How Successful Are Financial Rewards for Motivating Employees

Abstract

Motivating employees has been used as management tool for improving the overall operational performance of an entity and maintaining a working environment which supports the goals of an organization. There are various ways which managers adopt to motivate their subordinates. Among these methods, the financial or monetary rewards are the most favoured motivational tools. However, the application of financial rewards as a motivational tool may vary from one region to another as people may have different preferences and requirements. The aim of this research work is to compare the difference in how financial rewards are perceived by employees working in different countries and to find out whether financial rewards contribute in increasing motivation among employees in organizations. In addition, the research work also aims to highlight the cultural differences which affect employees’ views and opinions regarding financial rewards.

Apart from identifying motivation theories and presenting a theoretical framework in this respect, this research work also takes into consideration the past research works carried out by different researchers on the topic. Making use this review, the author of this report presents a conceptual framework.

Keeping in view the nature and the desired results to be obtained out of present study, it is viable to implement a quantitative approach, as this study aims to find out the effectiveness and requirement for financial motivators in two of the UK’s leading companies, i.e. Standard Chartered and Glaxo Smith Klein in UK, India and Brazil. It would enable the researcher to transform and present the conclusive results by utilizing the data available regarding the subject in discussion.

Introduction

“Your most precious possession is not your financial assets. Your most precious possession is the people you have working there, and what they carry around in their heads, and their ability to work together.” (Reich 2002)

Since the inception of organizational setups of doing business, the people who run the businesses have been involved in seeking ways to improve the motivation of employees and workers which may eventually help the organizations to achieve their goals and objectives. Motivation as defined by Robbins (1993) is “the willingness to exert high levels of effort toward goals, conditioned by the effort’s ability to satisfy some individual need” (Trollip 2001) Thus it is the willingness of an individual to make efforts in pursuance of the achievement of overall organization goals and objectives.

Financial rewards are considered by many as a persuasive tool for motivating employees in an organizational setting. However, considering the needs, requirements and preferences of individuals placed in different levels of social hierarchy and the lifestyles adopted by them are considered to be the key determinants of motivating factors. Apart from this, the cultural traditions and norms are also regarded as influencing the choices of motivating factors among individuals (Shanks, 2007). There have been huge changes in the way organizations opt for increasing motivation among the employees in the last 50 years or so. Considering the emergences of new and intense forces of competition and rivalry among businesses worldwide and the trend of globalization, organizations are today more focused on improving the efficiency levels of their employees through effective management (Ilinitch, D’Aveni and Lewin 1996). Motivating employees has been used as management tool for improving the overall operational performance of an entity and maintaining a working environment which supports the goals of an organization. There are various ways which managers adopt to motivate their subordinates. Among these methods, the financial or monetary rewards are the most favoured motivational tools. However, the application of financial rewards as a motivational tool may vary from one region to another as people may have different preferences and requirements (Bassett-Jones and Lloyd 2005).

Research Aim

The aim of this research work is to compare the difference in how financial rewards are perceived by employees working in different countries and to find out whether financial rewards contribute in increasing motivation among employees in organizations. In addition, the research work also aims to highlight the cultural differences which affect employees’ views and opinions regarding financial rewards.

Research Objectives

In light of the aim of this research work, the objective of this research work is to find out,

• The influence of financial rewards on the motivation level of employees working in different organizations;
• The effects of financial rewards on the motivation level of employees working in different cultural settings; and
• The perceptions developed in individuals by different cultural norms which affect their views relating to financial rewards as motivating factor.

Research Questions

In light of the research aim and research objectives developed for this study, following can be set as the research questions to be addressed in this research work:

• Is there any influence of financial rewards on the motivation levels of employees in an organization?
• How financial rewards affect the motivation levels of employees in different parts of the world?
• What are the perceptions among employees regarding financial rewards as a motivating factor with respect to different cultural settings?

Hypotheses

Keeping in view the research questions set for this research work, the hypotheses which can be tested out are presented as follows:

Null Hypothesis

• H­­­₀: Financial Rewards are successful in motivating employees in different parts of the world.
• H₁: Financial Rewards are not successful in motivating employees in different parts of the world.

Structure of the Report

This report has five chapters in all and these chapters follow the structure as presented below.

Chapter – 01: Introduction: The first chapter of this report is the introductory chapter which begins with providing a brief background of the subject of this research work. After the background, the study provides aim and objectives of this research work and lays down the research questions which are to be addressed in this study. The chapter also sets the hypotheses which are to be tested in this research work and they are set on the basis of research questions. At the end the chapter includes the significance of this study.

Chapter – 02: Literature Review: The second chapter of this report aims at reviewing the literature available on the subject and presents theoretical and conceptual frameworks. In theoretical framework, various theories related to motivation are included which support the subject of this research work. Apart from theoretical framework, the study also takes into previous research work on this topic in a conceptual framework and reviews the conclusions reached by different researchers in the past.

Chapter – 03: Research Methodology: This chapter presents the research methodology being adopted by the researcher while carrying out the present research work. The chapter discusses in detail different methods and approaches of researches which may be adopted and out of them identifies one research methodology to be adopted. The author of this report also presents a justification of adopting a particular research methodology. Along with this, the chapter also presents the method and types of data collected for the purposes of this research work. At the end, the chapter lays down the basis upon which the researcher of this report tests the hypotheses set earlier in chapter one.

