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MGT648 - Research Method THE Roles OF Promotion AND


Reward Towards Employee
Research Methodology (Universiti Teknologi MARA)

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FACULTY OF BUSINESS AND MANAGEMENT

RESEARCH METHODS
(MGT 648)

THE ROLES OF PROMOTION AND REWARD TOWARDS EMPLOYEE


PERFORMANCE AT MAMEE MALAYSIA

PREPARED BY

NO. NAME MATRIC NO

1 Nur Amirah Sufiah Binti Azali 2020573499


2 Hazirah binti Mohd 2018479728
3 Lina Ameraah Binti Md Tahir 2018494936
4 Nur Shahera binti Shahrin 2018613238
5 Nur Syafiqah Binti Rosli 2020577081

PREPARED FOR

Dr. Noraznira Binti Abd Razak

SUBMISSION DATE

24th July 2022

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DECLARATION OF ORIGINAL WORK

BACHELOR OF BUSINESS ADMINISTRATION


WITH HONORS (HUMAN RESOURCES)
FACULTY OF BUSINESS MANAGEMENT
UNIVERSITI TEKNOLOGI MARA
<DECLARATION OF ORIGINAL WORK=

I, Hazirah binti Mohd (I/C Number: 960731145974) representing my group,

Hereby, declare that:


• This work has not previously been accepted in substance for any degree, locally or overseas,
and is not being concurrently submitted for this degree or any other degrees.
• This project-paper is the result of my independent work and investigation, except where
otherwise stated.
• All verbalism extracts have been distinguished by quotation marks and sources of my
information have been specifically acknowledged.

Signature:

Date: 15 JULY 2022

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TABLE OF CONTENT

DECLARATION OF ORIGINAL WORK 2


TABLE OF CONTENT 3-4
LIST OF FIGURES 5
LIST OF TABLES 6
ACKNOWLEDGMENT 7
ABSTRACT 8
CHAPTER 1: INTRODUCTION TO RESEARCH
1.0 Introduction 9
1.1 Background of study 9 - 10
1.2 Background of company 11 - 12
1.3 Problem Statement 12 - 14
1.4 Research Question 14
1.5 Research Objective 14
1.6 Scope of Study 14
1.7 Significant of Study 15 - 16
1.8 Limitation of Study 16
1.9 Definition of Terms 16 - 17
CHAPTER 2: LITERATURE REVIEW
2.0 Introduction 18
2.1 Employee Performances 19 - 20
2.2 Rewards 20 - 21
2.3 Promotions 21 - 22
2.4 Research Framework 22 - 23
2.5 Hypothesis 23
CHAPTER 3: RESEARCH METHODOLOGY
3.0 Introduction 24
3.1 Research Design 24
3.2 Population 24
3.3 Sampling Technique 24
3.4 Sample Size 25
3.5 Data Collection 25

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3.6 Questionnaires 25 - 26
3.7 Development of Measurable Items 27 - 29
CHAPTER 4: FINDINGS
4.0 Introduction 30
4.1 Reliability Test 30 - 31
4.2 Descriptive Analysis 32
4.2.1 Demographic Analysis of Respondents 32 - 34
4.3 Multiple Regression Analysis 34 - 35
4.4.1 Regression Analysis 35 - 36
4.4.2 Coefficients Regression Analysis 36
4.4.3 Hypothesis Testing 36 - 37
4.4.3.1 Hypothesis 1 (H1) 37
4.4.3.2 Hypothesis 2 (H2) 37
4.4.4 Summary of Hypothesis 38
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
5.0 Introduction 39
5.1 Conclusion 39
5.1.1 Research Objective 1 40
5.1.2 Research Objective 2 41
5.1.3 Research Objective 3 42
5.2 Recommendations 43
REFERENCES 44 - 46
APPENDICES 47 - 49

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LIST OF FIGURES

FIGURES LIST PAGES

Figure 1.1 Total Number of MAMEE Employee in Ayer Keroh from 14


2012 - 2022

Figure 2.1 Research Framework 23

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LIST OF TABLES

TABLES LIST PAGES

Table 3.1 Number of Manifest for This Study 26

Table 3.2 Likert Scale 26

Table 3.3 Employee Performance Items 27 - 28

Table 3.4 Promotion Items 28

Table 3.5 Reward Items 29

Table 4.1 Cronbach’s Alpha Score 31

Table 4.2 Result of Cronbach’s Alpha Using SPSS20.0 31


Software

Table 4.3 Summary of Demographic Analysis of 32 - 33


Respondents

Table 4.4 Regression Analysis Value 35

Table 4.5 Relationship between Rewards and Promotions 35


Toward Employee Performance

Table 4.6 Results of Coefficients 36

Table 4.7 Regression Analysis for Promotions Toward 37


Employee Performance

Table 4.8 Regression Analysis for Rewards Toward 37


Employee Performance

Table 4.9 Summary of Hypothesis 38

Table 5.0 Findings for Promotions and Employee 40


Performance

Table 5.1 Findings for Promotions and Employee 41


Performance

Table 5.2 Findings for Factor that Influences Employee 42


the Most

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ACKNOWLEDGMENT

Assalamualaikum W.B.T

Alhamdullilah, first I would like to thank Allah S.W.T. as we are finally able to finish our
assessment given by our lecturer, Dr. Noraznira Binti Abd Razak. Although it takes time to
prepare and dedicate our time to complete this assessment, we manage to settle down and
adeptly time and effort to finally finish it.

In preparation of our assignment, we had to take the help and guidance of some respected
persons, who deserve our deepest gratitude. The completion of this assignment gave me much
pleasure. We would like to show my gratitude to Dr. Noraznira Binti Abd Razak, our Course
Instructor, for giving us such a good guideline for assignment throughout numerous
consultations. We would also like to expand our gratitude to all those who have directly and
indirectly guided me in writing this assignment.

Finally, we would like to thank our beloved parents and friends that always stick by our side and
shower us with their support in finishing and producing a good assignment. Their outstanding
ideas and suggestions on our paper which likely gave us the inspiration to improve the quality of
the assignment.

Sincerely,

Nur Amirah Sufiah Binti Azali


Hazirah binti Mohd
Lina Ameraah Binti Md Tahir
Nur Shahera binti Shahrin
Nur Syafiqah Binti Rosli

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ABSTRACT

The main objective of this study is to discuss and conclude on what is the main point that affects
the employee’s performance at MAMEE Malaysia in Ayer Keroh , Melaka. The data and
information are collected from MAMEE in Ayer Keroh , Melaka. We also collect data from
different levels of management in Mamee company to make sure that the data is accurate and
not biased.

From the data that have been collected, we make sure that the data information was examined
by utilizing correlation. After finalizing the result, we can conclude those employer strategies
using methods such as including project bonuses, profit sharing, warrants, stock options,
additional paid vacation and scheduled holidays, and performance bonuses are most likely
affected and influence the employee’s performance in Mamee.

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CHAPTER 1

INTRODUCTION TO RESEARCH

1.0 INTRODUCTION

At the beginning of this chapter, it will describe the background and the purpose of the
study to provide a clear direction for the research. At the same time, the problem statement is
well explained. Other than that, research questions and research objectives are also enclosed
to explain the reason why the study is conducted. At final, the obstruction and the meaning of
terms will be cleared up toward the conclusion of this segment.

