EMOTIONAL INTELLIGENCE, REWARD SYSTEM, EMPLOYEE COMMITMENT AND

ORGANIZATIONAL PERFORMANCE IN THE MEDIA INDUSTRY OF UGANDA

A Case Study of NBS TV Uganda

BY

NININAHAZWE OSCAR

007-032

A RESEARCH PROPOSAL SUBMITTED TO THE SCHOOL OF POST GRADUATE AND

RESEARCH IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD

OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION OF CAVENDISH

UNIVERSITY

MAY, 2018
 Contents

Chapter One: Introduction

1.1. Background to the Study
1.2. Problem Statement
1.3. Objectives of the Study
1.4. Research Questions
1.5. Hypotheses
1.6. Significance of the Study
1.7. Conceptual Framework
1.8. Scope of the Study

Chapter Two: Literature Review

Chapter Three: Research Methodology

3.1 Introduction
3.2 Research Philosophy
3.3 Research Approach and Design
3.4 Research Strategy
3.5.1 Primary Data
3.5.2 Secondary Data
3.6 Interview Selection
3.6.1 Validity and Reliability
3.6.2 Preparing the Interview
3.7 Ethical Consideration
3.8 Research Limitations
3.9 Methods of Data Collection
References
Appendices
 CHAPTER ONE:

INTRODUCTION

1.0 INTRODUCTION

This chapter introduces our four variables. Between Variables, we have Independent variables

such as, Emotional Intelligence, Reward System and Employee Commitment and Dependent

Variable which is Organizational Performance. Our very first variable is Emotional Intelligence

to reward employees within organization in order to make them more committed. This chapter

frames the study as The Influence of Emotional intelligence, Reward System and Employee

Commitment on Organizational Performance.

A key function of Emotional Intelligence (EI) is to facilitate collective understanding and build

positive human relations in organizations, by equipping managers with the requisite skill set to

enhance staff performance and commitment (Jewell, 2007). EI is increasingly being used by

researchers and organizations to assess people behavior, attitudes, interpersonal skills and to

gauge the organizational commitment of managers and lower line staff. As an indicator, data on

Emotional Intelligence is now being employed manpower planning, job profiling as well as

recruitment and selection processes (Jewell, 2007). Organizational commitment precipitates

employee loyalty, wherein individual workers demonstrate their dedication to an organization

irrespective of its successes and failures (Meyer & Allen, 1997). Often times this is gauged

through behaviors such as regular attendance at work - putting in a full day or long hours;

protecting company assets, voluntarily taking on new roles outside of one’s job description and

sharing company goals and values.

Commitment is often taken as an indication of an employees’ desire to remain with an

organization (Long & Perumal, 2014). Organizations generally view having committed
employees as an advantage. Law et al (2004) declared that leaders with higher EI typically

performed better. Therefore, a positive leader subordinate relationship in a more conducive

working environment would lead to a higher organization commitment by the subordinate.

Rayton (2006) suggested that there is a strong possibility that another variable influenced job

satisfaction and organization commitment. It is posited in current research that the missing

variable is EI. Thus this research will contribute to this body of knowledge if a relationship does

exist between leaders EI and OC of subordinates.

Today organizations are in a constant need to improve and startle their job performance with the

only end to achieve high market competition. The rapid developments and changes that occur in

society caused by the development of technology and methods of teaching and learning, result in

innovation in the workplace toward emotional structures generated from the people in the

companies or organizations with the sole aim to achieve an increase in productivity of workers,

as mentioned Danvila and Sastre (2010). Emotions of workers can influence the performance of

their work. From this perspective, there is an interest in developing the skills, qualities, skills,

attitudes, etc., of each of the members of the company taken into consideration aspects such as

creativity, logic, flexibility, understanding, and others where the importance of emotional

intelligence is recognized. The effect of emotional intelligence is not limited to the higher yield

obtained, but apparently perceived that its influence extends to the satisfaction of the people in

their work, and extensively, to a better orientation to change and strengthening commitment with

the organization (Carmeli, 2003; Vakola et al, 2004.).

Organizations in developing their practice try to meet the objectives set and the performance of

their human capital, not to respond to business skills. Goleman (1999) states that more and more

companies for who to encourage these skills is vital to the management philosophy, currently
compete not only with products, but with the efficient management of human capital component.

All organizations regardless of the business in which they operate are immersed in the progress

and changes that occur today. Taking these considerations, the present study aims to determine

the relationship between emotional intelligence, reward system, employee commitment and

organizational performance, in order to detect how each variable is related to another.

The study of feelings and emotions using the model of emotional intelligence has taken

importance in the organizational area. Initially, it considered the existence of some individuals

with a superior coefficient of intelligence than others, but because of new concepts on this theory

provides answers to this and it is considered that emotional intelligence is a skill which can

understand and manage one's own feelings, interpret and address the feelings of others, to feel

satisfaction and to be effective in each of the activities that develop while creating unfavorable

own productivity and job performance mental habits (Araujo and Leal, 2007). This study aims to

analyze the influence of emotional intelligence in human resources within the organization,

starting from the assumption that the development of emotional intelligence is a key factor in

improving the relationships of people in the organizations, and thus, it manifests an increase in

work performance as it is expected of them.

1.1 BACKGROUND OF THE STUDY

The research will focus on one company – NBS TV - a Ugandan Communication company,

specializing in broadcasting live news. The research will focus on employees and the

management section of the company, across different departments and geographic locations and

with different cultural backgrounds. This research proposal takes a qualitative approach to

analyzing collected primary data and also extensively uses published literature concerning the

role of reward systems in performance management and their effect on employee performance.
Employee retention relates directly to how we reward them. Replacing employees in a company

can be an arduous and expensive exercise. Even in more secure industries such as the public

sector, performance needs to be managed and staff motivated as in the private sector. Retention

of experienced staff in both these industries is important to create competitive advantage and

organizational success. This study will also look at the importance of rewarding experienced and

high performing staff. So in a time when the amount of financial rewards is restricted by the

economic climate, retaining high performers with rewards has to be achieved while making all

staff feel valued. I will investigate if these values, along with a total reward approach to how we

compensate employees, have an effect on employee performance. As more and more

organizations cross international boundaries to conduct business, rewards that are relevant in one

country may not be as important in another. I aim to establish if a structured reward system, and

the specific type of rewards applicable to this organization, is imperative for increasing employee

performance or if it has any effect at all. This is all in the context of an ever changing society,

where most workers aspire to be wealthy in a way that previous generation did not. These

aspirations from an increasing educated and mobile workforce put even more emphasis on an

organizations reward systems and structures, and highlight the importance of rewards in the

context of achieving job satisfaction among employee’s and using this as a competitive weapon

against business rivals.

