The Relationship between Rewards and Employee Motivation in Commercial Banks of Pakistan

Kalim Ullah Khan Lecturer, Kardan Institute of Higher Education, Kabul, Afghanistan Syed Umar Farooq Professor, Kardan Institute of Higher Education, Kabul, Afghanistan Muahmmad Imran Ullah Chancellor, Abasyn University, Peshawar Abstract This paper seeks to investigate the role played by rewards in the process of motivating employees. The study explored factors determining rewards and their impact on employee motivation and endeavors to influence the commercial banks for a consideration of a more systematic and structured approach to acknowledge employees efforts which would in turn flourish high performance culture in commercial banks of Pakistan. The study also attempted to examine the relationship between rewards and employee motivation and the effects of biographical variables on work motivation. Descriptive statistics based on frequency tables and graphs were used in the study to provide information on demographic variables. The results are analyzed in terms of descriptive statistics followed by inferential statistics on the variables. The study revealed multiple factors affecting employee work motivation and performance which have got their own unique approach, significance and contribution towards motivation and performance that elevate and maximize organizational progress. A total of 200 questionnaires were distributed to respondents and a total of 167 employees completed the questionnaire. A quantitative methodology was used for the study and questionnaire method was used as the measuring instrument. The four independent variables of reward included, payment, promotion, recognition, benefits and the dependent variable was employee work motivation. The results indicate that there is a statistical significant relationship between all of the independent variables with dependent variable employee work motivation , all the independent variables have a positive influence on employee work motivation and result also showed that among four independent variable promotion was most important and more influential variable. The present study revealed that management can make use of different tactics strategies and policies to motivate employees in work settings , but different tactics, strategies and policies would have a different motivational impact on diverse people.

1. Introduction
A milestone in the successes of an organization is to fulfill the continuous changing needs of organization and employees; heavy responsibility falls on top management to develop strong relationship between them. Organizations expect employees to follow the rules and regulations, work according to the standards set for them; the employees expect good working conditions, fair pay, fair treatment, secure career, power and involvement in decisions. These expectations of both parties vary from organization to organization. For organizations to address these expectations, an understanding of employees motivation is required (Beer et al, 1984).
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It is generally assumed that employees come across human resource (HR) policies through the behavior their managers plan and explain to them, and through their management skills they have. Problem with understanding, Consistency confidence, capabilities are raised, and it is common opinion that line managers needed more to train and support themselves if they were to carry out their reward through the responsibilities of their duties such as performance management or effective recognition. The managers have be responsible for both to commit to the reward strategy and capable of implementing it. Rewards professional can come up with new demanding policies but the responsibilities fall on the line managers to implement them. Sometimes HR exposes for line managers to experience new policies but the line managers disposes these policies and thus unfamiliar and failing situation come at the end. CIPDs reward survey (2005a) reveals that human resource (HR) functions consulted Line managers to develop their reward strategies in fewer than half of the organizations, and some of the organizations even did not share the planning and strategy with them. The methods and formulas of effective understanding and implementation were hardly achieved. Guest and Conway, (2005 established their suggestions on the basis of CIPD survey on the employee welfare and emotional convention that may be managers fail to motivate and improve the performance of people whom they manage. The familiar notion that people leave managers, not organizations, suggests that the organizations concerned, were subjected to failure for holding managers responsible to understand their role in motivating people and to manage performance as effectively as they might manage. The biggest challenges for HR are to push line managers to manage and develop people. Commercial banks are physical structures maintained by human resources that enable the delivery of good service. The process of delivering quality service is the individual motivation of all employees whether professional, skilled or unskilled. With increase in the growth of the service industry the commercial banks at present struggle for employees possessing the capabilities of quality service. Research finds that it is a challenge for management in Pakistan today to motivate employees in commercial banks of Pakistan to provide quality services as it has been observed that there is tough competition among the above state area (Commercial banks in Pakistan) to provide best services to satisfy the needs of their customers. The commercial banks play important role in worldwide economy and their employees are the best sources of delivering good services to their customers. Excellent services provided and offered by employees can create a positive perception and ever lasting image in the eyes of banks customers. The individual motivation of a commercial bank employee plays a major role in achieving high level satisfaction among its customers (Petcharak, 2004). Cheng, (1995) Express his views and states that the biggest challenge for the banks management today is to motivate employees for sack of proficient offer and better services according to customers expectations. One of the major functions of human resource manager is to enhance and maintain employees work motivation. Human resource managements function is to assist the general manager or line management in keeping the employees satisfied with their jobs by providing motivation of different kinds. The dissatisfaction is conditioned with performance. If employees are not satisfied, they will not perform well to expected standards (Petcharak, 2004). Workplace dissatisfaction and poor performance may lead to high employee turnover in an organization particularly in a less developed and developing countries where there is little scope of opportunities for people to join other organizations but it may affect employees performance badly. Deeprose (1994), examined that the effective reward system improve employee motivation and increases employee productivity which contribute to better enhanced organizational performance. Baron (1983) argues that there is very close relationship between motivation and job performance. Both performance and motivation are directly proportion to each other. The premeditated successes for
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an organization lies in focusing attention at all levels specifically on important business activities, which can be achieved through effective performance management Nel et al.,( 2001). Wilson (1994), argues that the performance management process is one of the primary elements of the total reward system. It is the process that impacts performance between wages or salaries and provides the basis on which individual results are measured and calculated. Robert, (2005) reported that it is the relationship and linking agent in programs that direct rewards to true performance. Flynn (1998) states that the primary focus of reward programs is to examined how organizations classify their reward schemes and how they communicate to the employees and how clearly they understand the link between reward and performance. Robert, (2005) take into account the work of Baron, (1983) in which he mentioned that not only motivation can influence performance, but performance can also influence motivation, if followed by rewards. To summarize from the above facts, it is absolutely clear that organizations could benefit from implementing total reward programs that focuses on formal rewards.