Chapter – 04: Findings and Analysis: This is the most important portion of this report. This chapter includes the results of the research work and analyzes them in light of the research questions and hypotheses of this research work. The findings and analysis presented in this chapter assist the researcher in reaching conclusions and accepting or rejecting the hypotheses set in the next chapter.

Chapter – 05: Conclusion and Recommendations: This is the last chapter of this report which presents an overview of the findings of the research work and on the basis of these findings the researcher accepts or rejects the hypotheses with justification. Apart from this, the chapter also presents the recommendation for organizations and those who are responsible for dealing with situations which are covered in this research work. In addition, the researcher also presents recommendations for those who aim to carry out research works on the subject in future.

Ethical Considerations and Disclaimer

The present study is being conducted while considering the ethical considerations related to the collection and application of data obtained through different sources. The intention of the researcher in this study in relation to the usage of data being collected is to address the research questions identified in this report. Apart from this, the author of this report has taken into consideration copyright and plagiarism issues while conducting this research work. Moreover, the findings and conclusions reached in this study are claimed hereby to be the original work of the author of this report. Furthermore, it is also hereby declared that the researcher of this research work does not assume any responsibility for the consequences resulting from any decision or action taken on the basis of conclusions reached in this study. In addition, the researcher shall not be held responsible for any loss or detriment caused by any action taken by any person on the basis of findings and conclusions reached in this study.

Literature Review

Introduction

When the research works in relation to motivating employees in organizational settings initiated in the middle of 20^th century; majority of researchers followed one of the two existing approaches to look at employees’ motivation. The first approach regarded employees as having a passive and work avoidance attitude in organizations. In addition to this, this approach suggested that in order to improve the level of motivation among employees, external stimulation is required. On the other hand, the second approach viewed employees as if they are highly motivated to perform their respective tasks in a workplace. In fact, the approach followed that the motivation to work comes from the nature of the work itself and the benefits associated with the work which may include monetary and non-monetary perquisites. Therefore, the second approach followed that the motivation among employees at workplace emerges out of the work itself.

This chapter focuses on reviewing the theoretical developments in relation to motivation and organizations. Apart from identifying motivation theories and presenting a theoretical framework in this respect, the chapter also takes into consideration the past research works carried out by different researchers on the topic. Making use this review, the author of this report presents a conceptual framework.

Motivation

Researchers in past have conducted researches to understand the human psychology and the different traits of it that enables every human being to react to a particular situation or condition in their own way. So far, no researcher or scholar has come up with a clear view or idea that makes it easier to understand how human beings get motivated and what is their perception of motivation (Shah and Gardner 2008). Motivation is derived from a Latin word “movere” which defines a human action to move positively in a direction (Furnham, 2005). Other definitions of motivation provided by different scholars define it as a process during which a human being energizes, arouses, sustains or directs his or her behaviour. A motivated person shows willingness and agreeableness towards an action, which has its roots in the emotions or external stimulus for the sake of achieving goals and objectives. Motivation pursues a person to perform a task inspired by his own will to achieve higher objectives than those; he or she has already achieved (Stajkovic and Luthans, 1998). In some cases, punishment of not achieving goals and objectives becomes the fear to perform a task or job. According to another school of thought, motivation helps people in measuring the level of excitement or a positive behaviour that individuals show towards engaging themselves in to an activity (Zaphiris and Ang, 2009).

Thus, motivation is a force that makes people to achieve certain goals and objectives in their lives and highlight the importance of accomplishing tasks that have been assigned to them. Human resource, being the most valuable asset of any organization as it helps the business to achieve the targets, remains the focal point in organizations’ lives (Adair, 1990). Therefore, businesses deficiency to check and compute results their employees’ motivation and deliver for the factors that presently lead to greater motivation and hence greater productivity and triumph of corporate objectives. Top managers are responsible for running the business smoothly, so it is important to motivate them more as compare to other workers (Beck, 2005).

Motivation Types

Motivation is commonly defined as a source of energizing human being intrinsically or extrinsically. Both, intrinsic and extrinsic motivators have their importance at their place, depending upon the requirement for getting motivated shown by the individuals (O’Neil and Drillings 1994). It is clear that motivation is necessary to make people perform better and with their full capability in order to produce better results for the organization (Skehan and Dornyei, 2008).

Extrinsic motivators arouse a human being to achieve their goals and targets. On the other hand, intrinsic motivators aim to provide internal satisfaction and a feeling of being happy to individuals (Baldoni 2005). In an organizational setup, employees are hired to run the operational capacities of the company, so that the organization achieves its corporate goals and objectives (Davies and Elder, 2005). Up to this point, extrinsic motivators play their role to motivate employees to deliver best quality work. During the same process, employees work hard because they want to earn good money for the quality and hard work they have produced, which results in internal satisfaction achieved by employees (Agarwal, 2011).

Extrinsic motivators can further be classified into three categories, i.e. interjected regulation, external regulation and identified regulation. Interjected regulation provides that an individual creates a situation him or herself, where it has to accomplish certain tasks and goals. External regulation forces an individual to perform task and achieve goals, inspired by the benefits that can be achieved (Potts et al., 2006). Identified regulations motivate a person to achieve goals and objectives due to his or her personal behaviour and priorities (Levesque 2007). Motivation derived from knowledge, accomplishment and simulation are the three types of intrinsic motivations (Montana and Charnov, 2008).

