender, age, working experience, marital status, and salary. The second part was designed for the collection of data about the independent variable i.e. Rewards (Monetary Rewards/Non- Monetary Rewards) and the dependent variable i.e. employee motivation.
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The Likert scale was used for the collection of data. Likert scale is basically a 5point scale (Strongly Agree = 5, Agree = 4, Neutral = 3, Disagree = 2, strongly Disagree = 1) which consists of values from 5 to 1. (Likert, 1932)

Units of observation
The units of observation were the employees of different companies of telecom sector of Pakistan; Mobilink, Ufone, Telenor, Warid, Wateen, World Call, Pakistan telecommunication Limited. The sample includes all categories of employees.

Sample Size
A total of 375 questionnaires were distributed out of which 292 were returned completely filled. Success rate of filled questionnaire was 77.86%.
Analysis Descriptive Analysis

The overall rewards range from minimum value of 2 to maximum value of 5 with a mean of 3.8248 which indicates the value of rewards that were being offered to the employees of telecommunication sector of Pakistan. This mean value of rewards shows that the rewards offered to the employees were good. The minimum value for the variable motivation was 2 and the highest value was 5, with a mean of 4.0029, which generally shows that employees were motivated.

Inferential Analysis
Hypothesis I
There is a relationship between rewards and motivation among the employees of telecommunication sector of Pakistan.

Technique: For checking the validity of the hypothesis that there is a positive relationship between rewards and employee motivation regression analysis was carried out. Correlation: Pearsons Correlation is indicating a correlation of 0.845 between rewards and motivation, where the ideal value for R should be 0 R 1 where as the range is -1 < R <1. The correlation is significant at p < 0.01. This indicates that rewards and motivation are strongly positively correlated, as it is near to 1 and also it is positive. Thus the hypothesis stands true that there exists a positive relationship between rewards and motivation. R square: R2 0.715 means that 71.5% of the total variations in the dependent variable i.e. motivation is because of the independent variable i.e. rewards and the rest of the 28.5% variations are because of those factors which are held constant. Thus, the value of R2 indicates that it is a good fit.

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Cross tabulation table: Estimate of linear Equation:

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Relationship Agree with rewards & Motivated Strongly Agree with rewards & Highly motivated Neutral about rewards & neutrally motivated Disagree with rewards & low motivated

%age 58.6% 5.5% 9.2% 0.3%

Hypothesis II Monetary rewards cause more employee motivation than the non-monetary rewards in the telecommunication sector of Pakistan.
Technique: Pearsons Correlation Coefficient was used and multiple linear regression equation was also estimated.

Y=+X Where, Y = motivation X = rewards Y = 0.810 + 0.842 X This positive sign of shows that there is a positive relationship between X (rewards) and Y (motivation). If X (rewards) go up by 1 number Y (motivation) will increase up by 0.842 points.

Monetary Rewards Non Monetary Rewards

Motivation 0.801 0.774

**Correlation is significant at the 0.01 level

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Both monetary and non-monetary rewards have a considerable impact on employee motivation, but monetary rewards have more strong correlation with motivation than the non-monetary rewards..
Estimation of multiple linear equation:

Y = 1 + 2 X1 + 3 X2

Y = 0.800 + 0.466 X1 + 0.376 X2

Where, Y = Motivation, X1 = Monetary Rewards, X2 = Non Monetary Rewards The value of 2 is greater than the value of 3 which again shows that monetary rewards have stronger impact on motivation than non-monetary rewards.
Technique for test of the hypothesis: For the analysis of the differentiation in employees work motivation levels and rewards based on the demographic variables ANOVA test was carried out to know whether there was difference in the means or not and then with the help of cross tabulation tables and graphs of mean it was observed that which group was more motivated and satisfied with rewards and which is less.

Hypothesis III
There are significant differences in rewards importance and employee work motivation with respect to gender in the telecom sector of Pakistan.