Emotional Intelligence

From the papers presented by Gardner in 2003, the concept of emotional intelligence began to be

increasingly present in organizational studies. Gardner includes "personal intelligence" in his

seminal work on the theory of multiple intelligences. Specifically, according to this author,

personal intelligence was composed of intrapersonal intelligence, based on the knowledge of the
internal aspects of a person, and by interpersonal intelligence, based on the core capacity to

notice distinctions among others, in particular contrasting moods, temperaments, motivations and

intentions (Gardner, Feeldman and Krechevsky, 2001). Gardner (2009), along with other

behavioral scholars conducted extensive research using a variety of sources, through which they

made a great contribution to education. Since he is taking the cognitive science, the study of the

mind, and neuroscience, the study of the brain, its pluralistic view of mind is considering that

most people possesses a great spectrum of intelligences and that each one reveals different ways

of knowing. These intelligences were determined from the study of a variety of cognitive

abilities or skills identified in populations of individual's subject: talented individuals, effects of

brain injuries, developmental and cultural observations. For the observed skills received the

epithet of intelligences should meet the above criteria. In 1983, Gardner proposed ten

intelligences as depicted on the following way:

1. Linguistic intelligence: Used in reading books, writing texts, understanding of words and the

use of everyday language. This intelligence is seen in the poets and writers, but also speakers and

speakers of the media.

2. Logical-mathematical intelligence: Used in mathematical problem solving, in the contrast of

a balance or bank account and a multitude of tasks that requires the use of inferential or

propositional logic. It is typical of scientists.

3. Musical Intelligence: It manages to sing a song, compose a sonata, playing a musical

instrument, or to appreciate the beauty and structure of a musical composition. Naturally, it is

seen in composers and musicians in general.

4. Spatial intelligence: it is argued in performing relocations for a city or building, to understand

a map, orient, imagine a furniture arrangement in a given space or in predicting the trajectory of

a moving object. It is typical of the pilots, explorers or sculptors.

5. Body-kinesthetic intelligence: Used in running sports, dancing and generally in those

activities where the body control is essential for good performance. Own by dancers, gymnasts

or pampering.

6. Interpersonal Intelligence: The ability to understand and comprehend the moods of others,

motivation or psychological states of others.

7. Intrapersonal Intelligence: The ability to access one's feelings, emotions of oneself and use

them to guide the behavior and conduct of the same subject. It refers to a cognitive ability to

understand the moods of self. It is seed to understand ourselves, our desires, motives and

emotions.

8. Natural Intelligence: is described as the power to perceive relationships between various

species or groups of objects and people, and to recognize and establish whether there are

distinctions and similarities between them. Recently, Garder (2003) added 2 new types of

intelligence to the original model:

9. Spiritual Intelligence: Described as a state of being expressed by spiritual or religious issues,

arguing the importance of the human being has the need for a feasibility model itself for proper

decision making, the ability to find meaning and direction of our actions. Religious belief is only

a part of this intelligence.

10. Existential Intelligence: It delves into the supreme interests of men, the meaning of life,

love, death and the human condition. It is the ability to position itself with respect to the cosmos

and for the existential features of the human condition. It is very important to consider the

interpersonal intelligence mentioned by Gardner. It is called today emotional intelligence and

this is considered as the basis for the development and implementation of an efficient behavior,

which applied to companies, will positively influence on the results of the organization. . This

study tries to investigate the effect of emotional intelligence on leadership behavior, to find out

how leadership behavior influences employees and give them motivation to perform better

within organization.

Reward System

Nelson and Peter (2005) stated “You get what you reward”. According to them, a reward system

is the world’s greatest management principal. If the organization rewards a certain kind of

employee behavior good or bad, that is what the company will get more of (Svensson, 2001).

Every existing company has some form of reward system, whether it is outspoken or not, it exists

(Jaghult, 2005). People correspond positively to praise, and praise in the right moment creates

loyalty and affinity (Bernstein, 1998). Rewards come in two different types. It can either be in a

form of incentive motivation or personal growth motivation. The former is the kind that comes

from within the individual, a feeling, being proud over something, feeling content and happy by

something that you have done. The latter is the type that is brought to you by another person or

an organization (Kaplan and Atkinson, 1998), and is the one that will hold our focus through this

study. Furthermore, extrinsic rewards can be monetary or non-monetary. The monetary is usually

a variable compensation, separated from the salary it is received as a consequence for

extraordinary performance or as an encouragement and it can be either individually based or

group based. The conditions to obtain this reward should be set in advance and the performance

needs to be measurable (Jaghult, 2005). There exists a variety of purpose of a reward system; one

very common is to motivate employees to perform better, but also for keeping the employees

(Ax, Christer and Kullven, 2005). For a reward system to be ideally motivational, the reward

should satisfy a number of criteria; have value, be large enough to have impact, be

understandable, be timely, the effect should be durable and finally the rewards should be cost

efficient (Merchant, 2007).

Employee Commitment

Employee commitment has been defined as, “The strength of an individual’s identification and

involvement in a particular organization.” The authors who provide this definition developed a

questionnaire-based tool in order to measure this construct. It describes employee

commitment using three distinct components:

● A strong belief in and acceptance of an organization’s goals;

● Staff motivation or willingness to exert considerable effort on behalf of the organization they

work for;

● A strong desire to maintain membership to the organization.

This definition and measurement has been used as the basis for a wealth of research since the late

1970s. These have demonstrated that employee commitment is strongly related to a whole raft of

positive effects and outcomes.

At an individual level, those who are more committed to the organization also experience more

job satisfaction, higher levels of motivation and lower stress levels. They also tend to perform

better and manifest less job-searching behavior.

At an organizational level higher employee commitment is related to lower levels of staff

turnover, absenteeism and tardiness. There’s also significantly higher customer satisfaction and

profitability.

Further meta-analysis has replicated these findings, based on a sizable sample size of 50,000.

Yet, they argued that there’s a further two types of employee commitments that need to be

considered.

Types of Employee Commitment

1. Affective (Emotional) Commitment

This type of employee commitment is the closest to what one might intuitively consider

commitment to be. It encapsulates the idea of an emotional identification with the organization.

This leads to an increased desire to contribute and perform, as well as maintain citizenship of the

organization. There is an enormous amount of research demonstrating the positive benefits of

affective staff commitment, both to the organization and the individual. It is for this reason that

we concentrate on this type when considering what gives rise to employee commitment.

2. Normative Employee Commitment

This refers to a perceived obligation to remain with the organization. An employee can

experience an obligation to perform work activities in the absence of a personal desire to do so.

This type of employee commitment typically has weaker positive relationships with staff

motivation, job satisfaction etc. Though, cultural variation plays a part in the strength of the

relationships between normative commitment and work behaviors. Norms and social obligations

exert more power over actual behavior in more collectivist cultures (e.g. Turkey). This is
compared to relatively individualistic contexts (e.g. the USA) where incidentally, the majority of

the psychological research takes place.

3. Continuance Commitment

This is bound up in a very idiocentric and calculative decision-making process. Essentially, this

involves the individual considering what they stand to lose should they leave an organization.

Their perceived sacrifices, together with the alternatives open to them.

Unsurprisingly, this type of employee commitment has less positive outcomes and is in fact

related to higher stress. There may be increased work-family conflict and poorer performance.

Combating staff turnover with salary raises and other incentives may increase affective employee

commitment through perceptions of personal competence. Yet, it could also in some instances

accentuate what employees stand to lose, adding to a feeling of being ‘trapped’ (high

continuance commitment), with all its negative associations.

The Importance of Employee Commitment

In summary, organizational commitment is now regarded as a key part of investigating the health

of organizations. This is done both by occupational psychologists and HR professionals.

