A Study of Monetary Rewards as a Motivation Tool

7/25/2019 A Study of Monetary Rewards as a Motivation Tool

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A Study of Non-monetary Rewards as

a Motivation Tool

ByIrfan Iftekhar

Abstract

The study examines the role of reward system in motivating employees for effective

performance and higher productivity in First Bank of Nigeria Plc. It employed a case study

approach to study how rewards management system motivates the employees of First Bank of

Nigeria Plc. The researcher identified incentives, commendation, prie awards, promotion,

compensation, salary increase, !onus, share value safe working conditions, fair treatment,

medical system and involvement in decision making process, are some of the rewards system

used !y First Bank of Nigeria Plc. This paper recognied motivation "intrinsic or extrinsic to

workers# as an instrument for efficient and effective execution of a pro$ect. The paper

examined if workers are highly motivated, the motivational factors that mostly affect workers

performance,


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CHAPTER-1

ntroduction

In todays competitive !usiness environment companies are facing many challenges and

among those challenges ac%uiring right workforce and retaining it, is of utmost importance. In

order to get the efficient and effective result from human resource, employee motivation is

necessary. &mployee will give their maximum when they have a feeling or trust that their

efforts will !e rewarded !y the management. There are many factors that affect employee

performance like working conditions, worker and employer relationship, training and

development opportunities, $o! security, and companys overall policies and procedures for

rewarding employees, etc. The First Bank of Nigeria Plc. "FBN# was incorporate '(st )arch

(*+, as the Bank of British -est frica in /iverpool, 0nited 1ingdom "Fry, (+23#, !y lfred

/ewis 4ones in the office of &lder 5empster 6 7ompany in /agos "FBN 01, 8992#, to serve

his shipping and trading agencies in Nigeria. The !ank was incorporated as a /imited /ia!ility

7ompany, with a head office in /iverpool and !egan operations with an initial paid:up capital

of ;(8,999, after it ac%uired frican Banking 7orporation "FBN 01, 8992#. In (+lokoyo "8999#

o!served that the !anking sector reforms, especially the recapitaliation policy was a deli!erate


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policy response designed to correct perceived or impending !anking sector crises that might

trigger !anking industry failures, which may result directly from insolvency and weak

corporate governance, and others "&rnest, 89(8#. &rnest added that the asset sie of an average

!ank which was N8.(28!illion "0=?9.'(2 !illion# in 899 has grown geometrically to

N832.*8!illion "0=?8.9*


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salaries including promoting employees, and awarding pries and giving !onuses to them.

The post:consolidation reward management system of the First Bank of Nigeria Plc. informed

the desire of the researcher to investigate how the reward management system of the !ank has

motivated its employees to enhance their performance effectiveness, achieve their performance

outcomes and increase their productivity. -hat motivate workers cannot !e generalied

!ecause, what motivate workers differs from one worker to another. In fact what motivates an

individualA worker today, may seie to motivate him tomorrow !ecause human needs are

insatia!le asserted that monetary incentives would make workers carryout their assigned tasks

correctly and meet a defined target rate of output. @is expectancy theory is of the opinion that

workers expectation of reward for the efforts they put in a $o! has turned out to !e part of

motivation for employees in every place of works @awthornes studyesta!lished that

workersproductivity was not reliant only on monetary reward !ut on social needs "need for

safety, recognition, !elonging to informal group, etc.# achieved !y mingling with co:workers,

and supervisors at the place of work also supported )ayos study.

eward systems are vital strategic tools that management of an organisation uses to

direct !ehaviors, attitudes and motivate their employees in desired ways to enhance corporate

performance. m organiations reward system may include incentives, processes, and decision

making a!out the allocation of compensation and !enefits to employees, in order to drive a

positive urge in them to voluntarily and enthusiastically contri!ute their skills and experiences

to the attainment of an organiation

s goals. good reward system ena!les an organiation to

attract the !est talents to $oin its workforce, motivate them to promote productivity and

encourage them to stay for as long as possi!le.

For a !usiness organiation to address employeesexpectations effectively, it must

understand those things that stimulate employee motivation.


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1!& Researc% 'uestions

esearch %uestion is always central to the completion of a successful research study,

hence the following research %uestions will !e explored !y the researcherC

(# @ow do non:monetary rewards act as a motivation tool for improving employeeDs

performanceA

8# @ow do reward systems encourage employees and reduce staff turnoverA

1!( Researc% aims and ob)ectives

5eeprose "(++# argued that the motivation of employees and their productivity can !e

enhanced through providing them effective recognition which ultimately results in improved

performance of organiations. In view of the a!ove, the aims and o!$ectives of this study areC

(# To discuss the role of the reward systems in motivating employees for higher productivity in

the !anking industry.

