Final Year Thesis

Impact of Monetary Rewards for employees on employee’s performance and organizational efficiency

Submitted To:

Dr. Aizaz Ahmad

Submitted By:

Mohammad Zohaib Roll No. F2017001059

Tasmeer Wattoo Roll No. F2017001022

Arslan Asghar Roll No. F2017001101

Session 2017-2021

Institute of Aviation Studies

University of Management and Technology

1
Final Year Thesis

Abstract

The aim of this study is to examine the effect of monetary rewards on employee performance and organization efficiency of employees working in

Pakistan Civil Aviation Authority. The specific objectives of this study were as follows to see the effect of monetary rewards on employee performance

and organization efficiency, to see what type of rewards boosts the employee performance and organization efficiency, to study the relationship

between monetary rewards and employee performance and organization efficiency. The sample of the study comprised of 150 employees working in

Lahore Allama Iqbal International Airport (AIIAP). Data was collected using questionnaire method. The data obtained was processed using the

Statistical Package for Social Sciences (SPSS) and was analyzed using descriptive studies. The analyzed data was presented using tables, charts

and graphs. Results indicated that there is a positive moderate relationship between monetary rewards and employee performance.

Acknowledgment

First of all, we would like to thank Allah Almighty for creating us as a Muslim and for giving us powers and courage to spend life in a right way. This

project is like the bridge between practical and theoretical working, and we’re glad to fulfil this task We Would like to express our sincere gratitude to

our advisor Mr. Shahid Mehmood for his continuous support for our BSAM study and research and for his patience enthusiasm, motivation and

immense knowledge. He guided us all the time of research and that helped us a lot. We couldn’t imagine of having the better advisor and the mentor

for our Research project. Beside Mr. Shahid Mehmood, we would like to thank Mr. Aizaz Ahmed who prepared us for the research work and was

willing to solve out all our queries and cleared all the concepts regarding our project thesis. Our sincere thanks to our Principle of Institute of Aviation

studies department Mr. Imran Syed and all the staff of Institute of Aviation studies department: Mr. Iqbal Khan, Mr. Kalim ur Rehman, Ms. Amna

Hafeez for providing us an immense knowledge of Aviation Industry. We are highly obliged by taking an opportunity to say thanks to all the teachers

2
Final Year Thesis

who always helped and encouraged us throughout the degree. Last but not the least, we would like to thank our families for having believe and for