Moreover, affective employee commitment (identification and emotional involvement with the

organization) is known to have the most positive effect on work-related behavior and staff

turnover intentions. Monitoring this variable can give early warnings of imminent employee

turnover problems. It also provides an excellent benchmark for evaluating interventions aimed at

reducing staff retention difficulties (e.g. job redesign, induction and socialization processes).
Mowday, R.T., Steers, R.M., & Porter, L.W. (1979). The measurement of organizational

commitment. Journal of Vocational Behaviour, 14, 224-247.

Organizational Performance

According to Pitt and Tucker (2008: p. 243), organizational performance is defined as “a

vital sign of the organization, showing how well activities within a process or the outputs

of a process achieve a specific goal”. It is also defined as “a process of assessing

progress towards achieving pre-determined goals, including information on the efficiency by

which resources are transformed into goods and services, the quality of these outputs and

outcomes, and the effectiveness of organizational objectives” (Amartunga , Baldry, 2003)

Organization’s performance is made visible through the activities it conducts to achieve; its

mission. Outputs and their effects are the most observable aspects of an organization’s

performance (Anderson and Carden, 1999). Anderson and Carden (1999) in their book

entitled “Enhancing organizational performance” state that ideas about the concept of

performance vary considerably. Each interest group or stakeholder may have an entirely

different idea of what counts. For instance, administrators might define organization's

performance in terms of the amount of money brought into the organization through

grants, whereas a donor might define performance in terms of organization's beneficial

impact on a target group. Beck (2003), gives an example; a company wants to improve their

image as a service oriented company with knowledgeable workers. All the call-center agents are

trained to perform according to the expected image in the four fields of Competence

Management. First, they need knowledge about the company’s knowledge. Second, they need

the skill to use the databases at their workplace. Third, they must be motivated to serve
their customers according to the plan and fourth, be permitted to provide the information

needed. Otherwise, the performance will not be satisfactory. Nancy and Mine (2004), on

assessing organizational performance stated that most organizations view their performance

in terms of "effectiveness" in achieving their mission, purpose or goals. Most organizations,

for example, would tend to link the larger notion of organizational performance to the

results of their particular programs to improve the lives of a target group). At the same

time, a majority of organizations also see their performance in terms of their "efficiency" in

deploying resources. This relates to the optimal use of resources to obtain the results

desired. Finally, in order for an organization to remain viable over time, it must be both

“financially viable” and "relevant" to its stakeholders and their changing needs. In this study we

will examine the factors that can lead to high level of productivity in organization.

1.2 PROBLEM STATEMENT

In the age of information and highly specialized work teams, many organizations are ignoring

the role of Emotional Intelligence in implementing change. In successful industries, EI is

becoming a vital skill as people must accomplish their work by collaborating with each other,

and their ability to communicate effectively becomes a critical, if not more critical, as technical

skills and capabilities. Researchers have globally shown that Emotional Intelligence is not given

adequate attention by leaders in their industries. As indicated by Caruso,(2004b, p.206) factors

that contribute to EI such as, Personal Skills to known one’s own feeling and Social Skills to

know other’s feelings are not being used by leaders in decision-making to motivate employees

and make them perform better than before. Within academic environment, several studies have

been performed to predict school grades and intellectual problem solving from EI. Within
leadership and organizational behavior, findings suggest that those lower in an organization

appreciate EI in their supervisors; a positive relationship has been also found between

subordinates’ commitment to their organization and their supervisors’ EI. Some organizations

over the years see employees as additional cost as well as liability to their operations, hence do

not remunerate them appropriately, and where it is more appropriate, the compensation is not

commensurate with the efforts and skills that workers put into the organization’s activities,

instead of paying attention on how employees will be compensated appropriately, some

organizations concentrate more on other resource such as, materials, machines and money. The

effort is more on how to improve the production process with little or no consideration for

human resource efforts. The researcher therefore found it necessary to investigate and assess how

NBS TV managers perceive employee commitment using their emotional intelligence and

reward system and the extent to which they have been able to face organizational performance

challenges.

1.3 Objectives of the Study

The major objective of this study is to examine and assess the Influence of Emotional

intelligence, Reward System and Employee Commitment on Organizational Performance.

Therefore, here are the specific objectives;

i. To examine the relationship between Emotional Intelligence and organizational

performance.

ii. To identify the relationship between Emotional Intelligence, Employee Commitment

and employees’ performance.

 iii. To investigate the relationship between Reward System, employee commitment and

Organizational Performance.

1.4 Research Questions

i. What is the relationship between Emotional Intelligence and Organizational Performance?

ii. What is the relationship between Emotional Intelligence, Employee Commitment and

Employees’ Performance?

iii. What is the relationship between Reward System, employee commitment and Organizational

Performance?

1.5 Hypothesis

H0. There is no significant influence of emotional intelligence, reward system, and employee

commitment on organizational performance.

H1. There is a significant influence of emotional intelligence, reward system, and employee

commitment on organizational performance

1.5 Significance of the Study.

The interest of this study cannot be overemphasized due to the fact that, it holds a lot benefit to

ensure continuous existence and survival of organizations, the study will be great benefit to

manager or Human Resource Department of organization regarding the identification of effective

Leadership and its emotional intelligence to make workers much more committed.
 This study will provide an insight into the meaning of Emotional Intelligence as it pertains to

organizations and as it is required to be. Emotionally intelligent leaders greatly have a bearing on

the output of employees and therefore impact on the performance of the organization as a whole.

1.7 Conceptual Framework

Independent Variables Dependent Variable


hip Self –
ent Social
managem
Relations
awareness
Emotional Intelligence

 Self – awareness

 Self – management

 Social awareness
Employee Organizational
 Relationship management Commitment Performance

Affective Commitment -Total Asset Turnover

Normative Commitment -Revenue per Employee

Reward System

Continuance Commitme -Labor Costs per Employee

-Monetary

-Compensation

-Individual-based reward

-Group-based Reward
1.8 Scope of the Study

The study will focus on NBS TV located in Kampala. It will be predicted on the assumption that

emotionally intelligent leaders have bearings on corporate performance. It will assess the level of

which employees at NBS TV are rewarded and engaged to achieve organizational goals. The

study will be limited to only one TV Station cited above. The choice of limiting the study to only
one TV station is for several reasons but, the main reason is to ensure that an in-depth and

critical study will be done, such that the results will provide useful information on the

relationship between Emotional Intelligence, Reward, Employee Commitment and

Organizational Performance. This Research work is undertaken to analyze the impact of

Emotional Intelligence on the productivity in an organization. Employees’ engagement and

Reward System are one of the various tools to be used to ensure effective human resource

management, but the study strictly concerns itself with Emotional Intelligence, its system and its

impact in employee commitment and in enhancing organizational productivity and profit ability.
 CHAPTER TWO:

LITTERATURE REVIEW

2.1 Introduction

Saunders et al. (2009, p.98) state that “a critical review of literature is necessary to help you to

develop a thorough understanding of, and insight into, previous research that relates to your

research question(s) and objectives”. This literature review on reward systems encompasses the

areas of performance related pay, total reward systems and team rewards. It will reveal the many

different types of incentives available to modern day employees as well as the most favorable

way to apply those incentives to get the best performance form your staff. Reviewing the current

published literature in this field will allow the researcher establish a base, to which further

research can be added. This dissertation explores three of the main theories and practices of

rewards in the workplace and how they affect performance, as well as specific cases within

organizations explored in the critical review of already published literature. The theory on

reward systems and their effects on performance cannot be evaluated without looking at how

work motivation is also affected by these rewards and how that motivation is directly linked to

performance. Kanfer et al. (2012) describe motivation in the work sense as a set of processes

which are ultimately used to determine a person’s actions, and which actions they will use to

achieve a desired outcome. This psychological procedure determines how personal effort is used

in the ‘direction, intensity and persistence’ of these actions in relation to your work. How you are

rewarded for this work will have a great effect on this direction, intensity and persistence.