1.1 BACKGROUND OF STUDY

Employees Performance is an act or attitude of an employee at the workplace. It can


also be defined as how employees behave in the workplace and how well they perform their
duties and job that has been assigned to them as every company has their own performance
targets for each employee. An employee can measure their own work performance depending
on their work effectiveness, quality and efficiency at the task level. Individual performance does
not only affect your team, but also organizational performance. When employee performance is
lacking and poor, you might not only be able to satisfy customers, but also cause a negative
impact on your profits, company reputation and sales (Donohoe, 2019).

The main purpose of this study is to investigate and summarize what is the cause and
main factors that contribute towards employee performance of MAMEE Melaka. In this 21st
century, employees struggle and work hard to improve their work performance. The competition
between organizations becomes more and more difficult and because of that employee give
more effort to improve their work performance to excellence to impress their employer. A study
done by researchers stated that only 13% of employees worldwide are engaged at work. The
research consists of 142-country studies on the State of the Global Workplace. While 63%
stated that they are "not engaged and only about 24% are "actively disengaged= (Crabtree,
2013).

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Communication is often known as the key to success for many things. Lack of
communication or poor communication can cause good relationships to break down and
interfere with the road to success (Kinsey, 2019). Poor communication between employees can
create a tense environment that can cause others to lose motivation and eventually cause
others to feel uncomfortable and uninspired to collaborate. This lack of motivation then affects
how employees relate to clients and potential customers, negatively affecting the bottom line
(Khan, 2021) .

Training is very important for an inadequately trained employee. Untrained employees


are likely to experience poor job performance that eventually will cause stress (Martinelli, 2018).
When the employees are unhappy, unsatisfied, and undervalued, they will feel unmotivated,
which eventually leads to poor performance that can cause severe impact on business
performance, team morale, and financial turnover (Johnson et al., 2020). As an employer, you
have a legal obligation to ensure you provide your employees with adequate health and safety
training.

A good working environment can strive in creating a workplace environment that


attracts, retains, and motivates employees. While a good workplace environment has a direct
impact on communication, collaboration, creativity and innovation, a very poorly designed
workstation can cause a lot of issues such as headaches, fatigue, absenteeism, and poor
overall performance. Not only that, but excessive noise can also cause distractions that likely
can affect mental focus on productivity. 40% of employees’ state that their jobs are very or
extremely stressful. Not only that, 73% of workers experience psychological symptoms due to
stress, while 77% report stress-related physical symptoms (Picincu, 2019)

Not only that, but employees also who are facing these issues are often facing a health
problem. They cannot perform their job greatly and feel unmotivated, which causes low
productivity. The poor performance of one individual can cause damage in work performance
that likely will affect the entire business, resulting in a widespread loss of productivity and low in
customer satisfaction. In fact, unhappy and stressed employees can cause about 60% to 80%
of accidents on the job (Picincu, 2019). Also, according to Eastern Kentucky University,
American companies lose $150 billion annually because of employees who are not functioning
optimally.

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1.2 BACKGROUND OF COMPANY

Mamee-Double Decker (M) Sdn Bhd (doing business as MAMEE) is a Malaysian based
company with interests in the manufacturing, marketing and distribution of snack foods,
beverages, and other products, that exports to around 100 countries internationally under the
slogan "A World of Good Taste" and is very popular in areas like Singapore, Indonesia, and
Australia. The company's main office is in Ayer Keroh Industrial Estate in Malaysia. It also has
an office in Subang and is registered in City Plaza in Johor Bahru. It distributes the company's
products such as the Noodles and Mister Potato. Its executive chairman is Datuk Pang Chin
Hin. The company was incorporated on August 3, 1991. It was listed on the main board of the
Kuala Lumpur Stock Exchange on March 18, 1992. On January 9, 2012, the company was
delisted from the stock exchange.

One of Malaysia's most prominent food companies is the company of Mamee Double
Decker. Some of its products include Monster, Sllrrp!Noodles, and Mister Potato Chips. The
company was incorporated in 1971 and its production commenced in the following year. It is
currently listed on the main board of the stock exchange in Malaysia. Since its establishment in
1971, the company has been able to establish itself as a household name in the food and
beverage industry. Its products are widely known for their good taste and are sold to various
countries around the globe. Due to the high demand for its products, the company has also
expanded its production facilities.

In addition to its home base in Malaysia, the company has also established
manufacturing facilities in Indonesia and Myanmar. These facilities have been able to receive
various certifications such as the Halal and ISO9000. Dedication to the food and beverage
industry has led to the company being recognized by various organizations such as Frost &
Sullivan. It was also able to receive the Putra Brand Award for Best Home-Grown Food
Company in 2014.Aside from being recognized by various organizations, the company has also
been able to receive positive feedback from consumers about its products. For instance, the
company's instant noodle has been regarded as one of the best in the industry by the ramen
rater.

In 2008, the company's total revenue increased by 10% to RM 397.1 million. Its profit
after tax also rose by 69% to RM 23.6 million. This was mainly due to the increase in its input

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cost. It was also able to receive an industrial excellence award from the MITI in 2008. The
recognition from the MITI is a remarkable achievement for the company and its continuous
efforts in becoming a major player in the food and beverage industry.

1.3 PROBLEM STATEMENT

Poor performance or underperforming in MAMEE can be caused by various factors such


as lack of training, poor communication, and lack of motivation. It’s very important that
employees are performing at their best, otherwise it will affect the company’s performance and
the morale of the workers. Addressing the issue early can help prevent it from happening later.
If an employee is not meeting the expectations of their role or performing poorly, this can be a
red flag that something is not right with the team.

Due to the lack of training for employees, various conflicts occurred in the MAMEE
organization. This is a concern that every company should address to improve the training of its
workers. Aside from being able to perform their duties well, employees also want to contribute to
the company's development and want to be promoted to higher positions. Employee training
and development is one of the most significant motivators used to help both individuals and
organizations in achieving their short-term and long-term goals and objectives (Rodriguez,
2017). However, due to the lack of training, they are not able to work with the company. This will
make them not understand what their jobs are like and how they can contribute to the
company's development. Due to the lack of training, employees will not be able to work in a
group. This will make them feel depressed and unhappy.

Aside from being able to perform their duties well, employees also want to be promoted
to higher positions. However, due to communication problems, they are not able to work with
the company. Communication is fundamental and vital to all administrative functions and
communication is a means of transmitting information and making oneself understood by
another or others (Guo & Sanchez, 2005). As Malaysia is a multiracial country and MAMEE’s
employees are all from different races, it can sometimes breakdown in communication. In this
issue, researchers believe that MAMEE should be able to communicate with its employees
without the interference of a third party. Being able to communicate effectively with its
employees is very important to the company as it allows them to improve their performance
(Kokemuller, 2019). In addition, due to the rapid pace of technological change, people are more

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likely to work longer and become more productive. However, it does not mean that they will stop
communicating with each other in the workplace. Email and other electronic applications allow
employees to keep in touch with their co-workers. To be able to communicate effectively with its
employees, conflicts within the organization can also occur due to the different departments
within the company. For instance, in MAMEE’s marketing department, the goal is to expand the
product line while the manufacturing department is focused on increasing the production cost.
Due to the different goals of different departments, conflicts and disagreements within the
organization can occur. This can affect the company's reputation and cause it to lose its way.

