1st attempt-proposal rejection on 10-jan

8/12/2019 1st Attempt-Proposal Rejection on 10-JAN

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Needs improvement

Your project needs improvement. You are

required to submit your project again with the

suggested improvements when new

assignment will be opened on VULMS. Maesure to improve the project according to the

given guidelines.

You need to discuss the !indings and provide

the conclusion based on the data that whether

your all the objectives are met or not

See the analysis section and improve the

project according to the comments as youhave not calculated the mean

"ollow the !ormat o! the project report.

#mprove the literature review.

You have not provided the data in raw !orm as

well so send the e$cel sheet along with the

project ne$t time

You need to calculate correlation between the

variables

Provide the interpretation of all the analysis in detail

You are strongly advised to call at the given

below number !or !urther guidance i! you need

any

I hope it will be clear if there is any confusion you are more than

welcome to ask.

Wish you good luck.

Final ProjectPage | 1


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Rewards and recognition as a Source of Motivation

in Engro

A REPORT

SUBMITTED TO THE DEPARTMENT OF MANAEMENTS!IEN!ES" #IRTUA$ UNI#ERSIT% OF PA&ISTAN INPARTIA$ FU$FI$$MENT OF THE RE'UIREMENTS FORTHE DEREE OF MASTER IN BUSINESS ADMINISTRATION

Submitted ByShoaib Akbar

Mc100203540

Department of Management Sciences,

Virtual University of Pakistan

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Acknowledgement

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I would like to articulate my greatest thanks to the people who have

facilitate & supported me right through my project. I am thankful to

my instructor for his incessant support for the project, from initial

advice & acquaintances in the early stages of conceptual beginning &

through ongoing advice & encouragement to this day.

I yearn to thank my parents for their exclusive support and attention

who enthused me and buoyant me to go my own way, without whom I

would be unable to complete my project. At last but not the least I

want to thank my wife who cherished me for my work and provoked

me and finally to Almighty AA! who made all this possible...

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Abstract

Increasingly, organi"ations are reali"ing that they have to establish an equitable

#alance between the employee$s contribution to the organi"ation and the

%rgani"ation$s contribution to the employee. stablishing this balance is one of the

main reasons to reward and recogni"e employees. %rgani"ations that follow a strategic

approach to creating this balance focus on the three main components of a reward

system, which includes, compensation, benefits and recognition '(eeprose, )**+.

-tudies that have been conducted on the topic indicates that the most common

problem in organi"ations today is that they miss the important component of

recognition, which is the lowcost, highreturn ingredient to a wellbalanced reward

system. A key focus of recognition is to make employees feel appreciated and valued

'-arvadi, /001. 2esearch has proven that employees who get recogni"ed tend to have

higher selfesteem, more confidence, more willingness to take on new challenges and

more eagerness to be innovative '3ason, /00). 4he aim of this study is to investigate

whether rewards and recognition has an impact on employee motivation. A

biographical and 5ork 3otivation 6uestionnaire was administered to respondents

'(e #eer, )*78. 4he sample group '9: )7+ consists of male and female employees

on postgrade levels 1 to )/. 4he results of the research indicated that there is a

positive relationship between rewards, recognition and motivation.

9otwithstanding the insights derived from the current research, results need to be

Interpreted with caution since a convenience sample was used, thereby restricting the

generalisability to the wider population.

Table of Contents

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CHAPTER 1-------------------------------------------------------------------Page No. 06INTRODUCTIONCHAPTER 2-------------------------------------------------------------------Page No. 12

LITERATURE REVIEW

CHAPTER 3-------------------------------------------------------------------Page No. 53RESEARCH METHODOLOGY

CHAPTER 4--------------------------------------------------------------------Page No. 57DATA ANALYSIS

CHAPTER 5--------------------------------------------------------------------Page No. 69CONCLUSION, RECOMMENDATIONS &LIMITATIONS

References----------------------------------------------------------------------------------- Page No.76

Appendix/Appendixes------------------------------------------------------------------- Page No.79

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Section I

CHAPTER No.1

INTRODUCTION

4oday an organi"ations result is highly dependent on the employees work motivation. It

is therefore important for a company to find out what motivates its employees so that it

can plan a suitable reward system and gain better results. 4he right combination of im

material and material rewards can boost up the employees; work motivation and en

hence their commitment to the company.

