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Identifying Employee motivation level with Job monetary benefits
Table of Contents
1 INTRODUCTION ................................................................................................................... 3
1.1 Background of the Study.................................................................................................. 3
1.2 Purpose of the Study ........................................................................................................ 4
1.3 Research Question and Hypothesis.................................................................................. 4
1.4 Importance of the Study................................................................................................... 5
1.5 Study’s Assumptions and Applicable Limitations........................................................... 6
1.5.1 Assumptions.............................................................................................................. 6
1.5.2 Limitations ................................................................................................................ 6
2 LITERATURE REVIEW ....................................................................................................... 7
3 METHODOLOGY................................................................................................................ 10
3.1 Research Method............................................................................................................ 10
3.2 Data Collection............................................................................................................... 10
3.3 Sampling......................................................................................................................... 10
3.4 Variables of the Study.................................................................................................... 11
3.5 Data Analysis ................................................................................................................. 11
4 DATA ANALYSIS AND DISCUSSION ............................................................................ 12
4.1 Findings and Discussion................................................................................................. 12
4.1.1 Demographic Results .............................................................................................. 12
4.1.2 Employees Performance and Motivation................................................................ 13
4.1.3 Monetary Benefits................................................................................................... 14
4.1.4 Non-Monetary Benefits........................................................................................... 15
4.1.5 Suggestions and Opinions....................................................................................... 16
4.2 Hypothesis Testing and Discussion................................................................................ 17
4.2.1 Relationship between Monetary Benefits and Employees Performance and
Motivation............................................................................................................................. 17
4.2.2 Relationship between Non-Monetary Benefits and Employees Performance and
Motivation............................................................................................................................. 19
5 CONCLUSION AND RECOMMENDATIONS ................................................................. 22
Conclusion of the Study............................................................................................................ 22
REFERENCE................................................................................................................................ 24
Appendix A - Survey Questionnaire............................................................................................. 26
1 INTRODUCTION
1.1 Background of the Study
Employees of any organization are the backbone and they are to be treated with grace. It is
important to take care of their welfare as it forms a productive environment for the employees.
The incentives in eth form of awards, monetary increment, promotions etc. are also the great way
to enhance the productivity of the workers. There have been many researches, also according to
the common observation it has been made very clear that no employee works productively unless
he/she is promised future endeavors that support them (Hong, 2006).
It is a very common observation that the employee who has a future security, they will invest
their time and energies more efficiently rather than those who have no future upgradation. The
employees are motivated mostly by the bonuses that they are being given for their hard work for
the company. It all depends that how many motivational parameters are set for the company so
that they can help the employee to see their future growth. People who are motivated are more
likely to learn new skills and upgrade their knowledge so as to become a vital part of any
company. It is the responsibility of any company that they take care of their employees in order
to motivate them to be a productive part of the organization who will in future put their deemed
effort to make sure that the organization also progresses along with the employees themselves
(Ballentine et al., 2012).
The research that is being conducted here will focus on the monetary benefits and motivation
that can draw attention of the employees to being productive. The research that is to be
conducted is especially meant for the Emirate of Dubai, UAE. The effect of these incentives will
be noted on different levels for staff and management along with people from different
backgrounds. The researches have been done previously to understand the mind frame of people
and then to make policies accordingly.
This research is meant to make the right monetary decision that would motivate the employee to
make the right decision. In this research the main focus from different types of incentives is on
the monetary encouragement. Employees are moved by the thought of being given bonus and
also increments in result of their hard work. The hard work of people is what needs to be cashed
and this is where the companies are supposed to come up with the strategies to provide their
employees with the monetary incentives that help them look forward to something. The hope for
future success and also being provided with bonus or increment is going to help the organization
to motivate the employees to achieve the target. The research done is very helpful to identify the
right strategy to be made use of to achieve the complete benefits of the skill set the employees
possess in its fullest.
1.2 Purpose of the Study
The focus of the study is mainly the monetary and benefits that are offered to the employees to
keep them motivated, the research will review these benefits offered to them in terms of helping
them in their motivation and what impact does it have on the development and growth of the
organizations they are working for. Different people have different preferences and as the survey
for this study will be conducted with the employees of the organizations having different
background and industry they are working in, so this will give us knowledge of the preferences
of the employees of the different nature of the organizations. These results and choices of the
employees can then be shared with their organizations so that they would know better how to
keep their employees motivated.
The purpose of the research is also to primarily review the different theories and suggestions in
regards of relationship between monetary incentives of all types (cash rewards, salary
increments, & bonuses) and achieving higher level of output and productivity in the Emirate of
Dubai, as there is no specific research conducted in regards to the employees of this city. Based
on our research we will develop a theory to link if monetary incentives of all types will have a
direct or indirect effect on employees of different levels within organizations in Dubai. The
research delivers vital understandings of the monetary incentive methods that would be essential
for decision makers to create the right strategy for a highly motivated and productive employee
(Sprinkle, 2002).
1.3 Research Question and Hypothesis
The research question that is answered in this research is:
How important is monetary benefits such as (case rewards, salary increments and bonuses) to
increase employee motivating?
Based on the above research question and study purpose, the following Null and Alternative
hypothesis are developed:
H0: Monetary benefits make the employees more motivated than appreciation and recreational
activities.
H1: Recreational activities and appreciation culture is more important for the employee’s
motivation than the monetary benefits.
1.4 Importance of the Study
Importance of this research is the understanding it would give that what are the needs of
employees and also that what are the main things that motivate the employee to work more
efficiently. The monetary motivation that is to be provided to the employees is what result
further in eth growth of the company and this is what is to be studied with the help of this
research. It is very important that in the era of great competition the employees are valued and
taken care of because this is what would be the result in the growth of the company. It is very
important that for the successful completion of the ongoing projects employees have a calm and
well-settled mind so as to give the right amount of productivity to the organization.
The results of the study would also help in forming the framework that would be formed to
understand the effects of the incentives of people from different backgrounds and also from
different organizations. The diversity that would be captured from the different angles is what
will help understand that what is best for the Emirate of Dubai in this regard. This study is going
to help the organizations to pin point one of the important things that if employees are given their
due respect and they are awarded with the monetary incentives then the changes produced in the
organization will be positive and fast forward to the success.
Employees or staff of any company is the vital part because as a team the company or
organization can thrive. So as to grow the organization it is important that the employees are
given regard and also taken care of.
1.5 Study’s Assumptions and Applicable Limitations
1.5.1 Assumptions
During the research work the assumption made is that the organizations are looking forward to
shape themselves to provide the employees with the incentives. These incentives are going to be
monetary. The people from different backgrounds and organizations are to be researched on in
order to get the detailed information that how the providing of monetary benefits such as cash
rewards, salary increments and bonus etc. are going to affect the overall organizations. The
method of collection of the information is with the help of the questionnaire that is distributed.
In the current research another assumption made is that the providing of such monetary benefits
will further result in gaining the employee loyalty and the hard work for the benefit of the
organization. Growing of the personal skills by the employee is also a very common practice and
it needs to be researched on.
It has been noticed that despite the monetary benefits the employees leaves the company and join
the rival company and it is also noticed that despite of benefits and incentives from rival
companies the employees stay loyal to their current companies. There are different aspects that
will be studied during this research.
1.5.2 Limitations
The limitations that are found during the research are that the research cannot be done on the
larger scale in Emirate of Dubai. It was not possible to form the focus groups etc. so only way to
collect the information and get the opinion of people and employees from different organizations
is the use of questionnaire.
2 LITERATURE REVIEW
Inspiration is the key to drive the person in achieving his/her goal. It can be regarded as a mean
or an instrument that bring about the idea and urge to proceed further in the life (Baptiste, 2008).
It is the impulse that makes a person to accomplish an objective in the life. This practice has
helped to bring many known people in the spotlight. The longing for achieving something
different and better than the ones that have been already accomplished by many is termed as
inspiration.
