REWARDS AND WORK PERFORMANCE; A CASE STUDY OF SELECTED BUSINESS ENTERPRISES IN MAKINDYE DIVISION KAMPALA, UGANDA

BY;

BAHATI DEMIANO BHR/38471/123/DU

A RESEARCH REPORT SUBMITTED TO THE COLLEGE OF ECONOMICS AND MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE A WARD OF A BACHELOR'S DEGREE IN HUMAN RESOURCE MANAGEMENT OF KAMPALA INTERNATIONAL UNIVERSITY

APRIL, 2015 DECLARATION

I, Bahati Demiano, the undersigned declare that this Research Report entitled "Rewards and work performance; a case study of selected business enterprises in Makindye division, Kampala, Uganda" with the exception of the acknowledged references, ideas and concerns is my own original work and has never been presented to any organization or institution of higher learning for a Degree or any other Academic A ward.

Signature: ··· ·················· ····~~.4......

BAHATI DEMIANO BHR/38471/123/DU

lJ tVI ,4-v :)_JD (.S- ...... ~.J-..rt:...... : .: . .,...... Date APPROVAL

This is to acknowledge that, this Research Report "Rewards and work performance; a case study of selected business enterprises in Makindye division, Kampala, Uganda" prepare by Bahati Demiano, has been carried out under my close supervision and is now ready for submission to the College of Economic and Management in partial fulfillment of the requirements for the Bachelors' Degree in Human Resource Management of Kampala International University with my approval.

Signature: ...... ~ ...... Ms. Kagubaire Charity (Supervisor)

Ir-fl- u Ai Qo f...S,... ················+ ·······J.-.~...... Date

11 DEDICATION

I dedicate my dissertation work to my family and many friends. A special feeling of gratitude to my loving parents; Mr. Hatari Sekoko my mother Deodanta Costance and my uncle Mr Harambe Sekoko, You have given me the drive and discipline to tackle any task with enthusiasm and determination. Without your love and support this project would not have been made possible.

I dedicate this piece of work to the Almighty God for his mercy, Grace and love in my life, ifit was not for Jesus, nothing would have been possible. No one walks alone on the journey of life. just where do you start to thank those that joined you, walked beside you, and helped you along the way continuously urged me to write a book, to put my thoughts down on Over the years, those that I have met and worked with have paper, and to share my insights together with the secrets to my continual, positive approach to life and all that life throws at us. So at last, here it is. So, perhaps this book and it's pages will be seen as "thanks" to the tens of thousands of you who have helped make my life what is today.

iii ACKNOWLEDGEMENTS

My sincere gratitude goes to my supervisor Mrs. Kagubaire Charity whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of the subject. She directed and guided me throughout this work with expertise and professionalism. Without her comments, criticism, advice, corrections and directives this research would have not take this dimension. Special mention goes to the Head of Department of Humana Resources and Supply management; Mr. Mbago Ronald for providing me with all the necessary information and assistance required to completing this research Report.

My lecturer, Mr. Kanyangabo Edward for the valuable guidance and advice. He inspired us greatly to work in this project. His willingness to motivate us contributed tremendously to my research study. I also would like to thank him for showing me some example that related to the topic of my study.

The management of, Besides, I would like to tlmnk the authority of Buziga country Resort, Munyonyo country Resort and Hotel Olympia among other business enterprises for providing me with a good environment and facilities to complete this study. It gave me an opportunity to paiiicipate and learn about the reward and work performance. In addition, I would also like to thank the selected business enterprise which provided me valuable info1mation as the guidance of my research study. Finally, an honorable mention goes to my family and friends for their understandings and suppo1is in completing this study. Without helps of the particular that mentioned above, i would face many difficulties while doing this

I would like to express my gratitude towards my parents & member of College of Economics and Management for their kind co-operation and encouragement which help me in completion of this project. I would like to express my special gratitude and thanks to industry persons for giving me such attention and time. My thanks and appreciations also go to my colleague in foveloping the project and people who have willingly helped me out with their abilities.

:.-astly, I offer my regards ai1d blessings to all of those who supported me in any respect during he completion of the study.

IV TABLE OF CONTENTS

Declaration ...... i Approval ...... ii Dedication ...... iii Acknowledgements ...... iv Table of contents ...... v List of figures ...... x Abstract...... xi Acronyms ...... xii

CHAPTER ONE ...... 1 BACKGROUND OF THE STUDY ...... 1 1.0 Introduction ...... 1 1.1 Background of the study ...... 1 1.2 Statement of the problem ...... 3 1.3 Purpose of the study ...... 4 1.4 Research Objectives ...... 5 1.4.1 General objective ...... 5 1.4.2 Specific objectives; ...... 5 1.5 Research questions ...... 5 1.6 Scope of the Study ...... 6 1.6.1 Geographical Scope ...... 6 1.6.2 Content Scope ...... 6 1.6.3 Time Scope ...... 6 1. 7 Significance of the Study ...... 6 1.8 Conceptual Framework ...... 8 1.9 Key Operational Terms ...... 10

V CHAPTER TW0 ...... 11 LITERA TORE REVIEW ...... 11 2.0 Introduction ...... 11 2.1 Theoretical review ...... 11 2.2 Reward ...... 13 2.2.1 Empowerment ...... 13 2.2.3 Reward and Job satisfaction ...... 16 2.2.3 Rewarding and Performance ...... 18 2.2.4 Bonuses ...... 25 2.2.5 Fringe Benefits ...... 26 2.3 Work Perfo1mance ...... 27 2.3 .1 Financial performance ...... 29 2.3 .2 Customer service ...... 29 2.3.3 Social responsibility ...... 30 2.3.4 Employee stewardship and Communication ...... 32 2.4 Related Studies ...... 3 5

CHAPTER THREE ...... 38 RESEARCH METHODOLOGY ...... 38 3.0 Introduction ...... 38 3 .1 Research Design ...... 3 8 3.2 Research Population ...... 38 3.3 Sampling Procedure ...... 39 3.4 Instrumentation ...... 40 3.4.1 Interviews; ...... 40 3.4.2 Quest10nnaires; ...... 40 3.4.3 Document Analysis ...... 40 3.5 Validity and Reliability ...... 41 3.6 Data Gathering Procedures ...... 42 3.6.1 Before data gathering ...... 42 3.6.2 During data gathering ...... 42 3.6.3 After data gathering ...... 42

VI 3.7 Data Analysis ...... 42 3.8 Ethical Consideration ...... 43 3.9 Limitations of the Study ...... 43

CHAPTER FOUR ...... 45 DATA PRESENTATION, ANALYSIS AND INTERPRETATION ...... 45 4.0 Introduction ...... 45 4.1 The level of Rewards ...... 45 4.2 Work Perfo1mance ...... 54 4.3 Relationship between Rewards and work performance ...... 64 4.4 Findings from the interview guide ...... 66

CHAPTER FIVE ...... 68 DISCUSSION, SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS ...... 68 5.0 Introduction ...... 68 5.1 Summary Findings ...... 68 5.1.1 Reward and Performance ...... 69 5.1.2 Work performance ...... 71 5 .1.3 Relationship between Reward and work performance ...... 71 5 .1.4 Responses from Interviews ...... 71 5.2 Conclusion ...... 75 5.3 Recommendations ...... 78 5.3.1 Rewards ...... 78 5.3.2 Work performance ...... 79 5.3.3 Rewards and work performance ...... 82 5 .4 Areas for Future Studies ...... 84

vii REFERENCES ...... 86

APPENDICES ...... 93 appendix iA: Transmittal Letter from the College of economics and management ...... 93 APPENDIX IB: Transmittal Letter from Munyonyo Commonwealth Resort ...... 94 Appendix IC: Transmittal Letter From Buziga Country Resort ...... 95 APPENDIX IIA: Questionnaire to determine Rewards ...... 96 APPENDIX IIB: Questionnaire to determine Work Performance ...... 98 APPENDIX IIC: Interview Guide ...... 100 Appendix III: The adopted Time Frame of the Study ...... I 01 Appendix IV:The adopted Budget for the Study...... I 02 appendix V: Sketch Map of the study areas ...... I 03

viii LIST OF TABLES

Table 3.1: Target Population ...... 39 Table 3.2;Validity of the data analysis ...... 41 Table 4.1: Level of Rewards (n=l09) ...... 45 Table 4.2: Level of Work Performance (n=l09) ...... 55 Table 4.4: Significant relationship between the Rewards and Work Perf01mance ...... 64

IX LIST OF FIGURES

Figure 1: Conceptual framework ...... 8

X ABSTRACT The study intended to establish the relationship between Rewards and work performance; a case study of Buziga country Resort, Munyonyo country Resort and Hotel Olympia Hardware, Weld and metal works in Makindye division. it was guides by three objective which included; (a) to establish the level of rewards in terms of; empowerment, identification and appreciation, delegation, pay/salary, promotion, bonus and fringe benefits (b) Identify the extent of work performance among Buziga country Resmi, Munyonyo country Reso1i and Hotel Olympia in Makindye division (c) Establish whether there is no significant relationship between Rewards and work performance among the selected businesses. The purpose of this research was to get findings to suppo1i the hypotheses or otherwise, that: there is no significant relationship between rewards and work performance in hardware, weld and metal works, hotels, market traders, wholesales shops, and education institutions, in Makindye division. Basing on the findings, to suppo1i/ not suppo1i the theory (ies) on the relationship between Rewards and work perfo1mance. Theory and evidence identify the existing gaps, regarding literature and the findings of this study. The data collection instruments were basically self-administered questionnaires, interviews, as well as document analysis. The gathered data was analyzed using descriptive statistics. Statistical Package for Social Sciences (SPSS) computer software was used to generate tables and percentages. Regarding Rewards the findings reveal that three constructs were measured and Empowerment emerged out as the highest , it had five items with means ranges from 3.33 to 2.85 with an average mean of 3.05; This was followed by identification and appreciation with also five items which ranges from 3.08 to 2.69 with average mean of 2.86 and lastly, Delegation which also had five items with means ranged from 3 .29 to 2.95 with an average mean of2.95 and an overall mean of2.95 rated high on rewards. Regarding work performance four (4) constructs were measured and financial performance emerged out as the highest, it had five items with means ranges from 3 .51 to 3 .31 with an average mean of 3.31; this was followed by customer service with also five items which ranges from 3.35 to 3.12 with average mean of 3.12, followed by social responsibility with also five items which ranges from 3.19 to 2.80 with average mean of 3.00 and lastly, employee stewardship which also had five items with means ranged from 2.95 to 2.58 with an average mean of2.83 and an overall mean of2.96 rated high on rewards. Overall, the statistical results show that although all reward types have a direct positive relationship with employees' performance based on the correlation test, three types that is to say appreciation, fringe benefits, and bonus lose their importance when they are considered in a more comprehensive model including other rewards. Furthermore, the study shows that internal rewards have more powerful effects on employees' performance than the extrinsic rewards. It was recommended that; improving work/life balance is another powerful reward, employee-led event. Without adding to the workload of the employee invite them to present their initiative or lead a workshop or training seminar to others at the company, choose a variety of rewards. Make sure your managers take the time to recognize and acknowledge employee achievements, initiatives, even behaviors by speaking out privately or in a group setting. day to day words, when said with meaning and purpose, have a residual impact, celebrate and socialize, when a goal is reached, an initiative is implemented. mentoring may help employees through interacting regularly with higher level employees, employee discipline may be justified in cases of misconduct and exceedingly poor performance, attendance, improve your time management, prioritise tasks, work out its priority, keep a healthy work and life balance, Communication is essential, and keeping people informed xi ACRONYMS

EI Emotional intelligence PA Performance appraisal PBI Performance Based Interviewing PLCC Pearson linear con-elation coefficient SPSS Statistical package for social scientist

xii CHAPTER ONE BACKGROUND OF THE STUDY 1.0 Introduction This chapter focuses on the background of the study, Problem Statement, Purpose, research objectives, research questions, scope, hypothesis and significance of the study, validity, ethical consideration and limitations of the study.

1.1 Background of the study Adopting the changes in the market in all of the firms is considered as one of the important targets. So, the responsibility of the managers is high for arranging and improving these relations for being strong and acting strong in market (Beer, 1984) that the composition and strategies of firms have a lot of alterations. Hence, the managers should adopt the plans for these alterations to define the missions, predicted outcomes and visions and also getting sufficient degree of efficiency (Syedain, 1995). For obtaining this objective they should consider the customer and also employee and also the communication method with them (Harmon, 2007). Therefore, employee is considered as the important concept to be focused in case of human resource. Hence, they are considered to shape the important part of the strategies related to human resource that are adopted by managers in the firm. In this regard, for instance, while the managers of line assume reward strategies in human resource, they must provide a proper system of reward for the firm. Even the reward experts are able to give new developed policies of challenging reward for the company (Carraher, et al., 2006). Anyways, they should be confirmed by the key managers to perform the. It can be said that the impo1iance of human resource is obvious for these managers these days and if they do not define the modern policy it leads to some negative outcomes for them (Syed et al., 2010).

The organizations are facing a lot of challenges and among these issues, getting the right employees and retaining them is one of the most important ones. In addition, today, the benefit of human resource is measured to be one of the most important advantages of any organization; and in order to acquire the results with the highest efficiency and effectiveness from human resource, motivation of employee is very essential. In fact, employees will do their highest when they feel or hope that their hard work are to be

1 rewarded by their managers. In this regard, many factors are available that change employees performance such as worker and employer relationship, working conditions, job security, training and opportunity of development, and overall rewarding policies of the company (Carraher, et al., 2006). In addition, among the factors which impact employee performance, motivation, as a result of rewards, is the most impo1iant aspect. Motivation is defined as the growth of different processes which express and control peoples behavior to achieve some specific goals (Baron, 1983). Therefore, understanding its importance is very necessary for all organizations managers.

The maximum level of workers performance happens when they feel their endeavor is rewarded and compensated completely (Goleman et al., 2004). Some other successful elements on employees performance include work conditions, the connection between employee and employer, process of training and improvement opportunities, job security and complete policies of firm rewarding (Carraher, et al., 2006). In addition, motivation, as the result of rewarding, affects the staffs behavior and their performance directly (Hafiza et al., 2011). Actually, among all effective elements on employees perfonnance, motivation, which is the consequence of rewarding, is the most important and essential element. This concept consists of different processes which affect employees behavior to achieve some definite goals (Baron, 1983).

Motivation, as the main core of the organizational behavior field in the work environn1ent and other contexts, is often categorized as intrinsic and "extrinsic (Sansone & Harackiewicz, 2000). Intrinsic motivation, results from the people or from their activity itself; and it impacts the performance, behavior, and well being of employee directly and positively (Ryan & Deci, 2000). Besides, tl1e extrinsic behavioral possibilities are also effective dete1minants of behavior's motivation (Heneman et al., 2000). Indeed, each type of motivation has its own literature and description. Organizations categorize their reward process and the way of communicating them to the employees. In fact, they try to understand clearly the relationship between rewards either intrinsic or extrinsic (McCormick and Tifflin, 1979) and performance (Carraher, et al., 2006).

2 Intrinsic rewards are rewards that are inbuilt from the job itself. Therefore, the employee enjoys them as the result of finishing the task in a successful manner or approaching his exclusive goals (Ssesanga, et al., 2005). Extrinsic rewards are the ones that are exterior to the job task, such as pay, fringe benefits, work condition, job security, service contract, promotion, and the work environment and condition. Such physical rewards are constant at the organizational level, and could be out of the control of the managers (CaiTaher, et al., 2006). On the other hand, intrinsic rewards are the ones that could be named emotional rewards and some of its examples include using employees ability, recognition, receiving appreciation, challenging and achievement, and behaving in an understanding and concerned maimer. However, the purpose of this study is to provide an examination of the relationship of intrinsic and extrinsic rewarding on employees performance

.. 2 Statement of the Problem. Based on all the current studies and by considering the relationships between all of the findings, one can normally find out that a valid compensation package, which includes financial rewai·ds, causes higher efficiency and performance for the organization. This compensation package includes both intrinsic and extrinsic rewai·ds (Hunjra et al., 2010). Extrinsic rewai·ds consists of external and tangible rewards to the performed efforts and employees tasks, it can be in terms of promotions, salary/pay, bonuses, incentives, job security among others (Ivana et al., 2009). Overall, the highly-involved employees who are necessai·ily more oriented to their jobs depend more on intrinsic rewai·ds than extrinsic ones (Wood, 1974). Although rewai·ds in an organisation play a significant role, work performance has not been given utmost attention thus Job description, end results or statistics not clear, Lack of training or knowledge, Personal problems getting in the way, and employee is not suited to the job this has been caused by; ineffective leadership, wrong people at the wrong place, inadequate work-systems and processes and individual's in capabilities, communication, conditions and consequences lack of open, honest communication this has been indicated as in unhappy employee, not feeling fulfilled, irrelevant job needs and the person skills, weaker / undefined career path, lack of recognition, family needs not met, poor salary, poor benefits, no perks!, low morale, change of personal goals, sensing layoff, poor , organization culture, ineffective reward systems, boring workplace, feeling 3 of boredom, lack of challenges, work life imbalance, stressful work environment, very demanding client, culture of not taking the accountability, less overall communication between people, lost faith in the vision, too much internal politics, company culture mismatch with individual's values, too much bureaucracy, too much agility, insecurity, unfriendly leave policy, hostile environment, revised mission statement not exciting, lack of growth opportunities, salary not in alignment with responsibilities, lack of learning opportunities, lack of coaching, training and mentoring, bad Boss, whimsical reporting manager, lack of motivation, indistinctive leadership in different situations, management does not keep promises, lack of trnst and confidence in the boss / management, Bad Team , Sore relationship with team members and mental or physical abuse. Nearly 75 percent of employees who leave their jobs do so because of communication issues with their boss not money. The number one factor that drives employees to be engaged in their job is their relationship with their boss." If you believe an employee is not making enough of an effort, you'll likely put increased pressure on him or her to perform. But if the real issue is ability, then increased pressure may only make the problem worse. Low ability may be associated with the following: over-difficult tasks, low individual aptitude, skill, and knowledge; evidence of strong effort, despite poor performance and lack of improvement over time. People with low ability may have been poorly matched with jobs in the first place. They may have been promoted to a position that's too demanding for them. or maybe they no longer have the suppoti that previously helped them to perform well. It is against this background therefore, that this study would be undertaken to examine the Rewards and work performance; a case study of selected business enterprises in Makindye division, Kampala, Uganda .

. 3 Purpose of the Study The purpose of this study is thus; To get findings to support the hypotheses or otherwise, that: there is no significant relationship between Rewards and work performance; a case study of selected Hardware, Weld and metal works, Hotels, market traders, Wholesales shops, and Education Institutions, in Makindye division. Basing on the findings, to support/ not suppoti the theory (ies) on the relationship between Rewards and work perfo1mance. Theory and Evidence among others. Identify the existing gaps, regarding literature and the findings of this study. 4 1.4 Research Objectives 1.4.1 General objective The general objective of this study is to examine the Rewards and work performance; a case study of Buziga country Resort, Munyonyo country Resort and Hotel Olympia Hardware, Weld and metal works in Makindye division.

1.4.2 Specific objectives; The specific objective is to; (i) To establish the level of rewards in terms of; empowerment, identification and appreciation, delegation, pay/salary, promotion, bonus and fringe benefits among Buziga country Resort, Munyonyo country Resort and Hotel Olympia in Makindye division, Kampala, Uganda. (ii) Identify the extent of work performance, customer service, social responsibility, employee stewardship, and financial performance among Buziga country Resort, Munyonyo country Resort and Hotel Olympia in Makindye division, Kampala, Uganda. (iii) Establish whether there is no significant relationship between Rewards and work performance among Buziga country Resort, Munyonyo country Resort and Hotel Olympia in Makindye division, Kampala, Uganda.

1.5 Research questions The study was guided by the following objectives; (i) What is the level of rewards in terms of; empowerment, identification and appreciation, delegation, pay/salary, promotion, bonus and fringe benefits among Buziga country Resort, Munyonyo country Resmi and Hotel Olympia in Makindye division, Kampala, Uganda. (ii) What is the extent of work performance, customer service, social responsibility, employee stewardship, and financial performance among Buziga country Resort, Munyonyo country Resort and Hotel Olympia in Makindye division, Kampala, Uganda.