Performance is determined by three factors: motivation, ability, and the work


environment. Are employees being praised or rewarded for their hard work? Some employees
may start to slack off if they think that their hard work is not being acknowledged. This may lead
to lack of motivation towards employees in Mamee that can cause poor performance. Having
their work recognized is very important to their satisfaction, and it can improve their
performance. It’s very important that employees are being praised and rewarded for their hard
work. When the employees are unhappy, unsatisfied, and undervalued, they will feel
unmotivated, which eventually leads to poor performance that can cause severe impact on
business performance, team morale, and financial turnover (Johnson et al., 2020). However, it
can be hard to keep track of this as it can get hectic. To prevent this from happening, it’s
important that the company publicizes good work. Rewarding and incentives can be very
effective ways to motivate and retain employees. They can be done in several ways, such as
showing appreciation for the hard work that your team members are doing. Having a strong
sense of peer support can help prevent employees from feeling that they can get away with
doing something that they shouldn’t have been doing.

Conflicts within the organization can also be caused by various factors such as the lack
of training, communication problems, lack of motivation and the lack of jurisdiction. This issue
will most likely cause employees to leave MAMEE in Ayer Keroh, Melaka. The number of
employees started to decrease in 2012 to 2022.

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Number of Employee
328 333 333 339 334 328 308 291
283 278 281

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Year

Figure 1.1 Total Number of MAMEE Employee in Ayer Keroh from 2012 – 2022

1.4 RESEARCH QUESTIONS

This study wants to identify the relationship between independent variables towards employee
performance of MAMEE workers which is located at Ayer Keroh, Malacca.

i. Is there any positive relationship between promotions and employee’s performance?


ii. Is there any positive relationship between rewards and employee’s performance?
iii. Which factors have the most influence towards employee’s performance?

1.5 RESEARCH OBJECTIVE

i. To determine whether there is any positive relationship between promotions and


employee’s performance.
ii. To investigate whether there is any positive relationship between rewards and
employee’s performance.
iii. To determine the factor that influences employee’s the most.

1.6 SCOPE OF STUDY

The study's scope shows that respondents are employees of MAMEE in Ayer Keroh, Melaka.
The total population in MAMEE Ayer Keroh is 291 employees. Hence, 291 questionnaires will
be distributed through Google Form by sending a link to them. Employees were chosen based
on the sample strategy used in this study as well as the exact location and time.

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1.7 SIGNIFICANT OF STUDY

The study attempts to identify HRM variables that should be prioritized to boost
employee motivation and work satisfaction, eventually increasing employee commitment.
Although the relationship between HRM and organizational performance has been repeatedly
established and proven, it is also well understood that the dynamic that drives that level of
performance cannot be totally controlled, i.e., the elements that inspire and satisfy personnel
fluctuate as personal and professional circumstances change. The study focuses on motivating
and gratifying aspects, as well as incremental improvement factors, that can have a long-term
impact on the organization's most essential resource in order to establish and retain
uniqueness, as well as a prolonged competitive advantage. As a result, you're helping the
organization succeed. (Varma, 2018)

Every company strives to outperform its competitors by offering excellent service to its
clients to be competitive in today's market. MAMEE must bring out the best in its personnel to
compete with the rest of the globe. Motivation is a critical aspect in motivating employees to
achieve their goals. Any organization will not be able to attain these goals unless its people are
motivated. The tasks they do, their degree of pleasure, prospects for future advancement, the
organizational climate, and their coworkers all contribute to their motivation (Kachalla, 2009).
The goal is that this study will benefit every department inside the MAMEE corporation. The
study focuses more explicitly on the performance of MAMEE personnel through motivation.

1.7.1 Researcher

For future researchers, the findings of this study will serve as a guide and a solid reference. This
research might potentially serve as a foundation for the development of a new learning theory.

1.7.2 Employee

Employee tensions may grow as a result of inadequate communication, potentially leading to


conflict. Employees may make incorrect assumptions as a result of a lack of communication,
such as allowing other employees to finish their job when this assignment was not previously
addressed among the team. Good communication eliminates the need for a workplace in the
first place.

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1.7.3 Employer

The consequences of low employee motivation in the workplace will increase staff turnover,
fewer levels of engagement, poor communication, and decreased productivity are just a few of
the issues that may spread and make your workplace poisonous. Employers will benefit from
this study because they will understand how crucial motivation is to employees' ability to
complete tasks. As a result of this research, they will be able to better inform their staff about
the importance of motivation in employee performance.

1.8 LIMITATION OF STUDY

Time Restriction
The researcher has a limited amount of time to perform this research since the researcher must
attend a 16-week practical at the firm. It also takes time to distribute and collect the
questionnaire. The study project must be finished within five months, owing to the limited time
available to undertake this research.

Data Constraint
A large amount of data is required to finish this research. However, the data in this study is quite
restricted. It is because the data cannot be accessed owing to the company's privacy and
confidentiality.

Journal Deficiency
The researcher worked hard to locate an appropriate journal for their study. It's because certain
journals need payment to access the content. Some journals may not provide complete
material, such as questionnaire appendices.

1.9 DEFINITION OF TERMS

Employees Performance
Measurements of performance include the quality, quantity, and efficiency of work. When
employees are under-performing, customers may be left unsatisfied. A focus on employee
performance helps employees reach their full potential and improves overall business
performance which can have a positive impact on morale.

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Promotions
Promotion is a type of vertical movement within an organization that involves an employee
transferring from one job to another. It can also be referred to as an employee moving up in the
organization. In terms of career terms, it refers to an employee's promotion or position within a
hierarchical structure.

Rewards
Apart from their salary, rewards are also sometimes given to employees to motivate them and
improve their performance. These types of compensation are usually linked to the employee's
performance. Rewards can be in the form of monetary or non-monetary.

Lack of Training
Lack of training at the workplace is one of the primary reasons why employees are unable to
perform at their best. This problem may have an impact on their performance and their ability to
encourage their employees.

Poor Communication
When there is a mismatch between what is said and what is heard, poor communication is
common. In other words, one individual misunderstands what the others are saying.
Understanding is no longer a two-way street.

Lack of Motivation
Lack of motivation is a common issue that can lead to employee turnover and other issues that
can make a workplace toxic. Aside from poor communication, other factors such as low
engagement and poor productivity can also affect a company's environment.

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CHAPTER 2

LITERATURE REVIEW

2.0 INTRODUCTION

The literature reviews are a clear and logical presentation of the relevant research. It is a
step-by-step process that includes the identification of published and unpublished work from
secondary data sources on the topic of interest, the evaluation of work in relation to the problem
and the documentation of the work. All of these literature reviews are obtained and selected
from articles, journals, internet, academic books, and other related sources that are proven to
be right.