Ensuring you have the right reward strategy and structure in place in your organisation is vital

for the positive performance and motivation of your staff and these rewards systems should be
based on what is needed to achieve the desired level of performance and motivation. Adams

(1965) describes equity theory as the perception of how you are treated compared to others and

in essence that you will be more satisfied and motivated if you think you are been fairly treated.

This procedural justice element to how rewards are interpreted runs deep in terms of this

performance and motivation. Armstrong (2010, 10 p.41) states that “in general, use an evidence-

based approach, which essentially means managing reward systems on the basis of evidence

rather than opinion, on understanding rather than assumptions, and on an unrelenting

commitment to gather the necessary facts to make more intelligent and informed decisions”.

2.2 Theories on Emotional Intelligence

There exist numerous theories on Emotional Intelligence, but for the most part utilized in

research are the theories of Baron, Goleman, and Salovey and Mayer (Engstrom, 2005).

Emotional Intelligence models by and large encompass 2 categories, namely ability-based and

mixed models. The ability based model describes Emotional Intelligence as a complete form of

mental ability or pure intelligence. On the contrary, the mixed models describe Emotional

Intelligence as a combination of mental ability having elements of personality traits, skills and

motivation. Both Goleman (1995) and Baron’s (1997) research generated the mixed models of

Emotional Intelligence.

Goleman (2001) defined EI as the capacity for recognizing our own feelings and those of others,

for motivating ourselves, and for managing emotions well in ourselves and in our relationships.

He also introduced the 4 concept model in this book. The model is: Self- awareness, Self-

management, social awareness and Relationship Management. Self-awareness being one’s

competency to study one’s emotions and identify its impact while using instinct to guide their
decisions. Self-management is the controlling of one’s emotions, urges, and adjusting to

changing circumstances. Social awareness encompasses the competency to comprehend sense

and respond to the emotions of others while understanding the concept of interaction of people.

Lastly, relationship management, which is the competency to motivate, develop and influence

others in managing conflicts.

2.3 Theories on Organizational Commitment

In the recent years, Organizational Commitment has been an area of interest among researchers

be-cause of its relationship with EI and the principle that it ultimately boil down to

organizational success and efficiency (Meyer and Allen, 1997). There are a variety of definitions

on Organizational Commitment that can be found in literature. Porter et al., (1974) described

organizational commitment as being a composition of three major components namely; a strong

belief in and acceptance of the organization’s goals, a willingness to exert considerable effort on

behalf of the organization, and a definite desire to maintain organizational membership.

Buchanan (1974) defined commitment as being a bond between an individual and the

organization, through his own definition of commitment. In 1997, Meyer and Allen defined OC

to include that of a committed employee is the one who stays with the organization through thick

and thin, attends work regularly, puts in a full day (and maybe more), protects company assets,

shares company goals and so on. Meyer and Allen (1991) had defined OC to comprise of 3 types

of commitment;

a) Affective Commitment (AC)

It is identified as the emotional involvement, affinity, and association that an employee has with

its organization and its goals (Meyer & Allen, 1993; Mowday et al., 1998). Meyer and Allen

(1997) expanded on this definition to say that employees maintained association with the

organization on their own accord and that was their way of portraying loyalty to the organization.

b) Continuance Commitment (CC)

Is when an employee remains in an organization as they feel that they need to, usually due to

financial reasons, and they associate leaving with a loss that is associated with cost. Meyer and

Allen (1997) extended on this to say that employees who share such a commitment with their

employers found it that much harder to leave the organization.

c) Normative Commitment (NC)

Is when an employee feels for some reason an obligation to stay with the organization. Meyer

and Allen (1991), defined it as a feeling of obligation, where else Weiner (1982), defines it as a

generalized value of loyalty and duty.

2.4 The relationship between Emotional Intelligence and Organizational Performance

Interest in Emotional Intelligence has increased greatly over the last decade.

Recently, increasing number of scholars has argued that Emotional Intelligence is a core variable

that affects the performance of employees. Recent findings suggest that EI persons are better

performers than their counterparts (Law, Song & Wong, 2004). To maintain a productive culture

in the current business climate, the organization has to concentrate emotional intelligence of

employees. In this study we attempt to identify the influence of EI on job performance. The
present study is based on Goleman (1995) theory of EI, viewed as a set of four intellectual

abilities involved in the processing of emotional information. The ability to manage emotions

entails regulating emotional experience in self and in interpersonal situations to attain personal

goals and outcomes. EI contributes to work performance by enabling people to regulate their

emotions.

2.5 The Relationship between Emotional Intelligence, Employee Commitment and

Organizational Performance.

One of the earliest works done on this subject matter was by Abraham (1999) stressed that

Emotional Intelligence prevents the individual from holding the organizational responsible for

every frustration and conflict on the job and, thus, prevents the erosion of commitment that

results from indiscriminate fault finding. In this study he found that 15% of the differences in OC

were explained exclusively by EI. Momeni (2008) in her study of Public Personnel in Iran

showed that Manager’s Emotional Intelligence has a positive association with their subordinates

OC. The results of the analysis of the relationship between the dimensions of EI and OC showed

a positive correlation between the dimensions of both principles. The regression analysis that

was conducted by Momeni indicated that 55% of the OC of employees is caused by the EI of

Managers. Nikolaou and Tsaousis (2002), in their studies found a positive correlation between 4

dimension of EI and employee OC. Namely, Perception and Appraisal (0.81), Control of

emotions (0.94), Use of emotions (0.95) and Understanding and reasoning (0.90), these results

were alpha reading measurements, on a population sample of 212 healthcare professionals.

Carmelli (2003), studied the relationship between EI and some OC factors such as behavior,

performance and work attitudes, the results of this studyshowed a substantially positive

relationship between EI and AC (.24) and (.32) for the relationship between EI and performance.
The underlying results were that the various constructs of OC associated differently to factors

such as job performance and work behavior. Humphreys et al., (2005), found correlation

between EI and AC, a construct of OC. Adeyemo (2007), Nigeria, also discovered a positive

correlation via hierarchical regression analysis between OC and EI. Ultimately confirming that

EI has a major influence on the constructs of OC. The research done by Abraham (1999) and

Wong and Law (2002) which confirmed the positive relationship between EI and OC was

supported by Perez et al (2005) in their study involving 167 adult professionals. Prati (2004), not

only proved a positive relationship existed between EI and OC but also added emotional

intelligence (change in R² = 0.03, p < 0.01) is a predictor of organizational commitment. Despite

all the positive correlations between EI and OC, there were some studies that cast a shadow of

doubt between the relationships. Stewart (2008) in his study in the food industry stresses that

there is no relationship between the total EI scores and OC for managers. However, he did

mention that there was a possibility that because the relationship between customers and

employees were brief therefore, the need for EI skills were minimum. Another point that was

made in the defense of his study was that most of the managers in his study did not see a career

path in their current job. Humphreys et al (2003) concluded in his studies that, follower EI was

positively correlated to OC, thus his deduction of the relationship was that subordinate EI played

a greater role in enhancing the subordinate OC than the managers EI.

