Needs improvement Your project needs improvement.

You are required to submit your project again with the suggested improvements when new assignment will be opened on VULMS. Ma e sure to improve the project according to the given guidelines. You need to discuss the !indings and provide the conclusion based on the data that whether your all the objectives are met or not See the analysis section and improve the project according to the comments as you have not calculated the mean "ollow the !ormat o! the project report. #mprove the literature review. You have not provided the data in raw !orm as well so send the e$cel sheet along with the project ne$t time You need to calculate correlation between the variables
Provide the interpretation of all the analysis in detail

You are strongly advised to call at the given below number !or !urther guidance i! you need any
I hope it will be clear if there is any confusion you are more than welcome to ask. Wish you good luck.

Final Project
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Rewards and recognition as a Source of Motivation in Engro

A REPORT SUBMITTED TO THE DEPARTMENT OF MANA EMENT S!IEN!ES" #IRTUA$ UNI#ERSIT% OF PA&ISTAN IN PARTIA$ FU$FI$$MENT OF THE RE'UIREMENTS FOR THE DE REE OF MASTER IN BUSINESS ADMINISTRATION

Submitted By Shoaib Akbar Mc100203540

Department of Management Sciences, Virtual University of Pakistan

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Acknowledgement
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I would like to articulate my greatest thanks to the people who have facilitate & supported me right through my project. I am thankful to my instructor for his incessant support for the project, from initial advice & acquaintances in the early stages of conceptual beginning & through ongoing advice & encouragement to this day. I yearn to thank my parents for their exclusive support and attention who enthused me and buoyant me to go my own way, without whom I would be unable to complete my project. At last but not the least I want to thank my wife who cherished me for my work and provoked me and finally to Almighty A A! who made all this possible...

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Abstract
Increasingly, organi"ations are reali"ing that they have to establish an equitable #alance between the employee$s contribution to the organi"ation and the %rgani"ation$s contribution to the employee. &stablishing this balance is one of the main reasons to reward and recogni"e employees. %rgani"ations that follow a strategic approach to creating this balance focus on the three main components of a reward system, which includes, compensation, benefits and recognition '(eeprose, )**+,. -tudies that have been conducted on the topic indicates that the most common problem in organi"ations today is that they miss the important component of recognition, which is the low.cost, high.return ingredient to a well.balanced reward system. A key focus of recognition is to make employees feel appreciated and valued '-arvadi, /001,. 2esearch has proven that employees who get recogni"ed tend to have higher self.esteem, more confidence, more willingness to take on new challenges and more eagerness to be innovative '3ason, /00),. 4he aim of this study is to investigate whether rewards and recognition has an impact on employee motivation. A biographical and 5ork 3otivation 6uestionnaire was administered to respondents '(e #eer, )*78,. 4he sample group '9: )7+, consists of male and female employees on post.grade levels 1 to )/. 4he results of the research indicated that there is a positive relationship between rewards, recognition and motivation. 9otwithstanding the insights derived from the current research, results need to be Interpreted with caution since a convenience sample was used, thereby restricting the generalisability to the wider population.

Table of Contents
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CHAPTER 1-------------------------------------------------------------------Page No. 06 INTRODUCTION CHAPTER 2-------------------------------------------------------------------Page No. 12 LITERATURE REVIEW CHAPTER 3-------------------------------------------------------------------Page No. 53 RESEARCH METHODOLOGY CHAPTER 4--------------------------------------------------------------------Page No. 57 DATA ANALYSIS CHAPTER 5--------------------------------------------------------------------Page No. 69 CONCLUSION, RECOMMENDATIONS & LIMITATIONS References-----------------------------------------------------------------------------------Page No.76 Appendix/Appendixes-------------------------------------------------------------------Page No.79

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Section I

CHAPTER No.1

INTRODUCTION
4oday an organi"ations 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. 4he right combination of im. material and material rewards can boost up the employees; work motivation and en. hence their commitment to the company. 4he aim of this study is to investigate and analy"e how well the current reward system Implemented &ngro helps generate employee motivation. 3ore specifically it aims to find out which aspects of the reward system functions well, and which aspects could be further developed and improved in order to increase employee satisfaction. &ngro has earlier conducted some smaller research on the overall job satisfaction of the com. pany, however only little research has been made on employee work motivation and at. attitudes towards the reward systems in the company. 4he driving force behind this study is to enable the employees of &ngro to give feedback on their work motivation and their attitudes towards the reward systems and hence perhaps increase their commitment to the company. #ased on this information, the research question of this thesis work is< ). 5hat motivates the employees of &ngro= /. 5hich reward system does the employees perceive the most motivating= >. !ow can the reward systems be further developed=

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1.1 Background of the project: &mployee motivation is one of the most essential parts in a company$s development and success. In order to maximi"e the overall performance of the company it is vital for an employer to understand what motivates the employees and how to increase their job satisfaction. It might however be challenging for a company to find out what motivates its employees, especially because different people are motivated by different things. A well designed and functional reward system is an efficient way to increase employee work motivation. 4he appropriate type of reward is developed in accordance to the company;s reward philosophy, strategies and policy. !owever, it might be challenging to find the right way to combine the company$s integrated policies and practices together with the employee$s contribution, skill and competence. 'Armstrong, )***, p. 1?*.180,. 1.2 Introduction of the organization(s) Engro !or(oration is a public company based in @akistan. 4he company has stakes in the fertili"er, food, power generation, petrochemicals, automation and terminal storage industries. &ngro underwent an employee led buy out in )**/. &ngro has made some former research on employee work motivation on a general bases. 4he research has however been concentrated on the employee$s satisfaction with the employer and the company, not the reward system. 4he unit of &ngro has had some problems with finding the right way to motivate its employees and hence the manager suggested if the author could conduct a survey that would especially Aoncentrate on how to increase work motivation and develop the reward systems.

1.3 Objectives: An organi"ation can use recognition as a strategic measure to show employees that their contribution to the organi"ation is recogni"ed, and in so doing, influence their motivation and job performance. #ased on the findings of the research, the
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organi"ation could improve and encourage the use of effective recognition in the feedback process of the performance management system. 4he findings of this research study could also influence the company to consider a more structured approach to recognition that would enable the high performance culture it strives to attain. 4he aim of this research is to investigate the role that reward and recognition plays in motivating employees. 4he study will explore which of these factors, reward or recognition, has a greater impact on employee motivation and satisfaction.

