Impact of Rewards and Recognition On Employees Job Satisfaction and Motivation in Private Banks of Tirunelveli City
Impact of Rewards and Recognition On Employees Job Satisfaction and Motivation in Private Banks of Tirunelveli City
Impact of Rewards and Recognition On Employees Job Satisfaction and Motivation in Private Banks of Tirunelveli City
ISSN 2322-083X
Dr.V.T.R. Vijayakumar
Professor & Head
Department of M.B.A
St.Xaviers Catholic College of Engineering
Nagerkoil, Tamilnadu - India
Mrs. B.Subha
Assistant Professor, Department of M.B.A
PET Engineering College, Vallioor
Tamilnadu - India
Abstract
This study aims to analyze the impact of rewards and recognition on employees job
satisfaction and motivation in private banks of Tirunelveli city. In this study data were
collected from employees of private banks. Human resources are the asset of any
organization. Motivated employees work more efficiently thus help to provide more profit to
the organization .The present study is an attempt to find out whether there is relationship
between rewards and recognition on employees motivation and satisfaction. The statistical
analysis showed that different dimensions of work motivation and satisfaction are
significantly correlated and reward and recognition have great impact on motivation and
satisfaction of the employees.
Key words: Rewards, Recognition, work motivation and satisfaction
Introduction
According to Baron (1983,p.123)motivation is an accumulation of different processes which
influence and direct our behaviour to achieve some specific goal. It is such a dynamic in
todays environment that explicitly creates and encompasses a positive impact on job. Within
an organization the best performance is feasible with most committed employees that can
only be achieved through employee motivation. Human resources are now seen as the
primary source of companys competitive advantage. Therefore the way people are treated
increasingly determines whether an organization will prosper or even survive
(Lawler,2003).To ensure that people are treated fairly, organizations are acknowledging that
they need to establish an equitable balance between employee contribution to the
organization and the organizations contribution to the employee. Establishing this balance
and meeting this need is one of the first reasons, according to Deeprose (1994),to reward
and recognize employees.
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Review of literature
Rewards
The Word rewards state the benefits that workers receive from their jobs (Kalleberg
1977,Mottaz1988), and Significant elements of employee job attitudes such as organizational
commitment, motivation and job satisfaction (Steers and Porter 1991). In any organization,
rewards play an important role in building and sustaining the commitment among employees
that ensures a high standard of performance and workforce constancy (Wang 2004).
According to the individualorganization exchange theme, individuals enter organizations
with specific set of skills, desires and goals, and expect in return a decent working
environment where they can use their skills, satisfy desires, and attain their goals (Mottaz
1988). Mostly organizations have increased the substantial improvement by entirely
complying with the organizational strategy by a well-balanced reward and recognition
programs for employee.Reward refers to all categories of financial benefits, tangible services
and benefits that an employee receives as part of employment relationship with the
organization (Bratton and Gold 1994). Lawler (2003) described that there are two aspects that
decide how much a reward is attractive, the quantity of reward which is provided and the
weight age an employee gives to a specific reward. Employees are certainly closer to their
organizations and perform better job, while they receive healthier reward and recognition in
their organizations. Rewards increase the level of efficiency and performance of the
employees on their jobsand in the result thereof increase the success of the organization.
Generally employees job description and job specification determines rewards to maintain
fairness among employees within an organization and competitive in the marketplace (Zaini
et al. 2009). Organizational rewards means all the benefits i.e. financial and non-financial that
an employee receives through their employment relationship with an organization (Bratton
and Gold1994,Malhotra et al. 2007). According to the literature the rewards distinguishes
into three main types that individuals seek from their organization i.e. extrinsic, intrinsic and
social rewards (Williamson et al. 2009). Extrinsic rewards are the physical benefits provided
by the organization such as pay, bonus, fringe benefits and career development opportunities.
Intrinsic rewards refer to the rewards that come from the content of the job itself, and
encompass motivational characteristics of the job such as autonomy, role clarity and training
(Hackman and Oldham 1976). Social rewards arise from the interaction with other people on
the job and may include having supportive relationships with supervisor and co-workers. Ali
and Ahmed (2009) established that there is a substantial affiliation between reward and
recognition, and similarly in employee motivation and job satisfaction. Study exposed that if
rewards and recognition offered to employees then there would be a substantial modification
in work motivation and satisfaction.
