Research proposal

Impact of non-financial rewards on employee motivation in commercial banks of Larkana

Submitted to: Dr. Zahida Abro

Submitted by: Gori lohana

01. Introduction
1.1 Background
Money can be an important factor when it comes to the motivation of employees but there are
several other rewards which are considered as important factor while motivating the employees
at workplace regarding their performance or work. Non-financial rewards are perceptible and
physical rewards which are not included in the employee’s pay and these incentives are used to
disconnect employees from direct cash compensation. Perceptible non-financial rewards refer to
the physical recognition like certificates, clothing, gifts, citation etc.[ CITATION Agb19 \l 1033 ]

According to[CITATION hir16 \l 1033 ] non-financial rewards have a huge impact on employee’s
motivation and increasing job performance. Motivation is highly influenced by non-financial
rewards. Those managers who majorly use non-financial rewards have the ability to positively
motivate the employees in the direction of completing organizational goals and mission.
[CITATION mar19 \l 1033 ],researched that there is positive significant relationship between non-
financial rewards and motivation.

According to [ CITATION Way17 \l 1033 ] highly trained, skilled and trustworthy workers are
extremely important to maintain, since they are considered a company advantage. Study has
found that more motivated workers are effective and efficient

This research focuses around the impact of non-financial rewards such as promotion,
recognition, training and development etc., on the motivation of workers. This paper reflects on
the various rewards that can influence workers' efficiency. The sample workers are employed in
commercial banks of Larkana and the sample is chosen on the basis of simple random sampling
where every employee from the population has an equal chance of being selected.
1.2 The Problem Statement
In a country like Pakistan where there are continuous fluctuations in inflation, most of the
organizations think that employees can only be motivated through money because it will
complete their needs. In fact, most companies provide money or financial benefits only for
rewarding workers for their job in the organization by recognizing that people only need money
to continue, be inspired and work in their company. This assumption could cause the
professional workers to fail and would impact organization's efficiency. In addition, the research
began with the term Motivation, which seemed easy to call and collect just 10 letters, but it is a
crucial factor to employee's progress. Organizations think that there is no such impact of non
financial rewards on employees and they are not as much necessary for the motivation of
employees. This gap was identified and the research was therefore carried out to explore the
impact of non-financial rewards on the employee motivation in the commercial banks of the
larkana city.

1.3 Research Questions

 What is the impact of non-financial rewards on employee motivation in commercial banks of
Larkana?
 What is the level of motivation of employees in banks?

1.4 Research Objectives

 To know the impact of non-financial rewards (recognition, promotion, training) on employee
motivation
 To know the relationship between non-financial rewards and employee motivation

1.5 Limitation
The following are the limitations of the study:
 Time constraint (14 week)
 Limited population
 Covid -19 conditions
1.6 Scope
 This research has been conducted from the banking sector of larkana city only.

02. Research methodology

The research is quantitative research and data will be collected through survey. The research
paper will use descriptive research approach as the goal of this research paper is to identify the
impact between non-financial rewards on motivation in commercial banks of larkana.
2.1 Population
The target population of the study consists of professional employees of commercial banks of
larkana, which includes employees from all the branches of banks present in larkana with the
total population of 500 professional employees.

2.2 Sample
This study will use probability sampling in which simple random technique will be used to select
the banks and employees from banks of larkana city for the sample.

The sample size is identified through krejice and Morgan (1970) table for the research. Total
population for the study is 500 and the sample size is 217.

2.3 Data sources and types

The data source used for the research is primary in order to determine the impact of non-financial
rewards on employee motivation and meet the objectives of research. The data type of the
research is quantitative.

2.4 Data processing and analysis technique

Quantitative data processing methods will be used to analyze the gathered data. Numerical data
processing will be carried out using the software SPSS (Social Science Statistical Packages). The
descriptive statistics and inferential statistics (correlation and regression) will be used to analyze
the data .In order to determine the linear relation between dependent and independent variables,
the Pearson correlation coefficient will be used.

03. Hypothesis

H0: Promotion has no impact on motivation

H1: Promotion has impact on motivation

H0: Recognition has no impact on motivation

H2: Recognition has impact on motivation

H0: Training has no impact on motivation

H3: Training has impact on motivation

References

Agbenyegah. (2019). Effect of Financial and Non- Financial Rewards on Employee. international journal
of innovative reserach and development , 1-5.

Amare, H. t. (2016). NON-MONETARY REWARDS AND EMPLOYEES MOTIVATION: THE CASE OF WORLD
LEARNING INC., ETHIOPIA. 26.

Dewayalage, M. (2019). TH4 TMPACT OF I{ON-FINANCTAL REWARDS ON MOTIVATION II{ EAM MALIBAN
TEXTILE (PVT) LTD IN. 50.

Wayaki. (2017). EFFECT OF MOTIVATION ON EMPLOYEE PERFORMANCE: A CASE OF PAM.