8# To identify how the reward systems stimulate employees commitment at work.

'# To determine how the reward systems enhance employees $o! satisfaction in the !ank.

# To analye how the reward systems reduce employee turnover in the !anking industry.

1!* Statement of t%e +roblem

ecapitaliation exercise in Nigerian !anking industry during 899:< has tailored the

!anking structure. In view of this, the researcher decided to investigate the role of reward

management systems of First Bank of Nigeria Plc. in motivating its employees for higher

productivity.

1!, Si$nificance of t%e study

This study is important to !ank policy makers, @ professionals, scholars, management

of !anking and other organiations, including line managers involved in the supervision of

other employees, !ecause it will revealC


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(# -hether reward systems enhance employee performance.

8# @ow management can !est use reward systems to motivate employees to accomplish their

performance outcomes.

'# @ow organiation can spur employees to attain higher productivity and organiational

performance targets. esearcher decided to investigate the role of reward management systems

of First Bank of Nigeria Plc. in motivating its employees for higher productivity.

1! .ustification of Researc%

7ompanies and organiations everywhere need employees to work with. @owever,

while getting employees can easily !e done !y means of recruiting practices, there is the more

difficult task of keeping them motivated to work hard to achieve improved performance and to

attain !oth organiational and personal goals.

1!/ Researc% met%odolo$y

esearch methodology is the systematic process adopted !y a researcher to solve a

research pro!lem. In this study the researcher used interpretive approach and %ualitative

research methodology. 0nstructured personal interview was held with more than one hundred

mem!ers of staff who were purposively selected !ased on insight from the personal interview

held with the personnel manager, their educational %ualification and years spent on the $o!. The

interview was held prior to the distri!ution of the %uestionnaire. The result from the interview

increased the in:depth knowledge of the researcher on %uestions to !e included in the

%uestionnaire and how the %uestions would !e framed to the understanding of the respondents

and ena!le ade%uate information from the respondents. Time spent with each respondent

depended on the depth and %uality of information, and patience of each of the respondent.

@owever, the time range was !etween to (9 minutes.


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Research philosophy

esearch philosophy involves the epistemology that a researcher employed in a research study

to produce knowledge or reality !ased on the worldview of the participants. The researcher

used interpretive philosophy so as to maintain the researcher as a passive collector and expert

interpreter of data, while she tries to maintain research o!$ectivity.

Research approaches

There are two popular research approaches commonly used !y scholars and researchersE

Inductive research approach will !e discussed !elow.

Inductive research approach

The inductive approach "Bryman and Burgess, (++# to research study is a form of %ualitative

research method this has helped in conducting analysis, interpretation and formulation of some

themes and patterns.

Qualitative research methodology

)yers "(++2# contends that %ualitative research is one of the two ma$or approaches to

research in social sciences. dditionally, a$asekar, Philominathan and 7hinnatham!i "8993#

state that %ualitative research involves %ualitative phenomenonE In this study, I used %ualitative

research methods for the purpose of understanding the interviewees experiences including the

social contexts in which they live ")yers, (++2#.

1!0 T%e sco+e and limitation of t%e study

ualitative research depends, to a large extent, on the skills of the researcher, whose

personal !iases and idiosyncrasies may affect the study outcomes.

There is the possi!ility that some respondents may not willingly cooperate to supply vital

information.


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CH! 1 Summary

First Bank of Nigeria was incorporated as a /imited /ia!ility 7ompany, with a head

office in /iverpool and !egan operations with an initial paid:up capital of ;(8,999, after it

ac%uired frican Banking 7orporation "FBN 01, 8992#.In (+kafor "899+# the period of !anking recapitaliation in Nigeria from 4uly

899 till the last month of 899


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four scenarios which are important in the relationship !etween employee motivation and

rewards.


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These includeC

@igh hygiene H @igh motivation employees feel motivated and give high

performance.

: @igh hygiene H low motivation no complains !ut not highly motivated.

: /ow hygiene H@igh motivation lot of complains and low motivation

: /ow hygiene H low motivation result in unmotivated


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)anagement is dependent upon rewards like money as the main factor of motivation

!ecause according to )aslows hierarchy of needs, money is a uni%ue reward that can satisfy

different needs such as physiological need for food. Non:monetary rewards on the other hand

attract persons with a high need for affiliation through ver!al recognition, and high achievers

through challenging $o!s. =kinner in (+


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to perform !etter. The only issue that is certain a!out this is that multiplicities of interdependent

factors are involved in motivating employees ranging from money to non:monetary.

&!1 T%eories of motivation

=ome scholars have developed some theories that help to explain the psychological

processes and approaches that underlie motivation. I will discuss few of those theories !elow.

