Chapter 1 – Introduction
Rewards, Motivation and Job Satisfaction are important and significant variables to the organization success as it is an employee’s attitude towards their job. The higher the job satisfaction, the more the employees will hold a positive attitude towards their jobs. Similarly, the organization will have low turnover rate and better in talent retention. (Sarwar & Abugre, 2013)
Therefore, an organization’s strategy is linked to job satisfaction of the employees as it has direct impact on productivity and profitability. (Khalid, et al., 2011) In many organizations, employee turnover is a major issue because of the cost involved with new hiring and training. The ...view middle of the document...
(Gohari, et al., 2013)
Over the years, Gas has increased the significant improvement by acting in accordance with the company strategy by providing a reasonable reward and recognition program for the employees. As a result for the management, they have to know what really motivate employees and not all the same things that will inspire other employees. When employees receive attractive rewards and recognition, they will be closer and committed with the organization and perform better. Indeed, rewards improve the level of productivity of the employees on their jobs and result an increase rate of success and profitability of the organization. (Jehanzeb, et al., 2012)
Rewards are classified into 2 types that employees look for in their organization i.e intrinsic and extrinsic rewards. Extrinsic rewards are the basic benefits given by the organization such as pay/salary, performance bonus and incentives for extra works. Intrinsic rewards are rewards that come from the work itself such as emplowerment, recognitions, delegation and training. Other rewards include the relationship with co-workers on the job and gain support from the supervior as well. (Jehanzeb, et al., 2012)
Therefore, intrinsic reward is more relevant related to job involvement while the extrinsic reward is to satisfy the desires of the employees where they will be more ongoing committed and loyal for the organization which lead to more customer orientated and better service satisfaction. (Jehanzeb, et al., 2012)
Furthermore, the reward program should be linked to inspire and motivate employees to perform based on the organizational business strategy which will attract talent, retaining skilful workers, capabilities and skills that are needed to align with the strategic goals and develop a strong structure and good culture. However, the reward program has to generate positive performance of the employees in the positive manner is expected by the management. As a result, the key performance index used in Gas to measure employees’ performance has to know what type of training requirement, promotions for employees, feedbacks and job rotation. (Jehanzeb, et al., 2012)
Without a doubt, the intrinsic and extrinsic rewards do motivate the employees and it leads to achieve a higher performance level. However, rewards are depends on the profts earned by the organization. Then again, salary and bonus difference between the low and high income employees will be affected and cause a low morale, low productivity and lack of commitment. Generally, the highly committed employees are more involved and oriented to their jobs based more on intrinsic rewards compared to those extrinsic one. (Jehanzeb, et al., 2012)
Motivation is a process that simulates, strengthen and continue behaviour and performance. Motivation encourages employees to perform actions effectively which helps them to achieve their goals. In return, it can inspire them in their work and improve...