IMPACT OF REWARD SYSTEM ON EMPLOYEE PERFORMANCE: STUDY OF PRIVATE BANKS EMPLOYEES
Received: 31.08.2021; Revised: 26.09.2021, Accepted: 08.11.2021, Published Online: 03.12.2021
Dr. Imran Khan
Assistant Professor, Department of Management Sciences, Qurtuba University of Science & IT, Peshawar, E-mail: Imk_mgt@yahoo.com
Dr. Muhammad Imran
Assistant Professor, Department of Management Sciences, Qurtuba University of Science & IT
Dikhan, Email. muhammadimran@qurtuba.edu.pk
Muhammad Taous
Lecturer, Department of Management Sciences, Qurtuba University of Science & IT ,DIKhan.
Email: taousbaloch786@gmail.com
Abstract
In the current competitive environment, banks strive to enhance its profitability and performance to gain competitive edge. Employees’ are the crucial assets towards organizational high performance. Employee high performance is correlated with the reward system in the organization. Therefore, this study aims to investigate the effect of reward system on employee performance in private banks. For the purpose 6 banks were selected using purpose sampling method. Total 640 employees were employed in selected banks, using Cochran, 1977 formula 234 responded were selected as sample. Using survey strategy close ended questionnaire were distributed among the sample. Reliability and validity of questionnaire were confirmed through factor analysis. Through Regression analysis the effect of one variable on another was checked.. The results revealed that there is positive and significant effect of Reward System on employee performance and extrinsic and intrinsic rewards have positive and significant effect on employee performance. The management of the banks should introduce more compensation to best performer in the banks. Management should increase frequency of intrinsic reward to its employee for better performance and satisfaction. Future study can be conducted on other organizations, also in other region of the country. Further, study can be conducted to compare reward system of various organizations.
Key words: Incentives, Commission, Bonuses, commitment, motivator, hygiene factor