4he aim of this study is to investigate and analy"e how well the current reward system

Implemented ngro helps generate employee motivation. 3ore specifically it aims

to find out which aspects of the reward system functions well, and which aspects could

be

further developed and improved in order to increase employee satisfaction. ngro

has earlier conducted some smaller research on the overall job satisfaction of the com

pany, however only little research has been made on employee work motivation and at

attitudes towards the reward systems in the company. 4he driving force behind this study

is to enable the employees of ngro to give feedback on their work motivation

and their attitudes towards the reward systems and hence perhaps increase their

commitment to the company. #ased on this information, the research question of this

thesis work is. !ow can the reward systems be further developed=

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1.1 Background of the project:

mployee motivation is one of the most essential parts in a company$s development

and success. In order to maximi"e the overall performance of the company it is vital for

an employer to understand what motivates the employees and how to increase their

job satisfaction. It might however be challenging for a company to find out what

motivates its employees, especially because different people are motivated by different

things. A well designed and functional reward system is an efficient way to increase

employee work motivation. 4he appropriate type of reward is developed in accordance

to the company;s reward philosophy, strategies and policy. !owever, it might be

challenging to find the right way to combine the company$s integrated policies and

practices together with the employee$s contribution, skill and competence.

'Armstrong, )***, p. 1?*180.

1.2 Introduction of the organization(s)

Engro !or(orationis a public company based in @akistan. 4he company has stakes in

the fertili"er, food, power generation, petrochemicals, automation and terminal storage

industries. ngro underwent an employee led buy out in )**/.

ngro has made some former research on employee work motivation on a general

bases. 4he research has however been concentrated on the employee$s satisfaction

with the employer and the company, not the reward system. 4he unit of ngro has

had some problems with finding the right way to motivate its employees and hence the

manager suggested if the author could conduct a survey that would especially

oncentrate on how to increase work motivation and develop the reward systems.

1.3 Objectives:

An organi"ation can use recognition as a strategic measure to show employees that

their contribution to the organi"ation is recogni"ed, and in so doing, influence their

motivation and job performance. #ased on the findings of the research, the

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organi"ation could improve and encourage the use of effective recognition in the

feedback process of the performance management system. 4he findings of this

research study could also influence the company to consider a more structured

approach to recognition that would enable the high performance culture it strives to

attain. 4he aim of this research is to investigate the role that reward and recognition

plays in motivating employees. 4he study will explore which of these factors, reward

or recognition, has a greater impact on employee motivation and satisfaction.

4he objectives of the study are. Hreitner and

Hinicki ')**/, p. )?/ postulate that motivation represents, Fthose psychological

processes that cause the arousal, direction and persistence of voluntary actions that are

goal directed.G If it is the role of managers to successfully guide employees toward

accomplishing organi"ational objectives, it is imperative that they understand these

psychological processes.

3otivation is further described as being intentional and directional. 4he word

intentional$ refers to personal choice and persistence of action, whilst directional$

denotes the presence of a driving force aimed at attaining a specific goal. In other

words, a motivated person is always aware of the fact that a specific goal must be

achieved, and would direct their effort at attaining that goal '9el et al., /00).

3ol ')**/ on the other hand distinguishes between the terms movement$ and

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motivation$. 5hen a person carries out a task just for the sake of being remunerated,

the person is moved rather than motivated. It is only when individuals carry out a task

because they are enjoying it or are totally involved in it that they are motivated.

According to a 3otta ')**1, motivation is simply the reason individuals have for

doing the things they do. In daytoday society many different things motivate people,

and that which motivates one person may not necessarily motivate another. 4hings

such as a love for life, a desire to succeed, fear of failure, the need for selffulfillment

or selfesteem, are all factors that influence motivation.

In conjunction with this, employee motivation is a process that an organi"ation can

foster and nurture so that it can occur spontaneously. If organi"ations believe that

people are naturally motivated, they must simply provide the environment and

atmosphere that fosters and supports their motivation '#aron, )*7>.

a 3otta ')**1 posits the view that, the common wisdom is that managers have to

learn to motivate people. !e believes that employees bring their own motivation, and

what they need from work is to be liberated, to be involved, to be accountable and to

reach their full potential.

