Table of Contents

1.

Title.....................................................................................................................................................3

2.

Introduction.........................................................................................................................................3
2.1

OGDCL.......................................................................................................................................3

2.2

Mission........................................................................................................................................3

2.3

Vision...........................................................................................................................................3

2.4

Fields...........................................................................................................................................3

2.5

Hierarchy.....................................................................................................................................6

2.6

Employees of OGDCL.................................................................................................................7

2.7

Job satisfaction............................................................................................................................8

2.8

Intrinsic rewards & Job satisfaction.............................................................................................9

2.9

Extrinsic rewards and job satisfaction..........................................................................................9

3.

Methodology......................................................................................................................................10

4.

Analysis.............................................................................................................................................10

5.

Appendix...........................................................................................................................................13

6.

References.........................................................................................................................................14

1.

Title
Impact of rewards job satisfaction

2. Introduction
2.1 OGDCL
Oil and gas Development Company limited commonly known as OGDCL is Pakistani Oil and
Gas Company. It is listed on 3 stock exchanges of Pakistan as well as on London stock exchange.
OGDCL have its many fields of oil and gas in all over Pakistan. It was founded in April 1961.
Headquarter of OGDCL is located in Blue area, Islamabad. Mr. Zahid Muzaffar is chairman of
OGDCL. There are 11,000 employees working in OGDCL and its fields of oil and gas located in
4 provinces of Pakistan. . OGDCL supply more than 60% of the oil produced in the country.

2.2 Mission
To become the leading provider of oil and gas to the country by increasing exploration and
production both domestically and internationally, utilizing all options including strategic
alliances.
To continuously realign ourselves to meet the expectations of our stakeholders through best
management practices, the use of latest technology, and innovation for sustainable growth, while
being socially responsible.

2.3 Vision
To be a leading multinational Exploration and Production Company.

2.4 Fields
In total OGDC have 34 fields in Punjab, Sindh, KPK and Baluchistan.
Sindh Fields
Tando Alam
Lashari
Thora
Sono
Missan
Pasakhi
Bobi
Qadirpur
Kunnar/Kunnar Pasakhi Deep

Oil field
Oil field
Oil field
Oil field
Oil field
Oil field
Gas Field
Gas Field
Gas Field

Norai Jagir
Daru
Hundi/Sari
Sinjhoro
Nur
Bagla
Maru-Reti
Sari

Gas Field
Gas Field
Gas Field
Gas Field
Gas Field
Gas Field
Gas Field
Gas Field
Punjab Fields

Fimkassar
Messa Keswal
Toot
Chak Naurang
Kal
Rajian
Bahu
Nandpur/Panjpir
Dakhni
Dhodak
Sadqal

Oil field
Oil field
Oil field
Oil field
Oil field
Oil field
Gas Field
Gas Field
Gas Field
Gas Field
Gas Field

KPK Fields
Chanda
Mela
Nashpa

Oil field
Oil field
Oil field

Baluchistan Fields
Loti
Uch
Pirkoh

Gas Field
Gas Field
Gas Field

2.5 Hierarchy

2.6 Employees of OGDCL

Organizations performance is directly based upon how well the employees in the organization
are performing. This means that to enhance the performance of the organization you had to work
on employees satisfaction. More the employees would satisfy much the output could be
achieved by their performances. More loyalty could be achieved in their tasks towards the
organization which would overall be beneficial for the organizations profitability. So to identify
those factors which cause more employees satisfaction should be organizations objective so that
it could be to continue its working in healthy environment which would ensure companies
profitability.
Over the years it is being identified that employees satisfaction is mostly concerned with the
rewards. Here the question arises weather the employees get more satisfaction by Montreal
reward or by appraisals. Now the question is that either employee is more satisfied with the
extrinsic rewards or they are more satisfied with the intrinsic rewards? This problem made us
curious to know the solution. This is why we had selected this topic because this is a problem
which is directly related to organizations overall performance.
There are 11,000 employees working in OGDCL and in its fields. In headquarter there are 5000
employees and in HR-B there are 200 employees but through random sampling technique we
have selected 20 employees. OGDCL is providing its employees so many incentives, incentives
mentioned by the manager of HR-B are;
o
o
o
o
o
o
o
o
o
o
o
o

Free medical facility

Free transport for employees
Scholarship for employees children
Bonuses on each discovery
House building loan
House hiring
Welfare loan
Connivance loan
Eid advance
Cars and fuel (17 or <17)
Bonus on zero absente (yearly basis)
Over time

Some of the employees are satisfied by these rewards but some are still not satisfied by these
rewards. There are 2 types of rewards for an employee; Extrinsic and intrinsic reward. Here the
question arises that is there any relationship exist between intrinsic reward and job satisfaction if
so, then to see intrinsic reward importance in eyes of OGDCL employees.

