Impact of rewards system in employee’s motivation in the organizational context: A quantitative study of manufacturing industry in UAE

Authors

  • Ghazi Rehman Alaf Din Faculty of Business and Management Sciences, Bath Spa University, United Arab Emirates (UAE). https://orcid.org/0000-0003-1557-3744
  • Noor Un Nisa Shahani Faculty of Business and Management Sciences, Bath Spa University, United Arab Emirates (UAE). https://orcid.org/0000-0003-2310-0672
  • Muhammad Nawaz Baloch Department of Management Sciences, University of Sindh, Jamshoro, Laar Campus, Badin, Sindh, Pakistan. https://orcid.org/0000-0003-0936-4188

DOI:

https://doi.org/10.47264/idea.lassij/5.1.8

Keywords:

motivation, intrinsic motivation, extrinsic motivation, job satisfaction, job commitment, Self-Determination Theory , SDT, Maslow’s Hierarchy of Needs

Abstract

This research aims to investigate the effect of reward systems on the extrinsic and intrinsic motivation of the employees working in various manufacturing companies located in the UAE. In this era of competition, motivated employees considered as a valuable assets and motivation play vital role in productivity and enhancement of job commitment and reduce job turnover intention. While, researchers highlight the significance of reward system to intrinsic and extrinsic motivation in various context. However, this area of research is under-theorized particularly within the UAE context in the food and beverage sector. The data was gathered from 100 respondents through a self-administered survey using a 7-point Likert scale. The data was later analyzed using SPSS. A variety of statistical procedures have been carried out to figure out the reliability and validity of the research hypotheses. Based on the results generated through these statistical procedures, key conclusions and inferences have been drawn. In essence, the organization must take an effective measure that is aimed at enhancing the motivation levels of their workforce. Moreover, a motivated workforce will be more committed and dedicated to achieving the organizational goals and objectives.

Metrics

Metrics Loading ...

References

Ahmed, M. (2019). The sophistication of performance measurement system in manufacturing SMEs: The role of the interpersonal ties in top management teams. SSRN. https://dx.doi.org/10.2139/ssrn.3454614 DOI: https://doi.org/10.2139/ssrn.3454614

Ajayi, S. (2019). Motivational drives and employee performance: Evidence from selected universities in Nigeria. SSRN. https://dx.doi.org/10.2139/ssrn.3335829 DOI: https://doi.org/10.2139/ssrn.3335829

Allen, R. S., Takeda, M. B., White, C. S., & Helms, M. M. (2004). Rewards and organizational performance in Japan and the United States: A comparison. Compensation & Benefits Review, 36(1), 7-14. https://dx.doi.org/10.1177/0886368703261401 DOI: https://doi.org/10.1177/0886368703261401

Armstrong, J. S. (Ed.). (2001). Principles of forecasting: A handbook for researchers and practitioners (Vol. 30). Springer Science & Business Media. DOI: https://doi.org/10.1007/978-0-306-47630-3

Arokiasamy, A. R. A., Tat, H. H., & Abdullah, A. (2013). The effects of reward system and motivation on job satisfaction: evidence from the education industry in Malaysia. World Applied Sciences Journal, 24(12), 1597-1604. https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.571.2457&rep=rep1&type=pdf

Asseburg, J., & Homberg, F. (2018). Public service motivation or sector rewards? Two studies on the determinants of sector attraction. Review of Public Personnel Administration, 40(1), 82–111. https://dx.doi.org/10.1177/0734371x18778334 DOI: https://doi.org/10.1177/0734371X18778334

Bear, G. G., Slaughter, J. C., Mantz, L. S., & Farley-Ripple, E. (2017). Rewards, praise, and punitive consequences: Relations with intrinsic and extrinsic motivation. Teaching and Teacher Education, 65, 10-20. https://doi.org/10.1016/j.tate.2017.03.001 DOI: https://doi.org/10.1016/j.tate.2017.03.001

Bintoro, M. T. & Daryanto. (2017). Manajemen penilaian kinerja karyawan. Gava Media.

Chen, C., Anchecta, K., Lee, Y.-D., & Dahlgaard, J. J. (2016). A stepwise ISO-based TQM implementation approach using ISO 9001: 2015. Management and Production Engineering Review, 7(4), 65-75. http://dx.doi.org/10.1515/mper-2016-0037 DOI: https://doi.org/10.1515/mper-2016-0037

Chepkemoi, J. & Bett, S., (2018). Total quality management strategies and performance of institutions of higher learning in Kenya: Case of ISO certified public universities in Nairobi City County, Kenya. International Academic Journal of Human Resource & Business Administration, 3(3), 73-99. https://ir-library.ku.ac.ke/bitstream/handle/123456789/21107/Total%20quality%20management%20strategies%20ISO....pdf?sequence=1

Clarity-Wave. (2019). Why Money is a Bad Motivator and What Works Better. https://www.claritywave.com/money-bad-motivator-works-better/