!arris ')**? advances the notion of heart power$, which he defines as employee$s

engaged passion for excellence. In accordance with this, organi"ations that capture the

hearts of their employees seldom have to be concerned about motivation, as engaged

hearts motivate themselves. @eople who are engaged and selfmotivated do not have

to be managed, as they are motivated by doing a job they believe in, in a constructive

direction.

According to awler ')*8> as cited in #arling, Dullagar and #luen ')*78, a theory

of work motivation must account for the control and prediction of behavior. It must

account for the phenomenon of voluntary behavior being initiated, that is, it should

identify the energi"ers of voluntary work behavior. A theory of work motivation

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must explain how human behavior is directed or channeled.

)03011 PRE#IOUS RESEAR!H

xtensive research has been conducted on the factors that impact motivation and

satisfaction and therefore job performance. 5yatt$s /00+ -urvey of anadian

-trategic 2ewards and @ay @ractices found that employers are seeking to adopt

reward strategies that provide a competitive advantage by attracting top talent and

engaging employees in a way that drives business results.

4he survey found that 88J of organi"ations have either adopted a total rewards

strategy or plan to do so. 5hile employers seem satisfied with their performance and

reward efforts, the 5atson 5yatt 5ork anada /00+K/001 study shows that only

/+J of employees believe that excellent performance is rewarded at their company

'anadian employers, n.d..

According to 3ason '/00), recognition in various forms is a powerful retention

strategy and that it does not have to be expensive. A study conducted by the L-

(epartment of abor found that +?J of people leave their jobs because they feel

unappreciated.

A landmark federal 5orkife onflict -tudy involving >)100 working anadians

found that Ffrustration and working conditions are the main reasons cited by those

thinking of leaving their jobsG 'Informal 2ecognition, n.d.. Approximately ?0J

intended to leave because of working conditions, 11J cited lack of recognition and

appreciation, and +0J said that they wanted more time for family and personal

activities. In the Lnited -tates, a similar study found that +0J of employees believed

that they were offered meaningful incentivesM 7)J indicated that they did not receive

any reward for a productivity increaseM and 7*J cited that their organi"ations would

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perform better if there were incentives for quality and productivity 'Informal

2ecognition, n.d..

A survey by the @rofessional -ecretaries International revealed that as many as >0J

of professional secretaries would prefer a simple letter of appreciation from their

managers, but that only 8J reported ever receiving such a letter.

According to F@eople, @erformance and @ayG study, by the American @roductivity

entre, it generally takes 1J to 7J of an employee$s salary to change behavior if

the reward is cash, but only +J of the employee$s salary if the reward is noncash.

4hus the fewer dollars are money well spent. 3otivation is more likely to occur when

a reward is personali"ed and heartfelt '-tephenson, )**1.

4hrough its /00/ F@eople at 5ork -urveyG, 3ercer concluded that +7J respondents

believed that they were paid fairly, /7J were motivated by their organi"ations

incentive compensation plan, only /*J said that when they do a good job, their

performance get rewarded. In the same study they found that among employees who

say their performance is rewarded when they do a good job, *0J are satisfied with

their jobsM 77J are satisfied with their organi"ations and )/J were seriously

considering leaving 'ompensation & #enefits 2eport, /00>.

2esearch conducted with managers between -eptember )*** to Cune /000, revealed

that *0.1J felt that recogni"ing employees helps them to better motivate their

employeesM 7+.+J indicated that by providing nonmonetary recognition to

employees when they perform well helps to increase their performanceM 7+.+J cited

that recogni"ing employees supplies them with practical feedbackM 70.>J felt that

recogni"ing employees for good work makes it easier to get the work doneM 88.8J

agreed that recogni"ing employees assists them to become more productiveM and that

?*.>J indicated that providing nonmonetary recognition helps the manager to

achieve their personal goals '5iscombe, /00/.