5 (iii) Is there no significant relationship between Rewards and work performance among Buziga country Resort, Munyonyo country Resort and Hotel Olympia in Makindye division, Kampala, Uganda.

1.6 Scope of the Study 1.6.1 Geographical Scope The study was can·ied out in Makindye division which is one of the five administrative divisions of Kampala, the capital of Uganda, and the largest city in that country. Makindye division is in the southeastern comer of the city, bordering Wakiso District to the south and west. The eastern boundary of the division is Murchison Bay, a part of Lake Victoria. Nakawa Division lies to the northeast of Makindye Division. Kampala Central Division lies to the north and Lubaga Division lies to the n01thwest. The coordinates of Makindye Division are:0°17'00.0"N, 32°35'00.0"E (Latitude:0.283334; Longitude:32.583334). Makindye, where the divisional headquarters are located, sits approximately 6 kilometres (3.7 mi), by road, southeast of Kampala's Central business district (Ikwap, 2013)

1.6.2 Content Scope The study was confined to the rewards in terms of ; empowerment, identification and appreciation, delegation, pay/salary, promotion, bonus and fringe benefits as well as work perfo1mance, customer service, social responsibility, employee stewardship, and financial performance among Buziga country Res01t, Munyonyo country Resort and Hotel Olympia in Makindye division, Kampala, Uganda.

1.6.3 Time Scope The study was conducted within seven (7) month. It staited with writing Report followed by data collection, analysis and interpretation, submission of the final Report, between January, 2015 and August, 2015 .

•7 Significance of the Study The findings of this study to the researcher ai·e in partial fulfillment of the requirements for the award of a Bachelor's Degree in Human Resource Management of Kampala International University.

6 The findings of this study will be important to business, simply put, the elements of a total rewards program constitute all the things a business uses to attract employees, including salary, bonuses, incentive pay, benefits and employee growth opportunities such as professional development and additional training. This system provides a number of advantages to companies, particularly small businesses in which business owners and managers must foster positive personal relationships with employees.

The findings of this study will be important to employees' professional development, to meeting the company's or firm's goals or objectives and, ultimately, to contributing to the company's or firm's bottom line.

The findings of this study are also vital to organisations in order to monitor employees' performance, motivate staff and improve company morale since financial rewards and cash bonuses are advantageous to personnel because managers have the opportunity to retain their workers, allowing them to keep experienced taskforce, and providing employees with a degree of stability and familiarity. A worker who is given incentives and better pay is less likely to look for other employment opportunities, saving his manager the bother of looking for a replacement. The findings of this study to the general public will be crucial, they streamline the fact that reward programs will be evident if the managers are not adequately trained to monitor, interview and grade their staff. Grading that does not accurately reflect the employee's work performance could land a company in hot water, as performance evaluations often are used as evidence in wrongful termination cases. Further still, supervisors who let personal bias creep into their employee evaluations could be setting the stage for a lawsuit.

To stakeholders the findings of this study will be vital in a way that, cash rewards are expedient to employees because they can use the extra income to settle their bills and even start their own projects. According to recent studies, most people usually spend more money than they make each year. This shows you that personal income for most folks is not enough to cover basic necessities. Therefore, providing cash bonuses to employees offers tangible benefits and can boost their performance.

Policy makers, the findings gives an insight that your employees with cash bonuses can demonstrate to them that you value their work as well as their contribution to the 7 business. Although gratitude and praise are great motivating factors, a raise is a tangible expression of appreciation. Employees will work harder in the hopes of receiving financial rewards.

1.8. Conceptual Framework Figure 1: Conceptual Framework

Rewards Work Performance

. ' . Financial Intrinsic Reward performance • Empowerment • Identification and Appreciation Customer • Delegation service Job satisfaction ' Extrinsic Reward Social • Pay/Salary responsibility • Promotion • Bonus • Fringe Benefits Employee stewardship

Communication Source: Filed study (2015) Figure 1. illustration above provides an examination of the relationship of intrinsic and extrinsic rewarding on employees performance. Therefore, the rewarding (extrinsic and intrinsic rewarding) is considered as independent and the employee's performance as dependent variables. Rewarding has been found to be one of the main organizations­ policies which can increase the performance of staff and increase the outputs of organizations (Ajila, 1997). Indeed, with the existing international economic development, many employers have comprehended this fact that productivity is needed for their organizations to compete strongly and also their employees productivity is required in shaping the organization achievements. On the other hand, employees

8 performance, as a result of the development and the growth 1s critical for any organization. Rewarding is essential as an incentive and an unbreakable motivator to realize the organizational performance. In addition, today, it has been adopted by different organizations in both public and private sections. In downsizing, for instance, doing more with reward is very important to elevate self-esteem and to establish kindness between managers and their employees (Bowen, 2000). On the whole, the employees= insight into the reward practice clarity depends on two factors: complexity and communication. In other words, the requirement for a clear reward system includes having an obvious communication of the offer and concentration on the rewards as well as the concerns about comprehending the methodologies, targets, and measures applied while introducing rewards. In this case, the employees need to know the relationship between the firm_s goals, their supply, and the way they are rewarded; and ambiguity in this regard will decrease the motivation rewarding value (Gibbons, 1998). Pertaining to the reward discussion, Ivana, Lovorka, and Nevenka (2009) discussed that rewarding must please an open and full obvious regarding awards. On the other side, communication of the rewards accessibility, the criteria for getting satisfied, and the award recipients recognition should be accessed by rewards (Ivana et al. 2009). Extrinsic motivation behaviors include the actions that are extracted from external rewards, such as payment, esteem, material properties, and positive evaluations. In addition, via the change and the identification of enviromnental contingencies, involving extrinsic empowerment, the increases of motivation are realized in workplace behaviors such as attendance, selling, promptness, cost reduction, productivity, sales work quality, and customer service (Komaki, 1982). The current employees performance can be nurtured by managing a valid performance evaluation, bonus and reward system (Bretz, et al., 1992). It should be considered that the amount of fringe benefits (or certain payback) and bonuses are varied among well performing and weak-performing employees. The motivation, which is the result of employees encouragement by cash or other things such as bonuses for example car loan and payment increase, will lead to employees productivity and better perfonnance.

9 Therefore, it is important to recognize which rewarding strategies lead to higher employees productivity and to enhance their performance.

1.9 Key Operational Terms Reward refers to financing; concept that returns or yield from an investment is propo1iional to risk. Thus, investors will demand a greater reward where the risk of loss is greater. And incentive plans; Scheme to support and reinforce desirable behavoir, such as wage rate that increases with the productivity of the worker. Business refers to an organisation involved in the trade of goods, services, or both to consumers. Business enterprises; In general, any endeavor where the primary motive is profit and not mere empowerment for oneself and others. It is the activity of providing goods and services involving financial and commercial and industrial aspects Performance according to this study comprises the actnal output or results of an organization as measured against its intended outputs (or goals and objectives). The work related activities expected of an employee and how well those activities were executed. Many business personnel directors assess the job performance of each employee on an annual or quarterly basis in order to help them identify suggested areas for improvement. Work performance assesses whether a person performs a job well. Job performance, studied academically as paii of industrial and organisational psychology (the branch of psychology that deals with the workplace), also forms a paii of human resources management. Performance is an imp01iant criterion for organizational outcomes and success. Intrinsic reward refers to an outcome that gives an individual personal satisfaction such as that derived from a job well done. Extrinsic reward refers to a reward, such as food, that is tangible and visible to others. A bonus is usually a lump sum compensation given to an employee for work achievements that is paid in addition to salary or wages.

10 CHAPTER TWO LITERATURE REVIEW

2.0 Introduction These chapters introduced and focus on the theoretical review, conceptual framework and review of related literature.

2.1 Theoretical review Herzberg added some important factors to the models provided by Maslow and Porter. In other words, he altered these theories, and then criticized it; and it has been one of the most important and best motivational theories till now. Therefore, in this study, the Herzberg's theory is used because it is broadly known as one of the major theories on motivation factors, which has both practical and theoretical consequences. In his theory, Fredrick Herzrberg mentioned that employees would not be satisfied just by meeting their lower-level needs. Indeed, gaining basic benefits and salaries, and having an appropriate working environment would not essentially make the staffs delighted and happy with their jobs. Therefore, focusing on his theory, employees attempt to find higher needs level fulfillment referring to their psychological minds like appreciation, improvement, and higher accountability (Bowen, et al., 2004). This theory also implies to job improvement and makes an attempt to plan the tasks to develop opportunities for personal success, individual growth and recognition, and challenge (Herzberg, 1966). Herzbergs two-factor theory includes hygiene and motivation factors which have been shown to be effective on the improvement of employees performance. According to the theorist, motivation factors are required to motivate the workers to do their jobs as well as possible, with their highest ability levels. On the other side, hygiene factors are necessary to ensure that the staff is not unhappy and dissatisfied. In other words, the author discussed that the factors leading to job satisfaction (and motivation) were dissimilar to those leading to job dissatisfaction. Therefore, he enhanced the motivation-hygiene theory to clarify these results.

He named the satisfier factors as motivators, and called the dissatisfier as the hygiene ones. The reason of applying the "hygiene" name is that these factors are maintenance ones which are necessary to set apart from dissatisfaction; and they do not give 11 satisfaction themselves. Herzberg theorized that different people have different views to tasks. For instance, when someone does his/her job on necessity, that type of action can head to movement. On the other hand, if a person decides on working since he/she wants it, instead of a need, one can be confirmed to be motivated. Additionally, when a staff wants to do a task, a high probability exists that the performance could be accomplished in the best way and it would not be well-done by the one who performs and acts because of the need (Herzberg, 1968).

The reason for separating hygiene and motivation factors is that Herzberg found that the factors leading to satisfaction are different from those which cause dissatisfaction; and these two feelings cannot simply be investigated as opposites of the other. Furthermore, Herzberg mentioned that two different perspectives of human needs are available. First, there are physiological requirements which can be satisfied by financial elements and money (for example, to buy some necessities like shelter and food or spending money on healthcare). Second, there are some kinds of psychological needs to grow and improve; and the need is satisfied by behaviors which cause the person's growth. These factors determine the dissatisfaction and satisfaction factors which are not separate from the work, but are rather external factors. Herzberg also believed that the punishment, threat or the providing stimulus process can force people to do something; however, they have short-te1m impacts since the motivating factors, which determine if there is satisfaction or not, are intrinsic to the job; and do not arise from bond incentives and encouragement. Overall, if managers pay attention to the hygiene-motivation theory and apply it, they will be able to provide hygiene factors to set apart the employee from dissatisfaction. Furthermore, they can provide intrinsic factors to the work to make the employees satisfied in their job positions (Bowen, 2000). In addition, to conclude the discussion over the theory, Herzberg believed that job improvement is needed for intrinsic motivation as a part of a continuous management process. According to him: The job must be challenging enough to nurture the full employee s capabilities; Staffs that hide growing ability levels should be provided increasing responsibility levels; and If the task to bring out the whole employees potentials is not designed, then the company should note the automating of the task or

12 replacing the person with someone who has a lower skill level. In this case, if other people cannot be utilized fully, then a motivation problem exists in the process.

People can recognize how much their company values them, and are also able to evaluate their own self-worth. In this case, Herzberg believes that his studied factors are the major driving satisfaction force and they help to encourage the employee to work better and harder, because of the motivation (Sekaran, 2004). Simply put, motivators can increase the inner happiness. On the other side, hygiene factors can just enhance the external happiness. In this regard, some studies against that of Herzberg's theory argued that the two-factor conclusion is observed since it is normal for individuals to recognize satisfaction and blame dissatisfaction on external factors. Additionally, job satisfaction does not necessarily involve a high motivation or productivity level. Overall, Herzberg's theory has been generally applied in spite of its caveats. Indeed, its long-lasting value is that it finds that the real motivation develops from within a person (Bono et al., 2003).

2.2 REWARD 2.2.1 Empowerment Empowerment encompasses a number of qualities including confidence, autonomy, and access to authority and influence. In short, empowerment is the opposite of micromanagement. Empowerment is beneficial for employees and employers alike: It leads to more satisfied and motivated employees and higher levels of productivity and innovation. This, in turn, helps economic growth and government tax revenues. Employees' sense of workplace empowerment varies significantly across the labor force, but there is a universal lack of empowerment among the unemployed. Before workers can become empowered, they must first have a job. Government assistance can prevent the unemployed from living in poverty, but it cannot embolden them in the same way as a productive and meaningful job. With nearly IO million workers unemployed and another 8 million having left the labor force since the staii of the recession, lack of employment is a significant bai-rier to workplace empowe1ment. Declines in employment are typically matched with equal rebounds in employment. On average, it has taken 25 months for employment to return to its pre-recession level. In the current recovery, however, it took three times that amount, or 76 months. According to

13 the April 2014 survey by the National Federation of Independent Business, half of small and independent businesses say that it is a bad time to expand facilities while only eight percent say it is a good time When asked to cite their single biggest problem, taxes were the most frequently cited concern, followed by government requirements and red tape. Obamacare is one policy that has contributed to higher taxes and regulations. According to recent Federal Reserve Beige Books, "Contacts remain concerned about general macroeconomic conditions and uncertainty surrounding healthcare reform," and "many contacts indicated that non-wage labor costs increased because of higher healthcare premiums." Other unnecessary regulations are significantly driving up employers' costs and reducing employment. For example, Section 404 of the Sarbanes-Oxley Act requires publicly traded firms to have an annual external audit of their financial controls. This regulation provides little benefit to shareholders, but it costs an average 0.5 percent of revenues ($ 1.5 million a year) for small to medium-sized companies. Nationally, Section 404 costs the economy $35 billion a year. Increased costs and regulations make it harder for businesses to start up and expand. A recent study by the Brookings Institute noted a sharp decline in business dynamism and entrepreneurship over the past decades. According to the report, The authors of the report noted that mounting government regulations could be contributing to the decline in dynamism and entrepreneurship as it has become extremely costly for younger and smaller firms to comply with ever-growing regulations. Not only is it difficult for businesses to expand and hire more workers, but it has become easier for workers to not work. The availability of generous government transfer programs and a permissive disability insurance program make it possible for able-bodied individuals to maintain a comfo1iable standard of living without working. Less work means lower economic output. This creates a double whammy for the federal budget; lower output leads to fewer tax revenues, and transfer payments to low-income, unemployed, and disabled workers drive up government spending. Policymakers need to relieve employers and entrepreneurs of the red tape and economic burdens that are holding them back from investing, expanding, and hiring more workers. On the employee side, policymakers need to create an environment that encourages and rewards work while making it more difficult for able-bodied individuals to choose not to

14 work. Reform of the disability insurance program to reduce abuse of the program and preserve benefits for the trnly disabled should be the first step.

According to Dewhurst et al. (2010), there are other means to reward employees that do not just focus on financial compensation. Some of these include the praise that employees are able to acquire from their managers, the opportunity to take on important projects or tasks, and even leadership attention. The latter refers to the treatment of the employees by their managers in such a manner that the employees are also considered to be as leaders as well (Sekaran, 2004). These three motivators constantly appear on most research studies and are excellent means to encourage the employee to work harder and produce better performance results. This is largely due to the fact that the well-rewarded employee feels tl1at he/she is being valued by the company that he/she is working for (Ca1wher, et al., 2006). They are also encouraged to work harder and better if they are aware that their well-being is taken seriously by their employers, and that their career and self development are also being honed and taken care of by their company (Scott, et al., 1994). Thus, it is a constant and continuous challenge for companies to really work on understanding what factors contribute to improved satisfaction levels of their employees. Aside from working on satisfying their customers, it is crncial that companies also work on identifying the motivators that boost the performance of their workforce, and in so doing, make appropriate and sufficient offers for their employees (Bono et al., 2003).

According to La Belle (2005), different individuals have different perceptions of rewards. For instance, some individuals may consider cash as a sufficient and adequate reward for their efforts at work, while others may consider holidays and material incentives (such as a car) as more rewarding in exchange for their work. Others still, may consider a shift in the treatment that they get from their leaders to be a more rewarding experience. For instance, some employees consider being recognized by their leader as more rewarding than financial incentives (Blau, et al., 2007).

Among Herzberg's contributions to the management of employee motivation would be the' Two factor theory' which is subcategorized into 'hygiene factors'or 'motivators.' The 'Two factor theory' is basically about the attitudes of employees towards their job,

15 which can either lead to satisfaction or dissatisfaction. One of the subcategories (the hygiene factors) include the following-1) working conditions, 2) the level and the quality of supervision, 3) the company policy and administration, 4) interpersonal relations, 5) job security, and 6) salary. Based on Herzberg's theory, these hygiene factors do not necessarily motivate the employee to produce positive developments in work performance (CmTaher, et al., 2006). However, when there is a lack of, or excess of any one of these factors, there is a highly likely chance that the employee may be dissatisfied. Thus, the concept of Herzberg' s Two factor theory is one that focuses on understanding the acceptable hygiene factors that prevent the employee from being dissatisfied. It must be noted though that hygiene factors do not do much to motivate the employee and the management of companies has to seek other ways in order to achieve this (Blau, et al., 2007). In summary, the first step toward workplace empowerment is for individuals to have a workplace in which they can become empowered. Policymakers should consider cost­ benefit analysis of existing regulations and red tape, create greater certainty for businesses through fiscal discipline, and reform programs that discourage work among able-bodied individuals. Second, labor laws should be brought up to date, giving employees an individual voice on the job and the opportunity to be paid according to their work. Third, high marginal tax rates should be reduced and programs that impose disincentives for work should be reformed. Fourth, states should ease restrictions and requirements on licensure laws where evidence shows such laws to be unnecessary and harmful. Fifth, employers should consider allowing employees to choose between employer-provided benefits such as health insurance and cash or other benefits. Sixth, policymakers should look to the successes of less regulated businesses and entrepreneurs as ways to empower existing employers and employees, and should avoid micromanaging employers in ways that will reduce employee empowerment.

2.2.3 Reward and Job satisfaction

The Maslow's work (Maslow 1954) was very influential in shaping and also developing different concepts related to organizational behavior for example job satisfaction. According to this theory, some experts have worked on job satisfaction from a view of desire fulfillment (Kuhlen 1963; Worf 1970). But anyways, during the past twenty years,

16 this method is not popular any more and most of the experts are focusing on the cognition process instead of the needs which are underlain. So in opposite to traditional perspective, the job satisfaction is known as all of the affection of a person about his or her related job. (Gruneberg 1976). This perspective was mainly developed according to process of cognition that during the years have led to attitudinal view and now is the leader in the job satisfaction study. (Spector 1997). The other traditional though was defined according to factor theory from the job satisfaction (Herzberg 1959) and stated that both dissatisfaction and satisfaction are two totally separated aspects (Bernard, 2005).

The motivators which are the intrinsic elements that is to say elements that are from nature and also the job experience were known as satisfiers and contained achievement, recognition, the nature of work and the responsibility level (Scott, et al., l 994). On the other side the hygiene factors or extrinsic elements were known as the dissatisfactory of job which are rnles of firm, policies, regulations, supervision, hierarchy, workplace context, salary and also interpersonal relation. Herzberg and Mausner's Motivation - hygiene theory was a very important factor for influencing the research of job satisfaction nature and was a key factor in measures development in order to evaluate the job satisfaction (Bernard, 2005).

The job satisfaction was known and evaluated as an international construct and also a term with different dimensions or faces (Price 1997). This research uses an international method instead of an approach which is faceted and then defines job satisfaction as a level of positive feelings related to the role of a work (Locke 1976; Kallerberg 1977). By proving job satisfaction for the employees it was understood that it is relevant to many results in organization for instance improving the customer satisfaction (Ryan, et al. 1996), decrease of rates in turnover (Mobley 1977), response rate increase (Ryan, et al. 1996) and better performance in firm (Launderweerd & Boumans 1988), it is clear that the job satisfaction term has got so many attention. The expe1is have tried to recognize different job satisfaction constituents and evaluate the related importance of them and analyze what impacts these aspects and also the productivity of workers (Hong Lu, et al. 2005). Some of the outcomes gathered from qualitative and quantitative researches have been mentioned in the past studies of job satisfaction source between staff. Anyways, 17 most of them have been developed inside the healthcare area and nursing with minimum attention on finance service.(Timonthy, et al. 2001).