2.7 Job satisfaction

Satisfaction is the happening arises when the costumers get attached with the organization and
start interacting (Anderson, Fornell and Lehmann 1994; Crosby, Evans, and Cowles, 1990).job

satisfaction comes with the job experience when individual had a grip on this task and working
he start enjoying his job and task by which he is appraised for his work (Locke, 1976).it is about
the feelings of the workers that are performing their task that what they feel about their task are
they happily performing their job and the task assigned to them. It is persons personal feeling of
satisfaction or dissatisfaction about the task or in other words his likeness or unlikeness (Spector,
1997).if the organization is maintaining satisfied employees then its turnover rate will also be
minimized and provide with the loyal human resource to the organization. As it is a common
nature of human whenever he feels dissatisfaction he starts avoiding that environment and seeks
for the alternatives. It is negative sign for the organization that it is not capable of keeping
satisfied employees. High satisfaction will provide high commitment of the employees for his
task and he will always be sensitive about the reputation of his organization (Sarwar and Abugre,
2013). Job satisfaction could be examined by the individuals behavior and attitude during
workplace (Hulin and Judge, 2003).
According to an assessment job satisfaction is an attitude of an individual working in an
organization. Attitude is developed by what individual feels thought and what are his/her
emotions about the working environment (Celik, 2011). By this ways employees preference
could be easily identified during job projects. Human resource is an most precious asset of every
organization and it is an entire responsibility of every manger having satisfied subordinates and it
could only be possible how the manger is controlling the situations how he is executing this
plans how he is delegating authorities to subordinates. Mangers positive attitude is a key for
having highly motivated and committed subordinates. It is not about having satisfied employees
by only having a smooth working it is closely bonded with the rewards and appraisals. Now here
managers decision comes into play that how to reward his subordinates during different projects
completion. He should understand the psyche of his employees weather they rewarded by
extrinsic or intrinsic rewards can do the job. (Lu et al, 2005). Behavior and attitude of employees
reflects the efficiency of the plan execution. So managers had to have a deep eye on his
subordinate to ensure their satisfaction and commitment to their tasks and they must be working
for the mutual benefit for theirs and for the organizational objectives (Senyucel 2009).
Every individual had different problems in his life. Same is the case with the satisfaction every
employee had different satisfaction parameters. It is the responsibility of mangers to fulfill those
parameters to maximum level they can (Patterson. 2010). It is feeling of measurement of his task
by his rewards for every employee. Employee always measures the task with the rewards and
benefits attached with it. So it is to ensure that they must be comparable. (Locke, 1969).
( Kalleberg ); he highlighted relationship between work value and rewards attached with it which
raises or decreases employees satisfaction level.
Importance of employees satisfaction carries prominent place in every organizations. Many of
the researchers and psychologists and other theorist time by time are highlighting the importance
of satisfaction.

2.8 Intrinsic rewards & Job satisfaction

Intrinsic rewards are main source of satisfaction for many individuals working in organizations.
(Khan et al, 2013). Organization must design non monetary rewards schemes to get satisfied
employees. There must have opportunity for each employee to grow in his carrier with quality of
the task he performs. It must includes appraisals motivations and other counseling sessions that
will create a feeling of care in the mind of employee that his organization cares for his services
and regularly train him for the continuously improvement in tasks. Intrinsic rewards are
motivation and provide opportunity to explore and refine and to sharpen skills knowledge and
potential (Coon & Mitterer, 2010). There is different working available of different researcher to
get satisfied workforce by intrinsic rewards. (Feinstein) job security and career development
opportunity increases satisfaction among employees. (Feinstein, 2000). Other factors such as
increase in pay scale, policy of development and the work place environment could be helpful to
increase organizational commitment. Employees are more satisfied if there is some secure
pension and after service rewards are part of companys scheme (Bender and Heywood, 2006).
Job security is main factor of employees job satisfaction (Stephen 2005). Professional
development opportunity is a big identifier between the satisfied and non satisfied workforce.
(Penn et al, 1988). There will be always high level of satisfaction whenever inner self of
employees are satisfied in terms of respect, honor and value rather than extrinsic rewards
(Bender and Heywood, 2006).
(Airoldi, 2006) his research shows that 70% of employees are satisfied by intrinsic rewards.
They are much conscious about their respect, and are so concerned that peoples around then
honor them and they are always being appraised and appreciated whenever they hit the target
efficiently. Money to them is not that important as to be respected and honored. So with the
discussion it is extracted that intrinsic rewards strongly impact with the level of satisfaction of
the employees as it satisfies inner self of the employees.
H1: Intrinsic rewards have positive impact on job satisfaction
2.9 Extrinsic rewards and job satisfaction
Monitory rewards are the major source of having highly satisfied employees. Every individual
works to earn and if the individual is earning as much as he works he feels satisfied. That he is
being rewarded up to the level of work he is being performing. Major problem of each and every
individual is to satisfy his wants and demands up to maximum level and if the individual is
getting handsome amount of money he will be highly satisfied and loyal towards his
organization. As like as intrinsic rewards, importance of extrinsic rewards could also not been
understated (Rehman et al, 2010). Social rewards are those rewards that can be derived with
interaction to others on job. If the environment of work place is friendly then the satisfaction
level will be increases and the chances to leave the organization will be minimized. According to
Law Belle rewards weather intrinsic of extrinsic their needs varies from employee to employee
(Law Belle, 2005). Some individuals are more satisfied by tangible rewards like having big
house, luxurious car, healthy salary and vacations arranged by organization (Maidani, 1991).