supporting us throughout the life

Table of Contents

Abstract

Acknowledgment

Chapter No. 1

1.1 Introduction

1.2 Hypothesis Statement

1.3 Null Hypothesis Statement

1.4 Problem Statement of Research

1.5 Research Frame Work

1.6 Research Mapping

1.7 Research Questions

1.8 Research Objective

3
Final Year Thesis

1.9 Research Gap

1.10 Research Scope

1.11 Type of Research

1.12 Survey Questionnaire

1.13 Population of Research

1.14 Sampling Technique

1.15 Data Collection Method

CHAPTER No. 2

Literature Review

2.1 Literature review

2.2 Questionnaire Was Adopted from Literature Review

CHAPTER No. 3

Research Methodology

3.1 Variables of Research

3.2 Methodology of Data Collection

3.3 Demographic Analysis

7 Organization Overview 20

7.1 Training

4
Final Year Thesis

7.2 Air Traffic

CHAPTER No. 4

Results and Data Analysis

4.1 Descriptive Statistics

4.2 Correlations

4.3 Coefficients

4.4 Correlations

4.5 Coefficients

4.6 Reliability Statistics

4.7 ANOVA

4.8 Factor Analysis

4.9 Component Matrix

CHAPTER No. 5

Conclusion

Recommendation

References

Appendix

5
Final Year Thesis

Chapter No. 1

1.1 Introduction:

There are many research studies that have conducted previously and the findings suggest that only few employees are committed to their work and are
fully engaged with the overall organization frame work. The reason is the low motivation factor that results in low employee performance and organization
efficiency. Lack of attention from the management of what employees actually want to get the best out of them results in low productivity and growth.
Employees in the organization need attention from their managers. They want that they get praised by their managers. They are motivated when they are
given incentives bonuses for their work. Motivation factor is driven by the monetary rewards, direction and resources given to the employees of the
organization, so they inspired and motivated to do their work. So, the problem of employee engagement and employee performance can be solved easily
if the organizations want to. Many business organizations today are improving their Human Resource Management to motivate the employee giving them
direction and rewards to get them committed to do their work. So, to find whether monetary rewards and motivation factors driven the employee
performance and organization efficiency we conducted our research in to see impact of different types of monetary rewards on driving the performance of
the employees and resulting in good overall organizational efficiency. Monetary Rewards play an important role in driving the employee performance and
improving the organization performance as well. Although there are other factors as well that have an impact on the employee commitment but as far the
monetary rewards are concerned, they are is a huge impact of monetary rewards on the employee performance and commitment towards the
organization goals. Employees feel themselves motivated and feels like they are the internal part of the organization in result they work hard to achieve
the desired results. They deal with the stressful situations more effectively when they are known to the organization culture of rewarding employees and
praising them for their work as well.

Organization Overview

Our research is based on Pakistan Civil Aviation Authority that is a public sector autonomous body under the administrative control of the Secretary to the
Government of Pakistan for Aviation, which oversees and regulates all aspects of civil aviation in Pakistan

6
Final Year Thesis

Training

Civil Aviation Training Institute (CATI), Hyderabad works under the Civil Aviation Authority. CATI is accredited by the International Civil Aviation Organization
(ICAO) and is member of ICAO Train program. The institute was established in 1982 to fulfill training requirement of Pakistan Civil Aviation Authority and that
of the fellow countries of the region.[17]

The Civil Aviation Training Institute provides training in the disciplines of:

• Air Traffic Services

• Electronics Engineering

• Communication Operations

• Aviation Management & Administration

• Rescue and Fire Fighting Services

• Electromechanical Engineering
Air Traffic

Pakistan's airspace is divided into two flight information regions (FIRs).[13]

• Karachi Flight Information Region

• Lahore Flight Information Region

1.2 Hypothesis Statement

Monetary Rewards have a significant relationship with employee performance.

Monetary rewards have a significant relationship with organizational efficiency.

1.3 Null Hypothesis Statement

Monetary rewards do not have a significant relationship with employee performance

Monetary rewards do not have a significant relationship with organizational efficiency

7
Final Year Thesis

1.4 Problem Statement of Research

In the fast modern competitive business environment, the business organizations are facing deep problems regarding employee motivation, employee
commitment, employee engagement etc. which in turn effects the overall organizational efficiency. There are many research studies that have conducted
previously and the findings suggest that only few employees are committed to their work and are fully engaged with the overall organization frame work. The
reason is the motivation factor that results in low employee performance and organization efficiency. Lack of attention from the management of what
employees actually want to get the best out of them results in low productivity and growth. Employees in the organization need attention from their managers.
They want that they get praised by their managers. They are motivated when they are given incentives bonuses for their work. Motivation factor is driven by
the monetary rewards, direction and resources given to the employees of the organization, so they inspired and motivated to do their work. So, the problem of
employee engagement and employee performance can be solved easily if the organizations want to. Many business organizations today are improving their
Human Resource Management to motivate the employee giving them direction and rewards to get them committed to do their work. So, to find whether
monetary rewards and motivation factors driven the employee performance and organization efficiency we conducted our research in to see impact of
different types of monetary rewards on driving the performance of the employees and resulting in good overall organizational efficiency.

1.5 Research Frame Work

Dependent Variables (DV)

Employee Performance, Employee Efficiency, Team Work and Performance, Organization Efficiency Organizational Results, Organization Profits,
Organization Goals, Organization Productivity.

Independent Variables (IV)

Monetary Rewards (Extra Pay, Bonuses, Benefits, Financial Incentives, Profit Sharing, Inducement Pay, Merit Pay),

Controlled Variables (CV)

Monetary Rewards, Motivation (These variables have a controlled effect that can decrease employee performance and organization efficiency)

Mediator Variables (MV)

Reason for Preferring Monetary Incentives, Bonuses,

8
Final Year Thesis

1.6 Research Mapping

Variables

Pay, Bonuses, Benefits, Promotions, Financial Incentives, Profit Sharing

Dimensions

Monetary Rewards, (Extra Pay, Bonuses, Profit Sharing) Employee Performance (Employee Efficiency, Team Work and Performance) Organization
Efficiency (Organizations Results, Organizations Productivity, Organization Growth)

1.7 Research Questions

How monetary rewards impact the employee performance?