4he objectives of the study are< 4hese given below objectives were approved so use these. 1) to measure the over all motivation level of employees 2) To study the reward and recognition system of the organization 3) To determine the impact of rewards on motivation 4) To determine the impact of recognition on motivation. 5) To determine which factors contribute to wor motivation

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!HAPTER )

$ITERATURE RE#IE* *rite t+e ,iterature review a-out t+e to(ic on,. -. descri-ing t+e /ain varia-,es and +en a-out t+e re,ations+i( of t+e/ wit+ ot+er t+at .ou are going to stud.0
4he focus of this chapter is to provide insights to the theories that have shaped the understanding of motivation, by focusing on the content theories of motivation. 4he chapter proceeds with an in.depth presentation of a total rewards management programme and the support that a performance management process can provide to such a programme. Biven the focus of this research study, it is important to have a sound understanding of the meaning of rewards and recognition, as they are often used interchangeably, but the literature indicates that there are unique, tangible differences between these concepts. )01 INTRODU!TION 4oday$s reality is that people influence important aspects of organi"ational performance in a multitude of ways. @eople conceive and implement the organi"ational strategy, while the mix of people and systems mostly determines an organi"ation$s capabilities. Aompetencies are required to execute the strategy, and these competencies are primarily a function of the skills and knowledge of an organi"ation$s human capital. 4herefore, if an organi"ation is to treat its employees as its most important asset, it has to be knowledgeable about what it is that motivates people to reach their full potential ' awler, /00>,. !arris ')**?, maintains that the workplace rules have changed. 4he workplace realities of yesterday no longer exist and what was once a dream of a lifetime job
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guaranteed in exchange for lifetime company loyalty has died. As the workplace rules have changed, so too must the way organi"ations meet the new motivational needs of today$s employee. 4his changing work environment is well summari"ed by #eer et al. ')*7+,, in which they support the fact that organi"ations today have significantly changed. In order for an organi"ation to meet its obligations to shareholders, employees and society, its top management must develop a relationship between the organi"ation and employees that will fulfill the continually changing needs of both parties. At a minimum, the organi"ation expects employees to perform reliably the tasks assigned to them and at the standards set for them, and to follow the rules that have been established to govern the workplace. 3anagement often expects more< that employees take initiative, supervise themselves, continue to learn new skills, and be responsive to business needs. At a minimum, employees expect the organi"ation to provide fair pay, safe working conditions, and fair treatment. ike management, employees often expect more, depending on the strength of their needs for security, status, involvement, challenge, power, and responsibility. Cust how ambitious the expectations of each party are vary from organi"ation to organi"ation. Dor organi"ations to address these expectations an understanding of employee motivation is required '#eer et al., )*7+,. Aarnegie ')*81, emphasi"es the human aspects of management. 4hey postulate that as it is people who make a business succeed E or fail E it is the organi"ation$s chief responsibility to motivate their people so that they will assure success. 4he authors believe that each human being has the potential for creativity and for achieving goals. 4he infinite question is how organi"ations reach this potential and how they stimulate creativity and foster in their people the desire to succeed and to achieve self. fulfillment through their work. 4he common theme of the above authors is the belief
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that people need to be respected and treated as precious human capital, more essential to an organi"ation$s effectiveness than its financial capital. @eople are now seen as the primary source of a company$s competitive advantage. 4herefore, the way people are treated increasingly determines whether an organi"ation will prosper or even survive ' awler, /00>,. %rgani"ations are under constant pressure to enhance and improve their performance and are reali"ing that an interdependent relationship exists between organi"ational performance and employee performance. In the following section the focus will be on the motivational theories and the impact that these theories have on enhancing employee performance.

T+ere is no need to write a-out t+e i/(act of /otivation on (erfor/ance0

)0) MOTI#ATION AND 2OB PERFORMAN!E 3otivation is defined as Fa set of processes concerned with the force that energi"es behavior and directs it towards attaining some goalG '#aron, )*7>,. Hreitner and Hinicki ')**/, p. )?/, postulate that motivation represents, Fthose psychological processes that cause the arousal, direction and persistence of voluntary actions that are goal directed.G If it is the role of managers to successfully guide employees toward accomplishing organi"ational objectives, it is imperative that they understand these psychological processes. 3otivation is further described as being intentional and directional. 4he word Iintentional$ refers to personal choice and persistence of action, whilst Idirectional$ denotes the presence of a driving force aimed at attaining a specific goal. In other words, a motivated person is always aware of the fact that a specific goal must be achieved, and would direct their effort at attaining that goal '9el et al., /00),. 3ol ')**/, on the other hand distinguishes between the terms Imovement$ and
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Imotivation$. 5hen a person carries out a task just for the sake of being remunerated, the person is moved rather than motivated. It is only when individuals carry out a task because they are enjoying it or are totally involved in it that they are motivated. According to a 3otta ')**1,, motivation is simply the reason individuals have for doing the things they do. In day.to.day society many different things motivate people, and that which motivates one person may not necessarily motivate another. 4hings such as a love for life, a desire to succeed, fear of failure, the need for self.fulfillment or self.esteem, are all factors that influence motivation. In conjunction with this, employee motivation is a process that an organi"ation can foster and nurture so that it can occur spontaneously. If organi"ations believe that people are naturally motivated, they must simply provide the environment and atmosphere that fosters and supports their motivation '#aron, )*7>,. a 3otta ')**1, posits the view that, the common wisdom is that managers have to learn to motivate people. !e believes that employees bring their own motivation, and what they need from work is to be liberated, to be involved, to be accountable and to reach their full potential. !arris ')**?, advances the notion of Iheart power$, which he defines as employee$s engaged passion for excellence. In accordance with this, organi"ations that capture the hearts of their employees seldom have to be concerned about motivation, as engaged hearts motivate themselves. @eople who are engaged and self.motivated do not have to be managed, as they are motivated by doing a job they believe in, in a constructive direction. According to awler ')*8>, as cited in #arling, Dullagar and #luen ')*78,, a theory of work motivation must account for the control and prediction of behavior. It must account for the phenomenon of voluntary behavior being initiated, that is, it should identify the energi"ers of voluntary work behavior. A theory of work motivation
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must explain how human behavior is directed or channeled.