2. Literature Review
In modern world of globalization the workplace realities of (yesterday) past organizations no longer exists. It is matter of past and needs to be revised carefully. It is important for the organizations to meet and introduce new motivational needs of employees since the change have been observed on the workplace realities in todays organizations (Roberts, 2003). Beer et al, (1984) strongly asserts in their research of changing work environment the reality that organizations today have totally changed, therefore it is more important for the top management to carry out new methodologies of developing strong and durable relationship between the organization and employees for meeting the organizational goals and fulfilling the continually changing needs of both parties. A complete and thorough understanding of employees motivation is required for organizations to address and accomplish these expectations (Beer et al, 1984). It is clear from the above that strong relationship among organizations and employees is an instrument for success in fulfilling the needs of changing work environment for both the parties. To make strong bond with employees the role of top management is crucial in this respect. Carnige (1985) focused the human aspect regarding management, strongly believes people who craft a formulation for an organizations success or failure are the chief executive-responsible for motivating his company employees in respect of their satisfaction and assurance of organizational success. Carnige mainly insists on human capital that plays pivotal role in an organizational effectiveness compared to financial capital. People rather than finance are observed in modern times as the primary source of a company competitive advantage. 2.1. Motivation and Job Performance According to Butkus & Green (1999), motivation is derived from the word motivate, means to move, push or persuade to act for satisfying a need. Baron (1983) defined motivation in his own right. He says that motivation is a set of process concerned with a kid of force that energizes behavior and directs it towards achieving some specific goals. Many writers have expressed motivation is goal directed behavior. This objective nature of motivation is also suggested by kreitner and Kinicki (2001, p. 162) put forward that motivation represents those psychological processes that cause the stimulation, persistence of voluntary actions that are goal directed. In another terms, a motivated person have the awareness of specific goals must be achieved in specific ways; therefore he/she directs its effort to achieve such goals (Nel et al., 2001). It means that motivated person is best fit for the goals that he/she wants to achieve as he/she is fully aware of its assumptions. Therefore if the roles of managers are assumed to successfully guide employees towards the organizational agenda of achieving its objectives, then it is very important for them to educate and
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understand those psychological processes and undertakings that root cause the stimulation, direction of destination, determination and persistence of voluntary actions (Roberts, 2005). Mo1 (1992) differentiate between the terms movement and motivation. Movement carries out the task for compensation, remuneration in humans mind to act, while the term motivation is stapled with total involvement of a person in its tasks to carry out with excitements and happiness. In simple words, movement make person compel to carry out tasks, while motivation is self realized jubilant and pleasing act of carrying out specific tasks. The researcher emphasizes on motivation which is basis for the success because the person involved in it is very happy and voluntarily excited not for compensation. Motivation is reason for individuals accomplishments to carry out the project La Motta (1995). There are many aspects of motivation in an organization, A person motivated by those aspects may not necessarily motivate another person gives reasons, because there are many different factors that affect motivation level of different employees. On reaching the understanding and believing that people (employees) are naturally motivated, an organization simply provide the environment for their motivation to be enhanced and improved (Baron, 1983). It means that an organization is a better environment and working atmosphere provider, it only needs to believe that the people have the motivational behavior. Lawler (2003) noted that different theories questioning why people prefer certain careers, why they seek particular rewards and why they feel satisfied or dissatisfied with their work and rewards. These are some of the resonating questions that create so many assumptions and hypotheses to be researched. It is important to review the literature on motivation clarify the issues. 