How monetary rewards impact the organizational efficiency?

Do monetary rewards have a significant relationship with employee performance and organizational efficiency?

What type of monetary rewards impact the employee performance and organization efficiency?

How the monetary rewards are helpful in achieving good results for organization?

How the monetary rewards are helpful in motivation of the employee?

9
Final Year Thesis

1.8 Research Objective

The main objective of the study is to explore how different variables of different types of monetary rewards impact the employee performance and
organization efficiency. The key intentions of the study are given below

To study the impact of different monetary rewards on organization and employee.

To analyze what type of rewards boosts the employee motivation and performance.

To asses the relationship between monetary rewards and employee performance.

To analyze what monetary rewards brings to the organization and employee.

1.9 Research Gap

As such that our research was concerned there were no such research gap but there can be hesitation of giving an honest feedback from the respondents on
our survey. The willingness from different employees to fill our survey because employees work in a very busy hectic airport environment, and they are busy
with their own work burden.

1.10 Research Scope

The scope of this research study is that the research can be conducted from the employees working in different aviation related organizations such as Airlines
and ground handling agencies on Allama Iqbal International Airport Lahore (AIIAP). The research can be extending to see the effect of monetary rewards on
employees working in different aviation related companies in on Allama Iqbal International Airport Lahore (AIIAP) and other airports of Pakistan. This research
will provide a great opportunity for the organizations top management to improve their relationships with the employees by analyzing what type of rewards
best motivates them and encourage them in their working environment. Organizations top Human Resource Management will get to know about the
motivating factors that best motivates the employees

1.11 Type of Research

Research is quantitative type. Quantitative type focuses on numbers and very helpful in testing the

Hypothesis. Quantitative type is the best way to finalize the results and also proving or disproving the

10
Final Year Thesis

Hypothesis.

1.12 Survey Questionnaire

Survey Questionnaire is purely self-constructed as it contains all the data from our own research about different independent variables to see the effect on the
dependent variables in our topic impact of monetary rewards on employee performance and organizational efficiency

1.13 Population of Research

Total number of Civil Aviation Authority Employees currently working on ALLAMA Iqbal International Airport Lahore.

1.14 Sampling Technique

Simple Random Sampling is done as our data collection is through Questionnaire link. The Questionnaire was developed using google forms and the
questionnaire link was send to the population under study such as the civil aviation authority employees working on OPLA. A sample of 150 out of selected
total population of employees was taken.

1.15 Data Collection Method

Research is quantitative type. Quantitative type focuses on numbers and very helpful in testing the

Hypothesis. Quantitative type is the best way to finalize the results and also proving or disproving the

Hypothesis. Quantitative Research Methodology was used. Likert Scales Questions were used to collect the responses

11
Final Year Thesis

CHAPTER 2

Literature Review
The purpose of this research is to acknowledge the Impact of Monetary rewards for employee’s performance and organization’s efficiency. Every
Organization needs to realize that both monetary rewards are important for employees. It is also considered that bonuses, incentives and a good salary also
have a powerful impact on employees’ performance. However, career development, personal impact and recognition enhance employees on job satisfaction.
As working on airport is a hectic job so it is mandatory to maintain the motivation criteria in employees. And it is concluded that organization can achieved
desired outcomes if they focused on giving monetary rewards to employees.

In the study of “International Journal of Development Research” we found that positive and significant relationship can be found between employees’
performance and employees’ motivation. It’s also found that intrinsic rewards have a positive and significant relationship with the performance of an employee
and his motivation and the training effectiveness has the negative impact with motivation. From the study of “Arabian Journal of Business and Management
Review we found that motivation has high impacts on employees performance. And motivated employees are the key factor of Organizational success.