)03011 PRE#IOUS RESEAR!H &xtensive research has been conducted on the factors that impact motivation and satisfaction and therefore job performance. 5yatt$s /00+ -urvey of Aanadian -trategic 2ewards and @ay @ractices found that employers are seeking to adopt reward strategies that provide a competitive advantage by attracting top talent and engaging employees in a way that drives business results. 4he survey found that 88J of organi"ations have either adopted a total rewards strategy or plan to do so. 5hile employers seem satisfied with their performance and reward efforts, the 5atson 5yatt 5ork Aanada /00+K/001 study shows that only /+J of employees believe that excellent performance is rewarded at their company 'Aanadian employers, n.d.,. According to 3ason '/00),, recognition in various forms is a powerful retention strategy and that it does not have to be expensive. A study conducted by the L(epartment of abor found that +?J of people leave their jobs because they feel unappreciated. A landmark federal 5ork. ife Aonflict -tudy involving >)100 working Aanadians found that Ffrustration and working conditions are the main reasons cited by those thinking of leaving their jobsG 'Informal 2ecognition, n.d.,. Approximately ?0J intended to leave because of working conditions, 11J cited lack of recognition and appreciation, and +0J said that they wanted more time for family and personal activities. In the Lnited -tates, a similar study found that +0J of employees believed that they were offered meaningful incentivesM 7)J indicated that they did not receive any reward for a productivity increaseM and 7*J cited that their organi"ations would
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perform better if there were incentives for quality and productivity 'Informal 2ecognition, n.d.,. A survey by the @rofessional -ecretaries International revealed that as many as >0J of professional secretaries would prefer a simple letter of appreciation from their managers, but that only 8J reported ever receiving such a letter. According to F@eople, @erformance and @ayG study, by the American @roductivity Aentre, it generally takes 1J to 7J of an employee$s salary to change behavior if the reward is cash, but only +J of the employee$s salary if the reward is non.cash. 4hus the fewer dollars are money well spent. 3otivation is more likely to occur when a reward is personali"ed and heartfelt '-tephenson, )**1,. 4hrough its /00/ F@eople at 5ork -urveyG, 3ercer concluded that +7J respondents believed that they were paid fairly, /7J were motivated by their organi"ations incentive compensation plan, only /*J said that when they do a good job, their performance get rewarded. In the same study they found that among employees who say their performance is rewarded when they do a good job, *0J are satisfied with their jobsM 77J are satisfied with their organi"ations and )/J were seriously considering leaving 'Aompensation & #enefits 2eport, /00>,. 2esearch conducted with managers between -eptember )*** to Cune /000, revealed that *0.1J felt that recogni"ing employees helps them to better motivate their employeesM 7+.+J indicated that by providing non.monetary recognition to employees when they perform well helps to increase their performanceM 7+.+J cited that recogni"ing employees supplies them with practical feedbackM 70.>J felt that recogni"ing employees for good work makes it easier to get the work doneM 88.8J agreed that recogni"ing employees assists them to become more productiveM and that ?*.>J indicated that providing non.monetary recognition helps the manager to achieve their personal goals '5iscombe, /00/,.
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CHAPTER N0.3

RESEARCH METHODOLOGY
401 Researc+ /et+od 4he purpose of this research is to explore the most important motivating factors and analy"e the effects of different reward systems in &ngro. 3ore specifically it aims to find out which aspects of the reward system functions well, and which aspects could be further developed and improved in order to increase employee satisfaction. 4he chosen method for collecting data in this study was a quantitative research ques. tionnaire 'Appendix ), and two qualitative research interviews 'Appendix /,. #oth were adopted from several Internet sources and the literature discussed in the earlier chapters. 4here are two types of research, quantitative and qualitative. 6uantitative research is used to gather data that is absolute, such as numerical data, so that it can be examined in an unbiased manner. 4he aim of this type of research is to classify features and count them and after this construct a statistical model in an attempt to explain what has been observed. 6uantitative research is a relatively easy way to gather data from a large number of respondentsM it can however be time consuming due to the large quantity of information. 4he research can be either descriptive, this means that the subject is measured only once, or experimental which means that the subject is measured before and after. 4his research was designed to be descriptive. '(aniel 3uijs, /00+ p. ).>, 6ualitative research answers to the question FwhyG instead of FhowG through the analysis of unstructured information. 4his type of research includes many different methods of collecting information, some of these are interviews, case studies, ethnographic re.
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search, emails, feedback forms and discourse analysis. 4he author has used interviews in order to conduct the qualitative part of this study. Aollecting and analy"ing the data for a qualitative research can be messy and time consuming. &xtracting meaning and finding the relative information from large volumes of materials is challenging. '(aniel 3uisj, /00+ p. ).>, 4he written questionnaire was hand.delivered to the participants in order to gain the highest possible response rate. In order to minimi"e the frustration of the respondents and hence the amount of uncompleted questionnaires, the number of questions was li. mited to a minimum. 4he questions were written as short as possible and the respon. dents did not need to write down any answers, only mark with an N whether they strongly agree, agree, disagree or strongly disagree. 4he questionnaire was divided into five parts. In the first part, the respondents were asked questions about their age, gender the number of years working for &ngro , the number of years working with the same work tasks and whether they are full.time or part.time employees. 4he second part measured the respondent$s attitudes towards the three reward systems that are currently used in the company and the third part measured what type of reward the employees consider to be most motivating. 4he fourth part included a list of statements where the respondents were required to Ahoose in a scale from one to five, which reward motivated them the most. 4he last part of the questionnaire contained four open questions. -ome questions were reversed and asked repeatedly in order to make sure the respondents understand and read the questions carefully. In total /> employees participated in the survey. 4he author strongly feels that the research and the questionnaire were conducted in a carefully and proper manner and due to the high respondent rate it is possible to draw the conclusion that the results speak generally for the whole &ngro work force. In addition to the questionnaire, some qualitative information was gathered throughout two personal interviews with the store manager and assistant manager. 4he author chose to
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interview these two individuals due to the fact that they were able to give some in. sight information on the specific opportunities and threats that &ngro has been experiencing concerning the company;s reward systems and the employees work motivation. 4he interviews were carried out as semi.structured. 4he questions were sent out to the interviewees in beforehand, hence giving them the opportunity to prepare. 4he interviews lasted approximately one hour and contained *.)0 questions. 4he questionnaire and the interview questions can be found in the appendix.