Robbins has characterized the representative inspiration as: "the readiness to apply abnormal
amounts of exertion toward hierarchical objectives, adapted by the exertion's capacity to fulfill
some individual need." The same has been referred in Ramlall (2004). When it comes to
workplace inspiration is the need of the organization that further pushes the staff and managers
to achieve the success of the organization. In this study inspiration is used to help the different
clusters of the organizations to come together and understand the authoritative relationship in
order to gain the common objective that is company’s uplift (Dobre, 2013).
Inspiring of the workers is a very well-versed topic as it has produced a very positive result;
however, many organizations are still known to ignore it (Geraghty, 2013). This topic has been
confined by the different methodologies and hypotheses and has not been very much implied in
its true colors. For the current research the inspiration hypotheses that are studied are divided
into four further classes that are worker inspiration that is speculated and profiled with the
motivation by the scholars Maslow (1943) and McClelland (1961). Representative inspiration is
the one that is explained by hypotheses of Adams (1963) that is based on the earlier work by
another scholar Festinger (1957). The worker inspiration anticipation hypothesis is put forward
by Vroom (1964); it is finished onto McGregor (1960) (Johnson, 2007; Ballentine et al., 2012).
Every employee when employed is bound in the contract with the organization and they join the
company with some particular vision of the future. Every worker has a motivation to do their
best in their field and also it is a moral right of every employee to be treated on the equality basis
at a workplace. The idea behind the equality is that every employee is putting their effort towards
the same association and they deserve to be dealt equally in all regards. The article titled "Why
Your Employees Are Losing Motivation" by Harvard Management update has put forth a point
to ponder upon for the employers and that is the need of workers or employees. The employees
seek value, sense of accomplishment and also kinship. This is how the employees can be
motivated towards the organizational benefit (Amabile et al., 2008). Along with the employees
the representatives are also supposed to be dealt reasonable and they are to be appreciated on the
merit basis. It has been known that workers always want that they are encouraged and celebrated
for the achievements that are made possible due to their hard work and efforts for the company.
The authorities are under the moral obligation to praise and also make the employees feel special
for the work that has been done by the workers. The study shows that every employee is always
in the need of association with the ones they work with (Burton, 2012; Fairbank & Williams,
2001).
For the current research the motivator that is being studied is the money. Monetary incentives are
considered to bring the high scale productivity for the organizations (Belcher, 2016; Agrawal,
2010). The previous research that has been done in this regard has 1,658 individual employees.
With the monetary incentives 1500 of the total that makes 89% revealed a positive change. The
different forms of monetary incentives have been made use of such as commission pay, gift
certificate of cash rewards. In this research the details have been provided about monetary
incentive being not a very good way to motivate people. It has also shown that monetary
incentives are more effective for the lower level of employees and not much effective for the top
management which is the bigger drawback because the whole team should be able to work with
the same enthusiasm that drives the company towards the success. It is however, very effective
on the employees who have not been performing very well before (Fairbank & Williams, 2001).
Another study in the same regard discusses reward system in public and private sectors (Durst,
2014; Durst, 2014). The research was conducted in terms of pay, benefits other than basic pay
and also the psychological values. In this research it has been pin pointed that level of
satisfaction that is in private sectors is not the same as in public sectors.
Extrinsic rewards such as pay raise, bonuses or other benefits are considered to be the most
practical rewards that are given to the employees and not just in the preset era but also in the old
days they were considered to be the motivational tools for encouraging employee to actually play
his role for the organization to reach to the heights of success (Thomas, 2009; Bonner, 2002).
The literature review has shown that inspiration and motivation are the most important things for
the organization to thrive. Motivation of the workers is crucial for the organization. And in this
regard the monetary incentive that is used as the motivation tool is not a new way to motivate
people but an old way to push people to work towards the success of the company and their own
financial growth too.
3 METHODOLOGY
3.1 Research Method
Research method helps in answering the research question by providing a clear path of executing
the research so that research aim can be accomplished successfully. Research method can be of
three types i.e. qualitative, quantitative and mixed research method (Creswell, 2013). Qualitative
research is the place the examination discoveries are not touched base at by measurable or other
quantitative methodology. Quantitative research is the place the examination discoveries result
from numerical demonstrating and factual estimation or measurable derivation (Zikmund, 2010).
This research has adopted quantitative research design to answer the research questions. The
quantitative aspect is covered in the research are related to the statistical outcomes obtained from
the survey. This helped in gathering, measuring, and converting survey data into numeric form
using the statistical measures to recognize the relationship between the study's variables (Andrew
et al., 2011). Thus, the adopted method helped in assessing the research aim and problem
efficiently.
3.2 Data Collection
There are different tools and approaches that can be used to conduct the data for the quantitative
study. On the selected topic of employee motivation and monetary benefits, several tools such as
Focus groups, polls, surveys, questionnaire, and interviews can be considered (Andrew et al.,
2011).
However, in this research, the primary data is conducted by using the survey approach. The
survey has been conducted with the employees working in different organizations in Dubai. The
employees have been surveyed through a questionnaire, which was used as an instrument. The
questions of the questionnaire were mostly centered on the preferences of the employees, things
that keep them motivated and how do they want their workplace environment to be.
3.3 Sampling
Target respondents include the managers and executives from different sectors with different
roles and job requirements. In this way, the research obtained better data to interpret the
diversified employees’ behaviors, wants and requirements in terms of monetary benefits and how
they can become motivated and loyal with the company.
There will be a sample of 50 respondents from these employees target segment to make the
survey response collected. The number of 50 is chosen because of the time and resource
limitations as well as the results might get repetitive after the 50 respondents as has been studies
from the literature too. Based on the respondents’ data we will be able to make the analysis and
find out whether the monetary benefits really matter in motivating the employees or it is just a
normal reward which have no impact on their motivation.
3.4 Variables of the Study
Dependent variable is employees’ performance level and motivational level. To get data on these
two variables we will keep questions in our questionnaire in order to measure the two dependent
variables. It will be denoted by ‘Y’.
Independent variables include the monetary benefits such as cash prizes, bonuses and increments
and other kind of non-monetary rewards that these employees get. It will be denoted by ‘X’.
3.5 Data Analysis
The data has been analyzed by using statistical analysis in which an econometric model was
developed and tested through regression techniques with the help of statistical software SPSS.
The regression model is shown below:
Y= a+bX1 + cX2 + dX3 + Δ
Along with the developed model, the study also presents the descriptive statistics of the data by
computing mean, median, mode standard deviation, frequencies and other relevant statistical
measures, which are presented by using relevant tables and charts.
4 DATA ANALYSIS AND DISCUSSION
4.1 Findings and Discussion
4.1.1 Demographic Results
Gender Age Job Salary
Mean 1.33 2.67 2.78 4.20
Median 1.00 3.00 3.00 4.00
Mode 1 3 2 4a
Std. Deviation .475 .914 1.303 1.338
Variance .226 .836 1.698 1.790
4.1.2 Employees Performance and Motivation
Q5 Q6 Q7 Q8 Q9
Mean 4.13 3.70 3.75 3.92 3.58
Median 5.00 4.00 4.00 4.00 4.00
Mode 5 4 5 4 5
Std. Deviation 1.142 1.319 1.310 1.225 1.441
Variance 1.304 1.739 1.716 1.501 2.078
4.1.3 Monetary Benefits
Q14 Q15 Q16 Q17
Mean 3.85 3.53 3.72 4.47
Median 4.00 4.00 4.00 5.00
Mode 5 4a
5 5
Std. Deviation 1.351 1.321 1.303 1.127
Variance 1.825 1.745 1.698 1.270
4.1.4 Non-Monetary Benefits
Q10 Q11 Q12 Q13
Mean 2.22 2.53 2.35 1.53
Median 2.00 2.00 2.00 1.00
Mode 1 2 1 1
Std. Deviation 1.391 1.346 1.338 1.127
Variance 1.935 1.812 1.791 1.270
4.1.5 Suggestions and Opinions
Q18 Q19 Q20
Mean 1.73 1.62 1.75
Median 1.00 1.00 1.50
Mode 1 1 1
Std. Deviation 1.087 .922 1.035
Variance 1.182 .851 1.072
4.2 Hypothesis Testing and Discussion
The linear regression has been conducted using SPSS to test the developed hypothesis and to
statistically support the rejection or acceptance of the hypothesis. The results acquired from the
regression in context of the dependent variable (Employees Performance and Motivation) and
independent variables (Monetary Benefits and Non Monetary Benefits) are presented below:
4.2.1 Relationship between Monetary Benefits and Employees Performance and
Motivation
Null Hypothesis:
H0: Monetary benefits make the employees more motivated than appreciation and recreational
activities.