Also experts noted that the suggested rewards from the firms might strongly affect the staffs behavior related to the job and the organization that they work in (Lincoln & Kallerberg 1990). According to Herzberg & Mausner's two factor theory, the rewards can be both intrinsic and extrinsic so affecting the satisfaction level of the employees experience related to their jobs will happen. (Hong Lu, et al. 2005) Therefore related to this, it is crucial to define the rewards which are either extrinsic or intrinsic. The intrinsic ones are natured from job and are available in job for example challenge variety and the autonomy as well (Schutt, R. 2006). The extrinsic ones on the other side are fringe and pay advantages, advancement and promotion opportunity inside the firm, workplace environment and the social aspect. Also the studies revealed that when intrinsic reward is considered as more salient related to job involvement (Driscoll & Randall 1999), the extrinsic rewards satisfaction will result in ongoing commitment for the firm and lead to more customer satisfaction and also their loyalty (O'Reilly, et al. 1991).

2.2.3 Rewarding and Performance

In the real world, it is very impo1iant to reward high performance levels because this motivates and controls the performance (Schutt, 2006). Indeed, reward strategies confirm the level and the merge of non-financial and financial rewards required to attract, maintain and inspire skillful competent, and capable employees to make the organization prosperous. Although some of these benefits are financial forms, such as options for salary sacrificing and competitive pay, there are a lot of non-financial benefits which firms can provide its employees. They are, in fact, some factors that may motivate the staff. Therefore, for a manager, it is necessary to know what really inspires employees and perhaps they are not the same things that stimulate other employees (Bernard, 2005).

The obvious reward practice should be carried out by the simplification of the connection between the given reward and the additional effort (Porter et al., 1975). There also have been cautions about the rewards ways managed within the reward system. In this regard, Porter et al. (1975) suggested that to achieve positive motivational prope1iies, the 18 organizations distributed incentive rewards have to be performance-dependent. Indeed, managers who attempt to run a fair rewarding system seem to be more prosperous in performance rather than those who reward in an unfair manner (Jnssen, 2001). In this case, although the necessity of being fair in rewarding others seems to be understood clearly from a theoretical view, bias in the performance evaluations has often been reported in different economic studies (Prendergast, 1999). Thus, clear fairness is needed to manage an optimistic association with the reward victory in an organization.

The controllability concept is defined as the amount of the employees capability to influence on or control the outcome (Baker, 2002). The effect of a certain quantity or an attempt on the quantity of employees performance has to vary at the lowest amount as possible to manage such a control over ones reward. Therefore, it can be assumed that the stronger level of the obvious controllability over the reward practice concludes higher degree of the reward effectiveness towards realizing the employees performance at a higher level (Santhaparaj et al., 2005). Fmihermore, the reward system should be connected to stimulate and motivate employees' performance; and this depends on the company's strategy, attraction and retaining knowledgeable employees, abilities, and required skills, and to manage a helpful structure and culture (Galbraith, 1973). Thus, the rewarding process itself has to affect the performance of employees in the affirmative manner as is expected by managers. In this regard, the performance measurement can be used hypothetically to know more training needs, promotions for candidates, management problems, dismissals, and job rotation (Bretz et al., 1992).

On the effects of motives, in his research, Jibowo (1977) adopted the same procedure to Herzberg (1959) and provided some support on the impact of motivators on job performance. In another study conducted by Centres and Bugental (1970), the authors also managed their study based on Herzbergs two -factor theory on motivation, by dividing job variables to two categories: motivators and hygiene factors. They discovered that at higher professional levels, intrinsic (non-financial) job factors or motivators were more valued, while extrinsic job or hygiene factors (financial ones) were valued more at lower professional levels. Therefore, they concluded that a firm that fulfills both extrinsic and intrinsic rewards could be the best one. Additionally, Bergum and Lehr's (1964), investigated the influence of financial motivators and on the performance; and they 19 showed that people who received individual motivation, acted better than those who were in the control system. In another related study, Daniel and Caryl (I 981) carried out a study based on the exploration of the investment models ability to forecast job promise and obligation as well as job satisfaction (Sansone et al., 2000). The study results showed that job satisfaction was best foreseen by the job reward; and job commitment was best forecasted by a combination of cost values, rewards, and the amount of investment. Indeed, the extrinsic and intrinsic rewards motivate the employees; and this motivation leads to realize a higher performance level. In addition, the study showed that there was no significant difference between job satisfaction motivational levels along various workers categories in different firms (Assan, 1982).

Furthermore, Egwuridi (1981) did a research on the motivation of Nigerian workers and applied a sample of workers at both low and high occupational levels. At the end of the study, the hypothesis was not completed and verified which tested iflow-income workers would be intrinsically motivated, and also there was not any proof to verify the hypothesis that higher-paid workers would place a greater value on intrinsic job­ motivators than low-paid employees. This study obviously confirms the amount of worth placed on extrinsic job factors. In this case, the poor compensation depends on the profits made by firms (Akerele, 1991). On the other hand, wage and salary difference between low and high income earners can affect cause a low morale, low productivity, and lack of commitment (Nwachukwu, 1994).

Based on all the current studies and by considering the relationships between all of the findings, one can normally find out that a valid compensation package, which includes financial rewards, causes higher efficiency and performance for the organization. This compensation package includes both intrinsic and extrinsic rewards (Ryan, et al., 1996) Extrinsic rewards consists of external and tangible rewards to the performed efforts and employees tasks, it can be in terms of promotions, salary/pay, bonuses, incentives, job security, etc. Overall, the highly-involved employees who are necessarily more oriented to their jobs depend more on intrinsic rewards than extrinsic ones (Wood, 1974).

One of the main issues in this regard is the degree of performance difference based on either intrinsic or extrinsic rewards which persuade the researchers to take into 20 consideration the discussion on the antecedents of associating rewards to performance. Employees motivation at work is the centre point of the organizational behavior. Motivation in the workplace and other relevant contexts is typically defined as being extrinsic or intrinsic, basically (Sansone & Harackiewicz, 2000). Extrinsic behavioral contingencies are significant elements to motivate behavior. Additionally, each motivation type ( extrinsic and intrinsic) has its exclusive system; and when both meet, there is conflict. This conflict is based on Deci et al. (1999) statement that extrinsic (tangible) rewards have a negative influence on intrinsic rewarding criteria. However, Eisenberger et al. (1999) strongly disagreed with the conclusions and recommendations by Deci et al. as they thought them to be problematic and more practical research was needed in their minds(Bergmann, et al., 2002).

Some psychologists introduced the intrinsic needs first, and then other management articles developed the important differences between intrinsic motivations as a theoretical combination to inhabit within people and motivating tasks. For example, Herzberg (1966) believed that tasks are intrinsically inspiring as they are identified by key motivators like accountability, achievement, challenge, advancement opportunity, and diversity. Along with Herzberg as a pioneer, others identified task variety, task significance, task identity, task autonomy and feedback as key tasks typical of generating internal stimulation (Hackman and Oldham, 1976).

Additionally, recently in the psychology articles, intrinsically motivated behavior is assumed to be obtained from and to satisfy innate mental needs like needs for independence and capability (Deci et al., 1996). In this regard and according to Deci (1980), peoples perceptions (opposed to external) are controlled to satisfy these needs and includes the basic specifications of differentiated extrinsically motivated behavior from intrinsically motivated behavior (Bergmann, et al., 2002).

On the other hand, the intrinsic motivation was developed singly and was researched after the behaviorists belief of extrinsic probabilities; but when these two meet, they conflict with each other. Deci (1971) argued, based on his research results, that not only the strengthened extrinsic is not required for inspiring, but also those tangible rewards actually challenge the intrinsic motivation of the behavior. Indeed, Deci developed his 21 findings focusing on the cognitive assessment theory (1980), which implies that the effect of extrinsic rewards on motivation is dependent on the receivers comprehension of the rewards (Ryan, et al., 2000). The author also borrowed from the self-awareness theory (Bern, 1967), which mentions that people study their own behavior, make attributions or inferences about their behaviors reasons, and bring up connection and treatment in upcoming behaviors that are consistent with the trait. In this regard, according to the high validation effect and self-esteem theory (Lepper et al., 1973), when persons attribute their treatments to external rewards, they decrease interest as behaviors reason; and here, the intrinsic motivation is at the lower level (Ryan, et al., 2000). On the other hand, extrinsic rewards, which are highly dependent rewards, are mentioned to be important to people and are probable to cause external attributions, which indicate perceptions that are responding to environmental control, rather than intrinsic motivation. Thus, employees perceptions, instead of the external control, and the characteristics of the employees motivation form two DV s in this study by distinguishing extrinsic from intrinsic motivation (Bartol, et al., 2002).

In this regard, Deci et al. (1999) from a meta-analysis concluded that, finally it is clear that the accepted reality of the discouragement effect is a reality. In addition, Deci and his peers declared that the conclusions by their literature are strong enough: completion­ contingent and engagement-contingent rewards have a striking and dependable influence on intrinsic motivation (Eisenberger et al., 2001 ). This finding has been extended to the management world, while some researchers argued strongly on the other side of the extrinsic rewards use (Kohn, 1996). However, in spite of the clear characteristics of these claims, the question still exists about the strength and consistency of the undermining effect. In this case, some theoretical views and studies have maintained that the effects of intrinsic and extrinsic rewards are not in association, but they are generally additive (Mawhinney, 1990; Pmier & Lawler, 1968; Staw, 1977).

Furthermore, a lot of methodological criticisms and revisions on the original Dec is information have been provided over the years (Mawhinney, 1990). For instance, the negative impact of extrinsic rewards are shown to be more powerful in kids than college students (Deci et al., 1999b ); and this is another conclusive step to working adults.

22 Additionally, many studies related to the recent meta-analysis (Deci et al., 1999) applied just schemes in which the reward contingency was maintained and was no more in effect (Bono, et al.,2003 ).

However, important work tasks are usually done repeatedly; what matters from a practical view is if reward effects insist and whether the impacts are kept over an interval after the withdrawal (Eisenberger et al., l 999). Deci critically mentions that compared with Iaboratorial studies, a few studies have found positive or ilTelevant co1Telations between intrinsic and extrinsic rewards (Eisenberger & Cameron, 1996). In this case, the earned rewards mean that people are no longer under a high controlled workplace, and controlling is achieved over peoples efficiency. Thus, extrinsic rewards must enhance supposed self-control and independence (Eisenberger et al., l 999). Relevantly, the workplace performance-pay merits can moderate pessimistic influences of extrinsic rewards; which reduce intrinsic motivation just when they are unsuitable, related, and out of the individual's controls (Staw, 1976).

There are many studies which investigated the relationship between rewards and employees motivation; so, a lot of results exist about the relationship between them. In order to maximize the performance of workers, the employers/managers must develop some policies and techniques, and provide a system for these processes and select the rewards which stimulate the employees to satisfy them (Dewhurst, Met al., 2010). The pay is a reward which has been shown to have a direct association with reward strategies and efficiency, depending on the firm's size (Rotundo, et al., 2002). Indeed, in the cmTent competitive market environment, it is required to determine a logical balance between the employee commitment and organizational performance (Bishop, 1987).

There are some individual qualifications that affect the employees performance such as perceptive styles (Scott and Bruce, 1994), attitudes (Williams, 2004), demographic characteristics like educational background, age, and R&D experience (Roberts, 1991; Rothwell, 1992). Organizational priorities including the collaboration of external supplier, spending on R&D (Hadijimanolis, 2000), leader's authority (Hage and Dewar, 1973), and system of rewards (Eisenberger and Cameron, 1996; Janssen, 2000; Mumford,

23 2000) are commonly mentioned to be factors that impact individuals innovative performance (Rothwell, 1992). In fact, a professional reward system is a valid inspiring element; however, an inappropriate reward system can be ineffective factors for the employees (Fairbank, et al.,. 2001) .. Indeed, both extrinsic and intrinsic rewards motivate the workers and cause higher levels of productivity (Reio & Callahan, 2004).Many organizations have realized an enormous progress by matching with their business strategies via appreciation programs for employees and a valid balanced reward (Dewhurst, M et al., 2010). In addition, motivating the employees efficiency can be improved by providing a prosperous appreciation whose antecedents will finally improve the organizations performance(Baker, 2002).

In fact, the whole success of a firm is raised from how an organization maintains its employees motivated and how they evaluate employees performance in running job compensation (Roberts, 2005). Sometimes managers consider the extrinsic rewards more; however, intrinsic ones are also striking to motivate the employees. Psychological or intangible rewards such as recognition and appreciation play an important role in stimulating employees and increasing their performance (Deeprose, 1994). Indeed, the employees commitment is on recognition and rewards (Andrew, 2004). In addition, the powerful existence and success of the organizations is defined through how they make their working people more satisfied (Lawler, 2003). On the other hand, the intrinsic rewards happen during managing the job itself like satisfaction from finishing a task in an effective manner, being appreciated by the boss, independence, etc.; however, extrinsic ones are tangible rewards such as bonuses, pay, promotions, fringe benefits, etc. (Ajila and Abiola, 2004). Relevantly, a direct relationship has been verified between job unce1iainty and turnover; and a small pessimistic association has been confirmed between job insecurity and organizational commitment (Filipkowski and Johnson, 2008). In addition, there is a significant and direct association between extrinsic rewards and motivation of employees; even though, it is demonstrated that the fitms do not pay sufficient budget for financial rewards (Hafiza et al., 2011).

Furthermore, it is concluded that a direct and positive link exists between rewards and employees motivation. This means that reward is directly related to employees

24 motivation (Farooq & Imran Ullah, 2010). In this regard, when there is a change in the rewarding offer, the work motivation of employees will change too. And while the rewarding ways get improved, the employees motivation will also get better. Additionally, there are impo1iant effects from both nonfinancial and financial compensations to the performance of employees (Arik et al., 2011 ). Indeed, when an employee receives a reward, it is a valid way of motivating him since the reward causes satisfaction for the employees; and it has straight effects on the employees performance.

2.2.4 Bonuses A bonus is usually a lump sum compensation given to an employee for work achievements that is paid in addition to salary or wages. Originally intended as an incentive for sales staff, bonuses have now expanded to include all categories of workers at various levels within an organization to motivate them to achieve departmental and company goals. A bonus can also be used to "sweeten the pot" for prospective employees, particularly when the base salary being offered is less than they would like, and referral bonuses are sometimes given to employees who recommend qualified personnel for openings within the company (Reio, et al., 2004).

According to the website salary.com, 2015, employees in approximately one-third of all companies are eligible for bonuses of some kind. "Bonus plans can be invaluable to employees who want to know what they need to do to succeed in a company," it notes. "Bonus plans communicate the values the company stands for and the behaviors it celebrates. The people who get promoted at a company also get the biggest bonuses and the most recognition." (Petcharak, 2002) There are different types of bonus plans. Some are based on the company as a whole meeting specifically-stated objectives; these are referred to as group bonuses (McShane, et al., 2005). Other plans award bonuses based on a worker's or team's perfo1mance and achievements, known as individual incentive or team incentive bonuses (Pergamit et al., 1999). Another option gives employees a certain share of the company profits regardless of their performance as individuals or teams; this is known as current profit sharing (Mumford 2000). Manufacturing teams sometimes share in gains from improvements in production and quality. Spot bonuses usually cash or non-cash awards are also used to reward high achievers in some companies (Nelson, et al., 2000). 25 While cash bonuses are always welcome, employers can show their appreciation to loyal and productive employees in other ways. For example, workers who meet or exceed their goals can be rewarded with extra days off. The advantage of this approach is that the additional paid time off generally does not cost your business as much as a cash bonus. A so-called personal enrichment or growth bonus can offer the advantage of benefiting both the employee and the company (Lee, et al., 1999) .. Let's say you have an employee who has an interest in learning more about marketing and advertising techniques. You agree to pick up the tab for the required courses in return for them sharing their new knowledge once they've completed their studies, possibly in a new (and better-paying) position with your company (Maslow et al., l 990). Increasingly popular prepaid gift cards can also be handed out to deserving employees. You can choose from open loop cards with a network brand that can be spent anywhere the brand is accepted, or closed loop cards that are issued by a specific retailer, service provider or restaurant. Whichever you select, your employees will enjoy receiving and choosing where to redeem them. Keep in mind that bonus plans should be somewhat fluid and may need to be tweaked as circumstances change. Be transparent about your plan and make sure your employees understand the criteria involved. Better yet, solicit their input into how bonuses should be structure. You might be surprised by what matters most to them(Lawler, et al., 1993)

2.2.5 Fringe Benefits Fringe benefits are prope1ty and services whose benefit to employees often outweighs the cost to the employer. Generally, fringe benefits are part of your employees' taxable wages, but there are ce1tain fringe benefits that are excepted from this rule and you can still take a business deduction for their cost. Nontaxable fringe benefits include no­ additional-cost services, qualified employee discounts, working condition fringe benefits, very minimal fringe benefits and qualified transportation fringe benefits. For small business owners, offering fringe benefits that are valuable to employees can improve job satisfaction and help them offer a competitive benefits package. There are a wide variety of fringe benefits that employers can choose to offer and some are even specifically excluded from employees' taxable income. What exactly is a "fringe"

26 benefit? Almost any property or service provided by an employer to an employee as compensation for the employee's performance of services is considered a fringe benefit. For example, fringe benefits include the following items: an employer-provided vehicle, a free or discounted commercial airline flight through your frequent flyer miles , a discount on services or prope1ty, a ticket to a sporting event or other entertaimnent, and a membership in a country club or social club. In general, your employees must pay payroll taxes on the value of any fringe benefits you provide in their income unless the fringe benefits are specifically excluded from income under the federal income tax laws. For example, if you let your sales representatives use a company car for personal purposes, the value of this noncash fringe benefit must be included in the sales representative's wages as part of his compensation. Except for certain fringe benefits subject to special valuation rules, a general valuation rules is used to figure out how much employees include in their income.

Z.3 Work Performance It comprises the actual output or results of an organization as measured against its intended outputs (Dalal et al., 2008). Specialists in many fields are concerned with organizational performance including strategic planners, operations, finance, legal, and organizational development (Chang, et al., 2006). In recent years, many organizations have attempted to manage organizational perfo1mance using the balanced scorecard methodology where performance is tracked and measured in multiple dimensions such as: - financial performance for example shareholder return - customer service - social responsibility for example corporate citizenship, community outreach - employee stewardship. Performance measurement is the use of statistical evidence to determine progress toward specific defined organizational objectives. There are many types of measurements (Chiang, et al., 2009). In school, exams are graded to establish the academic abilities; in sports, time is clocked in split seconds to verify the athletic abilities. Similarly in teams and organizations, there are various tools and measurements to determine how well it performs (Lawler 2000). Gamble, Strickland and Thompson (2007, p. 99) provide a comprehensive method for measuring performance of organizations. How well each company performs is dependent on the strategic plan.

27 Some of the measurements include basic financial ratios such as debt-to-equity ratio and if the levels are an issue with creditworthiness (Andrew et al., 2007)

The daunting task of measuring performance for organizations across industries and eras, declaring the top performers, and finding the common drivers of their success did not occur to anyone until around 1982, when Tom Peters and Bob Waterman got down to work researching and writing In Search of Excellence (Fairbank, et al., 2001). This publishing sensation challenged industrial managers' actions and attitudes, and inspired researchers and scholars to fmiher pursue the theory of high performance the holy grail of any competitive business organisation. This task becomes more complex as corporations diversify into multiple industries (Bono, et al.,2003).

Although the Balanced Scorecard has become very popular, there is no single version of the model that has been universally accepted (KaITiker et al., 2009) .. The diversity and unique requirements of different enterprises suggest that no one-size-fits-all approach will ever do the job. Gamble, Strickland and Thompson (2007, p.31) list ten financial objectives and nine strategic objectives involved with a balanced scorecard (Andrew et al., 2007).

