The paper also not only discuss that the employee motivation is imperative for the overall organizational performance, but also talks about how to retain a motivated workforce in the organization what if this study should include a specific industry or region. Motivation factors may be differing from industry to industry and class to class of employees such as high level and low level labor. Qualitative as well as quantitative research methodology has been adopted in this paper. A questionnaire was developed to guess the opinion of employees working in these organizations.
Impact of financial rewards on employee motivation in Kenyan Commercial Banks Thesis: Impact of financial reward system on employee motivation Thesis statement: Impact of financial reward system on employee motivation because employees are pillars of organization success and they must be motivated to contribute to organization success, organizations offer various reward systems to motivate employees.
Banks in Kenya5 I. Financial Rewards 7 C.
Non-financial Rewards 7 D. Employees are motivated by both intrinsic and extrinsic rewards. To be effective, the reward system must recognize both sources of motivation. All reward systems are based on the assumptions of attracting, retaining and motivating people. Financial rewards are an important component of the reward system, but there are other factors that motivate employees and influence the level of performance.
Several studies have found that among employees surveyed, money was not the most important motivator, and in some instances managers have found money to have a demotivating or negative effect on employees.
Organizations are constantly looking for ways of enhancing their employee motivation. The employees of an organization are vital to Impact of financial rewards growth and success of the organization and in many cases, an organization success is defined by its employees Bennet, Organizations need people to get things done Bennet, Rewards Flynn argued that rewards and recognition programs keep high spirits among employees, boosts up their morale and create a linkage between performance and motivation of the employees.
The packages typically include bonuses, pension schemes, health insurance, allocated cars, beneficial loans, subsidized meals, profit sharing, share options and much more Pitts, To ensure the reward system is effective and motivates the desired behaviors, it is essential to consider carefully the rewards and strategies utilized and ensure the rewards are linked to or based on performance.
To be effective, any performance measurement system must be tied to compensation or some sort of reward. Rewarding performance should be an ongoing managerial activity, not just an annual pay-linked ritual.
Job Satisfaction Where job satisfaction, as defined by Lock cited in Gruneberg,p. In order to maximize 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.
Out of the 44 banking institutions, 31 locally owned banks comprise 3 with public shareholding and 28 privately owned while 13 are foreign owned as shown in Chart 1.
The foreign owned financial institutions comprise of 9 locally incorporated foreign banks and 4 branches of foreign incorporated banks. Pay is the most significant and motivating benefit that is received in return for performing a task or service.
It is pay that motivates individuals to go out and seek work. Pay can also be a powerful de-motivator, if employees are not satisfied with the reward package, it will be hard for the company to recruit and retain good individuals. Kenyan Commercial Banks are having problems in finding a suitable and functioning reward system that would motivate the employees in a proper way.
The main problem has been the ability to retain experienced staff. The reward types are decided by the upper management, and disseminated downwards to the line manager however decides how to implement the rewards to their juniors.
Oosthuizen stated that it is among the function of managers to motivate the employees successfully and influence their behavior to achieve organizational efficiency. La Motta is of the view that performance at job is the result of ability and motivation.
Ability formulated through education, equipment, training, experience, ease in task and two types of capacities i.Impact of Rewards on Employee Motivation of the system that considers both intrinsic and extrinsic rewards which in turn prospers high performance culture in the telecom industry.
paid sick leaves and purchase discounts. Non-financial rewards do not directly. performance such as performance bonus, job promotion, commission, tips, gratuities and gifts etc.
Non financial rewards are non monetary/non cash and it is a social recognition such as acknowledgement, certificate, and genuine appreciation etc. The non financial rewards is also called materials award (Neckermann and Kosfeld, ).
Impact of Financial and non Financial Rewards on Employee Motivation Saira Yousaf,Madiha Latif, Sumaira Aslam and Anam Saddiqui .
The term “incentives”, “Rewards”, and “Recognition” are used interrelated in the organization setting The impact of Non-Financial Incentives on employees’ motivation iridis-photo-restoration.com 38 | Page financial incentives. Financial incentives include direct payment of cash and while non financial incentives may Non- financial.
With some financial rewards, like one's salary or commission, the employee sees an immediate correlation between helping the company meets its goals and the positive impact it has on his or her.
The impact of three independent variables rewards, monetary rewards and non-monetary rewards on the dependent variable motivation was studied. Four dimensions of motivation, focus, determination, effort and satisfaction were considered for the development of theoretical framework.