Literature review (Rewards) by Ainin
Based on Edirisooriya (2014) in his research, rewards refer to all form of financial returns and
tangible services and benefits and employee receives as part of an employment relationship
(Baratton, 1999). This can also be supported by Colin ( 1995) where rewards is the benefit that
arise from performing a task, rendering a service or discharging a responsibility. To understand
further, rewards can be categorized into extrinsic and intrinsic rewards. Ajila and Abiola (2004)
quote intrinsic and extrinsic as intrinsic rewards stems from rewards that are inherent in the job
itself and which the individual enjoys as a result of successfully completing the task or attaining
his goals. While extrinsic rewards are those that are external to the task of the job, such as pay,
work condition, fringe benefits, security, promotion, contract of service, the work environment
and conditions of work. In addition, according to Orvill (2000), rewards consist of two types
of rewards, namely monetary rewards and interest rewards. Monetary rewards are rewards
given to a person with payments such as salaries and allowances. Next is a reward in the form
of interest is a reward received by a person in a form other than money. For example, an
employee is given leave in return for a task that has been completed by the employee. A study
was conducted by Edirisooriyaa on 2014 with a title Impact of Rewards on Employee
Performance: With Special Reference to ElectriCo. In this past study, the researcher have it
own preference where he study a company name ElectricCo for the rewards and the employee
performance. The result of the findings show that there is a positive relationship between
intrinsic rewards, intrinsic rewards and employee performance. If the rewards offered to
employees in ElectriCo are increased, and then there would be an equivalent enhancement in
work motivation and employee performance. As this study will be conducted at Fave Asia Sdn
Bhd thus this past study by Edirisooriyaa is relevant with this independent variables.
Hypothesis
One of the factor that determine employee performance is rewards. Based on Aktar et all
(2012), there was a positive relationship between rewards and employees performance. Both
extrinsic and intrinsic rewards are highly positive significance in the relationship. According
to Berjum and Lehr (1964) quoted in Ajila and Abiola (2004) which showed that subjects who
received individual incentives performed better than those who did not receive. Thus, we can
hypothesized that:
H1: There is a positive relationship between rewards and employee performance.
Reference
Edirisooriyaa, W. A. (2014). Impact of Rewards on Employee Performance: With Special
Reference to ElectriCo.
Orvill (2000),Achieving the Right Balance: The Role of Policy-Making Processes in Managing
Human
Resources
for
Health
Problems»
(No.
2).
Discussion
Paper.
Ajila, C., & Abiola A. (2004). Influence of rewards on work performance in an organization.
J.Soc.sci, 8(1): 7-12.
Aktar et all (2012). The Impact of Rewards on Employee Performance in Commercial Banks
of Bangladesh: An Empirical Study. IOSR Journal of Business and Management
(IOSR-JBM).
Questionnaire
Section A: Respondent Demography
Please tick (√) in the appropriate box
A1. Gender :
Male
Female
A2. Age :
18 – 29
30 – 39
40 – 49
50 and above
A3. Race:
Malay
Chinese
India
Others
A4. Year of Service:
Less than 1 year
5 - 10 years
1 - 5 years
11 years and above
For sections B, C, D and E, please indicate your level of agreement on a scale of 1 to 5 in
each statement below by ticking (√) in the appropriate box.
Strongly
Disagree
Neutral
Agree
disagree
1
Strongly
Agree
2
3
4
5
Section C: Rewards
BIL STATEMENT
SCALES
1
1
The salary offer at my workplace is better than other
organizations.
2
There are many promotion opportunities in the
organization
3
The promotion system in my workplace offer only the
best can get the top spot
2
3
4
5
4
I am satisfied with the allowance I received
5
If I show creativity, I will receive a reward that is suitable
with my work
6
Employees will receive awards based on outstanding
work performance.
7
Letters of appreciation are rarely given after raising the
name of the organization through the activities that have
been attended.
8
Employees are encouraged to attend seminars or external
conferences as an extension to my work efforts
9
This organization appreaciates my works
10
My supervisor praised my good work.
11
The performance incentives provided means a lot to me.
12
I get recognition if I do a good job.
13
The salary given to me is commensurate with the work I
do.
14
For me the salary is the major factor in work.
15
The salary I received encouraged me to continue working
in this organization.