Variables Entered/Removeda
Model Variables
Entered
Variables
Removed
Method
1
Q17, Q14, Q16,
Q15b
. Enter
a. DependentVariable:Em.P_Aver
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .508a
.258 .204 .699
a. Predictors:(Constant),Q17, Q14, Q16, Q15
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 9.341 4 2.335 4.785 .002b
Residual 26.842 55 .488
Total 36.183 59
a. DependentVariable:Em.P_Aver
b. Predictors:(Constant),Q17, Q14, Q16, Q15
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 3.791 .551 6.883 .000
Q14 .006 .069 .010 .086 .932
Q15 .283 .072 .477 3.924 .000
Q16 -.106 .071 -.176 -1.492 .141
Q17 -.143 .082 -.205 -1.740 .087
a. DependentVariable:Em.P_Aver
To test the alternative hypothesis, all elements of independent variable (Monetary Rewards) have
been entered for the regression analysis to determine their relationship with the performance and
motivation of employees. In SPSS, the model has accepted all the elements of independent
variable, Q14 (High Scale Productivity), Q15 (Mind Change), Q16 (Various Cash Rewards) and
Q17 (Lower and Top Level Employees).
Model Summary illustrates the explanation of overall relationship between the independent and
dependent variables. It is suggested that the components in Monetary Benefit as an independent
variable (High Scale Productivity, Mind Change, Various Cash Rewards, and Lower and Top
Level Employees) and the dependent variable (Employees Performance and Motivation) have
strong and positive relationship because it shows the R as 0.508 or 50.8%. In addition, R2 value
examines the variance's proportion in dependent variable explained by independent variables.
However, in the same summary table, R2 value is 0.258, which means that Employees
Performance and Motivation explains 25.8% of the variability of Monetary Benefit. Furthermore,
Adjusted R2, which is an estimate of effect size, indicated as 0.204 or 20.4% that is the impacts
of independent variables on dependent variable.
In addition to the above, ANOVA table contained P-value, Residual value, F-value, and
significant level of F-value that helps in either accepting or rejecting the hypothesis. The residual
value determines the variation between the exact value and the forecasted value of 'Y'. The table
has shown the value of unexplained variances as 26.842 out of the total 36.183. Conversely, P-
value explains the possibility; therefore, it should be less than 0.05 to accept the null hypothesis.
Thus, in this case, P-value is less than 0.05, which means that null hypothesis is accepted and the
model is statistically significant. Hence, it can be said that 'monetary benefits make the
employees more motivated than appreciation and recreational activities'.
4.2.2 Relationship between Non-Monetary Benefits and Employees Performance and
Motivation
Alternative Hypothesis
H1: Recreational activities and appreciation culture is more important for the employee’s
motivation than the monetary benefits.
Variables Entered/Removeda
Model Variables
Entered
Variables
Removed
Method
1
Q13, Q10, Q11,
Q12b
. Enter
a. DependentVariable:Em.P_Aver
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .255a
.065 -.003 .784
a. Predictors:(Constant),Q13, Q10, Q11, Q12
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 2.354 4 .588 .957 .467b
Residual 33.829 55 .615
Total 36.183 59
a. DependentVariable:Em.P_Aver
b. Predictors:(Constant),Q13, Q10, Q11, Q12
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 3.643 .263 13.834 .000
Q10 .109 .082 .194 1.342 .185
Q11 -.015 .086 -.027 -.180 .858
Q12 .104 .098 .178 1.066 .291
Q13 -.201 .123 -.289 -1.633 .108
a. DependentVariable:Em.P_Aver
To test the hypothesis, all elements of independent variable (Non-Monetary Rewards) have been
entered for the regression analysis to determine their relationship with the performance and
motivation of employees. In SPSS, the model has accepted all the elements of independent
variable, Q10 (Kinship), Q11 (Appreciation), Q12 (Prefer Non-monetary Rewards) and Q13
(Positive Employees Performance)
Model Summary illustrates the explanation of overall relationship between the independent and
dependent variables. It is suggested that the components in Non-Monetary Benefit as an
independent variable (High Scale Productivity, Mind Change, Various Cash Rewards, and Lower
and Top Level Employees) and the dependent variable (Employees Performance and Motivation)
have weak and positive relationship because it shows the R as 0.255 or 25.5%. In addition, R2
value examines the variance's proportion in dependent variable explained by independent
variables. However, in the same summary table, R2 value is 0.065, which means that Employees
Performance and Motivation explains only 6.5% of the variability of Non-Monetary Benefit.
Furthermore, Adjusted R2, which is an estimate of effect size, indicated as -0.003 or -0.3% that is
the impacts of independent variables on dependent variable.
In addition to the above, ANOVA table contained P-value, Residual value, F-value, and
significant level of F-value that helps in either accepting or rejecting the hypothesis. The residual
value determines the variation between the exact value and the forecasted value of 'Y'. The table
has shown the value of unexplained variances as 33.829 out of the total 36.183. Conversely, P-
value explains the possibility; therefore, it should be less than 0.05 to accept the hypothesis.
Thus, in this case, P-value is greater than 0.05 that is 0.467, which means that the hypothesis is
rejected and the model is not statistically significant. Hence, it can be said that 'recreational
activities and appreciation culture is more important for the employee’s motivation than the
monetary benefits'.
5 CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion of the Study
By concluding the study findings, it has been depicted that reward system is widely connected
with the concept of motivation that deals with the employees' performance at workplace to fulfill
their job responsibilities. The positive or negative performance of employees is widely depends
on the support of the organizations in which they are working as well as its motivational
strategies. It has been concluded that the positive employees performance can be achieved by
giving both monetary and non-monetary rewards that helps in retaining employees for long-term
as well as have impacts on both employees and organization (Herzberg et al., 2011).
Concerning to the importance of employees motivation and reward system, the study under
consideration has been conducted with the aim to explore the role of both monetary and non-
monetary rewards in employees' motivation and retaining them productive for the overall success
of the organization. The study has been identified significant in terms of understanding the role
of monetary and non-monetary rewards in retaining the employees and enhancing their
motivation at organizational level (Singh, 2006).
It has been further concluded with that the motivation of employees influence their performance
at workforce. In literature, several researchers have identified with different factors of
motivation, which can be categorized as monetary and non-monetary factors. Among those,
monetary rewards may include commission pay, gift certificate of cash rewards, and bonuses
while non-monetary benefits include kinship, compensation, appreciation and job security
(Vroom et al., 2005; Belcher, 2016). Thus, it has been claimed that any of these monetary or
non-monetary factor motivates or de-motivates the employees, if it meets or exceeds with the
desire and need of the employees, which ultimately become the reason of success or failure of
certain organization.
Moreover, it has been concluded that rewards can be of two types monetary and non-monetary. It
has been depicted that with organizational and employees perspectives, both kind of rewards are
important for an employee to make them productive for the organization and achieve maximum
benefits from them for the future growth and development of an organization, but the findings of
the study has been depicted that the monetary rewards benefits more to the employees as they
become more motivated than the appreciation and recreational activities (Gabris & Ihrke, 2001;
Thomas, 2009).
