Do Intrinsic and Extrinsic Rewards influence the Job satisfaction and Job performance? Mediating Role of Reward System

Abstract

Now a day’s firms are striving to achieve competitive advantage by using different strategic techniques. As a result of high competitive pressure; firms are making struggle to get competitive edge by utilizing workers’ talent, abilities and proficiency to formulate the accurate exploitation of employees’ works organization offer different benefits, rewards schemes. Satisfied employees becoming more devoted dedicate and attached with their organization as compared to other employees. The main purpose of current study is to determined relationship between Intrinsic and Extrinsic motivation by concentrating the mediating effect of Reward System. Data have been collected by applying the simple random sampling. Questionnaire technique takes on to accumulate data collected from staff in context of their satisfaction and performance. By applying statistical tools CFA and SEM outcome shows that monetary and non-monetary rewards really positively associate with employees’ job satisfaction. Positive correlation lies between intrinsic, extrinsic motivation and employee’s performance and job satisfaction of nursing staff in hospitals. Moreover, results divulged that rewards system significantly and partially mediates the relationship between intrinsic and extrinsic rewards, job performance, and job satisfaction. The research provide deeply appreciative that how institution can encourage employees by delivering valuable rewards and Intrinsic and extrinsic motivation programs.

Intrinsic Rewards and Employee's Performance With the Mediating Mechanism of Employee's Motivation

“…First, the previous study showed that a reward management system can significantly influence a workforce and can be motivated to improve their efforts and performance (Rai et al, 2018), and therefore, different rewards have been employed to measure performance such as monetary reward (Aguinis et al, 2013), remuneration (Calvin, 2017), and enough pay and bonus (Pouliakas, 2010); hence, we indicated intrinsic reward for measuring employee performance. Second, only a few studies discovered the relationship between intrinsic reward and employee performance and used some mediators such as organizational commitment (Taba, 2018) and reward system (Riasat et al, 2016), but no study has employed employee motivation as mediators. Third, very limited research has been performed to examine intrinsic reward-the performance of the employee in the Pakistan context by using mediating mechanisms, but no study has explored that in SMEs.…”

Impact of Rewards on Employee Performance: A Study on Private Banking Sector in Bangladesh

“…The study of Deeprose (1994) argued that providing effective recognition to employees can enhance their motivation and productivity together the result of which is the performance increasing for the company. Fostering learning opportunity through training program as well as seminars, workshop, conference is more meaningful to them for effective achievement (Riasat et al 2016).…”

Impact of Job Satisfaction on Job Performance

“…Spector (1997) argues that job satisfaction illustrates how well employees are happy with their work. If employees have positive feelings towards work, employees will have a higher level of satisfaction with their work (Nisar, Riasat, & Aslam, 2016). In line with Mahardiana and Thahir (2019) based on the findings in the assessment, to improve employee performance, it can support managers to assist the organization by paying attention to employee competencies.…”