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7/30/2019 Research Paper on Motivation in Pharma Industry of Pakistan
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MOTIVATIONthrough
Compensation and Working Environmentin
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
Pharma Industry of Pakistan
Submitted to:
Mr. Nabeel Arif
Submitted by:
M. Amir Mushtaq (Leader) EXMBAFAL12058M.Zeeshan Munir EMBAFAL12019Rehan Baber EXMBAFAL12062
Mehroze Arshad EMBAFAL12008
l
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CONTENTS
Abstract.3
Literature Review .4
Research Methodology 8
Statistical Data . 9
Findings 14
Conclusion 16
Guidance for Further Research 17
Reference .... 18
Questionnaire 20
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in Pharma Industry of Pakistan
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ABSTRACT
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
Page 3 of 23
In any organization employee motivation is the key factor for organizational
performance. Previous studies have shown positive impact of Working
Environment and Compensation on employees motivation. In this study a
sample of 100 Pharma Employees was taken by adopting non probabilityconvenient sampling, to investigate the relationship between Motivation &
Working Environment and Employee Motivation. Pharma Employees found
not highly motivated as a result of working environment and compensation.
Result showed there is a highly positive relationship of independent
variable over dependent variable.
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LITERATURE REVIEW
Introduction
A literature review is a clear and logical presentation of the relevant
research work done before in the same area of investigation.Over and over again studies (Bacon et al, 1996; Deshpande and Golhar,
1994 and Julien, 1998) have emphasized that employees are key to
maintaining a competitive edge by a business. To be successful in a global
market, a firm needs a highly motivated, skilled and satisfied workforce
that can produce quality goods at low costs (Wagar, 1998).
RESEARCHERS VIEW
Figure: Compensation and Work environment effect on
Employee Satisfaction and Performance.
(Emmert and Tamer)
Compensation
Basically compensation refers to all forms of financial returns and tangible
services and benefits employees receive as part of an employmentrelationship (Milkovich & Newman).
Many researchers describe the importance of compensation in motivating
employees.
Compensation benefits (Pay, rewards, medical & transportation) are a
major consideration in human resource management because it provides
employees with a tangible reward for their services (Bohlander, Snell, and
Sherman, 2001)
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
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Sansone and Hareckiewicz (2000) identify that compensation benefits
energize and guide behaviors toward reaching a particular goal (Milkovich
and Newman, 2002).
Stone (1982) indicated that people are motivated by money for manydifferent reasons. The need to provide the basic necessities of life motivates
most people (Kovach, 1987).
Benefits, both financial and otherwise, send a powerful message to
employees of an organization as to what kind of organization management
seeks to create and maintain, and what kind of behavior and attitudes
management seeks from its employees (Beer, et al 1988).
I- Pay or Salaries
Cotton and Tuttle say that employee satisfaction with pay level is important
because it has been found to have an effect on levels of absenteeism and
turnover (Jerald, 1997).
Pay can be a factor in decision to stay or leave, it is clear that
dissatisfaction with pay can be a key factor in turnovers (R. Heneman and
T. Judge: 1999).
Linkage between pay and behaviors of employees results in better
individual and organizational performance (W. N. Cooke: 1987).
The process by which the organization creates and administers incentive
pay can help, it use incentives to achieve the goal of motivating employee
(R. T. Kaufman: 1992).
Level of pay and pay system characteristics influence a job candidates
decision to join a firm (E. E. Lawler: 1971).
II- Rewards & Incentives
In motivation, rewards and incentives directly effect on the behaviors ofemployees. Human Resource Professionals are continuously searching for
fresh and innovative ideas to drive positive results through employees
incentive, recognition and reward programs. According to Daniel and
Metcalf, High-performance companies understand the importance of
offering awards and incentives that recognize, validate and value
outstanding work. They keep employees motivated and are effective
methods of reinforcing company expectations and goals, especially in times
when promotion is rare, health premiums are on rise and overall job
satisfaction is low (Evans, 1986).
