- CHAPTER 1: INTRODUCTION – The Impact of Financial and Non- Financial Incentives on Job Satisfaction
- Introduction
Implementing practices that improve job satisfaction is the main function of human resource management. Employees must be motivated through financial and non- financial rewards in order to perform and be satisfied in their jobs. Unavailability of financial and non- financial incentives results in high levels of job dissatisfaction and eventual low productivity and performance levels of employees. The benefits employees foresee for themselves and their families motivate them to give their best. Rewarding is one of the main strategies used by managers to motivate their employees. Rewards can be in terms of monetary or non- monetary. Therefore, the main purpose of this study is to determine the impacts of financial and non- financial rewards on job satisfaction. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.
- Rationale for the Study
Employee motivation is the backbone of the performance and productivity of any organization. The retail sector in Australia is very competitive and hence companies invest on their human resources to increase their competitiveness and competitive advantages. As mentioned by Harcharanjit, Rossilah, Mas Bambang, Maizaitulaidawati, Yu and Sukmindar (2017), for a long period of time companies use financial rewards more than non- financial rewards to motivate their human resources and hence increase their job satisfaction levels.
Questionnaire data collection method will be used to gather data because it gathers data from a large sample size and it is easy to conduct (especially self- administered) as compared to interviews and focus group. The collected data will be analysed through SPSS computer program whereby tools such as Pearson’s correlation, regression, and t-tests will be used to test the relationship between the variables. It is expected that the study results will agree with the null hypothesis that non- financial incentives are more effective in increasing job satisfaction as compared to financial incentives. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.
- ACTION PLAN
The following plan will be used to ensure that the study is conducted within the indicated time.
Area of Work | Week 1 | Week 2 | Week 3 | Week 4 | Week 5 | Week 6 | Week 7 |
Background Reading | |||||||
Establishing the research aims and objectives | |||||||
First meeting with the supervisor | |||||||
Developing Theories | |||||||
Writing Literature Review Chapter | |||||||
Methodology Chapter | |||||||
Data collection | |||||||
Second meeting with the supervisor | |||||||
Is regulating Data Analysis | |||||||
Presentation, interpretation, and discussion | |||||||
Writing Conclusion & Recommendation Chapter | |||||||
Final Submission |
BIBLIOGRAPHY – The Impact of Financial and Non- Financial Incentives on Job Satisfaction
Abdullah, Alkhaliel and Wan, Hooi. 2013. ‘Relationships of non-monetary incentives, job satisfaction and employee performance.’ International Review of Management and Business Research 2(4), 1085-1092
Asiedu, Elvis. 2015. ‘Supportive organizational culture and employee job satisfaction: A critical source of competitive advantage. A case study in a selected banking company in Oxford, a city in the United Kingdom.’ International Journal of Economics and Management Sciences 4(7), 1-8. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.
Bwire, Jackson., Ssekakubo, Johnson., Lwanga, Freddie. and Ndiwalana, George. 2014. ‘Employee motivation, job satisfaction and organizational performance in Uganda’s oil sub-sector.’ Global Advanced Research Journal of Management and Business Studies 3(7), 315-324
Creswell, John. 2007. Quality inquiry and research design: Choosing among five approaches (2nd Ed). New York: Sage
Erbasi, Ali. and Arat, Tugay. 2012. ‘The effect of financial and non- financial incentives on job satisfaction: An examination on food chain premises in Turkey.’ International Business Research 5(10), 136-146
Gabriel, Justin. and Nwaeke, Lawrence. 2015. ‘Non- financial incentives and job satisfaction among hotel workers in Port Harcourt.’ Journal of Scientific Research and Reports 6(3), 227-236
Hair, Joseph., Wolfinbarger, Mary., Money, Arthur., Samouel, Phillip. and Page, Michael. 2015. Essentials of business research methods. London: Sage. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.