[ CITATION NAB17 \l 1033 ][ CITATION Ebo \l 1033 ]

From previous studies we found that are motivated by salary and on duty allowance rather than the other monetary incentives/benefits (Belushi, 2017)
monetary rewards, job enrichment have significant and positive effects on employee performance (1Said Abdi Mohamed, Abdi Aziz Ahmed Ibrahim, 2017) .
Employees are less motivated by financial and recognition rewards and the variables contribute to a small extent in improving their job
performance. (Ndungu, 2017) . Financial Rewards and motivations are positively and significantly and positively associated with employees’ performance
(Kalhoro, 2017) . There is a strong relationship between financial rewards and on employee performance (Waqas, 2017) . Financial reward management
practices collectively have significant effect on organizational commitment (Nabi, 2017) . Results indicated that remuneration and job performance had a
positive effect on financial performance dimensions (Pang, 2018) . It indicate that a cumulative total of 78% of the employees were satisfied with the existing
PAS at the organization. (Idowu, 2017) Lower level employees prefer flexible working hours, merit pay and recognition, in particular as the top three
motivational rewards (Harunavamwe, 2013) Extra pay, bonuses, and inducement pay had a positive linkage with labor productivity (M., 2016) . A statistical
significant relationship between all of the independent variables with dependent variables employee work performance and all the independent variables have
a positive influence on employee work performance (Akhtar, 2012) . There is a positive relationship between extrinsic reward, intrinsic reward and employee
performance. (Edirisooriyaa, 2014) Performance rewards at workplace and its impact on the individuals that could be explored as future research (Sethunga,
2018) Management can improve the use of effective rewards and recognition systems in the feedback process of their performance management system to
motivate their employees. (Cheema, 2013) The reward had significant impact on motivation. [ CITATION Ver15 \l 1033 ] Rewards also impacts on
organizational commitment. [ CITATION Isa16 \l 1033 ] Managers must improve the morale of their employees through a fair and equitable remuneration plan.
[ CITATION Oyi15 \l 1033 ]Salaries and bonuses also include employee incentive forms[ CITATION Abd17 \l 1033 ]. From the study of International Letters of
Social and Humanistic Sciences we found that most organizations use a reward system to increase performance and job satisfaction. [ CITATION Ibr15 \l 1033
] From valahian Journal of Economic Studies found that Staff mobilization in the organization will bring additional performance to the manager who hopes to
achieve the organization’s goals.[ CITATION Ofe16 \l 1033 ]

12
Final Year Thesis

2.2 .Questionnaire was Adapted from Literature Review

The questionnaire is adapted from the literature review. The researches previously have shown that the monetary rewards have a significant role in driving
the employee performance and employee motivation as well. Monetary rewards play an important factor in getting commitment from the employee for the
organizations. Researches have shown that the extrinsic rewards like financial incentives, bonuses and pay have a significant effect on the employee
performance and organization.

So, keeping in view these facts we have designed our questionnaire that based on the independent variables like Monetary rewards (Financial Incentives,
bonuses and Pay) .

13
Final Year Thesis

CHAPTER 3

Research Methodology
For the Research Purpose we utilize the quantitative approach to examine and analyze data in order to get statistical results and based upon that we accept
or reject the null hypothesis. Primary data (data type) that we collected from the employees working in Pakistan Civil Aviation Authority on Allama Iqbal
International Airport Lahore (AIIAP). Close Ended Survey Questionnaire on the topic impact of monetary rewards on employee performance and organization
efficiency was designed and filled by the respondents The Questionnaire contained questions on monetary rewards impact on employee performance to see
what whether they have the impact on employee performance and organizational efficiency. Respondents were ensured that their responses will be used for
constructive purposes only and for benefits. The respondents are also ensured that their data will be kept confidential as well their data would be used to
investigate the impacts of financial rewards on employee performance and organization efficiency. The target of total collecting responses was 150. We
reached our target in 7-10 days. We get total responses figure of 176. We stop accepting our responses at that moment. After analyzing our questionnaire we
come to know some people didn’t fill our full questionnaire. Some questions were not answered. Although 150 responses full answers were there for analysis.
We applied different tests for statistical analysis on these research. We remain patient throughout this data collection period and after a week we reached the
target. Likert Scale Questions were used (1-5 scale).Strongly Agree=1 Agree=2 Neutral=3 Disagree=4 strongly Disagree=5.The total employees of Pakistan
Civil Aviation Authority were 2000 at AllAP such as 200 officers ,1400 staff and 400 members at retainership ..So basically this was the population under
study for us..For which we done simple random sampling in which there is equal chance of selection of each and every employee at AIIAP.