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
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According to a report by the American Compensation Associations, August
1996.
When it comes to reinforcing team behavior, the reward system is one of
the most effective and influential tools available to the organization (IRS
1996).
Rewards may enhance the employees financial well-being through wages,
bonuses, or profit sharing, or indirectly, through employer-subsidized
benefits such as retirement plans, paid vacations, paid sick leaves, and
purchase discounts (Sue Shellenbarger, 19999).
In Cheung and Scherling (1999:563), Martin and Touch identifies that
employee job satisfaction is a function of extrinsic (pay, promotion and
good relationship in the work place) and intrinsic (achievement of tasks)
rewards offered by a job.
Rewards that are proportional to the value of suggestions will facilitate
intrinsic motivations (Amabile, 1996).
Rewards promote efforts, performance and there is lot of evidence that they
often do (Gibbons, 1997; Lazear, 2000,).
D. M. Cable & T. A. Judge (1994) suggest that job candidates look for
organizations with reward systems that fit their personalities.
Therefore the reward issue can not be ignored, as it will create a situation
in which the expectation or the actual goal-directed behavior of one person
or group are blocked or are about to be blocked (Steers and Black 1994).
III- Health BenefitsWellness programs for healthy working environment, may help
organization to cut employer health costs and to lower absenteeism and
turnover of employees (Carolyn Petersen).
Family Health benefits often have spillover effects in the form of loyalty
because employees see the benefits as evidence that the organization care
about its employees. (S. L. Grover and K. J. Crooker: 1995).
IV- Working EnvironmentOrganization officials have a legal responsibility, if not a moral one, to
ensure that the workplace is free from unnecessary hazards and that
conditions surrounding the workplace are not hazardous to employees
physical or mental health (Decenzo).
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
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Good working environment such as work relationships, adequate
equipment, space, heating, lighting and ventilation motivated employees
(Gerhart).
Green (2001) says managers can motivate employees by setting in motionthe conditions required for motivation such as working environment,
confidence, trust and satisfaction that enforce employees to improve their
performances.
Herzberg and Miller (1968) states that compensation including pay,
rewards, communication and working conditions are four common
incentives, which motivate employees.
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
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Research Methodology
Objectives / Aims of the research study
It was an attempt to determine the impact of Working Environment andCompensation on employee motivation. The main objectives were:
To investigate the impact of Working Environment and
Compensation on employees motivation.
To investigate the relationship between Independent variables
(Working Environment & Compensation) with dependent variable
(employees motivation).
To recognize the degree of association between Independent
variables and dependent variables.
Instrument:
Sample:
Questionnaire:For this purpose a questionnaire was designed and items were scored on a
five point Likert Scale with end points of Disagree and Strongly
Disagree.
Procedure:Two of the independent and one of the dependent variable relationships
was tried to found. As we have to establish the relationship between
independent variables and dependant variable so we used the correlation to
find the relation of the independent variables with the dependent variable.
To check the impact of independent variables over the dependent variable
we used regression analysis.
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
Total 100 questionnaires were got duly filled by the employees of the
different Pharmas in Pakistan.
Page 8 of 23
Primary data was collected thorough questionnaires. This questionnaire
was initially developed by us by consulting a number of research
papers.
