Professional Documents
Culture Documents
A Proposal submitted
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In partial fulfillment of
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,
IQRA UNIVERSITY
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
Acknowledgement
With the blessings of Almighty Allah who is most merciful and beneficial, we are excited to
present our little contribution to the expansion of some research. We are grateful to our
supervisor, Mr. Umer Ahrar, without his help guidance and motivation this work would not have
been possible. The commitment and dedication reflects our work in this research paper, which
can be useful in the future. We would like to thanks our teacher, class fellows, friends and those
We are extremely hopeful that this research paper can be informative to other students.
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
Abstract
This study examines the influence of Organizational Culture and compensation on employee
dominator among the most successful companies; the organizational culture has become
positive imperative effect on work motivation. This study is based on the primary data according
to the nature of the study. The data of this study have been gathered through design
questionnaires on the bases Likert scale. Total 150 employees from different organizational
Employee performance and work motivation was taken as the dependent variable whereas
Organizational culture and compensation were taken as independent variable. To get the results
Correlation (chi square) was applied with the use of SPSS 17 software. The results indicate that
the Organizational culture, compensation and work motivation has direct influence on employee
performance.
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
Contents
Acknowledgement..................................................................................................................................2
Abstract..................................................................................................................................................3
Chapter 1: Introduction........................................................................................................................6
1.1 Background of the study....................................................................................................................6
1.2 Problem Statement.............................................................................................................................7
1.3 Purpose of the Study..........................................................................................................................7
1.4 Significance of the study...................................................................................................................9
1.5 Outline of the Study:........................................................................................................................10
1.6 Definition of the terms:....................................................................................................................10
Chapter 2 Literature Review:.............................................................................................................11
2.1 Underpinning and supporting theories.............................................................................................11
2.2 Empirical Review:...........................................................................................................................13
2.3 Theoretical Framework:...................................................................................................................18
2.4 Hypotheses:.....................................................................................................................................18
Chapter 3: Research Method:.............................................................................................................19
3.1: Research Approach:........................................................................................................................19
3.2: Research Design:............................................................................................................................20
3.3 Sampling Design:............................................................................................................................20
3.4 Instrument of data collection:..........................................................................................................21
3.5 Procedure of data collection:...........................................................................................................21
3.6 Statistical Technique........................................................................................................................21
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
Chapter 1: Introduction
Successful organization is to have a culture based on a strongly held and widely shared beliefs.
Human Resource has an important role in perceiving culture, starting with recruiting and
A strong culture is a common dominator among the most successful companies, the
The results of this study found that, compensation and organizational culture have a positive
According to Doug Conant, to win in the market place, you must first win in the workplace,
according to Gordon and DiTomaso (1992); Sorensen (2002) strong corporate culture increase
This study is about the influence of organizational culture and compensation on employee
performance with work motivation as a mediating variable, focusing the 4-drive theory, the four
drive model of an employee motivation is a holistic way to look beyond typical financial
workplace rewards. It is an innovative and unique approach for organizational leaders and each
The four drive theory of motivation explained in the book driven by Drs. Pawl Lawrence (2002).
Through statistical technique paired-t test where comparing the two populations of top Pakistani
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
Banks, two samples in which observations of one sample can be paired with observations in the
other sample.
The productivity and culture of organization helps in improving performance, the job
enhance productivity. Corporate culture binds the workforce together and provides a direction
for the company, different cultures operating in one company can also impact employee
performance. For example, if the organisation maintains a reserved “talk when necessary”
culture, employees may work accordingly - however, if the organisation allows one area, say the
sales team, to be outspoken and socially active, the organisation may experience rivalries among
areas. Thus, allowing an area to set up their own culture can affect the performance of the
Maintaining organizational culture is the most challenging part for any company because
maintaining organizational culture will increase the level of employee engagement, every
employee must be involved in every activity and reinforcing it all the time is daunting. To avoid
burnouts, there must be a fit between the individual and the organization.
Scientists agree that satisfaction and performance increases the intrinsic motivation.
both simple and monumentally challenging to build the type of company culture that inspires and
sustains motivation and engagement.Kroeber and Parsons (1958) proposed a conceptual and
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
In this study we find the impact of any organizational culture on employee performance and
compensation on employee performance with work motivation so usually purpose of the study
is:
organization they are responsible for employee performance as well as organization performance
because how much they motivate their employees that much they earn from them so in this study
we actually compare these terms and find how much they affect each other in any organization
and how much they relate or differ with each other as well as the relationship between them so
we compare these:
Above 5 statements clearly show and define the purpose of the study.
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
The study was conducted from Pakistani banks through paired T-test and applying 4 drive
theories. Through above statements we just take an idea that, if culture of organization is good so
it impacts a good influence on work and motivate as well. same as if culture is bad so it impacts
bad influence on work. Like if any organization gives compensation to an employee so he/she
become happy and motivate also. As well as if there is no reward so there is no motivation at all
for employees. Then if we talk about employee performance so this is based on organizational
culture, compensation and work motivation and they plays an important role in any organization
performance.
