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CHAPTER 1: INTRODUCTION
1.1 Background of the Study
Salespeople play an important role in an organization as the marketing success of the

products depends on them. They represent the company in dealing with the customers
and influence the overall customer satisfaction with a purchase (Westbrook, 1981).
Salespeople are categorized into many different industries such as retailing, services,
manufacturing, insurance, utilities, and health care and government agencies. Among
these industries, retailing industry has been one of the most active sub-sectors in the
Malaysian economy. Retail is the second biggest contributor to the national GDP
which contributed RM31,081 million in 2000 (Eighth Malaysia Plan, 2001). About
1.6 million people were employed as salespeople in this sector in 2000 which consists
of 17.1% of the total employment in Malaysia (Eighth Malaysia Plan, 2001).
Retail salespeople play an important role in retail outlets. They assist customers in
finding what they are looking for. They describe a product's features and demonstrate
its use to the customers besides provide information about warranties, the meaning of
manufacturers' specifications, and the types of options and financing available. In
addition, retail salespersons may also help to arrange for mailing or delivery of
purchases, prepare displays, receiving payments and bagging or packaging purchases.
They are the person that influence customer expectations concerning the product and
thereby reduce the likelihood of disconfirmation and dissatisfaction (Grewal &
Sharma, 1991).
Therefore, the motivation of sales force is widely recognized as a crucial component

of the organization strategy to gain competitive advantage (Pullins, 2001). Motivated
salespeople are always more productive and creative. Danish and Usman (2010)
defined motivation as a factor that put forth a driving force in our works and actions.
Stokes, Riger, and Sullivan's (1995) asserted that motivation relates to job
satisfaction, commitment, and even intention to remain in the organization. Therefore,
motivations to perform better only exist when there is a satisfaction of the rewards
given by the organization. Organizations have strived to provide the best reward
system to retain their experienced salesperson as well as attracting new pools of
salespeople to work in their organization.
In the early 1900s, Frederick Taylor, the father of scientific management has
developed a philosophy of management which claimed that money is the prime
motivator of people’s work efforts. He argued that the employees should be paid from
30 percent to 100 percent higher wages in return for learning to do the job and for
regularly completing the assigned task (Locke, 1982). Therefore, before World War
II, business and industry tied compensation program to productivity. However, after
World War II, the belief of money as the prime motivation factor for performance
was seriously challenged. By the sixties, Herberg and McGregor, the behavioral
scientists with humanistic orientations developed a two factor need theory of
motivation that divided rewards into two categories which were intrinsic and
extrinsic. The theory claimed that intrinsic rewards are the real motivator of
performance while extrinsic rewards were only designed to prevent dissatisfaction
with one’s job and do not contribute in motivating performance. This differentiation
between extrinsic and intrinsic rewards has become a foundation for a different
approach in managing the reward system (Kanungo & Mendonca, 1988).
Research on rewards preferences among employees and salespeople has been

analyzed in a few ways by researchers. Dubinsky, Anderson and Mehta (2000) argued
that employee reward preferences vary depending on one’s position in the
organization. Weaver (1976) perceived that different categories of workers have
different preferences work, promotion, job security, short working hours with much
free time, and high income. Furthermore, Kovach (1995) found out that reward
preferences varied considerably among white and blue collar employees, as well as
among the supervisors and subordinates.
Besides that, there are also researchers that claimed that rewards preferences differ
among different career stage (Cron, Dubinsky & Michaels, 1988). Moreover,
Churchill, Ford and Walker (1979) claimed that the attractiveness of alternative
rewards depends on a salesperson personal characteristic. They have identified seven
different types of rewards in an organization’s rewards systems. Pay and security is
claimed to be lower-order rewards that is highly valued by mostly the older workers
while recognition, promotion, liking and respect, sense of accomplishment and
personal growth are claimed to be higher-order rewards that is highly valued by
mostly highly educated and unmarried salespeople.
1.2 Problem Statement
An organization’s rewards system was arguably the most significant human resource
system for effective strategy implementation (Montemayor, 1996). Therefore,
whether monetary reward is the prime motivator for performance has become a hotly
debated issue for centuries. Frederick Taylor claimed that money which is the prime
motivator for performance is what the employees wanted most while Herberg and
McGregor claimed that intrinsic rewards are the real motivator of performance while
extrinsic rewards such as pay do not contribute in motivating performance.
Most literatures focused on analyzing the usefulness of monetary rewards in

generating a higher productivity or profit as they motivate employees to work harder
(Coyle-Shapiro, Morrow, Richardson & Dunn, 2002; Rynes, Gerhart & Minette,
2004). However, little empirical studies have investigated other aspects in the rewards
system towards the motivation of employees and conducted in Malaysian context.
Even for salespeople who are the income generating forces in an organization,
researchers seem to generalize them with the other employees in the company and
identify monetary rewards as their main focus of research in motivation.
1.3 Research Questions and Objectives
1.3.1 Research Questions
1．Will different types of rewards affect and motivate retail salespeople?

1. Which type of reward is most valuable among retail salespeople?
1.3.2 Objectives
The research is conducted to:

1. Investigate the relationship between types of rewards and motivation of retail
salespeople.
2. Investigate the statement made by Frederick Taylor that money the prime
motivator factor whether is it applicable to retail salespeople.
1.4 Significance of the Study
This research is significant in providing the management and the human resource
department with information that can be used to modify the sales force rewards
system. The aspects sales force rewards system illustrate how one might assess the
general sales job and determines the effort level exert by a salespeople in an
organization.
As most of these researches are conducted in the 1990s, this research in year 2010
will portray the rewards preferences changes over the years among retail salespeople.
Moreover, this research challenges the previous beliefs that monetary rewards are the
prime motivator in the eyes of the retail salespeople. However, in contrary to
Herzberg’s two factor need theory of motivation, we do believe that money will
motivate the retail salespeople to perform.
1.5 Outline of the Study
This study is organized into 5 chapters. Chapter 1 provides an overview of the reward
system of retail salespeople while chapter 2 reports on the literature review
concerning this topic. On the other hand, chapter 3 describes the data source and
research method used. Chapter 4 will display the result of this study while Chapter 5
will discuss on the finding, implication, limitation and recommendation of this study.
CHAPTER 2: LITERATURE REVIEW

2.1 Theoretical/Conceptual Foundation
2.1.1 Expectancy Theory
Most empirical studies used the expectancy theory to determine the effort level exert
by salespeople given different types of rewards. (Churchill et al., 1979; Ford,
Churchill & Walker, 1985). Expectancy theory was first developed by Vroom (1964)
stated that people will act based on their beliefs, attitudes and perception which was
leaded by their desires to enhance pleasure and avoid pain. Based on Vroom’s
concept, Porter and Lawler (1968) refined the theoretical model and stated that the
amount of an individual’s effort would be determined by the expectations of attaining
outcome and values placed on an outcome by a person.
This theory holds a major position in the study of work motivation (Van Eerde &
Thierry, 1996). It also serves as a basis for research in various subject areas, such as
goal setting (Garland, 1984; Klein, 1991), performance appraisal (Daly & Kleiner,
1995), decision making (Edwards, 1961) and verbal conditioning (Dulany, 1968).
Expectancy theory is known as theory of motivation and was summarized by the