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STATISTICAL DATA
GenderMale 74%
Female 26%
AgeAbove 20 years
21-30 years 53%
31-40 years 28%
41-50 years 11%
Above 50 years 5%
Education
Ph.D 1%
Master Degree 60%
Bechlore Degree 31%
Intermediat 8%
Others
Income (monthly) Rs.10,000-Rs.20,000 28%Rs.21,000-Rs.30,000 38%
Rs.31,000-Rs.40,000 11%
Rs.41,000-Rs.50,000 17%
Above 50,000 6%
Work Experience Less than 6 month 5%
6 month to 1 year 32%
1 to 2 years 22%
3 to 5 years 23%
More than 5 years 18%
S. No. Demographics Working Environment Compensation Motivation IV 1 IV2 DV
1 2.6 2.0 2.25 2.00
2 2.2 2.0 2.125 2.00
3 2.2 2.6 3.375 2.00
4 2.4 2.4 3.375 3.00
5 2.8 1.9 3 2.00
6 2 2.4 3.375 2.50
7 3 1.7 2.625 2.00
8 2.2 2.5 3 3.00
9 2.6 2.3 2.25 2.00
10 1.8 2.2 3.5 2.00
11 2.6 2.3 3.125 2.50
12 2.4 2.3 3.25 2.50
13 1.4 2.3 2.875 2.00
14 2.6 2.6 3.125 3.00
15 1.8 1.9 2.875 2.00
16 1.8 2.0 2.375 2.00
17 2 2.0 2.5 2.00
18 1.8 2.3 3.25 2.50
19 2 2.3 2.625 2.50
20 2 1.8 3 1.00
21 2.2 1.6 1.75 1.50
22 1.8 2.1 3 2.00
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
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23 1.8 2.0 3 2.00
24 1.4 1.9 4.25 2.50
25 2.4 2.2 2.125 2.00
26 3.4 2.0 2.375 1.50
27 3.8 2.0 2.125 2.00
28 3 2.3 2.25 2.00
29 1.8 3.0 3 3.00
30 2.4 2.2 1.75 2.50
31 2.4 2.6 3.5 3.00
32 1.8 2.5 2.625 2.00
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in Pharma Industry of Pakistan
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33 2.2 2.0 2.375 2.00
34 2.4 1.8 2.25 2.50
35 1.8 2.4 3.625 3.00
36 2.6 1.8 2 1.50
37 2.8 3.8 4.5 2.00
38 2.8 2.3 2.375 2.00
39 2 2.2 2.125 2.50
40 2 2.0 2.375 2.00
41 2.2 2.2 2.5 2.00
42 3 1.8 1.625 2.50
43 2.2 2.3 3.25 2.00
44 3.4 2.0 2.5 2.00
45 1.8 1.6 3.75 2.00
46 2.6 2.4 3 1.50
47 3.2 2.5 3.25 3.00
48 2.2 2.0 3.875 2.50
49 3.8 2.2 2.25 2.50
50 2.4 2.3 2.75 3.0051 3 2.2 2.5 2.50
52 3.4 2.2 2.125 2.00
53 3.2 2.3 2.25 2.00
54 3.4 2.8 2.875 3.50
55 2.8 2.7 2 3.00
56 3.2 2.2 2.25 2.50
57 3 2.2 3 3.00
58 3 2.3 2.125 2.50
59 1.6 2.0 1.75 2.50
60 2.6 2.2 1.875 2.00
61 2.4 2.2 1.75 1.50
62 2 2.0 3 2.50
63 1.6 2.4 2.625 2.00
64 1.8 2.4 2.5 2.00
65 3.2 1.9 3.875 3.50
66 2.2 2.1 3.5 3.00
67 2.6 2.7 3.625 2.50
68 2.6 3.2 3.5 4.00
69 3.4 1.3 1.75 1.50
70 1.8 3.0 3.75 3.00
71 2.4 1.8 1.25 1.50
72 2.2 1.8 2.875 2.00
73 3 2.0 3.375 3.50
74 3.2 2.3 1.625 2.50
75 2.6 2.2 2.875 1.50
76 2.2 2.1 3.5 2.50
77 3.8 1.7 1.5 1.50
78 2 1.5 2 2.00
79 2.4 2.1 2.25 3.00
80 2.8 2.0 2.625 2.00
81 2.2 2.8 1.75 3.00
82 2.8 2.3 1.75 2.00
83 2.2 1.6 1.375 2.00
84 2.8 1.8 1.625 1.5085 2.2 2.1 1.25 3.00
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
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86 4 2.5 2.875 3.00
87 2.6 1.9 2 1.50
88 3 1.7 1.75 1.00
89 3 2.3 1.75 3.50
90 2.8 1.9 1 2.00
91 3.4 2.5 4.5 2.50
92 3.6 1.6 1.25 2.00
93 2.8 2.1 2 2.00
94 2 2.3 3.25 2.50
95 2.4 2.3 1.75 2.50
96 2.4 1.8 2.5 2.50
97 2.4 2.4 2.875 2.50
98 3 1.7 2.375 2.00
99 2.8 2.2 3.125 2.50
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
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Working
Environment
Compensation Motivation
Mean 2.256666667 2.784166667 2.436666667
Median 2.2 2.6 2.5
Mode 2.0 2.3 2.0
Standard Deviation 0.5 1.0 0.7
Sample Variance 0.3 0.9 0.5
Minimum 1.3 1.0 1.0
Maximum 4.3 5.0 5.0
Correlation b/w Motivation
and king Environment
Correlation b/w Motivation
and Compensation
0.646238187 0.530625915
Regression Lines b/w Motivation
(X) and Working Environment (Y)
Regression Lines b/w Motivation
(X) and Compensation (Z)
X = 0.30 + 0.95Y X = 1.11 + 0.48Z
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