Besides, the survey findings revealed that the employees want their organization to provide more
monetary benefits to the employees so that they become more motivated and show more positive
performance at workplace which will ultimately contribute to the growth of the firm. Based on
the findings, it has been recommended that the organizations should define the parameters for
performance measurements prior to deciding the forms of rewards to offer and should adopt
standardized methods in the measurement of performance so that employees can be rewarded
fairly (Baptiste, 2008). Moreover, the organizations must ensure that the rewards are contingent
on performance. Specifically, the organization should vary their rewards appropriately according
to the performance of the employees and communicate the reasons for the variances. Essentially,
informing the employees about the reasons for the variances motivates lowly performing
employees to attain higher performance. Nonetheless, the strategy can also lead employees to
quit. Therefore, the strategy aims at identifying the most suitable workforce based on
performance (Agrawal, 2010). Finally, it is recommended that organizations should emphasize
on the importance of both monetary and non-monetary rewards. Monetary and non-monetary
rewards serve different purposes in motivating employees and ensuring retention of key talent.
Organizations should not limit the non-monetary rewards to non-economic forms of rewards
such as recognition. Essentially, they should consider following the recognition of an
achievement with a monetary reward (Armstrong, 2007). Consequently, this would increase
voluntary participation among the employees and increase the chances of the employees
committing to the organization.
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30(2), pp.157-72.
15) Geraghty, S., 2013. 20 Ways to Increase Employee Motivation Using Rewards. [Online]
Available at: https://www.talkdesk.com/blog/20-ways-to-increase-employee-motivation-
using-rewards [Accessed 3 May 2016].
16) Herzberg, F., Mausner, B. & Snyderman, B.B., 2011. The Motivation to Work. New
Jersey: Transaction Publishers.
17) Hong, J.-C., 2006. Impact of employee beneïŹts on work motivation and productivity.
[Online] Available at:
http://www.emeraldinsight.com/doi/pdfplus/10.1108/09556219510098064.
18) Johnson, C.R., 2007. EMPLOYEE MOTIVATION: A COMPARISON OF TIPPED AND
NON-TIPPED HOURLY RESTAURANT EMPLOYEES. B.M. Rider University.
19) Singh, H., 2006. DO REWARDS MOTIVATE EMPLOYEES? 13 November.
20) Sprinkle, G.E., 2002. Accounting, Organizations and Society. [Online] Available at:
http://www.sciencedirect.com.ezproxy.masdar.ac.ae/science/article/pii/S0361368201000
526?np=y.
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23) Zikmund, W.G., 2010. Business research methods. South-Western Cengage Learning.
Appendix A - Survey Questionnaire
Survey Questions Responses
Q1: What is you Gender?
a) Male 40
b) Female 20
Total 60
Q2: What is your age?
a) 18-25 years 6
b) 26-30 years 20
c) 30-35 years 22
d) +35 years 12
Total 60
Q3: What is Your Job Nature?
a) Private firm 12
b) Self-employed; 16
c) Business owner 11
d) Government Employee 15
e) ) Other 6
Total 60
Q4: What is your salary or pocket money? (in AED)
a) 500-1000 2
b)1000-2000 5
c) 2000-3000 10
d) 3000-4000 16
e) 4000-5000 16
f) +5000 11
Total 60
Employees Performance and Motivation
Q5: I am satisfied with my salary as it works as motivational factor for me
a) Strongly Agree 2
b) Agree 6
c) Neither agree nor disagree 5
d) Disagree 16
e) Strongly disagree 31
Total 60
Q6: The rewards offered by my organization are satisfactory to improve my
performance
a) Strongly Agree 6
b) Agree 8
c) Neither agree nor disagree 3
d) Disagree 24
e) Strongly disagree 19
Total 60
Q7: I am satisfied with the responsiveness of my organization toward
motivating employees via monetary and non-monetary rewards
a) Strongly Agree 7
b) Agree 3
c) Neither agree nor disagree 9
d) Disagree 20
e) Strongly disagree 21
Total 60
Q8: My Company achiving high level of performance of employees due to the
use of effective motivational strategies
a) Strongly Agree 5
b) Agree 5
c) Neither agree nor disagree 2
d) Disagree 26
e) Strongly disagree 22
Total 60
Q9: The performance of employees could be affected if company focus less on
the motivation of the employees
a) Strongly Agree 9
b) Agree 6
c) Neither agree nor disagree 7
d) Disagree 17
e) Strongly disagree 21
Total 60
Non-Monetary Benefits
Q10: Kinship motivates me to perform better as compare to monetary
rewards
a) Strongly Agree 26
b) Agree 14
c) Neither agree nor disagree 8
d) Disagree 5
e) Strongly disagree 7
Total 60
Q11: I become motivated when my company appreciate me on my
performance
a) Strongly Agree 16
b) Agree 17
c) Neither agree nor disagree 15
d) Disagree 3
e) Strongly disagree 9
Total 60
Q12: As compare to Monetary Rewards, I prefer to have non-monetary
rewards
a) Strongly Agree 22
b) Agree 13
c) Neither agree nor disagree 13
d) Disagree 6
e) Strongly disagree 6
Total 60
Q13: My company provides non-monetary rewards that ultimately bring the
positive change in the employees' performance
a) Strongly Agree 45
b) Agree 7
c) Neither agree nor disagree 3
d) Disagree 1
e) Strongly disagree 4
Total 60
Monetary Benefits
Q14: I believe that monetary incentives are considered to bring the high scale
productivity factor in an organization
a) Strongly Agree 6
b) Agree 5
c) Neither agree nor disagree 8
d) Disagree 14
e) Strongly disagree 27
Total 60
Q15: My mind could be change if the company do not offers satisfactory
monetary rewards
a) Strongly Agree 8
b) Agree 3
c) Neither agree nor disagree 15
d) Disagree 17
e) Strongly disagree 17
Total 60
Q16: Commission pay, gift certificate of cash rewards, bonuses are some of the
types of monetary rewards that motivates me a lot
a) Strongly Agree 5
b) Agree 6
c) Neither agree nor disagree 13
d) Disagree 13
e) Strongly disagree 23
Total 60
Q17: Monetary incentives are more effective for the lower level of employees
as compare to top management
a) Strongly Agree 4
b) Agree 1
c) Neither agree nor disagree 3
d) Disagree 7
e) Strongly disagree 45
Total 60
Suggestion & Opinions
Q18: My company need to focus on improving rewards strategy by
incorporating monetary rewards
a) Strongly Agree 37
b) Agree 9
c) Neither agree nor disagree 8
d) Disagree 5
e) Strongly disagree 1
Total 60
Q19: My company need to focus on improving rewards strategy by
incorporating non-monetary rewards
a) Strongly Agree 35
b) Agree 18
c) Neither agree nor disagree 3
d) Disagree 3
e) Strongly disagree 1
Total 60
Q20: The integration of monetary benefits will improve the overall
performance of the employees and bring the positive change
a) Strongly Agree 30
b) Agree 23
c) Neither agree nor disagree 2
d) Disagree 2
e) Strongly disagree 3
Total 60

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Identifying Employee motivation level with Job monetary benefits

  • 1. Identifying Employee motivation level with Job monetary benefits
  • 2. Table of Contents 1 INTRODUCTION ................................................................................................................... 3 1.1 Background of the Study.................................................................................................. 3 1.2 Purpose of the Study ........................................................................................................ 4 1.3 Research Question and Hypothesis.................................................................................. 4 1.4 Importance of the Study................................................................................................... 5 1.5 Study’s Assumptions and Applicable Limitations........................................................... 6 1.5.1 Assumptions.............................................................................................................. 6 1.5.2 Limitations ................................................................................................................ 6 2 LITERATURE REVIEW ....................................................................................................... 7 3 METHODOLOGY................................................................................................................ 10 3.1 Research Method............................................................................................................ 10 3.2 Data Collection............................................................................................................... 10 3.3 Sampling......................................................................................................................... 10 3.4 Variables of the Study.................................................................................................... 11 3.5 Data Analysis ................................................................................................................. 11 4 DATA ANALYSIS AND DISCUSSION ............................................................................ 12 4.1 Findings and Discussion................................................................................................. 12 4.1.1 Demographic Results .............................................................................................. 12 4.1.2 Employees Performance and Motivation................................................................ 13 4.1.3 Monetary Benefits................................................................................................... 14 4.1.4 Non-Monetary Benefits........................................................................................... 15 4.1.5 Suggestions and Opinions....................................................................................... 16 4.2 Hypothesis Testing and Discussion................................................................................ 17 4.2.1 Relationship between Monetary Benefits and Employees Performance and Motivation............................................................................................................................. 17 4.2.2 Relationship between Non-Monetary Benefits and Employees Performance and Motivation............................................................................................................................. 19 5 CONCLUSION AND RECOMMENDATIONS ................................................................. 22 Conclusion of the Study............................................................................................................ 22 REFERENCE................................................................................................................................ 24 Appendix A - Survey Questionnaire............................................................................................. 26
  • 3. 1 INTRODUCTION 1.1 Background of the Study Employees of any organization are the backbone and they are to be treated with grace. It is important to take care of their welfare as it forms a productive environment for the employees. The incentives in eth form of awards, monetary increment, promotions etc. are also the great way to enhance the productivity of the workers. There have been many researches, also according to the common observation it has been made very clear that no employee works productively unless he/she is promised future endeavors that support them (Hong, 2006). It is a very common observation that the employee who has a future security, they will invest their time and energies more efficiently rather than those who have no future upgradation. The employees are motivated mostly by the bonuses that they are being given for their hard work for the company. It all depends that how many motivational parameters are set for the company so that they can help the employee to see their future growth. People who are motivated are more likely to learn new skills and upgrade their knowledge so as to become a vital part of any company. It is the responsibility of any company that they take care of their employees in order to motivate them to be a productive part of the organization who will in future put their deemed effort to make sure that the organization also progresses along with the employees themselves (Ballentine et al., 2012). The research that is being conducted here will focus on the monetary benefits and motivation that can draw attention of the employees to being productive. The research that is to be conducted is especially meant for the Emirate of Dubai, UAE. The effect of these incentives will be noted on different levels for staff and management along with people from different backgrounds. The researches have been done previously to understand the mind frame of people and then to make policies accordingly. This research is meant to make the right monetary decision that would motivate the employee to make the right decision. In this research the main focus from different types of incentives is on the monetary encouragement. Employees are moved by the thought of being given bonus and also increments in result of their hard work. The hard work of people is what needs to be cashed and this is where the companies are supposed to come up with the strategies to provide their