Harcharanjit, Singh., Rossilah, Jamil., Mas Bambang, Baroto., Maizaitulaidawati, Hussin., Yu, Boni. and Sukmindar, Singh. 2017. ‘Impact of financial and non- financial incentives on employee performance.’ Advanced Science Letters 23(1), 146-150
IBISWorld. 2017. ‘Consumer goods retailing in Australia: Market research report.’ IBISWorld 2-1-10
Marcyk, Geoffrey., DeMatteo, David. and Festinger, David. 2005. Essentials of research design and methodology. New York: Wiley
Matthews, Bob. and Ross, Liz. 2010. Research methods: A practical guide for the social sciences (1st Ed.). New Jersey: Wiley. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.
Mitchell, Mark. and Jolley, Janina. 2012. Research design explained. London: Cengage Learning
Mordor Intelligence. 2016. ‘Retail industry in Australia: Major trends, growth and opportunities (2016-2021).’ Mordor Intelligence. Retrieved from https://www.mordorintelligence.com/industry-reports/retail-industry-in-australia
Neergaard, Helle. and Ulhoi, John. 2007. Handbook of qualitative research methods in entrepreneurship. New York: Sage
Riemer, Frances., Lapan, Stephen. and Quartaroli, MaryLynn. 2012. Qualitative research: An introduction to methods and designs. London: Wiley. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.
Rukh, Lala., Abbasi, Saddam. and Choudhary, Muhammad. 2015. ‘Analysis of factors affecting employee satisfaction: A case study from Pakistan.’ International Journal of Management Practice 3(1), 23-30
Saunders, Mark., Lewis, Philip. and Thornhill, Adrian. 2012. Research methods for business students. New Jersey: Sage
Yousaf, Saira., Latif, Madiha., Alsam, Samaira. and Saddiqui, Anam. 2014. ‘Impact of financial and non- financial rewards on employee motivation.’ Middle-East Journal of Scientific Research 21(10), 1776-1786. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.
APPENDIX
Questionnaire Sample
- Background Information
- Gender
Male Female
- What is your age?
20-29 years 30-39 years 40-49 years 50 or above
- What is your highest education level?
Secondary school Diploma Bachelors degree Masters PhD - Which sector do your company belong?
Fashion
Supermarket
- Are you full time or part time employee? Yes No
- What is your job position in the organization?
- For how long have you worked in the organization?
- Based on priority, name the five most important financial incentive offered by your company. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.
Incentives | |
Letter of Appreciation | |
Health Insurance Cover | |
Insurance life cover | |
Promotions | |
gift cards | |
Trophies | |
Employee empowerment | |
Participation in decision making processes | |
Flexible working hours | |
Opportunities for foreign business trip |
9. Why do you think they are important?
Rate your responses for the following questions in a scale of 1-5 where 1
represents strongly disagree and 5 represent strongly agree
Questions | Strongly Disagree | Disagree | Neither Agree nor Disagree | Agree | Strongly Agree |
I am motivated when my salary and other financial benefits are paid regularly | |||||
Cash awards encourage me to perform well | |||||
My most important goal as an employee is to have financial security | |||||
I am motivated when promoted in the organization | |||||
I perform better in when recognized | |||||
The organization offers positive feedback to employees | |||||
I am motivated with appreciation cards |
- Rate your responses for the following questions in a scale of 1-5 where 1 represents strongly disagree and 5 represent strongly agree
Questions | Strongly Disagree | Disagree | Neither Agree nor Disagree | Agree | Strongly Agree |
I am satisfied with my job | |||||
The organization offers conducive working environment | |||||
I am able to meet my targets and goals | |||||
I experience real challenges in my job | |||||
I am not well equipped to perform my duties | |||||
I have been positively commended for my performance |
- Rate your responses for the following questions in a scale of 1-5 where 1 represents strongly disagree and 5 represent strongly agree
Questions | Strongly Disagree | Disagree | Neutral | Agree | Strongly Agree |
I have adequate information to solve problems in the organization | |||||
I know what problem the organization needs to solve | |||||
I am a creative employee | |||||
I know the process for giving input or new ideas. | |||||
I fully understand the company’s goals and vision. | |||||
I am interested in helping the company to succeed |