2.6 The influence of reward system and employee commitment in the organizational

performance context

In the modern business environment, team performance is becoming more and more critical to

organizational success. One of the first questions asked at most interviews today is ‘can you

work as part of a team?’ Ensuring employees work both productively and collaboratively as part

of a team can be difficult and according to Torrington et al. (2011) if the performance

management activity is not defined correctly, employees individual goals may damage the

team’s performance and vice versa. Group based awards appear to be logical compliments of

performance measurement that focuses on teams and the quality/quantity of work they produce

and (Dematteo et al., 1998, p. 144) found that applying rewards to teams as a whole is based on

the assumption that team rewards will do something qualitatively different than individual

rewards. Also from a performance evaluation point of view, it may be easier and less complex

for a manager to evaluate a team’s performance as opposed to individual performance. So it

could be argued that managing performance and rewards available for achieving the level of

performance desired can be complimentary and less time consuming from a monitoring and

measuring point of view in a team based structure. However, according to (Armstrong, 2012, p.

294) it can take time for a team member to adjust to part of their remuneration been determined

by the group effort and how long that takes will be determined by the maturity of the team

members and how used they are to working together. Although the idea of having a high

performing team working closely and collaboratively together is appealing, the danger is forcing

people into a new remuneration arrangement who may already be just getting used to a new way

of working. In recent years, many organizations have moved towards rewarding employees for

performance as a means to achieve organizational goals (Mullins, 2005). Essentially they have
tied compensation to performance. The debate on the effectiveness of financial remuneration on

performance goes on as researchers try to establish the organizational and cultural fit for such a

practice. Rayner and Adam-Smith (2005, p. 101) state “as both performance and motivation are

affected by many factors, performance related pay (PRP) (or any other intervention) cannot be

linked in a casual manner”. They argue that although it may be relatively easy to provide

answers to individual aspects of the effectiveness of PRP, when all variables related to this

concept as it is applied are taken into consideration, connecting PRP to performance levels

becomes more difficult. Performance appraisals are a key aspect of managing any pay for

performance model. Smith and William (2003) in their research paper exploring the link among

performance rating pay and motivational influences looked at the dangers of receiving the

incorrect merit increase where performance related pay models are applied and the effects this

can have on motivation. In a survey administered to 5 different companies, ranging from

administrative support to supervisors and managers, they found that 58% of those surveyed

received a merit increase that did not correspond to their actual performance rating. It found that

the “de-coupling” concept between performance rating and the reward was a common practice

among companies surveyed. This highlights the importance for any merit based pay model to be

fair and transparent in order for it to be successful in the long term in increasing motivation and

performance. The majority of respondents did not feel their increased reward was based on their

performance but rather influenced by organizational budget constraints. Similarly, St-Onge et al.

(2009), highlight the prevalence of performance appraisal distortion and its effects on

performance and motivation. Although this distortion is inevitable in most organizations,

managers should also look at reviewing the appraisals and how we communicate the success or

failure as well the reward attached. Armstrong (2009, p. 254) claims it is better to separate
performance management and pay, “decoupling” both, so as to make a distinction between

developmental potential and the impact of your performance on incremental pay rises. He

describes the difficulty in paying for performance where it needs to be measurable on different

levels, thus evidence based and this evidence needs to be seen to be fair and transparent and not

conducted behind closed doors.

Total Reward System

This concept, although broad in its application, is defined by Taylor (2011, p. 140) as “total

reward involves designing a rich mix of complimentary initiatives which aim to maximize the

chances that employees will find their work to be ‘rewarding’ in the widest sense of the word”.

Aligning this reward system design with the overall strategy of the organization so as it’s not

perceived to be ad-hoc is considered to be a key factor in its success according to Stredwick

(2000) in his case study on aligning rewards to organizational goals within a multinational

pharmaceutical company. It found that through “broad-banding” or the allocation of roles into

different grades with different rewards, it motivated employees to perform better in order to

attain progression in the their careers, but these rewards needed to be varied and flexible and not

just pay related. Also it highlights the need for HR practitioners to understand the business needs

of the 23 organization and to design reward strategies that change employee behaviors that will

in turn lead to increased performance. Finding the right blend of tangible and intangible rewards

to adequately motivate and retain your employees is a difficult task. The total reward approach is

therefore very broad and can never constitute a one size fits all solution to rewarding employees

in the workplace. One important question posed by (De Mattio et al., 1998, p. 174) is how a

combination of reward practices can be used to reinforce and encourage high levels of individual
performance and, at the same time, foster team work among individuals. Some researchers

suggest that rather than choosing individual or group based incentives on their own, a

combination of the two incentive strategies may be more effective in motivating performance at

the individual level and cooperation at the team level (Heneman and von Hippel, 1995). In their

research on how reward strategy effects performance in the Malaysian insurance industry, (Tze

San et al., 2012) found that although financial and objective measures are central in designing

reward systems, when they incorporated non -financial rewards into the reward system, they seen

an increase in both financial and non-financial aspects of performance. They believed this lead to

an increase in the organizations reputation, more energy and team spirit in the workplace and

made the organization more attractive to potential new recruits. They also concluded that

although similar reward systems exist across organizations in this industry, the development of

the reward system will depend on the size of the organization. As you can see below in Figure 1,

the world at work total rewards model on strategies to attract, motivate and retain employees

illustrates how a total rewards package, incorporated into the organizations design, is supposed

to yield positive performance results.

 CHAPTER THREE:

METHODOLOGY

3.1 Introduction

This chapter aims at identifying the method and tools that will be employed to represent data for
analyzing to get proper and maximum information related to the subject under study.

3.2 Research Philosophy

The consideration of the research philosophy is an important part of the research process and

relates to developing knowledge and understanding the type of knowledge in question (Saunders

et al., 2009, p. 107). As this research is based around human behavior in terms of work

performance and how this is affected depending on the perceived merits connected to that

performance, the researcher believes a ‘realism’ outlook on the research is appropriate. As

Bryman and Bell (2007, p. 18) state “what makes critical realism critical is that the identification

of generative mechanisms offers the prospect of introducing changes that can transform the

status quo”. As the researcher collects and analyses data from a personal experience perspective

of that data, and as the research topic is a fluid aspect or measurement, the researcher is adapting

an epistemology realism philosophy. Moreover the primary research will be collected through

semi-structured interviews in NBS TV. This will be on a small sample and in relation to

interpretivism philosophy, the data collection characteristics are for qualitative techniques with

small samples. Thus, this researcher for the purpose of this research should be considered a

‘feelings’ researcher who has extensive knowledge in the industry the research is based upon and

uses that knowledge to collect and interpret that data in a ‘resourced’ manner. So it lends to the
argument that data collected by the ‘resources’ researcher is any more convincing than that

collected by the feelings researcher (Saunders et al. 2009, p. 119).

