Employee Performance & Rewards in Banking Sector

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Abstract

The aim of the study was to identify the impact of the reward system on employee performance in the banking sector of Karachi, Pakistan. Rewards are essential for every organization. They can engage the organization mission and mend the overall sense of community. Good quality of reward makes organization effective and improves the performance of employees’. Similarly, a poor reward system makes an organization ineffective and leads the employee performance to be unproductive. So, organizations use a reward for improving their employee performance and their morale. Several surveys and experiences of HR professionals expose that the rewards increase employee motivation like benefits, pay, and incentives.

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It is clear that there is a research gap in this area and further research needs to be carried out in order to find out whether rewards have any impact on employee performance in the banking sector of Karachi, Pakistan. The study followed the quantitative technique to achieve the objectives of this study by explaining and identifying the relation and impact of reward on employee performance. There were six independent variables taken for this study. These are from intrinsic reward (recognition, career growth, motivation); from extrinsic reward (salary, fringe benefit, recognition). Convenience sampling was used to collect the data.

The researcher used a well-structured and close-ended question to measure the responses on a five-level Likert scale, which was given to 300 employees of a bank in Pakistan. The software that has been used for analysis is SPSS 17.0. The descriptive research design was used to analyze the data such as mean and standard deviation. Pearson correlation coefficient was used to determine if there is a significant positive correlation between each reward type and employee performance. Regression analysis was used to test the relationship between variables under the study of the research objective. Overall performance of banking employees was assessed as satisfactory. This study confirmed that intrinsic and extrinsic rewards increase employee performance and it has a positive impact on employee performance.

Introduction

Employees’ performance is one of the key components that can define an organization’s success. Therefore, it should be carefully managed through various motivation options. A company can encourage the performance of its staff members through the provision of certain rewards, which can be either financial or non-financial. The impacts of a reward system chosen by an organization can be reflected in the performance of its staff. The article used in this assignment provides an extensive overview of the implication of a reward system in the Pakistani banking sector. This paper aims to analyze the research conducted by Kanwal and Syed (2017) based on the contemporariness, novelty, and strengths and weaknesses of its methodology and research findings.

Contemporariness

The article was published in 2017, which makes it relatively up to date. The only issue with the contemporariness of the article is that the authors decided to use several outdated sources. However, Kanwal and Syed (2017) only used them in the introduction to provide a transparent background for their research, carefully guiding the reader through a series of definitions to enhance their understanding of further content.

The main body of the paper provides relevant information regarding the different reward systems and their importance in influencing employees in the Pakistani banking sector. Additionally, the majority of the content included in this research can be easily used in a similar type of article analyzing the topic in other banking sectors around the globe. Overall, the contemporariness of this research is only questionable when it comes to sources covered by the authors. However, the presented analysis of the impacts of various reward systems in motivating banking sector staff stays relevant up to this date.

Methodology

Kanwal and Syed repeatedly mention that the design of the research is rather descriptive. They do this to justify the research means, which were “elected” to be “qualitative and statistical” (Kanwal & Syed, 2017, p. 83). It is an optimal choice for the statistical analyses of the implications of various rewards systems on the employees’ performance and motivation. Furthermore, the authors selected a sample size of 300, including male and female employees from three Karachi banks who were offered to complete a questionnaire to collect primary data for the paper.

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This data, in turn, was split into two parts, with the former concerning demographics of responders and the latter focusing on their performance to achieve certain rewards provided by their employer. The methodology enabled the authors to collect enough primary data for their research and then efficiently use it to get the desired outcome. Therefore, Kanwal and Syed (2017) chose the most suitable means for their research, which enabled them to avoid all the irrelevant data which could have influenced the results rather poorly.

Research Results Analysis

The end of the research discussion presents three brief paragraphs where the authors comment on the statistical outcomes of research and, thus, prove the correlation between the level of employees’ motivation and the reward system. Unfortunately, this part of the article can become the subject of critique since Kanwal and Syed could have included more information to enhance the understanding of their readers on the initial goals of the research. Moreover, such a short discussion limits the potential analysis of other results, such as the dependence of an employee’s gender on their attitudes towards a particular reward system.

For instance, the authors had enough primary data to compare the influence of both extrinsic and intrinsic reward productivities on the male and female staff members included in their sample. This comparison could have altered their discussion of the results gathered in this research. Overall, despite the briefness of the result analysis, Kanwal and Syed managed to cover most of the crucial outcomes of their research, thus proving their hypothesis about the impact of reward systems on staff productivity.

Research Novelty

Unfortunately, the topic of research chosen by the two authors assumes that the article may lack novelty. There are plenty of papers of this kind since almost every employee would try to improve their efforts in performance management via the introduction of reward systems to encourage the productivity of their employees. For instance, similar research was conducted by Emelianova in 2019 regarding the influence of reward systems and staff performance using Normet Ltd as a case study. The author used a similar methodology and came to almost identical conclusions (Emelianova, 2019).

However, the article written by Kanwal and Syed is still geographically unique. It would be much easier to find and analyze similar research carried out in a European or American banking sector. There is an evident lack of academic works concerning the correlation between the employees’ performance and rewards provided by their organizations in Pakistan, which makes this rather unique.

Conclusion

To conclude, Kanwal and Syed provided outstanding research, which has several minor drawbacks. The main con of this paper is a relatively short final discussion and its novelty when it comes to investigating similar works from other scholars. However, all the other aspects of the article are no less than excellent since the writers showed their understanding of the research goals and used all the appropriate methodology to achieve the desired outcome.

References

Emelianova, Y. (2019). Impact of Reward System on Employee Performance: A Case Study of Normet Ltd. Web.

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Kanwal, K., & Syed, M. (2017). Impact of reward system on employee performance in banking sector. RADS Journal of Social Sciencess & Business Management, 4(2), pp. 82-103. Web.

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BusinessEssay. (2022, November 17). Employee Performance & Rewards in Banking Sector. Retrieved from https://business-essay.com/employee-performance-and-amp-rewards-in-banking-sector/

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BusinessEssay. (2022, November 17). Employee Performance & Rewards in Banking Sector. https://business-essay.com/employee-performance-and-amp-rewards-in-banking-sector/

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"Employee Performance & Rewards in Banking Sector." BusinessEssay, 17 Nov. 2022, business-essay.com/employee-performance-and-amp-rewards-in-banking-sector/.

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BusinessEssay. (2022) 'Employee Performance & Rewards in Banking Sector'. 17 November.

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BusinessEssay. 2022. "Employee Performance & Rewards in Banking Sector." November 17, 2022. https://business-essay.com/employee-performance-and-amp-rewards-in-banking-sector/.

1. BusinessEssay. "Employee Performance & Rewards in Banking Sector." November 17, 2022. https://business-essay.com/employee-performance-and-amp-rewards-in-banking-sector/.


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BusinessEssay. "Employee Performance & Rewards in Banking Sector." November 17, 2022. https://business-essay.com/employee-performance-and-amp-rewards-in-banking-sector/.