  • 4. employees with the monetary incentives that help them look forward to something. The hope for future success and also being provided with bonus or increment is going to help the organization to motivate the employees to achieve the target. The research done is very helpful to identify the right strategy to be made use of to achieve the complete benefits of the skill set the employees possess in its fullest. 1.2 Purpose of the Study The focus of the study is mainly the monetary and benefits that are offered to the employees to keep them motivated, the research will review these benefits offered to them in terms of helping them in their motivation and what impact does it have on the development and growth of the organizations they are working for. Different people have different preferences and as the survey for this study will be conducted with the employees of the organizations having different background and industry they are working in, so this will give us knowledge of the preferences of the employees of the different nature of the organizations. These results and choices of the employees can then be shared with their organizations so that they would know better how to keep their employees motivated. The purpose of the research is also to primarily review the different theories and suggestions in regards of relationship between monetary incentives of all types (cash rewards, salary increments, & bonuses) and achieving higher level of output and productivity in the Emirate of Dubai, as there is no specific research conducted in regards to the employees of this city. Based on our research we will develop a theory to link if monetary incentives of all types will have a direct or indirect effect on employees of different levels within organizations in Dubai. The research delivers vital understandings of the monetary incentive methods that would be essential for decision makers to create the right strategy for a highly motivated and productive employee (Sprinkle, 2002). 1.3 Research Question and Hypothesis The research question that is answered in this research is: How important is monetary benefits such as (case rewards, salary increments and bonuses) to increase employee motivating?
  • 5. Based on the above research question and study purpose, the following Null and Alternative hypothesis are developed: H0: Monetary benefits make the employees more motivated than appreciation and recreational activities. H1: Recreational activities and appreciation culture is more important for the employee’s motivation than the monetary benefits. 1.4 Importance of the Study Importance of this research is the understanding it would give that what are the needs of employees and also that what are the main things that motivate the employee to work more efficiently. The monetary motivation that is to be provided to the employees is what result further in eth growth of the company and this is what is to be studied with the help of this research. It is very important that in the era of great competition the employees are valued and taken care of because this is what would be the result in the growth of the company. It is very important that for the successful completion of the ongoing projects employees have a calm and well-settled mind so as to give the right amount of productivity to the organization. The results of the study would also help in forming the framework that would be formed to understand the effects of the incentives of people from different backgrounds and also from different organizations. The diversity that would be captured from the different angles is what will help understand that what is best for the Emirate of Dubai in this regard. This study is going to help the organizations to pin point one of the important things that if employees are given their due respect and they are awarded with the monetary incentives then the changes produced in the organization will be positive and fast forward to the success. Employees or staff of any company is the vital part because as a team the company or organization can thrive. So as to grow the organization it is important that the employees are given regard and also taken care of.
  • 6. 1.5 Study’s Assumptions and Applicable Limitations 1.5.1 Assumptions During the research work the assumption made is that the organizations are looking forward to shape themselves to provide the employees with the incentives. These incentives are going to be monetary. The people from different backgrounds and organizations are to be researched on in order to get the detailed information that how the providing of monetary benefits such as cash rewards, salary increments and bonus etc. are going to affect the overall organizations. The method of collection of the information is with the help of the questionnaire that is distributed. In the current research another assumption made is that the providing of such monetary benefits will further result in gaining the employee loyalty and the hard work for the benefit of the organization. Growing of the personal skills by the employee is also a very common practice and it needs to be researched on. It has been noticed that despite the monetary benefits the employees leaves the company and join the rival company and it is also noticed that despite of benefits and incentives from rival companies the employees stay loyal to their current companies. There are different aspects that will be studied during this research. 1.5.2 Limitations The limitations that are found during the research are that the research cannot be done on the larger scale in Emirate of Dubai. It was not possible to form the focus groups etc. so only way to collect the information and get the opinion of people and employees from different organizations is the use of questionnaire.
  • 7. 2 LITERATURE REVIEW Inspiration is the key to drive the person in achieving his/her goal. It can be regarded as a mean or an instrument that bring about the idea and urge to proceed further in the life (Baptiste, 2008). It is the impulse that makes a person to accomplish an objective in the life. This practice has helped to bring many known people in the spotlight. The longing for achieving something different and better than the ones that have been already accomplished by many is termed as inspiration. Robbins has characterized the representative inspiration as: "the readiness to apply abnormal amounts of exertion toward hierarchical objectives, adapted by the exertion's capacity to fulfill some individual need." The same has been referred in Ramlall (2004). When it comes to workplace inspiration is the need of the organization that further pushes the staff and managers to achieve the success of the organization. In this study inspiration is used to help the different clusters of the organizations to come together and understand the authoritative relationship in order to gain the common objective that is company’s uplift (Dobre, 2013). Inspiring of the workers is a very well-versed topic as it has produced a very positive result; however, many organizations are still known to ignore it (Geraghty, 2013). This topic has been confined by the different methodologies and hypotheses and has not been very much implied in its true colors. For the current research the inspiration hypotheses that are studied are divided into four further classes that are worker inspiration that is speculated and profiled with the motivation by the scholars Maslow (1943) and McClelland (1961). Representative inspiration is the one that is explained by hypotheses of Adams (1963) that is based on the earlier work by another scholar Festinger (1957). The worker inspiration anticipation hypothesis is put forward by Vroom (1964); it is finished onto McGregor (1960) (Johnson, 2007; Ballentine et al., 2012). Every employee when employed is bound in the contract with the organization and they join the company with some particular vision of the future. Every worker has a motivation to do their best in their field and also it is a moral right of every employee to be treated on the equality basis at a workplace. The idea behind the equality is that every employee is putting their effort towards the same association and they deserve to be dealt equally in all regards. The article titled "Why Your Employees Are Losing Motivation" by Harvard Management update has put forth a point
  • 8. to ponder upon for the employers and that is the need of workers or employees. The employees seek value, sense of accomplishment and also kinship. This is how the employees can be motivated towards the organizational benefit (Amabile et al., 2008). Along with the employees the representatives are also supposed to be dealt reasonable and they are to be appreciated on the merit basis. It has been known that workers always want that they are encouraged and celebrated for the achievements that are made possible due to their hard work and efforts for the company. The authorities are under the moral obligation to praise and also make the employees feel special for the work that has been done by the workers. The study shows that every employee is always in the need of association with the ones they work with (Burton, 2012; Fairbank & Williams, 2001). For the current research the motivator that is being studied is the money. Monetary incentives are considered to bring the high scale productivity for the organizations (Belcher, 2016; Agrawal, 2010). The previous research that has been done in this regard has 1,658 individual employees. With the monetary incentives 1500 of the total that makes 89% revealed a positive change. The different forms of monetary incentives have been made use of such as commission pay, gift certificate of cash rewards. In this research the details have been provided about monetary incentive being not a very good way to motivate people. It has also shown that monetary incentives are more effective for the lower level of employees and not much effective for the top management which is the bigger drawback because the whole team should be able to work with the same enthusiasm that drives the company towards the success. It is however, very effective on the employees who have not been performing very well before (Fairbank & Williams, 2001). Another study in the same regard discusses reward system in public and private sectors (Durst, 2014; Durst, 2014). The research was conducted in terms of pay, benefits other than basic pay and also the psychological values. In this research it has been pin pointed that level of satisfaction that is in private sectors is not the same as in public sectors. Extrinsic rewards such as pay raise, bonuses or other benefits are considered to be the most practical rewards that are given to the employees and not just in the preset era but also in the old days they were considered to be the motivational tools for encouraging employee to actually play his role for the organization to reach to the heights of success (Thomas, 2009; Bonner, 2002).