3.3 Research Approach & Design

Saunders et al. (2009) claim there are two approaches to research which can be described as

inductive reasoning and deductive reasoning. Ghauri and Gronhaug (2005, p. 16) state deductive

reasoning is “the logical process of deriving a conclusion from a known premise or something

known as true, inductive reasoning is the systematic process of establishing a general proposition

on the basis of observation or particular facts”. These two approaches are commonly used in

business and management research, particularly in terms of the cause-effect relationship. The

qualitative approach to this research aims to give the researcher a better feel for what is the

perceived opinion, both positive and negative, of the reward systems structure and what impact

that has on the topic in question. As the aim of this research is to interpret people’s behavior, a

quantitative approach could also be taken because the outcome is concerned about what people

actually do and what they think. However, qualitative researchers often want to look at standard

behavior and the culture of the organization in question as opposed to looking solely at the

meanings, through questionnaires or surveys. Therefore, the overlap of behaviors and meanings

contrast very much with quantitative and qualitative research (Bryman and Bell, 2007, p. 425).

So although both of these approaches can be used in terms of collecting research data from

several different sources, the researcher has decided to adapt an inductive approach. According

to Eriksson and Kovlainen (2008, p. 22), when you take an inductive approach in terms of the

relationship between the theory and observed research, you then follow the rationale of

progressing from observed research to a theoretical result. However, it is also possible to

combine both deductive and inductive approaches to research and this can be beneficial in a

number of ways, depending on topic chosen for research, Saunders et al. (2009). Although an

inductive approach is followed through patterns that emerge in the interviews, comparing this

with the recent published literature can be considered complimentary to a deductive research

approach. The type of the research topic under investigation will determine the choice of

research design approach you take. In this case, there is ample published literature available to

support this research topic. From here the research design can begin and research questions

developed. According to Thietart et al. (2001, p. 118), it is advised to establish a clear and

transparent research design before you move to your data collection stage as to collect data

before you know how you will analyze this data may make much of the data not applicable. This

is very important as the data collection method in this research is semi-structured interviews and

the researcher did not want to lose any opportunity for collecting the most relevant data.

Although this research will take mostly an inductive approach in the qualitative data analysis, I

would hope that this data would conflict or contradict some of the established theory.

The research project will collect primary data and refer to the secondary data as outlined in the

literature review. Saunders et al. (2009, p. 138) defines the so-called research process “onion”,

consisting of five different layers in terms of design.

1).Research Philosophy (Positivism, Interpretivism).

2).Research Approaches (Deductive, Inductive)

3).Research Strategies (Experiment, survey, case study, grounded theory, ethnography, action

research).
4).Time Horizons (Cross sectional, longitudinal)

5).Data Collection Methods (Secondary data, questionnaires, interviews, observation, sampling).

The research questions for this proposal are quite specific; therefore I believe in-depth interviews

would encourage the best response from employees. Protecting the anonymity of the respondents

should encourage a more open and honest response.

3.4 Research Strategy

According to Saunders et al. (2009, p. 141) the main research strategies are “experiment, survey,

case study, action research, grounded theory, ethnography and archival research”, and the

method chosen will be the one most applicable to your actual research question(s), and labels

should not be attached to the different type of strategies. The strategy to be used in this research

is a case study, based on one organization, and centered on four in-depth semi-structured

interviews using a qualitative approach. This will be the primary research strategy and the

investigative questions can be seen further in this chapter.

These questions will be developed from the secondary research carried out in the form of a

review of the current literature on the topic of rewards systems. Maylor and Blackmon (2005)

urge caution in relation to the reliability of secondary research as you are further away from the

topic than primary research. However, the closer you are to the research, the more caution you

should display concerning potential bias of the researcher and the researched. According to

Saunders et al. (2009, p.141) “your choice of strategy will be guided by your research questions

and objectives, the extent of existing knowledge, the amount of time and other resources you

have available, as well as your own philosophical underpinnings”. In order to gain more general
information about the topic in question, semi-structured interviewing will be chosen to gain the

maximum amount of feedback and in line with the inductive approach. This will allow the

researcher more flexibility. It is important that the interviewer frames the questions in the correct

context and understands the issues in question, thus the interviewee must be able to explain and

understand events, patterns and forms of behavior (Bryman and Bell, 2007, p. 475). 3.5 Data

Collection Data collection, both primary and secondary, is an important part of the research

process. Having identified your sources of data, Hart (2005, p. 356) advises systematically

collecting the data in sufficient quality and quantity in order to conduct your data analysis. So if

the researcher does not collect and gather the appropriate data, they will not meet their research

aims and objectives sufficiently enough to produce credible and thorough findings. As already

mentioned, in collecting primary research for this study, the researcher will use semi-structured

interviews and refer to secondary data from the literature review.

3.5.1 Primary Data

Thietart et al. (2001, p. 73) consider primary research to yield greater truth-value as they argue

the researcher has observed the phenomena with their own eyes. It is generally considered to be a

superior form of data collection as the researcher will have formed a system of data collection

very specific to the research been undertaken. In this sense, primary research does have

advantages and disadvantages. Advantages of primary data:

 Addresses specific research issue

 Efficient spending for information

 Greater control
 Proprietary information i.e. you do not have to share it with others.

Disadvantages of primary data:

 Time consuming

 Can be expensive

 Not always feasible to do it and have access to respondents

Within the primary data collection, I intend conducting 4 interviews with senior managers within

the HR department in NBS TV and the nature of those interviews will be consistent with the

selected research questions. Time constraints did not allow for more interviews to be conducted.

This research aims to establish how effective certain reward systems are on employee

performance. There are 16 proposed questions, which center around 6 topics consistent with the

topics and information to be gathered from the critical review of current literature. I aim to

establish factors which can influence the satisfaction and/or dissatisfaction of employees in the

workplace in relation to my research statement. The main proposed research questions or themes

as related to the secondary research are:

Do reward systems have an effect on employee performance? The purpose of this question is

to establish in general if reward systems are effective or not in employee performance and/or

employee motivation.

Is their level of performance determined solely on how they are rewarded or are there

other factors involved?

What effect does performance related pay have on an individual’s performance? This

question aims to determine in a more specific way a certain and controversial aspect of reward

systems, PRP, and how effective it is relating to the sample and company in question (It is

widely available within the chosen company). Also does it only affect performance and not

motivation?

Are intrinsic or extrinsic rewards more motivating to increase employee performance?

These questions are intended to establish which types of rewards (from the total rewards

spectrum) are most effective in increasing employee performance.

Are team based rewards more effective in achieving a better overall performance for your

department? With this question I hope to establish if there is a correlation between rewarding

collectively or individually, in terms of the performance output of the team. Also, can better team

performance enhance overall organizational performance

Do you think the reward structure in NBS TV is currently sufficient to meet the needs of

managers and their teams? This question aims to be very specific to the organization in

question and I aim to get a feel for how the respondents view the current state of the companies

reward system overall.