John P. Campbell (2013) describes job performance as an individual-level variable, or something a single person does. This differentiates it from more encompassing constructs such as organizational performance or national performance, which are higher-level variables (Alam, et al., 2005) The traditional control-oriented performance measurement system in the industrial era is losing its relevance in today's fast changing environment where organisations are re­ shaped into flat multi-functional hierarchies. Performance measurement will get tougher with globalisation and increasing complexity of organisations' business models, teams' roles and responsibilities. Diversity of organizations and professionals. A huge variety of organisations exist today (Latham, et al., 2006). For example, there are government, education, financial services, manufacturing, retail, non-profit, food and beverage. Then, there are sub-industries (Kosteas. 2009). In financial services, we can break down into the banks, insurance, exchange and so on (Clark, 2001 ). And in each, we can for example

28 break down a bank into deposit, loan, credit card, investment departments. In deposit department, we have savings, cun-ent and fixed accounts. This break down goes on until we have an individual that performs a task that is unique (Latham, et al., 2006). If the bank example has 10,000 staff, are we going to have 10,000 different performance measurements? It will be a challenge for an organisation to keep track of the huge diversity of skilled professionals and ensure alignment to its mission and values (Cote, et al., 2006). Intangible and non-financial measurements. Traditionally, accountants play a major role in measuring an organization's success. Unfortunately, annual reports do not allow managers to monitor the progress to build capabilities and acquire the intangible assets needed for future growth (Kohn, 1993). Non-financial measurements will be required to link a company's long term strategy with its short term actions (Cote, et al., 2006)

2.3.1 Financial performance The level of perfonnance of a business over a specified period of time, expressed in terms of overall profits and losses during that time. Evaluating the financial performance of a business allows decision-makers to judge the results of business strategies and activities in objectives monetary terms. A subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. This term is also used as a general measure of a firm's overall financial health over a given period of time, and can be used to compare similar firms across the same industry or to compare industries or sectors in aggregation (Solomon, 2010) There are many different ways to measure financial performance, but all measures should be taken in aggregation (Dall, et al., 2004) .. Line items such as revenue from operations, operating income or cash flow from operations can be used, as well as total unit sales. Furthermore, the analyst or investor may wish to look deeper into financial statements and seek out margin growth rates or any declining debt (Dall, et al., 2004).

2.3.2 Customer service Customer service is the provision of service to customer before, during and after a purchase. Accordingly it may vary by product, service, industry and individual customer. The perception of success of such interactions is dependent on employees "who can

29 adjust themselves to the personality of the guest", according to Micah Solomon. Customer service is also often referred to when describing the culture ofthe organization. It concerns the priority an organization assigns to customer service relative to components such as product innovation and pricing. In this sense, an organization that values good customer service may spend more money in training employees than the average organization, or may proactively interview customers for feedback.

Customer service may be provided by a person for example sales and service representative), or by automated means. Examples of automated means are internet sites. An advantage with automated means is an increased ability to provide service 24-hours a day, which can, at least, be a complement to customer service by persons. Another example of automated customer service is by touch-tone Phone, which usually involves a main menu, and the use of the keypad as options that is to say "Press I for English, Press 2 for Spanish", etc.However, in the Internet era, a challenge has been to maintain and/or enhance the personal experience while making use of the efficiencies of online commerce. "Online customers are literally invisible to you (and you to them), so it's easy to shortchange them emotionally. But this lack of visual and tactile presence makes it even more crucial to create a sense of personal, human-to-human connection in the online arena (Solomon, 2010)

A challenge in working with customer service is to ensure that you have focused your attention on the right key areas, measured by the right Key performance indicators There is no challenge to come up with a lot of meaningful KPis, but the challenge is to select a few which reflects your overall strategy. In addition to reflecting your strategy it should also enable staff to limit their focus to the areas that really matter. The focus must be of those KPis, which will deliver the most value to the overall objective, e.g. cost saving, service improving etc. It must also be done in such a way that staff sincerely believe that they can make a difference with the effort (Solomon, 20 I 0)

2.3.3 Social responsibility Corporate social responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate

30 social performance, is a form of corporate self-regulation integrated into a business model. Ideally, CSR policy would function as a built-in, self-regulating mechanism whereby business would monitor and ensure its adherence to law, ethical standards, and international norms. Business would embrace responsibility for the impact of their activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, business would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless oflegality. Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making, and the honoring of a triple bottom line: People, Planet, Profit.

The practice of CSR is subject to much debate and criticism. Proponents argue that there is a strong business case for CSR, in that corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short-term profits. Critics argue that CSR distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window-dressing; others yet argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. Corporate Social Responsibility has been redefined throughout the years. However, it essentially is titled to aid to an organization's mission as well as a guide to what the company stands for and will uphold to its consumers.

Development Business ethics is one of the forms of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. In the increasingly conscience-focused marketplaces of the 21st century, the demand for more ethical business processes and actions (known as ethicism) is increasing. Simultaneously, pressure is applied on industry to improve business ethics through new public initiatives and laws. Critics of CSR as well as proponents debate a number of concerns related to it. These include CSR's relationship to the fundamental purpose and nature of business and questionable motives for engaging in CSR, including concerns about insincerity and hypocrisy. Corporate Social Responsibility (CSR) is about businesses and other organizations going beyond the legal obligations to manage the impact they have on the environment and society. In particular, this could include how organizations interact with

31 their employees, suppliers, customers and the communities in which they operate, as well as the extent they attempt to protect the environment. (The Institute of Directors, UK, 2002) Nowadays with increasing calls for transparency in reporting, companies are supposed to state how they have been socially responsible in their business practices. Those found wanting will find it harder to obtain investment funds, customers might boycott them, and they will be marginalised eventually. For example, as more and more companies become multinational, so they are grappling with ways to be sensitive to the cultures of the countries in which they operate, while holding firm to their core corporate codes of conduct. As the pressures mount on business, so the quality of corporate reporting in this area is rising fast, while the establishment of new standards is becoming increasingly sophisticated. The evolution of all these developments will impact the ways in which firms do business and much more - including the prospects for global warming, and the social and economic development of most nations.

2.3.4 Employee stewardship and Communication Communication success tips can give your career a boost by helping you network and build rapport with other people in the workplace. Many individuals realize that having a job does not have to seem like a life sentence. Moving up the ladder in any business is a possibility and by applying good communication skills, you can develop your career further and achieve your goals. Here are some communication success tips that anyone can apply in the workplace for tangible, fast results. Employers spend millions of dollars to offer a benefit and sometimes a surprisingly small amount to ensure that employees understand and appreciate it. Communications what you say, how you say it, when you say it, who you say it to can make a world of difference in how employees or members feel and think about their benefits, workplace, and employer. Communicating difficult or sensitive changes. Clients often seek out the experience and expertise of Milliman's growing communication consulting team when they are making difficult decisions that result in a negative impact (for example, benefits reduction) or that present additional challenges for employees (such as a new tool or system). We help employers explain why they are making changes without obscuring the truth.Effective communication matters even when an employer is improving its benefits package. One

32 client without our help introduced an improvement to their benefits plan. Years later, many employees still think negatively about the change because the communication wasn't clear. Good communication is especially impo1iant when there's a lack of trust in such an environment, employees are more likely to create their own version of what happened.

Sometimes a client will change medical carriers and the employer wants to say they are not changing the benefits. But different carriers administer plans differently with real­ world consequences for employees. We know the questions to ask and can help employers figure out all the smaller but important changes that may affect their employees, or, if those details are unknown, advise them on how to best communicate with employees that there may be some differences between the two plans. In addition, what may seem like a minor change to an employer can be perceived as a major change by the employee. For instance, when you're conve1iing a vacation/sick leave program to a PTO program, it's important to communicate all transition details. Is it clear what's happening with the sick bank an employee has saved up? In such a situation, it's best to create a personalized piece: Here's what you have and where it goes.

Motivating employees to act (or not act) can be one of the most challenging tasks for an employer. For instance, how do you motivate someone to do something they already know they should do like eat right and exercise? In focus groups conducted for a client, we learned that the biggest motivating factor to getting and staying healthy for this particular group was that employees wanted to be around for their family, to see their grandkids grow up. This insight guided the team in positioning and communicating the employer's wellness program. Once you understand what motivates employees, it's easier to change their actions. Announcing significant changes beyond benefits; Whenever an organization is undergoing change of any kind, the effectiveness of communication can greatly influence how the change is perceived by employees and how quickly they adapt to the new normal. While a good po1iion of Milliman's communication work is in the benefits arena, we also help organizations develop an appropriate strategy and implement

33 communication campaigns during a major change, such as mergers and acquisitions, or when trying to get key stakeholders to use a new system.

Conducting employee research means really listening to employees; We enJoy conducting employee research, which can help inform business strategy, policies, practices, and operations. Last year, we worked with a local company that's a supplier to the aerospace industry. This company had doubled its workforce in just a few years, creating a culture clash between older and newer employees. We designed an employee survey, and because the company was seriously committed to hearing what employees had to say, the survey was conducted onsite during working hours. This led to an 88.5% response rate, far above what's typical. The survey was conducted by us to maintain strict objectivity and confidentiality. The results showed leadership exactly what the core issues were. Armed with this knowledge, they were able to define a targeted action plan that addressed both the company's and employees' needs. Measuring success; goals and metrics should sync with the client's business objectives. When we do a new project, we sit down with the employer to find out what they're trying to achieve. For instance, they may want to ensure that five percent of employees enroll in a new high deductible plan. Or they may want to reduce call volume to the HR department. Once the objectives are clear, we can assign specific measures that need to be tracked to evaluate the success at the end of the campaign. Different types of communication call for different success measures. "With benefit changes, you should track participant calls to the call center. If people are confused, you'll hear about it. With wellness programs, you'll need to track benefit claims, absenteeism, and paiiicipation in wellness challenges. Questionnaires, surveys, focus groups, face-to-face interviews all can be used to assess if and how well messages were received and understood.

Multiple channels, different messages; An employee communication strategy may include a wide variety of media, including print publications, email and online newsletters, websites, how-to videos, total compensation rep01is, plan descriptions, posters displayed in the workplace, and in-person meetings. The content and delivery charmels used will depend on the stakeholders' needs. How much do they know about what's going on? Do they have influence over the target audience? What is their role and

34 what are their responsibilities in the process? Are they supportive or resistant to what's happening? These aspects are teased out by a discussion and drive the ultimate strategy. Keeping up with technology and electronic media adds an additional challenge.

2.4 Related Studies Research of emotional intelligence (EI) and job performance shows mixed results: a positive relation has been found in some of the studies, in others there was no relation or an inconsistent one. This led researchers Cote and Miners (2006) to offer a compensatory model between EI and IQ, that posits that the association between EI and job performance becomes more positive as cognitive intelligence decreases, an idea first proposed in the context of academic performance (Petrides, Frederickson, & Furnham, 2004). The results of the former study supported the compensatory model: employees with low IQ get higher task performance and organizational citizenship behavior directed at the organization, the higher their EI (Bono, et al.,2003).

Campbell (1990) also suggested determinants of performance components. Individual differences on performance are a function of three main determinants: declarative knowledge, procedural knowledge and skill, and motivation. Declarative knowledge refers to knowledge about facts, principles, objects, etc. It represents the knowledge of a given task's requirements. For instance, declarative knowledge includes knowledge of principles, facts, ideas, etc. If declarative knowledge is knowing what to do, procedural knowledge and skill is knowing how to do it. For example, procedural knowledge and skill includes cognitive skill, perceptual skill, interpersonal skill, etc (Ajila, 1997)

The third predictor of perfonnance is motivation, which refers to "a combined effect from three choice behaviors-choice to expend eff01i, choice of level of effort to expend, and choice to persist in the expenditure of that level of effo1i" (Campbell, 1990). It reflects the direction, intensity, and persistence of volitional behaviors. Campbell (I 990) emphasized that the only way to discuss motivation as a direct determinant of behavior is as one or more of these choices. Campbell (I 990) also mentioned several performance parameters that may have important implications for the job perf01mance setting and should be investigated by industrial and organizational psychologists (Ajila, et al., 2004).

35 The first one is the distinction between speed and accuracy. This distinction is similar to the one between quantity and quality. Important questions that should be considered include: which is most valued by the organization, maximized speed, maximized accuracy, or some balance between the two? What kind of trade offs should an employee makes? The latter question is important because speed and accuracy for the same task may be independent of one another. The second distinction is between typical and maximum performance. Sackett, Zedeck, and Fogli did a study on supermarket cashiers and found that there was a substantial difference between scores reflecting their typical performance and scores reflecting their maximum performance. This study suggested the distinction between typical and maximum performance. Regular work situations reflect varying levels of motivation which result in typical performance. Special circumstances generate maximum employee motivation which results in maximum performance (Ajzen, 2001).

A meta-analytic review by Joseph and Newman also revealed that both Ability EI and Trait EI tend to predict job performance much better in jobs that require a high degree of emotional labor (where 'emotional labor' was defined as jobs that require the effective display of positive emotion). In contrast, EI shows little relationship to job performance injobs that do not require emotional labor (Khan, et al., 2010). In other words, emotional intelligence tends to predict job performance for emotional jobs only (Akerele,. 1991).

A more recent study suggests that EI is not necessarily a universally positive trait. They found a negative co1Telation between EI and managerial work demands; while under low levels of managerial work demands, they found a negative relationship between EI and teamwork effectiveness (Cote, et al., 2006). An explanation for this may suggest gender differences in EI, as women tend to score higher levels than men (Kasser, et al., 1996). This furthers the idea that job context plays a role in the relationships between EI, teamwork effectiveness, and job performance (Figari, 2000). Another study assessed a possible link between EI and entrepreneurial behaviors and success. In accordance with much of the other findings regar·ding EI and job performance, they found that levels of EI only predicted a small amount of entrepreneurial behavior (KaITiker, et al., 2009).

36 Role conflict can have many different effects on the work-life of an individual as well as their family-life. In a study in Taiwan, it was found that those suffering from role conflict also suffered greatly in their work performance, mainly in the form of lack of motivation. Those with role conflict did not do more than the bare minimum requirements at work. There was also a decline in the ability to assign tasks. Having multiple roles will often lead to job dissatisfaction (Filipkowski, et al., 2008). While there are many de­ motivationaI effects of role conflict on work, there is also a positive. Those undergoing role conflict often had an increase in work creativity (Khan, et al., 2010). Due to multiple roles, there is an increase in flexibility, different sources of information, and these people have many different perspectives to bring to the table (Karriker, et al., 2009).

Experiencing role conflict within the work place may also lead to workplace bullying. When companies undergo organizational change workers often experience either a loss or a gain in areas of a workers job, thus changing the expectations of the worker. Change is often very stressful for workers (Khan, et al., 2010). Workers who might have lost a degree of power may feel like they lost their authority and begin to lash out at other employees by being verbally abusive, purposefully withholding work related items, or sometimes even physically to withhold their status (Alam, et al., 2005)

37 CHAPTER THREE RESEARCH METHODOLOGY 3.0 Introduction This chapter specifically focused on research design, area of the study, population of the study, sampling design, sample size, sources of information, data collection instruments, research procedures, validity and reliability, data analysis and presentation, ethical consideration as well as research limitations.

3.1 Research Design. This study adopted a descriptive correlation design in order to describe the nature of a situation, as it exists at the time of the study and to explore the cause/s of particular phenomena (Creswell, 1994). This approach is also quick and more practical financially it allow for a flexible approach, thus, when important new issues and questions arise during the duration of the study, a further investigation may be allowed. The study opted to use this kind of research considering the goal of the study to obtain first hand data so as to formulate rational and sound conclusions and recommendations for the study.

The quantitative pattern would utilize techniques and measurement that generate numerical or quantifiable data and statistical tools were utilized for analysis (Mugenda and Mugenda, 2003) on the qualitative paii the study employed in order to obtain in­ depth point of view of the respondents (Amin, 2005) According to Saunders, Lewis (2003), the design enables the researcher to carryout in-depth investigation into the subject matter.

.2 Research Population The study comprised of a target population of 150 as a sample size of 109 were used with employees from academic and non-academic staff members (table 3.1). These employees are selected because majority of them engage in the routine work of the institution.

38 3.3 Sample Size While there are several ways of determining sample size, the researcher used, The Slovene' s formula was used to determine the minimum sample size of 109 respondents, as indicated below: n= N 2 l+N (el • Where: n = the required sample size N = Known population size e2 = Margin of error at 0.05 level of significance.

n= 150 n =150 X 0.0025 = 0.37 1+150 (0.05)1

n= 150 1+~0~.3~7---

n= 150 1.37 n =109 respondents

Table 3.1: Sample size distribution Areas of study Sample size Percentage of total Munyonyo Country Resort 45 41.80% Buziga country resort 25 27.90% Olimpia Hotel 29 29.90% Total 109 100.0%

1.3 Sampling Procedure There were interviews on pnor arrangement and questions collected with or without response. Selection of respondents were base on purposive sampling. stratified sampling, as well as simple random sampling. Stratified sampling ensured that all categories of respondents are represented; while simple random sampling gave each respondent a chance of representation and purposive to cater for those participants under the study. Care was taken to ensure that all respondents are represented in the study.

39 Areas are chosen using the simple random sampling technique to ensure that each unit in the entire population under study is represented.

3.4 Instrumentation The data collection instruments were basically self-administered questionnaires, which encompassed both open and close-ended questions that require respondents to answer all the questions to the best of their knowledge and options given to avoid deviating from the variables under study. Interviews were also conducted during data collection from which the researcher had to ask questions and respondents answer from selected sections. The interview were supplemented with document Analysis of various sections or branches and assess their control system.

3.4.1 Interviews; An interview guide were used especially with the management on Rewards and work performance who also led the interviewer to the respective operational. The researcher carried a face-to-face interview with these interviewees. The research was prefe1Ted because it is intended to promote answer to the statement of the problem.

3.4.2 Questionnaires; These are an efficient data collection tools when the researcher knows what is required and how to measure the variable of interest. For this particular case, the researcher personally administered the questionnaires to the targeted respondents. The preference for the questionnaire is upon the fact that they save time especially when handling a large study population scattered geographically and can be stored for future reference. Questionnaires were also give straight forward answers and therefore easy to evaluate

3.4.3 Document Analysis Relevant documents like brochures, records, periodicals, newsletter, personal documents, internet journal, article, financial rep01is, and other research repo1is were consulted for triangulation purposes. This data that was collected addressed the issues concerning, Rewards and work performance and the available literature on these factors, solutions/techniques that they come up with to curb these factors and why they are not helping to curb the situation.

40 3.5 Validity and Reliability The research instruments were given to content expe1is to evaluate the relevance, flow, wording and clarity of questions or items in the instrument, after which a content validity of the questionnaires, the researcher specified the indicators which were relevant to the concept being measured.

Table 3.2: Validity of the data analysis

Items Valid Items Total Items Validity Rewards 25 25 100% Work performance of selected business 25 25 100% enterprises in Makindye division, Kampala, Uganda"

The results in table 2 indicated that 30 items were used (Rewards) and 25 items was used on The work perfo1mance; a case study of selected business enterprises in Makindye division, Kampala, Uganda valid based on the contents of the instrument.

Content Validity Index (CVI) = the number ofrelevant questions The total number of questions A representative sample of indicators from the domain of indicators of the concepts of: Rewards and work performance; a case study of selected business enterprises m Makindye division, Kampala, Uganda were selected referred to as sampling validity.

The researcher based on the supervisor and experts in the study to measure content validity. The supervisor assessed what concept the instrument was trying to measure and asce1iained that the instruments adequately Rewards and work performance.

Although the constructs developed in this study were measured primarily on previously validated measurement items and strongly grounded in the literature, they were modified to suit the Rewards and work performance, to measure and necessary adjustment were made after consultation to ensure that instrument was clear, relevant, specific and logically arranged.

41 3.6 Data Gathering Procedures 3.6.1 Before data gathering I. An introduction letter was secured from the College of Economics and Management to conduct the study after which pennission from Buziga Country Resort, Munyonyo Country Resort and Hotel Olympia was sought. 2. There were actual interviews on appointment and questions collected with or without response. Permission to conduct the research was upon approval of the Repo1i. 3. The researcher was oriented and brief his research assistants on the sampling and data gathering procedures. 4. The questionnaires for actual distribution were prepared and coded accordingly. 5. The non standardized instruments were tested for validity and reliability.

3.6.2 During data gathering I. The respondents were requested to answer the questionnaires as objectively as possible and not to leave any option unanswered. 2. The researcher emphasized that picking of the questionnaires were collected after five days from the date of distribution. 3. During the picking of the questionnaires, all returned questionnaires were checked to verify if all are fully answered.

3.6.3 After data gathering The data collected were correlated, organized and entered into excel for data processing and analysis.

