RELATIONSHIP BETWEEN EXTRINSIC REWARDS AND EMPLOYEE PERFORMANCE AT FAYSAL BANK LIMITED

Abstract

Purpose: This research was conducted with the purpose to identify relationship between extrinsic rewards and employee performance. Characteristics of extrinsic rewards used in this research were; working condition, salary and performance bonuses. This research study analysis the effects of extrinsic rewards in performance of employees at different branches of Faysal Bank Limited in Karachi. Primary data for this research was collected by distributing questionnaires among targeted population. Research Methodology: For primary data collection, population of 400 employees working in Faysal Bank Limited were targeted out of which 356 responded to questionnaire. Employee performance identified as dependent variable in this study and extrinsic rewards were independent variables. Non-probabilistic sampling technique was applied, it means that collected samples did not provide an equal chance to all people in population, respondents were selected on the basis on accessibility. Secondary data was collected through various journals, research articles and books. SPSS software was used as tool to analyze the primary collected data. Findings of the research: Hypothesis developed after literature review was tested by using multiple regressing test, because aim of this study was to predict value of one variable based on three variables. Findings included demographic data of participants, their gender, length of service and qualification. Furthermore, through Cronbach’s Alpha test, reliability of variables was administered. Results of this study indicated that there is significant and positive relationship between performance of employees and extrinsic rewards parameters; working condition, salary and performance bonuses. Conclusion: to conclude this research we can say that extrinsic rewards does have certain impact on employees’ performance. However, this statement cannot be generalized because, targeted population of this research is one particular bank of Karachi.