formula, MF= E×I×V, where MF was referred to motivational force. It points at three
instruments to increase an employee’s motivation:
(i) Increasing the subjective expectations of greater effort would lead to higher levels
of performance (Expectancy, E),
(ii)Strengthening the perceived link between performance and rewards
(Instrumentality, I),
(iii) Ensuring that employees valued the rewards given for high performance
(Valance, V).
Expectancy theory identifies three factors that play a reciprocal role in motivation.
The first factor is the effort–performance (E-P) linkage which is concern of the
individual’s perception that effort is positively correlated with performance. The
higher this E-P linkage is, the more motivated the individual will be to exert effort.
The second factor is the called performance–outcome (P-O) linkage. It involves a
person’s expectation that his rewards are intimately linked to his level of
performance. Therefore, the higher this P-O linkage is, the more motivated an
individual will be. The third factor is called valence which refers to the degree to
which an individual values a particular reward he or she receives (Fudge & Schlacter,
1999). The higher this factor is, the more motivated the individual will be. However,
as a result of individual differences, people often place different valences to different
rewards (Gerhart, Minkoff & Olsen, 1995).
The purpose of this study is to investigate how different types of rewards will affect a
retail salesperson’s motivation. According to (E-P) linkage and (P-O) linkage, if a
salesperson wishes to hit a sales target, he or she will increase the effort level and
when he or she achieves the sales target, she expects a performance pay or bonus. On
the other hand, the third factor, valence, stated that the higher the individual view the
reward, more motivated he or she will be. This research assumes that the expectancy
and instrumentality factor is held constant throughout the research. All salespeople
are assumed to have same level expectancy and instrumentality towards the rewards
given. This research will determine which will be the most valuable reward to a retail
salesperson. The six rewards selected should increase the motivation of a salesperson
to increase their effort level exerted as apply to our research. Nevertheless, this is
only applicable when he or she perceived that the reward is valuable to the
performance.
Figure 1: The Expectancy Theory Model
EFFORT
EXPECTANCY (E-P LINKAGE)
PERFORMANCE
INSRUMENTALITY (P-O LINKAGE)
OUTCOME VALENCE
MOTIVATIONAL STATE
Source: Isaac, R. G., Zerbe, W. J., & Pitt, D. C. (2001). Leadership and motivation:
the effective application of expectancy theory. Journal of Managerial Issues, 13(2),
212-226.
2.2 Review of the Prior Empirical Studies
2.2.1 The relationship between Pay and Motivation

Pay is considered the most significant rewards to employees. Pay is normally divided
into a few categories. The most hotly debatable category however is variable pay
schemes as employees are typically motivated to perform when pay is linked to
performance (Eriksson & Villeval, 2008). Performance-related pay helps firms to
attract the most productive employees and weed out the less productive ones. In
contrast, fixed pay schemes have less incentive and motivational power and they are
also less able to sort employees.
Shahzad and Bhatti (2008) conducted a study to examine the relationship between
compensation plans and collisions on employee motivation in an organizational
profitability. The study distributed questionnaires to a sample of 76 employees from
10 major textile industries in Faisalabad. However only 50 respondents responded
which indicated a respond rate of 66%. The findings showed a positive relationship
between compensation, motivation and organizational profitability. The research
concluded that organization will be more profitable if their compensation plans are
designed in giving basic pay and social pay to motivate employee.
Furthermore, research was also done to investigate the impact of the fixed and
variable pay towards employee attitudes and performance (Kuvaas, 2006). Data was
collected through e-mail questionnaires from a randomly selected 557 employees in
business unit A and 550 employees in Unit B in Norwegian multinational company.
The study gained a respond rate of 55% from Unit A and 57% from Unit B. The
research found out that there was a positive relationship between pay for performance
and the motivation of employees.
Based on this two past studies which is directed towards employee, this research
believes that pay is also significantly related to the motivation of retail salespeople as
they are also given sales commission other than fixed salary for the sales they
achieved. Therefore, this research suggests that pay also motivates retail salespeople
in Malaysia to exert more effort.
H1 : There is a positive relationship between pay and motivation of retail salespeople.
2.2.2 The relationship between Job Security and Motivation
As workforce reductions have become more common nowadays, job security has
became a factor is of increasing importance to employees. Job insecurity may
threaten the relationship between employee and employer (Probst, 2002). When
organizations fail to provide employees with expected levels of job security,
employees tend to give negative work attitudes.
Therefore, a study has been done by Emberland and Rundmo (2009) to investigate
how job insecurity will influence the employees’ work behavior. Questionnaires were
randomly mail to 2,000 adult citizens in Norweign. The study received 260 returned
which involved 54% of female respondents and 46% of male respondents. The study
concluded that there is a positive relationship between job insecurity and negative
work behaviors. When a person perceived that his or her job was not secure for the
future, he or she may reduce the effort in the job because the thought of leaving the
organization always exists.
A research was also done by Fried, Slowik, Shperling, Franz, Ben-David, Avital and
Yeverechyahu (2003) to test the relationship between job security and motivation.
Data is collected from a sample of 111 professional blue collar employees that are
randomly selected from 12000 employees in Israel. The result indicated that job
security does not directly influence job motivation and performance. The research
concluded that motivation is influenced by role clarity and not the level of job
security. When job security was high, motivation on performance may be low. On the
other hand, when job security was low, motivation on performance may be low too.
Even though some of the studies do not support the positive relationship between job
security and motivation, this research still assume that job security is positively
related to motivation. This assumption is supported by a study done by Danish et al.
(2010) which aimed to examine the relationship between job security, satisfaction and
motivation of employees. 220 responses were collected from employees in Pakistan
through a convenience sampling technique. The results showed a positive relationship
between job security, satisfaction and work motivation. Therefore, this research
proposes that when retail salespeople find their job secured, their level of motivation
would be higher.
H2 : There is a positive relationship between job security and motivation of retail

salespeople.
2.2.3 The relationship between Promotion and Motivation
Promotion is another significant reward that an employer may use to motivate their
employees (Wong & Wong, 2005). Maclean (1992) divides promotion criteria into
three criteria which are formal, informal and career contingency criteria. Formal
criteria are factors that associate with formal qualification and experiences while
informal criteria deal with a person’s religion and social class. Career contingency on
the other hand deal with marital status, age and sex.
Wong et al. (2005) conducted a research investigating the relationship between

promotion and teachers’ motivation to perform. Data was collected from three
samples of 184 school teachers and 33 principals in Hong Kong. The results
shows that teachers emphasized more on 5 dimensions which were
teaching ability, administrative ability, relationships with decision
makers, experiences and social affiliation which would directly affected their
motivation level. This research concluded that promotion was positively related to
work outcome.
Moreover, Gaines, Tubergen and Paiva (1984) also investigated the relationship
between promotion instrumentality and motivation towards the promotion of police
officers. Data was collected from the sample of 40 officers of from 2 Connecticut
Police Departments in USA. This survey divided the officers into Type I and Type II.
Type I officers were younger, less experienced and less education than Type II
officers. This study concluded that younger, less experienced and less education
police officers emphasize more on promotion instrumental satisfaction to motivate
them in their job performance.
According to both past studies on teachers and police officers, this research proposes
that promotion is positively related to motivation of retail salespeople as most retail
salespeople nowadays are young people that emphasize more on promotion.
H3 : There is a positive relationship between promotion and motivation of retail

salespeople.
2.2.4 The relationship between Recognition and Motivation
Recognition or full appreciation for task completed is an important motivator factor.

Many sales managers use the recognition programs to motivate their sales force.
Recognition programs are defined as a formal periodic acknowledgement of
performance or target accomplishments of individual salespeople. Under recognition
is usually some symbolic award such as membership in President’s Club, rings,
plagues, medals, prizes or other merchandise (Wotruba, Macfie & Colletti, 1991).
According to Wotruba et al. (1991), recognition programs are separated into 5

elements which include recognition symbols, display option, meaningful presentation,
program promotion and review updating. Data was collected using a random
sampling technique from Dun & Bradstreet's Directory of Businesses. Out of 7000
mail survey which had sent to sales, marketing, or human resource executives in
targeted firms, only 254 respondents responded. The analysis of the research shows
that there are 3 main issues which are related to recognition and motivation program.
Firstly, firms that recognize 31-50% of their salespeople constitute the most effective
practice. Secondly, the results pointed out that top management involvement in
recognition of employees will definitely cause rise in motivation. Thirdly, the results
also stated when more elements are added in the award presentations, the more
effectively the motivation program will be.
On the other hand, Cacioppe (1999) conducted a study comparing 2 popular

companies’ incentives systems which are Trigon Blue Cross Blue Shield, a US Health
Insurance Company and Motorola. The result showed that there are 4 categories of
team recognition rewards which are direction, support, reinforcement, and celebration
that could be used to motivate team performance. The results concluded that
organizations should reward and recognize their employees wisely since it positively
relates and affect the motivation of employees, thus, affect the whole performances
and motivations of organization.
Therefore according to these two past studies on employees’ motivation, this research
predicts that recognition is positively related to motivation of retail salespeople as
recognition programs are also implemented in most retails stores.
H4 : There is a positive relationship between recognition and motivation of retail