In this chapter, a review of the literature that influences the employees’ effort to improve
their work performance is looked into in depth. The literature review mainly focuses on how
promotions, rewards and employee benefits influence the employees to work hard and
improvise themselves. Also, the researcher will also be defining the description of the
dependent variable that is related to employee performances.

Since it was founded, MAMEE business practices have been built on integrity, honesty,
fair dealing, and full compliance with all applicable laws. The company offers favorable
remuneration, attractive compensation packages, and rewards the employee for what they
deserve. The HR team of MAMEE is considered as a benchmark and the organization that is
responsible for maintaining their employee’s performance and to make that productivity is at the
best. To meet the particular set of goals, the company helps the employee in improving their
skills, attitudes, and behavior as well as decreasing the labor work rate. MAMEE makes sure to
get feedback, recognition, and support from their employees by engaging within an
organization. Additionally, the company promotes workplace flexibility by providing customized
work arrangements to enhance employees’ sense of well-being and job satisfaction, enabling
them to better balance personal needs and business requirements.

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2.1 EMPLOYEES PERFORMANCE

Employee performance refers to the visible behaviors and activities that demonstrate
how a task is completed, as well as the expected outcomes for good work performance
(McNamara, 2005). The following characteristics should be examined in order to attain or
promote improved performance from personnel (Cardy & Selvarajan, 2004). Performance is the
accomplishment of a series of assigned tasks that are time-bound, with a result indicator that
measures the task's level of accomplishment, which can only be assessed if a performance
standard has been established (Shumen, 2009). Performances are efforts that guarantee that
objectives are routinely accomplished in a timely and effective way (Cardy & Selvarajan, 2004;
McNamara 2005).

One of the factors that affect employees' job performance is training. Employee training
and development programs are essential to the success of businesses worldwide. Training that
provides not only an opportunity for employees to improve their skills, also enhances
employee’s productivity and improves company culture as well as reducing employees in a
company. In fact, an article report published by Maryville University in 2019 in The International
Journal of Business and Management Research indicates that 90% of employees surveyed
agreed or strongly agreed that training and development programs improved their job
performance (Importance of Training and Development for Employees, 2019)

Not only that, benefits and rewards also play a vital role in improving employee
performance to achieve organizational goals. Benefits and reward systems can increase an
employee’s performance as it can provide as employees' motivating factor to fine-tune
employee behavior towards efficiency and effectiveness (Rishi et al., 2021). Generally,
individuals are more motivated to work when they can get something in return, other than job
satisfaction. They are more committed to jobs they perceive, and the needs can be achieved
through the reward they will receive for the work done, depending greatly on the nature of the
reward given. Based on findings, reward systems can increase employee performance by
enhancing employee skills, knowledge, and abilities in order to achieve organizational
objectives (Ajila & Abiola, 2017). In contrast, if an organization fails to reward employees, it will
directly affect the performance of the employees (Allen & Kilmann, 2001)

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However, those factors can also be a downfall of an employee's performance. Even


Though training can increase an employee's skills and job performance, it can cost a lot of time
and money. The expenses on providing training which included travel, training facilities, in-
house training development, and equipment can be daunting and pricey, especially when an
outside trainer is involved (Arthur, 2018) Advanced training compared to In-house certainly
costs more and it can affect a company's budget. Also, the time employees can use for office-
related operations is taken by another training and development program which hinders product
(Advantages & Disadvantages of Training and Development, n.d.)

Employer initiative to use rewards and benefits to increase employee's motivation and
productivity can actually backfire. Even Though rewards system is mainly created to increase
employees' motivation, it can also cause favoritism and bias between employees and
employers. Some employees present rewards toward their selected and favorite employees, not
because of outstanding job performance (Contributor, 2021) Not only that, but the rewards
system can also lead to bitter resentment and sabotaging behaviors that undermine team
success in pursuit of individual goals (Lepsinger, 2018).

2.2 REWARDS

Every company or firms has provided an appraisal performance system for their
employees as to measure performance in the organization. After result, they will recognize a
group of employees that deserve rewards as to show their recognition towards employees and
to build strong relationship between employers and employees (Prakash, 2013) Same goes to
MAMEE Company in giving rewards to their employees. Rewarding staff for outstanding
performance is critical to encouraging and keeping talent. Employees who are rewarded for their
work are more likely to become loyal and productive. This can improve the organization's overall
productivity and production. Furthermore, in this concept of rewards, there are consists of two
type of rewards which is intrinsic reward and extinct rewards.

Firstly, intrinsic rewards are incentives offered to employees of a company. An intrinsic


incentive is a reward that employees receive for effectively completing their jobs or projects.
These are largely psychological incentives that are based on the individual's own efforts and
talents. Intrinsic incentives produce a favorable emotional response and serve to drive
employees to continue to develop as well as make long-term behavioral changes when

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necessary (Ryan & Deci, 2020) Take for example, when some employees complete their task
well, they frequently feel a sense of accomplishment and pleasure. This intrinsic reward then
pushes the employee to execute the work effectively in the future in order to continue
experiencing those happy emotions. In addition, according to every community or organization,
trust between live persons is essential for adding value to any relationship. This type of trust is
required to execute tasks successfully. Empowerment also occurs when managers distribute
work to staff. This increases the importance of an employee's decisions and actions. As a result,
this incentive may assist organizations since two heads are better than one (N. Khan et al.,
2017)

While extrinsic reward is a concrete and visible reward provided to an individual or


employee for doing something. They are frequently monetary in nature, such as a raise in pay,
bonus, prize, or public recognition (N. Khan et al., 2017). Besides, it might be a certificate of
achievement, a trophy or medal for winning the race, a badge, or points for doing something
well, or even monetary compensation for completing your work well. Because extrinsic
incentives are tangible, they are frequently provided to the person performing the action, so as a
result, they are usually not generated within the individual. Therefore, efficient extrinsic reward
system should be in place to keep top performers in the organization, and the reward should be
linked to their production.

2.3 PROMOTIONS

A promotion is a move forward in terms of work, rank, or position that an individual takes
while working for a company. Promotions are also a significant part of a worker's career and life,
as they have an impact on other aspects of the job (Kosteas, 2011) Besides, every company or
workplace has a job hierarchy structure that determines how a person progresses and is
promoted within the company. In addition, a promotion is confirmation that an employer believes
it is time to assign new tasks to an employee's existing set of obligations, rather than merely a
reward for continuous strong performance.

On top of that, we all want to be recognized for our efforts and to believe that all we've
done, the time and money we've spent on ourselves, has been worthwhile. Employee
promotions are a terrific method to get recognized since they actually indicate you're rising to a
higher position with higher-level job responsibilities, greater perks, and, most importantly, a

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larger compensation (Razak et al., 2018) Therefore, every employee will benefit from promotion
since it signifies trust and appreciation of an employee's capacity and talent to keep a high
position.

This is the foundation of the finest and most suitable promotion since it promotes the
most experienced individuals with strong skills, allowing for the elimination of promotional
deficiencies based only on experience or talents. According to (Sabir, 2017), employees who
are more committed to their job goals and objectives have a greater probability of being
promoted. For example, in this situation whenever the management chooses to promote
individuals for their efforts, they are essentially recognizing talent and identifying future leaders.
This identification of potential leaders allows them to groom personnel for the future and
encourages them to further develop their skills and abilities. Developing future leaders benefits
the organization and improves overall productivity.

