The main aim of this research work is to investigate the relationship of the two types of rewards namely financial rewards and non-financial rewards towards employee’s motivation. Based on the past literature, it is found that financial rewards or money has become the main motivator for employee’s performance in an organization. Traditionally, little thought has been given to the impact of non-financial rewards as it does not hold any immediate monetary value to the employees. However, in the context of heightened awareness among employers and employees, there has been greater emphasis on non-financial rewards, such as praise and recognition as it holds a deep and greater impact to the employees especially in the long run. This work defines the nature of financial and non-financial rewards on employees motivation. By undertaking a comparison between the financial and non-financial rewards, the outcome of this study provides vital information for organizations to structure a better rewards plan for their employees
TABLE OF CONTENT
Table of content
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research Hypotheses
1.5 Significance of the study
1.6 Scope and limitation of the study
1.7 Definition of terms
1.8 Organization of the study
2.0 LITERATURE REVIEW
3.0 Research methodology
3.1 sources of data collection
3.3 Population of the study
3.4 Sampling and sampling distribution
3.5 Validation of research instrument
3.6 Method of data analysis
DATA PRESENTATION AND ANALYSIS AND INTERPRETATION
4.2 Data analysis
- Background of the study
It is obvious that financial and non-financial motivation of employees in an organization is very essential because it aids the performance evaluation of employees in various department section etc and also assist managers to know why worker behave in certain ways and really motivate them to perform well at work place. Motivating the personnel of an organization to make minimum effort towards the attainment of its objectives has along occupied the mind of managers from the managing directors to the invest ranking supervisors. Managers should be aware of the fact that people of the same organization work for different reasons for example, if a manger looks at a group of workers performing the same job for some time he cannot observe that some workers perform better than others. In explaining this two variables come to mind immediately, one is the difference in degree of skill and ability displayed by individual works, the other variables can be describe as motivation therefore, to guide workers activities in the described direction, it is important for managers to know why workers behave in certain ways and what really motivate them to perform well at work place. The benefits that employee foresee for themselves and their families motivates the employee to give their best. The Rewards are categorized into two group’s financial and non-financial rewards. The financial rewards are also called extrinsic rewards and non-financial rewards are called intrinsic rewards. The financial rewards include pay, bonuses, allowances, insurance, incentives, promotions and job security, whereas the non-financial rewards include appreciation, meeting the new challenges, caring attitude from employer, appreciation and recognition motivates the employee. The healthy working condition which fosters a professional relationship between supervisor and employee fulfills training and development needs of employees and ensures job security motivates employee. Once the pay exceeds a certain level, intrinsic factor become most important motivators. An organization’s reward system is an important tool that can lead to employee motivation. Understanding the impact of both financial and non-financial rewards, based on employee preferences, is crucial for an organization to deliver growth and shareholder value. Lawler (2003) argues that for a reward programme to work, it must be developed with a few limitations. Lawler states that a reward programme must provide necessary rewards to motivate employees; provide employees with a clear view of their roles going into the near future; give employees the authority to influence their performance and deliver on it.
1.2 STATEMENT OF THE PROLEM
Fulfilled and motivated employees incline to be more committed and productive to their organization (Syptak, Marsland, & Ulmer, 2009). To better employee work performance, organizations must attempt to maintain their motivated employees. Munsamy and Venter (2009) argue that in the current world of work, where the competition for talented individuals is prevalent, capable individuals have an extensive choice of employment, in both local and international markets. Stander and Rothmann (2008) argue that it is vital for organizations to adapt to changing circumstances. Human resource management is therefore viewed as a vital source of an organizations competitive advantage. Consequently, the manner in which employees are managed in an organization will gradually define whether an organization will grow or continue to survive (Lawler, 2003). It is essential that organizations adapt to these changes by proposing financial and non-financial rewards unique to today’s workforce. To address this need, this study will explore the impact of financial and non-financial reward programs on employee job motivation by understanding the preferences and insights of employees and organizations
1.3 OBJECTIVE OF THE STUDY
The objectives of the study are;
- To ascertain the impact of financial and non-financial motivation on employee job performance
- To examine the relationship between financial motivation and employees’ performance in organization
- To examine the relationship between non-financial motivation and employees’ performance in organization
1.4 RESEARCH HYPOTHESES
For the successful completion of the study, the following research hypotheses were formulated by the researcher;
H0: financial and nonfinancial motivation has no impact on employee’s job performance
H1: financial and nonfinancial motivation has impact on employees job performance
H02: there is no significant relationship between financial motivation and employees’ performance in organization
H2: there is a significant relationship between financial motivation and employees’ performance in organization
1.5 SIGNIFICANCE OF THE STUDY
This study is considered beneficial to management of the organization by providing information on the factors that affect performance of employees in organization. Secondly, it is hoped to help policy makers in general to assess the performance of management for organizational ability and good management skills. The study will also serve as a reference to other researchers that will embark on this topic
1.6 SCOPE AND LIMITATION OF THE STUDY
The scope of the study covers an investigation on non-financial and financial motivation technique on employees in an organization. The researcher encounters some constrain which limited the scope of the study;
- a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
- b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
- c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities
1.7 DEFINITION OF TERMS
Employee: one employed by another or a company usually for wages and salary and in a position below the executive level
Incentives: encourages a person to do something or to work harder
Motivation: the act or process of giving someone a reason for doing something. The condition of being motivated or being eager to act or work.
Non-financial incentives: some form of material reward especially which is different from money.
Satisfaction: fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this.
Organization: an administrative or functional structure such as a business or company formed for a particular purpose.
Organizational Performance: the actual output or results of an organization as measured against its intended outputs or goals and objectives.
Financial Incentive: Monetary benefit offered to consumers, employees and organizations to encourage behavior or actions which otherwise would not take place. A financial incentive motivates actions which otherwise might not occur without the monetary benefit.
1.8 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows
Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study