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CHAPTER N0.3

RESEARCH METHODOLOGY

401 Researc+ /et+od

4he purpose of this research is to explore the most important motivating factors and

analy"e the effects of different reward systems in ngro. 3ore specifically it

aims to find out which aspects of the reward system functions well, and which aspects

could be further developed and improved in order to increase employee satisfaction.

4he chosen method for collecting data in this study was a quantitative research ques

tionnaire 'Appendix ) and two qualitative research interviews 'Appendix /. #oth

were adopted from several Internet sources and the literature discussed in the earlier

chapters. 4here are two types of research, quantitative and qualitative. 6uantitative

research is used to gather data that is absolute, such as numerical data, so that it can

be examined in an unbiased manner. 4he aim of this type of research is to classify

features and count them and after this construct a statistical model in an attempt to

explain what has been observed. 6uantitative research is a relatively easy way to

gather data from a large number of respondentsM it can however be time consuming

due to the large quantity of information. 4he research can be either descriptive, this

means that the subject is measured only once, or experimental which means that the

subject is measured before and after. 4his research was designed to be descriptive.

'(aniel 3uijs, /00+ p. )> 6ualitative research answers to the question FwhyG

instead of FhowG through the analysis of unstructured information. 4his type of

research includes many different methods

of collecting information, some of these are interviews, case studies, ethnographic re

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search, emails, feedback forms and discourse analysis. 4he author has used interviews

in order to conduct the qualitative part of this study. ollecting and analy"ing the data

for a qualitative research can be messy and time consuming. xtracting meaning and

finding the relative information from large volumes of materials is challenging. '(aniel 3uisj,/00+ p. )>

4he written questionnaire was handdelivered to the participants in order to gain the

highest possible response rate. In order to minimi"e the frustration of the respondents

and hence the amount of uncompleted questionnaires, the number of questions was li

mited to a minimum. 4he questions were written as short as possible and the respon

dents did not need to write down any answers, only mark with an N whether they

strongly agree, agree, disagree or strongly disagree.

4he questionnaire was divided into five parts. In the first part, the respondents were

asked questions about their age, gender the number of years working for ngro

, the number of years working with the same work tasks and whether they are

fulltime or parttime employees. 4he second part measured the respondent$s attitudes

towards the three reward systems that are currently used in the company and the third

part measured what type of reward the employees consider to be most motivating.

4he fourth part included a list of statements where the respondents were required to

hoose in a scale from one to five, which reward motivated them the most. 4he last

part of the questionnaire contained four open questions. -ome questions were

reversed and asked repeatedly in order to make sure the respondents understand and

read the questions carefully. In total /> employees participated in

the survey. 4he author strongly feels that the research and the questionnaire were conducted in a

carefully and proper manner and due to the high respondent rate it is possible to draw the

conclusion that the results speak generally for the whole ngro work force. In addition to the

questionnaire, some qualitative information was gathered throughout two personal

interviews with the store manager and assistant manager. 4he author chose to

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interview these two individuals due to the fact that they were able to give some in

sight information on the specific opportunities and threats that ngro has been

experiencing concerning the company;s reward systems and the employees work

motivation. 4he interviews were carried out as semistructured. 4he questions were

sent out to the interviewees in beforehand, hence giving them the opportunity to

prepare. 4he interviews lasted approximately one hour and contained *)0 questions.

4he questionnaire and the interview questions can be found in the appendix.

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!HAPTER 5

DATA ANA$%SIS

TRODU!TION

his section the results of the empirical analysis are reported and presented. 4hesentation proceeds with an analysis of the descriptive statistics on the variables

der consideration. 4he statistical program used for the analyses and presentationdata in this research is the -tatistical @ackage for the -ocial -ciences '-@--sion )/. 4o facilitate ease in conducting the empirical analyses, the results of thecriptive analyses are presented first, followed by the inferential statistical analysis.e upper level of statistical significance for null hypothesis testing was set at 1J.

statistical test results were computed at the /tailed level of significance inordance with the nondirectional hypotheses presented '-ekaran, /00).