According to Agarwal (2010), motivation can be modelled into five different sectors, each aiming to arouse individuals to accomplish their goals. These are action motivation, cultural and societal element of motivation, surety of incentives, and motivation from fear of being punished and motivation for implementing a change process (Wood 2011). An individual’s hunger for accomplishing goals and objectives lies within the boundaries of being motivated from potential achievements. The rewards that will be paid to an individual against the performance or results delivered by the individual are the resultant of motivation from assured incentives (Hodder 2011). Motivation from fear of being punished has its roots in a condition, where uncertainty regarding the role or disadvantage that can be enforced on an individual, if he or she does not accomplish goals and objectives (K. Thomas 2009). Motivation for implementing a change or a change process is due to the person’s desire to change the surrounding environment or shifting to another vocation (Agarwal 2011).

Chris Young advises six motivators that retain staff and lid administrators interested in their labour and abide via the policies of their employers (Mackay 2010). These motivators include 1) utilitarian – motivation for cash or efficiency 2) experiences – motivation to learn and gain experience 3) social – motivation from social factors 4) aesthetic – motivation for superior labouring conditions and physical fulfilment 5) energy – motivation to composure oneself and others, and 6) tradition – motivation to exist according to the set values of life (Young, 2008).

Theoretical Framework

A theoretical framework provides an inside into the theories and concepts that tend to support the findings and conclusion of a research study. Therefore; keeping in view the present study, the theoretical framework would help the researcher to determine the relationship between cultural diversity and role of financial motivators on employees’ performance in different cultures (Borgatti, 1999).

There are many theories which explain the concept of motivation with respect to organizational settings, but at the same time there are some theorists whose works are regarded as the major contribution in this regard. Among these, theories presented by Hofstede, Herzberg, Vroom and Adam are presented, explained and interlinked with the subject of this study (Kreitner and Kinicki, 2008).

Hofstede’s Typology

There are various theories and models which have been developed with the objective of explaining and predicting the manner in which workers prioritize their preferences with respect to different cultural settings. Among all the theories which exist today, Hofstede’s 4 dimensions theory is regarded as the most relevant means to explore the cross cultural differences in relation to employee motivation attributable to financial rewards (Ardichvili and Kuchinke, 2002). It can be observed that apart from the fact that other models also exist which explain the cultural differences and their effects, Hofstede’s model holds a special place and other models follow the same guidelines and bases on which Hofstede’s work is based. In his work, Hofstede presented four different dimensions while keeping in view the cultural norms existing in a society. The model presented by him included those major factors which develops differences related to the financial rewards and the performance of employees. The factors include ‘Power Distance’, ‘Uncertainty Avoidance’, ‘Individualism and Collectivism’ and ‘Masculinity and Femininity’. The objective of Hofstede by presenting this 4 dimensions model was to clarify how national cultures are closely related to and affect the overall organization (Vitell, Nwachukwu and Barnes 1993). The bases on which the four identified dimensions are explained by Hofstede are summarized as follows:

Power/ Distance

The inequality that exists between individuals and is accepted by them with and without the authority is known as power/distance. In societies and organizations, where high levels of power and distance is accepted by the individuals, is considered to be accepting high levels of inequality of power and authority. People are ready to adjust themselves according to what the system requires from them. Organizations and societies where there is a low level of power and distance, power and authority is equally distributed and well dispersed. In other terms, individuals of the society and organization are considered to be standing equal in all respects (Mindtools 2011). The levels of power and distance practiced by societies and organizations and its impact are summarized in the figure provided below:

Figure 1: Hofstede’s Cultural Dimensions: Power/Distance (Mindtools 2011)

Uncertainty and Avoidance

The level of anxiety, individuals of a society feels when they face an uncertain situation or an unexpected event. High levels of uncertainty or avoidance indicates a situation where individuals strive to avoid such incidents or scenarios. Low levels of uncertainty or avoidance refers to a situation where individuals and societies experience a novel event and values differences (Mindtools 2011). The level of uncertainty and avoidance applicable to different scenarios and their impact are projected in the figure below:

Figure 2: Hofstede’s Cultural Dimensions: Uncertainty and Avoidance (Mindtools 2011)

Individualism

Individualism refers to the level of strong relationships that exists between different individuals of the society or organizations. A high individualistic society projects a scenario where connection between people is loose and there exists a communication gap. Societies with lower individualism would be experiencing strong communication within groups and among individuals. People are supposed to be loyal with each other and respect personal values of each other (Mindtools 2011).

Figure 3: Hofstede’s Cultural Dimensions: Individualism (Mindtools 2011)

Masculinity

The level of acceptance within a society to the values, role of masculine and feminine and the stickiness to the core beliefs. High masculinity refers to a scenario where men play the leading role and expectations from their actions are always high. Men are supposed to be strong and tough to face whatever comes to them. Societies with lower masculinity provide equal opportunities to men and women and both genders have to play an important role in their respective lives (Mindtools 2011).

Figure 4: Hofstede’s Cultural Dimensions: Masculinity (Mindtools 2011)

Adam’s Equity Theory

Adams (1976) stated in his famous equity theory that individuals living in a society or working in an organization goes through a cognitive process which facilitates them to identify the performance levels of their co-workers working under same environment and place. When this process continues to facilitate that cognitive process, individuals design their own analysis of the work nature their colleagues are performing and compare the resultant with the work, other individuals are performing. At the same time, individuals also compare the rewards that others are receiving as compare to their co-workers, and also, the rewards that their co-workers are also receiving (Kinicki and Kreitner, 2009).