salespeople
2.2.5 The relationship between Sense of Accomplishment and

Motivation
Sense of accomplishment is the feelings of success and satisfaction that derived from
a completed task. Employees would be motivated to carry on in tasks and had the
desire to learn additional skills if they fell that they were able to handle and achieve
their target (Csikszentmihalyi, 1990). Ross (1995) conducted a research among the
employees in hospitality industry to investigate the relationship between sense of
accomplishment and employees’ motivation. 274 questionnaires were returned from
a total of 400 distributed questionnaires to employees that are randomly selected from
major hotels in the Far North Queensland tourist city of Cairns. The study found out
that there is a positive relationship between sense of accomplishment and employees’
motivation.
.
Besides that, Zabel, Steen and Zabel (2006) also conducted a research to investigate
the relationship between types of rewards towards the motivation of teachers. They
believed that the rewards rather that pay are more significant to drive teachers to
perform well in their job as most teachers received fixed pay per month and less
variable pay. Questionnaires were mailed to 765 teachers who were randomly
selected from the list of all certified education teachers in Kansas that obtained from
the State Department of Education. Only 601 questionnaires were returned from the
respondents. The study concluded that that sense of accomplishment positively
influenced the motivation of teachers.
Therefore, this research suggests that sense of accomplishment is positively related to

motivation of retail salespeople as sense of accomplishment is something that most
people will seek in their job nowadays.
H5 : There is a positive relationship between sense of accomplishment and

motivation of retail salespeople
2.2.6 The relationship between Personal Growth and

Motivation
Churchill, Ford and Walker (1978) pointed out that the personal growth plays an
important role to motivate employees’ performance. Personal growth is defined as a
satisfaction of an individual’s need of successful performance on the job (Hafer &
Joseph, 1983). When the employees had the opportunity to learn new and additional
skills for career development, they would feel a sense of personal growth which, in
turn, will increase the number of available job alternative in the future (Bellenger,
1984). Thus, training and development opportunities could enhance employees’
personal growth and motivation.
Tabassi and Bakar (2009) conducted a research to explore the relationship between
training and employees’ motivation. The questionnaires were mailed to 250
employees in construction industry in Mashhad, Iran and only 105 sets were returned.
The study concluded that training and development program had a positive
relationship with motivation.
There was also a research conducted by Dysvik and Kuvaas (2008) to investigate the
relationship between observed training opportunities, motivation and outcomes. In
Human Management Resource’s perspective, higher levels of training opportunities
will link to greater organization achievement as the employee’s motivation to perform
will increase (Guest, 1997; Purcell, 1999). Questionnaires were dispensed to 965
randomly selected employees through a web-based tool and respond rate was 36
percent. The study discovered that observed training and development opportunities
will uplift employee’s motivation, work performance and intentions to remain with
their current employer. Thus, training and development are important to increase
employee citizenship behaviors and motivation level.
Therefore, this study suggests that personal growth is positively related to motivation
of retail salespeople as training and development is often linked to higher motivation
level and many retail stores are also offering such opportunities.
H6 : There is a positive relationship between personal growth and motivation of retail

salespeople.
2.3 Proposed Conceptual Framework/Research Model
Figure 2 : Rewards toward motivation of retail salespeople
Pay
Job security
Recognition Motivation of retail
salespeople
Promotion
Sense of accomplishment
Personal growth
Adopted from Ford, N. M., Ch
Adapted from: Ford, N. M., Churchill, G. A., Jr., & Walker, O. C., Jr. (1985).
Differences in the attractiveness of alternative rewards among industrial salespeople:
Additional evidence. Journal of Business Research, 13, 123-138.
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Research Design

This descriptive study is conducted to ascertain the impact of rewards on
salespeople’s motivation. Among the salespeople of different industries, this research
chose retail salespeople as retailing is a primary driver of the global economy and this
industry is one of the largest industries in Malaysia. Therefore, a cross-sectional study
is conducted with retail salespeople of Selangor and Perak as the unit of analysis.
Data is collected from a sample of 300 retail salespeople in Selangor and Perak.
Questionnaires surveys are distributed by hand to random retail salespeople in both
states. Data is analyzed using multiple linear regression analysis and Pearson
analysis as many of past empirical studies concerning this topic has used it.
3.2 Pilot Test
According to the sample testing of 40 respondents, it consisted of 20 males and 20

females equally. The table showed that most of the respondents’ age was below than
25 with the highest education level of high school. Besides, most of them had worked
with the same company for length between 1 to 5 years and as a position of sales
specialist. The reliability of dependent and independent variables were all (>0.70),
which were considered as acceptable, and were summarized in table 3.1.
Table 3.1: Reliability Test
Variables Reliability
Pay 0.898
Job Security 0.880
Promotion 0.845
Recognition 0.864
Sense of Accomplishment 0.916
Personal Growth 0.921
Motivation 0.780
Source: Developed for the research
Table 3.2: Correlation Matrix
P JS Pr R SOA PG
Correlation P 1.000 .211 .437 .480 .030 .040
JS .211 1.000 .192 .351 -.120 .280
Pr .437 .192 1.000 .165 -.048 .235
R .480 .351 .165 1.000 .535 .429
SOA .030 -.120 -.048 .535 1.000 .397
PG .040 .280 .235 .429 .397 1.000
Correlation matrix for all the independent variables was ranged from 0.030 to 0.535.
All the columns did not had correlation value of (>0.9). Thus, no multicollinearity
problem was incurred in this research.
3.3 Population, Sample and Sampling Procedures
The target population of this research is all the full time retail salespeople in
Malaysia. As it is impractical to collect and analyze data from the entire population,
data is collected from a sample of retail salespeople in Selangor and Perak.
Furthermore, as a sampling frame is not available, a non-probability sampling
technique is used to conduct this research. A quota of 150 male retail salespeople and
150 female retail salespeople will be drawn from Selangor and Perak.
Selangor is chosen to represent Malaysia due to the fact that Selangor is considered
the most developed state in Malaysia which has the most shopping complex located
there. It is also known as an industrial hub to other countries and the capital city of
Malaysia which is Kuala Lumpur is also located in Selangor. On the other hand,
Perak which is the second largest state in Peninsular Malaysia is a famous tourism
spot in Malaysia. Its capital, Ipoh is one of the more progressive cities in Malaysia
and is fast becoming a focal point of industry, business investment and education.
Therefore, Selangor and Perak are considered a highly competitive marketplace for
retail salespeople. Intense competition often makes selling more difficult. Retail
salespeople not only have to know their own product well, they also have to study the
competitor’s products and cost components to differentiate their products and outwin
their competitors. Therefore, the retail salespeople there are usually among the top
quality salespeople that are capable to withstand work pressure while maintaining
their sales quota to survive in this competitive environment. Moreover, retail
salespeople there must also be trained with the ability to deal with tourist. Therefore,
confidence is placed on these retail salespeople that they are able to understand and
fill in the questionnaires properly.
This study also required only full time retail salespeople because in retail stores and
outlets, there are many part time retail salespeople like undergraduates or high school
students. They only devote themselves part timely or only during school breaks in the
retail industry. As their main focus is not on their job and the intention of leaving the
industry after a certain period is always there, to target them as a respondent would
decrease the accuracy of this study. Part time retail salespeople would be motivated in
a different way than the full time retail salespeople and they would definitely not be
motivated if their jobs offer job security.
3.4 Data Collection Method
A total of 300 sets of questionnaires were distributed randomly to retail salespeople

working in retail outlets and supermarkets with a successful return of 243 sets.
However, due to partial respond and unqualified respondents, there were 13 sets of
unusable questionnaires. There were also 5 sets that is omitted in order to fulfill the
requirements of the normality test. Therefore, data analysis is conducted based on the
remaining 225 sets of questionnaires, which indicates a 75 percent of respond rate.
From the 225 sets, there were 113 sets of female and 112 sets of male retail
salespeople.
Data is collected using first hand information which is primary data source. The
respondents normally took about 10 minutes to complete the questionnaires. They are
required to fill in their personal details such as gender, age, years employed by the
company, marital status and educational level. Any incomplete questionnaires will
not be taken into account.
3.5 Variables and Measurement
3.5.1 Pay
According to Shahzad, Bhatti (2008), pay or compensation is a reward plan that

organization use to allot salary to employee who work extra and who contribute their
effort in their work. It was measured through adaption of four items from Job
Diagonostic Survey by Hackman and Oldham (1974) and Job Satisfaction Survey by
Spector (1985). The purpose of using an adaption method instead of adoption is to
suit the questionnaire in Malaysian context and to the research objective. Data was
collected on Likert scale ranging from 1 (Strongly Disagree) to 5 (Strongly Agree).
Example of items was “It is important that I feel I am being paid a fair amount for the
work I do”
3.5.2 Job Security