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SU$TS OF THE *OR& MOTI#ATION AND SATISFA!TIONUESTIONNAIREscriptive statistics in the form of arithmetic means and standard deviations for thepondents were computed for the various dimensions assessed by the 5orktivation and -atisfaction 6uestionnaire. 4he means and standard deviations of therk 3otivation and -atisfaction 6uestionnaire are presented in 4able +.).

-,e 501 Descri(tive statistics for t+e di/ensions of wor6 /otivation andisfactionria-,e

rk ontentymentmotion

cognitionrking onditions

nefitssonal

aderK-upervisorneral

an

>807+?>//ndard Deviation

here high variables correspond to low motivationth respect to the dimensions of work motivation assessed by the work motivation

d satisfaction questionnaire, 4able +.) indicates that the means for the workntent, payment, promotion, recognition, working conditions, benefits, personal,derKsupervisor and general ranged from a low of ).>/ to a high of /.77.

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herefore appears that staff in the sample are relatively motivated, however, thean values for payment, promotion, recognition and benefits were the lowest. 4hesean values indicate the areas that employees were most likely to be demotivated andsatisfied.ble +.) thus shows that staff in the sample is most likely to be motivated due toir working conditions, personal and general dimensions. 4hey are least motivatedthe payment they receive and recognition as determined by the 5ork 3otivation

d -atisfaction 6uestionnaire.01 INFERENTIA$ STATISTI!Shis section the results of the inferential statistical techniques used in the study are

sented. In order to test the research hypotheses, the @earson @roduct 3omentrrelation oefficient was calculated as well as 3ultiple 2egression and AnalysesPariance 'A9%PA. #ased on the results obtained from the research, conclusionsdrawn with respect to each hypothesis generated for the research undertaken in theani"ation at which the research was conducted.

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T+ere is no need to ca,cu,ate t+e corre,ation -etween t+e di/ensions of t+eseria-,es wit+ eac+ ot+er so de,ete t+is to(ic is reward recognition and /otivation so

n7t /ention satisfaction in it

ou 8ust +ave to ca,cu,ate t+e /ean of /otivation" reward and recognition -. first,cu,ating t+e /ean of t+eir factors t+en t+e w+o,e varia-,e0ou need to ca,cu,ate t+e corre,ation -etween reward and /otivation t+en of

cognition wit+ /otivation in order to ac+ieve .our o-8ectives0a6e t+e gra(+s to re(resent t+e /ean of eac+ varia-,e and a,so scatter diagra/ to

(resent t+e corre,ation

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0101

ORRE$ATIONe @earson$s @roduct 3oment orrelation oefficient was computed for theposes of determining the following relationships/,

0.01 as well as between general and work motivation and satisfaction 'r : 0.>+, p.01.e results indicate that for the intercorrelation matrix exploring the relationshipween the dimensions of the 5ork -atisfaction and 3otivation 6uestionnaire, that

the coefficients were positive. 4he results depicted in 4able +./ indicate that theresignificant statistical relationship between the dimensions of work motivation andsfaction. Accordingly, the null hypothesis is rejected.-,e 50 4e re,ations+i( -etween rewards" recognition and wor6tivation and satisfaction

or6 satisfaction and Motivationwardscognition? OO/ OO

rrelation is significant at the 0.0) level '/tailedere is a statistically significant, direct and positive relationship between rewardsd work satisfaction and motivation 'r : 0.7?, p R 0.0).

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nce, if rewards offered to employees were to be altered, then there would be aresponding change in work motivation and it is just motivation not satisfactionsatisfaction. 4he coefficient ofermination, '2 squared : 0 .8+, implies that 8+J of the variation in worktivation and satisfaction of the sample can be attributed to rewards received, whichplies that the remaining /?J can be explained by other factors not considered.e results indicate that there is a statistically significant, direct and positiveationship between recognition and work satisfaction and motivation 'r : 0.*/, p R). 4his implies that if the recognition accorded to employees were to change,re would be a change in work motivation and satisfaction. 4he coefficient ofermination, '2 squared : 0.?0, implies that ?0J of the variation in work

tivation and satisfaction of the sample can be attributed to recognition, while themaining +0J can be attributed to other variables which were not explored in the

rent research.010)

U$TIP$E RERESSION ANA$%SISthe basis of the results obtained indicating a direct positive relationship betweendimensions of work satisfaction and motivation, all the dimensions of the

trument were assessed using multiple regression analysis to ascertain the extent toich they explain the variance in work satisfaction and motivation.