  • 9. The literature review has shown that inspiration and motivation are the most important things for the organization to thrive. Motivation of the workers is crucial for the organization. And in this regard the monetary incentive that is used as the motivation tool is not a new way to motivate people but an old way to push people to work towards the success of the company and their own financial growth too.
  • 10. 3 METHODOLOGY 3.1 Research Method Research method helps in answering the research question by providing a clear path of executing the research so that research aim can be accomplished successfully. Research method can be of three types i.e. qualitative, quantitative and mixed research method (Creswell, 2013). Qualitative research is the place the examination discoveries are not touched base at by measurable or other quantitative methodology. Quantitative research is the place the examination discoveries result from numerical demonstrating and factual estimation or measurable derivation (Zikmund, 2010). This research has adopted quantitative research design to answer the research questions. The quantitative aspect is covered in the research are related to the statistical outcomes obtained from the survey. This helped in gathering, measuring, and converting survey data into numeric form using the statistical measures to recognize the relationship between the study's variables (Andrew et al., 2011). Thus, the adopted method helped in assessing the research aim and problem efficiently. 3.2 Data Collection There are different tools and approaches that can be used to conduct the data for the quantitative study. On the selected topic of employee motivation and monetary benefits, several tools such as Focus groups, polls, surveys, questionnaire, and interviews can be considered (Andrew et al., 2011). However, in this research, the primary data is conducted by using the survey approach. The survey has been conducted with the employees working in different organizations in Dubai. The employees have been surveyed through a questionnaire, which was used as an instrument. The questions of the questionnaire were mostly centered on the preferences of the employees, things that keep them motivated and how do they want their workplace environment to be. 3.3 Sampling Target respondents include the managers and executives from different sectors with different roles and job requirements. In this way, the research obtained better data to interpret the
  • 11. diversified employees’ behaviors, wants and requirements in terms of monetary benefits and how they can become motivated and loyal with the company. There will be a sample of 50 respondents from these employees target segment to make the survey response collected. The number of 50 is chosen because of the time and resource limitations as well as the results might get repetitive after the 50 respondents as has been studies from the literature too. Based on the respondents’ data we will be able to make the analysis and find out whether the monetary benefits really matter in motivating the employees or it is just a normal reward which have no impact on their motivation. 3.4 Variables of the Study Dependent variable is employees’ performance level and motivational level. To get data on these two variables we will keep questions in our questionnaire in order to measure the two dependent variables. It will be denoted by ‘Y’. Independent variables include the monetary benefits such as cash prizes, bonuses and increments and other kind of non-monetary rewards that these employees get. It will be denoted by ‘X’. 3.5 Data Analysis The data has been analyzed by using statistical analysis in which an econometric model was developed and tested through regression techniques with the help of statistical software SPSS. The regression model is shown below: Y= a+bX1 + cX2 + dX3 + Δ Along with the developed model, the study also presents the descriptive statistics of the data by computing mean, median, mode standard deviation, frequencies and other relevant statistical measures, which are presented by using relevant tables and charts.
  • 12. 4 DATA ANALYSIS AND DISCUSSION 4.1 Findings and Discussion 4.1.1 Demographic Results Gender Age Job Salary Mean 1.33 2.67 2.78 4.20 Median 1.00 3.00 3.00 4.00 Mode 1 3 2 4a Std. Deviation .475 .914 1.303 1.338 Variance .226 .836 1.698 1.790
  • 13. 4.1.2 Employees Performance and Motivation Q5 Q6 Q7 Q8 Q9 Mean 4.13 3.70 3.75 3.92 3.58 Median 5.00 4.00 4.00 4.00 4.00 Mode 5 4 5 4 5 Std. Deviation 1.142 1.319 1.310 1.225 1.441 Variance 1.304 1.739 1.716 1.501 2.078
  • 14. 4.1.3 Monetary Benefits Q14 Q15 Q16 Q17 Mean 3.85 3.53 3.72 4.47 Median 4.00 4.00 4.00 5.00 Mode 5 4a 5 5 Std. Deviation 1.351 1.321 1.303 1.127 Variance 1.825 1.745 1.698 1.270
  • 15. 4.1.4 Non-Monetary Benefits Q10 Q11 Q12 Q13 Mean 2.22 2.53 2.35 1.53 Median 2.00 2.00 2.00 1.00 Mode 1 2 1 1 Std. Deviation 1.391 1.346 1.338 1.127 Variance 1.935 1.812 1.791 1.270
  • 16. 4.1.5 Suggestions and Opinions Q18 Q19 Q20 Mean 1.73 1.62 1.75 Median 1.00 1.00 1.50 Mode 1 1 1 Std. Deviation 1.087 .922 1.035 Variance 1.182 .851 1.072
  • 17. 4.2 Hypothesis Testing and Discussion The linear regression has been conducted using SPSS to test the developed hypothesis and to statistically support the rejection or acceptance of the hypothesis. The results acquired from the regression in context of the dependent variable (Employees Performance and Motivation) and independent variables (Monetary Benefits and Non Monetary Benefits) are presented below: 4.2.1 Relationship between Monetary Benefits and Employees Performance and Motivation Null Hypothesis: H0: Monetary benefits make the employees more motivated than appreciation and recreational activities.
  • 18. Variables Entered/Removeda Model Variables Entered Variables Removed Method 1 Q17, Q14, Q16, Q15b . Enter a. DependentVariable:Em.P_Aver b. All requested variables entered. Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .508a .258 .204 .699 a. Predictors:(Constant),Q17, Q14, Q16, Q15 ANOVAa Model Sum of Squares df Mean Square F Sig. 1 Regression 9.341 4 2.335 4.785 .002b Residual 26.842 55 .488 Total 36.183 59 a. DependentVariable:Em.P_Aver b. Predictors:(Constant),Q17, Q14, Q16, Q15 Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 3.791 .551 6.883 .000 Q14 .006 .069 .010 .086 .932 Q15 .283 .072 .477 3.924 .000 Q16 -.106 .071 -.176 -1.492 .141 Q17 -.143 .082 -.205 -1.740 .087 a. DependentVariable:Em.P_Aver To test the alternative hypothesis, all elements of independent variable (Monetary Rewards) have been entered for the regression analysis to determine their relationship with the performance and motivation of employees. In SPSS, the model has accepted all the elements of independent variable, Q14 (High Scale Productivity), Q15 (Mind Change), Q16 (Various Cash Rewards) and Q17 (Lower and Top Level Employees).