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!HAPTER 5

DATA ANA$%SIS
501 INTRODU!TION

In this section the results of the empirical analysis are reported and presented. 4he presentation proceeds with an analysis of the descriptive statistics on the variables under consideration. 4he statistical program used for the analyses and presentation of data in this research is the -tatistical @ackage for the -ocial -ciences '-@--, version )/. 4o facilitate ease in conducting the empirical analyses, the results of the descriptive analyses are presented first, followed by the inferential statistical analysis. 4he upper level of statistical significance for null hypothesis testing was set at 1J. All statistical test results were computed at the /.tailed level of significance in accordance with the non.directional hypotheses presented '-ekaran, /00),.

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50) RESU$TS OF THE *OR& MOTI#ATION AND SATISFA!TION 'UESTIONNAIRE (escriptive statistics in the form of arithmetic means and standard deviations for the respondents were computed for the various dimensions assessed by the 5ork 3otivation and -atisfaction 6uestionnaire. 4he means and standard deviations of the 5ork 3otivation and -atisfaction 6uestionnaire are presented in 4able +.). Ta-,e 501 Descri(tive statistics for t+e di/ensions of wor6 /otivation and satisfaction #aria-,e 5ork Aontent @ayment @romotion 2ecognition 5orking Aonditions #enefits @ersonal eaderK-upervisor Beneral O Mean ).1> /.18 /.)0 /.77 ).>+ ).7? )./> ).+/ ).>/ Standard Deviation .?* .?1 .?/ .?/ .8/ .?> .?+ .?* .1+ 5here high variables correspond to low motivation 5ith respect to the dimensions of work motivation assessed by the work motivation and satisfaction questionnaire, 4able +.) indicates that the means for the work content, payment, promotion, recognition, working conditions, benefits, personal, leaderKsupervisor and general ranged from a low of ).>/ to a high of /.77.

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It therefore appears that staff in the sample are relatively motivated, however, the mean values for payment, promotion, recognition and benefits were the lowest. 4hese mean values indicate the areas that employees were most likely to be demotivated and dissatisfied. 4able +.) thus shows that staff in the sample is most likely to be motivated due to their working conditions, personal and general dimensions. 4hey are least motivated by the payment they receive and recognition as determined by the 5ork 3otivation and -atisfaction 6uestionnaire. 50)01 INFERENTIA$ STATISTI!S In this section the results of the inferential statistical techniques used in the study are presented. In order to test the research hypotheses, the @earson @roduct 3oment Aorrelation Aoefficient was calculated as well as 3ultiple 2egression and Analyses of Pariance 'A9%PA,. #ased on the results obtained from the research, conclusions are drawn with respect to each hypothesis generated for the research undertaken in the organi"ation at which the research was conducted.

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T+ere is no need to ca,cu,ate t+e corre,ation -etween t+e di/ensions of t+ese varia-,es wit+ eac+ ot+er so de,ete t+is to(ic is reward recognition and /otivation so don7t /ention satisfaction in it %ou 8ust +ave to ca,cu,ate t+e /ean of /otivation" reward and recognition -. first ca,cu,ating t+e /ean of t+eir factors t+en t+e w+o,e varia-,e0 %ou need to ca,cu,ate t+e corre,ation -etween reward and /otivation t+en of recognition wit+ /otivation in order to ac+ieve .our o-8ectives0 Ma6e t+e gra(+s to re(resent t+e /ean of eac+ varia-,e and a,so scatter diagra/ to re(resent t+e corre,ation

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50)0101 !ORRE$ATION 4he @earson$s @roduct 3oment Aorrelation Aoefficient was computed for the purposes of determining the following relationships< Q 4he relationship between the different dimensions of the 5ork 3otivation and -atisfaction 6uestionnaire. Q 4he relationship between rewards, recognition and work satisfaction and motivation. In order to delineate the relationship between the various facets of the work environment on work motivation and satisfaction, the sub.dimensions of the 5ork 3otivation and -atisfaction questionnaire were correlated and are presented in 4able +./ Ta-,e 50)9 Di/ension !orre,ations wit+ wor6 /otivation and satisfaction *or6 Motivation and Satisfaction #aria-,e 5ork Aontent @ayment @romotion 2ecognition 5orking Aonditions #enefits @ersonal eaderK-upervisor Beneral Pearson corre,ation 0.??OO 0.7?OO 0.8+OO 0.*/OO 0.?)OO 0.?1OO 0.>8 O 0.>/ O 0.>+ O Significance :);tai,ed< 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.0/> 0.001

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O OO Aorrelation is significant at the 0.01 level '/.tailed, Aorrelation is significant at the 0.0) level '/.tailed, 4he results indicate that work content correlates significantly with work motivation and satisfaction 'r : 0.??, p R 0.0),. 4his supports the hypothesis that there is a significant relationship between work content and work motivation and satisfaction. A significant correlation is shown to exist between payment and work motivation and satisfaction 'r : 0.7?, p R 0.0),, supporting the hypothesis that there is a significant relationship between payment and work motivation and satisfaction. 4here was also a significant relationship between promotion and work motivation and satisfaction 'r : 0.8+, p R 0.0),. !ence, this supports the hypothesis that promotion opportunities are significantly related to work motivation and satisfaction. A significant correlation also exists between recognition and work motivation and satisfaction 'r : 0.*/, p R 0.0),, supporting that recognition is significant in explaining the variance in work motivation and satisfaction. 4here was a significant relationship between working conditions and work motivation and satisfaction 'r : 0.?), p R 0.0),. !ence, the hypothesis that there is a relationship between working conditions and work motivation and satisfaction is supported.

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4here was a significant relationship between benefits and work motivation and satisfaction 'r : 0.?1, p R 0.0),, supporting the hypothesis that benefits are significant in explaining work motivation and satisfaction. A significant correlation was found to exist between the dimension of personal and work motivation and satisfaction 'r : 0.>8, p R 0,01,. 4here was a significant relationship between leaderKsupervisor and work motivation and satisfaction 'r : 0.>/, p R 0.01, as well as between general and work motivation and satisfaction 'r : 0.>+, p R 0.01,. 4he results indicate that for the intercorrelation matrix exploring the relationship between the dimensions of the 5ork -atisfaction and 3otivation 6uestionnaire, that all the coefficients were positive. 4he results depicted in 4able +./ indicate that there is a significant statistical relationship between the dimensions of work motivation and satisfaction. Accordingly, the null hypothesis is rejected. Ta-,e 50 4 T+e re,ations+i( -etween rewards" recognition and wor6 /otivation and satisfaction *or6 satisfaction and Motivation 2ewards 2ecognition 0.7? OO 0.*/ OO OO Aorrelation is significant at the 0.0) level '/.tailed, 4here is a statistically significant, direct and positive relationship between rewards and work satisfaction and motivation 'r : 0.7?, p R 0.0),.