Variables of Research

Independent Variables Dependent Variables Scale

Monetary Rewards Employee Performance, Likert
Organization Efficiency
Inducement Pay
Financial Incentives
Bonuses Organization Results, Likert
Organization Profits,
Organization Productivity
Extra Pay
Profit Sharing
Benefits

Monetary rewards: These are the rewards which given to employees for their financial benefits.

Financial Incentives: Organization offers money to employees to encourage their actions and behaviors.

14
Final Year Thesis

Bonuses: Bonus is the extra money added in the salary of employee for his good performance

Extra Pay: Money which employees receive other then their actual salary.

Profit Sharing: It is an incentive plan which gives to employee the certain percentage of the company's profit. Employee receives amount based on profit
earned by organization annually.

Benefits: Benefits are extra advantages given to employee such as health allowances, Vacations etc based on his performance.

Methodology of Data Collection

Organization Pakistan Civil Aviation Authority
Population 2000
Sample Size 150
Confidence Level 95%
Margin of Error 3%

Simple Random Sampling Technique was used to collect the data from the respondents of Civil Aviation organization. More ever Close ended Questionnaire
will be designed which means the questions will be close ended taking less time of respondents to collect the data. The questionnaire link was send to the
civil aviation HR Department that are currently working in Lahore Airport. The employees then filled our survey and give responses.

Demographic Analysis
Demographic data is represented in charts below as Chart 1 represented the gender of respondents. There is an unequal proportion of the gender from our
respondents. Females represented 44% while Males represented 56%.

15
Final Year Thesis

Male Female

Chart 1: Percentage of Respondents gender

Chart 2 representing the educational status of employees responded the survey and it shows 5.3% belongs to Matric, 19.3 belongs to intermediate, 46%
belongs to Graduate , 23.3% belongs to post graduate and 5.3% belongs to other

16
Final Year Thesis

Educational Status Frequency

Matric Intermediate Graduate Post Graduate Other

17
Final Year Thesis

Chart 3 shows the frequency of the respondents in each group. As shown in chart out 200 respondents , 10.7% belongs to 21 and below age range, 62%
belonged to 21-30 age range, 18% belonged to 31-40 age range, 4% belonged to 41-50 age range, and 5.3% belonged to 50 or above age range
70

60

50

Age Frequency
40

30

20

10

0
Below 21 21-30 31-40 41-50 50 or above
Age Group

Chart 3: Respondents age frequency

18
Final Year Thesis

CHAPTER 4

Results and Data Analysis

Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Gender 150 1 2 1.44 .498
Age 150 1 5 2.31 .913
Educational status 150 1 5 3.04 .926
Inducement Pay 150 1 4 1.52 .683
Cash Awards 150 1 4 1.52 .683
Merit Pay 150 1 4 1.52 .683
Extra Pay 150 1 4 1.52 .683
Profit Sharing 150 1 5 1.63 .879
Bonuses 150 1 3 1.38 .587
Performance 150 1 4 1.65 .804
Team Work and 150 1 5 2.21 1.127
Performance
Employee Performance 150 1 2 1.16 .368
Organization efficiency 150 1 5 2.36 .992
Organization Results 150 1 3 1.53 .552
Organization Profits 150 1 3 1.45 .597
Organization efficiency. 150 1 4 1.61 .750
Organization Goals 150 1 4 1.55 .691
Organization Productivity 150 1 5 2.36 1.045

19
Final Year Thesis

Organization ,Monetary 150 1 4 1.04 .281

Rewards
Work Output 150 1 4 1.65 .804
Work efficiency 150 1 5 2.21 1.127
Financial Incentives 150 1 5 1.63 .879
Monetary Reward 150 1 5 2.25 .996
Satisfaction
Valid N (list wise) 150