Among the sample 67.8% were male employees while 32.2% were female employees. The comparison of means of motivation and rewards with respect to gender shows that the test is significant 87.2% (p < 0.15), and 99.93 %( p < 0.05), respectively that there exists a difference in motivation and rewards with respect to gender. 56.1% male employees were found to be motivated and agreed with the rewards the they were getting from their organization while 63.8% female employees were appeared to be motivated and satisfied with the rewards.

Hypothesis IV
There are significant differences in rewards importance and employee work motivation with respect to age group in the telecom sector of Pakistan.

72.3% of the sample belonged to 20 29 years age group, 21.9% were between ages of 30 to 39, 4.8% were from age group of 40 to 49 years, while 1% belonged to the age group of 50 and above. The comparison of means of motivation and rewards with respect to age group shows that the test is significant 92.9% (p < 0.10), and 99.94% (p < 0.01), respectively that there exists a difference in motivation and rewards with respect to age group.

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66.7% employees appeared to be highly motivated and satisfied with the rewards belonged to age group of 50 and above, while only 3.1% employees of age group 30 39 years appeared to be satisfied with rewards and highly motivated.

Hypothesis V
There are significant differences in rewards importance and employee work motivation with respect to marital status in the telecom sector of Pakistan.

On the basis of marital status of the employees it was found from the sample that 67.8% of the employees among the sample were married, while the rest of 32.2% were unmarried. The comparison of means of motivation and rewards with respect to marital status showed that the test is significant 85.5% (p < 0 .15) and 86.3% (p < 0.15), respectively that there exists a difference in motivation and rewards with respect to marital status. 60% single employees were satisfied with the rewards and were motivated while only 50% married employees were found to be satisfied with the rewards and motivated.

Hypothesis VI
There are significant differences in rewards importance and employee work motivation with respect to working duration in the telecom sector of Pakistan.

Among the sample 17.5% worked for less than 1 year, 41.8% worked for 1-2 years, 30.5% worked for 3 to 5 years, 10.3% worked for more than 5 years. The comparison of means of motivation and rewards with respect to working duration showed that the test is significant 92.4 %( p < 0.10) and 97.6% (p < 0.05), respectively that there exists a difference in motivation and rewards with respect to working duration. 21.6% employees of work duration less than 1 year were found to be agree with rewards and strongly motivated, 16.7% employees of work duration more than 5 years were agree with rewards and strongly motivated, 10.1% employees of work duration of 35 years were agree with rewards and strongly motivated, where as only 9% employees of work duration of 1-2 years were agree with rewards and strongly motivated.

Hypothesis VII
There are significant differences in rewards importance and employee work motivation with respect to salary in the telecom sector of Pakistan.

Among the sample 0.7% were getting salary less than 15,000; , 46.2% were getting salary between 16,000 to 30,000, 34.9% were getting salary between 31,000 to 45,000, 14% were getting salary between 46,000 to 60,000, 4% were getting above 60,000 This shows that by the comparison of means of motivation and rewards with respect to salary shows that the test is significant 99.9% (p < 0.01) and 99.9%( p < 0.01) respectively that there exists a difference in motivation and rewards with respect to salary. There were 0% employees with strong motivation level and highly agree with the rewards among those who were getting salary below 15,000, all of the employees who COPY RIGHT 2011 Institute of Interdisciplinary Business Research 991

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were getting salary below 15,000 were found to lie in neutral category, while those who were getting salary above 60,000 were found to be highly motivated and agreed with the rewards i.e. 25%.