2.2. Importance of Motivation The achievements of individuals and organizational goals are independent process linked by employeework motivation. Individuals motivates themselves to satisfy their personal goals, therefore they invest and direct their efforts for the achievements of organizational objectives to meet with their personal goals also. It means that organizational goals are directly proportion to the personal goals of individuals. Robert (2005) reported that the manager job is to ensure the work done through employees is Possible, if the employees are self motivated towards work rather directed. The managers involvement is not so much important in the motivation of employees. The employees should motivate themselves to work hard. The major issue in all services organizations is the motivation of employees whether they are skilled or unskilled or professionals. Employee motivation is also a major issue for the commercial banks. It is a todays challenge for the management in this competitive world to motivate employees to offer efficient and good services that customers expect so for. The employees motivation, their enthusiastic and energetic behavior towards task fulfillment play key role in successes of an organization to benefit (Cheng, 1995). According to Petcharak (2002), one of the functions of human resource manager is related to ensure employees workplace motivation. The human resource managers function should be to assist the general manager in keeping the employees satisfied with their jobs. Another goal in organization is the goal for the services manager is to develop motivated employees and encourage their morale regarding their respective works. The employee work morale, such as supervisors, peers, organization, and work environment can be defined in a sense that the employee has the feeling and be conscious about all aspects of the job. The performance is poor if the employee is not satisfied and happy. Workplace dissatisfaction often leads organization and its employees poor performance. 2.3. Levels of Employee Motivation According to research conducted by Mosley, Megginson, and Pietri in 2001, there are three levels of employees motivations.
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(1) The direction of an employees behavior. It relates to those behaviors which the Individuals choose to perform. (2) The level of effort. It refers to how hard th individual is willing to work on the behavior. (3) The level of persistence. It refers to the individuals willingness to behave despite obstacles. Daschler and Ninemeier (1989) conducted research and investigated what employees may seek from the work environment. Their discussion reviews some of employee-related concerns that can be found in the venue of strategies to employees motivation. Employees are individuals that come from different backgrounds, they have different education with different experiences and their different family classes are all the factors in which their needs be located. The primary interest of employees is to satisfy their personal needs, ambitions, desires and goals. An employee wants to satisfy its basic needs, linked to survival and security concerns and a desire to belong, to generate positive feelings from within and from others, and to be self-fulfilled. Most employees want (a) fair and consistent company policies in matters affecting them; (b) management they can respect and trust; (c) adequate working relationships with managers and co-workers; (d) acceptable salaries and working environment; (e) Appropriate job security assurance; (f) favorable job status. The other important factors that can fulfill and motivate employees are: challenging work, work that yields a sense of personal accomplishment, expression of appreciation for good performance, increased responsibility and the chance to grow in the job, the feeling of importance and making a contribution to the organization, and participation in job-related matters that affect the employees. The research conducted by Dr. Kashifurrehman et al., (2007) in Pakistan measuring the effect of Human Resource Strategies like pay, promotion and training on job satisfaction. Their study was focused on workforce of service based companies in Pakistan. They concluded from their research that pay, promotion and training had positive and significant impact on job satisfaction. They argued and suggested that employees in Pakistan give more importance to pay and promotion than training. The significant differences were found among male and female employees job satisfaction level in Pakistani based service organization. According to their reports service based industry is going under tremendous changes for the last few years in Pakistan. Due to these changes not only their transactions are increasing but their range of services is also expanding. As a result different sectors of service industry such as banks, educational institutes and telecommunication firms are experiencing swift turnover (Rehman et al., 2007) Human beings are motivated by requirements that fulfill their needs. These depend on many factors and vary by the individual requirements and necessary situation. Besides basic needs that range from food, clothing, medicine and shelters, there is workplace that needs to be extended for acceptance and self-esteem. The researcher has indicated that each individual experience these factors in different level. Therefore, managers should figure out the basic theories of motivation, how to better (Cheng, 1995).