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

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-,e 50 5isfaction*+/+/8?)+0+>/>/

*?+11/>+?7/7?7+?/1>+171?11>1/>>7)0+1for #7187?>*0>7187?>*0>+1/?7>1?+)?.1*

?/17+1*>>. D : 0.00OO

>O

0OO

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0OO0OO0OO0OO0OO0OO0OOe results shown in 4able +.+ indicate a relatively high percentage of the variation inrk motivation and satisfaction can be explained by the variables entered in the

uation '2 squared : 7+./8JM 2 squared 'adjusted : 8).+J. 4hus 8)J of the

iance in work motivation and satisfaction can be explained by work content,yment,motion,ognition,rking

nditions,nefits,sonal,derKsupervisor and general dimensions.

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e Dratio of )?.1* 'p R 0.0) indicates the regression of work motivation andsfaction on the dimensions assessed, expressed through the adjusted squaredltiple '2 squared 'adj. : 8).+0J is statistically significant. !ence the null

pothesis is rejected. 4hese variables account for 8)J of the variance in worktivation and satisfaction. 4his finding suggests that other unexplored variables

uld account for the other variance in work motivation and satisfaction.0104 ANA$%SIS OF #ARIAN!E :ANO#A, s : .?*.


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-,e 5011O#A9 Differences in rewards and recognition and wor6tivation and satisfaction -ased on educationa, @ua,ificationsucationa, ,eve,tricO

plomagreesters

heran

8>8/

1

0OO+effe7s Testspondents

hucational levels up

tricfernificantly from the

maining groupshere higher scores are indicative of lower rewards and recognition, worksfaction and motivation.R 0.0)

ere is a significant mean difference in the rewards and recognition 'work

tivation and satisfaction experienced by employees with lower levels ofucation. In this instance, those with education levels up to matric indicated the leastrk motivation and satisfaction relative to the other education levels. mployeesh the educational level of matric reported the lowest levels of work motivation andsfaction '3ean : /.), s : .?0 than employees with diplomas ').?8, s : .+8,rees '3ean : ).8>, s : .18, 3asters degrees '3ean : ).?8, s : .?* and other

alifications '3ean ).?/, s : .>+.


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-,e 501)O#A9 Differences in rewards and recognition and wor6tivation and satisfaction -ased on 8o- grade

- rade*)0))O)/)>)+)1an)>8+*7/

1

0OO+effe7s Test

)) respondentsfernificantlym the other groups

here higher scores are indicative of lower rewards and recognition, worksfaction and motivation.R 0.0)

ere is a significant mean difference in the rewards and recognition 'worktivation and satisfaction experienced by employees based on their job grade.ployees in @B )) reported the lowest levels of reward and recognition 'worktivation and satisfaction '3ean : /./8, s : .1* than employees in the other jobdes. mployees in @B )1 evidenced the highest work motivation and satisfactionative to the rewards and recognition they received '3ean : ).?/, s : .>?.


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-,e 5014O#A9 Differences in rewards and recognition and wor6tivation and satisfaction -ased on tenurenureyearyearsO0 years)1 years/0 years0 yearsan*/?*7/

1

0OO+effe7s Testose employedween ) and 1rs

fernificantly fromse in the otherups

here higher scores are indicative of lower rewards and recognition, work

sfaction and motivation.p R 0.0)ere is a significant mean difference in the rewards and recognition 'worktivation and satisfaction levels of employees with )1 years of experience '3ean.)/, s : ./+ and those with fewer or more years$ service. 4hose with )E1 years$vice reported the lowest rewards and recognition 'work motivation andsfaction compared to the other groups. 4hose with )?/0 years$ service in theani"ation indicated the highest rewards and recognition 'work satisfaction andtivation compared to all the other categories of employees.


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e -cheffe$s 4est reflected the following findings in terms of rewards andognition levels based on the work motivation and satisfaction questionnaire and thegraphical variables of the sample

1st attempt-proposal rejection on 10-jan

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