3.5.2 Secondary Data

For the purpose of this research, the secondary data research consisted of a critical review of

current published literature, in order to give a better understanding of the topic in question.

Although secondary data can be a useful source of information to help you formulate and answer

your research questions, it also should be met with some caution, just as primary research.

According to Sanders et al. (2009) secondary sources of information can first seem to be relevant

but upon closer scrutiny are not appropriate to your research objectives and in light of this you

must be careful when selecting your secondary data sources and their validity.

Advantages of secondary data:

 Ease of access

 Low cost to acquire

 May help to clarify the research question

Disadvantages of secondary data:

 May not be specific to researchers needs

 Incomplete information in the data you have found

 Not timely or in date relevant to your research For the purpose of this research, the secondary

data consisted of online data resources, published journals from the college library data base and

published books relevant to research statement. Although there was ample secondary theory

available to the researcher relating to the topic in question, according to Cameron and Price
(2009) most people avoid doing research based on secondary data only as they can be more

intellectual exercises rather than providing real practical proposals. However, this does not

necessarily mean that secondary data based research projects do not have real practical

implications In mixing the data collection methods between primary and secondary data

collection, I hope the research is not overly theoretical and that the primary research provides

some balance in terms of what is practical to the organization in terms of the topic in question

and recommendations for further research.

3.6 Interview Selection

The research on which this dissertation is based consisted of 4 semi-structured interviews

averaging around 40 minutes in length. The interviews will be carried out across the HR

department and encompass a mix of genders over different generations and cultures, and with

varying lengths of service with the company. The group in question is between supervisory and

middle management levels. Saunders et al. (2009), explain the nature of interviews should be in

line with your research objectives, questions, and strategy. Interviews can be:

 Structured interviews

 Semi-structured interviews

 Unstructured or in-depth interviews

As mentioned earlier in the primary data section, the semi-structured interviews focus around a

number of themes or questions. These will be individual interviews to be conducted face-to-face

and the data will be recorded by audio recording and trans-scripted into text form. Thietart et al
(2009, p. 180) state that “in qualitative research, the interview involves questioning the subject

while maintaining an empathetic demeanor: that is, accepting the subject’s frame of reference,

whether in terms of feeling or relevance”.

3.6.1 Validity and Reliability

Data Quality issues also need to be carefully considered in terms of validity, bias and reliability.

The data should provide firm support for the conclusions drawn from the research. Cameron and

Price (2009) consider the importance of telling good data from bad and that as you will be

careful of how much trust you put on secondary data in order to draw conclusions from it, you

too need to be cautious and critical with your own primary research. The semi-structured nature

of the interview questions will allow for a high level of validity and relevance as I will have to

use questions from a variety of perspectives in relation to the topic in question. I will also be

aware of the bias and unreliability of potential data due to the researchers own employment

position within the company which forms this basis for this research. Bryman (2001) considers

three aspects of reliability:

 Is a measure stable over time?

 Is there internal consistency between items?

 Is the ‘measure’ independent of the observer?

When constructing your research method, you need to think about the reliability of the data you

produce and the checks you will incorporate to maximize that reliability.
3.6.2 Preparing the interviews

Planning in advance of the interviews is vital to a successful outcome in terms of valid and

reliable information. As well as the interview questions, all interviewees will be provided with a

‘request to gain access’ form, confidentiality agreement and consent form prior to the interview

to ensure reliability of the research and to ensure all participants will be fully aware of the nature

of the research prior to the interview. Contextual notes from the interviews can be found in the

Appendix. Saunders et al. (2009) describes the most important preparatory elements for

conducting an interview as:

 Level of knowledge

 Level of information supplied to the interviewee

 Appropriateness of researcher’s appearance at the interview

 Nature of the opening comments

 Approach to questioning

 Nature and impact of the interviewers’ behavior during the interview

 Demonstration of attentive listening skills

The researcher in this case reviewed the current literature on the research questions in detail prior

to the interview and this enabled them to increase their credibility with the interviewee. The

researcher will focus on six different themes relating to the research question, and then will ask a
number of questions under each theme to allow the interview more scope to deviate between

questions, and provide more detailed responses as a whole. Demonstrating listing skills and

allowing the interview flexibility in how they answered each question will also be the approach

undertaken in these interviews.

3.7 Ethical Consideration

Hart (2005, p. 307) states that “ethics in research, as in everyday life, are a combination of

socialization, instinct, discretion and been able to put yourself in the position of others to reflect

on and see our actions as others may do”. Although I did not encounter any ethical issues relating

to the interview questions, the questions are not designed to go into very great personal detail or

probe the respondent for more revealing information. The very nature of this research study

could be considered controversial for most people in the workplace who are subject to varying

degrees of rewards and how those rewards affect them both personally and professionally. I

intend to disclose in full the reasons for the study, the procedure in analyzing the results of the

interview questions and to obtain their consent for using the findings as part of this study and to

clarify that all individual feedback would be kept confidential. This will be detailed in the email

accompanying the request for the interview. A confidentiality agreement will also be presented

and signed prior to each interview conducted. The researcher will also maintain honesty,

integrity, and objectivity throughout the process of this research study. The researcher will

acknowledge all previous works that will be include in this research study.
3.8 Research Limitations

Although the research been undertaken aims to achieve results of the upmost validity and

reliability, it is acknowledged that the research methods to be used may have some limitations.

Such limitations may be a result of the small sample size to be used in the collection of primary

data. This research will rely on interviews with managers across the organization and they may

offer a biased or limited perspective of how the practices of reward structures, especially the

non-financial ones, are perceived by all employees in the organization, at all levels. I note that

my research will focus on only one organization, so my results may not be pertinent to other

companies or businesses. It will be difficult to get more managers involved in the research due to

the nature of their roles within the company. The research analysis and findings should be

measured in terms of these limitations and other potential limitations that may arise.

3.9 Data Collection Instruments

The main tool of data collection for this study will be the questionnaire. The questionnaire will
be used for data collection because; it offers considerable advantages in the administration. It
will present an even stimulus potential to large numbers of people simultaneously and provide
the investigation with an easy accumulation of data (Kiass and Bio 1985) observes. Further
(Gay; 1992) points out that questionnaires give respondents freedom to express their views or
opinion and also to make suggestions.
It is also anonymous; anonymity helps to reduce more candid answer than is possible in an
interview. The questionnaires will be used on respondents who are willing to participate in the
study. It will have the benefit of being simple to code and analyze the data. The structure
questionnaire will be given to respondent by the researcher personally and then the respondent is
to complete by filling the questions basically its safe administered whenever it is possible,
however since it is expected that the level of literacy is low that of the member to face assistance
will be given when needed. This way the rate of response is expected to be high.
 REFERENCES

Armstrong, Michael. (2007) Employee Reward. 3 rd edn. London: Chartered Institute of

Personnel Development. Armstrong, Michael. (2012) Armstrong’s Handbook of Reward

Management Practice. 4 th edn. London: Kogan Page. Armstrong, M. and Taylor, S. (2014)

Armstrong’s Handbook Of Human Resource Management Practice. 13th edn. London: Kogan

Page. Armstrong, Michael. (2009) Armstrong’s Handbook of Performance Management. 4 th

edn. London: Kogan Page. Bratton, J. and Gold, J. (2012) Human Resource Management:

Theory and Practice. 5 th edn. New York: Palgrave Macmillan. Bryman, A. Bell, E. (2007)

business research methods. 2 nd edn. New York: Oxford University Press. Cameron, S. Price, D.