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!ence, if rewards offered to employees were to be altered, then there would be a corresponding change in work motivation and it is just motivation not satisfactionsatisfaction. 4he coefficient of determination, '2 . squared : 0 .8+,, implies that 8+J of the variation in work motivation and satisfaction of the sample can be attributed to rewards received, which implies that the remaining /?J can be explained by other factors not considered. 4he results indicate that there is a statistically significant, direct and positive relationship between recognition and work satisfaction and motivation 'r : 0.*/, p R 0.0),. 4his implies that if the recognition accorded to employees were to change, there would be a change in work motivation and satisfaction. 4he coefficient of determination, '2 . squared : 0.?0,, implies that ?0J of the variation in work motivation and satisfaction of the sample can be attributed to recognition, while the remaining +0J can be attributed to other variables which were not explored in the current research. 50)010) MU$TIP$E RE RESSION ANA$%SIS %n the basis of the results obtained indicating a direct positive relationship between the dimensions of work satisfaction and motivation, all the dimensions of the instrument were assessed using multiple regression analysis to ascertain the extent to which they explain the variance in work satisfaction and motivation.

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T+ere is no need to ca,cu,ate t+e /u,ti(,e regression ana,.sis or anova

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Ta-,e 50 5 satisfaction< Ste(wise Regression9 De(endent varia-,e :wor6 /otivation and 3ultiple 2egression 2 squared '2/, 2 squared 'Adjusted 2/, -tandard error Pariables in the equation 5ork Aontent @ayment @romotion 2ecognition 5orking conditions #enefits @ersonal eader K supervisor Beneral 0.*>*+/ 0.7+/8? 0.8)+0+ >.+>/>/ # ./.*?+1 .).1/>+ .0.?7/7 ./.?7+? .)./1>+ .0.171? .>.11>1 ././>>7 ./.)0+1 -& for # ).)718 0./7?> 0./*0> ).)718 0./7?> 0./*0> 0.)+1/ ).8?7> 0.)1?+ D : )?.1* 4 /.>? 1.>/ >.?1 /.+7 ).>+ ).?1 ).8* ).+> ).>> -ig. D : 0.00OO @ 0.0>O 0.00OO
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0.00OO 0.00OO 0.00OO 0.00OO 0.00OO 0.00OO 0.00OO 4he results shown in 4able +.+ indicate a relatively high percentage of the variation in work motivation and satisfaction can be explained by the variables entered in the equation '2 . squared : 7+./8JM 2. squared 'adjusted, : 8).+J,. 4hus 8)J of the variance in work motivation and satisfaction can be explained by work content, payment, promotion, recognition, working conditions, benefits, personal, leaderKsupervisor and general dimensions.

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4he D.ratio of )?.1* 'p R 0.0), indicates the regression of work motivation and satisfaction on the dimensions assessed, expressed through the adjusted squared multiple '2 . squared 'adj., : 8).+0J, is statistically significant. !ence the null hypothesis is rejected. 4hese variables account for 8)J of the variance in work motivation and satisfaction. 4his finding suggests that other unexplored variables could account for the other variance in work motivation and satisfaction. 50)0104 ANA$%SIS OF #ARIAN!E :ANO#A< An investigation was undertaken to determine whether there are differences in work motivation and satisfaction based on the biographical characteristics of the sample. Ta-,e 50 3 ANO#A9 Differences in rewards and recognition and wor6 /otivation and satisfaction -ased on gender ender 3ale Mean ).1? S .?> N 8> F >.)+ ( .000OO Sc+effe7s Test Demales received lower rewards and were less motivated. Demale ).87 .+* ))) 5here higher scores are indicative of lower rewards and recognition, work satisfaction and motivation. OO p R 0.0)

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4here is a significant mean difference in the overall levels of work motivation and satisfaction experienced by male and female employees 'p R 0.00,. Demales reported lower levels of work satisfaction and motivation '3ean : ).87, s : .+*, than males '3ean : ).1?, s : .?>, on the basis of rewards and recognition received.

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Ta-,e 50 = ANO#A9 Differences in rewards and recognition and wor6 /otivation and satisfaction -ased on /arita, status Marita, Status -ingle 3arriedO (ivorced 5idowed Mean ).78 /.)/ ).8? ).8* S .17 ./0 .?1 .1* N /7 )>0 /1 ) F >.11 P .000OO Sc+effe7s Test 4hose who are married differ significantly from those in the other groups 5here higher scores are indicative of lower rewards and recognition, work satisfaction and motivation. OO p R 0.0) 4here is a significant mean difference in the rewards and recognition 'work motivation and satisfaction, levels of employees based on their marital status. 3arried employees reported the lowest rewards and recognition 'work motivation and satisfaction,, followed by single employees. 4hose who are divorced indicated the greatest satisfaction and motivation based on the rewards and recognition they receive. 4he results need to be interpreted with caution due to the fact that most respondents were married, with under.representation from the other categories of employees.

Page | 32

Ta-,e 50> ANO#A9 Differences in rewards and recognition and wor6 /otivation and satisfaction -ased on age Age R >0 years >).+0 years +).10 yearsO 1) years S Mean ).8) ).?* ).*+ ).?> S .1? .>1 .*/ .+7 N )* *) ?) )/ F /.+7 ( .000OO Sc+effe7s Test 2espondents in the age category +).10 years differed significantly from the other groups 5here higher scores are indicative of lower rewards and recognition, work satisfaction and motivation. O p R 0.0) 4here is a significant mean difference in the rewards and recognition 'work motivation and satisfaction, levels of employees in the age group +).10 years and employees in other age groups. &mployees in the age group +).10 years reported lower rewards and recognition 'lower levels of work motivation and satisfaction, '3ean : ).*+, s : .*/, than employees in the age groups up to >0 years '3ean : ).8), s : .1?,, >).+0 years '3ean : ).?*, s : .>1,, and older than 10 years of age '3ean : ).?>, s : .+7,.