Job security refers to the need for employees to organize their careers in such a way
that they will safe and secure, with their future events predictable (Schein, 1997). It
was assessed through adaption of four items from Job Diagonostic Survey by
Hackman and Oldham (1974) and Job Satisfaction Survey by Spector (1985). Data
was analyzed on Likert scale ranging from 1 (Strongly Disagree) to 5 (Strongly
Agree). The items consist of “I prefer things to look secure for me in the future in the
company”
3.5.3 Promotion
Robbins (2001) stated that promotion creates the opportunity for self advancement,
increased levels of responsibility and a higher social standing. It is a performance
evaluation process where an employee is given an opportunity for growth and
development according to his or her abilities, skills and work. It was measured
through adaption of four items of Job Satisfaction Survey which was developed by
Spector (1985). Responses were recorded ranging from 1 (Strongly Disagree) to 5
(Strongly Agree). Reverse coding was done on the first item, which was “I prefer jobs
which have limited opportunity for advancement.” The items consist of “It is
important that those who do well on the job stand a fair chance of being promoted”
3.5.4 Recognition
Recognition is defined as a process of awarding an employee a certain status within

an organization (Danish et al., 2010). It describes how the work of an employee is
assessed and how much appreciation he receives from the company. It was evaluated
through adaption of four items from Job Satisfaction Survey which was developed by
Spector (1985). Data was collected on a 5 point Likert scale ranging from the strongly
disagree to strongly agree. Reverse coding was done on the second item to measure
the attentiveness of the respondent towards the question. Example of sample items
was “It is important that I receive the recognition for it when I do a good job.”
3.5.5 Sense of Accomplishment
Veroff (1977) defined sense of accomplishment as the feelings of success and

satisfaction that derived from a completed task. . It was evaluated through adaption of
four items from Job Satisfaction Survey which was developed by Spector (1985).
Data was measured on 5 point Likert scale ranging from the strongly disagree to
strongly agree. Example of items was “I like to do things which give me a sense of
pride in doing.”
3.5.6 Personal Growth
Churchill et al. (1979) stated that personal growth is a means of achieving future
goals and rewards, particularly career advancement and is a satisfying end in itself.
Hence, to achieve personal growth, Herzberg’s Motivator-Hygiene Theory stated that
the most successful method of motivating is to build challenge and opportunity for
achievement into the job itself. The most common way is through training and
development. It was assessed through adaption of four items from Job Diagonostic
Survey by Hackman and Oldham (1974) and a questionnaire survey by Ingram, Lee
and Skinner (1989). Data was measured on 5 point Likert scale ranging from the
strongly disagree to strongly agree. Sample item contains “It is important that my job
provides opportunities to learn new things from your work.”
3.5.7 Motivation
Luthans (1998) argued that motivation is a process that stimulates, energizes, sustains
and directs behaviour and performance. It was evaluated through adaption of six
items from a questionnaire survey by Knight, Crutsinger and Kim (2006) and Tyagi
(1985 Data was analyzed on Likert scale ranging from 1 (Strongly Disagree) to 5
(Strongly Agree). Sample item contains “I work harder on a project if public
recognition is attached to it” and “I feel motivated if my job provides the opportunity
for learning and growth in competence and proficiency.”
3.6 Data Analysis Techniques
Data is examined using the Statistical Package for the Social Sciences (SPSS). Before
going in depth, this research conducted two assumption testing method which are
normality test and factor analysis testing to test the normality of our sample and the
accuracy of our variable being measured in our questionnaires. Interval data
measurement scale is used to analyze six independent variables and one dependent
variable. Therefore, Multiple Regression is chosen as our data analysis technique. On
the other hand, Pearson Correlation analysis is chosen as the research question
requires a ranking in term of valence of rewards to a retail salesperson.
CHAPTER 4: DATA ANALYSIS
4.1 Descriptive Analysis
4.1.1 Respondent Demographic Profile
Table 4.1: Gender of Respondents

Valid Cumulative
Frequency Percent Percent Percent
Valid Female 113 50.2 50.2 50.2
Male 112 49.8 49.8 100.0
Total 225 100.0 100.0
Table 4.1 shows the frequency and percentage of gender of 225 respondents. There
are 113(50.2%) of female and 112(49.8%) of male respondents.
Table 4.2: The Age Group of Respondents
Cumulative
Frequency Percent Valid Percent Percent
Valid 25 years or less 79 35.1 35.1 35.1
26 to 35 years 76 33.8 33.8 68.9
36 to 45 years 38 16.9 16.9 85.8
46 years or
32 14.2 14.2 100.0
greater
Total 225 100.0 100.0
Table 4.2 shows the frequency and percentage of age of respondents. 79 respondents
(35.1%) are less or 25 years old, 76 respondents (33.8%) are 26 to 35 year old, 38
respondents (16.9%) are 36 to 45 years old and 32 respondents (14.2%) are 46 years
old or greater.
Table 4.3: The Marital Status of Respondents
Frequency Percent Valid Percent Cumulative Percent

Valid Single 122 54.2 54.2 54.2
Married 103 45.8 45.8 100.0
Total 225 100.0 100.0
The table 4.3 shows the frequency and percentage of marital status of respondents.
Out of 225 respondents, 122 respondents (54.2%) are single and the remaining 103
respondents (45.8%) are married.
Table 4.4: The Education Level of Respondents
Cumulative
Valid High School 81 36.0 36.0 36.0
Diploma 58 25.8 25.8 61.8
Degree 77 34.2 34.2 96.0
Master 9 4.0 4.0 100.0
Total 225 100.0 100.0
The table 4.4 shows the frequency and percentage of the education level of
respondents. From the information above, majority of 81 respondents hold a high
school qualification (36.0%). The second largest group consists of 77 respondents
who hold a degree (34.2%). The third largest group consists of 58 respondents who
hold a diploma (25.8%) and the smallest group consists only 9 respondents which is a
master holder (4.0%).
Table 4.5: The Time Length of Respondents
Cumulative
Valid Less than 1 year 55 24.4 24.4 24.4
1-5 years 72 32.0 32.0 56.4
5-10 years 45 20.0 20.0 76.4
above 10 years 53 23.6 23.6 100.0
Total 225 100.0 100.0
The table 4.5 shows the frequency and percentage of the time length of respondents
that have been employed by the company. The respondents are divided into four
categories. 55 respondents worked in the retail store for less than 1 year (24.4%), 72
respondents worked for 1 to 5 years (32.0%), 45 respondents worked for 5 to 10
years (20.0%) and 53 respondents worked for the retail store above 10 years (23.6%).
Table 4.6: The Position of Respondents
Cumulative
Valid Sales Specialist 126 56.0 56.0 56.0
Supervisor 52 23.1 23.1 79.1
Manager 47 20.9 20.9 100.0
Total 225 100.0 100.0
The table 4.6 shows the frequency and percentage of the respondents’ position. Sales
specialist is the largest group which consists of 126 respondents (56.0%), followed by
supervisor with 52 respondents (23.1%) and manager with 47 respondents (20.9%).
4.1.2 Central Tendencies Measurement of Constructs