  • 19. Model Summary illustrates the explanation of overall relationship between the independent and dependent variables. It is suggested that the components in Monetary Benefit as an independent variable (High Scale Productivity, Mind Change, Various Cash Rewards, and Lower and Top Level Employees) and the dependent variable (Employees Performance and Motivation) have strong and positive relationship because it shows the R as 0.508 or 50.8%. In addition, R2 value examines the variance's proportion in dependent variable explained by independent variables. However, in the same summary table, R2 value is 0.258, which means that Employees Performance and Motivation explains 25.8% of the variability of Monetary Benefit. Furthermore, Adjusted R2, which is an estimate of effect size, indicated as 0.204 or 20.4% that is the impacts of independent variables on dependent variable. In addition to the above, ANOVA table contained P-value, Residual value, F-value, and significant level of F-value that helps in either accepting or rejecting the hypothesis. The residual value determines the variation between the exact value and the forecasted value of 'Y'. The table has shown the value of unexplained variances as 26.842 out of the total 36.183. Conversely, P- value explains the possibility; therefore, it should be less than 0.05 to accept the null hypothesis. Thus, in this case, P-value is less than 0.05, which means that null hypothesis is accepted and the model is statistically significant. Hence, it can be said that 'monetary benefits make the employees more motivated than appreciation and recreational activities'. 4.2.2 Relationship between Non-Monetary Benefits and Employees Performance and Motivation Alternative Hypothesis H1: Recreational activities and appreciation culture is more important for the employee’s motivation than the monetary benefits. Variables Entered/Removeda Model Variables Entered Variables Removed Method 1 Q13, Q10, Q11, Q12b . Enter a. DependentVariable:Em.P_Aver b. All requested variables entered.
  • 20. Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .255a .065 -.003 .784 a. Predictors:(Constant),Q13, Q10, Q11, Q12 ANOVAa Model Sum of Squares df Mean Square F Sig. 1 Regression 2.354 4 .588 .957 .467b Residual 33.829 55 .615 Total 36.183 59 a. DependentVariable:Em.P_Aver b. Predictors:(Constant),Q13, Q10, Q11, Q12 Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 3.643 .263 13.834 .000 Q10 .109 .082 .194 1.342 .185 Q11 -.015 .086 -.027 -.180 .858 Q12 .104 .098 .178 1.066 .291 Q13 -.201 .123 -.289 -1.633 .108 a. DependentVariable:Em.P_Aver To test the hypothesis, all elements of independent variable (Non-Monetary Rewards) have been entered for the regression analysis to determine their relationship with the performance and motivation of employees. In SPSS, the model has accepted all the elements of independent variable, Q10 (Kinship), Q11 (Appreciation), Q12 (Prefer Non-monetary Rewards) and Q13 (Positive Employees Performance) Model Summary illustrates the explanation of overall relationship between the independent and dependent variables. It is suggested that the components in Non-Monetary Benefit as an independent variable (High Scale Productivity, Mind Change, Various Cash Rewards, and Lower and Top Level Employees) and the dependent variable (Employees Performance and Motivation) have weak and positive relationship because it shows the R as 0.255 or 25.5%. In addition, R2 value examines the variance's proportion in dependent variable explained by independent
  • 21. variables. However, in the same summary table, R2 value is 0.065, which means that Employees Performance and Motivation explains only 6.5% of the variability of Non-Monetary Benefit. Furthermore, Adjusted R2, which is an estimate of effect size, indicated as -0.003 or -0.3% that is the impacts of independent variables on dependent variable. In addition to the above, ANOVA table contained P-value, Residual value, F-value, and significant level of F-value that helps in either accepting or rejecting the hypothesis. The residual value determines the variation between the exact value and the forecasted value of 'Y'. The table has shown the value of unexplained variances as 33.829 out of the total 36.183. Conversely, P- value explains the possibility; therefore, it should be less than 0.05 to accept the hypothesis. Thus, in this case, P-value is greater than 0.05 that is 0.467, which means that the hypothesis is rejected and the model is not statistically significant. Hence, it can be said that 'recreational activities and appreciation culture is more important for the employee’s motivation than the monetary benefits'.
  • 22. 5 CONCLUSION AND RECOMMENDATIONS 5.1 Conclusion of the Study By concluding the study findings, it has been depicted that reward system is widely connected with the concept of motivation that deals with the employees' performance at workplace to fulfill their job responsibilities. The positive or negative performance of employees is widely depends on the support of the organizations in which they are working as well as its motivational strategies. It has been concluded that the positive employees performance can be achieved by giving both monetary and non-monetary rewards that helps in retaining employees for long-term as well as have impacts on both employees and organization (Herzberg et al., 2011). Concerning to the importance of employees motivation and reward system, the study under consideration has been conducted with the aim to explore the role of both monetary and non- monetary rewards in employees' motivation and retaining them productive for the overall success of the organization. The study has been identified significant in terms of understanding the role of monetary and non-monetary rewards in retaining the employees and enhancing their motivation at organizational level (Singh, 2006). It has been further concluded with that the motivation of employees influence their performance at workforce. In literature, several researchers have identified with different factors of motivation, which can be categorized as monetary and non-monetary factors. Among those, monetary rewards may include commission pay, gift certificate of cash rewards, and bonuses while non-monetary benefits include kinship, compensation, appreciation and job security (Vroom et al., 2005; Belcher, 2016). Thus, it has been claimed that any of these monetary or non-monetary factor motivates or de-motivates the employees, if it meets or exceeds with the desire and need of the employees, which ultimately become the reason of success or failure of certain organization. Moreover, it has been concluded that rewards can be of two types monetary and non-monetary. It has been depicted that with organizational and employees perspectives, both kind of rewards are important for an employee to make them productive for the organization and achieve maximum benefits from them for the future growth and development of an organization, but the findings of
  • 23. the study has been depicted that the monetary rewards benefits more to the employees as they become more motivated than the appreciation and recreational activities (Gabris & Ihrke, 2001; Thomas, 2009). Besides, the survey findings revealed that the employees want their organization to provide more monetary benefits to the employees so that they become more motivated and show more positive performance at workplace which will ultimately contribute to the growth of the firm. Based on the findings, it has been recommended that the organizations should define the parameters for performance measurements prior to deciding the forms of rewards to offer and should adopt standardized methods in the measurement of performance so that employees can be rewarded fairly (Baptiste, 2008). Moreover, the organizations must ensure that the rewards are contingent on performance. Specifically, the organization should vary their rewards appropriately according to the performance of the employees and communicate the reasons for the variances. Essentially, informing the employees about the reasons for the variances motivates lowly performing employees to attain higher performance. Nonetheless, the strategy can also lead employees to quit. Therefore, the strategy aims at identifying the most suitable workforce based on performance (Agrawal, 2010). Finally, it is recommended that organizations should emphasize on the importance of both monetary and non-monetary rewards. Monetary and non-monetary rewards serve different purposes in motivating employees and ensuring retention of key talent. Organizations should not limit the non-monetary rewards to non-economic forms of rewards such as recognition. Essentially, they should consider following the recognition of an achievement with a monetary reward (Armstrong, 2007). Consequently, this would increase voluntary participation among the employees and increase the chances of the employees committing to the organization.