Regression Analysis between Organization Efficiency and Monetary Rewards

Model Variables Variables Method

Entered Removed
Financial . Enter
Incentives ,
1
Extra Pay ,
Bonuses
a. Dependent Variable: Organization Efficiency

Model R R Square Adjusted R

Square
1 .581a .338 .324

20
Final Year Thesis

Coefficients
Model Unstandardized Coefficients Standardized t Sig.
Coefficients
B Std. Error Beta
(Constant) 6.969 .659 10.582 .000
Extra Pay .915 .321 .201 2.850 .005
1
Bonuses .839 .409 .158 2.050 .042
Financial Incentives 1.465 .265 .414 5.531 .000
a. Dependent Variable: Organization Efficiency

Regression Analysis between Employee Performance AND Monetary Rewards

Variables Entered/Removed
Model Variables Variables Method
Model Entered
R Removed
R Square Adjusted R
Financial . Square Enter
1 Incentives
.579 a ,
.335 .321
1
Extra Pay ,
Bonuses
a. Dependent Variable: Employee Performance
Coefficients
Model Unstandardized Coefficients Standardized t Sig.
Coefficients
B Std. Error Beta
1 (Constant) 3.515 .697 5.044 .000

21
Final Year Thesis

Extra Pay 1.821 .340 .378 5.359 .000

Bonuses .437 .433 .078 1.010 .314
Financial Incentives 1.225 .280 .328 4.372 .000
a. Dependent Variable: Employee Performance

ANOVA
Sum of df Mean Square F Sig.
Squares
Between Groups 474.238 12 39.520 4.768 .000
Employee Performance Within Groups 1135.602 137 8.289
Total 1609.840 149
Between Groups 531.981 12 44.332 6.663 .000
Organization Efficiency Within Groups 911.519 137 6.653
Total 1443.500 149

Reliability of Monetary Rewards Variable

Reliability Statistics
Cronbach's N of Items
Alpha
.859 7

22
Final Year Thesis

Reliability of Employee Performance

Reliability Statistics
Cronbach's N of Items
Alpha
.791 5

Reliability of Organization efficiency

Reliability Statistics
Cronbach's N of Items
Alpha
.702 7

Overall Reliability

Reliability Statistics
Cronbach's N of Items
Alpha
.854 23

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .663

23
Final Year Thesis

Approx. Chi-Square 1029.301

Bartlett's Test of
df 190
Sphericity
Sig. .000

Component Matrix
Component
1 2 3 4 5 6 7
Inducement Pay .153 -.058 .459 .423 .195 .096 -.543
Cash Awards .017 .225 .411 .587 -.021 .408 -.070
Merit Pay .633 .275 .303 -.086 .181 -.192 .085
Extra Pay .568 .359 .372 -.178 .204 .093 .269
Profit Sharing .659 .137 -.255 -.141 -.076 -.167 -.286
Bonuses .617 .297 -.169 -.077 -.069 .038 -.162
Performance .564 .272 .325 -.257 .057 .188 .023
Team Work and .500 -.260 .021 -.316 -.354 .181 -.156
Performance
Employee Performance .100 .309 .447 -.573 .128 -.030 -.081
Organization Efficiency .451 -.682 .272 -.062 .015 -.129 -.004
Organization Results .563 -.034 -.085 .388 -.060 -.249 -.200
Organization Profits .646 .040 -.315 .145 .140 .172 .160
Organization Efficiency. .667 .004 -.400 .086 .139 -.114 .104
Organization Goals .632 .306 -.394 .244 .178 .068 .015
Organization Productivity .604 -.627 .031 -.067 -.086 .132 .026
Organization ,Monetary .031 -.031 .268 .348 .256 -.494 .450
Rewards

24
Final Year Thesis

Monetary Reward .440 -.705 .222 .045 -.005 .049 .181

Satisfaction
Extraction Method: Principal Component Analysis.
a. 7 components extracted.
.