1.7 Data Analysis Data analysis involved editing, categorizing, and tabulating the collected data sets. Frequencies and percentage distribution were used to determine the profile of respondents. Means scores were used to determine Rewards and work performance; a case study of selected business enterprises in Makindye division, Kampala, Uganda.

The following mean range was used to arrive at the mean of the individual indicators and interpretation:

42 Mean Range Response Interpretation 1.0 - 1.75 Strongly disagree Very low 1.76 - 2.5 Disagree Low 2.51-3.25 Agree Moderate 3.26 - 4.0 Strongly Agree High Pearson's linear correlation coefficient and regression analysis were used to establish whether there is any significant relationship between Rewards and work perfonnance; a case study of selected business enterprises in Makindye division, Kampala, Uganda.

3.8 Ethical Consideration To ensure confidentiality of the information provided by the respondents and to asce1iain the practice of ethics in this study, the following activities were implemented by the researcher: I. The respondents and initial were coded instead of reflecting the names. 2. The researcher obtained an introductory letter from the College of Economics and Management that introduced him to the concerned authorities in the study areas for pennission to collect data for this study. 3. Solicit pe1mission through a written request to the concerned officials of the commercial transp01iing agents be included in the study. 4. Request the respondents to sign in the Information Consent Form. 5. Acknowledge the authors quoted in this study through citations and referencing. 6. Present the findings in a generalized and acceptable manner. l.9 Limitations of the Study The study encountered the following limitations (i) Attitude; some participants reveal the information or they might think that they are not benefiting from responding perhaps even be penalized by giving their reveal opinion and others seek for money before allowing the researcher to distribute the questionnaires. (ii) Testing: there is always inconsistency in administration of the questionnaires in terms of time of administration, understanding of the items in the questionnaires and explanations given to the respondents. Also the participants keep on postponing the date of collecting data. 43 (iii) Instrumentation: some respondent filled the questionnaires partially, think the researcher has distributed more than the required questions Update; some participants can not clearly give up-to-date information, others do not have documented report and it would not easy to memorize the previous business event. Thus it will be difficult to emich the literature to depict the current state of affairs in the employee performance. (iv) Extraneous Variable; the research had no control over the extraneous variable such as policies, organisation regulations, restricted documents, biases of which the research had to adjust in order to get the required data. (v) The study was limited by time because there is a lot of information to be gathered, analysis for knowledge and analyzed. The time for this research was short to capture the very essence of the point why there are several loopholes within in the logistics and procurement section.

44 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.0 INTRODUCTION This chapter presents analyses and interprets findings on demographic characteristics of respondents, level of Rewards, level of work performance among Buziga country Resort, Munyonyo country Resort and Hotel Olympia in Makindye division and the relationship between Rewards and work performance; a case study of Buziga country Resort, Munyonyo country Resort and Hotel Olympia Hardware, Weld and metal works in Makindye division.

4.1 The level of Rewards The first independent variable in this study was Rewards for which the researcher wanted to determine its level. It was divided into Intrinsic Reward with three aspects namely Empowerment, Identification and Appreciation, Delegation on addition to Extrinsic Reward with four aspects namely; Pay/Salary, Promotion, Bonus, and Fringe Benefits were measured using qualitative questions in which respondents were required to indicate the extent to which they strongly agree, agree, strongly disagree, disagree with each of the items by indicating the number that suits their perceptions. Each of these questions was measured on a 4-point Likert scale. Their responses were analyzed using SPSS and summarized using means as indicated in table 4.2 below; However out of 120 questionnaires issued only 109 respondents returned and indicated in table 4.1 below; Table 4.1: Level of Rewards (n=l09) categories Mean Interpretation Rank Empowerment Encourage in-the-moment feedback 3.33 Very high I Cultivate the executive mentality 3.20 High 2 Present new challenges and opportunities 2.98 High 3 Respect employees' boundaries 2.90 High 4 Give them flexibility 2.85 High 5 Average mean 3.05 High Identification and Appreciation Demonstrate That You Value People 3.08 High I Share Leadership Vision 2.98 High 2 Share Goals and Direction 2.80 High 3 45 Trust People 2.77 High 4 Provide Information for Decision Making 2.69 High 5 Average mean 2.86 High Delegation Delegate authority and impact opportunities 3.29 Very high I Provide complete job instructions. 3.09 Very high 2 Don't look for perfection. 2.89 High 3 You're the only one who can do the job properly. 2.79 High 4 Focus on teaching skills. 2.69 Low 5 Average mean 2.95 High Pay/Salary

Gather outside information on the cun-ent market value 3.3 Very high 1 Money talks, and works to your advantage to have several entries on 3.05 Very high 2 your side of the ledger.

Compensation is the last element discussed in the interview. 3.01 High 3 We have the same amount of power in salary negotiations whether 2.89 High 4 we're employed or unemployed.

I am comfortable with the current pay/salary 2.87 Low 5 Average mean 3.024 High Promotion

Self-Motivated 3.40 Very high 1 Team Player 3.30 Very high 2 Work rules are made to be followed 3.20 High 3 Disciplined and punctual 2.90 High 4 I pay to be promoted 2.87 Low 5 Average mean 3.13 High Fringe Benefits

I am provided vehicle 3.20 Very high 1 I am a discounted commercial airline flight through our frequent flyer high 2 miles 3.10 I am given a discount on services or property 3.00 High 3 I am given a ticket to a sporting event or other entertainment 2.95 High 4 !have a membership in a country club or social club 2.90 Low 5 Average mean 3.03 High Overall mean 3.01 High Source: Primary data (2015)

Empowerment; Regarding this construct, the findings (Table 4.1) reveal that five items were measured as follows, Encourage in-the-moment feedback (mean =3.33), Cultivate the executive mentality (mean=3.20), Present new challenges and opportunities (mean= 2.98), Respect employees' boundaries (mean=2.90), Give them flexibility (mean=2.85)

46 and average= 3.05. Many managers feel that by empowering employees, they relinquish the responsibility to lead and control the organization. It is a strategy and philosophy that enables employees to make decisions about their jobs. Employee empowerment helps employees own their work and take responsibility for their results. It helps employees serve customers at the level of the organization where the customer interface exists.

Intrinsic rewards are rewards that are inbuilt from the job itself, therefore, the employee enjoys them as the result of finishing the task in a successful manner or approaching his exclusive goals. Extrinsic rewards are the ones that are exterior to the job task, such as pay, fringe benefits, work condition, job security, service contract, promotion, and the work environment and condition. Such physical rewards are constant at the organizational level, and could be out of the control of the managers. On the other hand, intrinsic rewards are the ones that could be named=emotional rewards' and some of its examples include using employee's ability, recognition, receiving appreciation, challenging and achievement, and behaving in an understanding and concerned manner. The findings also reveal that, in the real world, it is very imp01iant to reward high performance levels because this motivates and controls the performance. Indeed, reward strategies confirm the level and the merge of non-financial and financial rewards required to attract, maintain and inspire skillful competent, and capable employees to make the organization prosperous. Although some of these benefits are financial forms, such as options for salary sacrificing and competitive pay, there are a lot of non-financial benefits which films can provide its employees. They are, in fact, some factors that may motivate the staff. Therefore, for a manager, it is necessary to know what really inspires employees and perhaps they are not the same things that stimulate other employees.

The obvious reward practice should be carried out by the simplification of the connection between the given reward and the additional effort (Po1ier et al., 1975). There also have been cautions about the rewards' ways managed within the reward system. In this regard, Porter et al. (1975) suggested that to achieve positive motivational properties, the organizations' distributed incentive rewards have to be performance dependent. Indeed, managers who attempt to run a fair rewarding system seem to be more prosperous in performance rather than those who reward in an unfair manner (Jnssen, 200 I). In this

47 case, although the necessity of being fair in rewarding others seems to be understood clearly from a theoretical view, bias in the performance evaluations has often been reported in different economic studies (Prendergast, 1999). Thus, clear fairness is needed to manage an optimistic association with the reward victory in an organization. he controllability concept is defined as the amount of the employees capability to influence on or control the outcome (Baker, 2002). The effect of a certain quantity or an attempt on the quantity of employees performance has to vary at the lowest amount as possible to manage such a control over one's reward. Therefore, it can be assumed that the stronger level of the obvious controllability over the reward practice concludes higher degree of the reward effectiveness towards realizing the employees' performance at a higher level. Furthermore, the reward system should be connected to stimulate and motivate employees' performance; and this depends on the company=s strategy, attraction and retaining knowledgeable employees, abilities, and required skills (that are needed to understand the firm's strategic aims), and to manage a helpful structure and culture (Galbraith, 1973). Thus, the rewarding process itself has to affect the performance of employees in the affirmative manner as is expected by managers. In this regard, the perfonnance measurement can be used hypothetically to know more training needs, promotions for candidates, management problems, dismissals, and job rotation (Bretz et al., 1992).

Identification and Appreciation; Regarding this construct, the findings reveal that five items were measured as follows, Demonstrate That You Value People (mean=3.08), Share Leadership Vision (mean=2.98), Share Goals and Direction (mean=2.80), Trust People (mean=2.77), Provide Information for Decision Making (mean=2.69) and an average mean of2.86

Psychological or intangible rewards (intrinsic) such as recognition and appreciation plays an important role in motivating employees and raising their performance. Relevantly, the employees' commitment is based on appreciation and rewards (Andrew, 2004). The relationship should be established based on trust so that people find out their leader keeps their best interest at heart. Indeed, individuals' roles will be done better with the availability of social support and an affiliation intelligence (McClelland, 1989); and

48 people discover or seek issues when they have developed a security feeling (Frodi et al., I 985). In this regard, the staffs with a good performance will predict that their significant contributions will be realized and valued by the top managers (Bowen, 2000). Hypothesis 3a: Appreciation has significant and positive impact on employee performance.

Many organizations have realized an enormous progress by matching with their business strategies via appreciation programs for employees and a valid balanced reward. In ad dition, motivating the employees' efficiency can be improved by providing a prosperous appreciation whose antecedents will finally improve the organizations_ perfo1mance. In fact, the whole success of a firm is raised from how an organization maintains its employees motivated and how they evaluate employees= perfo1mance in running job compensation. Sometimes managers consider the extrinsic rewards more; however, intrinsic ones are also striking to motivate the employees. Psychological or intangible rewards such as recognition and appreciation play an important role in stimulating employees and increasing their performance (Deeprose, I 994). Indeed, the employees= commitment is on recognition and rewards (Andrew, 2004). In addition, the powerful existence and success of the organizations is defined through how they make their working people more satisfied (Lawler, 2003 ). On the other hand, the intrinsic rewards happen during managing the job itself like satisfaction from finishing a task in an effective manner , being appreciated by the boss, independence, etc.; however, extrinsic ones are tangible rewards such as bonuses, pay, promotions, fringe benefits, etc. (Ajila and Abiola, 2004). Relevantly, a direct relationship has been verified between job unce1iainty and turnover; and a small pessimistic association has been confirmed between job insecurity and organizational commitment (Filipkowski and Johnson, 2008). In addition, there is a significant and direct association between extrinsic rewards and motivation of employees; even though, it is demonstrated that the films do not pay sufficient budget for financial rewards (Hafiza et al., 2011).

Daniel and Caryl (1981) carried out a study based on the exploration of the investment model's ability to forecast job promise and obligation as well as job satisfaction. The study results showed that job satisfaction was best foreseen by the job reward; and job commitment was best forecasted by a combination of cost values, rewards, and the 49 amount of investment. Indeed, the extrinsic and intrinsic rewards motivate the employees; and this motivation leads to realize a higher performance level. In addition, the study showed that there was no significant difference between job satisfaction motivational levels along various workers categories in different firms (Assan, 1982).

Based on all the current studies and by considering the relationships between all of the findings, one can normally find out that a valid compensation package, which includes financial rewards, causes higher efficiency and performance for the organization. This compensation package includes both intrinsic and extrinsic rewards. Extrinsic rewards consists of external and tangible rewards to the performed efforts and employees= tasks, it can be in terms of promotions, salary/pay, bonuses, incentives, job security, etc. Overall, the highly-involved employees who are necessarily more oriented to their jobs depend more on intrinsic rewards than extrinsic ones (Wood, 197 4 ).

Delegation; Regarding this construct, the findings reveal that five items were measured as follows, Delegate Authority and Impact oppmiunities, not just more work (mean=3.29), Provide complete job instructions (mean=3.09), don't look for perfection (mean=2.89), Stop believing you're the only one who can do the job properly (mean=2.79), Focus on teaching skills (mean=2.69) Average mean=2.95 and with an overall mean of2.95

Delegation is a process which includes assigning tasks to subordinates, giving responsibility to the subordinates for formal decisions made by the manager, and raising the amount of allowed job-related discretion to subordinates, involving the authority in making decisions without looking for prior manger_s approval (Yukl and Fu, 1999). In this case, Leanna (1986) argues that delegation is different from other decision making procedures, like participation, in two major ways: (I) delegation includes decision makings by an individual subordinate instead of by subordinates as a group or by supervisors; and (2) delegation puts emphasis on subordinates' autonomy in decision making (Leanna, 1986; Locke & Schweiger, 1979).

50 Relevantly, in the Western empirical and theoretical literature, delegation is widely known as a necessary factor of effective management. Four benefits of delegation identified from the literature include: (I) delegation fulfils managers= need for success and autonomy by introducing a stimulus for more entrepreneurial behavior and motivation (Mintzberg, 1979); (2) delegation decreases the work overload for upper level managers (Yuk! and Fu, 1999); (3) it provides a training area for the more complicated strategic decisions which managers are likely to confront in top-level managerial positions (Yuk! and Fu, 1999); and (4) delegation puts decisions in levels at which there could be greater specialty on paiiicular problems which provides extra information processing advantages to the firm; and this may result in better quality and more efficient decisions (Ito & Person, 1986; Galbraith, 1973). Therefore, the Western finns= behavior and the literatures (Leanna, 1986, Argyris, 1964; Yuk! and Fu, 1999; Johnstone, 2000; Schriesheim et al., 1998) have acknowledged the positive association between delegation and job-related consequences, such as job satisfaction and subordinate performance.

Hypothesis 3c: Delegation has significant and positive impact on Employee Performance

Rewai·d process needs to be unbreakable and to be a motivation towards achieving the total organizational performance. Indeed, the employees with high perf01mance level expect that their outstanding offerings will be recognized and respected by the top-level managers. Nowadays, a reward tactic has been adopted by many finns in both private and public sections. For exainple, in the downsizing world, doing more and better with less recognition/reward is very imp01iant to increase the levels of self-esteem and to create kindness between managers and employees (Bowen, 2000).

To access positive motivational properties, the distributed rewards made by organizations must be based on performance and any divergence in this ratio leads to unfairness (Locke & Henne, 1986). In this regard, managers who provide fair reward are better than those who do not. In other words, the employees who feel equality and fair in being given reward based on their effort, will be satisfied more and will attempt to act better for the future to get the other promised employers_ reward (Janssen, 2001). On the whole, it seems that rewarding is clearly comprehended hypothetically, accurately unbiased, and

51 inflated; while the performance assessments have often been provided in economic researches (Prendergast, 1999).

Pay/Salary; regarding this construct, the findings reveal that five items were measured as follows, Gather outside information on the current market value of your position (mean=3.30), Money talks, and it works to your advantage to have several entries on your side of the ledger before you negotiate (mean=3.05), Traditionally, compensation is the last element discussed in the interview (mean=3.0!), we have the same amount of power in salary negotiations whether we're employed or unemployed (mean=2.89), I am comfortable with the cmTent pay/salary (mean=2.87) Average mean=3.024 and with an overall mean of2.95. this implies, With the economy in such shambles, many candidates believe employers are in little mood or position to negotiate on a starting compensation package.

Promotion; on this construct, the findings reveal that five items were measured as follows; Self-Motivated (mean=3.40), Team Player (mean=3.30), Work rules are made to be followed (mean=3.20), Disciplined and punctual (mean=2.90) and I pay to be promoted (mean=2.87) with an average mean. This implies that, a promotion is viewed as desirable by employees because of the impact a promotion has on pay, authority, responsibility, and the ability to influence broader organizational decision making. A promotion raises the status of the employee who receives a promotion which is a visible sign of esteem from the employer. A promotion is a form of recognition for employees who make significant and effective work contributions. Consequently, a dilemma arises in organizations since repeated promotions generally place an employee in a management role. Employers are challenged to provide alternative career paths for employees who deserve the benefits and recognition provided by a promotion, but do not aspire to manage the work of other employees. Individual contributors must be eligible for promotions that recognize and reward their role as contributors. A promotion is a powerful communication tool about what is valued within an organization. Thus, a promotion must be available to employees who play any role in the contribution of work and value.

52 Fringe Benefits on this constrnct, the findings reveal that five items were measured as follows; I am provided vehicle (mean=3.20), I am a free or discounted commercial airline flight through your frequent flyer miles (mean=3.10), I am given a discount on services or property (mean=3.00), I am given a ticket to a sporting event or other entertainment (mean=2.95) and I have a membership in a country club or social club (mean=2.90) with an overall mean of (mean=3.03) this implies that, fringe benefits are part of your employees' taxable wages, but there are certain fringe benefits that are excepted from this rule and you can still take a business deduction for their cost. Nontaxable fringe benefits include no-additional-cost services, qualified employee discounts, working condition fringe benefits, very minimal fringe benefits and qualified transportation fringe benefits. For small business owners, offering fringe benefits that are valuable to employees can improve job satisfaction and help them offer a competitive benefits package. There are a wide variety of fringe benefits that employers can choose to offer and some are even specifically excluded from employees' taxable income. What exactly is a "fringe" benefit? Almost any property or service provided by an employer to an employee as compensation for the employee's perfo1mance of services is considered a fringe benefit. For example, fringe benefits include the following items: an employer-provided vehicle , a free or discounted commercial airline flight through your frequent flyer miles , a discount on services or property , a ticket to a spo1iing event or other ente1iainment , a membership in a count1y club or social club . In general, your employees must pay payroll taxes on the value of any fringe benefits you provide in their income unless the fringe benefits are specifically excluded from income under the federal income tax laws. For example, if you let your sales representatives use a company car for personal purposes, the value of this noncash fringe benefit must be included in the sales representative's wages as part of his compensation. Except for certain fringe benefits subject to special valuation rules, a general valuation rules is used to figure out how much employees include in their income. Regarding all constructs on reward, seven items were measured as follows; Empowerment with average mean=3.05, Identification and Appreciation with an average mean= 2.86, Delegation with an average mean= 2.95, Pay/Salary with an average mean= 3.024, Promotion with an average mean= 3.13, Fringe Benefits wifu an average mean= 3.03 with an overall mean of, 3.01.

53 4.2 Work Performance The second objective of the study was set to determine the level of Work Performance for which respondents were required to ascertain the extent to which they agree or disagree with the items or statement by indicating the number which best describes their perceptions. This variable was measured using thirty qualitative questions with response rate ranging between 1=strongly disagree, 2=Disagree, 3=Agree and 4=strongly agree.

The responses were analyzed and described using means as summarized below in table 4.2. Key for interpretation of means Mean range Response mode Interpretation 3.26-4.00 Strongly agree Very high 2.51-3.25 Agree High 1.76-2.50 Disagree Low 1.00-1.75 Strongly disagree Very low

The results in table 4.3 above shows the five items on the dependent variables which were collected from respondents". All the items for the dependent variables were measured on a four like1i scale (1 = strongly disagree, 2=disagree, 3 = agree and 4 = strongly agree).