Organizational culture affects performance of employees and motivation level also. Through
employee performance any organization can easily achieve their goals. This study fulfills and
Pakistani banks.
5-If function of culture is good so it motivate overall environment of an organization and the way
of thinking of employees.
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
7-Strong culture impact performance of employees long lasting because now they think
8-These all benefits impact on employee personal life also because when your mind become
These all significance of organizational culture impact in organization as well as general also.
This research will be beneficial to the development of organization as well as employee thinking
The basic concept of this research paper is to examine the impact of organizational culture and
compensation on employee work motivation and performance. The variables that we will discuss
Performance. However, the method of data collection will be Questionnaire and Survey research.
In the sampling method we will use Census technique however the sample size will be of 150
employees. Then we will analyze the research through statistical method and that will be
assumptions, values and ways of interacting that contribute to the unique social and
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
This is the theory that covers entire needs of an employee and is widely used in almost every
part of the world. Abraham Maslow is among the most prominent psychologists of the twentieth
century. His hierarchy of needs is an image familiar to most business students and managers.
There are some needs that are basic to all human beings, and in their absence nothing else
matters. As we satisfy these basic needs, we start looking to satisfy higher order needs. In other
Physiological Needs: These needs are basic to human life and, hence, include food,
clothing, shelter, air, water and necessities of life. These needs relate to the survival and
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
maintenance of human life. They exert tremendous influence on human behavior. These
needs are to be met first at least partly before higher level needs emerge. Once
Safety Needs: After satisfying the physiological needs, the next needs felt are called
safety and security needs. These needs find expression in such desires as economic
security and protection from physical dangers. Meeting these needs requires more money
and, hence, the individual is prompted to work more. Like physiological needs, these
Social Needs: Man is a social being. He is, therefore, interested in social interaction,
Esteem Needs: These needs refer to self-esteem and self-respect. They include such
capability of being useful in the organization. However, inability to fulfill these needs
Self-Actualization Needs: This level represents the culmination of all the lower,
intermediate, and higher needs of human beings. In other words, the final step under the
need hierarchy model is the need for self-actualization. This refers to fulfillment. The
term self-actualization was coined by Kurt Goldstein and means to become actualized in
what one is potentially good at. In effect, self- actualization is the person’s motivation to
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
According to Maslow, the human needs follow a definite sequence of domination. The second
need does not arise until the first is reasonably satisfied, and the third need does not emerge until
the first two needs have been reasonably satisfied and it goes on. The other side of the need
hierarchy is that human needs are unlimited. However, Maslow’s need hierarchy-theory is not
Management (HRM), and how it is allocated sends a message to employees about what the
companies consider to be essential and really worth encouraging. For employers, the
view this only as a cost, while failing to think about the strategic advantages of a properly
Compensation is all income in the shape of money, direct or oblique goods received through
personnel in return for offerings supplied to the company”. In addition, if employees sense they
have not been properly compensated, there is excessive emotional dissatisfaction. This emotional
feeling will grow and accumulate over time, making employees sad and disappointed with
working for the corporation (Mabaso & Dlamini, 2017). Thus, compensation is necessary for
employees as employees due to the fact the amount of compensation displays the magnitude of
their work among the employees themselves, their families and the community (Sudiardhita et
al., 2018)
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
First, individuals acquire some kind of reward, extrinsic (such as money) or intrinsic (satisfaction
coming from the work), in change for their performance Steers and Porters (1991). The person
holds positive non-public expectations in terms of form and quantity of reward, which he/she
must acquire for the furnished service. Thereby, the overall performance of a individual as well
as the decision to remain in the organization is influenced through the degree to which such
expectations are met Steers (1991). Second, the workplace affords opportunities for socialization
with other humans Hall (1994). Third, the job is regularly a source of rank, or status, in the
society in normal Steers (1991). In other words, the work can also provide a source of social
delineation. Fourth, cause pointed by way of Steers and Porter (1991) shows that work has an
individual that means for every person. It may additionally range from a source of identification
and self-esteem, to a source of frustration, monotony, and a feeling of futility, which can also be
due to the work itself or even might also be due to the personality traits of the person.
When work motivation increases, productivity will increase, the outcomes can show that
motivation has a giant high-quality impact on worker productivity. Compensation has a direct,
positive and significant effect on work productivity. Tilaar et al. (2017), if compensation rises;
productivity will rise indicating that compensation has a full-size impact on work productivity. A
productive work environment in addition to motivating worker work can additionally extend
employee motivation and exhilaration that can make employee productiveness will be maximal.
Research performed by using states that the work environment has a effective and significant
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
values and goals helps in improving subculture of an organization. The system of organization
was based upon high quality establishment of culture that maintain gaining knowledge of
spine organization as it leads to its improvement effectively. The loyalty of employee relies upon
understanding and focus of culture that improves conduct of organization (Brooks, 2006)
Organization culture have first time been identified through Administrative Science quarterly
(Pettigrew, 1979). The value and norms of employee’s basis upon administration identification
that assist in enhancing worker performance the awareness of first-rate helps in enhancing
Organizational Culture
The distinctive attributes of culture have been arranged on basis of norms and attitudes which
help in differentiating one company from another. (Forehand and von Gilmer, 1964) The process
of questioning helps in setting up one member from every other on basis of cognitive thinking.