Comparison
The biggest problem that the businesses are facing today is how to motivate the employees in order to get best from them. Since the past few decades the organizations are tremendously using goal setting and management by objectives approaches, and in return reward the employee with sufficient rewards. Organizations are working hard to get the higher performance standards, and as the telecommunication sector is a service sector, here everyone has to deal with customers all the time, one annoyed customer is a great loss for the company, in order to achieve the goals the employers are depending on their employees, and organization here should understand that why would employee will work positively to achieve the organization goals? What is the thing that can motivate him? These are some comparisons with the studies conducted earlier by researchers.
Agree with rewards & Motivated Telecommunication Sector of Pakistan People at Work Survey by Mercer Human Resource Consulting in USA, 2002. 58.6% 49%

Correlation comparison
Researches Monetary Rewards 0.801 Payment =0.78 Benefits = 0.74 = 0.86 =0.65 Promotion Non Monetary Rewards 0.774 Recognition

Telecommunication Sector of Pakistan The Relationship between Rewards and Employee Motivation in Commercial Banks of Pakistan. By Kalim Ullah Khan (2010) Impact of Human Resource Management (HRM) Practices on employees performance (A Case of Telecommunication Sector). By Zubair Aslam Marwat, Tahir Masood Qureshi, Muhammad I Ramay (2007) Relationship between rewards, recognition and motivation at Insurance Company in Western Cape. By Roberts (2005)

0.67

0.66

0.86

0.92

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Conclusion The correlations positive sign and scatter plotting shows that the relationship between rewards and motivation is positive, and motivation is dependent on the rewards provided to employees. The regression line for the estimation of motivation shows that there exists a linear relationship between rewards and motivation, the better the rewards the higher the motivation. 58.6% employees are happy with the rewards and are motivated. Thus, rewards are very important for the employees, in the absence of rewards the motivation level of the employees will fall down sharply. In order to keep motivation level of employees higher rewards should be proper given.

The correlation exists positively both between monetary rewards and motivation, non-monetary rewards and motivation. But the higher correlation exists between monetary rewards and motivation than non-monetary rewards and motivation. From the multiple linear regression equation it can be concluded that the value of 2 is greater than 3. Hence employees are more motivated because of monetary rewards than the nonmonetary rewards. Results on the basis of demographic variables are as follows;
Female employees found to be more motivated and more satisfied with the rewards than the male employees. 50 and above age group is highly motivated and satisfied with the rewards and age group of 30 39 years was least motivated among all age groups. Single employees were found more motivated than the married employees Employees who were working for less than 1 year are highly motivated and those who are working for 1 to 2 years were found to be least motivated. Employees getting salary more than 60,000 were highly motivated while those getting salary less than 15,000found least motivated

Recommendations
Pakistans telecommunication sector is spreading fast, there was a time when only one telecommunication company i.e. Pakistan Telecommunication Limited was ruling the industry, with the increase of mobile phone network and usage of internet many telecommunication companies came into being. Now, there is a huge competition among the companies to deliver the best services to their customers in order to satisfy them and maintain their competitive position in the industry. Delivery of best services means excellence in professional services; therefore companies should reward their employees in the best way so that employees remain happy and give their best to the organization. Companies should consider that a proper reward management system has a great power, it satisfies employees more and their will and desire to work with full devotion increases and they also try to improve their skills. In Pakistan as the research results indicates that monetary rewards satisfies people more than non-monetary rewards. The more highly rewarded employees, will be more motivated, and more satisfied from their job and from their life because monetary rewards are helping them fulfill their personal needs for leading a good life. Thus, employees remain more loyal to organization, and low desire for leaving the job. So, organizations should pay attention more towards that reward that is the main cause of motivation among the employees.

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So far telecommunication companies in Pakistan is continuously trying to follow proper reward system in their organizations, and this has been also depicted in the research, as the mean of the rewards that the employees are getting as discussed in descriptive analysis shows that it is good enough to satisfy them. However, creating a good balance between monetary and non-monetary rewards is also required, both of these should be carried out side by side, as by this proper reward system every employee can be satisfied, as different employees have different desires for rewards. It must be kept in mind while designing the rewards for the employees that motivation occurs among the employees when the reward is personalized and heartfelt. Future study in can be done to identify which specific monetary reward and non monetary reward cause more motivation in employees.

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