Motivation
The most practical definition proposed by social scientist that, motivation is a psychological
processes that origin the stimulation, direction, and persistence of behaviour (Luthans2005).
Many authors add a voluntary component or goal directed emphasis to that definition
(Hellriegel and Slocum 1976). Thus motivation becomes those psychological procedures that
cause the arousal, direction, and persistence of voluntary actions that are goal directed. The
features such as incentives and rewards are the most favoured factors for employee
motivation programs. However, the performance of employee job satisfaction is an
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Mean
Standard deviation
Work content
1.49
.64
Payment
2.50
.67
Promotion
2.12
.62
Recognition
2.98
.63
Working conditions
1.36
.72
Benefits
1.82
.65
Personal
1.21
.69
Leader/supervisor
1.46
.67
General
1.34
.54
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With respect to the dimensions of work motivation assessed by the work motivation and
satisfactionquestionnaire,Table1,indicates that the means for the work content, payment,
promotion, recognition, working conditions, benefits, personal, leader and general ranged
from a low 1.21 to a high of 2.98.Hece it is clear that employees in the study are motivated,
however the mean values for payment, promotion, recognitions and benefits indicates that
employees are demotivated and dissatisfied with that area. However employees were highly
motivated towards working conditions, personal and general dimensions.
Table 2
Dimension correlations rewards and satisfaction
Work motivation and satisfaction
Variables
Pearson correlation
Significance (2-tailed)
Work content
.63**
0.000
Payment
.82**
0.000
Promotion
.76**
0.000
Recognition
.93**
0.000
Working conditions
.60**
0.000
Benefits
.65**
0.000
Personal
.38*
0.000
Leader
.39*
0.000
General
.37*
0.000
The results indicates that work content correlates significantly with work motivation and
satisfaction(r=.63, p<0.01).This supports the hypothesis that there is 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 = 0.82, p < 0.01), supporting the hypothesis that there is a significant
relationship between payment and work motivation and satisfaction. There was also a
significant relationship between promotion and work motivation and satisfaction (r = 0.76, p
< 0.01). Hence, 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 = 0.93, p < 0.01), supporting that recognition is significant in explaining the
variance in work motivation and satisfaction. There was a significant relationship between
working conditions and work motivation and satisfaction (r = 0.60, p < 0.01). Hence, the
hypothesis that there is a relationship between working conditions and work motivation and
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satisfaction is supported. There was a significant relationship between benefits and work
motivation and satisfaction (r = 0.65, p < 0.01), 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 =
0.38, p < 0,05). There was a significant relationship between leader/supervisor and work
motivation and satisfaction (r = 0.39 p < 0.05) as well as between general and work
motivation and satisfaction (r = 0.37, p <0.05)
Table 3
The relationship between rewards, recognition and work motivation and satisfaction
Work satisfaction and motivation
Rewards
.82**
Recognition
.93**
**
There is a statistically significant, direct and positive relationship between rewards and work
satisfaction and motivation (r = 0.82, p < 0.01). Hence, if rewards offered to employees were
to be altered, then there would be a corresponding change in work motivation and
satisfaction. The results indicate that there is a statistically significant, direct and positive
relationship between recognition and work satisfaction and motivation (r = 0.93, p < 0.01).
This implies that if the recognition accorded to employees were to change, there would be a
change in work motivation and satisfaction.
Conclusion
The study concludes that rewards and recognition if improved could have positive effect on
motivation and satisfaction. Thus reward plan plays vital role in enhancing the value
delivered to the employees. Although many dimensions of work and job motivation are
related to motivation and satisfaction, the mean values of payment, promotion, benefits and
recognitions, shows that employees are less motivated with those aspects. Hence rewards and
recognition plans programmes given to the employees of private banks in Tirunelveli city has
to be revised, in such a way that it has to motivate and satisfy them.
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