However, we must know that it is critical to recognize that not all promotions entail a pay
increase, but they are still a stepping stone that pushes people closer to their ultimate
professional ambitions. Therefore, when an employee's efforts are recognized, he or she is
more likely to work harder and try to improve his or her performance, which benefits the
company. A promotion also increases employees' ambition and passion for achieving their
personal goals as well as the company's objectives.

2.4 RESEARCH FRAMEWORK

The variables in the research framework were adopted from the previous researcher, Alfandi &
Alkahsawneh (2014). This study employs a framework that depicts employee performance as a
dependent variable and two factors that influence performance as independent variables, such
as promotions and rewards. It can be shown from the following figure below:

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Independent Variables Dependent Variables

Promotions

Employee
Performance

Rewards

Figure 1.2 Research Framework

2.5 HYPOTHESIS

A hypothesis is a tested assertion that expresses a rationally conjectured link between two or
more variables. As a result, one hypothesis may be formed based on the independent and
dependent variables in the investigation. To see if this holds true for elements that impact an
employee's performance.

H1 - There is a positive relationship between promotions and employee’s performance.


H2 - There is a positive relationship between rewards and employee’s performance.

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CHAPTER 3

RESEARCH METHODOLOGY

3.0 INTRODUCTION

This chapter will provide an overview of the various steps involved in the process of
testing a hypothesis. Some of these include the design of the study, the sampling technique, the
data collection method, and the development of the questionnaire. Through the chapter's
description, readers will be able to gain a deeper understanding of the various aspects of the
research.

3.1 RESEARCH DESIGN

This study employed a descriptive study, in which data or information is gathered without
affecting the environment in order to answer the who, what, when, where, and how questions.
Following that, data is collected quantitatively by survey methodologies. The study is carried out
by distributing questionnaires to employees at MAMEE in Ayer Keroh, Malacca.

3.2 POPULATION

Population is the target of study in research to find the result that is applicable. The
population used for this research was the MAMEE employee, which was located at Ayer Keroh,
Malacca. It consists of 291 employees.

3.3 SAMPLING TECHNIQUE

According to Sekaran (2013), sampling is the process of selecting a sufficient number of


elements from the population which makes it easier to generalize such properties or
characteristics to the population element. This research used census sampling. It is because the
questionnaire was distributing to all the population that consist of the total number of employees
at Mamee in Ayer Keroh, Melaka which is 291 employees.

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3.4 SAMPLE SIZE

According to Roscoe (1975), the rules of thumb for determining sample size where
sample size larger than 30 and less than 500 are appropriate for most research. In this
research, the facility sampling method is used and will be collecting data from 291 respondents
based on the total number of employees in MAMEE in Ayer Keroh, Malacca.

3.5 DATA COLLECTION

Primary Data

The questionnaire is a set of questions that are usually asked to a specific person,
usually within a certain set of alternatives. This study was conducted to collect data and
information from the employees of MAMEE. The questionnaire was divided into two parts, one
of which is basic information, and the other is a factor contributing towards employee
performance.

Secondary Sources

This study used the secondary data method, which means that the information that was
gathered from other sources before the start of the research was used in the analysis. This data
was gathered from various sources such as journal articles, internet, and past research.

3.6 QUESTIONNAIRE

The research questionnaire consists of two sections, section A and B. Section A is the
demographic profile which this section is based on the background of the respondent that
consists of age, gender, race, length of service and education level. This section used multiple
choice of questions that needed to be ticked. Section B is questions about factors affecting
employee performance. This section consists of dependent variables and independent variables
that are separated into A, B, C.

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Section Measurement No. of Items

A Demographic 5

Employee Performance
B (A) 11
Factors

B (B) Reward Factors 6

B (C) Promotion Factors 5

Table 3.1 Number of Manifest for This Study

Likert scale

Likert scale is used on this questionnaire in part B. It is used to determine how strongly to agree
or disagree with the respondent towards the question. The Likert scale is as below:

1 2 3 4 5

Strongly Neutral/
Disagree Agree Strongly Agree
Disagree Undecided

Table 3.2 Likert Scale

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3.7 DEVELOPMENT OF MEASURABLE ITEMS

EMPLOYEE PERFORMANCE FACTORS

Source in which item


Item Original measure item Measure item for this research
based

I care about the results of I care about the results of


evaluating my performance evaluating my performance
B1
because they are a chance to because they are a chance to
get bonuses get incentives

I notice that the one whose I notice that the one whose
performance is weak will be performance is weak will be
B2
punished depending on the punished depending on the
performance evaluation results performance evaluation results

The positive results of my The positive results of my


B3 performance evaluation motivate performance evaluation
me to work harder motivate me to work harder

Alfandi & I'm willing to work harder if


I'm willing to work harder if they
B4 Alkahsawneh (2014) they provide me a safety
provide me a safety program
program
Cronbach's Alpha
0.78
I finish the required work even if I finish the required work even
B5
it requires extra efforts if it requires extra efforts

I do my job according to the I do my job according to the


B6
required quality standards required quality standards

The employees have the ability The employees have the ability
B7
to deal with troubles at work to deal with troubles at work

The performance is evaluated The performance is evaluated


B8 depending on some scientific depending on some scientific
and clear variables and clear variables

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I have no disagreements I have no disagreements with


B9
with my boss my boss

I follow the instructions


I follow the instructions and
B10 and
regulations at work
regulations at work

I pay attention to the quality of


I pay attention to the quality of
the
B11 the services given to the
services given to the
beneficiaries
beneficiaries

Table 3.3 Employee Performance Item

PROMOTION FACTORS

Source in which item


Item Original measure item Measure item for this research
based

I think that promotion I think that promotion


C1 mechanisms are appropriate. mechanisms are appropriate
I notice that job promotions I notice that job promotions
affected my performance affected my performance
C2
positively positively
The majority of the
The majority of the exceptional
exceptional
C3 promotions were based on the
promotions were based on
efficiency performance
the efficiency performance
There is a relative match
There is a relative match Alfandi & between my qualification and
between my qualification and Alkahsawneh (2014)
C4 experience,
experience, and my job
and my job
Cronbach's Alpha I think that the majority of
I think that the majority of 0.78
C5 managers and supervisors
managers and supervisors were
were promoted fairly

Most of the job promotions are


Most of the job promotions are
given depending on
given depending on seriousness
C6 seriousness
and perseverance in work
and perseverance in work

Table 3.4 Promotion Items


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REWARD FACTORS

Source in which item Measure item for


Item Original measure item
based this research

I think that the reward


I think that the reward regulations
D1 regulations in the incentive
in the incentive system are fair
system are fair

I notice that giving rewards I notice that giving rewards


D2 affect the functionality affect the functionality
positively positively

Alfandi &
I think that the majority of I think that the majority of
Alkahsawneh (2014)
exceptional rewards were exceptional rewards were
D3
based on efficiency in based on efficiency in
Cronbach's Alpha
performance performance
0.78

The majority of rewards at The majority of rewards at


D4 work is given according to work are given according to
seriousness and hard work seriousness and hard work

The manager usually


The manager usually
recommends giving a
D5 recommends giving a reward
rewards to the effective
to the effective employee
employee

Table 3.5 Reward Items

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CHAPTER 4

FINDINGS

4.0 INTRODUCTION

In this chapter, the finding from the data collections through quantitative methods is
discussed. All the data that is used is collected and processed from the problem that stated and
arises in Chapter 1. Researchers will use the collected data to analyze and interpret in order to
obtain the hypothesis. The method/apps that is used to analyze the data during the research is
called SPSS 20.0 software, also known as <Statistical Process for Social Science=.