3. Methodology
3.1. Population and Sample Sekaran (2001, p. 225) defines a population as the entire group of people, events or things of interest that the researcher wishes to investigate. The population for the research was obtained from commercial banks of Pakistan, the subjects selected for the present study were employees of commercial banks of Kohat consisted of commercial banks employees of all levels. A total of 200
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questionnaires were distributed to respondents and a total of 167 employees completed the questionnaire. 3.2. Theoretical Framework
1.Payment 2.Promotion 3.Benefits 4.Recognition

Motivation

3.3. Data Gathering Instrument A quantitative methodology was used for the study and questionnaire method was used as the measuring instrument. There were two main sections of questionnaire, included biographical questionnaire and the work motivation Questionnaire which comprises of items regarding four variables of rewards developed by De Beer (1987) and items regarding four dimensions of employee work motivation. Data regarding four dimensions of employee work motivation was also collected through questionnaire consisted of items about the following four dimensions of employee motivated behavior. 1. Focus: The direction of an employees behavior. It relates to those behaviors which the individual chooses to perform. 2. Intensity: he level of effort. It refers to how hard the individual is willing to work on the behavior 3. Quality: Quality is the task strategies or the way employee perform the task. 4. Duration: The level of persistence. It refers to the individuals willingness to behave despite obstacles. The Cronbach-Alpha reliability coefficients for the subsections of questionnaire are as follows: payment (r = 0.86), promotion (r = 0.84), Recognition (r = 0.90), and benefits (r = 0.84). 3.4. Data Collection through Interviews In collecting concerned data, Questionnaire was used as the main method and interviews were also conducted and applied on the employees of commercial banks of Pakistan. Interviews were conducted from the targeted population generally and some of the important personnel were considered specifically from the same sample. Regarding the relationship of reward and motivation, the employees of the target population were given open option to point out different aspects of the reward system. The intentions of this study were mainly focused on effectiveness of reward system to motivate employees of commercial banks of Pakistan. It was observed that the respondents were active and helpful in the above mentioned process and main points were hinted out are stated below, which will be discussed in chapter number four in detail. 3.5. Data Analysis Statistical Package for the Social Sciences (SPSS) version 16 was used in the present study for the purpose of analysis and presentation of results. Descriptive statistics based on frequency tables and graphs used to provide information on demographic variables. The descriptive statistics used in the present study are based on tables of frequency distribution and graphical presentation for the responses of work motivation with respect to biographical information of the respondents. The sign of a correlation coefficient ( or -) shows the direction of the relationship between 1.00 and +1.00. For the purposes of this study, the Pearson Product-Moment Correlation Coefficient was used to determine:
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The relationship between rewards (Payment, promotion, benefits, recognition) and employee work motivation in commercial banks of Pakistan. Analysis of Variance (ANOVA) is a statistical technique used to analyze data from designs that whether there are significant differences in work motivation based on the biographical characteristics of the sample. When significant mean differences among the groups are indicated by the F statistic, there is no way of knowing from the ANOVA results alone as to where they lie. The Scheffe post hoc test is necessary to find out which pairs of means differ. This procedure of multiple comparisons involves computing an F value for each combination of two means.

4. Findings
The results of the descriptive analyses are presented first, followed by the inferential statistical analysis. 4.1. Biographical Information of the Respondents (N=167)
Table 4.1: Frequency distributions of respondents with respect to their Gender.
Gender of the Frequen 9 158 167 Perce 5.4 94.6 100. Valid 5.4 94.6 100. Cumulativ Perce 5.4 100.

Valid

femal male Total

Table 4.1 indicate the gender allocation of the sample of respondents from the commercial banks at which the research was conducted. As can be seen from the figure and table, the majority of the sample (n = 158) or 94.6% was male, while the remaining 5.4% (n = 9) comprised of female respondents.
Table 4.2: Frequency distributions of respondents with respect to marital status.
Marital Status of the respondent Frequency 69 98 167 Percent 41.3 58.7 100.0 Valid Percent 41.3 58.7 100.0 Cumulative Percent 41.3 100.0

Valid

single married Total

As can be seen in table 4.2 that majority of the sample (58.7%) was married while 41% was single.

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Table 4.3: Frequency distributions of respondents with respect to age.

age of the respondent Frequency 7 28 44 30 20 38 167 Percent 4.2 16.8 26.3 18.0 12.0 22.8 100.0 Valid Percent 4.2 16.8 26.3 18.0 12.0 22.8 100.0 Cumulative Percent 4.2 21.0 47.3 65.3 77.2 100.0

Valid

20-25 years 26-30 years 31-35 years 36-40 years 41-45 years above 45 years Total

The age of the participants were divided into five groups, as table 4.3 show that majority of the sample (26.3%) were of age 31-35 followed by 22.8% who were from 45 & above , 18% were from 36-40,12% were of age 41-45,and only 4.2% were of age 20-25
Table 4.4: Frequency distributions of respondents with respect to qualification.
qualification of the respondent Frequency 11 62 90 4 167 Percent 6.6 37.1 53.9 2.4 100.0 Valid Percent 6.6 37.1 53.9 2.4 100.0 Cumulative Percent 6.6 43.7 97.6 100.0

Valid

12 years of education 14 years of education 16 years of education 18 years of education Total

