EFFECT OF COMPENSATION PRACTICES ON EMPLOYEE’S MOTIVATION IN COMMERCIAL BANKS OF KARACHI

Abstract

Purpose The purpose of the study is to investigate the Impact of compensation practices on the employee motivation specifically in the Commercial banks ofKarachi. Methodology & Design The sample size ofthe study is 394 employees of commercial banks in Karachi. All levels of management of bank employees were the target population for this research. Reliability & Regression analysis results shows significance ofsome compensation types. Findings The findings of the research state a positive impact of some types of compensation on motivation of employees of commercial banks of Karachi. Limitations Firstly, the sample belongs to one city and one specific industry, which reduces the generalizability of the research findings. We, therefore, recommend the future researchers to investigate our model in other countries and cultures. Our study is not without limitations. First, our sample comprised employees of commercial banks in a single city that could be extended to other occupational settings within Pakistan as well as in other countries to test the generalizability ofour findings. Recommendations The Study suggest such recommendations like, adding more variables to it, increase the number ofrespondents and number cities which helps to differentiate between one regions to other. Most recommended cities are Islamabad, Lahore, and Rawalpindi.