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Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
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FINDINGS
Co Relational Analysis
Correlation b/w Motivation
and Working Environment
Correlation b/w Motivation
and Compensation
0.646238187 0.530625915
According to the research we found that there is a high positive correlation
between Motivation and Working Environment as well as Motivation and
Compensation.
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
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Descriptive results revealed positive trend of variables i.e. Working
Environment & Motivation and Compensation and Motivation. Likert
scale helped to explain the feelings of pharma officers towardsCompensation, Working Environment and motivation.
Aggregate mean of dependent variable (motivation) is found as (2.44),
median (2.5), mode (2.0) with (0.7) standard deviation and (0.5) sample
variance. We find with the help of this analysis that the motivation level of
Pharma employees is not very high. They are somehow dissatisfied or
not motivated in terms of working environment and compensation.
The aggregate mean of 1st independent variable (Working Environment) is
calculated as (2.26), median (2.2), mode (2) with (0.50) standard deviation
and (0.30) sample variance, which shows that the people working in
pharma industry of Pakistan feel that there is need to update the
working environment of the pharma. They are of a view that working
environment in pharma industry of Pakistan has some flaws in it which
needs to be removed. In nutshell, Pharma employees are not foundhighly satisfied and motivated with their current working environment
of thepharma industry in Pakistan.
The aggregate mean of 2nd independent variable (Compensation) is
calculated as (2.78),median (2.6),mode (2.3) with (1.0) standard deviation
and (0.90) sample variance. This again reveals that most of the people are
not satisfied with the fully satisfied with their compensation structure. The
pharma employees feel that they are not paid according to the services
they are giving to pharma. They are not getting the true fruit of their
hard work. There is a need to update the compensation structureaccording to the services provided by employees.
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If the Working Environment is conducive and cooperating which give the
employees a feeling of self accomplishment, hen they will be more
motivated and loyal to their organization.
Many of other researchers previously found similar results from their
research and analysis. Sansone and Hareckiewicz (2000) identify that
compensation benefits energize and guide behaviors toward reaching a
particular goal (Milkovich and Newman, 2002).
Stone (1982) indicated that people are motivated by money for many
different reasons. The need to provide the basic necessities of life motivates
most people (Kovach, 1987).
Regression ResultsThe regression line expresses the best prediction of the dependent variable
(X, Motivation), on the independent variables (Y, Working Environment)
and (Z, Compensation). The regression lines equations for these variables
are as follows:
Regression Lines b/w
Motivation (X) and Working
Environment (Y)
Regression Lines b/w
Motivation (X) and
Compensation (Z)X = 0.30 + 0.95Y X = 1.11 + 0.48Z
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
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CONCLUSION
Motivation is linked with good working environment and high level of
compensation.