The respondents qualification level were categorized, their qualification levels were divided into four groups i.e. 6.6% were of 12 years of education, 37.1% were of 14 years of education, 53.9% were of 16 years of education and only 4 % were of 18 years of education. It shows that majority of the employees were post-graduate i.e. 53.9%.
Table 4.5: Frequency distributions of respondents with respect to experience.
experience of the respondent Frequency 17 72 8 19 12 39 167 Percent 10.2 43.1 4.8 11.4 7.2 23.4 100.0 Valid Percent 10.2 43.1 4.8 11.4 7.2 23.4 100.0 Cumulative Percent 10.2 53.3 58.1 69.5 76.6 100.0

Valid

less than 1 year 1 year - 5 years 6 years - 10 years 11 years - 15 years 16 years - 20 years 21 years - or longer Total

Frequency distribution of the respondents experience level is shown in table 4.5 and also shown in figure 4.5, it can be seen that most of the respondents experience level (43.1%) was 1-5 years followed by 23% who worked 21 years or longer.
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4.2. Results of the Work Motivation Questionnaire Descriptive statistics in the form of arithmetic means and standard deviations for the independent variables and dependent variable for the respondents were computed and presented in Table 4.6
Table 4.6: Descriptive statistics of rewards and employee work motivation
Variable Payment Promotion Recognition Benefits Employee Motivation Mean 2.89 3.23 3.79 2.87 3.77 Standard Deviation .65 .64 .62 .63 .64

Table 4.6 shows that the means for the payment, promotion, recognition and benefits ranged from a low of 2.87 to a high of 3.79. Results of the descriptive statistics in terms of arithmetic mean and standard deviation show that staff in the sample are relatively motivated, the mean values for all the variables are relatively high. Above mean values of independent variables and dependent variables show that they are motivated by the payment, promotion, recognition and benefits they receive and mean value for benefits compared to other variables values shows that they are less motivated by the benefits they receive. Mean value for employee motivation is 3.77 which shows that employees of the commercial banks of Kohat, Pakistan are motivated overall. 4.3. Inferential Statistics In this section the results of the inferential statistical techniques used in the study are presented. Pearson Product Moment Correlation Coefficient was calculated to see the relationship and analysis of Variance (ANOVA) was applied to see the differences based on biographical variables and multiple regressions was applied to see that which among the four independent variable is most important. Based on the results obtained from the research, conclusions are drawn. 4.3.1. Correlation The Pearsons Product Moment Correlation Coefficient was computed for the purpose of determining the relationship between rewards and employee motivation in commercial banks of Pakistan. In order to find out the relationship between the different variables of rewards (Payment ,promotion, recognition ,benefits) with employee motivation., the relationship of independent variables with employee work Motivation were correlated and presented in Table 4.
Table 4.7: Correlation of Payment, promotion, recognition and benefits with work motivation.
Employee work Motivation Pearson correlation Significance (2-tailed) Payment 0.78 0.000 Promotion 0.86 0.000 Recognition 0.65 0.000 Benefits 0.74 0.000 ** Correlation is significant at the 0.01 level (2-tailed) Variables

The results reported in the above table show that payment (r = 0.78, p < 0.01) is significantly related with employee work motivation in commercial banks of Pakistan. It means that increase or decrease in payment will bring corresponding change in employee work motivation. Promotion variable of reward is also significantly related with employee motivation and play very important role in employee work motivation. As can be seen in above table (r =.86, p< 0.01). A
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statistical significant relationship was also observed between recognition and work motivation (r = 0.65, p <0.01). Result reported in the above table show that benefits is also significantly correlated with work motivation of employees (r = 0.74, p < 0.01), which support the hypothesis that benefits is significantly related with employee work motivation. The results reported in Table 4.7 show that all different variables of rewards namely payment, promotion, recognition and benefits are significantly related with employee work motivation in commercial banks of Pakistan which means that if the reward offered to employees were to change, there would be a resultant change in work motivation. 4.3.2. Analysis of Variance (ANOVA) Analysis of variance was applied to know whether there are differences in work motivation of employees based on the biographical characteristics of the sample. The analysis of variance F-test is used to test the hypothesis that several group means are equal. However, the F test or ANOVA is not able to tell us which means are different from which other means. The Scheffes post hoc test of multiple comparison procedure is applied to find which pairs of means differ.
Table 4.9: ANOVA: Differences in employee work motivation based on gender.
Gender Male Female ** P < 0.01 M 3.12 2.43 S .69 .49 N 158 09 F 3.15 P .000**

Results of ANOVA in above table show that there is a significant mean difference in the work motivation experienced by male and female employees (p < 0.01). Females reported lower levels of work motivation as can be seen in above table (Mean = 2.43, s =.49) than males (Mean = 3.12, s = .69) on the basis of rewards received.
Table 4.10: ANOVA: Differences in employee work motivation based on marital status
Marital Status Single Married ** p < 0.01 M 3.13 2.21 S .57 .20 N 69 98 F 3.45 P .000**