4.1.2.1 Pay
Table 4.7: Central Tendencies Measurement for Pay
Statement Mean Standard

Deviation
1 It is important that I feel I am being paid a 4.2133 0.71264

fair amount for the work I do
2 It is important that I feel appreciated by the 4.2356 0.75153

organization when I think about what they
pay me
3 When choosing a job, I usually choose the 4.0267 0. 85524

one that pays the most
4 It is important that I feel satisfied with my 4.1867 0. 70761

chances for salary increases

Table 4.7 showed the central tendencies measurements of pay. From the table above,
most respondents agreed to the second statement with mean value of 4.2356. The
second highest was the first statement with mean value of 4.2133 which is followed
by the fourth statement which had a mean value of 4.1867. The lowest mean value
was 4.0267 by the third statement.
According to table 4.7, the highest standard deviation was the third statement with a
value of 0.85524 which is followed by the second statement that had the value of
0.75153. The standard deviation for the first statement was 0.71264. The lowest
standard deviation was the fourth statement with the value of 0.70761.
The mean in table 4.7 was all above 4.00. This meant the respondents mostly agreed
with the statements in the questionnaires for pay. From the 5-point Likert Scale, most
of the respondents chose agree and strongly agree.
4.1.2.2 Job Security
Table 4.8: Central tendencies Measurement for Job Security
Statement Mean Standard Deviation
1 It is important that I feel secure about my 3.9778 0.92796

employment in the company
2 I prefer things to look secure for me in the 3.8711 0.93842

future in the company
3 It is important that I am informed about 3.8133 0.97779

matters affecting me in the company
4 It is important that I do not have to worry a 3.6133 1.11676

great deal about company downsizing
Table 4.8 showed the central tendencies measurements of job security. Referring to
the table above, the first statement had the mean value of 3.9778, which was the
highest among the four statements. The second highest was the second statement with
mean value of 3.8711 which is followed by third statement that had the mean value of
3.8133. The lowest mean value was 3.6133 by the fourth statement.
From table 4.8, the highest standard deviation was fourth statement that had a value
of 1.11676 which is followed by the third statement with the value of 0.97779. The
standard deviation for the third statement was 0.93842. The lowest standard deviation
was the first statement which is only 0.92796.
From the table 4.8, the mean for job security was all above 3.5. This meant that most
of the respondents agreed to our statements for job security in the questionnaires.
Most of them chose 4 or 5 in the 5-point Likert Scale.
4.1.2.3 Promotion
Table 4.9: Central Tendencies Measurement for Promotion

Deviation
1 It is important that I feel I am being paid a fair 4.1467 0.62020
amount for the work I do.
2 It is important that I feel appreciated by the 4.1778 0.63699
organization when I think about what they pay
me.
3 When choosing a job, I usually choose the one 4.1644 0.58598
that pays the most.
4 It is important that I feel satisfied with my 4.0933 0.65137
chances for salary increases.
The table 4.9 showed that, the second statement had the highest mean of 4.1778.
Secondly, it is followed by third statement of 4.1644 and first statement of 4.1467.
The fourth statement had the lowest mean of 4.0933.
In term of standard deviation, the fourth statement had the highest standard deviation
of 0.65137. Secondly, it is followed by second statement of 0.63699, and first
statement of 0.62020. The third statement had the lowest standard deviation of
0.58598.
From the table 4.9, the entire mean was all above 4.00. It showed that most of the
respondents agreed with our statements in the questionnaires for promotion. From the
5-point Likert Scale, most of the respondents chose agree and strongly agree.
4.1.2.4 Recognition
Table 4.10: Central Tendencies Measurement for Recognition

Deviation
1 It is important that I receive the recognition for it 4.0578 0.72039
when I do a good job.
2 It is not important that I feel that the work I do is 4.1289 0.52296
appreciated.
3 It is important that the results of my activities 4.0756 0.61133
can be seen.
4 It is important that I am acknowledged by bosses 4.0978 0.74955
and colleagues of my efforts, skills and
competencies.
The table 4.10 showed that, the second statement had the highest mean of 4.1289.
Secondly, it is followed by fourth statement of 4.0978 and third statement of 4.0756.
The first statement had the lowest mean of 4.0578.
In term of standard deviation, the fourth statement had the highest standard deviation
of 0.74955. Secondly, it is followed by first statement of 0.72039 and third statement
of 0.61133. The second statement had the lowest standard deviation of 0.52296.
The entire mean shown in the above table was all above 4.00. This showed that most
of the respondents agree and strongly agreed with our statements in the questionnaires
for recognition. Most of our respondents chose 4 or 5 in the 5-point Likert Scale.
4.1.2.5 Sense of Accomplishment
Table 4.11 Central Tendencies Measurement for Sense of Accomplishment

Deviation
1 I like to do things which give me a sense of 4.1378 0.62224

pride in doing
2 I prefer job that is challenging, exciting and 4.2133 0.66735

fulfilling
3 It is important that the work I do on my job is 4.2400 0.62335

meaningful to me
4 The major satisfaction in my life comes from 4.1378 0.62224

doing my job well
Table 4.11 showed the central tendencies measurements of sense of accomplishment.

From the table above, the third statement had the highest mean value which was
4.2400. The second highest was the second statement that had 4.2133 of mean which
is followed by, the fourth statement and the first statement, where both statements had
the mean value of 4.1378.
From table 4.11, the highest standard deviation was 0.66735 by the second statement.
The second highest standard deviation was the third statement that had the value of
0.62335 which is followed by, the first statement and the fourth statement that had the
value of 0.62224.
Based on the table 4.11, all mean for the five questions in the questionnaires are
above 4.0. This showed that the most of the respondents agreed with the statements
for sense of accomplishment.
4.1.2.6 Personal Growth
Table 4.12: Central tendencies Measurement for Personal Growth

Deviation
1 It is important that my job provides chances 4.1156 0.57862

to exercise independent thought and action
2 It is important that my job provides 4.1644 0.64405

opportunities to learn new things from your
work
3 I like jobs which provide me opportunities to 4.2000 0.66144

be creative and imaginative
4 It is important that my job provides 4.2667 0.64780

opportunities for personal growth and
development
Table 4.12 showed the central tendencies measurements of personal growth. From the
table above, most respondents agreed to the fourth statement with mean value of
4.2667. The second highest was the third statement that had 4.2000 of mean. The
fourth statement had a mean value of 4.1644. The lowest mean value was the first
statement which is 4.1156.
From table 4.12, the highest standard deviation was the third statement that had a
value of 0.66144 which is followed by the fourth statement that had the value of
0.64780. The standard deviation for the second statement was 0.64405. The lowest
standard deviation was the first statement which was 0.57862.
From the table 4.12, the survey showed that most of the respondents agreed to the
statements for personal growth. The mean for personal growth was above 4.0 which
meant that many of the respondents agreed with the statements.
4.2 Assumption Testing

4.2.1 Factor Analysis
The main purpose of factor analysis is to reduce a large amount of variables to small
amount of factors. As the survey had already been done before, confirmatory factor
analysis is applied to this research which leads to principle component analysis.
According to Hair, Black, Babin, Anderson & Tatham (2005), factor loadings more
than 0.30 are considered as significant; 0.40 are considered as more important; and
more than 0.50 are very significant. According to Table 4.13 in the appendices, all
items have high factor loadings of (>0.40). Thus all items were valid and significant
to their underlying factor.
Table 4.13: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling

.795
Adequacy.
Bartlett's Test of Approx. Chi-Square 2.417E3
Sphericity df 276
Sig. .000
The KMO measure of sampling adequacy test of 0.795 was good while Bartlett’s Test
of Sphericity was significant (p =0.000 < 0.01).
Table 4.14: Correlation Matrix

P JS Pr R SOA PG
Correlation P 1.000
JS .131 1.000
Pr .175 .132 1.000
R .311 .079 .300 1.000
SOA .071 .089 .170 .394 1.000
PG .020 .172 .231 .171 .471 1.000
Referring to the table 4.14, Correlation matrix for all the independent variables was
ranged from 0.131 to 0.471. All the columns did not had correlation value of (>0.9).
Thus, no multicollinearity problem was incurred in this research.
4.2.2 Normality test
Kolmogorov–Smirnov’s test and Shapiro-Wilks test were often used to test normality
of data. In this research, Kolmogorov–Smirnov’s test with Lilliefors significant level
was used to test the normality of the dependent variable, motivation. Results showed
that the significant level was more than 0.05, which was 0.2, thus the normality of the
standardized residual was assumed. However, there was 3 outliner as showed in
(Table 4.15)
Table 4.15: Tests of Normality

Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Standardized
.052 225 .200* .990 225 .107
Residual
a. Lilliefors Significance Correction
*. This is a lower bound of the true significance.
4.3 Scale Measurement
4.3.1 Reliability
Table 4.16: Summary of Reliability Test
Variables Construct Cronbach's Alpha Number of Items
Dependent Variable Motivation 0.704 6
Independent Variable 1 Pay 0.869 4