&!1!& Scientific mana$ement t%eory of motivation

Taylor "(+((K'# proposed that workers are motivated mainly !y salary. In his theory of

scientific management, Taylor contended that employees did not naturally en$oy tasks,

therefore, they needed close supervision and control !y their managers. It does not encourage

individual creativity and high productivity as lay workers may hide and take solace under

team work.

&!1!( Neo-%uman relation t%eory of motivation

)aslow "(+'# !egan the neo:human relation theory of motivation in the (+


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)aslowDs hierarchy of needs theory has some weaknesses. The hierarchy of needs theory is not

universal applica!le !ecause human needs may vary across cultures, individual differences and

availa!ility of resources.

&!1!2 Two factor t%eory of motivation

@er!erg et al. For example, an employee will !e motivated to turn up for work if an

employer provides a fair pay and safe working conditions, !ut they will not influence him to

work harder at hisKher $o!.

)otivators are factors whose presence motivates employees to worker harder in order to

increase productivity. lso, increased pay in terms of overtime and piece rates might !e a

motivator for some employees to some extent, and might not !e for others.

&!1!* Needs t%eory of motivation

)c7lellands "(+3(# theory of needs identifies three types of human needs called

achievement, power, and affiliation. )c7lelland argues that the need for power is caused !y the

need to make people !ehave in a particular way that they would not have !ehaved. Because

effective managers must positively make an influence on other also, he asserts that top

managers must seek power coupled with a low need for affiliation "1reitner, (++*#.

&!1!, E'uity t%eory of motivation

dams"(+3


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such as salary increases, recognition and commendation which their colleagues receive. The

resulting tension forms the !asis for motivation as employees are driven !y their desire for

what they perceive as e%uity and fairness.

amlall "899


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performance is not perfect !ecause they are moderated !y employeesskills and knowledge,

including the difficulty of the task. lso, employeesskills and knowledge play an important

role as more skilful and more knowledgea!le employees will find it easier to complete the $o!.

&!1!/ ntrinsic motivation

@ennessey and ma!ile "899


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provide ade%uate compensation for hard work, which may!e demoraliing to some employees,

and can cause them to reduce their productivity. Therefore, good remuneration has !een

identified !y some scholars as one of the policies and organiation can utilie to increase their

workers performance and ultimately increase the productivity of an organisation.

Flynn "(++*# posits that reward and recognition programmes keep high spirits and

enthusiasm among employees, enhance their morale and produce a linkage !etween

performance and motivation. amlall !elieves that rewards enhance the level of productivity

and performance of employees on their $o!s.

In conclusion, the a!ove reviewed literature provided useful conceptual !ackground on how

reward systems can motivate employees to achieve their performance outcomes and

productivity.

&!&!1 ntroduction

Throughout time, many have attempted to develop detailed theories and studies of

motivation. It would !e very difficult to try to pinpoint one theory or even one techni%ue that

seems to work !etter or is more effective for a certain organiation. I hope to make some

$udgment a!out the effectiveness of styles of motivation and satisfaction from ones $o! under

these specific managerial levels.

&!& Motivation

lthough money may not !e the most important consideration in the turnover intent of

some skilled employees, nevertheless, money remains an important factor in turnover

decisions. 1innear and =utherland "899(C (2# argue that skilled employees in =outh frica need

to earn a competitive package and also have the opportunity of earning performance !ased

!onuses. They want their efforts to !e rewarded and to have a fair share of the organisations

success in monetary terms. This argument also reflects the outcome of a research finding !y


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Patron "899C 8(# who found that, although money may no longer !e the most important

motivator among career professionals, nevertheless, it remains a good com!ination in the

retention e%uation. In a similar research conducted !y 7onsumer Insight gency "cited in 7ru,

8993C 8# it was found that the !lack talent in various organisations want to earn enough money

in order to start their own !usinesses and !ecome 7hief &xecutive >fficers "7&>#. In their

effort to retain critical employees, various organisations have shifted their attention to

determining the varia!les that impact most favoura!ly on the retention of core employees. The

Towers Perrin study "cited in @ Focus, 899'C'# shows that varia!les that motivate talented

employees to remain in an

>rganisation, are a mixture of !oth intrinsic and extrinsic factors such as performance:!ased

pay, employee stock ownership, and profit:sharing !onuses.

The First Bank has put into practice many of @er!ergDs DmotivatorsD and shows it too.

=imilarly )aslowDs higher levels of need are less o!vious and less easy to explain !ut of great

importance. =ocial needs are !ut a fact that we wish to feel part of something we share in. The

First Bank creates the opportunity for its community of employees worldwide to share in its

common goals and vision for the group. It is done !y means of rewarding the people who

contri!ute to its success through their commitment and hard work. The next level DesteemD :

refers to our need to feel valued, that what we do matters. The mindset at this !ank is that

employees can Dmake it happenD for themselves and for this there are opportunities for all

employees through promotion or training and then recognises their achievements.