The success guidance primarily based upon exclusive values and norm that makes culture
effective (Schein, 1990). The set of beliefs, behaviors, norms and values helps in making
tradition most nice (Kotter and Heskett ,1992). The understanding of culture has been received
through perception and beliefs on groundwork of large groups. The thought of high-quality
company lies upon countrywide and overseas culture differentiation in culture management. The
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
subculture of organization has been affected via attitudes, norms and beliefs that lead to strong
Strong Culture
(Deal and Kennedy, 1982) The discount in gaps on employee relationship has been agreed with
managers so far. The regulations in organization have to be considered essential for employees.
The policies, strategies and objectives designed through top managers have to influence upon
behavior of personnel so that competitive advantage have been gained. (Deal and Kennedy,
1982)
Weak Culture
The diversity between personal objectives and organizational goals has creative management of
policies and procedures so that perfect association has been created between them. (Deal and
Kennedy, 1982)
workplace is called performance. Performance has been perceived differently through a number
of researchers, but most of the scholars relate overall performance with measurement of
constructing up with the aid of degree of success of a particular goal or mission that defines
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
Denison (1984) studied 34 Americans cultural performance on basis of characteristics that helps
in enhancing performance over time. The culture and overall performance have been interrelated
to each other primarily based upon perfect association between business processes. In more than
200 organizations financial and long term performance have been investigated (Kotter and
Heskett ,1992). Several researches have been made to evaluate overall performance of
organization based upon efforts as culture has been given significant association.
According to Luthans (2002), motivation is the process of producing and maintaining behavior
and performance. One way to motivate individuals is to make employees more satisfied so that
they are committed to their work. Organizational culture refers to the values and norms of
behavior that are accepted and understood together by members of the organization as a basis for
the rules of behavior within the organization. Motive is defined as a tendency to move, starting
from self-impulse and ending with adjustment (Sperling, 1987). The organization will influence
the level of employee motivation and will make employee motivation high to control and
Compensation is a form of implementing human resource management functions that relate to all
types of awards given to individuals for doing their work. According to Hameed et. al., (2014)
and Teclemichael and Soeters (2006), compensation has an effect on employee performance
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
Increased motivation leads to increased performance and decreased motivation causes a decrease
in performance (Kothari, 2008). The higher the level of employee motivation in carrying out the
work, the better the employee’s performance will be. Susan et. al., (2012) state that work
Organizational culture
Work Motivation
Employee Performance
Compensation
2.4 Hypotheses:
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
Quantitative Approach: Since we will be using Questionnaire later on so our research will be
based on quantitative approach. In this approach, first we will collect the data through
different organizational sectors in Karachi so that we could gather data in depth to understand
Inductive Approach: The inductive research method will be a systematic technique for
analyzing data during which the analysis is most likely going to be guided by specific evaluation
objectives. It will begin with a collection of empirical observations, looking for patterns in those
observations, and then it will theorize about those patterns. No theories or hypotheses will apply
in this inductive study at the starting of the research and therefore, we will be free in terms of
changing the direction for the study after the research process will begin
reviewing available literature review data like discussion and interviewing in depth with
research method researcher will explore the data investigation which will not clearly define. It
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
will conduct to explore much better understanding of the research data, but it will not provide the
final results
-Organizational culture, compensation and work motivation has direct influence on employee
performance.
Casual Research: The basic cause to do this research is to examine that whether the
organizational culture and compensation have any direct or indirect impact on employee
Target Population: Employees are our target population/audience because work motivation,
performance. Organizational culture affect performance of employees and motivation level also.
Through employee performance any organization can easily achieve their goals.
Sample Size: Sample size will be of 150 employees. The study was conducted from Pakistani
Sampling Technique:
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
performance as well as organization performance because how much they motivate their
employees that much they earn from them so in this study we actually compare these
research population are used as the sampling unit and divided into subgroups.
-In order to find these and according to our research “QUOTA SAMPLING” may be
useful because in this method interview technique used to select or find the results easily..
The population in this research study is 150 employees. Likert scale questionnaire will use in
our research data. The data will collect by employing a questionnaire such as physically hand
written or demographic questionnaire and through online survey by Google. The questions will
be 15 in our research study. After the information will collect, than it will analyze by a path data
technique using SPSS software system to measuring the relationships among the constructs
which are: organizational culture, compensation, and work motivation and worker performance.
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The influence of organizational culture and compensation on employee performance with work motivation as mediating Variable
This data research study will conduct from different employees in organizational sectors such
as; Industry, Private banks, Hospitals, Universities in Karachi. Liker scale base questionnaire
will be use in our research study. The questionnaire will fill by different types of employee’s
through physically hand-written questionnaire and online survey data collection by Google.
The statistical technique that we will be using is Multiple Regression the reason is that through
this method we will be able to predict the value of variables that we are focusing which is work
motivation more specifically and othee dependent variables are organizational structure and
compensation
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