A significant mean difference was found in the work motivation levels of employees based on their marital status. As can be seen in above table that married employees reported low level of motivation followed by single employees.
Table 4.11: ANOVA: Differences in work motivation based on age.
Sum of squares 2.651 46.231 48.882 df 5 162 167 Mean square 1.325 0.388 F 3.412 P-value .000**

Between groups Within groups Total ** p < 0.01

From the above table , it is found out that there were significant differences among groups on .01 level (F=3.412, p <.01) on the basis of age. The significant ANOVA result indicates that there are differences in the means, but it does not tell us which means are different from which others. In order to determine in which groups there were significant differences, A Scheff Test was applied and result is reported in the following tables.
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Table 4.12:
Age 20-25 25-30 26-30 31-35 36-40 41-45 45 & above

Mean values of work motivation based on age.

N 7 28 44 30 20 38 M 2.69 2.68 2.39 2.99 2.67 3.20 S .73 .70 .52 .59 .49 .69

Employees in the age group 31-35 reported the lowest levels of work motivation (Mean = 2.39, s = .52) than employees in the other age groups. Employees in the age group 45 and above reported the highest work motivation (Mean = 3.20, s = .69)
Table 4.13:
(I) Age

Scheffe Post Hoc Test: Significant Mean differences in work motivation based on age .
(J) Age 26-30 31-35 36-40 41-45 45 & above 31-35 36-40 41-45 45 & above 36-40 41 & 45 45 & above 41-45 45 & above 45 & above Difference (I-J) .01 0.3 -.03 .02 -0.51 .29 -0.31 .01 -0.52 -0.6 -0.28 -0.81 .32 -0.21 -0.53 p. .88 .94 .12 .11 .13 1.00 .32 .29 .20 .13 .34 .00** 1.00 .12 .09

20-25 years old

26-30

31-35 36-40 41-45 ** P < 0.01

There is a significant mean difference in the work motivation experienced by employees based on their age. Scheffes methods provide strong evidence of a significant difference in the mean level between 31-35 and 45 & above (Table 4.13)
Table 4.14: ANOVA: Differences in work motivation based on experience
Sum of squares 2.097 40.115 48.882 Df 5 162 167 Mean square 1.049 0.337 F 3.110 P-value .000**

Between groups Within groups Total ** P < .01

Anova table 4.14 indicates that there were significant differences among groups on .01 level (F=3.110, p <.01) on the basis of experience. To determine in which groups there were significant differences, A Scheff Test was run and result is reported in the following table.

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Table 4.15:
Experience < 1 year 1-5 years 6-10 years 11-15 years 16-20 years > 20 years

Mean values in work motivation based on experience

N 17 72 8 19 12 39 M 2.20 1.81 2.46 2.32 3.01 2.16 S.D .46 .25 .73 .44 .32 .65

Those with 15 years experience reported the lowest work motivation (Mean= 1.81, s = .25) based on rewards compared to the other groups. Those with 16-20 years experience in the organization indicated the highest work motivation(Mean=3.01 ,s=.32) compared to all the other categories of employees (Table 4.15)
Table 4.16: Scheffe Post Hoc: Mean differences in work motivation based on Experience
(I) Experience (J) Experience 1-5 years 6-10 years 11-15 years 16-20 years >20 years 6-10 years 11-15 years 16-20 years >20 years 11-15 years 16-20 years >20 years 16-20 years >20 years 45 & above Difference 0.39 -0.26 -0.12 -0.81 0.04 -0.56 -0.51 -1.2 -0.35 .14 -0.55 0.3 -0.56 .16 .45 (I-J) p-values .78 .84 .11 .10 .14 1.00 .32 .00** .21 .12 .34 .00* 1.00 .12 .09

< 1 year

1-5 years

6-10 years 11-15 16-20 years ** P<0.0

Scheffe test indicated significant mean differences in the work motivation levels of employees based on experience. Scheffes methods provide strong evidence of a significant difference in the mean level between 1-5 years and 16-20 years of experience (Table 4.16)
Table 4.17: (ANOVA): Differences in work motivation based on education level
Sum of squares 2.097 40.115 48.882 df 3 164 167 Mean square 1.049 0.337 F 3.95 P-value .000**

Between groups Within groups Total ** P<.01

ANOVA results indicated that there are significant differences among groups on .01 level (F=3.95, p< .01) on the basis of education level. As ANOVA do not tell us which group is significantly different from other groups, to know which group is significantly different Scheffe test was applied and result is reported in the following table.