>ne of the most interesting fact a!out the First Nigerian Bank is that the !onus structure

is one of the techni%ues it uses to motivate its employees and has proven to !e extremely

effective, the !ank also a!solutely recognies that there is more than $ust the dollars and cents.

Therefore the !ank as a whole tries to address those more personal or intangi!le techni%ues to


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motivation as well, such as a pla%ue or a gift for winning a contest for num!er of loans.

Individual:!ased rewards to highlight that persons achievements is sometimes all a person will

need. The !ank also offer performance incentive pay which is a motivational tool for the staff

which has successfully helped them achieve goals, &mployees performance is measured along

with the key performance indicator "1PI# and constantly monitored through the performance

monitoring system. =taff are appraised at the end of every %uarter !ased on individual key

performance indicator. =taff that meets *9L to (99L of their performance goals earn the full

payment of the performance incentive pay. This !ank follows motivation theories and turns

those into practice like according to @er!erg meeting hygiene factors would only eliminate

dissatisfaction, !ut would not result in actual motivation. This can !e achieved only !y

fulfilling motivator factors, such as recognition, achievement, the work itself "i.e. meaningful,

interesting, and important work#, responsi!ility, and growth, this is the gist of the motivation

practices used !y this !ank.

&!( Human Resource Mana$ement

5uring the last decade, the personnelK@) field has shifted from a micro focus on

individual @) practices to a de!ate on how @) as a more holistic management approach

may contri!ute to the competitive advantage of the organiations. Three different perspectives

have !een used in recent researches on the relationship !etween @) practices and

performance of the organisation, retention !y the organisation and strategies of the

organiation.

8. ewards

ccording to =alisu "89(8, 8:'# financially packaged incentives and other monetary rewards

are fre%uently used !y Nigerian !anks as motivations for !etter performance. =tating further, he

said the performance of Nigerian !anks could !e linked to the kind of employeesmonetary


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motivation systems implemented in the !anks. =alisu "89(8, 8# however stated that incentives

are intimately related to motivation and are inducements placed along the course of ongoing

relatives that keeps the activities directed towards one goal rather than another. @e posited

further that as the success of !anksperformance hinged on the kind of employees they

possessed, employee motivations produce a well:motivated workforce for higher performance

of the !anks. Ba!aita "89((,+3#,stated that the Nigerian !anks actually take the motivation

issues so seriously to the point that it was stated !riefly in their nnual eports and ccounts

as what they statutorily do for all their employees. @e added that some of the Nigerian !anks

indicate that they provide family medical cover for the work:force, why some state that when

an employee acting within the scope of hisKher employment accidentally in$ures a third party,

Isiaka mentioned that some of the !anks show the efforts of the workers through prompt

promotions, granting of staff loans for cars, houses, share purchase, land purchase loans,

massive in:service training, recognition of dedicated and loyal staff through long:service

awards, and continuously reviewing employeesremuneration package. To that extent, it is

clear and conclusive that the !anking industry in Nigeria takes the use of motivation and

incentives deployment as a very strong weapon to enunciate extra performances from their

employees. t this !ank almost every role can !e descri!ed in terms of specific $o! targets.

Then the performance of the employee is $udged and duly reported, only to !e followed

!y a review of performance when the years ends. For the sake of high performance the

payment for such results are a great motivator. -hen the target is achieved the reward is made

!y means of payments and su!se%uently named a !onus. -hen someone gets a target to gain a

given num!er of new customers or !usiness every year. If she or he achieves this then the

!onus is given. -hile tougher targets entails to a higher !onus !ecause achieving these stretch

targets is difficult.


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&!, T%e value of non-monetary rewards to em+loyees

eward package !y the First Bank, like most other !anks, offer funding of pension

schemes, health insurance, paid holidays. This package additionally offers each employee the

!enefits of a choice of working hours and perks. t the heart of the package lies a highly

competitive salary package with perks which depends on their skills and professional expertise

regardless of any social stigma. Mraded progression remains one of the !est motivators for the

employees of this !ank... The heart of the package is a competitive salary !ased on skills and

experience regardless of any social stigma. >ne of the most important motivators for the

employees is the recognition of good performance !y graded progression...

&!* 4ays em+loyers can motivate em+loyees

very crucial motivator for First Bank employees is good performance recognition and

graded progression where the employee are encouraged to Dmake it happenD through personal

development. The !ank trains and encourages its employees to develop their skills and

competency and their advanced professionalism helps the !ank. It also helps its employees to

give !ack something to the community they live in and hence the !ank tried to !e involved in

the development of the community, this forms a !etter image of the !ank the employee is

there!y motivated !y the whole community to work more sincerely.