The bottom-line that can be derived from Adams’ equity theory is that, if inequality is observed by individuals during the cognitive process, there is a possibility that the outcome would be low motivation towards work among individuals and they would seek for balance in the reward system (Dfat and Marcic, 2010). Employees working in an organizational system keep a check on how they are performing their jobs and the outcome that they are achieving that job so that it becomes easier for them to compare with the performance of co-workers within and outside their departments (Adams and Freedman 1976).

Expectancy Theory

Expectancy theory suggests that employees measure the relationship of the efforts they put in to perform their jobs and the rewards they receive against those efforts, in order to get motivated. This theory was suggested by Vroom (1964) who continues to expand the concept of motivation by saying, when employees went through the process of measuring their performance and the rewards they receive against it, they are able to predict what they will be getting in return of their efforts (Brooks and Nancy 1990). In this way the theory implies that the motivation level of top managers could be estimated if expectancy, instrumentality and valence values can be ascertained. Different variations and dimensions of psychological attitude that employees reflect in their performance contributes to the motivational levels amongst them. Let it be employees’ abilities, psychological traits, perceptions or opportunities provided to them within the organization, it is employer’s duty to understand the needs and desires of employees and develop a certain framework which keeps employees satisfied from their jobs. Also employees need to ensure that reward compensation is not inequitable (Koontz and Weihrich 2007, Wendelien and Henk 1996).

Job Satisfaction

Maslow’s famous theory of motivation was altered by Frederick Herzberg. The modified version of Herzberg’s theory is commonly known as two-factor theory which divides motivation into two classes. According to Herzberg, the first class of motivation includes motivators derived from organizational policies, management, administration, working environment, relationship among co-workers, job security, and status in the society and personal experiences in life. All these factors are termed as hygiene factors and fell in to the category of extrinsic motivators (Nelson and Campbell, 2011).

The second class entails a list of intrinsic factors which are commonly perceived as positive motivators at work place and provide satisfaction to the employees (Wiesner and McDonald, 2001). These motivators or satisfiers have their roots in job enrichment, job enlargement, recognition, responsibilities handled to individuals and opportunities for progress provided to employees within an organizational setup. According to Herzberg, lower job satisfaction leads because of lack of opportunities available to employees’ leads to lower motivation and lower outcome of the input that employees put in to their jobs (Nash, 1985).

Just like the theoretical work done by Maslow in his Hierarchy theory, Herzberg’s work also faced severe criticism due to the fact that, many other scholars called it a theory that only indicate indifferent human behaviour towards certain situations. Employees are often seen to respond positively to the internal factors and negatively to the external factors (Goldsmith and Carter, 2010). Another criticism over Herzberg’s two factor theory came from Evan (1970), who is of the view that the theory only identifies specific job range and neglects the role of other dimensions of individual’s attitude towards life and work place (Koontz and Weihrich, 2007).

Previous Studies

Motivating employees by financial rewards is necessary. Even in tough financial conditions and economic downturns, it becomes essential to keep employees energetic and interested in work to overshadow the adverse effects of financial crunch (Barkma, 1995). In this manner, financial motivators play a vital role in keeping employees of all levels and departments motivated which provide employees enduring satisfaction from their jobs and develop a sense of acknowledgement for the efforts they put in the organization’s path to accomplishing its goals and objectives (Andrew, 2005). Human resource of an organization is the most precious asset which maintains focus of the organization on its goals and objectives (Duxbury and Higgins, 2001). Employees are the driving force of any organization, which bridge the gap between the business level strategies, their implementation and controlling of the organizational processes to keep the decorum stable. Although, management is the most concerned and bearing department of any organization, but lower and middle level employees also play a crucial part in the success of any organization as they are responsible for the basic operations such as, operations, supply chain, marketing, distribution and after sales services (Kim and Mauborgne, 1993).

Motivating employees at every organizational level is compulsory for management or owners of the business as the reduced level of motivation amongst employees surely puts an adverse impact on organization’s performance (International Management Consultants, 2011). Management’s actions towards motivating employees and leading them to facilitate the accomplishment of goals are critical for the success of business and employees, both (Hitt et al., 2009). Despite of the fact that top management always bears the load of failures and joys of success, it is employees through which management implements their strategies. In this manner, motivating employees is important for employers as it is directly linked to the expanded productivity and effective implementation or policies and strategies (Gebler, 2009).

Benefits of motivating employees by financial rewards holds uncountable benefits that can lead an organization to a competitive place, where its competitors cannot easily provide quality competition. Motivating employees not only provides opportunities to organization for implementing strategies and plans successfully, but also help it to retain employees who are an important and productive asset to the organization (West and Cianfrani, 2005). In this regard, it can be said that organizations does not have to incur expenses on hiring, training and development new work force if it retains the old team. In conditions, where employees fall victim to boredom from the job, financial rewards can prove to be a beneficial motivator which uplifts the moral and compel employees to put their best efforts in their respective jobs (Efere, 2005).

Conceptual Framework

Conclusion

The literature review presented for the readers contains important information and theoretical grounds for deriving conclusive results for analyzing the impact of financial rewards on employees’ performance in different countries of the world. The scenarios and conditions presented in this extensive part of the research study would enable the researcher to understand various types of motivation and their effectiveness in retaining employees and providing them job satisfaction. It identifies the differences that exist between intrinsic and extrinsic motivators and how financial rewards can be most successful motivators to overcome the boredom and less interest showed by employees towards their jobs.