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Table 4.18: Mean values in work motivation based on educational Qualifications

Educational level 12 years education 14 years education 16 years education 18 years education N 11 62 90 4 M 1.67 2.11 2.87 2.17 S .57 .70 .67 .79

Those with education levels up to 12 years show low level of work motivation than other education levels. Employees with the 12 years educational level reported the lowest levels of work motivation(Mean = 1.67, s = .57 ) than employees with 14 years education (2.11, s = .70), 16 years education (Mean = 2.87, s = .67), 18 years education (Mean = 2.17, s = .79) .
Table 4.19:
(I) age 12 years education 14 years 16 years ** P<0 .01

Scheffe Post Hoc Test: Mean differences based on qualification

(J) age 14 years education 16 years education 18 years education 16 years education 18 years education 18 years education Difference (I-J) -0.44 -1.2 -0.5 .54 .07 0.06 p 1.00 .00** -0.5 .16 .58 .13

Scheffe test in above table shows that there is a significant mean difference in the work motivation levels of employees based on education level. According to Scheffes methods there is a strong confirmation of a significant difference in the mean levels between 12 years and 16 years of education (table 4.19) The Scheffes Test indicated the following results in terms of motivation levels of employees based on rewards received and the biographical variables of the sample: a) Female employees reported they were less motivated by rewards. b) Employees in the age group 31-35 showed low level of work motivation than employees in the other age groups. Employees in the age group 45 and above reported the highest work motivation relative to the reward they received. c) Married employees reported the lowest motivation based on rewards they received. d) Employees who had been working from last 5 years were less motivated. e) Employees with the 12 years educational level reported the lowest levels of work motivation than employees with other education level.

5. Conclusion
The research study has shown that management can make use of different tactics strategies and policies to motivate employees in work settings , but different tactics, strategies and policies would have a different motivational impact on diverse people. A motivation strategy may possibly have the power of enhancing motivation in one way and diminishing it in others. To make sure the success of motivational tools, it is important to consider the uniqueness of the situation and the diversity of the concerned group .It is the job of management to consider different alternatives according to situation. This study highlights various aspects necessary for motivating employees to improve their performance. It is observed that there is direct and positive relationship between rewards and employee work motivation. It means that reward is directly proportion to employee work motivation. The change in rewards offered to employees necessarily changes the work motivation and performance of employees. Better the rewards, the higher the levels of motivation and greater levels of employee
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performance. To specify the nature of reward, it is recommended for human resource managers (HRM) to highlight the suggestions received from the employees of commercial banks of Pakistan. According to employees, the rewards were not appropriate to their needs. The rewards received from the organization were inadequate to their needs. Promotion process was observed to be very slow and the recognition was so informal that it was felt like unnecessary with no extrinsic forms. It was suggested that informal recognition should be changed to formal recognition. The employees also observed that rewards are generally awarded to the employees at one level rather than according to the performances of the individuals. Some of the employees had taken the slow rewards awarding activity in critical ways. It is observed that rewards should be awarded to deserving employees in no time. The prompt rewarding of employees may motivate them and improve their performance. The intended reward should be awarded in a kind of ceremony to an employee and announced appropriately to motivate others. The lack of communication was seen as main barrier in employees motivation. During interview sessions an employee complained about the lack of announcement of rewards on time, thus the motivation effectiveness suffers. It is suggested to communicate reward to employees in proper ceremony on time, so that they can be better motivated. The interviewers suggested that the rewards should be based on objective criteria of performance and perceived as fair. The low level employees perceived the difference in salary, facilities, loans etc as demotivating factor. The interviewers suggested that there should not be large remuneration gaps among the various levels of employees. The rewards should be equitable and performance linked. During the interview session some employees perceived that the organization do not comply with promises made at the time of appointment. It was suggested that employment contract documentation should be implemented. The employees felt that rewards were not according to their expectations. It is recommended that rewards were not according to their expectations or in line with the Pakistan commercial banking environment.

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VLCC's Freight Rate Forecasting by Using Neural Network

Mohsen Mehrara Faculty of Economics, University of Tehran, Tehran, Iran E-mail: mmehrara@ut.ac.ir Ali Moeini Department of Algorithms and Computation, Faculty of Engineering University of Tehran, Tehran, Iran E-mail: moeini@ut.ac.ir Mehdi Ahrari Faculty of Economics, University of Tehran, Tehran, Iran E-mail: ahrari@ut.ac.ir Fahimeh Karubi Faculty of Economics, University of Tehran, Tehran, Iran E-mail: fahimeh_karubi@yahoo.com Abstract The purpose of this paper is to model and forecast the dynamics of the VLCC's freight rate and power tracking in the oil transportation market by using MLFF neural network with back-propagation learning algorithm and GMDH neural network with genetic learning algorithms. We chose to model the freight rate for VLCC's (World scale or $/Tonne) for the selected voyage from Kharg Island, Iran to Yokkaichi, Japan. This paper uses simple moving average inputs and the result confirms that by GMDH approach twice-multilayered neural networks, prediction accuracy in comparison to MLFF neural networks can be improved and using GMDH method has reduced error and enabled us to predict the future tanker rate movements with more accuracy. Key words: Multi-Layered Feed Forward (MLFF), Group Method of Data Handling (GMDH), Genetic Algorithm, Forecasting, Simple Moving Average (SMA), Tanker Markets, Freight Rates, VLCC.