&! Ma)or benefits of non-monetary rewards

If any !ank employee who delivers the pro$ect ahead of time and within !udget and the

organisation does due to this well and the individual performs well too, the additional payments

may !e %uite su!stantial. The ma$or !enefits for staff at the First Bank includeC

: For good work employees get recognitionC

: collective sense of success is achieved when the !usiness goes well

: dditional responsi!ility and development is o!tained !y them !y means of doing well


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regularly: -hen people do well in their work, the organisation rewards them.

&!/ Monetary motivation versus non-monetary motivation

There is a strong !acking for money as a motivating factor. But there are research

studies which disagree with money !eing the only key motivator, stating that money only does

not significantly affect employeesD motivation. Non:monetary rewards if used correctly are

e%ually as important. ccording to some studies significant management style, like the one

found in First Bank and also the dialect used !y senior directors and executives are as

important tools in motivating the employees.

&!0 Conclusion

In most organiations workers are motivated through various rewards and incentives

including First Bank, these incentives are tangi!le or monetary, like salary compensation, some

incentives are intangi!le or non:monetary rewards like the sense of success or achievement

"=pector, 899'#. >rganiations like First Bank are improving retention and motivational

concerns and diminish employee turnover through various monetary and non:monetary

rewards. =alary is one of the hygiene factors hence money does not lead to high levels of

motivation !ut impact on motivation in a way. These include, -allace and Jeffane "899(#

noted, management depend upon rewards like money as the main factor of motivation !ecause

according to )aslows hierarchy of needs, money is a uni%ue reward that can satisfy different

needs such as physiological need for food. -allace and Jeffane "899(# noted, management

depend upon rewards like money as the main factor of motivation !ecause according to

)aslows hierarchy of needs, money is a uni%ue reward that can satisfy different needs such as

physiological need for food. )aslows theory was !ased on the psychological needs of the

employees !y proposing hierarchy of five human needs that employees must fulfilled at

workplace. The fourth higher needs are esteem needs "self: esteem, achievement, status,


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dominance, and prestige#, while the fifth highest needs are self: actualiation needs "achieving

personal potential, self:fulfillment, and realising personal growth#.

@owever, )aslowDs definition of self:actualiation is difficult to test scientificallyE the

hierarchy of needs theory is not universal applica!le !ecause human needs may vary across

cultures, individual differences and availa!ility of resources.

Two:factor theory of motivation:@er!erg et al. lso, increased pay in terms of

overtime and piece rates might !e a motivator for some employees to some extent, and might

not !e for others.

Needs theory of motivation:)c7lellands "(+3(# theory of needs identifies three types

of human needs called achievement, power, and affiliation. Because competent managers must

positively make an impact on others, )c7lelland recommends that senior managers should

have a thirst for power coupled with a low need for affiliation "1reitner, (++*#.

&%uity theory of motivation: dams"(+3


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(!&- Researc% Met%od

This study specifically covers three !ranches of First Bank in Nigeria. The choice of

this case study is not unconnected with the fact that this !ank has one of the largest employers

of la!our in the financial industry in Nigeria. total num!er of (


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Then appropriate amendments were made and the %uestionnaire was then released to the

sample population. The purpose of the cross:sectional research is descriptiveE usually it has

no hypothesis, !ut the aim is to descri!e a population or a su!group within the population

with particular focus an outcome or a set of risk factors "/evin, 8993#.

(!&!&- Researc% A++roac%


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-hat motivate workers cannot !e generalied !ecause, what motivate workers differs

from one worker to another. The reason for this is that individual needs, wants, desires,

interests, goals or aspirations differ from one individual to another. The research method used

is primarily %uantitative approach !ut also used %ualitative features. It focuses on num!ers than

words and can !e achieved with the use of %uestionnaires. Twenty "89# %uestions were

carefully drafted a!out incentives as a motivational tool and how it contri!uted to employees

$o! positively or negatively in First Bank. The %ualitative part is included for respondents to

give their opinion outside the fixed option. There are two popular research approaches

commonly used !y scholars and researchersE they are inductive and deductive approaches

"=aunders et al, 899'#. In view of this, I decided to use inductive "%ualitative# approach

"Bryman and Burgess, (++# in this study.

The inductive approach "Bryman and Burgess, (++# to research study is a form of

%ualitative research method. It gives room for research findings to emerge from the fre%uent

and significant themes in the raw data, without the limitations re%uired !y structured

methodologies "Thomas, 899'#. In this study, I applied inductive approach to data collection

and analysis of interview transcriptsE this assisted me in conducting analysis, interpretation and

formulation of some themes and patterns.