Page | 33

Ta-,e 501? ANO#A9 Differences in rewards and recognition and wor6 /otivation and satisfaction -ased on 8o- c,assification 2o- !,assification -pecialist Mean ).8> S .?* N +> F +.)0 P Sc+effe7s Test staff .000OO Alerical differ from the ine manager AlericalO ).7/ /.0>O .?8 .1> 10 )1 other groups. 5here higher scores are indicative of lower rewards and recognition, work satisfaction and motivation. O p R 0.0) 4here is a significant mean difference in the rewards and recognition 'work motivation and satisfaction, levels of employees based on their job classification. Alerical grade employees reported the lowest rewards and recognition and hence the lowest work motivation and satisfaction '3ean : /.0>, s : .1>,, followed by line managers '3ean : ).7/, s : .?8,, while those in specialist positions reported the highest levels of rewards and recognition 'work motivation and satisfaction, '3ean : ).8>, s : .?*,.

Ta-,e 5011 ANO#A9 Differences in rewards and recognition and wor6 /otivation and satisfaction -ased on educationa, @ua,ifications Educationa, ,eve, 3atricO (iploma (egree 3asters %ther Mean /.) ).?8 ).8> ).?8 ).?/ S .?0 .+8 .18 .?* .>+ N )) ?7 /7 / . F >.*1 P .000OO Sc+effe7s Test 2espondents with educational levels up to metric differ significantly from the remaining groups 5here higher scores are indicative of lower rewards and recognition, work satisfaction and motivation. O p R 0.0) 4here is a significant mean difference in the rewards and recognition 'work motivation and satisfaction, experienced by employees with lower levels of education. In this instance, those with education levels up to matric indicated the least work motivation and satisfaction relative to the other education levels. &mployees with the educational level of matric reported the lowest levels of work motivation and satisfaction '3ean : /.), s : .?0, than employees with diplomas ').?8, s : .+8,, degrees '3ean : ).8>, s : .18,, 3asters degrees '3ean : ).?8, s : .?*, and other qualifications '3ean ).?/, s : .>+,.

Ta-,e 501) ANO#A9 Differences in rewards and recognition and wor6 /otivation and satisfaction -ased on 8o- grade 2o- rade @B * @B )0 @B ))O @B )/ @B )> @B )+ @B )1 Mean /.0) ).8> /./8 ).8+ ).?* ).?7 ).?/ S .1? .>8 .1* .>+ .+7 .1* .>? N 1? 17 )7 >8 7 > > F >.*1 P .000OO Sc+effe7s Test @B )) respondents differ significantly from the other groups 5here higher scores are indicative of lower rewards and recognition, work satisfaction and motivation. O p R 0.0) 4here is a significant mean difference in the rewards and recognition 'work motivation and satisfaction, experienced by employees based on their job grade. &mployees in @B )) reported the lowest levels of reward and recognition 'work motivation and satisfaction, '3ean : /./8, s : .1*, than employees in the other job grades. &mployees in @B )1 evidenced the highest work motivation and satisfaction relative to the rewards and recognition they received '3ean : ).?/, s : .>?,.

Ta-,e 5014 ANO#A9 Differences in rewards and recognition and wor6 /otivation and satisfaction -ased on tenure Tenure R ) year ).1 yearsO ?.)0 years )).)1 years )?./0 years T /0 years Mean ).8* /.)/ ).8? ).?* ).?7 ).8/ S .1? ./+ .?> .+/ .+1 .1? N > /? )1 >* 1+ +? F >.11 ( .000OO Sc+effe7s Test 4hose employed between ) and 1 years differ significantly from those in the other groups 5here higher scores are indicative of lower rewards and recognition, work satisfaction and motivation. OO p R 0.0) 4here is a significant mean difference in the rewards and recognition 'work motivation and satisfaction, levels of employees with ).1 years of experience '3ean : /.)/, s : ./+, and those with fewer or more years$ service. 4hose with )E1 years$ service reported the lowest rewards and recognition 'work motivation and satisfaction, compared to the other groups. 4hose with )?./0 years$ service in the organi"ation indicated the highest rewards and recognition 'work satisfaction and motivation, compared to all the other categories of employees.

4he -cheffe$s 4est reflected the following findings in terms of rewards and recognition levels based on the work motivation and satisfaction questionnaire and the biographical variables of the sample< a, Demale employees indicated they were least motivated and satisfied by rewards and recognition. b, 2espondents indicated lower levels of work motivation and satisfaction relative to the other race groups based on rewards and recognition. c, 2espondents in the age category +).10 years evidenced the lowest levels of work motivation and satisfaction in relation to their rewards and recognition levels. d, 2espondents with educational levels up to metric were the least motivated and satisfied due to their rewards and recognition. e, 4hose employees who had been working for the organi"ation for between ) and 1 years were the least motivated and satisfied on the basis of rewards and recognition. f, employees reported the lowest levels of work motivation and satisfaction based on rewards and recognition. g, @ost grade )) employees experienced lower rewards and recognition relative to the other groups. h, 3arried employees reported the lowest motivation and satisfaction based on rewards and recognition. i, Alerical grade employees indicated the lowest levels of work motivation and satisfaction based on rewards and recognition.

504 !ON!$USION

4his chapter has focused on the presentation of results achieved in this study. @earson$s product moment correlation, multiple regression analysis and analysis of variance were used to indicated relationships and differences in the dimensions of work motivation and satisfaction based on the sample used in the study and more specifically to indicate differences in rewards and recognition 'as components within the work satisfaction and motivation questionnaire,. Dor the purposes of this study the -cheffe 4est reflected significant differences in terms of rewards and recognition levels based on work motivation and satisfaction questionnaire and the biographical variables of the sample. In the following chapter, the data will be discussed and where available, existing literature is integrated with results emanating from the current study to draw comparisons.