Research Methodology

Introduction

This chapter of the report takes into consideration the research methodology being adopted by the author of this report and the nature and sources of data collected for the purposes of this study. A brief overview relating to the questions asked in the survey of different employees of different companies has also been presented in this chapter. After presenting this information, the author highlights the limitations which are attributable to the research methodology being adopted in this research work.

Applied Methodology

A research work may be ‘Qualitative’ or ‘Quantitative’ or both in its nature. A qualitative research work primarily consists of a person’s own interpretation of different facts and information relating to a particular subject (Thomas 2003). It can also be observed that the data on which qualitative researches are based is also qualitative in nature. Moreover, qualitative researches in nature make use of inductive approach due to the fact that these researches are aimed at identifying particular trends, practices or phenomenon and therefore are applicable generally on the environment (Marlow and Boone 2011).

The quantitative research provides results in statistical and numeric form and are considered to be more realistic, authentic and designed in a deductive manner. The research studies based on quantitative approach rely on the authenticity of the numeric data available for assessment of the hypothesis or research questions and are more scientific in nature (QMSS 2011). Quantitative research studies provide results by analyzing the cause and effect to leave an impression that the conclusion is suitable and logical. These facts presented about the quantitative research approach makes it clear that they are more reliable as considered to qualitative research studies (Burney 2008).

Keeping in view the nature and the desired results to be obtained out of present study, it is viable to implement a quantitative approach, as this study aims to find out the effectiveness and requirement for financial motivators in two of the UK’s leading companies, i.e. Standard Chartered and Glaxo Smith Klein in UK, India and Brazil. It would enable the researcher to transform and present the conclusive results by utilizing the data available regarding the subject in discussion (Gratton and Jones 2010). The quantitative approach is based on the numeric and statistical facts and figures and various statistical tools are used to assess the numeric data collected from research premises through different sources (McDaniel and Gates, 1998).

Sources of Data Collection

Considering the aim and objectives of this research work, the author makes use of various sources of data collection which are secondary in nature. These sources include past research works which coincide with the subject of this research work. Apart from this, the author of this report has taken into account the information available from other secondary sources which include books, journals, newspapers, online sources, magazines, annual reports of the companies (non-financial information) and other published materials.

Primary Data

In present research study, researcher’s focus is on retrieving as much information regarding the effectiveness of financial motivators, as possible so that the conclusion derived from the analyzed information can be utilized to successfully achieves the goals of this study. In this manner, the researcher has used Likert scale based questionnaire, containing 23 statements. The questionnaire is distributed among 25 employees, each working in Standard Chartered and Glaxo Smith Klein’s businesses in UK, India and Brazil. This questionnaire helps the researcher to analyze the impact of financial motivators on the performance of employees. Once the data is gathered, researcher analyzed it by measuring the level of agreement or disagreement showed by the respondents in their responses to the statements in the questionnaire (Frank and Maynard 2000).

Survey Questions

The Likert scale questionnaire designed for present study consists of statements that are aimed at measuring the impact of financial motivators on the performance and motivational levels of employees in Standard Chartered and Glaxo Smith Klein’s India, UK and Brazil’s businesses. For this reason, the questionnaire consist of 5 general statements focusing on demographics of the respondents and 23 main statements aiming to understand the actual impact of financial motivators. For measuring their responses, the researcher used Likert scale to measure the level agreeableness and disagreeableness of the customers. In Likert scale, a statement with rating 1 shows that the respondent is strongly agree with the statement provided whereas rating 5 shows customers’ strong disagreement (McDaniel and Gates, 1998).

The questionnaire is designed keeping in view the questionnaire designs that were utilized by researchers in order to measure effectiveness of a phenomenon. The researcher has paid especial consideration towards not including all the questions of the questionnaires utilized by researchers in past. Instead, few questions are included with modifications and alterations.

The questionnaire is sent to the respondents via electronic mail system. Respondent’s email addresses were acquired from Glaxo Smith Klein and Standard Chartered’s databases after acquiring the permission from both organizations.

Sampling

Sample denotes a group or sub group of people out of a large population. Sampling refers to the process of identifying and selecting a group out of large population that represents the general attribute of that population (Fuller, 2009). Considering the nature of current study, the researcher has implemented probability random sampling technique which enables to select employees from Standard Chartered and Glaxo Smith Klein in India, Brazil and UK, on random basis. In this way, every employee working in these two organizations have the equal chances to be selected as a sample. Researcher chose to go for random sampling as it is convenient and provides accessibility to each employee. Implementing such a sampling technique would facilitate the collection of valuable data and gaining knowledge related to various trends helpful for the study.

For selecting sample and conducting primary research, the researcher took prior permission from Standard Chartered and Glaxo Smith Klein’s respective management in Brazil, India and UK. The researcher also took prior permission from the participants as well and told them that their personal information would not be disclosed under any circumstances.

Secondary Data

For reviewing the related literature provided by past researchers on the same context, researcher utilized the secondary data regarding the financial motivational factors and its impact on employees in UK, India and Brazil. Researcher tried to use the publically published information only and took prior approval of companies before using their internal data. Researchers used both online and offline mediums to gather information. These mediums included online and offline published scholarly articles, books, newspapers, human resource research papers, journal articles, company reports and other published and available sources. The offline sources for carrying out secondary research have been approached within the university library. These sources proved to be beneficial in developing objectives of this study regarding the motivation factors and their relation to top managers’ performance in their respective organization.