In this research, SPSS software is mainly used for testing the data reliability, descriptive
analysis, and multiple regression analysis. The selected sample is based on Gender, Age,
Education Level, Race and Length of Service. During the research held, we used Google form
to create the questionnaires that were shared by spreading links of invitation through WhatsApp,
Facebook, and class forum. About three weeks of distributed links, at least 66 questionnaires
were questioned.

Reliability is the degree to which a measurement instrument gives the same results each
time that it is used, assuming that the underlying thing being measured does not change
(Crossman, 2019). In this chapter we will focus on five types of analysis, which is Descriptive
Analysis, Demographic Analysis, Multiple Regression Analysis, Multiple Regression Analysis
and Coefficient Regression Analysis.

4.1 RELIABILITY TEST

In this research, Cronbach’s Alpha method is used in order to know the reliability of data
between each of the variables that is stated in the research. Cronbach’s alpha is a measure of
internal consistency, that is, how closely related a set of items are as a group. It is considered to
be a measure of scale reliability. A <high= value for alpha does not imply that the measure is
unidimensional.

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Cronbach’s Alpha Score Level of Reliability

0.0 - 0.20 Less Reliable

> 0.20 - 0.40 Rather Reliable

> 0.40 - 0.60 Quite Reliable

> 0.60 - 0.80 Reliable

> 0.80 - 1.00 Very Reliable

Table 4.1 Cronbach’s Alpha Score


Source: (Ahdika, 2017)

According to research from Universitas Islam Indonesia by Ahdika (2017), there are
several types of reliable coefficient but mostly Cronbach Alpha been use to test the hypothesis.
Based on the table given, Level of Reliability if it is at 0.80 above is stated as very reliable,
which makes it the higher score and if between 0.60 - 0.80 is recorded as reliable. 0.40 to 0.60
is quite reliable, which is the average score. Once the score point to 0.20 to 0.40 is rather
reliable and if the score reach to 0.20 below, it is considered less reliable, which is the lowest
score.

Table 4.2 Result of Cronbach’s Alpha using SPSS 20.0 software

The result obtained from Cronbach’s Alpha particular test can be used as a reference to
indicate the level of reliability. The value nearest to the value 1 is indicating higher in reliability
meanwhile when the value closer to 0 shows the poor reliability. According to table 4.2,
Cronbach’s Alpha Value result for the variables is 0.753 which means the value can be
considered to be reliable. (refer table 4.1 for references).

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4.2 DESCRIPTIVE ANALYSIS

Frequency analysis is used to anticipate how frequently specific values of a variable


phenomenon will occur and to assess the predictability of the prediction. It is a tool for
calculating the data in this research. Besides, this data has been collected and will be reviewed
to identify findings. Gender, age, race, length of services, and education level are examples of
demographic information found in the research descriptive analysis. The frequency analysis
displays the frequency and percentage for each dependent and independent variable as well as
the respondent's profile.

4.2.1 Demographic Analysis of Respondents

ELEMENTS FREQUENCY PERCENTAGE (%)

Female 38 62.2

Gender Male 23 37.7

Total 61 100.0

Malay 56 91.8

Chinese 4 6.5
Race
Indian 1 1.6

Total 61 100.0

16 - 25 19 31.1

26 – 35 15 24.6

36 – 45 14 23.0
Age
46 – 55 11 18.0

Above 56 2 3.3

Total 61 100.0

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0 – 5 years 27 44.3

6 – 10 years 10 16.4

11 -15 years 7 11.5


Length of
16 – 20 years 6 9.8
services
21 – 25 years 6 9.8

26 years and more 5 8.2

Total 61 100.0

SPM Certificate 12 19.7

Diploma 17 27.9

Education Level Degree 25 41.0

Master Higher Level 7 11.5

Total 61 100.0

Table 4.3 Summary of Demographic Analysis of Respondents

Table 4.3 highlight the frequency of respondents according to gender, race, age, length
of services and education level. From overall of the sample, 38 respondents were female while
23 of them were male. Females represented 62.2% of total respondents while 37.7%
represented male respondents. The results show that the number of women is slightly more
than men. Our target respondents are open for management department however most of them
are women.

Besides that, race of respondents is another descriptive analysis where the respondents
could be in a variety of race. The descriptive analysis shows a majority of respondents are
Malay. It can be assumed that Malay are preferring to work in this management department
rather than others. There are 56 respondents with 91.8% represent the Malay respondents. The
remaining respondents were Chinese and Indian which represent 6.5% and 1.6% respectively.

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Furthermore, age of respondents is another descriptive analysis in which respondents


may be of varying ages. According to the descriptive analysis, the majority of respondents are
between the ages of 16 and 25. Because the location where most teens work are public, it might
be presumed that persons of that age are in the majority. There are 31.1% represent the 16 until
25 years old respondents. Followed by the age of 26 until 35 years old with 24.6% respondents,
36 until 45 years old with 23% respondents, 46 until 55 years old with 18% respondent and the
one, the least respondent in this survey with 3.3% respondents are from age 46 until 55 years
old.

According to table 4.3, 27 out of 61 respondents which about almost half of the total
respondents having their services at least 0 until 5 years. It can be assumed that most of them
are at least working for 5 years at this company as to gain working experience for future
matters. Followed by 10 respondents with 6 until 10 years’ services and 7 respondents that
have 11 until 15 years of services represented 16.4% and 11.5% respectively. While both, 16
until 20 years’ services and 21 until 25 years of services consists 6 respondents that
represented 9.8% in this survey. Lastly, there is 5 respondents that have more than 26 years of
services in this company that represented 8.2%.

Final content in this descriptive analysis is the education level that decides whether the
last education from the respondents are from SPM Certificate, Diploma, Degree or Master. 25 of
the respondents which is the majority of them have university degree as their education
background which represented 41%. The lowest among respondents are those from university's
master higher level that was 7 people which represented only 11.5%. Respondents from SPM
education level is 12 people that represent 19.7%. On top of that, 17 respondents have their
university diploma education background which represented 27.9%

4.3 MULTIPLE REGRESSION ANALYSIS

The findings of this study's analysis are presented in this chapter. Multiple regression
analysis was conducted to evaluate the promotions and rewards of relationship between two
variables and make predictions about the employee performance. Furthermore, it can be used
when there are more than one independent variables that arise in order to estimate the
dependent variables. Other than that, multiple regression analysis can be used if at least one of
the independent variables was quantitative, that is interval scale (Adhika, 2017). It explains that

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this study meets the conditions set which consists of Gender, Age, Education Level, Race and
Length of Service. Plus, this analysis also can be used to test on the last hypothesis in this
research.