The respondents contended that low level of Work Performance hindered creation of favorable environment for Work Performance Table 4.2: Level of Work Performance (n=109) Categories Mean Interpretation Rank A. Financial performance Profitability, there is current Profit Sharing 3.51 High I Liquidity, our assets can easily be converted into cash 3.47 High 2 Utilization- Improved business profits 3.41 High 3 Increased employee responsibility 2.29 High 4 Investment - shareholder ratios 2.26 High 5 Average mean 3.31 High

54 B. Customer service Patience 3.35 High 1 Attentiveness 3.30 High 2 Clear Communication Skills 3.29 High 3 Knowledge of the Product 2.90 High 4 Ability to Use "Positive Language 2.80 High 5 Average mean 3.12 High C. Social responsibility Communicating realistic but challenging job expectations and 3.19 High 1 making employees accountable for their decisions and actions result in noticeable improvements in employee tardiness, absences, and organizational commitment. Time Management Skills 3.05 High 2 Ability to "Read" Customers 3.01 High 3 A calming presence and enhanced quality of work life 2.96 High 4 All employees are treated fairly by implementing standardized 2.80 High 5 procedures that promote consistency throughout an organization Average meau 3.00 High D. Employee stewardship Ability to Handle Surprises 2.95 High 1 Persuasion Skills 2.92 High 2 Tenacity 2.90 High 3 Closing Ability 2.79 High 4 Willingness to Learn 2.58 High 5 Average mean 2.83 High Communication Understand your employees 3.50 Very High 1 Distribute your messages electronically, in writing, face to face, High 2 and at forums and meetings 3.20 Be timely: Notify employees first 3.00 High 3 Match actions with words 2.95 High 4 Create an organizational habit for communications. 2.90 High 5 Average mean 3.11 High Overall Mean 3.07 High Source: Primary data (2015)

Financial performance; regarding this construct, the findings reveal that five items were measured as follows, Profitability, there is current Profit Sharing (mean=3.51), Liquidity, our assets can easily be converted into cash (mean=3.47), Utilization- Improved business

55 profits (mean=3.41), Increased employee responsibility (mean=2.29), Investment - shareholder ratios (mean=2.26) and an average mean of3.31

Extrinsic rewards are external to the job and include elements like fringe benefits, pay, promotions, private office space, the social climate, and job security. Other examples are competitive salaries, merit bonuses, pay raises, and indirect payment forms as compensatory time off (Mahaney & Lederer, 2006; Mottaz, 1985). Extrinsic rewards are often applied to demonstrate that the firm is serious about valuing group contributions to quality. In this regard and as a subgroup, the financial rewards include cash as bonus paid to team members. In fact, the bonus is paid separately from the wage and salary. On the other hand, team rewards should be used in a way so that managers can avoid destroying staffs' intrinsic motivation in doing their jobs. Indeed, the application of extrinsic rewards which are tightly related to team=s perfo1mance can teach the members to become hungry to money and to destroy their intrinsic interest in the job (Balkin & Dolan, 1997).

Extrinsic rewards also drive worke1:_s morale and the distribution of these rewards always has loomed large in companies, especially in accordance with performance evaluations in present globalization eras (Appelbaum et al., 2011; Datta, 2012). Fmihermore, giving rewards has be come a paii of firm=s policies as it has been shown to improve workers= performance and the organization=s productivity. Based on all current literatures and by focusing on the links between all of the findings, one can understand that an appropriate compensation package, including financial rewards, will cause a higher performance and efficiency for the fom. This compensation package consists of both extrinsic and intrinsic rewards. Extrinsic rewards include tangible and external rewai·ds to the attempts and perfo1med tasks in te1ms of salary/pay, promotions, bonuses, job security, incentives, etc. Overall, the highly involved workers who are oriented more to their occupations are dependent more on intrinsic than extrinsic rewards (Wood, 197 4 ). 28 In addition, a significant and direct association exists between extrinsic rewai·ds and the motivation of employees; however, it is verified that the companies do not spend sufficient budget on financial rewai·ds (Hafiza et al., 2011 ). Hypothesis 2: There is a direct relationship between financial rewards and performance.

56 Customer service; regarding this construct, the findings reveal that five items were measured as follows, Patience (mean=3.35), Attentiveness (mean= 3.30), Clear Communication Skills (mean=3.29), Knowledge of the Product (mean=2.90), Ability to Use "Positive Language (mean=2.80) and an average mean of 3.12. This Implies That, Customer satisfaction is achieved by providing valued services and products, where value is the positive difference between customers' actual experiences and their service delivery expectations. Productive employees also create value. Employee productivity stems from employee loyalty, and loyalty is a product of employee satisfaction. Satisfaction is generated by high-quality support services (people, info1mation, and technology) and by being empowered to provide value and resolve customer complaints. This customer service culture must be suppo1ied by leadership that emphasizes the importance of each customer and employee. These leaders must be creative and energetic (not lofty or conservative), pmiicipatory and caring (not removed or elitist), that is, one who can be a coach, teacher, or listener (not just a supervisor or manager). Such a leader demonstrates company values (rather than simply institutionalizing policies) and motivates by mission (rather than by fear) (Heskett, 1997).

The customer service study revealed that no specific tactic, technology, or mission statement is the key to effective customer service delivery. In fact, what is clear is that effective customer service delivery is organization specific, since services are designed around the targeted customers' desires and the frontline employees delivering the services. The components of the process for producing effective customer service delivery include appropriately identifying and targeting the ideal customer, establishing a customer-focused vision that is consistent with the prioritized desires of the target customers, establishing the operational procedures and internal infrastructure that suppo1i customer service, continuously measuring customer and employee satisfaction, embracing change, and striving persistently to improve.

The way your customers feel towards you is imp01iant. The more you show you care about them, the more they'll likely want to continue working with you. With that in mind, providing good customer service to your clients should naturally be a major priority in

57

0 your day-to-day schedule. This aiiicle lists tips and suggestions for ensuring that you're treating your clients well.

Respond to Clients as Soon as Possible; Speed is everything, especially when a client is requesting something that's time-sensitive. Try to reply to your clients as soon as you can. Procrastinating on a response to a client's email, phone call or voicemail doesn't help anyone; you're going to have to reply eventually, so why not do it as soon as possible? Avoid that "mark as unread" button in your email client.Even if you can't work on the task they're requesting you to accomplish right away, at least Jet them know you got their request and then supply them with a timeline of when you're able to get the task completed. If you can't find the time to perf01m the task, it will be considerate of you to Jet them know as soon as possible so that they can make alternative arrangements.

Keep Clients Updated; Feeling like you're Jost and that you don't know what's going on is one of the worst situations you can be in when you hire someone. Even if you don't have anything major to report, you can still Jet your employer know what you're working on and how things are progressing. Are you on track on milestones? Did you find something that might become an issue later on? Status updates give clients reinforcements that they're involved in the project. If you're experiencing trouble with something, let them know right away. It shows that you're keeping them in the loop and that you have things under control. If it's something major, communicating your concern right away allows clients to plan for possible delays in the project's completion.

Go the Extra Mile; If a client asks for you to do something that trnly won't cost you a Jot in time and income, you have the option of going the extra mile and doing it for them. Not only will this result in an indebted and happy client, it can also go a Jong way in terms of keeping yourself in their radar for future proj eels. Fix Your Mistakes; If you did something that didn't end up working, you should repair it. A quick way to Jose a client forever is not admitting that you are at fault and not fixing your own mistakes. You should always strive for a high-quality output; it shows that you have a high level of standards in your craftsmanship. Not taking responsibility of your

58 own blunders is a sure-fire way of gaining a bad business reputation. Transparency is important in any business; service work is no different.

Listen to Your Clients; It's impo1iant to listen to what your clients are communicating to you. Like, really listen. Understand what they are saying and ask for clarifications on things that might be ambiguous. Clients might be unfamiliar with certain terminologies in our profession, and what you think they mean might be different to what they actually mean.

Social responsibility; Regarding this construct, the findings reveal that five items were measured as follows, Acting Skills- Communicating realistic but challenging job expectations and making employees accountable for their decisions and actions result in noticeable improvements in employee tardiness, absences, and organizational commitment (mean=3.19), Time Management Skills (mean=3.05) , Ability to "Read" Customers (mean=3.01), A calming presence and enhanced quality of work life (mean=2.96), All employees are treated fairly by implementing standardized procedures that promote consistency throughout an organization (mean=2.80) and an average mean of3.00, this implies employees who are satisfied with their organization's commitment to social and environmental responsibility are likely to be more positive, more engaged and more productive than those working for less responsible employers. A strong commitment to corporate social responsibility (CSR) has an impact on a wide range of employee attitudes, according to a survey by Sirota Survey Intelligence, fostering positive views about their employer in key areas such as its sense of direction, competitiveness, integrity and interest in their well-being. In all, some seven out of I 0 employees gave their employer's commitment to CSR the thumbs-up, according to the survey of 1.6 million employees from more than 70 organisations. "Businesses that recognize the imp01iance of social responsibility often have employees who tend to be more satisfied with their jobs, adopt similar values, and become more committed to achieving success within the industry," said Douglas Klein, President of Sirota Survey Intelligence." One of the most staiiling statistics to emerge from the survey is the difference in attitude towards senior management in organisations that are seen as having a strong CSR commitment. Seven out of IO employees in these organisations

59 rated senior management as having high integrity compares with just one m five employees who were negative about their employer's CSR record.

"Employee views of CSR are connected with a broader assessment of the character of senior leadership - meaning that management can be relied on to follow through on what they say," said Klein. "However, leaders who are seen as incapable of following through are unlikely to be regarded as being socially responsible." It is a similar story when it comes to senior management's sense of direction. Some two-thirds of employees who are satisfied with their employer's CSR commitment feel that senior management has a strong sense of direction compared to just 18 per cent in less enlightened organisations. "Effective leaders connect the dots for their employees," said Klein. "When employees question the time or money spent on certain social initiatives or any other activities, an effective leader will demonstrate the strategic importance these programs play in suppmiing the interests of the business."

The effect of these positive attitudes on employee engagement is equally startling. When employee are positive about their organisation's CSR commitment, employee engagement rises to 86 per cent. When employees are negative about their employer's CSR activities, only 37 per cent are highly engaged. And unsurprisingly, twice as many employees in the former group (82 per cent) feel their organisation is highly competitive in the marketplace as those in the latter. According to Douglas Klein, much of this difference can be ascribed to the simply fact that a sense of pride is a major driver of both morale and results. "People want to be associated with a successful organization that has a positive image," he said. "Employees do not divide the moral compass of their company into one pati for employees and another part for the community," he continued. "Their employers' commitment to corporate social responsibility is critical in conveying that the organization acts in their best interests, and is dedicated to treating them fairly and equitably." "To employees, CSR and business success go together. Companies that enhance their reputations through CSR perform better, and generate greater employee loyalty from workers."

60 According to a recent survey of 1,500 chief executives conducted by IBM's Institute for Business Value, CEOs identify "creativity" as the most important leadership competency for the successful enterprise of the future. The link may initially not be intuitive, but spawning creativity in the workforce comes back to corporate social responsibility. While corporate responsibility is often used in reference to the organization's interaction with outside communities, it also touches upon how members of the organization are actually treated and valued. How they are treated determines both self-perception and performance within the workplace and is conelated with life happiness in general. Writers, business leaders and psychologists have long hypothesized about the link between work environments and creativity, and the challenges in harnessing natural human creativity to optimize performance. One scientist, Mihaly Csikszentmihalyi, explains the optimal state of mind, when creativity is at its highest, as "flow." Flow is when our minds and bodies are stretched to their limits in a voluntary effort to accomplish something worthwhile and difficult.

The link between happiness and creative "flow" is explained in a scientific American article that chronicles the results of a study published by Proceedings of the National Academy of Sciences USA. The study found that "With positive mood, you actually get more access to things you would normally ignore. Instead of looking through a po1ihole, you have a landscape or panoramic view of the world." In other words, the results suggest that happiness makes people more receptive to information of all kinds, and therefore results in greater creative thought processes. Studies show that positive employees outperform negative employees in terms of productivity, sales, energy levels, turnover rates and healthcare costs. According to Shawn Achor, Harvard researcher and author of "The Happiness advantage," optimistic sales people outperfo!Til their pessimistic counterparts by up to 37%. People who expressed more positive emotions while negotiating business deals did so more effectively and successfully than those who were more neutral or negative. In fact, the benefits can be seen across industries and job functions. Doctors with a positive mindset are 50% more accurate when making diagnoses than those that are negative. The same patterns emerge for businesses that have adopted the happiness principles espoused by Achor. Think of Google, Adobe, American Express, and you think of great places to work. You also think of companies that are

61 extremely successful and creative. Not only do these companies understand the importance of social responsibility in the outside world (they are industry leaders), but they embrace it in the context of employee relations for instance creating work environments that maximize human potential and happiness.

It is also wmih noting that creativity, happiness and performance enable a positive feedback loop. Achor calls this idea the "Pygmalion Effect," meaning that people act how we expect them to act. Expect them to succeed, encourage and praise them accordingly, and studies show that they will. Similarly, provide them with a creative, "happy" environment, and people will find greater meaning in their jobs (regardless of what the job is - Achor notes that studies find the same results across professions, whether one is a janitor or a CEO). Positive outcomes then reinforce one another as workers become happier, creativity thrives, performance improves, and so on. As Achor quotes John Milton's Paradise Lost at the beginning of his book, "The Mind is its own place, and in itself can make a heaven of hell, as hell of heaven," so can managerial attitudes and overt messages of positivity and happiness do the same. Isn't it time businesses put the same amount of energy in fostering happiness in their work places as building community and public relations? Achor and his team of researchers certainly would, and I would agree.

Employee stewardship; Regarding this construct, the findings reveal that five items were measured as follows, Ability to Handle Surprises (mean=2.95), Persuasion Skills (mean=2.92), Tenacity (mean=2.90), Closing Ability (mean=2.79), Willingness to Learn (mean=2.58), Average mean=2.83 with an overall mean of 2.96. this implies that, employees are the conduit between your cool thing and your customers. You should remove every organizational barrier that stands between your work and your customers

Communication skills are vitally impmiant for every business. Employees must be able to effectively communicate not only internally with their co-workers and managers, but also externally with customers and clients. Poor communication skills can lead to other problems such as unnecessary misunderstandings and insubordination. By finding out about communication problems early on, businesses can get to the root of the problem and find a solution before things go awry. This makes asking about communication skills a vital pati of the evaluation process. 62 Every employee evaluation has at least one question pertaining to how the employee is performing at their job. By asking about employee performance, businesses can ascertain whether additional training needs to be offered in some areas. In some instances, a particular employee may just need some additional guidance in one or two areas where they show weakness. In other cases, business may be able to determine entire departments need to be retrained if multiple employee evaluations are all showing the same weaknesses. Performance issues can be a result of one of the four dimensions noted here but it can also be a result of a complex combination of more than one dimension. When there are several poor performers or a trusted and valued performer's success begins to slide, it may be helpful to look at the supervisory team or the department as a whole. Often, companies are well-served to bring in an external consultant to bring an objective, seasoned diagnosis of all the barriers to departmental success. In any event, if you pay attention to potential causes the chance of a successful performance intervention is greatly increased.

Communication; regarding this construct, the findings reveal that five items were measured as follows, Understand your employees mean=3.50 Distribute your messages electronically, in writing, face to face, and at forums and meetings mean=3.20, Be timely: Notify employees first mean=3.00, Match actions with words mean=2.95, Create an organizational habit for communications mean=2.90 with an average mean of 3.11. This implies that, Managers need to be trained in how to communicate, and they need to have the right tools at hand. If you are expecting your managers to help explain a complicated change to the organization's pension plan, you'd better provide them with talking points and handouts. Start at the top by assessing your senior management team - they set the tone for establishing organizational culture and cascading daily consistent messages to employees. Ask your employees what they think - do they feel communication is aligned with the mission, vision & culture of the organization? Is it consistent? Facilitate focus groups to hone in on the common tln·eads. Once you have determined what the issues are - take a look at your budget to determine what smt of communication vehicles you can afford to implement. Depending on the timing, location and sensitivity of the message

63 there a number of vehicles from which to choose. The Employee Handbook, Monthly Newsletters, Town Meetings and Social Media are all commonly used. Choose your communication channels carefully. Think about your audience and how to best communicate with them. We tend to turn to e-mail first, but keep in mind that this is often the least effective way to get your message across. When possible, face to face communication tends to be the most effective because we receive an immediate reaction, are able to clarify any confusion and people tend to listen more closely. The key to a strong employee communication strategy is planning, followed by implementation and follow-up. Taking the time to communicate with your employees will help increase employee productivity, boost employee morale and ultimately improve the bottom line. Regarding Work performance five constrncts were measured as follows; Financial performance average means=3.31, Customer service, average means=3.12, Social responsibility average means=3.00, Employee stewardship average means=2.83 and Communication average means=3.l 1 with an overall mean of3.07

4.3 Relationship between Rewards and work performance The forth objective of sought to determine relationship between the Rewards and work performance. On this, the researcher stated a null hypothesis that there is no significant relationship between Rewards and work performance. To achieve this last objective and to test the null hypothesis, the researcher correlated the means of all aspects of Rewards and work performance; a case study of selected business enterprises in Makindye division using Pearson linear con-elation coefficient, as indicated in table 4.3 below:-

Table 4.4: Significant relationship between the Rewards and work performance (n=109)

Variables r-value Sig- Value Interpretation Decision on Ho correlated Rewards Vs .468 000 Positive and Rejected work performance Significant

Source: Pnmary Data, (20 I 5)

64 The results in table 4.4 indicate that the relationship that exist between Rewards and work performance; a case study of selected business enterprises in Makindye division is significantly correlated, (all sig.<0.05). This means that the more logistic supp01t is given and available in the firm, the more the bureaucratic Rewards and the lower the, work perf01mance in Busiga, Munyonyo country reso1t and Olumpia Hotel.

Thus, Rewarding is essential as an incentive and an unbreakable motivator to realize the organizational performance. In addition, today, it has been adopted by different organizations in both public and private sections. In downsizing, for instance, doing more with reward is very imp01tant to elevate self-esteem and to establish kindness between managers and their employees (Bowen, 2000). On the whole, the employees' insight into the reward practice clarity depends on two factors: complexity and communication. In other words, the requirement for a clear reward system includes having an obvious communication of the offer and concentration on the rewards as well as the concerns about comprehending the methodologies, targets, and measures applied while introducing rewards. In this case, the employees need to know the relationship between the film's goals, their supply, and the way they are rewarded; and ambiguity in this regard will decrease the motivation rewarding value (Gibbons, 1998). Pe1taining to the reward discussion, Ivana, Lovorka, and Nevenka (2009) discussed that rewarding must please an open and full obvious regarding awards. On the other side, communication of the rewards' accessibility, the criteria for getting satisfied, and the award recipients recognition should be accessed by rewards (Ivana et al. 2009).

Since the time Deci et al. (1971) published the result on the fact that extrinsic rewards negatively affect intrinsic motivation, the numerous disagreements have been forwarded to different OB generations. Although this issue finally took a back place in the area, the argument has been continued until today. In addition, the drawn conclusions have shown to deeply affect practically and hypothetically. On the whole, while motivation is at the heait of organizational behavior, the interactive and direct effects of extrinsic and intrinsic rewards can be the centre of the motivation study.

65 Extrinsic motivation behaviors include the actions that are extracted from external rewards, such as payment, esteem, material properties, and positive evaluations. In addition, via the change and the identification of environmental contingencies, involving extrinsic empowerment, the increases of motivation are realized in workplace behaviors such as attendance, selling, promptness, cost reduction, productivity, sales work quality, and customer service (Komaki, 1982). On the opposite side of extrinsic motivation, the intrinsic one is mentioned to exist when the behavior is done for its exclusive aim rather than to access social empowerment or material. The intrinsic motivation concept has been a significant challenge to behaviorism, and has its roots in White's (1959) Intrinsic and Extrinsic Motivation, reflectance or competence motivation. In this regard, Maslow (1943) and Alderfer (1969) addressed the same needs and statements.

4.4 Findings from the interview guide The meta-analysis of research and subsequent surveys yielded surprising evidence about the effectiveness of incentive programs and the elements behind success. Here are some of the key findings: Incentive programs improve performance. If selected, implemented, and monitored correctly, incentive programs with awards in the form of money or tangible awards increase performance by an average of 22 percent. Team incentives can increase performance by as much as 44 percent. Incentive programs engage participants. The research found that incentive programs can increase interest in work. When programs are first offered for completing a task, a 15 percent increase in performance occurs. Asked to persist toward a goal, people increase their performance by 27 percent when motivated by incentive programs. When incentive programs are used to encourage "thinking smarter," performance increases by 26 percent.

