HUMAN RESOURCE

RESEARCH METHODS

Sultan Muhammad Abdullah Khan

BBA 8-(M)
01-111182-106
 Research Topic

Impact of Rewards on employee’s Performance

through mediating effect of Motivation in the
banking sector
Literature Review:
Rewards:(Independent Variable)
Rewards is one of the important elements to motivate employees for contributing their
best effort to generate innovation ideas that lead to better business functionality and
further improvise company performance. According to Dewhurst et al.(2010), there are
other means to reward employees that do not just focus on financial compensation.
Some of these include the praised that employees are able to acquire from their
managers, the opportunity to take on important projects or tasks, and even leadership
attention. Much research on leader power have found that supervisor reward power
would be positively associated with employee task performance, productivity,
satisfaction, turnover, and organizational citizenship behaviors( Simon,1976; Martin &
Hunt, 1980; Jahangir,2006).
Literature Review:
Employee’s Performance :(Dependent Variable)
Employee’s performance can be defined as the outcome of all cumulative actions that an
employee performs using his skills, abilities, and knowledge for a particular situation or
task during a given time frame (Prasetya  &  Kato,  2011).
It is one of the steps towards the achievement of an organizations goals, which is the
reason why HRM deems the improvement in employee’s skills vitally important, since it
is directly correlated to performance (Suhartini, 1995). 
Workplace environment is also an important factor that has a significant impact on an
employee’s performance. Fulfilling their intrinsic,
extrinsic, and social needs, forming the basis for their stay in an organization, as well as
being the key determinant of quality in work and performance levels (Haynes, 2008).
A positive work environment therefore has a multitude of benefits to an organization.  
Literature Review:
Motivation:(Mediator)
In defining motivation, DeCenzo and Robbins (1996) stated that it is the individual’s
desire or willingness to perform a given task and the ability to meet some needs under
certain conditions. Regardless of the size, today, many organizations or enterprises in
different sectors are widely engaged in practicing employees’ motivation. This
indicates that such enterprises are highly aware of the role of motivating their
employees in achieving the desired organizational goals. Motivation fosters
employees’ engagement in their work by making them feel that what they do is more
meaningful and interesting, and it increases their productivity and enhances their
subsequent job performance (Kamery, 2004; Ekerman, 2006).
Relationship of rewards and employees performance with the
mediating role of motivation:
Balanced rewards system and employee reorganization programs are being considered
as a basic tool for the growth of business industries and organizational development.
According to Deeprose (1994) appreciation and acknowledgement, along with
monetary rewards can enhance the productivity and performance of employees to a
great extent and that will automatically have a direct positive impact on the overall
organizational performance. The motivation studies are related to those employees
who act in a preset setting (Mullins, 2006) and how motivated employees perform
effectively (Watson, 2005). When the individuals or the employees are both
intrinsically and extrinsically rewarded, the greatest amount of the motivation is there
as observed by Lawler, (2003). Shafiq and Naseem, (2011) suggested that the total
rewards and the motivation have a significant relationship.
Theory:
Theoretical Framework:

Employee’s
Rewards Motivation Performance
(Independent
(Mediating variable) (Dependent
variable)
Variable)
Research Design:
• Research design of this study is Quantitative ( It is based on numbers
and statistics) In quantitative Research design you normally go for
surveys or questionnaires.
Population and Sample:

The population of this study includes the employees working in the

banks(Islamic Branches)of Islamabad. The total number of Islamic banks
are approximately around 100 in Islamabad and employees working
there are around 900-1000.
Sampling Method:

In this study, I have chosen random sampling technique to randomly

take samples from 250 employees of Islamic banking branches by using
questionnaires method.
Measurement Instruments:

• Likert scale questionnaires are distributed among the employees

• Employees have to rate on a scale of 1-5 where 1 represents strongly
agree, 2 represents agree, 3 represents uncertain, 4 represents
disagree and 5 represents strongly disagree.