(2009) Business research methods: a practical approach. London: Chartered Institute of

Personnel Development. Creswell, J.W. (2003) Research Design: Qualitative, Quantitative, and

Mixed Methods Approaches. 2 nd edn. California: Sage. Eriksson, P. and Kovalainen, A. (2008)

Qualitative methods in business research. London: Sage Fisher, C. (2004) Researching and

Writing a Dissertation. Edinburgh: Pearson Ghauri, P. and Gronhaug, K. (2005) Research

Methods in Business Studies. 3rd edn. Edinburgh: Pearson. Hart, C. (2005) Doing Your Masters

Dissertation. 1 st edn. London: Sage. Hume, D. (1995) Reward Management: employee reward,

motivation and pay. 1st edn. Oxford: Blackwell Publishers. Honey, P. and Mumford, A. (2000)

The learning Styles Helper’s Guide. Maidenhead UK: Peter Honey Honey, P. (20006) The

learning Styles Questionnaire. Maidenhead UK: Peter Honey Kanfer, R., Chen, G. and Pritchard,

R. (2012) Work Motivation: Past, Present and Future. New York: Routledge.
 APPENDICES

APPENDIX 1

CAVENDISH UNIVERSITY UGANDA

FACULTY OF BUSINESS AND MANAGEMENT

MASTER OF BUSINESS ADMINISTRATION: HUMAN RESOURCE MANAGEMENT

QUESTIONNAIRE FOR STAFF

This questionnaire is designed to help gain a clear understanding of the impact of Reward and

Incentive Compensation System on Organizational Performance. You are considered as one of

the resourceful persons and as such you are kindly requested to spare sometime and respond to

the questions/statements frankly and honestly. Your response will be considered with utmost

confidentiality and as such, you do not have to write your name on the questionnaire nor should

you disclose your answers to other respondents. This research is intended for academic purposes

only.

Thank you for accepting to participate in this study;

1. Sex

Male

Female

2. Age

18 – 25

26 – 35

36 – 45

46+
3. How long have you worked in this organization?

Below 2 years

1 – 5 years

5 – 10 years

10 years and above

4. How highly do you place rewards as a basis to giving off your best?

Very high

High

Average

Low

Very low

5. What other rewards would you have apart from your salary? Please list

…………………………….. …………………………… ………………………..

……………………………. ………………………… …………………………

6. Upon what basis (if you know of any) is your reward increased/reviewed?

Performance Appraisal

Attendance

Company Profit

Group or Corporate Reviews

Yearly

7. Does the upward review of your rewards enhance your performance?

Yes

No
Not Really

How?

……………………………………………………………………………………

……………………………………………………………………………………

8. In your view, is the reward package for the different levels fair?

Yes

No

a. If yes, why? ……………………………………………………………………….

…………………………………………………………………………………….

b. If no, why? ………………………………………………………………………..

……………………………………………………………………………………..

9. How satisfied are you with your present reward package?

Very Satisfied

Satisfied

Average

Unsatisfied

Very Unsatisfied

10. Would you do better if you were paid more (or given more incentives)?

Yes

No

Not Sure

10a. How? ………………………………………………………………………………

……………………………………………………………………………………..

11. What would you rather do (please tick)

(a) Increase performance to enhance reward

(b) Receive a higher reward to enable you perform better

12. Do you have any say in what comprise your reward package?

Yes

No

12a. To what extent?

…………………………………………………………………………….

……………………………………………………………………………………………...

13. What kind of reward are you currently enjoying apart from your basic pay?

(Please list)

……………………………………. …………………………………………

……………………………………. …………………………………………

…………………………………… …………………………………………

14. What would you rather wish you had as part of your total reward package or in

addition to (13) above?

………………….................. …………………………….. …………………….

 APPENDIX II

CAVENDISH UNIVERSITY UGANDA

FACULTY OF BUSINESS AND MANAGEMENT

MASTER OF BUSINESS ADMINISTRATION: HUMAN RESOURCE MANAGEMENT

QUESTIONNAIRE FOR MANAGEMENT

This questionnaire is designed to help gain a clear understanding of the impact of Reward and

Incentive Compensation System on Organizational Performance. You are considered as one of

the resourceful persons and as such you are kindly requested to spare sometime and respond to

the questions/statements frankly and honestly. Your response will be considered with utmost

confidentiality and as such, you do not have to write your name on the questionnaire nor should

you disclose your answers to other respondents. This research is intended for academic purposes

only.

Thank you for accepting to participate in this study;

1. What is your current position?

Top Management

Middle Management

Supervisory

Other

2. How long have your been working with this company?

0 – 2years

2– 5years

6 – 10yrs

11 – 15yrs
 Above 15yrs

3. What are the components of your reward package that you know of? (Please list)

………………………… ……………………………. …………………….

………………………… …………………………… …………………….

4. Which of the factors above do you think influences personal and organizational

performance most? …………………………….. ………………………………….

……………………….. ……………………… ………………………………….

4b. Why?

……………………………………………………………………………………..

………………………………………………………………………………………

5. What are some of the weaknesses you recognize with this reward system?

…………………………………………………………………………………….

………………………………………………………………………………………

5a. What do you think should be done to strengthen these weaknesses?

………………………………………………………………………………………

…………………………..…………………………………………………………

6. How frequently are these rewards reviewed?

Once a year

Twice a year

Once a while

Hardly
7. Are rewards reviewed periodically by management or at the request of the union?

……………………………………………………………………………………

8. Do you personally think there is any relationship between reward, employee

commitment and personal performance?

Yes

No

8a. If yes, what kind of relationship is that? …………………………………………..

……………………………………………………………………………………..

9. What is the most common basis for reviewing employee rewards?

Increase in corporate revenue (profit)

Team productivity and improvement

Number of clients increased

Attendance, conduct and appearance

10. Do employees have a say in designing employee reward package?

Yes

No

10.a. How and to what extent?

…………………………………………………………………………………….

…………………………………………………………………………………….

…………………………………………………………………………………….

11. Are employees happy with their reward packages?

Yes

No
12. What would you rather wish you have as part of your total reward package or in

addition to the one you are currently enjoying?

…………………………………………………………………………………..

…………………………………………………………………………………..

…………………………………………………………………………………..
Impact of Reward Systems on Organizational Program

Please respond to each of the items in this section by ticking the column that clearly

represents your opinion as pertains in your organization.

Strongly Agree – 1 Agree – 2 Undecided – 3 Disagree – 4 Strongly Disagree – 5

Reward Systems, Employee Commitment and Organizational 1 2 3 4 5

Performance

Reward systems can improve customer growth and retention

Reward systems is a key indicator for achieving growth in

organizational profits

Reward systems can increase the company’s market share

Effective and efficient rewards has reduced the rate of employee

turnover

Rewards serve as a chief source of product and service spin-off and

growth

Rewards play a key role in corporate expansion, opening of new

branches and establishing subsidiaries