Limitations

• Being a quantitative research, this study does not provide descriptive finding which becomes valuable for future researches to be conducted on the same topic.
• Quantitative studies are not understandable for everyone and tend to create a number of ambiguities in the mind of readers to perceive the concept and ideas presented in the study to clarify the subject.
• The researcher has conducted the research at two companies, i.e. Glaxo Smith Klein and Standard Chartered due to shortage of finances and time constraints.
• A Number of participants did not have sufficient knowledge of the subject and that is why they left many questions unfilled. There were 25 participants who had not completed the questionnaires. These unfilled questions put deep impact on the validity and reliability of the data collected and created sampling errors.

Findings and Analysis

Introduction

This chapter provides an inside to the findings collected against the questionnaire. As the objectives of this study focuses on the effectiveness of financial motivators provided to the employees working in different organizations in different countries possessing different cultural structure, researcher has divided the selected countries, India, Brazil and UK into developed and developing countries. UK lies in developed country category, whereas India and Brazil are kept in developing countries category. Although, interviews are conducted from employees working in Standard Chartered and GSK’s setups in above mentioned three countries, but the researcher will be providing finding and analysis from cultural aspects. Moreover, the discussion section provides a bridge between the literature reviewed in chapter two and the answers collected from the respondents.

United Kingdom

Demographics

In United Kingdom, most of the respondents belonged to the age brackets of 41-45, 36-40 and 25-30 years. Most of the respondents in UK were male and only 32% respondents were female. Most of the respondents were earning salaries above £25,000, whereas there were 26% such respondents who were earning less than £5,000 annually. Around 38% of the respondents were working in an upper management position and 32% were working in a middle level management position. Most of the respondents were new in their company, which is reflected by the fact that 38% of the total respondents had spent less than a year in their current organization. Only 26% respondents were working in their respective organization for more than three years.

Company Policy

Most of the respondents strongly agreed with the statement that they were informed regarding the salary packages at the time of hiring. Out of 50 respondents, most of the responses showed that employees neither agree nor disagree that the salary offered to them is competitive or better than what other companies are offering. Similar trend was observed among employees when they were asked about the bonus packages that were communicated to them at the time of hiring. On average, every second respondent strongly agreed that their employer follows a strict policy for increasing salaries and offering bonuses. Respondents strongly agreed with the statement that they are being paid compensation for performing jobs in excess time. Respondents neither agreed nor disagreed that their employers pay them allowances for performing job at out stations. Similar responses were collected when the respondents were asked whether or not their employers contribute to the pension plans. Respondents also provided indifferent answers regarding the extra financial benefits they receive from the employers. Employees in UK showed an inconvenient attitude when they were asked whether or not their employers revise the financial compensation packages according to the changing marketing environment. Employees responded with neither agree nor disagree against the competitiveness of the salary packages offered to them, salary packages offered to employees in their employing companies at different locations in the world, communication of policies to the employees and employees’ involvement in companies’ decision making processes.

Table 1: Company Policy: UK

Employees’ Perception

This section of the questionnaire was intended to identify employees’ perception regarding the financial rewards and compensations they receive against their performance at work place. The average mean values calculated against this section shows the tendency that the employees neither agree nor disagree with either they are satisfied from their jobs or not or the financial remuneration and rewards they collect against their performance at work place. There was one such statement which intended to identify whether the employees think that they are being provided with opportunities to increase their financial rewards, and around 34% respondents agreed with the statement. These results show that employees of Standard Chartered and GSK in UK have an indifferent perception towards the financial remuneration and rewards that they are receiving.

Table 2: Employees’ Perception: UK

India and Brazil

Demographics

Out of 50 respondents, 52% of the respondents in India belonged to age categories of 41-45 or 36-40, whereas in Brazil, 24% respondents were representing the age bracket of 41-45 years and 44% were in their thirties. More than 50% of the respondents were male and only 42% respondents were female in India, on the other hand, more than 60% of the Brazilian respondents were male. Around 28% of the respondents in India were earning between £5,000 and £10,000 annually, whereas another26% were earning more than £25,000 a year. In Brazil, 30% respondents were earning above £25,000 a year and another 26% each were either earning between £10,000 and £25,000 or less than £5,000 a year. Most of the respondents in India, i.e. 42% were as an upper management personnel, whereas in Brazil, 36% respondents were working at a higher management position. Loyalty with current employers is relatively high in India which is reflected from the fact that 40% respondents were working in the same company for more than three years and 38% were working in the same company for more than two years. Loyalty to employers in Brazil is comparatively low as 40% of the respondents were working for less than a year at their current work place and other 22% were working with the same employer for more than 2 years.

Company Policy

When the respondents in India and Brazil were asked about whether they were acknowledged about the financial remuneration they will be receiving, most of the respondents in India showed tendency towards agreeableness with the statement, whereas in Brazil, average respondents showed tendency towards neither agree nor disagree. About the competitiveness of the salary packages, respondents in India provided indifferent responses, whereas in Brazil, most of the respondents agreed to the competitiveness of the salary packages offered to them. At the time of hiring, Indian respondents were indifferent whether they were informed about the financial incentives or not. Same was the case with Brazilian respondents who also provided responses in the form neither agreement nor disagreement. Most of the respondents in Brazil and India provided that their employer follows a uniform policy for increment in salaries. Similar responses were collected in both countries for incentives offered by employer for overtime. Average respondents in India neither agreed nor disagreed with the statement that they are provided with allowances when they are working on external stations, whereas in Brazil, average respondents agreed that they receive allowances for such work. Respondents from both Brazil and India were indifferent when they were asked about the contribution of employer in their pension plans. Employees from India and Brazil were also indifferent when they were asked whether their employers provide additional financial benefits to them or not. When the employees in India and Brazil were asked whether the compensation packages offered to them are comparable to their employer’s compensation packages offered in other countries, they provided indifferent responses. Employees from both India and Brazil neither agreed nor disagreed with the statements that asked whether they are acknowledged about the company policies or do they play any role in the decision making processes.