!HAPTER FI#E
DIS!USSION" !ON!$USION AND RE!OMMENDATIONS In this section the results described in Ahapter + will be discussed in greater detail and where appropriate, existing literature will be integrated into the discussion. 4he limitations of the study and the implications for future research will be addressed. 4he chapter concludes with recommendations. 301 INTRODU!TION 4he purpose of the present study was to identify and investigate the factors linked to motivation of staff in an insurance organi"ation. 4he sample used in this study was selected from staff on post grade nine to fifteen in the %perations business unit, which comprises mostly specialist or professional and management job categories. 30) DES!RIPTI#E STATISTI!S (escriptive statistics provide information on the key demographic variables in the study and are presented below. ). 4he final sample consisted of /1 employees, of whom +0J were males and ?0J were females. /. %ne percent )J of the respondents were under /0 yearsM )0J were between /) and >0 yearsM +*J ranged between >) and +0 yearsM >>J between +) and 10 yearsM ?J between 1) and ?0 years and )J were ?0 years and older. >.Difteen percent were single, 8)J married, )+J divorced and 0.1J widowed. Dorty six percent of the sample had a matric qualification, 1+J had a higher educational qualification 'either diploma, degree, masters, or other qualification,. +.4hirty percent of the sample was on a job grade *, >/J on a job grade )0, )0J on a job grade )), /0J on job grade )/, +J on job grade )>, /J on job

grade )+, and /J on job grade )1. %ne respondent did not indicate hisKher job grade. 1.-ixty.nine percent of the sample was in a specialist job classification, />J in a line manager position, 1J in administration or clerical and >J were unsure of their job classification. %ne respondent did not indicate hisKher job classification. ?. 4wo percent of the sample had less than one year service, )+J had between ) to 1 years service, 7J between ? and )0 years, /)J had between )) and )1 years, /*J had )? to )* years service and /1J had longer than /)years of service. %ne respondent did not indicate hisKher years of service.

304 INFERENTIA$ STATISTI!S 30401 DIS!USSION OF FINDIN S 3040101 enera, findings on a,, nine su-;di/ensions of t+e 'uestionnaire

4able +./ in Ahapter + indicates that there is a significant relationship between all nine of the sub.dimensions of the work motivation and satisfaction questionnaireM therefore the null hypothesis is rejected. 4he nine dimensions include, work content, payment, promotion, recognition, working conditions, benefits, personal, leadership and general 'level of satisfaction with the organi"ation,. !ence, the results in table +./ indicate that there is a significant statistical relationship between all of the nine dimensions of the work motivation and satisfaction questionnaire, and that all the dimensions have a positive influence on motivation and satisfaction. 4hese results are supported by the survey findings of 3ason '/00), who conducted an employee retention survey in the Dinance, !uman 2esources, -ales and 3arketing, %perations and I4 fields in over 10 companies. 4he survey found that what excites most people about their work is the opportunity to do challenging work, second was

the opportunity to develop work.related skills 'both correlates with work content,, thirdly management behaviour 'correlates with leadershipKsupervision,, in fourth place a positive work environment 'correlates with working conditions,, followed by recognition in sixth place and pay, compensation and benefits were ranked seven.

304010) T+e re,ations+i( -etween rewards" recognition and wor6 /otivation and satisfaction 4he results in table +.> reflect that there is a statistically significant relationship between reward and recognition respectively, and motivation and satisfaction. 4he study revealed that if rewards or recognition offered to employees were to be altered, then there would be a corresponding change in work motivation and satisfaction. 4he results of this study also indicated that employees were less motivated by rewards and recognition than some of the other dimensions of the 5ork -atisfaction and 3otivation 6uestionnaire. #y implication, this means that if more focus is placed on rewards and recognition, it could have a resultant positive impact on motivation and thus result in higher levels of job performance. 4he results of the present study did not indicate that there is any significant difference between rewards and recognition and the impact that it has on motivation and satisfaction. 4herefore, the present study confirms that a total rewards management programme, which includes payment or compensation, benefits and informal recognition is required to optimise the motivation and satisfaction levels of staff. As indicated by the various studies, this business unit would benefit from implementing a total rewards management programme that is supported by a sound performance management process.

3040104 Differences in rewards and recognition and wor6 /otivation and satisfaction -ased on gender As discussed in table +.1, the study indicates that females reported lower levels of work satisfaction and motivation '3ean : ).87, s : +*, than males '3ean : ).1?, s : ?>, on the basis of rewards and recognition than their male counterparts. 1.+ I3I4A4I%9- %D 4!& -4L(U 4his study was conducted at a -oftware house in 2awalpindi and the sample group was selected from one of the business units within the organisation. (ue to the fact that a convenience sample was used, the research has inherent problems as the findings cannot be generalised and therefore would be low in external validity. 4he sample also only concentrated on post grades nine and above, which includes professionals or specialists, first line and senior management, thus limiting generalisability to lower post grade levels. Biven the case study nature of this investigation, results of findings may be specific only to the %peration business unit and may not be generalised to the other business units within the organisation, or to other similar business units outside of the organisation. !owever, the business unit could use the outcomes of the research study to revisit its current reward and recognition programmes and in particular focus on addressing the needs of diverse groups of people within the business unit. 30A !ON!$USIONS AND RE!OMMENDATIONS It is evident from the study that a variety of factors influence employee motivation and satisfaction. It was also significant to discover that there is a direct and positive relationship between rewards and recognition and job satisfaction and motivation. !ence, if rewards and recognition offered to employees were to be altered, then there

would be a corresponding change in work motivation and satisfaction. 4he direct translation of this could be that the better the rewards and recognition, the higher the levels of motivation and satisfaction, and possibly therefore, the greater the levels of performance and productivity. 4he software sector is an increasingly competitive environment and therefore under constant pressure to manage its cost and to retain its employees. Lnder these circumstances organisations, such as the one at which the survey was conducted, could benefit by focussing on the factors that positively impact employee motivation and satisfaction. 3ost organisations in the industry have fairly competitive compensation programmes, but could benefit if they revisit their current offering and include more of the essential elements of what staff would like to receive, such as recognition and acknowledgement ' a 3otta, )**1,. A total rewards management program which structures the base pay and compensation package so that it attracts the right people to the organi"ation, and once they are on board, the organi"ation uses its rewards and recognition programmes to strategically channel their efforts in a way that drives organi"ational success, should be in place. 3anagement should keep in mind that there should be a balance between the amounts of effort required and the si"e or significance of the reward. It may affect motivation negatively if employees are of the opinion that the relative value of the reward does not warrant the amount of input they are required to give. 2eward and recognition programmes must provide equal treatment for equal accomplishments '-troh, /00),. It would thus bode well for the organisation to review its current compensation strategy and to compare the salary structures of males versus females, as well as amongst the different races. In the event of major inconsistencies, especially for staff on similar post grade levels, the organisation should make a concerted effort to re.