Incentive programs attract quality employees. Organizations that offer properly stmctured incentive programs can attract and retain higher quality workers than other organizations. Longer-term programs outperform sho1i-term programs. The study found that incentive programs that run for a year or more produced an average 44 percent performance increase, while programs running six months or less showed a 30 percent increase. Programs of a week or less yielded a 20 percent boost. Executives and employees value incentive programs. All things considered, both employees and managers say they highly

66 value incentive programs. Nonetheless, 98 percent of survey participants complained about their implementation. A program's success and return on investment, obviously, depends on how well it's operated. Quota-based incentive measures work best. Programs that reward performance based on meeting or exceeding goals generate the most positive results. Piece-rate programs, for doing more of something, also provide positive results, according to the research. Least effective (yet commonly used) are tournament-based programs; for instance closed-ended programs that reward a pre-selected number of winners, as opposed to open-ended, quota-based, or piece-rate programs that give everybody a chance at success.

67 CHAPTER FIVE DISCUSSION, SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

5.0 Introduction This final chapter presents and summarizes the findings, conclusions and recommendations based on the study objectives and study hypothesis.

5.1 Summary Findings The purpose of this study was to test the null hypothesis, to validate existing info1mation related to theory to which the study is based on, to generate new information based on the findings of the study and to bride the gaps identified in the previous studies. it was guides by three objective which included; (a) to establish the level of rewards in terms of ; empowerment, identification and appreciation, delegation, pay/salary, promotion, bonus and fringe benefits among Buziga country Reso1i, Munyonyo country Res01i and Hotel Olympia in Makindye division (b) Identify the extent of work performance, customer service, social responsibility, employee stewardship, and financial performance among Buziga country Resort, Munyonyo country Reso1i and Hotel Olympia in Makindye division ( c) Establish whether there is no significant relationship between Rewards and work performance among Buziga country Resort, Munyonyo country Reso1i and Hotel Olympia in Makindye division, Kampala, Uganda.

Regarding Rewards three constructs were measured and empowerment emerged out as the highest, it had five items with means ranges from 3.33 to 2.85 with an average mean of 3.05; This was followed by Identification and Appreciation with also five items which ranges from 3.08 to 2.69 with average mean of2.86 and lastly, Delegation which also had five items with means ranged from 3.29 to 2.95 with an average mean of 2.95 and an overall mean of2.95 rated high on rewards.

Extrinsic rewards are external to the job and include elements like fringe benefits, pay, promotions, private office space, the social climate, and job security. Other examples are competitive salaries, merit bonuses, pay raises, and indirect payment forms as compensatory time off (Mahaney & Lederer, 2006; Mottaz, 1985). Extrinsic rewards are 68 often applied to demonstrate that the film is serious about valuing group contributions to quality. In this regard and as a subgroup, the financial rewards include cash as bonus paid to team members. In fact, the bonus is paid separately from the wage and salary. On the other hand, team rewards should be used in a way so that managers can avoid destroying staffs' intrinsic motivation in doing their jobs. Indeed, the application of extrinsic rewards which are tightly related to team=s perfo1mance can teach the members to become hungry to money and to destroy their intrinsic interest in the job (Balkin & Dolan, 1997) Extrinsic rewards also drive worker=s morale and the distribution of these rewards always has loomed large in companies, especially in accordance with performance evaluations in present globalization eras (Appelbaum et al., 2011; Datta, 2012). Furthermore, giving rewards has become a part of firm_s policies as it has been shown to improve workers ' performance and the organization=s productivity.

Based on all current literatures and by focusing on the links between all of the findings, one can understand that an appropriate compensation package, including financial rewards, will cause a higher performance and efficiency for the firm. This compensation package consists of both extrinsic and intrinsic rewards. Extrinsic rewards include tangible and external rewards to the attempts and performed tasks in terms of salary/pay, promotions, bonuses, job security, incentives, etc. Overall, the highly involved workers who are oriented more to their occupations are dependent more on intrinsic than extrinsic rewards (Wood, 1974). 28 In addition, a significant and direct association exists between extrinsic rewards and the motivation of employees; however, it is verified that the companies do not spend sufficient budget on financial rewards (Hafiza et al., 2011).

5.1.1 Reward and Performance Regarding all constructs on reward, seven items were measured as follows; Empowerment with average mean=3.05, Identification and Appreciation with an average mean= 2.86, Delegation with an average mean= 2.95, Pay/Salary with an average mean= 3.024, Promotion with an average mean= 3.13, Fringe Benefits with an average mean= 3.03 with an overall mean of, 3.01.

69 Two extrinsic reward types, which include suitable earnings (bonus and pay), and job security are the most imp01iant factors between intrinsic and extrinsic rewards (Kulkarni, 1983). Paying is a vital factor which affects employees' motivation. (Kalim et al., 20 I 0) Both motivation and satisfaction, as the antecedents ofjob and pay security, are the most important job simulations to determine the foture events and also satisfaction with promotion opportunity is another striking motivator type (Clark, 2001). Rewarding is an initial step like any other HR operations, especially when it confronts with salary, pay, and financial recompense. These functions in HR are often applied in firms; but it is obvious that they refer to the same concept (Milkovich & Newman, 2009; Bergmann & Scarpello, 2002). As McShane & Vin Glinow (2005) and Henderson (2009) mentioned in a HR management scope, rewarding is often seemed as an employer's system, who designs and mns the different types of wage systems to the employees who provide services or accomplish a confident task. It should be noted that employers plan on rewarding systems are based on their employees' efficiency and effectiveness. The motivation by pay is based on seniority and is a reward when the staffs do the job well and tend to receive monetary reward; and in such a system, the pay level is because of the staffs' skills, attempt, and doing their responsibilities as well as the job status (Figart, 2000; Bergmann & Scarpello, 2002; McShane & Von Glinow, 2005).

In a worldwide competitive period, employers have altered the rewarding system paradigms from a usual performance-based compensation to a new kind which is based on the firm's strategy and maintain the goals at appropriate levels (Lawler, 2000; Henemen et al., 2000).

Performance-based pay includes two kinds: group performance pay and individual perfonnance like value bonus, pay, promotion and other different pay types (Milkovich & Newman, 2009). Although the pay rewarding performance has different kinds, most of the managers use the same methods to compensate and this way includes adding extra money to the wage base (Lawler et al., 1993; Chang & Hahn, 2006;Lee et al., 1999).

70 5.1.2 Work performance Regarding Work performance five constructs were measured as follows; Financial performance average means=3 .31, Customer service, average means=3 .12, Social responsibility average means=3.00, Employee stewardship average means=2.83 and Communication average means=3.l 1 with an overall mean of3.07

5.1.3 Relationship between Reward and work performance The relationship that exist between Rewards and work perfmmance; a case study of selected business enterprises in Makindye division is significantly correlated, (all sig.<0.05). This means that the more logistic suppo1t is given and available in the firm, the more the bureaucratic Rewards and the lower the, work perfo1mance in Busiga, Munyonyo country resmi and Olumpia Hotel.

5.1.4 Responses from Interviews 1) If you recognize one person, aren't you NOT recognizing everyone else? That is, what do you do about the employees who feel left out? Whenever someone in your organization is upset about someone else being recognized (and not him- or herself), this should be a red flag that you are not doing enough recognition. When recognition is a scarce commodity, people have a tendency to want to cling to it and, for that matter, keep in the spotlight as long as possible because they are never sure when it will come around again. Leaving employees out does not tend to be a problem in organizations that have developed a strong recognition culture, that have a variety of formal and informal programs and tools, and where managers place an emphasis on daily recognition practices and behaviors. As a start toward moving toward such an "abundance" mentality, revamp your recognition activities and programs to avoid a single "winner" or quota. Instead, create oppo1tunities for everyone to be potential winners, such as having an honor roll for those employees who have all practiced a key value or set of behaviors of the organization within a given time period, instead of an employee-of-the-month program, which honors a single recipient. Also, remember, if some of the best fo1ms of recognition tend to have little if any cost for verbal and written praise, public praise, symbolic gestures by

71 managers, pass around awards, there is absolutely no reason not to do more of these activities in a timely, sincere, and personal way!"

2) Our managers know they should recognize their employees, but they feel they're too busy to do so. What can we do? I've found that making recognition happen is iterative, so try to build on and expand from your successes. Discuss with the managers the increasing problem of attracting and retaining employees, the hidden costs, the loss of productivity and competitiveness. Show the demographics and what your competition is doing. Relate the issue to the bottom line. You can't force managers to recognize their employees, but you can make a persuasive case for why they should want to do so. Remember too that "time" can be an excuse. In my doctoral research, I found that high-use recognition managers actually valued recognition in paii because it can be well done with very little time.

3) If you praise employees, won't it be more difficult to discipline them when necessary? If you are specific about what you are praising the person for, this is less of a problem. Generic praise such as "You're one of my best employees" can be misleading to the employee because it seems to indicate little, if any, need for improvement. You can leverage those things the individual is good at as evidence that he or she can improve in other areas of the job, for example, "Gary, I know you can make these new changes we've discussed, because I've seen how well you handle assignments that you put your mind to." As the person makes improvements, be sure to notice and acknowledge those improvements. This will be one of the best ways to assure that the improved performance continues. When you discipline someone, you have to make sure that the person feels you are on his or her side. If someone is on a performance improvement plan, it is essential that you notice when the person has made improvement of any type to stati to build the positive momentum toward enhanced performance. Typically, doing so will make the employee's progress easier and show that you ai·e in it together.

72 4) My company does a lot to recognize their employees, but employees report they don't receive much recognition. What's going on? Many organizations confuse lots of employee activities with equating to lots of recognition - it's not. The type of activities you referenced falls into a narrow band on the recognition spectrum. Such activities may help morale and social interaction among employees, but tend not to make any individual employee feel special. The best recognition singles individuals or groups out for extraordinary performance. It is contingency based upon those things that make the biggest difference to the group's mutual success. If people don't appreciate those things you are doing, you need to consider doing things they do value more.

5) How can we get top management to support recognition activities? Different people are persuaded differently. The best advice I have is to think of other times when your manager has been persuaded (to purchase equipment, approve a policy exception, hire a person, etc.) and what served to convince her (data, cost/benefit, urgency of the problem, competitor doing it, personal appeal). Now mimic what worked!

6) Our recognition programs are feeling stale. How can we reenergize them? Any recognition program or activity can get old and lose energy, especially over a number of years. Do a focus group or find a way to collect information about why people do not use the existing program. Include the biggest cynics on the review team to gain their feedback. It may be that the program just needs to be relaunched to remind people of its existence and new incentives need to be established. Or, you may discover that the program has run its course and it would be better to do something new and exciting.

7) We hold some recognition events that a lot of employees even ones receiving the awards do not attend. How can we get employees to come to these events? If you throw a party and no one comes, was it really a party? I don't want to seem flip about it, but my guess is the events you are referring to have lost their pizzazz and don't do much for those who are invited to attend. You need to host recognition events that create a buzz with employees, where fun things happen! Build anticipation: announce

73 that upper management will be serving the refreshments, list door prizes that will be given for attendance, hire a standup comedian -- that type of thing. Another possibility is your choice of time and venue. I worked with a hospital recently that held all recognition events during off hours so that employees had to stay an exh·a hour or two after what was usually already a long shift or even forced overtime. Talk about excitement! For employees who feel overworked and stressed, their preference for being thanked is to allow them to go home to their families. The last thing on their minds is "How can I spend more of my limited free time at work

8) Can too much recognition lead to constantly escalating forms of recognition or unfulfilled expectations on the part of employees? Hey, no one promised you a rose garden! Employee motivation today is a moving target. You've got to be in constant contact with your employees to determine what they most value and then find ways to systematically act on those desired forms of recognition and rewards as they perform well. Yes, you need to vary your forms of recognition, adding new things, experimenting, and so forth, but you can also stop doing other things that have run their course and are no longer very motivating to employees. The alternative is that if you keep doing the same things year after year, you'll likely end up with a very boring place to work. Variety is the spice of life and as you try new things---especially things your employees are interested in---your rewards will be higher morale, productivity, performance, and retention. Ce1iainly that should provide some motivation for you to stay the course! p.s.: The one form of recognition that never seems to get old is effective praise. If you are timely, sincere, and specific in thanking employees when they have done good work, this form ofrecognition tends to never get old.

9)What's the best way to really get employees involved in the decision-making process and get them invested in the process, that is, motivated to perform for the good of all? Without a doubt, the best decision making involves those people who are expected to implement the decisions being made! Ask their opinions, involve them in a discussion, or give them the authority to handle the situation as best they can. This is highly motivating for most people, and of course reaching goals they've set helps keep people going. As

74 you give people responsibility, they are bound to act more responsibly!"

IO)How is the best way to make recognition become part of an organization's culture? One step at a time. Create a motivation baseline and move in the desired direction a step at a time. Start small and build on your success. Ask, "Who wants to help?" and run with those individuals who see the need and are positive about the change. Build momentum, which can become a critical mass and lead to a quantum leap in which every manager in your operation one day knows the value of recognition and acts on it as a matter of course in his or her daily behavioral repertoire with employees. Creating a recognition culture is a messy, nonlinear process that involves taking time to assess what employees feel could most make a difference and then taking that feedback seriously in maldng change happen in the organization. Start with those employees who have the most energy for improving the level of recognition and build on your successes, learning along the way. Training is an imp01iant paii of raising awareness about the need to recognize employees systematically in meaningful ways, helping managers develop the skills they need to recognize others well, and setting the expectation of all managers that they need to make recognition a priority in their jobs. Regarding managers' performance evaluations, their ability to manage and motivate staff should be an integral paii of how they are evaluated in their jobs; otherwise, the activity is not likely to be taken seriously."

;.2 Conclusion This study includes two objectives: first, evaluating the influence of the demographic elements, and second, assessing the impact of the reward elements (both extrinsic and intrinsic) on the employees' performance in two Malaysian tourism organizations as the study=s sample population. The aim of choosing the study population is the ranking of Malaysia as one of the most important countries in the tourism industry, and therefore, this research is very importai1t for this nation as the industry is one of the main income generators. On the whole, based on the obtained results, first the relationship between the demographic and rewards elements is investigated. From these results, it can be

75 concluded that for different categories of gender, age, work experience, job position, marital status and education of the employees, there are not any differences among their performances. Therefore, the demographic elements brought in this study do not have any relationship with the performance and in fact, they do not change the performance levels in a significant marmer. Additionally, the results of the statistical analysis for the relationship between rewarding elements and employees' performance indicate that there is a significant positive relationship between pay, bonus, fringe benefits, promotion, appreciation, empowerment, and delegation in one hand and employees' performance on the other hand.

Every company needs a strategic reward system for employees that addresses these four areas: compensation, benefits, recognition and appreciation. The problem with reward systems in many businesses today is twofold: They're missing one or more of these elements (usually recognition and/or appreciation), and the elements that are addressed aren't properly aligned with the company's other corporate strategies. A winning system should recognize and reward two types of employee activity-performance and behavior. Performance is the easiest to address because of the direct link between the initial goals you set for your employees and the final outcomes that result. For example, you could implement an incentive plan or recognize your top salespeople for attaining periodic goals. Rewarding specific behaviors that made a difference to your company is more challenging than rewarding performance, but you can overcome that obstacle by asking, "What am I compensating my employees for?" and "What are the behaviors I want to reward?" For example, are you compensating employees for coming in as early as possible and staying late, or for coming up with new ideas on how to complete their work more efficiently and effectively? In other words, are you compensating someone for innovation or for the amount of time they're sitting at a desk? There's obviously a big difference between the two. The first step, of course, is to identify the behaviors that are important to your company. Those activities might include enhancing customer relationships, fine-tuning critical processes or helping employees expand their managerial skills. When business owners think of reward systems, they typically put compensation at the top of the list. There's nothing wrong with that, since few people are willing or able to

76 work for free. But the right strategy should also include an incentive compensation plan that's directly linked to the goals of your company for that period. You might want to include some type of longer-term rewards for key individuals in your organization. Historically, this has often included some form of equity ownership.

Benefits are another type of reward in a strategic reward system, and your employees are definitely going to notice the types of benefits you provide. Companies that don't match or exceed the benefit levels of their competitors will have difficulty attracting and retaining top workers. This is one reason an increasing number of businesses are turning to professional employer organizations like Administaff to gain access to a broader array of company benefits. However, you can't diminish the importance of recognition and appreciation as integral components of a winning strategic reward system. These two elements rarely receive the attention they deserve from business owners, which is amazing because they're the low-cost/high-return ingredients. Employees like to know whether they're doing good, bad or average, so it's important that you tell them.

Recognition means acknowledging someone before their peers for specific accomplishments achieved, actions taken or attitudes exemplified through their behavior. Appreciation, meanwhile, centers on expressing gratitude to someone for his or her actions. Showing appreciation to your employees by acknowledging excellent performance and the kind of behavior you want to encourage is best done through simple expressions and statements. For example, you might send a personal note or stop by the employee's desk to convey your appreciation. Another approach is to combine recognition and appreciation in the form of a public statement of thanks in front of the employee's co-workers or team, citing specific examples of what they've done that has positively impacted the organization. Now that you know what it should include, it's time to review your strategic reward system. Does it address compensation, benefits, recognition and appreciation? Is it aligned with your remaining business strategies? Is it driving the right behaviors for your company, as well as your performance goals? If it needs fixing, don't wait. It can mean the difference between your business' success and failure.

77 5.3 Recommendations From the findings and the conclusions of the study, the researcher recommends there is need to improve on gender equality in the study since most of them were found to be males leaving out women unemployed. Sometimes it's not always practical or possible to recognize employees with a cash bonus, pay raise or promotion. Even though extra money is helpful and useful in a tough economy, it doesn't mean employees will be any more motivated or conunitted. In fact, often cash isn't even what employees value the most. We know this because employees most frequently say they want a cash reward but, in repeated and controlled experiments, their behavior says something quite different. Most recently, according to the Currency of Reciprocity - Gift-Exchange in the Workplace, August 2011, workers were given an award equivalent 20% of wages or a non-cash semi-equivalent award where they could choose how to redeem. The results were eye-opening. The cash gift had virtually no measurable increase in productivity whereas the less costly non-cash award, resulted on average a 25% higher work performance. Interestingly, the more time and thought the company put into the reward, the higher the performance giving further credence to the old adage that it is truly "the thought that counts."

5.3.1 Rewards

Every company needs a strategic reward system for employees that address these four areas: compensation, benefits, recognition and appreciation. The problem with reward systems in many businesses today is twofold: They're missing one or more of these elements (usually recognition and/or appreciation), and the elements that are addressed aren't properly aligned with the company's other corporate strategies. Thanks from the top. have the top managers, send a handwritten note to the employee. This correspondence should be individual, clearly communicating the appreciation of the specific achievement and why it mattered.

Employee-led event. Without adding to the workload of the employee - invite them to present their initiative or lead a workshop or training seminar to others at the company. This is taking recognition to the next level because they are being asked to share their ideas even further.

78 Choose a variety of rewards. not everyone wants or needs a massaging backrest or gift certificate to the local Thai restaurant. So, when there is budget for an employee reward program (often designed with point accrual over a period of time) - think about your entire workforce demographic and offer a wide variety of rewards for employees to choose. Consider traditional choices such as practical merchandise, media, books, gift cards and travel as well as non-traditional choices such as an additional vacation day, a longer lunch hour for a week, tickets to a sporting event, cooking or pottery classes, or a paid day for the family to visit the nearest amusement park. Know your people enough for the offerings to be genuine rewards and not warehouse remainders!

The spoken word. nothing says value and appreciation better than saying so. Make sure your managers take the time to recognize and acknowledge employee achievements, initiatives, even behaviors by speaking out privately or in a group setting. Day to day words, when said with meaning and purpose, have a residual impact that can last indefinitely.

Celebrate and socialize. When a goal is reached, an initiative is implemented or an achievement is met - shout from the rooftops (or the Twitter-tops)! When appropriate, use social media to share the good news and, offline, consider organizing a gathering to "toast" the employees who deserve the recognition as a way to celebrate the accomplishment.

5.3.2 Work performance There is a need for companies to reassess the manner in which they communicate to both their employees and their customers. At the same time, there is also a need for these companies to organise the tasks at hand, design systems and processes,and re-evaluate and improve current management styles (Harmon, 2007).

Regarding work performance four (4) constructs were measured and financial performance emerged out as the highest, it had five items with means ranges from 3.51 to 3 .31 with an average mean of 3 .3 I; this was followed by customer service with also five 79 items which ranges from 3.35 to 3.12 with average mean of 3.12, followed by social responsibility with also five items which ranges from 3.19 to 2.80 with average mean of 3.00 and lastly, employee stewardship which also had five items with means ranged from 2.95 to 2.58 with an average mean of 2.83 and an overall mean of 2.96 rated high on rewards.