De-Vito, L., Brown, A., Bannister, B., Cianci, M., & Mujtaba, B. G. (2016). Employee motivation based on the hierarchy of needs, expectancy and the two-factor theories applied with higher education employees. International Journal of Advancement in Management, Economics and Entrepreneurship (IJAMEE), 3(1), 20-32. http://www.ijamee.info/index.php/IJAMEE/article/view/37/35#

Fernet, C., Austin, S., & Vallerand, R. J. (2012). The effects of work motivation on employee exhaustion and commitment: An extension of the JD-R model. Work & Stress, 26(3), 213-229. http://dx.doi.org/10.1080/02678373.2012.713202 DOI: https://doi.org/10.1080/02678373.2012.713202

Frey, B. S., & Jegen, R. (2001). Motivation Crowding Theory. Journal of Economic Surveys, 15(5), 589-611. http://dx.doi.org/10.1111/1467-6419.00150 DOI: https://doi.org/10.1111/1467-6419.00150

Herzberg, F. (1987, September 21). Workers’ needs: The same around the world. Industry Week. https://www.coursehero.com/file/p6jj6lq/Herzberg-F-1987b-Workers-needs-the-same-around-the-world-Industrial-Week-Vol-29/

Hofstede, G. (1980a). Culture’s consequences: International differences in work related values. Sage.

Ismail, A., & Ahmed, S. (2015). Employee perceptions on reward/recognition and motivating factors: A comparison between Malaysia and UAE. American Journal of Economics, 5(2), 200-207. https://ssrn.com/abstract=2615322

Jansen, M. R. & Hlongwane, P., (2019). Employee performance reward and recognition inequity in the Western Cape provincial department of transport and public works. International Conference on Public Administration and Development Alternatives (IPADA), Johannesburg, South Africa. http://ulspace.ul.ac.za/bitstream/handle/10386/2720/jansen_employee_2019.pdf?isAllowed=y&sequence=1

Jaskiewicz, A., & Nowak, A. S. (2019). Constrained markov decision processes with expected total reward criteria. SIAM Journal on Control and Optimization, 57(5), 3118-3136. http://dx.doi.org/10.1137/19m1254829 DOI: https://doi.org/10.1137/19M1254829

Kalhoro, M., Jhatial, A. A., & Khokhar, S. (2017). Investigating the influence of extrinsic and intrinsic motivation on work performance: Study of bank officers. Global Management Journal for Academic & Corporate Studies (GMJACS), 7(1), 121-129. https://gmjacs.bahria.edu.pk/index.php/ojs/article/view/26

Kaplan, S. L. (2017). Business strategy, people strategy and total rewards. Benefits & Compensation Digest, 44(9), 12-19. http://www.staceykaplan.com/pdf/Stacey_Kaplan_Total_Rewards_And_Business_Strategy.pdf

Karell, E. & Widlund, L. (2019). Rewarding work or working for reward? A qualitative case study about total rewards and work motivation among white-collar workers in Sweden. Master Thesis, University of Gothenburg. https://gupea.ub.gu.se/bitstream/2077/62505/1/gupea_2077_62505_1.pdf

Kubota. (2019). Kubota report 2019. https://www.kubota.com/report/pdf/report2019.pdf

Kokubun, K. (2018). Education, organizational commitment, and rewards within Japanese manufacturing companies in China. Employee Relations, 40(3), 458-485. http://dx.doi.org/10.1108/er-12-2016-0246 DOI: https://doi.org/10.1108/ER-12-2016-0246

Kuvaas, B., Buch, R., Weibel, A., Dysvik, A., & Nerstad, C. G. L. (2017). Do intrinsic and extrinsic motivation relate differently to employee outcomes? Journal of Economic Psychology, 61, 244-258. https://doi.org/10.1016/j.joep.2017.05.004 DOI: https://doi.org/10.1016/j.joep.2017.05.004

Malik, M. A. R., Choi, J. N., & Butt, A. N. (2019). Distinct effects of intrinsic motivation and extrinsic rewards on radical and incremental creativity: The moderating role of goal orientations. Journal of Organizational Behavior, 40(9-10), 1013-1026. https://doi.org/10.1002/job.2403 DOI: https://doi.org/10.1002/job.2403

Mantere, S. (2007). Role Expectations and Middle Manager Strategic Agency. Journal of Management Studies, 45(2), 294-316. https://doi.org/10.1111/j.1467-6486.2007.00744.x DOI: https://doi.org/10.1111/j.1467-6486.2007.00744.x

Nawaz, M., Makhdoom, T. R., & Baloch, N. (2017). Antecedent of student citizenship behaviours (SCB) within Pakistani higher educational context. European Journal of Business and Social Sciences, 6(1), 165-175. https://scholar.google.com/scholar?cluster=13869784295927371306&hl=en&as_sdt=0,5

Nelson, B. (1994). 1001 ways to reward employees. Workman Publishing.

