INDIVIDUAL VARIABLE PAY FOR PERFORMANCE, INCENTIVE EFFECTS AND EMPLOYEE MOTIVATION AT TEXTILE INDUSTRY

Abstract

Purpose: This aim of this study is to understand how intrinsic motivations and extrinsic motivations of employees are influenced with the help of individual variable pay for performance and incentive effects in context to the employees of textile sector of Karachi, Pakistan. Methodology: The study has used quantitative-explanatory research design and used five point Likert scale questionnaire as instrument while 408 responses were collected using purposive sampling technique. The study has employed PLS-SEM for data analysis using SmartPLS version 3.2.8. Findings: IVPFP has positive but insignificant effect on extrinsic motivation and intrinsic motivation; whereas IVPFP has positively significant relationship with incentive effects. Moreover, incentive effects have positively significant effect on extrinsic motivation and intrinsic motivation. Implications: Rejoice the result with the employees give them the standing ovation on doing such hard work and producing the remarkable results this small gesture of kindness make them feel like a part of the success and they will effort to do more hard work in future as well. Limitations: Sample size ofthis research is comparatively small that might not represent the perception of majority. The study has objective data on the amount of IVPFP received and a measure of incentive effects that captured the extent to which the pay plan affected behaviors.