assess and rectify this situation. In the event that the organisation does not re.assess this situation, it could have a resultant negative impact on job performance and productivity as well as on the retention of minorities. In accordance with 3aslow$s hierarchy of needs, the lower level needs such as salary and benefits must first be met before the higher level needs, which impacts motivation can be satisfed. 4he findings alluded to the fact that employees with shorter service histories tended to be less motivated. Biven the fact that the organisation and thus the business unit is in a state of transformation, employees in this category may fall into the employment equity category. 4his places the business unit under pressure to retain these employees. 4he business unit could benefit from implementing a retention strategy, which in itself has a strong focus on recognition. Hey personnel to whom such a strategy would apply would include, #lacks, women and the disabled. 4he present study did not focus on the disabled. 4he study indicated that there were differences in motivation levels on the basis of reward and recognition amongst differently aged respondents. 5ork.life issues for the age group between /1 and +0 years, which would include the married respondents who reported lower motivation levels, may be an area that organisations could investigate. 3uch has been written in the literature about work.life balance and therefore organisations should provide policies and strategies that make it easier for staff to balance the work and life issues. (oing this could positively impact motivation and therefore, result in an increase in job performance and productivity.

5ork.life issues to be considered by the organisation would include flexible working hours, childcare facilities, employee assistance programmes etc. As mentioned previously, reward and recognition if improved, could have a positive

effect on motivation and satisfaction. 4he literature indicates that recognition includes acknowledgement and performance feedback. 3anagers in the business unit could thus use the performance management system to provide regular acknowledgement and feedback. 4he current performance management system of the business unit aligns the individual$s key performance areas to the company and business unit strategy. Acknowledgement and performance feedback are thus provided based on performance standards that supports the organisational strategy. (odd '/001, postulates that performance metrics, performance management as a business process and communication around total rewards management are the crucial underpinnings of an effective compensation system that truly differentiates and rewards performance.

30= SUMMAR% %rganisations are recognising the significant opportunity to improve the return on their human resources investment by aligning reward plans with business strategy and enhancing the value delivered to employees. 4his process is crucial to business success, and the ability of the organisation to attract and retain top performers and critical.skill employees, in an increasingly competitive environment. 4he research study has shown that managers can employ different strategies to motivate employees, but that it is important that managers keep in mind that different strategies would have a different motivational impact on different people. 4o get optimum results from a motivational strategy, the manager has to realise and understand trans.cultural issues, which requires recognition of each individual$s unique cultural values, beliefs and practices. Important to consider is that different motivation strategies may affect an employee in different ways at different points in

time because conditions, needs and personal objectives are not static but in constant state of flux. A motivation strategy may thus have the influence of increasing motivation in one way and diminishing it in others. 4o ensure the effectiveness of motivational strategies, it is important to consider the uniqueness of the circumstances and the diversity of the group involved. 4his will take considerable thought, patience, time and effort, but could have enormous benefits for the team, the business unit and the organisation on the whole in terms of enhancing job performance and productivity.

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Appendix

APPENDIB 1 BIO RAPHI!A$ INFORMATION ). Bender 3ale Demale /. 3arital -tatus -ingle 3arried (ivorced 5idowed >. Age Lnder /0 years /) E>0 years >) E +0 years +) E 10 years 1) E ?0 years ?) years & older +. Cob Alassification -pecialist ine 3anager AlericalK Administration 1. &ducational 6ualification R -td 7 3atric (iploma (egree 3asters %ther '@lease specify,

A@@&9(IN / 5ork -atisfaction and 3otivation 6uestionnaire A%9DI(&94IA ). I942%(LA4I%9 It is fairly obvious that people differ from one another in what they need and expect to get from different areas of their lives. @lease think about the work you do and because most jobs are not perfect, consider what would make it better from your point of view. /. 3&4!%( D%2 A9-5&2I9B 6L&-4I%95ith each question, you have a choice of three answers. Ahoose one of the following< 42L& :4 9%4 -L2& : 9L942L& :L 3ark your answers with a cross 'N,. >. 5%2H A%94&94 4 >.) >./ >.> I am interested in my work 3y work consists of a variety of work I receive training daily which teaches me something new >.+ >.1 3y work is easy 4he amount of work is easy to handle ) ) / / > > ) ) ) 9/ / / L > > >

>.? >.8 >.7 I control the amount of work I do myself I am completely independent of others I regard the content of my work as responsible ) ) ) / / / > > > >.* >.)0 I know exactly what my mistakes are I am allowed to decide on the methods for doing the work ) ) / / > > >.)) >.)/ >.)> >.)+ I am proud to say what kind of work I do 3y work is the way to future success I will not be dismissed without good reason I have the opportunity to take part when decisions are made ) ) ) ) / / / / > > > > >.)1 I feel that my work is of value in my department ) / > >.)? >.)8 4here is not time for idleness I have a certain degree of authority in my work )

) / / > > +. @AU3&94 +.) +./ 3y salary is satisfactory in relation to what I do I earn the same as or more that other people in a similar job ) ) / / > > +.> 4he basis of payment, for example overtime payment, is reasonable ) / > +.+ -alary increases are decided on a fair manner ) / > 1. @2%3%4I%9 1.) 1./ 1.> I will be promoted within the next two years &veryone has an equal chance to be promoted -taff are promoted in a fair and honest way ) ) ) / / / > > >

?. 2&A%B9I4I%9 ?.) ?./ ?.> ?.+ I am praised regularly for my work I receive constructive criticism about my work I get credit for what I do I am told that I am making progress ) ) ) ) / / / / > > > > 8. 5%2HI9B A%9(I4I%98.) 8./ 8.> 3y working hours are reasonable I am never overworked I get the opportunity to mix with my colleagues and to communicate on aspects of our work ) ) ) / / / > > > 7. #&9&DI47.) 7./ 7.> 3y pensions benefits are good 3y medical scheme is satisfactory I never have problems with my arrangements for leave ) ) ) / / / > > > *. @&2-%9A *.) I am given work in accordance with my qualifications and skills

) / > *./ I work in the department of my choice ) / > )0. 3U &A(&2K -L@&2PI-%2 )0.) )0./ )0.> )0.+ Is satisfied easily 5ill support me if there are problems Aan be convinced and persuaded Is a warm.hearted person ) ) ) ) / / / / > > > >

)). B&9&2A )/.) )/./ )/.> I have considered changing jobs I have been looking out for another job I am thinking of resigning ) ) ) / / / > > > 4!A9H U%L