Research Results Findings & Discussion

We conducted following tests Descriptive Statistics, Anova, Regression Analysis, KMO and Bartlett Test of Sphericity and Reliability Tests in our
research for approving or disapproving our null hypothesis “Monetary Rewards do not have a significant relationship with employee performance and
organization efficiency’’. From the results we get we can reject our null hypothesis statement because our Regression model shows a moderate positive
linear relationship of our independent variable (monetary Rewards) with both the dependent variables such as employee performance and organization
efficiency. The results indicated if we change the independent variable the dependent variable also changes in the same direction. The value of R tells us the
strength of our relationship. Our Value of R was 0.58 which indicates a moderate positive relationship as value was 0.5<R<0.7. The value of R square tells us
the amount of variation explained by our independent variable in the dependent variable. Our R square value was 0.33 in which means that 33% variation
explained by the independent variable in the dependent variable. The Correlation coefficient table shows that all the predictors such as financial incentives,
bonuses and extra pay have a positive relationship with the dependent variables Employee Performance and Organization Efficiency. More ever the variables
were significant also have value less than 0.5 as well. In Descriptive Statistics we found out about average mean values of the responses given to us and
standard deviation among those values in our data sets. From the Descriptive Statistics Table we concluded that most respondents were graduate and most
respondent’s lies in the age value of between 21-30 and most respondents were male. Male ratio were 56 % and female ratio was 44% in our data. In Anova
which is Analysis of Variance basically tells us about the differences in variance among different groups of data sets. The F value indicates the difference in
variance among two different data sets such as of independent and dependent variable data sets. In the Table we concluded that our both F values are
greater than then the F critical values and our significance level value was below 0.05 which means our information accuracy or data was good enough to
reject our null hypothesis as well. More ever From the Reliability Tests of all given 150 respondents of our reliability of all the variables were above 0.7 which
means our study responses were highly reliable and our questionnaire as well. In factor Analysis we first check the Kaiser Meyer Olkin test which is measure
of statistic variance among our variables in our sample. Our KMO value shows 0.66 which is an acceptable value for factor analysis. From the Component
Matrix we extracted 7 different Components based upon our variables. The Factor Analysis is a data reduction technique which reduces large number of
observed variables in a few unobserved latent variables also known as factors as well. The intercorrelated variables shows correlation with the unobserved
latent variable factor. The Different variables in our data set shows different correlation among the latent factors.

25
Final Year Thesis

CHAPTER No. 5

Conclusion:
This study investigated the impact of financial rewards on employee performance and Organizational performance. Research has shown that financial
rewards had a significant effect on the well-being of an organization. The results show that financial rewards have had a positive Impact on employee
performance. This means that the organization performance was higher when employees received satisfactory financial rewards such as salaries, bonuses,
training and Conferences, training. Management of financial rewards has a negative impact on the continued Commitment of employees. While organizations
may use financial rewards to attract employees, financial rewards may sometimes not work in retaining employees due to the level of perceived staff they
may have in them.

Recommendation:
The study recommended that organizations must focus on giving good financial benefits to the Employees working for them in order to highly efficient in
results and productivity. Bonuses, Extra Pay and other financial benefits impact the employee performance a lot. Financial rewards Such as bonuses,
performance-based rewards, should be given to attract, retain and encourage Employees of organization. When management gives good rewards to their
employees then their Turnover rate of employees is low. Organization should use performance management effectively.

Survey Questionnaire

1. Age
a) Below 21
b) 21-30
c) 31-40
d) 41-50
e) 50 or above

2. Gender
a) Male
b) Female

3. Educational status
a) Matric

26
Final Year Thesis

b) Intermediate
c) Graduate
d) Post Graduate
e) Other

4. Inducement pay (Financial Rewards) have an impact on employees performance.

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

5. Cash Awards have an impact on organization effeciency.

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

6. Merit pay improves quality and produce good results

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

7. Extra pay motivates employees to produce extra ordinary results

a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

27
Final Year Thesis

8. Profit sharing to employees give great long-term results

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

9. Bonuses improve my work

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

10. Monetary rewards have an impact on my work output

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

11. My Work Efficiency has improved due to Monetary rewards given to me

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

12. Merit pay has improved my work efficiency

a) Strongly Agree
b) Agree
c) Neutral

28
Final Year Thesis

d) Disagree
e) Strongly Disagree

13. Financial rewards builds teamwork and performance of employees

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

14. Rewards related to money builds my performance

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

15. Organizations efficiency can be high if they give rewards

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

16. Organizations efficiency can achieved greater results if they give monetary rewards
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