(!&!(- Researc% P%iloso+%y

esearch philosophy involves the epistemology that a researcher employed in a

research study to produce knowledge or reality !ased on the worldview of the participants.

There are three types of popular research philosophy commonly used !y social scientists,

including those in !usinessKmanagementE they are positivism, interpretivism and realism

"=aunders et al., 899'#. In this study, I decided to use interpretive philosophy. Interpretive

epistemology is the assumption or !elief that meaning is socially influenced !y culture and


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history and reality is constructed su!$ectively. The researcher used interpretive philosophy so as

to maintain the researcher as a passive collector and expert interpreter of data, while she tries to

maintain research o!$ectivity.

(!(- 5ata sources6 information $at%erin$

The population consist of any middle to senior level officer or professional at the First

Bank who working there and who has experienced a reward programme consisting !oth the

elements, the monetary and the non:monetary of rewards. Galidity is an extent to which the

data are found to !e true. Galidity is one if the o!tained results are truthful and !elieva!le. To

determine the validity, a series of %uestions are posed !y the researcher who often will look for

the answers in the research of others to know whether the measurements are accurate or not.

"0kssays 899': 89('#, elia!ility is the extent to which results are consistent over time and an

accurate representation of the total population under study is referred to as relia!ility, if !y

using another similar methodology the same results are o!tained, then this research instrument

is acknowledged as correct and relia!le, with which an individualDs scores remain relatively the

same. "0kssays 899':89('#. The relia!ility of this study was tested with the use of

%uestionnaire.

(!(!1- 5ata collection6sam+le si7e

!asic decision a!out sampling which has to !e decided is who or what population of

interest is "7a$a 6 Blair, 899


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were asked to ignore the message. (


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due to the fact that the respondents played an effective role in answering the %uestions and the

respondents at the First Bank were given enough time to send the answers at their own comfort

and privacy.

elia!ility is the extent to which the ac%uired results are unfailing over time, the real

representation of the population which is studied, is known as relia!ility. If the study has a

consistency with which an individualDs score remain the same and can !e determined !y the

help of test:retest method at two different times, then it is relia!le "0kssays, 899':89('#. This

studyDs relia!ility was tested with the use of strategically designed %uestionnaire. connection

was then found for the %uestionnaire and result gathered from respondents.

(!2-5ata analysis

espondents were re%uired to give their own opinion a!out rewards in First Bank.

ccording to the findings !y means of data collected, the ma$ority of the $unior and middle

staff consider rewards in the workplace in this !ank as a ma$or motivator which enhances the

morale of the employees and entice them to give their !est in their respective $o! functions.

-hile the senior staff revealed that non:monetary rewards for hard work also increased

productivity.

ewards, however, are taken as an enhancer that enhances employees to work with

even more effort to attain a set target and helps drive performance to attain a difficult task.

)ost of the respondents also suggested that the !ank should attract and retain employees with

!oth monetary and non:monetary rewards.


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No one disagreed that there was a great satisfaction which was o!tained through getting

incentives or rewards.

lthough everyone agreed to getting rewards, whether monetary or non:monetary, !ut

the choice of area where the wanted to avail this award differed.


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The third part of the research is important !ecause it esta!lishes a fact as to whether

non:monetary rewards also !oosts performance. ll the respondents received incentives,

however some respondents partially agreed to this !ut no one disagreed. 29 of the respondents

prefer promotion, 9 respondents choose $o! performance, 89 of the respondents wanted profit

sharing and '9 of the respondents choose others. 39 percent of the respondents choose

monetary reward while 89 percent choose non:monetary rewards saying that it also goes a long

way to support employeesperformance. -hen investigated a!out the relationship !etween

organisational rewards systems and achieving performance targets at work, it was asked to

explain how the reward systems of the !ank motivates the employees to meet their

performance. )ore than +9 percent of the participants agreed that the !anks reward systems

drive employees to meet their performance targets.

(!*- imitation of t%e study!

There are many other factors which may affect the level of employee retention !ut to

time constraint other factors are not taken for research. The sample sie was also limited. In the

study no intervening or moderating varia!les are considered. It is therefore recommended that a

consistent study and assessment of individual workers needs, wants, desire, hierarchical level


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and their performance level should !e carried out in order to know what motivates every

worker at every point in time, whether lower level or management staff, and therefore take

necessary actions to stimulate their efforts towards high standard performances, efficient, and

effective pro$ect execution, timely pro$ect completion, and reward them accordingly. >ur

regression results revealed that an effectively formulated and implemented compensation

strategy has the potential !eneficial effect of enhancing workersproductivity in specific and

the overall organiational productivity in general.