1. Introduction
The body of literature that devotes itself to the estimation of the freight rate movements in ocean shipping is modest at best. However, this issue is very important given the role of the freight rate as the key economic variable for the pricing and hedging of freight rate contingent claims such as ships, ship charters with embedded options, and forward freight options. However, the dynamics of the spot freight rate is also of interest in the general economic literature, as it represents the spot price for a service in a global and perfectly competitive market. Neural networks are a class of generalized nonlinear models inspired by studies of the human brain. Their main advantage is that they can approximate any nonlinear function to an arbitrary degree of accuracy with a suitable number of hidden units. Neural networks get their intelligence from learning process, and then this intelligence makes them have the capability of auto-adaptability, association and memory to perform certain tasks.
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The GMDH is the inductive sorting-out method, which has advantages in the cases of rather complex objects, having no definite theory, particularly for the objects with fuzzy characteristics. GMDH algorithms found the only optimal model using full sorting-out of model-candidates and operation of evaluation of them, by external criteria of accuracy or difference types [1, 2]. In this paper, a method of non-parametric approach to predict the freight rate is used to make appropriate model for predicting the VLCCs freight rate of the tanker market. As input variables to the neural networks, we use weekly assessments time series separately with 4 lags of the 1, 2, 3, 4 and 2 & 4-weeks simple moving average. These two models are coded and implemented in MATLAB software package. The prime aim here is to find out which neural network model does best in forecasting and so tracking for weekly VLCCs freight rate of the tanker market. The remainder of the paper is organized as follows. In Section 2 we present the literature survey. Section 3 describes the non-parametric modeling approach adopted here as per MLFF neural network with back-propagation algorithm and GMDH neural network with genetic algorithms which are briefly discussed. Section 4 discusses relevant concepts of the technical indicators used for the study. Empirical results are presented in Section 5, and concluding remarks in Section 6.

2. Literature Survey
Apart from Adland and Strandenes [3] and Tvedt [4] and Tvedt [5] who model the spot freight rate in a stochastic partial equilibrium framework, spot freight rate models have been restricted to simple parametric models adopted from financial economics: the Geometric Brownian motion (Dixit and Pindyck [6]), the Ornstein Uhlenbeck process of Vasicek [7] (see, for instance, Bjerksund and Ekern[8] and Tvedt[9]), and the lognormal process of Brennan and Schwartz[10] used in Tvedt[9]. These wellknown models are convenient as they usually facilitate closed-form solutions for the term structure of freight rates and certain freight rate contingent claims. However, in the last few years, the general literature has shown a tendency to turn to fully functional procedures to identify and estimate the functions that describe the solution to the stochastic differential equation (cf. Bandi and Phillips[11], and the references therein). The motivation for this focus is clear. By not imposing a specific parametric structure, fully functional methods reduce the extent of potential misspecifications. Unfortunately, they do so at the expense of slower convergence rates and inferior efficiency over their parametric counterparts. Yet, the informational content of accurately implemented functional methods can be put to work as a useful descriptive tool to understand more about the underlying dynamics from a general perspective and to investigate more effective procedures for parametric inference. In this paper we extend the recent literature on non-parametric modeling of freight market movements by using MLFF and GMDH neural network and compare them to find more accurate one. This is important, as maritime economic theory does not yet offer complete support for any specific parameterization of freight rate models a priori. Given the importance of the spot freight rate in valuing and hedging a broad array of freight rate contingent claims, non-parametric models are particularly suitable to avoid potential misspecifications. Adland and Cullinane[12], demonstrate the use non-linear dynamics of spot freight rate in tanker markets using a general non-parametric Markov Diffusion model. Their empirical results suggest that the dynamics of the spot freight rate can best be described by a non-linear stochastic model. Batchelor, Alizadeh and visvikis[13] have test the performance of popular time series models in predicting spot & forward rates on major seaborne freight routes and they find that in predicting forward rates the Vector Equilibrium Correction (VECM) Models is unhelpful, and ARIMA or VAR models forecast better. In the field of engineering decision systems, techniques based on inductive human behavior have been developed. Among such systems are neural networks, the genetic algorithm and their integration [14]. These engineering-based systems have gradually found their way into business and
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