Independent Variable 2 Job Security 0.784 4
Independent Variable 3 Promotion 0.769 4
Independent Variable 4 Recognition 0.769 4
Independent Variable 5 Sense of 0.805 4

Accomplishment
Independent Variable 6 Personal Growth 0.846 4
Reliability test measured the stability and consistency of the data during the research
process (Sekaran 2003). The table 4.16 showed the summary result for dependent and
independent variables which consist of motivation pay, job security, promotion,
recognition, sense of accomplishment and personal growth. According to rule of
thumb of Cronbach's Alpha, the Cronbach's Alpha which had exceeded 0.7 is reliable
and good. While if the result which is below 0.7 is considered poor.
The independent variable of pay had the highest Cronbach's Alpha, standing at 0.869.
Secondly it followed by personal growth of 0.846, sense of accomplishment of 0.805,
job security of 0.784 and promotion and recognition of 0.769. Dependent variable of
motivation had the lowest Cronbach's Alpha of 0.704. This showed all the variables
were above 0.7.
4.4 Inferential Analyses
4.4.1 Pearson Correlation Analysis
Table 4.17: Pearson Correlation Matrix

Pa JS Pr R SOA PG M
Pa Pearson Correlation 1
Sig. (2-tailed)
JS Pearson Correlation .131 1
Sig. (2-tailed) .050
Pr Pearson Correlation .175** .132* 1
Sig. (2-tailed) .009 .047
R Pearson Correlation .311** .079 .300** 1
Sig. (2-tailed) .000 .237 .000
SOA Pearson Correlation .071 .089 .170* .394** 1
Sig. (2-tailed) .289 .181 .010 .000
PG Pearson Correlation .020 .172** .231** .171* .471** 1
Sig. (2-tailed) .769 .010 .000 .010 .000
M Pearson Correlation .506** .350** .378** .340** .369** .370** 1
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
Whereby, *. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).
N = 225
Pa = Pay
JS = Job Security
Pr = Promotion
R = Recognition
SOA = Sense of Accomplishment
PG = Personal Growth
M = Motivation
Referring to Table 4.17, the strongest association was between sense of
accomplishment and personal growth which had a value of 0.471 and was significant
at the level of 0.01 (p<0.01). On the contrary, the weakest association was between
job security and promotion which had a value of 0.132 and was significant at the
value 0.05 (p<0.05).
However, there was five set of variables that were insignificant when paired together
at the level of 0.01 (p>0.01). It was between pay and job security with a value of
0.131; pay and sense of accomplishment with a value of 0.071; pay and personal
growth with a value of 0.020; job security and recognition with a value of 0.079; and
job security and sense of accomplishment with a value of 0.089. Therefore, since the
correlations between all independent variables are below 0.9, this study did not have
any multicollinearity problem.
The highest correlation (r-value) between pay and motivation was 0.506, which
meant that there was positive relationship between the two variables. The strength of
association between pay and motivation was very strong according to Rule of Thumb.
The second highest of correlation (r-value) between promotion and motivation was
0.378, which meant that there was positive relationship between the two variables.
The strength of association between promotion and motivation was medium
according to the Rule of Thumb.
The third highest of correlation (r-value) between personal growth and motivation
was 0.370, which meant that there was positive relationship between the two
variables. The strength of association between personal growth and motivation was
medium according to the Rule of Thumb.
Followed by, the correlation (r-value) between sense of accomplishment and
motivation was 0.369. It meant that there was positive relationship between the two
variables. The strength of association between sense of accomplishment was medium
according to the Rule of Thumb.
The fifth of correlation (r-value) between job security and motivation was 0.350,
which meant that there was positive relationship between the two variables. The
strength of association between job security and motivation was medium according to
the Rule of Thumb.
The lowest correlation (r-value) between recognition and motivation was 0.340,
which meant that there was positive relationship between the two variables. The
strength of association between recognition and motivation was weak according to
the Rule of Thumb.
Correlation was arranged a sequence of pay with the highest value of 0.506;
promotion with the value of 0.378; personal growth with the value of 0.370; sense of
accomplishment with the value of 0.369; job security with the value of 0.350 and
recognition with the lowest value of 0.340.
4.4.2 Multiple Regression Analysis
Table 4.18: Model Summary
Adjusted R Std. Error of

Model R R Square Square the Estimate
1 .713a .509 .496 .30116
a. Predictors: (Constant), PG, P, JS, Pr, R, SOA
b. Dependent Variable: Motivation
Table 4.18 shows that the dependent variable and independent variables are notably
associated at R value of 0.713. Besides that, R Square at 0.509 indicates that 50.9% of
the dependent variable which is motivation can be explained by the independent
variables which are pay, job security, promotion, recognition, sense of
accomplishment and personal growth. Alternatively, the remaining 49.1% of variation
can be explained by other factors.
Table 4.19: ANOVA
Sum of
Model Squares df Mean Square F Sig.
1 Regression 20.499 6 3.416 37.669 .000a
Residual 19.772 218 .091
Total 40.271 224
a. Predictors: (Constant), PG, P, JS, Pr, R, SOA
b. Dependent Variable: Motivation
The table 4.19 shows that F-statistic is valued at 37.669 and is significant at the 0.001
level. From the analysis of these data, it can be concluded that the independent
variables do have an effect on the dependent variable.
Table 4.20: Coefficients

Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .500 .263 1.898 .059
Pa .276 .033 .418 8.263 .000
JS .120 .027 .219 4.501 .000
Pr .170 .045 .192 3.753 .000
R .025 .047 .030 .530 .596
SOA .158 .049 .187 3.238 .001
PG .151 .045 .187 3.377 .001
a. Dependent Variable: Motivation
Table shows that the five independent variables (pay, job security, promotion, sense
of accomplishment and personal growth) are significant related to the dependent
variable (motivation) by meeting the requirement of p-value being lower than 0.01.
All variables are valued 0.001.
Subsequently, the unstandardized coefficient linear equation was formed:

Motivation= 0.500 + 0.276Pa + 0.120JS + 0.170Pr +0.025R + 0.158SOA + 0.151PG
The standardized coefficient linear equation was also formed:

Motivation=0.276Pa + 0.120JS + 0.170Pr +0.025R + 0.158SOA + 0.151PG
Whereby, R2 = 0.509
N = 225
Pa= Pay
JS = Job Security
Pr = Promotion
R = Recognition
SOA = Self of Accomplishment
PG= Personal Growth
Motivation = Motivation
The linear equation above clearly indicated that there is a positive relationship
between the independent variables and the dependent variable. The most influential
being pay (Beta=0.418) followed by job security (Beta=0.219), sense of
accomplishment and personal growth (Beta=0.187) and lastly recognition
(Beta=0.030). The value of Beta indicated that pay is a better motivation tool for
retail salespeople as compared to existing variables.
CHAPTER 5: DISCUSSION, CONCLUSION AND

IMPLICATIONS
5.1 Summary of Statistical Analyses
The general result of Chapter 4 is summarized in three parts: summary of descriptive

analysis, summary of scale measurement and summary of inferential analysis.
5.1.1 Summary of Descriptive Analysis
Based on the demographic breakdown, it is stated that most of the respondent are
single (54.2%), female (50.2%), sales specialist (56.0%) and with the age of 25 years
old or less than. They hold a high school qualification (36.0%) and have been worked
in the entire company for 1 to 5 years (32.0%) during the questionnaires are
conducted.
In term of central tendency measurement, the mean is ranged from 4.0267 to 4.2356
and standard deviation is ranged from 0.70761 to 0.85524 under pay. Under job
security, the mean is ranged from 3.6133 to 3.9778 and standard deviation ranged
from 0.92796 to 1.11676. Under promotion, the mean is ranged from 4.0933 to
4.1778 and standard deviation is ranged from 0.58598 to 0.65137. On other hand, the
mean is ranged from 4.0578 to 4.1289 and standard deviation is ranged from 0.52296
to 0.74955 under recognition. Under sense of accomplishment, the mean is ranged
from 4.1378 to 4.2400 and standard deviation is ranged from 0.62224 to 0.66735.
Lastly, under personal growth, the mean is ranged from 4.1156 to 4.2667 and
standard deviation is ranged from 0.57862 to 0.66144.
5.1.2 Summary of Scale Measurement
All six independent variables fulfilled the requirement of exceeding the satisfactory
Cronbach’s alpha value of 0.7. Job security had the highest Cronbach’s alpha among
the six independent variables at 0.869 and followed by personal growth at 0.805.
Then, promotion scored Cronbach’s alpha at 0.784 while recognition and sense of
accomplishment had the same Cronbach’s alpha at 0.769. Lastly, pay scored
Cronbach’s alpha at 0.704.
5.1.3 Summary of Inferential Analysis