Table 3: Company Policy: India

Table 4: Company Policy: Brazil

Employee Perception

The personal perception of respondents in India and Brazil reflected that average responses were neither agree nor disagree for the statement asking whether the employees are satisfied with the salaries they are receiving or not. Similar responses were collected against the statements inquiring about employees’ satisfaction regarding the bonuses and financial benefits their employers pay to them. Respondents were indifferent about the opportunities provided to them for increasing financial rewards in both countries. In India, average respondents were neither agreed nor disagreed with the statement that their managers convey their performance to higher authorities, whereas in Brazil, average respondents agreed with the statement. Regarding the statements, that intended to identify whether moving to another country, location or company might help employees to receive better financial remuneration, employees neither agreed nor disagreed. When employees were asked whether their compensation packages can be improved and whether they are satisfied from their current employers, respondents from both countries responded with neither agree nor disagree.

Table 5: Employee Perception: India

Table 6: Employee Perception: Brazil

Analysis

The findings of this study are presented in detail discussion in this section, which overviews the different dimensions of financial rewards and their perceived effectiveness in different cultures. As provided in the conceptual framework of this research study, the objectives of this study are to understand the effectiveness of financial rewards in different cultural setting. This section of t he study contains the discussion on the findings in the light of research questions provided in the first chapter.

The first research question of the study identifies whether financial rewards have any influence on the motivation levels of employees in an organization. It has been found during the primary and secondary research that financial rewards and motivators are perceived as the biggest contributors towards the enhanced motivational levels amongst employees and increased performance levels. As Vroom (1964) stated in his expectancy theory that individuals compare their performance at work place against the rewards they receive for the performance. As monitory incentives and motivators are considered to be of great importance as the basic necessities of individuals can be fulfilled by money. When employees know that they will be paid good money for their performance and excessive efforts at work place, they will surely try to achieve more which in result will help the organization to accomplish its targets.

The second research question tends to identify the role of financial motivators in different cultural settings. The findings of this study show that employees are more certain about the company policies in UK, whereas in India and Brazil, employees do not know whether their bosses are concerned about their performance at work place or not. UK is a developing country and people have equal rights in the country. It is essential for organizations to pay a handsome amount to employees along with bonuses and incentives. Women are provided with equal chances of employment. If an employee works for excessive hours, it is compulsory for the employers to pay for the excessive hours. This is the reason that employees have more rights in UK as compare to India or Brazil. In addition to the support by law, organizations in UK also possess employee friendly policies which provide them enduring benefits such as, loyalty shown by employees and retention of employees for longer time period. Also, in UK, Labour cost is high, which reflects that people are paid well for the work they perform for their employers.

On the other hand, employees can be hired at a very low cost. Especially in India, labour can be acquired at cheaper rates. As India and Brazil are still in their developmental stages, environment for job seekers is still not at its best as it is in other developing countries, like China, Malaysia or South Africa. Governments in Brazil and India do not play an important role for formulating certain employee protection laws. In addition, poverty rates in both these countries are relatively high. These are the reasons that employers does not pay well to their employees in Brazil and India and even they do not wish to pay for the excessive hours that workers has invested in achieving company’s targets and goals. Employers also neglect the role of financial remuneration and motivators in uplifting the moral of the employees.

Adam (1976) and Hofstede’s Typology states that every individual should be provided equal opportunities to grow and earn as much money as they can. Society should approve the individual role of every potential citizen and give them proper chances to explore their lives and fulfil their basic necessities, so that they can achieve their personal goals and at the same time, help organization achieve its goals and targets.

Employees’ perception regarding the role of financial motivators is observed to be same in all three countries, i.e. UK, India and Brazil. Employees were of the view that financial motivators enhance their performance at work and provide them satisfaction from their jobs. Money, being both intrinsic and extrinsic motivator, as it can provide self satisfaction and at the same time can help individual fulfils his or her obligations expected by the society. Herzberg’s two factor theory also suggests that if the employees are satisfied from their jobs and successful in fulfilling their personal obligations, it is guaranteed that they are going to put their best possible efforts at work place and become more productive.

Summary

In the light of findings and analysis of the data gathered against the primary research and the theories provided in the secondary research, the researcher is able to state that the null hypothesis of this study is valid, which entails that financial motivators are successful in motivating employees and enhancing their performance in different parts of the world. The other hypothesis of the study, i.e. financial motivators are not successful in motivating employees in different parts of the world is said to be rejected therefore.

Table 7: Hypothesis Testing

Conclusion and Recommendations

The present research study was carried out in two developing and one developed country where the industries have experienced excellent growth over the last decade. New organizations are entering into these countries and acquisition of local employees and institutions has boosted the growth and stability of the businesses. Human capital being a valuable asset for organizations remained secondary issue in Standard Chartered and GSK’s strategic planning however as competition became a necessity and businesses operating in UK, Brazil and India opted for the best knowledge and talent that is available in the market. Strategies are developed by organizations to not only to acquire human capital but also to retain and develop individuals who they consider to be suitable for various organizational tasks and decision making. Human resource management has become a focal point of corporate strategies and great deal of research has been made to evaluate the working conditions and policies of organizations operating in India, Brazil and UK that actually contribute to motivation of employees working for them.