The organization should must understand that what type of workenvironment can motivate their employees and they can become loyal
employees of the organization which benefit the organization in the long
run. Moreover the organizations should develop such a compensation
structure that fulfill the needs of the employees in a best possible way and
that they dont look around to meet their needs.
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
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DIRECTION FOR FUTURE RESEARCH
We can further carry on this research by adding certain other variables to
check their relationship with motivation and these factors might be QualitySupervision, Empowerment, Career Development, Growth Opportunities,
Qualification, and Participation etc.
AcknowledgementsThe authors gratefully acknowledge many helpful comments on this
research.
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
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REFERENCES1. Amabile, T. M. 1996, creativity in context, 2nd ed, Boulder, co, West view press.
2. Beer, M. and Walton, E. R. 1990 Reward Systems and the Role of
Compensation Manage People, Not Personnel: Motivation and performance
Appraisal. A Harvard Business Review Book, Chapter 2, pp.15-30.
3. Bohlander, G., Snell, S. and Sherman A., 2001, Managing Human Resources.Cincinnati, OH: South-Western College Publishing
4. Carolyn Petersen, 2000, Value of Complementary Care Rises, But Poses
Challenges, Managed Healthcare.
5. Colvin, G. (1998). What money makes you do? Fortune 138 (4), 213-214.
6. David A. Decenzo and Stephen P. Robbins. 2002, Human Resource
Management, 7th ed. John Wiley and Sons, Inc.
7. D. M. Cable & T. A. Judge, 1994, Pay Preferences and Job Search Decisions: A
Person-Organization Fit Perspective, Personal Psychology 47, pp.317-48.
8. E. E. Lawler, 1971, Pay & Organizational Effectiveness: A Psychological View,
New York, McGrew-Hill, Inc.
9. Emmert, M. and Tamer W. A., 1992. Public Sector Professionals: The effect of
Public Sector Job on Motivation, Satisfaction and Work involvement. American
Review of Public Administration, Vol. 22, pp.37-48.
10. Evans M. G., 1986. Organizational behavior: The central role of motivation.
Journal of Management.
11. F. Herzberg, B. Mausner, B. Snyderman.1959, The motivation to work. New
York, Johnwiely.
12. Green Berg J, 2001. Organizational Justice as Probation and reactions:
Implications for research `and application. In Cropanzano R (ed.), Justice in
work place: form theory to practice (Vol. 2, pp. 271-302).
13. Gerhart B. (ed.), compensation in organization: Current Research and Practice,pp. 32-60. San Francisco: Jossey-Bass.
14. Gibbons R., 1997, incentives and careers in organizations. In advances in
Economic theory and Econometrics, Vol. II, Kreps D. and Wallis K, ed.
Cambridge University press, U.K.
15. Herzberg. F. 1968, One more time: How do you motivate employees?
Harward business review, Vol. 46, ISS. 1, pp, 53-62
16. IRS Employment Review, 1996, Selecting team rewards. London , Internet
17. Jerald, G. and Robert, A. B., 1997. Behavior in Organizations: Understanding
and Managing the Human Side of Work, Upper Saddle River, NJ: Prentice-Hall,
Inc.
18. Kovach, K., 1987. What Motivates Employees? Workers and Supervisors GiveDifferent Answers. Business Horizons.
19. Martin, J. and Hanson, S., 1985. Sex, family wage earning status and
satisfaction with work and occupations, 12, 91-109.
20. Milkovich & Newman, 2002. Compensation, 7th ed, The McGrew-Hill
Companies, Inc.
21. R. T. Kaufman, 1992, The Effects of Improshare on Productivity, Industrial
and Labour Relations Review 45, pp. 311-22.
22. R. Heneman and T. Judge, 1999, Compensation Attitudes: A Review and
Recommendations for Future Research, in Compensation in Organization:
Progress and Prospects, S.L. Rynes and B. Gerhart, eds. New Lexington Press,
San Francisco.23. Steers, R. and Black, J. 1994,Organization Behavior, 5th ed, Harper Collins.
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24. S. L. Grover and K. J. Crooker, 1995, Who Appreciates Family Responsive
Human Resource Policies: The Impact of Family-Friendly Policies on the
Organizational Attachment of Parents and Non-parents, Personnel Psychology
48, pp. 271-88.
25. Sue Shellenbarger, 1999, Employees who value time as much as money Now
get their Reward, Wall street journal, p. B-1.26. Wagar, Terry H., 1998, "Determinants of Human Resource Management
Practices in Small Firms: some Evidence from Atlantic Canada," Journal of
Small Business Management, pp.13-23.
27. W. N. Cooke, 1994, Employee Participation Programs, Group based Incentives
& company Performance, Industrial and Labour Relations Review 47, pp. 603-
36.
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This research is confidential. No responder will be disclosed individually. We request
that you provide your honest views, avoiding overly positive and overly negativefeedback.
DEMOGRAPHICS
1. Gender
Male Female
2. Age
a) Above 20
b) 21 30
c) 31 40
d) 41 50
e) Above 50
3. Education Level
a) PhD
b) Post Graduate Level
c) Graduate Level
d) Intermediate Level
e) Other
________________________________________________________________
a) Less than 6 months
b) 6 months 1 yearc) 1 2 years
d) 2 3 years
e) 3 5 years
f) More than 5 years
5. What is your management level?
________________________________________________
6. What is your pay level?
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
Motivation of Employees in Pharma Industry of Pakistan
Questionnaire
Page 21 of 23
4. How long have you been working at _________________(Name ofOrganizarion)
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a) 10,000 20,000
b) 20,000 30,000
c) 30,000 40,000
d) 40,000 50,000
e) Above 50,000
WORK ENVIRONMENT StronglyAgree
Agree Neutral Disagree Strongly
Disagree
9. Work assigned to me is
interesting, rewarding and
challenging and give me afeeling of personal
accomplishment.
The amount of work expected to
do in my job is reasonable.
Employees have the support and
authority to make the decision
necessary for accomplishing
their assigned tasks.
Employees have the resources(personnel, finances, tools)
necessary to do quality work.
All employees at ____________
are treated fairly regardless of
age, race, gender, family status,
veteran status, national origin,
disability, personality, thinking
style or sexual orientation.
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
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Organization provides an
environment where diverse
individuals can work together
effectively and happily.
8. I fully utilize my skills andabilities in the Organization.
7. I am treated with dignity and
respect by management
10
11. Organization is responsive to
change and encourages change
within the organization in order
to stay effective in a changing
environment.Organization place a great
emphasis on honestly, integrity
and ethical behavior.
12
13
14
15
16
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We can exchange our views
freely in the work place.
Work environment is overall
very comfortable, friendly andcooperative.
COMPENSATION StronglyAgree
Agree Neutral Disagree Strongly
Disagree
Overall, the employee benefits I
receive meet my needs.
I receive good medical
allowances.
How would you rate the quality
of service you receive when you
have a benefits issue, question or
claim?
Very Good Good Average Poor Very Poor
MOTIVATION StronglyAgree
Agree Neutral Disagree Strongly
Disagree
I am satisfied with my
compensation & benefits
package.
Thank you very much for your support
Motivation through Compensation and Working Environment
in Pharma Industry of Pakistan
Organization pays forperformance.
I am highly motivated with thecurrent working environment of
my Organization.
The overall benefits given to me
by Organization, provide good
security for me and my family.
Organization is providing
me with transportfacility.
17
18
19
20
21
22
23
24
25
26
27
28
I understand the value of the
total compensation
(compensation + benefits)
package that Organizationdelivers to me.
As Compared to other in theindustry my Organization has
an excellent compensation and
benefits package.