Newman, A., & Sheikh, A. Z. (2012). Organizational rewards and employee commitment: a Chinese study. Journal of Managerial Psychology, 27(1), 71-89. https://doi.org/10.1108/02683941211193866 DOI: https://doi.org/10.1108/02683941211193866

Ngwa, W. T., Adeleke, B. S., Agbaeze, E. K., Ghasi, N. C., & Imhanrenialena, B. O., (2019). Effect of reward system on employee performance among selected manufacturing firms in the Litoral region of Cameroon. Academy of Strategic Management Journal, 18(3), 1-16. https://search.proquest.com/openview/ca48ee7175f706294cd9f71dd8298f78/1?pq-origsite=gscholar&cbl=38745

O’Driscoll, M. P., & Randall, D. M. (1999). Perceived organisational support, satisfaction with rewards, and employee job involvement and organisational commitment. Applied Psychology, 48(2), 197-209. https://doi.org/10.1111/j.1464-0597.1999.tb00058.x DOI: https://doi.org/10.1111/j.1464-0597.1999.tb00058.x

Okello, G.A. (2018). Influence of reward philosophy on the growth of micro and small furniture manufacturing enterprises in Kenya. International Academic Journal of Human Resource and Business Administration, 3(3), 333-355. http://iajournals.org/articles/iajhrba_v3_i3_333_355.pdf

O'Reilly, C. A. (1991). Organizational behaviour: Where we've been, where we're going. Annual Review of Psychology, 42(1), 427-458. https://www.annualreviews.org/doi/abs/10.1146/annurev.ps.42.020191.002235 DOI: https://doi.org/10.1146/annurev.ps.42.020191.002235

Pink, D. H. (2011). Drive: The surprising truth about what motivates us. Penguin.

Raghavendra, A. N. & Vijayakumar, G. (2020). Winning employees for work motivation through effective reward management. Studies in Indian Place Names, 40(18), 60-71.

Roscoe, J. T. (1975). Fundamental research statistics for the behavioural sciences. Holt, Rinehart and Winsto.

Ryan, R. M., & Deci, E. L. (2020). Intrinsic and extrinsic motivation from a self-determination theory perspective: Definitions, theory, practices, and future directions. Contemporary Educational Psychology, 61, 101860. https://doi.org/10.1016/j.cedpsych.2020.101860 DOI: https://doi.org/10.1016/j.cedpsych.2020.101860

Sajjad, A., Ghazanfar, H. & Ramzan, M. (2013). Impact of motivation on employee turnover in telecom sector of Pakistan. Journal of Business Studies Quarterly, 5(1), 76-92. https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.653.1358&rep=rep1&type=pdf

Shamir, B. (1991). Meaning, self and motivation in organizations. Organization Studies, 12(3), 405-424. https://doi.org/10.1177/017084069101200304 DOI: https://doi.org/10.1177/017084069101200304

Sharma, S. (2019). Extrinsic rewards, occupational commitment, career entrenchment and career satisfaction of dentists. Asia Pacific Journal of Health Management, 14(1), 1-13. https://doi.org/10.24083/apjhm.v14i1.221 DOI: https://doi.org/10.24083/apjhm.v14i1.221

Sureephong, P., Dahlan, W., Chernbumroong, S., & Tongpaeng, Y. (2020). The effect of non-monetary rewards on employee performance in massive open online courses. International Journal of Emerging Technologies in Learning (IJET), 15(1), 88-102. https://doi.org/10.3991/ijet.v15i01.11470 DOI: https://doi.org/10.3991/ijet.v15i01.11470

Tremblay, M. A., Blanchard, C. M., Taylor, S., Pelletier, L. G., & Villeneuve, M. (2009). Work extrinsic and intrinsic motivation scale: Its value for organizational psychology research. Canadian Journal of Behavioural Science / Revue Canadienne des sciences du comportement, 41(4), 213-226. https://doi.org/10.1037/a0015167 DOI: https://doi.org/10.1037/a0015167

Vouzas, F., & Katsogianni, T. (2018). TQM implementation in 3PL organisations vs organisations with in-house logistics department: A literature review. The TQM Journal, 30(6), 749-763. https://doi.org/10.1108/tqm-10-2017-0115 DOI: https://doi.org/10.1108/TQM-10-2017-0115

Williams, S., & Shiaw, W. T. (1999). Mood and organizational citizenship behaviour: The effects of positive affect on employee organizational citizenship behaviour intentions. The Journal of Psychology, 133(6), 656-668. https://doi.org/10.1080/00223989909599771 DOI: https://doi.org/10.1080/00223989909599771

Wright, B. E. (2007). Public service and motivation: Does mission matter? Public Administration Review, 67(1), 54-64. https://doi.org/10.1111/j.1540-6210.2006.00696.x DOI: https://doi.org/10.1111/j.1540-6210.2006.00696.x

Woolley, K., & Fishbach, A. (2018). It’s about time: Earlier rewards increase intrinsic motivation. Journal of Personality and Social Psychology, 114(6), 877-890. https://doi.org/10.1037/pspa0000116 DOI: https://doi.org/10.1037/pspa0000116

Published

2021-04-19

How to Cite

Din, G. R. A., Shahani, N. U. N., & Baloch, M. N. (2021). Impact of rewards system in employee’s motivation in the organizational context: A quantitative study of manufacturing industry in UAE. Liberal Arts and Social Sciences International Journal (LASSIJ), 5(1), 105–122. https://doi.org/10.47264/idea.lassij/5.1.8