  • 24. REFERENCE 1) Agrawal, S., 2010. Motivation and Executive Compensation. The IUP Journal of CorporateGovernance, 9(1-2), pp.27-46. 2) Amabile, T.M., Hill, K.G., Hennessey, B.A. & Tighe, E.M., 2008. The Work Preferences Inventory: Assessing intrinsic and extrinsic motivational orientations. Journal of Personal and Social Psychology, 66(5), pp.950-67. 3) Andrew, D.P.S., Pederson, P.M. & McEvoy, C.D., 2011. Research Methods and Design in Sport Management. Human Kinetics. 4) Armstrong, M., 2007. Employee Reward Managemend and Practice. Kogan Page. 5) Ballentine, A., McKenzie, N., Wysocki, A. & Kepner, K., 2012. The Role of Monetary and Non-Monetary Incentives in the Workplace as Influenced by Career Stage. University of Florida. 6) Baptiste, N., 2008. Tightening the link between employee wellbeing at work and performance: A new dimension for HRM. Management Decision, 46(2), pp.284-309. 7) Belcher, L.M., 2016. The Advantages of Using Money to Motivate Employees. [Online] Available at: http://smallbusiness.chron.com/advantages-using-money-motivate- employees-22056.html [Accessed 2 May 2016]. 8) Bonner, S.E., 2002. The effects of monetary incentives on effort and task performance: theories, evidence, and a framework for research. [Online] Available at: http://www.sciencedirect.com.ezproxy.masdar.ac.ae/science/article/pii/S0361368201000 526?np=y. 9) Burton, K., 2012. A Study of Motivation: How to Get Your Employees Moving. Indiana University. 10) Creswell, J.W., 2013. Research design: Qualitative, quantitative, and mixed methods approaches. New York: Sage publications. 11) Dobre, O.-I., 2013. Employee motivation and organizational performance. The Bucharest University of economic Studies. 12) Durst, V.S.D.&.S.L., 2014. Comparing Job Satisafaction among public- and private Sector Employees. [Online] Available at: http://arp.sagepub.com/content/26/3/327.short [Accessed 3 May 2016].
  • 25. 13) Fairbank, J.F. & Williams, S.D., 2001. Motivating Creativity and Enhancing Innovation through Employee Suggestion System Technology. Creativity and Innovation Management, 10(2), pp.68-74. 14) Gabris, G.T. & Ihrke, D.M., 2001. Does Performance Appraisal Contribute to Heightened Levels of Employee Burnout? The Results of One Study. Public Personnel Management, 30(2), pp.157-72. 15) Geraghty, S., 2013. 20 Ways to Increase Employee Motivation Using Rewards. [Online] Available at: https://www.talkdesk.com/blog/20-ways-to-increase-employee-motivation- using-rewards [Accessed 3 May 2016]. 16) Herzberg, F., Mausner, B. & Snyderman, B.B., 2011. The Motivation to Work. New Jersey: Transaction Publishers. 17) Hong, J.-C., 2006. Impact of employee beneïŹts on work motivation and productivity. [Online] Available at: http://www.emeraldinsight.com/doi/pdfplus/10.1108/09556219510098064. 18) Johnson, C.R., 2007. EMPLOYEE MOTIVATION: A COMPARISON OF TIPPED AND NON-TIPPED HOURLY RESTAURANT EMPLOYEES. B.M. Rider University. 19) Singh, H., 2006. DO REWARDS MOTIVATE EMPLOYEES? 13 November. 20) Sprinkle, G.E., 2002. Accounting, Organizations and Society. [Online] Available at: http://www.sciencedirect.com.ezproxy.masdar.ac.ae/science/article/pii/S0361368201000 526?np=y. 21) Thomas, K., 2009. The Four Intrinsic Rewards that Drive Employee Engagement. [Online] Available at: http://iveybusinessjournal.com/publication/the-four-intrinsic- rewards-that-drive-employee-engagement/ [Accessed 3 May 2016]. 22) Vroom, V.I.C.T.O.R., Porter, L.Y.M.A.N. & Lawler, E., 2005. Expectancy theories. Organizational behavior, 1, pp.94-113. 23) Zikmund, W.G., 2010. Business research methods. South-Western Cengage Learning.
  • 26. Appendix A - Survey Questionnaire Survey Questions Responses Q1: What is you Gender? a) Male 40 b) Female 20 Total 60 Q2: What is your age? a) 18-25 years 6 b) 26-30 years 20 c) 30-35 years 22 d) +35 years 12 Total 60 Q3: What is Your Job Nature? a) Private firm 12 b) Self-employed; 16 c) Business owner 11 d) Government Employee 15 e) ) Other 6 Total 60 Q4: What is your salary or pocket money? (in AED) a) 500-1000 2 b)1000-2000 5 c) 2000-3000 10 d) 3000-4000 16 e) 4000-5000 16 f) +5000 11 Total 60 Employees Performance and Motivation Q5: I am satisfied with my salary as it works as motivational factor for me a) Strongly Agree 2 b) Agree 6 c) Neither agree nor disagree 5 d) Disagree 16 e) Strongly disagree 31 Total 60
  • 27. Q6: The rewards offered by my organization are satisfactory to improve my performance a) Strongly Agree 6 b) Agree 8 c) Neither agree nor disagree 3 d) Disagree 24 e) Strongly disagree 19 Total 60 Q7: I am satisfied with the responsiveness of my organization toward motivating employees via monetary and non-monetary rewards a) Strongly Agree 7 b) Agree 3 c) Neither agree nor disagree 9 d) Disagree 20 e) Strongly disagree 21 Total 60 Q8: My Company achiving high level of performance of employees due to the use of effective motivational strategies a) Strongly Agree 5 b) Agree 5 c) Neither agree nor disagree 2 d) Disagree 26 e) Strongly disagree 22 Total 60 Q9: The performance of employees could be affected if company focus less on the motivation of the employees a) Strongly Agree 9 b) Agree 6 c) Neither agree nor disagree 7 d) Disagree 17 e) Strongly disagree 21 Total 60 Non-Monetary Benefits Q10: Kinship motivates me to perform better as compare to monetary rewards a) Strongly Agree 26
  • 28. b) Agree 14 c) Neither agree nor disagree 8 d) Disagree 5 e) Strongly disagree 7 Total 60 Q11: I become motivated when my company appreciate me on my performance a) Strongly Agree 16 b) Agree 17 c) Neither agree nor disagree 15 d) Disagree 3 e) Strongly disagree 9 Total 60 Q12: As compare to Monetary Rewards, I prefer to have non-monetary rewards a) Strongly Agree 22 b) Agree 13 c) Neither agree nor disagree 13 d) Disagree 6 e) Strongly disagree 6 Total 60 Q13: My company provides non-monetary rewards that ultimately bring the positive change in the employees' performance a) Strongly Agree 45 b) Agree 7 c) Neither agree nor disagree 3 d) Disagree 1 e) Strongly disagree 4 Total 60 Monetary Benefits Q14: I believe that monetary incentives are considered to bring the high scale productivity factor in an organization a) Strongly Agree 6 b) Agree 5 c) Neither agree nor disagree 8 d) Disagree 14 e) Strongly disagree 27
  • 29. Total 60 Q15: My mind could be change if the company do not offers satisfactory monetary rewards a) Strongly Agree 8 b) Agree 3 c) Neither agree nor disagree 15 d) Disagree 17 e) Strongly disagree 17 Total 60 Q16: Commission pay, gift certificate of cash rewards, bonuses are some of the types of monetary rewards that motivates me a lot a) Strongly Agree 5 b) Agree 6 c) Neither agree nor disagree 13 d) Disagree 13 e) Strongly disagree 23 Total 60 Q17: Monetary incentives are more effective for the lower level of employees as compare to top management a) Strongly Agree 4 b) Agree 1 c) Neither agree nor disagree 3 d) Disagree 7 e) Strongly disagree 45 Total 60 Suggestion & Opinions Q18: My company need to focus on improving rewards strategy by incorporating monetary rewards a) Strongly Agree 37 b) Agree 9 c) Neither agree nor disagree 8 d) Disagree 5 e) Strongly disagree 1 Total 60 Q19: My company need to focus on improving rewards strategy by incorporating non-monetary rewards
  • 30. a) Strongly Agree 35 b) Agree 18 c) Neither agree nor disagree 3 d) Disagree 3 e) Strongly disagree 1 Total 60 Q20: The integration of monetary benefits will improve the overall performance of the employees and bring the positive change a) Strongly Agree 30 b) Agree 23 c) Neither agree nor disagree 2 d) Disagree 2 e) Strongly disagree 3 Total 60