5.1.3.1 Summary of Pearson Correlation Analysis
Referring to Table 4.17, the strongest association was between sense of

accomplishment and personal growth which had a value of 0.471 and was significant
at the value 0.01 level (p<0.01). On the contrary, the weakest association was
between job security and promotion which had a value of 0.137 and was significant at
the value 0.05 (p<0.05).
However, there was four set of variables that were insignificant when paired together.
It was between pay and sense of accomplishment which had a value of 0.071; pay and
personal growth which had a value of 0.020; job security and recognition that had a
value of 0.049; and job security and sense of accomplishment which had a value of
0.069. Both of them were insignificant at the value 0.01 level (p>0.01).
5.1.3.2 Summary of Multiple Regression Analysis
As table shows the R Square at the value of 0.509 indicated that 50.9% of the
variation of salespersons in Malaysia are motivated by the six independent variables.
The result showed that there are five independent variables (pay, job security,
promotion, sense of accomplishment and personal growth)are significant related to
the dependent variable (motivation) where pay was the most influential variable with
the higher Beta of 0.418. However, recognition was insignificant related to
Motivation.
Besides that, the linear equation that was generated from the regression analysis is as:
Motivation= 0.500 + 0.276Pa + 0.120JS + 0.170Pr + 0.025R + 0.158SOA + 0.151PG
5.2 Hypothesis Testing
Five hypotheses were tested in this research project. Based on the statistical data
obtained, three hypotheses are accepted whereas two are rejected.
Decision rule:
If p > 0.05, reject hypothesis
If p < 0.05, accept hypothesis
Table 5.1: Summary of Results from Hypothesis Testing
Decision Significance
Hypotheses
(Accept/Reject) Level
H1: There is a positive relationship between pay and
Accept 0.000
motivation of salesperson.
H2: There is a positive relationship between job
Accept 0.000
security and motivation of salesperson.
H3: There is a positive relationship between
Reject 0.569
recognition and motivation of salesperson.
Accept 0.000
promotion and motivation of salesperson.
H5: There is a positive relationship between sense of Accept 0.001
accomplishment and motivation of salesperson.
increased personal growth and motivation of Accept 0.001
salesperson.
5.3 Discussions of Major Findings
5.3.1 Significant of Rewards towards Motivation
Based on the results sated in the summary of statistical analyses, it is proven that most
of the independent variables which are pay, job security, promotion, sense of
accomplishment and personal growth have a significant positive impact on the
motivation of retail salespeople. Only recognition is not significantly related to the
motivation of retail salespeople.
Pay as a motivate factor of retail salespeople is in line with most of the past studies
(Shahzad et al., 2008 ; Kuvaas, 2006). Furthermore, Kuvaas (2006) found out that pay
for performance rather than fixed pay will link directly to the motivation of
employees. However, managers are also advised to consider the skillfulness of their
current and potential retail salespeople before determining their pay scheme. This is
because effort only increases for the high skill retail salespeople in variable pay
scheme because it induces them to work harder. The low skill retail salespeople are
often not attracted and motivated when retail stores offer variable pay scheme
(Eriksson et al., 2008).
Job security as motivate factor of retail salespeople is in line with Danish et al.
(2010). However, some researchers only view low job security as an impediment to
performance (Ashford, Lee, & Bobko, 1989; Greenhalgh & Rosenblatt, 1984). Low
job security is argued to reduce performance by distracting employees, as it
contributes to increased helplessness which in turn reduce motivation. Churchill et al.
(1979) even stated that that due to the nature of selling, salespeople have
relatively low needs for security. On the other hand, this study strongly supports
the fact that additional job security is a way for retail salespeople to feel some sense
of stability in an uncertain business climate (Dubinsky, Jolson, Michaels, Kotabe, &
Lim, 1983). Retail salespeople will always have the desire of stabilizing their job
situation given a precarious economic environment especially now which is a
recovery stage of the global recession period in year 2007.
Promotion as a motivate factor of retail salespeople is in line with most of the past
studies (Wong et al., 2005; Gaines et al., 1984). Churchill et al. (1979) argued that
promotion is both a reward and a way for achieving increases in other rewards.
Promotion usually leads to a pay increase and a higher job responsibility with a new
career direction Thus, it seems logical to expect promotion to be significantly
related to the motivation of retail salespeople.
Sense of accomplishment as a motivate factor of retail salespeople is in line with most

of the past studies (Ross ,1995; Zabel et al., 2006). Sense of accomplishment is very
important as it keeps a high spirits among retail salespeople, increases their self
confident and enables them to interact well with their customers. Churchill et al.
(1979) also argued that feelings of worthwhile accomplishment on the job are
among the highest-order rewards a salesperson can obtain from his job and is
significantly valued by salespeople who are well satisfied with lower- order
rewards such as pay and job security.
Personal growth as a motivate factor of retail salespeople is in line with most of the
past studies (Tabassi et al., 2009; Dysvik et al., 2008). Tabassi et al. (2009) claimed
that when employees are able to apply what they have learn in training programs into
their job, they were motivated as the skills or knowledge they learn can help them to
accomplish the job and overcome the challenges in their career. Thus, training
programs increases their personal growth and motivates them to perform.
Lastly, recognition which is not a significant motivate factor of retail salespeople is in

conflict with some of the past studies that concluded that recognition was positively
related to motivation (Wotruba et al., 1991; Cacioppe, 1999). However, Ford et al.
(1985) stated that Recognition is generally not a very significant reward to most
salespeople. Furthermore, Danish et al. (2010) also stated that recognition in firms is
meaningless where the matter of bread and butter is more important especially during
recession. Churchill et al. (1979) also stated that rewards recognition is highly
significant to older salespeople and those who have been with the company for
a long time. However, this study analyzes the sample of retail salespeople which is
mostly aged 25 years or less and many of them has only worked for the retail stores
for around 1-5 years. Therefore, it may also be one of the reasons that resulted in the
insignificant result of recognition in motivating retail salespeople.
In conclusion, young retail salespeople especially those in the category of aged 25