29
Final Year Thesis

17. Organization’s efficiency can have good profits if they give monetary rewards
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

18. Organization’s efficiency is dependent on monetary rewards

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

19. Organizations can achieve goals if they give rewards

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

20. Rewards boosts organizations productivity

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

21. Do you agree that organizations should give monetary rewards?

a) Yes
b) No

30
Final Year Thesis

22. I am satisfied with my organizations overall monetary programs

a) Yes
b) No

. References
1Said Abdi Mohamud, Abdiaziz Ahmed Ibrahim. (2017). THE EFFECT OF MOTIVATION ON EMPLOYEE. International Journal of Development Research, 8.

Akafo, V. (2015). Impact of reward and recognition on job satisfaction and motivation . European journal of business and management , 112-124.

Aktar, S. (2012). The Impact of Rewards on Employee Performance in. IOSR Journal of Business and Management (IOSR-JBM), 7.

Belushi, F. Y. (2017). IMPACT OF MONETARY INCENTIVES ON EMPLOYEE'S MOTIVATION: SHINAS COLLEGE OF TECHNOLOGY, OMAN-A CASE
STUDY. International Journal of Management Innovation & Entrepreneurial Research.

Cheema, D. F.-E.-A. (2013). IMPACT OF NON-MONETARY REWARDS ON EMPLOYEES’ MOTIVATION. IBT Journal of Business Studies, 7.

Edirisooriyaa, W. A. (2014). Impact of Rewards on Employee Performance. 8.

Harunavamwe, M. (2013). The Impact of Monetary and Non-Monetary Rewards on. African Journal of Business Management, 7.

Ibrar. (2015). The Impact of Reward on Employee Performance. International Letters of Social and Humanistic Sciences, 95-103.

Idowu, A. (2017). Effectiveness of Performance Appraisal System and its Effect on Employee Motivation. NILE JOURNAL OF BUSINESS AND
ECONOMICS.

James, O. E. (2015). Effect of reward system among health care workers performance . Journal of hospital asministration , 45-53.

31
Final Year Thesis

Kalhoro, M. (2017). Investigating the Influence of Extrinsic and Intrinsic Motivation on Work Performance. 9.

Korir, I. (2016). The Effect of Reward Management on Employees . Journal of Human Resource Management.

M., M. A. (2016). THE IMPACT OF MONETARY REWARDS ON THE MOTIVATION OF EMPLOYEES. Roczniki Ekonomiczne Kujawsko-Pomorskiej Szkoły
Wyższej w Bydgoszczy, 9.

NABI, M. N. (2017, March 12). Arabian Journal of Business and ar A Management Review. Retrieved from
file:///C:/Users/ownr/Downloads/Arabian_Journal_of_Business_and_Manageme%20(1).pdf

Nabi, M. N. (2017). Impact of Motivation on Employee Performances. Arabian Journal of Business and ar A, 8.

Ndungu, D. N. (2017). TheEffects of Rewards and Recognition on Employee Performance in Public Educational Institutions. Double Blind Peer Reviewed
International Research Journal, 27.

Pang, K. (2018). Organizational motivation, employee job satisfaction and organizational performance. 17.

PDF, E. (n.d.). Ebook PDF - Search and Free download. Retrieved from Ebookpdf.com:
file:///C:/Users/ownr/Downloads/THE_EFFECT_OF_MOTIVATION_ON_EMPLOYEE_PER%20(2).pdf

Polythechnic, A. G. (2017). The impact of remuneration on employees performance . Arabian journal of business and management review, 34-43.

ROBESCU, O. (2016). The Effects of Motivation on Employees Performance in . Valahian Journal of Economic Studies , 49-56.

Sethunga, S. (2018). Impact of Performance Rewards on Employee Turnover .

Waqas, H. M. (2017). Impact of Rewards (Intrinsic and extrinsic) on Employee Performance. International Journal of Management Excellence.

32