CH-2 :indin$s

ntroduction

The primary aim of this study was aimed at analying whether designing a reward

programme with the $oint focus on !oth monetary and non:monetary rewards will result in

increased employee motivation and organisational !enefits. To address this need, this study

explored the impact of non:monetary and monetary reward programmes on the motivation of

the workers !y means of an administered survey. In this chapter an in:depth analysis as well as

assimilation of results from the finding of the study, is presented. The participantsD responses

gathered from this survey were sufficient to address all the mentioned three research %uestions

laid out in this study. s discussed earlier, the aim of this study was to understand a!out those

factors which act as DmotivatorsD for the employees and also how much these factors contri!ute

to the employeesmotivation. The findings suggest that rewards have a great motivation

potential which go a long way in motivating the employees to an extent where they stretch their

efforts to achieve targets.

5iscussion

-hat are the reward preferences !y employeesA The mean "average# ranking of the

different !enefit categories is shown !elow. The ranking scale was (most importantE 2least


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important. It is clear that financial !enefits rated most highly with employees and these were

also the reward structures rated highly !y organisations. The research is supported !y findings

in the study conducted !y Thum!ran "89(9# and Niena!er "899+#, which indicated the most

important reward category was monthly salaryKguaranteed remuneration. It was the second

place where the ranking of performance recognition came up. s discussed in this chapter,

while some organisational !enefits "retirement !enefits, medical aid# were rated highly !y the

organisations, organisational !enefits as a whole were not rated highly !y employees when

ranking their own reward structure. The same was true for learning opportunities and environs

of work. The study is supported !y findings in the study conducted !y Thum!ran "89(9# and

Niena!er "899+#, which indicated the least important reward category was %uality work

environment.

7areer development and work life !alance appeared to have !een rated more highly !y

employees than the importance attached to these !enefits !y organisations. These results

suggest that organisations could pay more attention to these rewards particularly in =outh

frica. It can !e assumed that given the educational disparity !etween the =outh frican

workforce, and increased focus on the Broad Based Black &conomic &mpowerment, there is an

expectation that these elements are up weighed. There are further opportunities for

organisations to test and survey this finding for future application.

It can further !e assumed that due to the current economic climate and the demographic

nature of the population sample, male dominantE ma$ority of the respondents fell within the

range of '9:'+ years of ageE non:white dominantE it is these factors which have partially

resulted in financial !enefits !eing ranked the highest. It can !e assumed that the ma$ority of

the respondents are in their wealth creationphase in their lives. &conomic and knowledge

creation is what these respondents strive for.


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>rganisations are cost cutting and restructuring with the aim of getting leaner. Fit for

purpose structures are !eing put in place to ensure no $o! duplication and accounta!ility over

responsi!ilities makes it harder for employees to !enefit financially to the extent they would

have done so in the past. Furthermore, as most of the participants worked in the financial

sector, and sales positions it can !e assumed that yearly increases and performance !onuses are

not as high in recent years as was in the past. 5ue to this, there has !een a significant strain on

disposa!le income of householdsE increased inflation and increases in fuel costs. It is with this

in mind that respondents may have indicated financial !enefits as !eing the most important

reward category !enefit in this study.

Motivation of t%e "an#in$ Staff

The data was analysed into means !ased on ( motivating varia!les and ranked in a

decreasing order of importance to the motivational level of the staff. The results show that the

staff motivational level is generally high " '.


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Thus, a critical look at the health and safety policies of the !anks of the 7ape 7oast

)etropolis can improve the !ank staff motivation in the )etropolis. In support of this finding,

7ole "8999# was of the opinion that companies which cater for their workers through the

provision of welfare facilities are likely to reduce the incidence of la!our turnover as it is the

!elief of the respondents too. >f the *( !ank staff who participated in the study, ma$ority

"23.


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the effect of tenure was marginally significant. Pairwise multiple comparisons "of all possi!le

pairs# of Tenure categories, using Tukey:1ramers multiple comparison ad$ustment for the p:

values and confidence limits, showed that respondents with a tenure of ':< years rated the

importance of work environment higher than those with a tenure of 3:* years "controlling for

the effects of the other demographic varia!les#. lthough not significant, the overall trend

appears to !e that those with a shorter tenure rated work environment as more important than

those with a longer tenure.

The staff were of the view that receiving promotion immediately when they are due

contri!uted averagely " '.83# to their motivation. total of ne of the most important drivers in

employment retention and motivation was culture and work environment.

earnin$ pportunities, the overall model was marginally significant.

The effect of ole was significant. espondents from the =ales and Technical roles may !e

confined to one type of skillset and are in re%uirement of further competencies that may !e

marketa!le in the workplace. It is for this reason that they may have highlighted /earning

>pportunities as significant.


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Summary

7areer development and work life !alance appeared to have !een rated more highly !y

employees than the importance attached to these !enefits !y organisations. These results

suggest that organisations could pay more attention to these rewards particularly in Nigeria.

