Research Project report

Topic:
Impact of External Monetary Rewards on
Job-Employee Performance.
Submitted by:
Ayesha Kanwal
6499
BBA (8th) section: A
Submitted To:
Mam Noor ul Ain

Faculty of management sciences

Impacts of External Monetary rewards on Job
Employee Performance
Ayesha Kanwal
BBA, University Of Education Lahore (Multan campus)
1:Introduction:
1.1 Background:
Every organization needs to deploy different strategies in order to improve employee
performance towards the achievement of predetermined goals. Many approaches have been built
and implemented to improve employee performance. Reward has been identified as a major tool
to maximize the employee performance. According to Bratton (1999), rewards refer to all forms
of financial returns and tangible services and benefit an employee receives as part of an
employment relationship. Bandura (1996) recognized that human behaviour cannot be fully
understood without considering the regulatory influences of rewards. According to Searle
(1990), rewards can be categorized into two broad areas, namely extrinsic rewards and intrinsic
rewards.
Employees expect some financial rewards in return of their services to the firm. They also expect
to get additional benefits on performing exceptional tasks and showing excellent performance.
Now companies are getting very conscious about how much to give and on what basis to give
and how employees can be motivated and satisfied so that the performance of the employees
improves and ultimately the productivity increases. This research will figure out that how much
important these financial rewards and whether these are true improvers of performance or not.
1.2 Significance:
We the human beings are always in search of some rewards and appreciation for a work. We
look for rewards each time we perform any sort of activity, it’s a human nature. From a long time
it has a very intense debate as how to motivate employees. Use intrinsic rewards or extrinsic
rewards to push the employee and take the best out of them. Intrinsic cost nothing but extrinsic
motivation is a cost for the company. Reward system is very crucial and has many purposes in
any organization. It helps to motivate new employees and retain the old ones. As people or the
human resource of any firm is the biggest asset so it should be motivated and appreciated
through different ways. External monetary rewards are specific types of rewards which are
attached to the potential, skill and performance of employees. Sometimes these rewards directly
affect the performance of the employees, in a positive if given accordingly and negatively if
totally ignored. So in recent times these external rewards are a very important issue for the firms
in the market. Companies do not only want their employees to come at work place but they want
them to work more and more to generate productivity for the form ultimately increasing the
profit and image of the firm. Above that companies are also focusing on when, how and why to
award financial benefits to the employees for their performance enhancement. Effective and
efficient usage of rewards can boost employees to polish their skills and apply extra effort into
the work.
1.3 Research Problem:
 To what extent does employee external rewards have an impact on employee
performance in a public sector organization?

1.4 Research Objectives

 To identify the relationship between external rewards and employee performance.
 To assess the effectiveness of existing reward system
 To make suitable recommendation to make current reward system more effective.

1.5 Research Questions:

 What is the impact of salary on employee performance?
 What is the impact of commission on employee performance?
 What is the impact of over time on employee performance?

3:Methodology:

3.1 Sources and type of Data

The importance of data in quantitative research is like a building block of research. To reach an
accurate and reliable source, searching for most relevant from of the data is basic part of a
research work. The data collected in this research of two kinds that is primary data. Primary data
is collected in form of questionnaire.
3.2 Defining population and sample
Our study is based on different organizations like private organization named “PAKARAB
FERTILIZER LIMITTED”. Administrative procedure in a place provides the data on employee
performance these organizations have several different departments from where the data has
been collected.
3.2 Population
The population consisted of employees of the organizations under observation. There were total
approximately 500 employees in these organizations.
3.3 Sample
Out of 500 employees, we have selected the sample of 130 employees. This sample includes
employees from every department. We got 100 questionnaires filled. Out of those 130
questionnaires 30 were selected as most effectively one while after watching the non-seriousness
30 employee those questionnaires were rejected and were not included in the analysis phase.
3.4 Instruments of data collection
Keeping in mind the nature of our research and the characteristics of the population we
ascertained that the best-suited instrument for our research is the questionnaire. So i used the
questionnaire for primary data collection, which recorded information like gender, designation,
job performance, impacts of external rewards and management level. The secondary data was
collected from different online articles on our area of interest. This is a quantitative type of
research which we have conducted.
 Appendix:

QUESTIONNAIRE

I am the student of University of Education. And conducting a survey to

“IMPACTS OF EXTERNAL REWARDS (MONETARY) IN JOB EMPLOYEE PERFORMACE”
For this purpose, we need your support, guidance and opinions to fulfill our research.
Demographics
Name: _____________________ Gender: 1) Male 2) Female
Age: (21-25), (26- 30), (30-35), (35-40), (40 or others)
Name of company: __________________________________________

Level of Agreement

Strongly
Strongly Agree neutral Disagree Disagree
Job employee performance Agree

External monetary rewards have impacts on job

performance.
If monetary rewards are given to employees, it will
enhance their performance.
Performance based rewards encourage employees to work
at their best.
External monetary rewards helps in satisfying the
employees and ultimately improving their job performance
For creating employees loyalty, External Monetary
Rewards are necessary

Salary
If employees are not paid according to their work. He will
be less motivated, resulting in poor performance.
Handsome salary is an effective source to get more
productivity from the employee
Commission Strongly Disagree Strongly
Agree neutral
Disagree
Agree
Employees work with their full potential when such
financial rewards are given.
Commission is good source of improving job
performances.
Fringe Benefits
Fringe benefits enhance employee’s performance.
If getting A+ on performance leads to financial rewards,
employees will work more effectively and efficiently.
Over time
Over time packages pushes employees to work more than
the described time in job description.
companies offering external monetary rewards have more
productive staff then the ones not offering
Your performance will be enhanced on getting such
rewards.