IMPACT OF REWARD MANAGEMENT PRACTICES OVER EMPLOYEE MOTIVATION IN BANKING SECTOR OF PAKISTAN

Abstract

Purpose The aim of this study is to explore the impact of various reward management practices which include the extrinsic rewards and intrinsic rewards over the employee motivation and performance of the employees of local and international bank in Pakistan. Methodology/sample This is a quantitative research. A sample of 360 (N=360) is selected based on the random sampling approach. A local MCB and international SCB have been selected for the study to reveal the impacts of various reward management practices over the employee motivation. Data has been collected through research questionnaire. The collected data has been analyzed through inferential (regression and correlation) and descriptive (bar charts) statistics. Findings Extrinsic direct rewards like salary, bonuses, loans scheme are the highest motivational rewards for the employees of banks. Indirect rewards of paid leave and medical facilities are then the effective reward management practice. In intrinsic reward promotional opportunity and appreciation are the highest motivational rewards. Overall extrinsic rewards have more motivational impact over the employee than intrinsic rewards Practical Implication This research will assist tire management of the banks to know about the impacts of extrinsic and intrinsic rewards which are being practiced at tire banks over the employee motivation. By this management can focus on those reward tools which has the highest motivation impact.