Abstract:
Purpose:
The research was undertaken lo determine the impact of compensation practices of employers
and organizations and their impact on the employee motivation. The compensation practices
were bifurcated in to intrinsic (Job Design. Empowerment. Recognition, and career
development) and extrinsic compensation factors (Direct Financial and Indirect Financial
Compensations).
Methodology / Sample:
To achieve the objective of understanding the view point of the employees regarding
compensation and motivation, a survey was carried out to collect information in different
textile mills located in Karachi. The data for the research was gathered by taking a random
sample of size of 150 managerial workers currently providing their services in different
departments of various textile mills.
Findings:
Any organization meets its goals and objectives by setting targets of its employees and aligning
it to that of an organization. Therefore, it is necessary to motivate the employees to come up to
what is expected from them and compensation is the best way to motivate them. The findings
indicate that there is a significant positive link between motivation and compensation. Different
types of compensation (basic pay. bonuses, medical insurance, hospitalization, leaves,
recreation, pensions, gratuity, transportation, transport) have a different effect on employee's
psychology and as a result, motivation.
Practical Implications:
The result of this research is very useful for the textile companies as well as the ministry of
textile as textile sector holds the largest share in exports. This report will help different stake
holders to come up with such policies that playgreater role in motivating the employees and
thus, increasing the production as well as setting new standards.