4.3.1 Regression Analysis

The R square measure is a statistical measure that shows the correlation between the
predicted and observed values of various dependent variables. It is also used to analyze the
performance of a regression line. The percentage of variance in the value of the dependent
variable is explained by the variation in its independent variable.

Regression Analysis Interpretation

0.67 Substantial

0.33 Moderate

0.19 Weak

Table 4.4: Regression Analysis Value

Source: Chin (1998)

As according to Chin (1998), R² values for endogenous latent variables are assessed
based on: 0.67 (substantial), 0.33 (moderate), 0.19 (weak) as shown in table 4.4 above.

Table 4.5 Relationship between Rewards and Promotions toward Employee Performance

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Based on table 4.5, the value of R-square (R²) is 0.277, which means all the
independent variables which are rewards and promotions contribute 27.7% of the variance in
employee performance. According to Chin (1998), the R-square value can be interpreted as
weak. In addition, R² value (R²=0.277) is acceptable because the path coefficient is greater
than 0.1 as stated by Lohmoller (1989). According to the table 4.6, it shows that the regression
model is suitable since the p-value is 0.000 which is less than 0.01.

4.3.2 Coefficients Regression Analysis

Table 4.6 Result of Coefficients

Beta (β) is used to determine among the independent variables and which variable
contribute the most in the relationship between promotion and rewards. Based on the table 4.7
above, the result shows the strongest forecast intention towards employee performance is
promotion. It is because the promotion (0.014) is significant because less than 0.05 but
reward (0.083) not significant because more than 0.05. Other than that, the Beta value of
promotion which is 0.347 is higher than the Beta value of reward which is 0.242. In can be
conclude that promotion is the most influence factor that contributing to employee performance.

4.3.3 Hypothesis Testing

In hypothesis testing, this study recommended a cutoff p-value at 0.05 and the level must
be below than 0.05. If the standard significant level value for the independent variables is less
than 0.05, therefore the variables are significantly related to the dependent variable and
hypothesis will be supported. If the significant value is over 0.05, the hypothesis will be

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rejected. Based on the regression coefficient analysis as shown in table 4.7, the result for each
hypothesis will be further explained below.

4.3.3.1 Hypothesis 1 (H1)

There is a positive relationship between promotions and employee’s performance.

Independent variable Standard Coefficient (BETA) Significant

Promotions 0.347 0.014

Table 4.7 Regression Analysis for Promotions toward Employee Performance

The results indicated that promotions have a significant effect on employee performance. The
p-value of the study is less than the standard level of significance (p-value=0.014). As a result,
hypothesis 1 is accepted.

4.3.3.2 Hypothesis 2 (H2)

There is a positive relationship between rewards and employee’s performance.

Independent variable Standard Coefficient (BETA) Significant

Rewards 0.242 0.083

Table 4.8 Regression Analysis for Rewards toward Employee Performance

The results indicated that promotions have a significant effect on employee performance. The
p-value of the study is more than the standard level of significance (p-value=0.083). As a
result, hypothesis 2 is rejected.

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4.3.4 Summary of Hypothesis

Hypothesis Findings

H1 There is a positive relationship between promotions and Accepted


employee’s performance.

H2 There is a positive relationship between rewards and Rejected


employee’s performance.

Table 4.9 Summary of Hypothesis

The findings were based on the hypothesis that was tested using the regression analysis.
The results showed that only one independent variable was significantly related to the
employee performance at the company. On the other hand, the other independent variable was
not significantly related to the employee performance at the company. Thus, hypothesis 1 is
accepted while hypothesis 2 is rejected.

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CHAPTER 5

CONCLUSION AND RECOMMENDATIONS

5.0 INTRODUCTION

This chapter will discuss in detail the finding in Chapter 4 and to conclude the research.
This chapter will provide the answer to the research questions and to discuss based on the
research finding. Other than that, in this chapter the researcher will provide recommendations
which contribute on what is the main point that affects the employee’s performance at MAMEE
Malaysia in Ayer Keroh, Melaka.

5.1 CONCLUSIONS

The purpose of this study is to find which of the roles that affected employee
performance at MAMEE Malaysia. Other than that, the researcher would like to investigate the
relationship between the promotion and reward towards employee performance at MAMEE
Malaysia. Two hypotheses were formulated based on the past research. The researcher also
wanted to identify whether the hypotheses are correlated significantly with the behavior
towards employee performance.

The researcher chooses to do the research of the roles of promotion and reward towards
employee performance at MAMEE Malaysia. This study was being conducted at MAMEE
Malaysia in Ayer Keroh, Melaka by distributing the questionnaire to the 291 respondents, which
is the employee of MAMEE Melaka. This research used convenience sampling. It is because of
the information collected from employees at MAMEE which the population used for this
research who are conveniently available to provide it.

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5.1.1 Research Objective 1

To examine the relationship between Promotions and employee’s performance.

RESEARCH QUESTION HYPOTHESIS FINDINGS

Is there any significant


There is a positive relationship
relationship between
between rewards and
Promotions and employee’s
employee’s performance that Supported
performance towards
affects the employee’s
employee’s performance at
performance in Mamee,
MAMEE Malaysia in Ayer
Melaka.
Keroh , Melaka ?

Table 5.0 Finding for Promotions and Employees Performance

The first research objective of this study is to examine whether promotions and
employee’s performance have a significant relationship that affects the employee’s performance
at MAMEE Malaysia in Ayer Keroh, Melaka. Referring to the findings and the result, there is a
significant relationship between promotions and employee’s performance that affects the
employee’s performance in Mamee, Melaka. By the right, from the results of the coefficients, the
value for promotions is 0.014. The result also showed that the Beta-value is 0.347 and t-value
is 2.529 (refers to table 4.4.3.1). The results showed that the independent variable was
significantly related to the employee performance at the company. These employees are more
likely to think they have to work longer and harder to meet expectations and get bonuses or
promotions (Adhika 2017). Therefore, hypothesis 1 is accepted. It is agreed that promotions and
employee’s performance have affected the employee’s performance in Mamee, Melaka.

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5.1.2 Research Objective 2

To examine the relationship between rewards and employee’s performance.

RESEARCH QUESTION HYPOTHESIS FINDINGS

Is there any significant


There is a positive relationship
relationship between rewards
between rewards and
and employee’s performance
employee’s performance that
towards employee’s
affects the employee’s Not Supported
performance at MAMEE
performance in Mamee,
Malaysia in Ayer Keroh ,
Melaka.
Melaka ?