7ompensation strategy is seen as one of the most important strategies in the human resource

management function as it influences the productivity and growth of an organiation. @ence,

modern corporate organiations have deemed it imperative to incorporate effective

compensation strategies for workers as part of their corporate.

A$e Profile

The ma$ority portion of the sample fell within the age group of '9 and '+ years, which

contri!utes 2(L of the sample. The second largest portion of the sample fell within the age

groups of (* and 8+ years and 9 and + years, which each contri!uted to (L of the sample.

The ta!le and chart !elow depicts the age profile of the sample.

Table; A$e Profile

ge Fre%uency Percent

(*:8+y 83 (.

'9:'+y (82 29.


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Education Profile

28L of the respondents have reported to have a post graduate degree, whilst 83L of the

respondents have reported to have a degreeKdiploma. >f the total (*9 respondents, +*L have

reported to have a tertiary education. The ta!le and chart !elow depicts the age profile of the

sample;

Table; Education Profileualification Fre%uency Percent

)atric 9 9.99

5egree K

5iploma

2 83.((

Postgraduate

de ree

(8+ 2(.32

>ther 8.88

C%art; Education Profile

.ob evel Profile


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)anager, whilst (+L of respondents have reported their $o! level profile to !e that of a 4unior

)anager. The ta!le and chart !elow depicts the $o! level profile of the sample.

Table; .ob evel Profile

Position Fre%uency Percent

7lerical K

dmin

9 9.99

=pecialist '8 (2.2*

4unior

)ana er

'< (+.

=enior

)ana er

*( ther ' (.32

C%art; .ob evel Profile

.ob Role Profile

The most fre%uent category respondents reported was >therwhich tells us that the

given categories in the %uestionnaire were not ade%uate as the respondents opted to utilise the

>thercategory. >thercontri!uted to ''L of the sample whilst Finance, =ales and

)arketing contri!uted to (*L, (


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Finance '' (*.''

=ales 82 (


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fall within 3 and * years.

C%art; .ob Tenure

Motivation levels of Staff

This part of the chapter focuses on the !ank staff motivational level First Bank Plc. The

data was analysed into means !ased on ( motivating varia!les and ranked in a decreasing

order of importance to the motivational level of the staff. The results show that the staff

motivational level is generally high "X '.


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The staff place much importance on their health and any attempt to ensure they are

healthy. In this case, a free medical care is of importance to their motivation. This finding

could explain the assertion !y BergstrOm and Ternehll "899


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The estimation results as presented in ta!le a!ove reveal that compensation is a critical factor

affects employees output. =pecifically, the t:statistic indicates that compensation has

statistically significant positive impact on workersproductivity. 9.2*' as the =lope value

indicates that for a unit change in compensation, on the average, the pro!a!ility of having

improved or enhanced workerproductivity increases !y 9.2*'.

&ffect of compensation strategy on organisational performance

5ependent varia!leC yi 8Garia!le 7oefficient T:=tat.7onstant :9.'


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I was given the chance to participate in seminarsetc.

'.*(

I am placed in area of work of great interest '.28

I receive negotiated salary for my work '.+

I have opportunity to take part in decisions '.

I receive appropriate recognition from my !ank '.'9

I receive promotion immediately I am due '.83

ccommodation is provided to me '.8verall)ean '.


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study of non:monetary rewards as a motivation tool rganiations. The 4ournal of merican cademy of

Business,


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study of non:monetary rewards as a motivation tool +

=alisu, .89(8.&mployees )otivation and Profita!ility of Banks in Nigeria.Sef *.8.89('

=pector, P. &. (++2. 4o! =atisfactionC pplication, ssessment, 7auses 6 7onse%uences. =ageC

Thousand >aks

Taylor, F.-. "(+((#. The Principles of =cientific )anagement, New Uork, NUC @arper 6

Brothers

Thum!ran, .=. "89(9#. 0tilising Non:financial ewards as a 7ompetitive dvantage in

attracting and etaining &mployees. Mordon Institute of Business =cience, 0niversity of

Pretoria.

0kssays. "899':89('#. Galidity elia!ility uantitative. Sef.83.8.89(8

Groom, G. @. "(+3#. -ork )otivation. New UorkC 4ohn -iley and =ons.

-allace - 4, Jeffane ) "899(#. >rganiational Behavior. Mlo!al Perspective. 8nd ed.

ustraliaC 4ohn -iley 6 =ons ustralia ltd.

Jikmund, -.M. "899'#. Business research methods. >hio, 0nited =tates of mericaC =outh-estern.

PP&N5I7&C FuestionnaireC


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study of non:monetary rewards as a motivation tool


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A Study of Monetary Rewards as a Motivation Tool

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