Mentoring; Job shadowing and mentoring are two rather unconventional methods that a supervisor might use to improve performance. Mentoring may help employees through interacting regularly with higher level employees who can counsel them on strategic ways to improve their performance. This could include handing over assignments to employees to test their skill, aptitude and performance, while coaching them on the right way to perform certain job tasks. For example, an attorney whose client communication skills fall below the law firm's expectations may be assigned to work closely with a senior-level associate or a partner in a mentor-protege arrangement. This arrangement gives the attorney opportunities to observe an experienced attorney's interaction and relationship-building skills with clients.

Discipline; Many employers erroneously view disciplinary review as a recommended improvement action in performance appraisals. While employee discipline may be justified in cases of misconduct and exceedingly poor performance, attendance or violations of company guidelines, it shouldn't be delayed until the supervisor conducts the employee's performance appraisal.

Training; Employers are obligated to provide their workers with all the tools necessary to do their jobs, and training and development are essential workplace tools. During the performance appraisal, when the supervisor reviews an employee's areas for improvement, offering opportunities for training are generally well-appreciated by employees who are genuinely concerned about improving their performance.

Performance improvement plans, or PIPs, are common in many organizations. A PIP is a document that contains very structured guidelines for improvement. Frequent meetings may be scheduled between the employee and her supervisor to discuss intermediate

80 improvements as well as milestones that the employee must achieve along the way for improving her performance. Generally speaking, a PIP is the employer's last-ditch effort before terminating an employee due to poor performance.

Improve your time management; you may not realise it, but a lot of time at work is usually wasted on doing things that don't help you get your work done. Time management is the ability to manage your time and to improve how you spend it. The first step of this is to identify how you spend your time. Have a look at your calendar this is a good place to start. Have a look for any meetings you go to, and if you really need to go to them. Perhaps start logging how you spend your day what tasks you perform, and how long they take. Once you can identify where your time is going, you can manage it easier and make cuts or time savings where appropriate, which is a great way to improve your work performance.

Prioritise Tasks; Most ofus, at one time or another, have felt this feeling. It's the feeling of having more to do that time to do it in. This is a common expectation that work will still get done, and you are expected to handle it. But, how do you solve it? If, for example, you have 10 hours of work to do today and only 8 hours to do it in, how do you get it done? Excluding overtime for this simple example, the way to overcome this problem is to prioritise your work. For each task you need to do, work out its priority. This could be self-determined (as in, you have the ability to give it a priority), or it could be determined by your team leader or another team. At the end of the process, you should have an indication on the importance of each task. Now, focus on the high priority tasks first. By definition, these are the ones that need to get completed first and are the most important. Once you complete these, or get them sufficiently progressed, you can move on to the next one. Depending on your role and the pmiicular tasks, it's more likely that the low priority tasks are OK not to be done, than a random selection of tasks that were not prioritised.

Keep a healthy work and life balance; while it may initially make sense to spend more time at work to get more done, this can have long term effects on your ability to do your job. You might be tempted to always work 10 hours a day or more, or to take your work

81 home with you so you can work on the weekends. Personally, this isn't something I do very often at all. I believe that you should put in a highly productive day at work, and once you leave, your work stays there. Sure, this day may be longer than normal you may start at 8 or 8:30 and finish at 6 but once you finish, you have finished. Work stays at work, and once you get home at night you don't do any more work. Your weekends are free to do non-work related activities seeing friends and family, housework, shopping, anything you like. This is called a work/life balance you should be balancing your work activities and your other life activities. If you let your work overtake your life, you'll end up feeling tired, stressed, and possibly burnt out which in the long term is more of a disadvantage than something to improve to your work perfo1mance!

5.3.3 Rewards and work performance Even in this difficult economic time, reward and recognition programs are alive and well. But just having a program in place is not enough. Companies need to make sure their program is delivering expected benefits and results and that recognition is actually occmTing, formally and informally, frequently and with a personal touch. From manager training courses to creative rewards to new technology, there are many ways to easily and inexpensively improve recognition programs.

Communication is essential; in each job that I've worked - both IT and non-IT - I've realised that communication is one of the most important aspects of the job. Sure, you can go to work, do your job and try to do it with as little communication as possible - but I don't think you'll get very far. Improving communication in the workplace involves: Socialising and networking where appropriate. Being polite, asking how people are and getting to know them both personally and professionally can be advantageous to your career and your job. They say it's not what you know, it's who you know, which I believe to be true. Keeping people informed; make sure you keep relevant people up to date on what you're doing and when you're doing it. This includes team members, managers, and anyone else who is involved in your work. Be proactive about this - try to anticipate them asking a question and give them the answer before this. This may mean a daily status update to your manager, or keeping people informed at each major milestone of a critical task. 82 Asking questions; I don't believe there's such a thing as a stupid question. I would rather ask a hundred questions than make a fatal mistake because I didn't ask a question - this will make you look a lot worse! Ask questions of people if you're not sure, or if there's anything that you need to know. This may lead to more info1mation or more realisations on how you can improve your work performance.

When the economy turns around, you don't want a large percent of your employees leaving for new opportunities (Byam 2013). "If you can do a good job now to make them feel appreciated and let them know they are essential to the company's success you can help ensure they will stay with you, and remain engaged and productive for the long term.

Improving work/life balance is another powerful reward. "If a team worked ove1iime to complete a big project, the supervisor could anange for dinner to be sent to employees' houses," says Byam. "The note could say, 'Since you put in so much extra time at work, I wanted to save you some time in the kitchen.' Imagine the response from the employee and their family." Many perfo1mance appraisals are an evaluation of quantitative and qualitative achievements during a one-year period. During this time, measurements related to the employee's productivity, functional expe1iise, core competencies and professional traits factor into an annual performance evaluation. When these measurements fall sho1i of the employer's expectations, it is the supervisor's obligation to discuss the employee's performance and provide guidelines for improvement. For example, an assembly worker whose production rate slips below the company's expectations will be counseled by her supervisor on ways to improve speed, quality and accuracy on the production line.

Be aware of your manager's goals; Having your own goals is a great idea. Your manager will also have their own goals for their team. It's a good idea to be aware of these, as if they're goals for the team they have usually been created based on strategies from their managers. Being aware of these goals will help you to improve your work performance, as you will know the reason why something needs to be done. It will also help you in

83 deciding on priorities for your work and coming up with ideas and suggestions for the team. Let's say that one of your manager's goals is to improve the time taken to get documentation reviewed by users. It may cmTently take them two weeks between releasing a document and getting the signoff. If you're aware of this goal, you can come up with ideas on ways to improve it and even work on tasks which will help your manager achieve this goal - which is a great way to improve your performance at work!

Positive Attitude; your attitude goes a long way to your performance at work. If you're in a bad mood (which, sometimes just can't be helped), this can be perceived as being difficult to deal with and may have a negative impact on your job. However, if you're in a cheerful and positive mood, this will give people the impression that you're in control of your work and that you're good at doing your job. Other ways to improve your attitude at work are: Think of the bigger picture or overall reason that things need to get done. If you feel you have a negative attitude about a certain task, project or decision, try to understand it from other people's point of view. It may be a good fit for the overall strategy of the company, even though it is an inconvenience to your team. Focus on the positives in each person. If you notice that some people you work with are annoying, incompetent, lazy or anything else, don't start getting angry or negative towards them. Instead, try to focus on the positive in that person. This will not only help improve your opinion of that person, it will make you look like someone who is good at dealing with people that others can't - which I'm sure we've all come across in our jobs! Smile - Smiling is a great way to show people you're in a good mood, calm, happy and confident. Practice smiling at work and you'll notice the effect it has, both on yourself and others! i.4 Areas for Future Studies As there was a discussion on more related potential variables to the rewards, which can be the employees ' performance predictors, one of the main things that should be considered in future studies is taking them into account. Some of them include the number of children, the home situation (rent, landlords), and the income amount. These items help to analyze the financial rewards and their relationship with performance better. For example, the wealthy people perhaps consider the intrinsic rewards more important than extrinsic.

84 The other suggestion for improving future studies is to consider the previous studies more based on a more variety of situations in terms of geographic, economic, and cultural elements to make the study more popular and to know the differences of priorities better.

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92 Ggaba Road-Kansanga. P.O. Box 20000, Kampala, Uganda. KAMPALA Tel: + 256-414-266813, +256-414-267634 IU INTERNATIONAL Fax: +256-414-501974. Cel:+256-706-251084 mB11 E-mail: [email protected], UNIVERSITY Website: www.kiu.ac.ug

COLLEGE OF ECONOMICS AND MANAGEMENT DEPARTMENT OF HUMAN RESOURCES AND SUPPLY MANAGEMENT,

Thursday 30th April, 2015 Our Ref: KIU/CEM/HOD/30-04-2015/01

Dear Sir/Madam

RE: INTRODUCTORY LETTER FOR BAHATI DEMIANO REG. NO. BHR/38471/123/DU

This is to introduce to you the above named student who is a bonafide student of Kampala International University. He is currently pursuing a Bachelor's Degree in Human Resource Management in 3rd year, 2nd semester of study.

Topic REWARDS AND WORK PERFORMANCE Case Study SELECTED BUSINESS ENTERPRISES IN MAKINDYE DIVISION

It is in this connection that w.e are kindly requesting your good office to avail him wi~h possible data/information he may require for utilizing in the preparation of a research Report which constitutes an essential component of his course study.

Any information shared with him from your department/section/organisation shall be treated with Jtmost confidentiality.

~ SAND SUPPLY MANAGEMENT

• • • I 4 II SPEKE RESORT MUNYONYO ~) MUNYONYO COMMONWEALTH RESORT MUNYONYO P.0 BOX 3673, Kampala-Uganda l)',,\ \\0:--S:\\ LALi II I . \, I l . Y . I Tel: +25641 417 760 000, +256 414 227 111 E-mail: [email protected] Website: www.munyonyocommonwealth.com

OFFICE OF THE DIRECTOR OF HUMAN RESOURCES Date: Thursday 28th April, 2015 Mr. Mbago Ronald The Head of Department, Human Resources and supply management KampaJa International University P. 0 BOX 20000, Ggaba Road Kampala-Uganda

Dear Sir,

RE: RESEARCH ACKNOWLEDGEMENT OF BAHATI DEMIANO REG. NO. BHR/ 38471 /123/DU With reference to your letter dated 30th -April-2015 in which you requested our Organisation to Conduct his Research Study in Our Organisation, I am giving my consent to be part of the his research study Entitled "Rewards and work performance; a case study of selected business enterprises" as in partial fulfillment of the requirements for the award of the Master's degree in Human Rights and development. This is to acknowledge that the above student has conducted his research study at our premises; he has to collect relevant information through questionnaire, Interviews, observation and Document analysis in relation to our manuals. It is our hope that he has received adequate data during this period. We thank you for entrusting us as a study area and we wish him a successful completion of this study, for any clarification refer to our office Truly yours,

DIRECTOR OF HUMAN RESOURCES Tel: +25641 417 760 000 BUZIGA COUNTRY RESORT Plot 571, Kirudu Road, Buziga-Gaba P.O Box 1759, Kampala-Uganda Tel: +25641 4267034 Email: [email protected] OFFICE OF THE DIRECTOR OF OPERATIONS Thursday 18th March, 2015 The Head of Department, Human Resources and supply management College of Economics and Management Kampala International University P.O Box 20000, Ggaba Road Kampala-Uganda

Dear Mr. Mbago Ronald.

SUBJECT: RESEARCH ACCEPTANCE LETTER FOR DATA COLLECTION FOR SAHATl DEMIANO REG. NO. BHR/ 38471 /123/DU With reference to your letter dated 30th -April-2015 in which you requested us to allow the above student conduct a Research Study, Entitled "Rewards and work performance; a case study of selected business enterprises in Makindye division, Kampala, Uganda" as in partial fulfillment of the requirements for the award of the Bachelor's degree in Human Resource and Management. This is to acknowledge that the above student has conducted his research study at our premises; he has to collect relevant information through questionnaire, lnterviews, observation and Document anaJysis in relation to other relevant reading materials. It is our hope that he has collected and received the necessary data during this period.

I am giving my consent to be part of the his research study and we wish him a successful completion of this study, for any clarification refer to our office Yours truly,

DIRECTOR OF OPERATIONS Tel: +25641 4267034 Cc. General Manager APPENDIX IIA: QUESTIONNAIRE TO DETERMINE REWARDS

Direction: Please write your preferred option on the space provided before each item. Kindly use the rating guide below: Instructions: Rating Description Strongly Agree (4) You agree with no doubt at all Agree (3) You agree with some doubt Strongly Disagree (2) You disagree with no doubt at all Disagree (1) You disagree with some doubt

A. INTRINSIC REWARD

Empowerment ...... 1. Encourage in-the-moment feedback ...... 2. Cultivate the executive mentality ...... 3. Present new challenges and opportunities ...... 4. Respect employees' boundaries ...... 5. Give them flexibility

Identification and Appreciation ...... 6. Demonstrate That You Value People ...... 7. Share Leadership Vision ...... 8. Share Goals and Direction ...... 9Trust People ...... 10. Provide Information for Decision Making

Delegation ...... 11. Delegate Authority and Impact Opportunities, Not Just More Work ...... 12. Provide complete job instructions ...... 13. Don't look for perfection ...... 14. Stop believing you're the only one who can do the job properly ...... 15. Focus on teaching skills.

96 B. Extrinsic Reward Pay/Salary ...... 16. Provide Frequent Feedback ...... 17. Solve Problems: Don't Pinpoint Problem People ...... 18. Listen to Learn and Ask Questions to Provide Guidance ...... 19. Check on progress ...... 20. Help Employees Feel Rewarded and Recognized for Empowered Behavior

Promotion ..... 21 Meet people where they are many are just getting started. Keep it simple and make it practical and relevant to their work and their life ...... 22 Find someone's hook maybe it's local food, volunteering, or the reuse/sharing economy. These actions can then "on ramp" people to energy and waste ...... 23 Identify and use your champions and the social network peer-to-peer learning and social norming scales in a way that experts don't...... 24 Keep programs fresh, relevant and fun, Provide lots of opportunities to 'try once' or 'try for a period of time' before pushing all-in habit change ...... 25 Think long term , it's a journey that wil~ last a lifetime and will take many campaigns, lots of projects. But over time, you will get lots of impact.

Bonus ...... 26. There is profit sharing by rewarding individuals based on the overall performance of the company, they feel like a valued contributor and may be motivated to improve their own performance. , ...... 27. There are year-end-bonuses which are these are often tied to individual performance milestones and are paid out in one lump sum ...... 28. We have production-based bonuses - Rewards based on meeting or exceeding goals, whether monthly or quarterly or however often, can create healthy competition that contributes to a better bottom line. These bonuses can even encourage cooperation among team members, building a more amiable workplace environment.

97 ...... 29. We have non-cash bonuses - from gift cards to travel deals to flexible scheduling to telecommuting opportunities to extra days off, there are plenty of ways to show your appreciation without spending a lot of money ...... 30. First, communication is of the utmost importance. Let employees know what the bonus is, how much it is and when they can expect to get it.

Fringe Benefits ...... 30. I am provided with medical and dental insurance ...... 32. Use of a company car ...... 33. Housing allowance ...... 34. Educational assistance ...... 3 5. Vacation pay, sick pay, meals

APPENDIX IIB: QUESTIONNAIRE TO DETERMINE WORK PERFORMANCE

Direction: Please write your prefe1Ted option on the space provided before each item. Kindly use the rating guide below: Instructions: Rating Description Strongly Agree (4) You agree with no doubt at all Agree (3) You agree with some doubt Strongly Disagree (2) You disagree with no doubt at all Disagree (I) You disagree with some doubt

E. Financial performance ...... I Profitability, there is current Profit Sharing ...... 2 Liquidity, our assets can easily be converted into cash ...... 3 Utilization- Improved business profits ...... 4 Increased employee responsibility ..... 5 Investment - shareholder ratios

98 F. Customer service ...... 6. Patience ...... 7. Attentiveness ...... 8. Clear Communication Skills ...... 9. Knowledge of the Product ...... I 0. Ability to Use "Positive Language

G. Social responsibility ...... 11. Acting Skills- Communicating realistic but challenging job expectations and making employees accountable for their decisions and actions result in noticeable improvements in employee tardiness, absences, and organizational commitment ...... 12. Time Management Skills ...... 13. Ability to "Read" Customers ...... 14. A calming presence and enhanced quality of work life ...... 15. All employees are treated fairly by implementing standardized procedures that promote consistency throughout an organization

H. Employee stewardship ...... 16. Ability to Handle Surprises ...... 17. Persuasion Skills ...... 18. Tenacity ...... 19. Closing Ability ...... 20. Willingness to Learn

99 APPENDIX IIC: INTERVIEW GUIDE

Direction: Please may I request you to write your preferred ANSWER on the space provided 1) Have you recently attended any company training? 2) Have you or your boss initiated a meeting to discuss your short-term or long-term career goals? 3) Our managers know they should recognize their employees, but they feel they are too busy to do so. What can we do? 4) Have you taken time to perform a job analysis or your performance over the last few months at your present work? 5) Have you networked with colleagues in other divisions to find out the nature of work in different groups or with the Human resources personnel to analyze the other oppo1iunities that could excite you to a more satisfying job? 6) Does the employee effectively communicate with others? 7) Does the employee adequately perform the functions of their job? 8) How would you rate the quality of the Employee's Work? 9) Is the Employee Capable of Working Independently with little to no supervision? 10) Does the Employee Take Direction and Follow Orders Well? 11) Can Employees Recognize Their Peers? 12) Are You Delivering What Employees Want? 13) If you recognize one person, aren't you not reward everyone else? That is, what do you do about the employees who feel left out? 14) If you praise employees, won't it be more difficult to discipline them when necessary? 15) My company does a lot to recognize their employees, but employees report they don't receive much recognition. What's going on? 16) How can we get top management to support recognition activities? 17) Our recognition programs are feeling stale. How can we reenergize them? 18) We hold some recognition events that a lot of employees even ones receiving the awards do not attend. How can we get employees to come to these events? 19) Can too much recognition lead to constantly escalating forms of recognition or unfulfilled expectations on the part of employees? W) What's the best way to really get employees involved in the decision-making process and get them invested in the process, that is, motivated to perform for the good of all? 11) How is the best way to make recognition become part ofan organization's culture? 100 APPENDIX III: THE ADOPTED TIME FRAME OF THE STUDY

Feb April. March June.2015

No Activity

1 Rep01i Preparation

2 Data Collection And Review

3 Data Processing, Coding, Typing Editing

4 Submission of Final Report

5 Rep01i Preparation

6 Data Processing, Coding, Typing Editing

7 Submission of the First Draft of The Report

8 Discussing The Results Wit The Supervisor

9 Reviewing and Correcting Typesetting Etc.

10 Submission of Final Draft of the Rep01i

101 APPENDIX IV: THE ADOPTED BUDGET FOR THE STUDY.

NO. DESCRIPTION QUANTITY UNIT COST Total 1. Stationery A) 3 Reain of Photocopying Paper 3 8,500 25500 B) 1 Ream Ruled Paper 1 7,000 7,000 C) 5 Floppy Diskettes 5 1,000 5,000 D) 6 Bic Pens 6 200 1,200 E) 1 Flash Disk of2.0 GB 1 28000 35,000 F) 6 Pencils 6 100 600 Sub Total 224,300 2. Secretarial Services A) Typesetting 35,000 35,000 B) Photocopying 15,000 15,000 C) Binding 3 copies 15,000 45,000 D) Printing 100 per page 1500 150,000 3. Travel Costs 285000 4. Data Treatment and Analysis a) Literature Collection 40,000 b) coding 60,000 c) interpreting and analysis 120,000 d) Appointment schedules 40,000 Subtotal 290000 Grand total 692,300

102 APPENDIX V: SKETCH MAP OF THE STUDY AREAS

,,(

..•~ ..

Kiwempe Zone

N

w-----+---- E

s

Key; Main Roads

- Water bodies

Study cites (Olympia, Buziga County, Munyonyo Commonwealth Resort)

103