Table 5.1 Finding for Rewards and Employees Performance

The second research objective of this study is to examine whether rewards and
employee’s performance have a significant relationship that affects the employee’s
performance at MAMEE Malaysia in Ayer Keroh, Melaka. Based on the findings and the result,
there is no significant relationship between rewards and employee’s performance that affects
the employee’s performance in Mamee, Melaka. From the results of the coefficients, the value
for promotions is 0.014. The result also showed that the Beta-value is 0.347 and t-value is
2.529 (refers to table 5.11). The results showed that the independent variable was not
significantly related to the employee performance at the company. One of the reasons for this
situation is because the reward system that is used to improve employee performance does
not boost and attract employee motivation. According to Sandra Ladish, a recent study
published in the Human Resource Management Journal determined that employees who
receive performance based on their hard work and good performance are usually the one who
employers pick as best employees, however they also usually experience higher stress levels
and lower levels of job satisfaction in order to get the best outcomes. These employees are
more likely to think they have to work longer and harder to meet expectations and get bonus
payments (Redlich, 2022). Therefore, hypothesis 2 is rejected. It is agreed that rewards and
employee’s performance do not affect the employee’s performance in Mamee, Melaka.

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5.1.3 Research Objective 3

To determine the factor that influences employee’s the most.

RESEARCH QUESTION FINDINDS

Is there any significant factor


that influences employee’s
Promotion
the most?

Table 5.2 Finding the Influence Factor of Employees Performance

Based on finding, promotions have the strongest Beta value of 0.347 among these two
variables. It shows that the promotions will highly influence their employee’s performance.
Promotion opportunities have stronger effect on employee’s performance in this organization.
Therefore, these employees likely have their expectation to work longer and give their services
whenever they believe to get promotion by showing their capability and commitment for a better
position in organization.

The findings also shows that, majority employees had efficiency performance that they
been promoted so they will have a big chances to carrying a greater responsibilities, higher
status, better salary and a better working condition. On top of that, promotion is the best
variables that influence this behavior of employee’s performance and will contributed motivation
to others.

In conclusion, the present study is successful in testing the purposed hypothesis. In this study,
there are only two hypothesis, which is one of it are rejected. Apart from that, the research
questions are answered as well as achieving the objectives of this study. In other words, this
study is complete and findings of the study could be beneficial to both organization and
employees. Lastly, according to coefficient analysis, the most influences factors towards
employee’s performance are the promotions.

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5.2 RECOMMENDATIONS

Based on the study, it showed that the relationship between rewards toward employee
performance at MAMEE Malaysia is not significant. This means that the company should
improvise its reward system in order to improve the employee performance. According to
Maslow, people have varying levels of needs and goals. While satisfaction with one's current
situation may be a good thing, it does not mean that one can stop seeking higher goals. For
instance, while monetary rewards may be a motivating factor for employees at the beginning of
their careers, their needs, desires, and aspirations change over time, ultimately leading to more
complex goals.

The study aims to provide a critical analysis of the various factors that influence
employee motivation, and suggests that the use of rewards should be reviewed. It also
suggested that both the management and the employees should work together to come up with
effective reward programs and schemes. According to Drake (2007), it is important that
managers do not replace the intrinsic rewards with the extrinsic ones in order to maintain their
effectiveness. This is because both the intrinsic and extrinsic rewards play vital roles in an
organization.

Additionally, the study also suggests that managers should create a conducive
environment for their employees to perform at their best. Although it is important to celebrate
major achievements, it is also important to recognize the minor milestones that have led to
these achievements. This can be done through the establishment of a variety of incentives and
policies that are designed to help workers improve their performance. One of the most effective
ways to do this is to give an employee a gift to celebrate their work anniversary or a significant
achievement is to provide a special recognition to the employee who has been with the
organization for five or ten years.

Last but not least, teamwork can help boost productivity and improve the workplace
environment by developing strong collaboration. It can also help employees develop their skills
and improve their performance. Rewarding team members can be time-consuming and require
good project management skills. For instance, you can arrange a team lunch or an outing after
a major achievement is made.

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APPENDICES

SURVEY INSTRUMENT QUESTIONNAIRE

THE ROLES OF PROMOTIONS AND REWARDS TOWARD EMPLOYEE


PERFORMANCE AT MAMEE MALAYSIA

We are students from UiTM Kampus Bandaraya Melaka undertaking the Bachelor Degree of
Business Administration (Hons.) Human Resources Management (BA243). The purpose of this
questionnaire is to obtain information regarding the above research. We would very appreciate
it if you could answer this questionnaire frankly and honestly. Thank you very much for your
cooperation and all the information will be treated strictly and confidential.

SECTION A: DEMOGRAPHIC
[Please tick (√) the relevant box]

1. Age
16-25 ( ) 26-35 ( ) 36-45 ( ) 46-55 ( ) Over 55 ( )

2. Gender
Male ( ) Female ( )

3. Race
Malay ( ) Chinese ( ) Indian ( ) Others ( )

4. Length of Service
0-5 years ( ) 6-10 years ( ) 11-15 years ( )
16-20 years ( ) 21-25 years ( ) 26 years and more ( )

5. Education level
SPM Certificate ( ) Diploma ( ) Degree ( ) Master Higher Level ( )

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SECTION B: FACTORS AFFECTING EMPLOYEES PERFORMANCE


Respond to each statement based on the following rating scale.
Please CIRCLE/HIGHLIGHT only ONE (1) answer:

1- Strongly Disagree 2-Disagree 3-Neutral/Undecided 4-Agree 5-Strongly Agree

A. EMPLOYEE PERFORMANCE FACTORS

1 I care about the results of evaluating my performance


1 2 3 4 5
because they are a chance to get incentives .

2 I notice that the one whose performance is weak will be


punished depending on the performance evaluation results 1 2 3 4 5
.

3 The positive results of my performance evaluation


1 2 3 4 5
motivate me to work harder.

4 I'm willing to work harder if they provide me with a safety


1 2 3 4 5
program.

5 I finish the required work even if it requires extra effort. 1 2 3 4 5

6 I do my job according to the required quality standards 1 2 3 4 5

7 The employees have the ability to deal with troubles at 1 2 3 4 5


work

8 The performance is evaluated depending on some 1 2 3 4 5


scientific and clear variables

9 I have no disagreements with my boss 1 2 3 4 5

10 I follow the instructions and regulations at work 1 2 3 4 5

11 I pay attention to the quality of the services given to the 1 2 3 4 5


beneficiaries

B. PROMOTION FACTORS

12 I think that promotion mechanisms are appropriate. 1 2 3 4 5

13 I notice that job promotions affected my performance 1 2 3 4 5

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positively.

14 The majority of the exceptional promotions were based on


1 2 3 4 5
the efficiency performance

15 There is a relative match between my qualification and


1 2 3 4 5
experience, and my job.

16 There is a relative match between my qualification and


1 2 3 4 5
experience, and my job.

17 Most of the job promotions are given depending on


1 2 3 4 5
seriousness and perseverance in work

C. REWARD FACTORS

18 I think that the reward regulations in the incentive system


1 2 3 4 5
are fair.

19 I notice that giving rewards affect the functionality


1 2 3 4 5
positively.

20 I think that the majority of exceptional rewards were based


1 2 3 4 5
on efficiency in performance.

21 The majority of rewards at work are given according to


1 2 3 4 5
seriousness and hard work .

22 The manager usually recommends giving rewards to the


1 2 3 4 5
effective employees .

THANK YOU FOR YOUR COOPERATION

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