Impact of Reward System on Employee Motivation - 3826 Words

CREATING EFFECTIVE ORGANIZATION (SECTION: 2) â€Å"IMPACT OF REWARD SYSTEM ON EMPLOYEE MOTIVATION† SUBMITTED TO: SIR RAZA NAQVI SUBMITTED BY: (Group#6) Shazia faiz (MM111119) Zainab Hassan (MM111027) Robeela qayyum (MM103070) DATE: 22 JUNE 2011 â€Å"IMPACT OF REWARD SYSTEM ON EMPLOYEE MOTIVATION† Shazia Faiz, Zainab Hassan Robeela Qayyum Abstract The purpose of the study was to investigate and analyze the impact of reward system on employee motivation and how well the current reward system was helping to generate employee motivation. Employees can be motivated on the job by many things such as intrinsic rewards (recognition, autonomy, responsibility, importance) and extrinsic rewards (pay, promotion, bonus,†¦show more content†¦1-Maslows hierarchy of Needs and goal setting theory: Maslows hierarchy of Needs is a theory of personality that identifies five basic need categories: Self-actualization; Personal growth and development /fulfillment Esteem needs: Achievement, status, responsibility, reputation Social needs: Family, affection, work group, relationships Safety needs: Protection, security, law, limits, stability Physiological needs: Air, food, shelter, sex, sleep, warmth The higher-order needs including belonging, esteem, and self-actualization are not seen important until the lower-order needs which are safety and physiological are satisfied. Its higher order needs strongly complement the topic because when basic needs are satisfied, now individual looks for satisfying his social, esteem and self actualization needs. Motivation is a factor that makes him to excel in life. Management should find out what motivates the employees at each of the levels and develop a reward strategy accordingly. 2-Frederick Herzberg Two factor theory: Second theory bring into consideration is by Frederick Herzberg. His contribution to the management of employee motivation is ‘Two factor theory’ which is subcategorized into ‘hygiene factors’ and ‘motivators’. As hygiene factors do not necessarily motivate the employees, however when there is a lack of, or excess of any one of these factors, there is a chance that the employee may be dissatisfied and demotivated.Show MoreRelatedThe Importance Of Employee Motivation And Customer Retention Essay1634 Words   |  7 Pagesquality, customer loyalty, and work efficiency. 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