So above discussion along with references of different researchers who had conducted same
research and their findings and study leads to a discussion that extrinsic nature rewards are
highly satisfier of employees working in an organizations.
H2: Extrinsic rewards have positive impact on job satisfaction

3. Methodology
We have conducted a descriptive study in OGDCL to see impact of rewards specifically intrinsic
rewards on job satisfaction of employees. We have also studied and analyzed some of the articles
related to job satisfaction, intrinsic rewards and extrinsic rewards. We have selected 20
employees from HR department through random sampling and we used questionnaire for data
collection and for the analysis we have used SPSS.

4. Analysis
Correlations
Intrinsic rewards
Avg
Intrinsic rewards
Avg

Pearson
Correlation

Sig. (2tailed)
N
Extrinsic rewards
Avg

Extrinsic rewards
Avg

20

Pearson
Correlation

.317*

Sig. (2tailed)
N

.025

20

20

Model Summaryb

Model
1

R
.415a

R
Square
.172

Adjusted
R
Square
.155

Std.
Error of
the
Estimate
.78164

DurbinWatson
1.541

Model
2

R
.558a

Adjusted
R
Square
.297

R
Square
.312

Std.
Error of
the
Estimate
.71257

DurbinWatson
1.608

Model 1: R shows that extrinsic rewards and employees job satisfaction are 41.5% related with
one another. R square shows that extrinsic rewards have 17.2% impact on employees job
satisfaction
Model 2: R shows that intrinsic rewards and employees job satisfaction are 55.8% related with
one another. R square shows that intrinsic rewards have 31.2 % impact on employees job
satisfaction
ANOVAb
Model
1
Regression

Model
2

Sum of
Squares
6.085

Mean
Square
6.085
.611

df

Residual

29.326

48

Total

35.411

49

Regression

Sum of
Squares
11.039

Mean
Square
11.039
.508

df

Residual

24.373

48

Total

35.411

49

F
9.959

Sig.
.003a

F
21.740

Sig.
.000a

ANOVA tells us the fitness of the model. In ANOVAs if F is greater than 5.96 with sig. of 0.05 or
less then the model is a strong fit.
Model 1: The value of F is 9.959 (greater than 5.96) with a significance of 0.003 (less than 0.05).
This shows that our model 1 is strong fit and our model 1 is accepted.
Model 2: In model 2 the value of F is 21.740 (greater than 5.96) with a significance of 0.000
(less than 0.05). This shows that our model 2 is a strong fit and our model 2 is accepted.

Coefficients

Model
1 (Constant)
Intrinsic
rewards Avg

Model
1

(Constant)
Extrinsic
rewards Avg

Unstandardized
Coefficients
Std.
B
Error
.904
.926
.821

.260

Unstandardized
Coefficients
Std.
B
Error
1.103
.588
.709

.152

Standardized
Coefficients
Beta

.415

Co linearity Statistics
t
.977

Sig.
.333

3.156

.003

Standardize
d
Coefficients
Beta

.558

Tolerance

1.000

VIF

1.000

Co linearity
Statistics
t
1.875

Sig.
.067

Tolerance

4.663

.000

1.000

VIF

1.000

Model 1: Beta indicates that 1 unit change in intrinsic rewards bring 0.415 unit change in
employees job satisfaction. Value of t is 3.156 (greater than 1.96) with a significance of 0.003
(less than 0.05) indicates that our hypothesis 1 is accepted i.e. intrinsic rewards have positive
impact on employees job satisfaction.
Model 2: Beta of model 2 indicates that 1 unit change in extrinsic rewards brings 0.558 unit
change in employees job satisfaction. Value of t is 4.663 (greater than 1.96) with a
significance of 0.000 (less than 0.05) indicates that our hypothesis 2 is accepted i.e. extrinsic
rewards have positive impact on employees job satisfaction.

5. Appendix

6. References