years or less, is motivated more motivated by practical and tangible things where they
can see the direct linkage of the rewards towards their advantage. Therefore, they are
motivated by pay and promotion where they can enjoy the immediate benefits of
them. They are also motivated by sense of accomplishment as it makes their job
interesting. Job security also motivates them as it give them a sense of security of
their future employment in the retail store. Moreover, they are also motivated by
personal growth which is viewed as a way of achieving future goals and rewards,
particularly career advancement. However, recognition which is only a symbolic
award of appreciation of a task completed such as prizes and medals. It may earn the
respects of others for a short period of time but later people would soon forget about
it and they will have to work hard to earn another one. If recognition is not
accompanied by other rewards such as pay and promotion, young retail salespeople
will not feel motivated as it is not their main purpose or intention of working in retail
outlets.
5.3.2 Valence of Rewards
This study support the statement made by Frederick Taylor that money is the prime
motivator factor for employee performance. The result of this study is also quite
similar to the results of previous studies as bellow:
Table 5.2: Valence ranking of rewards in previous study
Rewards Rank
Pay 1
Promotion 2
Sense of Accomplishment 3
Personal Growth 4
Recognition 5
Job Security 6
Source: Ford, N. M., Churchill, G. A., Jr., & Walker, O. C., Jr. (1985). Differences in
the attractiveness of alternative rewards among industrial salespeople: Additional
evidence. Journal of Business Research, 13, 123-138.
Table 5.3: Valence ranking of rewards in this study
Rewards Rank
Pay 1
Promotion 2
Personal Growth 3
Sense of Accomplishment 4
Job Security 5
Recognition 6
The results from this study shows that pay is the prime motivator factor for retail
salespeople in Malaysia, which is followed by promotion, personal growth, sense of
accomplishment, job security and recognition. There is a switch in the ranking of
personal growth as stated due the fact that salespeople has higher needs for personal
growth in year 2010 rather than year 1985. In today’s revolving economy,
organizations strived to establish themselves as knowledge creating and utilizing
organization as the knowledge organizations have been able to grow larger and more
competitive in the corporate world (Kalra, 1997; Baines, 1997; Bueno & Salmador,
2004). Therefore, in year 2010, organizations have turned their recruitment emphasis
on knowledge and skill. Employers look for people with more working experience
and a higher level of skills or have undergone certain training programs. Therefore, if
a retail stores provides more opportunity for training and development, salespeople
there would be more motivated to perform.
Furthermore, there is also a switch in the ranking of job security to the fifth place.
This is mainly due to the global recession that hit the world recently in 2007, making
high unemployment rate and creating the fear in people of losing their jobs
(Dubinsky, Jolson, Michaels, Kotabe, & Lim, 1983). Therefore, although year 2010,
the economy is already in a recovering stage, people had acknowledge the importance
of job security and retail salespeople will be more motivated to perform if they are
ensured of their future in the retail stores.
5.4 Implications of the Study
5.4.1 Managerial Implications
The findings is especially important for retail company and shop owners in
supplementing current recruitment, sales training programs, method of stimulations
and determining the package of compensation provided to retail salespeople in
Malaysia.
Managers and owner can design a reward system that focuses on pay and promotion.
It is shown that increment in pay, allowances, bonuses or sales commission both on
periodic basis and special occasions will keep them motivated to perform.
Furthermore, if they are promoted to a higher level with a higher salary and a higher
job responsibility and autonomy, they will be motivated to performed better.
Managers should also provide more training and development opportunities for retail
salespeople. Moreover, managers can also try providing same quota or sales target to
motivate salespeople to have a sense of accomplishment when they are able to fulfill
the sales target. They can also try to make work contents interesting so that retail
salespeople would not consider their job boring, meaningless and dull.
Furthermore, managers also should not fire any retail salespeople without any
reasonable explanation to avoid dysfunctional behavior. Lastly, as recognition is
shown as insignificant towards the motivation of retail salespeople, managers can
focus less on this area or conduct a further investigate into this issue. Danish et al.
(2010) stated that procedural injustice, informally regulated environment and habits
of boss are the reason of failure of recognition programs. As such, operating
procedures of recognition programs should also be fairly implemented to ensure the
success of a recognition program.
5.4.2 Researcher Implications
This finding is also important for researchers as this study reanalyzed the six rewards
listed by Ford et al. (1985). After 25 years, the present findings indicated that out of
the six rewards, only recognition is insignificantly related to the motivation of retail
salespeople and pay is the prime motivator for performance. Moreover, this study also
selected retail salespeople specifically as our target population instead of directing it
to salespeople in all industry as mentioned by Ford et al. (1985).
5.5 Limitations of the Study
There are several limitations that need to be addressed regarding this research. The
first limitation is that independent variables can be increased to seven variables
instead of just six. According to Maslow hierarchy of needs, there are only four out of
five level of needs covered in this research which are physiological, safety and
security, esteem and self actualization. The level of love and belonging is not covered
at all. The R Square of this study is only 0.509 which means the six rewards
explained only 50.9% of the motivation of retail salespeople
The second limitation is that questionnaires distributions are normally bias and is not
enough to explain our variables to the respondents. The third limitation is that the
present research was a cross sectional, which means whether the findings would
changes over a period of time is uncertain. The fourth limitation is that the sample
was limited only to retail salespeople in Selangor and Perak to present the whole
Malaysia.
5.6 Recommendations for Future Research
Retailing industry is definitely an important industry in Malaysia. Therefore, future

research of analyzing the motivators of retail salespeople should be done to guarantee
the profitability of this industry. The first recommendation is that future research
could analyse additional kinds of rewards like social relationship as it would fulfill
the love and belonging level in Maslow Hierarchy of needs. Social relationship is
proved to be significantly related to motivation (Moch, 1980; Churchill et al., 1979).
Therefore, it would have increased the R Square of the research.
The second recommendation is that future research could also conduct interview
sections to enhance the accuracy of data collected. Thirdly, future research could
conduct longitudinal investigation to determine whether the retail salespeople
motivational components would changes over a period of time. This investigation
provides a better and more accurate results.
Fourthly, the sample could be collected from retail salespeople from all states in
Malaysia instead of focusing it only in Selangor and Perak in future research. Email
questionnaires could be distributed to retail salespeople in Sabah and Sarawak. This
could make the research more reliable and could be generalized to all retail
salespeople in Malaysia.
5.7 Conclusion
This study presented the relationship between types of rewards and motivation of
Malaysian retail salespeople. The study showed that types of rewards such as pay, job
security, promotion, sense of accomplishment and personal growth do motivates retail
salespeople. However, unlike existing literatures on the motivation of retail
salespeople, recognition was found to be insignificant to the motivation of retail
salespeople. Moreover, the study also revealed that pay has the highest valence to
retail salespeople, followed by promotion, personal growth, sense of accomplishment,
job security and recognition.
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CHAPTER 1: INTRODUCTION

1.1 Background of the Study

Salespeople play an important role in an organization as the marketing success of the

Therefore, the motivation of sales force is widely recognized as a crucial component

Research on rewards preferences among employees and salespeople has been

1.2 Problem Statement

Most literatures focused on analyzing the usefulness of monetary rewards in

1.3 Research Questions and Objectives

1.3.1 Research Questions

1．Will different types of rewards affect and motivate retail salespeople?

The research is conducted to:

1.4 Significance of the Study

1.5 Outline of the Study

CHAPTER 2: LITERATURE REVIEW

2.1.1 Expectancy Theory

Expectancy theory is known as theory of motivation and was summarized by the

Figure 1: The Expectancy Theory Model

INSRUMENTALITY (P-O LINKAGE)

2.2 Review of the Prior Empirical Studies

2.2.1 The relationship between Pay and Motivation

2.2.2 The relationship between Job Security and Motivation

H2 : There is a positive relationship between job security and motivation of retail

2.2.3 The relationship between Promotion and Motivation

Wong et al. (2005) conducted a research investigating the relationship between

H3 : There is a positive relationship between promotion and motivation of retail

2.2.4 The relationship between Recognition and Motivation

Recognition or full appreciation for task completed is an important motivator factor.

According to Wotruba et al. (1991), recognition programs are separated into 5

On the other hand, Cacioppe (1999) conducted a study comparing 2 popular

H4 : There is a positive relationship between recognition and motivation of retail

2.2.5 The relationship between Sense of Accomplishment and

Therefore, this research suggests that sense of accomplishment is positively related to

H5 : There is a positive relationship between sense of accomplishment and

2.2.6 The relationship between Personal Growth and

H6 : There is a positive relationship between personal growth and motivation of retail

Figure 2 : Rewards toward motivation of retail salespeople

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Research Design

3.2 Pilot Test

According to the sample testing of 40 respondents, it consisted of 20 males and 20

Table 3.1: Reliability Test

Table 3.2: Correlation Matrix

3.3 Population, Sample and Sampling Procedures

3.4 Data Collection Method

A total of 300 sets of questionnaires were distributed randomly to retail salespeople

3.5 Variables and Measurement

According to Shahzad, Bhatti (2008), pay or compensation is a reward plan that

3.5.2 Job Security

Recognition is defined as a process of awarding an employee a certain status within

3.5.5 Sense of Accomplishment

Veroff (1977) defined sense of accomplishment as the feelings of success and

3.5.6 Personal Growth

3.6 Data Analysis Techniques

4.1 Descriptive Analysis

4.1.1 Respondent Demographic Profile

Table 4.1: Gender of Respondents

Table 4.2: The Age Group of Respondents

Table 4.3: The Marital Status of Respondents

Frequency Percent Valid Percent Cumulative Percent

Table 4.4: The Education Level of Respondents

Table 4.5: The Time Length of Respondents

Table 4.6: The Position of Respondents

4.1.2 Central Tendencies Measurement of Constructs