Financial remuneration and incentives play a key role which has been identified in previous chapters. As money is the basic necessity of every human being which can satisfy all other needs and desires of an individual, it becomes essential for organizations to satisfy the monitory requirements of its human capital so that they can focus on their jobs and produce good results in the longer interest of the business.

Another aspect that need to be considered while deciding about the financial remuneration packages is the cultural differences in different countries. GSK and Standard Chartered operates in number of countries and they have to adapt such strategies for motivating employees that satisfies the needs and wants of different people living in different cultural structure. An employee in India has different set of requirements due to the cultural differences as compare to the employees in UK and Brazil. Therefore; it is concluded that despite of the fact that financial motivators are successful in motivating employees and lifting their moral, but the cultural differences have the capability to overshadow the impact of financial motivators.

Recommendations

The research aiming to understand employees’ perception of financial motivators and the impact of cultural diversity in India, Brazil and UK helps the research to draw certain recommendations, by following which, employers can motivate their employees in a better way.

• Organizations must evaluate their human resource policies and strategies in order to facilitate the interaction between human resource department and employees, more open and accessible.
• The financial remuneration and compensation packages should regularly be revised and communicated to the employees so that, in case of a change in policies regarding financial incentives, so that a general feeling of equitable treatment can be achieved.
• Organizations should communicate with the employees in order to understand their personal requirements and how they can be fulfilled. Employees’ performance should also be evaluated at regular basis so that it facilitates the organization to measure the performance and personal perception of employees regarding the financial incentives they might be achieving.

Personal Reflection

I offer my humble regards to those who facilitated the completion of this research study which measures the effectiveness of financial motivators in different cultural settings. This research work has proved to be one of the most inspirational and influential work experiences that I have gained in my academic life. In addition, the knowledge and skills that I have gained during the process will help me in achieving my goals and objectives in my life. Without the support of my family, friends, colleagues and most importantly, my supervisor, this report would not have been completed within the given time period. Effective implication of financial motivators is necessary and it may act as a catalyst to boost the performance of the employees and prove to be beneficial in long run. In my personal opinion, this research work has helped me a great deal for understanding why motivating employees is necessary by any means and how important it is for organization to understand the influence of cultural traits on individuals’ needs and requirements.

I experienced number of things that I never did, when the research work was under process. In the initial stages, research and the chosen case study of Standard Chartered and GSK looked quite revealing and simpler and the understanding of collection of data from different sources gathered from online databases and credible published sources looked easy, but it was not as it looked like. I had to face a lot of complication on the surface of this research. I wanted to do a qualitative research covering all the phases of the motivating employees and designing strategies to do so. Therefore; I made up whole plan for the research and followed it step by step along with the rules and procedures of the research.

My personal experience of research and analyzing phenomenon during my school, college and university life was not rich. In this manner, I tried to keep things simple and devote myself with complete concentration for t he completion of this study in style. Despite of the fact, that I do not have HRM as a major course in my university, I studied sufficient literature to understand the concepts of HRM and how effective HRM department can be in any organization to increase the productivity of workers.

I also made contact with few HRM experts and strategy makers so that I can compare and weigh out the pros and cons of motivating employees with financial motivators in different cultural settings. In order to go through the HRM practices of Standard Chartered and GSK, I had to go through the corporate information available regarding both these companies online and offline. In t he next phase, I carried out interviews of managers in these organization in UK, so that they can provide me valuable information regarding the HRM strategies of these companies in UK and other countries of the world.

Throughout this extensive research work, I make it sure that the sources and references I provide are reliable and trustworthy. I made every possible effort to avoid plagiarism and studied the material thoroughly so that it can be credited properly. Initially it looked easy as I discussed but during the process I agreed that sources and information are the hardest and the most vital aspect of any research.

Gradually I came across different patterns of research and usage of keywords by approving the logistics of material. With the positive start of the research I was very contented to see that it was going in a flow and by then I did not have to face major complications, except of a few which I guess was supposed to occur as my work was not that sort of an easy thing. Throughout the process of interviewing and surveying, through different primary and secondary sources I was somewhat able to draw information about the effectiveness of HRM strategies implemented by GSK and Standard Chartered Bank.

This research work will not only help me in understanding the motivational strategies of organizations but will also help others regarding it. This research can help in professional training as I have worked in a very systematic manner. Initially, I did not know anything about HRM or the HRM related strategy of GSK and Standard Chartered, but after this research I find human resource development more interesting as I know that a minor change on the human resource standards will have direct results on the business world. I have come across a fact that this matter of study is not just known to people who are associated with HRM but also to people who are in one way or another related to it.

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Appendix-I

Survey Questionnaire

This survey has been carried out to complete the dissertation titled “How Successful is the Financial Reward for Motivating employees in Different Parts of the World” which is currently pursued as a part of my DEGREE NAME at UNIVERSITY NAME.

The aim of this dissertation is to compare the difference in how financial rewards are perceived by employees working in different countries and whether they contribute different to their motivation. It also aims to highlight the cultural differences which affect employees’ views and opinions regarding financial rewards.

The questionnaire is based upon Likert Scale which allows the respondent to select their responses from a ranking as provided below: