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Research Methods For Strategic Managers
Research Methods For Strategic Managers
A. Select a Research Question B. Explain the factors that contribute to the process of successful research question selection C. Justify your choice of research question D. Conduct research to find literature relevant to the research question E. Undertake a critical review of the key literature for inclusion in a research proposal F. Evaluate techniques for use with quantitative data in a research proposal G. Evaluate techniques for use with qualitative data in a research proposal H. Evaluate appropriate research methodologies in terms of the research question I. Choose an appropriate methodology in terms of the research question
J. Choose an appropriate methodology in terms of the research question K. Justify the methodology selected in terms of the research questions L. Record findings on a research question, literature review and methodology in an agreed format M. Summarise the findings using suitable methods N. Present the findings using suitable methods O. Critically analyse the findings
Research Question : THE RELATIONSHIP BETWEEN REWARDS, RECOGNITION AND MOTIVATION AT INSURANCE COMPANY
IN THE LONDON
There are no standard rules for the selection of a research topic but the under listed will serve as a guide for researchers. 1. The topic must be educational in nature. The educational nature of a topic implies that the topic must be such that is geared towards providing a solution to an educational problem. It must also satisfy one of the major objectives of educational research - extension of knowledge and making a meaningful contribution in the teaching - learning process. 2. The topic to be selected must be of interest to the researcher. A person's interest in a topic provides the motivation that will enable the researcher complete the investigation. Interest also makes for dedication and commitment in the course of the study. This is one of the reasons; the supervisor should not select a topic for students. One cannot be committed to a study that has no personal meaning to him. 3. Topic must be original: the originality of a topic first and foremost eliminates duplication. A duplicated research study amounts to waste of energy, time, material and financial resources, because solution to that problem has already been provided. An original topic adds new knowledge which contributes to educational advancement. 4. Topic must be researchable: a topic is said to be researchable if it lends itself to investigation through the collection and analysis of objective and relevant data. It employs a systematic data gathering procedure for testing its theory and arriving at the solution to the problems. Example - does God answer prayers? God cures diseases. 5. Availability of time and financial resources: the topic must be such that can be completed within the time and money availables to the researchers. Excuses relating to time and financial handicaps are not tolerated in research. Many research studies are abandoned due to lack of time and financial resources. 6. Availability of data: the topic must be one in which the researcher can easily identify his subjects and means of collecting data from the subjects. Subjects in research may be human being, objects, events and structures such as buildings. 7. Facilities for data collecting must be available; such facilities like the libraries, computer and information centres. This is important for review of literature and analysis of data.
8. Topic must be significant: it must be capable of adding to new knowledge thereby providing solution to some knotty educational and social problems. Its findings must benefit some individuals. A critical consideration of most of the above principles will make topic selection as easy task for researchers. The study was conducted at a large life insurance organization in the London, but was contained to the Operations business unit, which is the office support to the largely sales driven teams that sell life insurance products or solutions. The Operations unit is the largest business unit, but also one of the units that do not have incentivized reward programmes. The outputs of this unit are significantly important to the organization as its key functions are processing of new policies and claims, which often have to be performed under high levels of pressure and against deadlines. The organization has as one of its strategic drivers, a high performance culture as a business priority and strategic intent. Creating a high performance culture requires a number of elements to be present, one of which is high levels of job performance that is underpinned by a highly motivated workforce. The organization is thus under constant pressure to revise its benefit offering to staff, which includes a reward and recognition programmed that staff buy-in too, is satisfied with and which is linked with the organization s strategy. AIMS OF THE RESEARCH An organization can use recognition as a strategic measure to show employees that their contribution to the organization is recognized, and in so doing, influence their motivation and job performance. Based on the findings of the research, the organization could improve and encourage the use of effective recognition in the feedback process of the performance management system. The findings of this research study could also influence the company to consider a more structured approach to recognition that would enable the high performance culture it strives to attain. The aim of this research is to investigate the role that reward and recognition plays in motivating employees. The study will explore which of these factors, reward or recognition, has a greater impact on employee motivation and satisfaction. OBJECTIVES OF THE STUDY The objectives of the study are: 1) To determine if there is a relationship between rewards and recognition and employee motivation and satisfaction. 2) To determine the impact of rewards on motivation and satisfaction. 3) To determine the impact of recognition on motivation. 4) To determine which factors contribute to work motivation and satisfaction. 5) To determine the impact of biographical variables on work motivation and satisfaction.
HYPOTHESES (i) There is no statistically significant relationship between work content, payment, promotion, recognition, working conditions, benefits, personal, leadership/supervision, general and work motivation and satisfaction in the Operation business unit of an insurance organization.
(ii) The nine independent variables (work content, payment, promotion, recognition, working conditions, benefits, personal, leadership/supervision and general) will not significantly explain the variance in work motivation and satisfaction.
(iii) There are no statistically significant differences in rewards and recognition based on the biographical variables (gender, home language, marital status, age, race, job classification, educational, qualifications, job grade and tenure). LITERATURE REVIEW The focus of this chapter is to provide insights to the theories that have shaped the understanding of motivation, by focusing on the content theories of motivation. The chapter proceeds with an in-depth presentation of a total rewards management programme and the support that a performance management process can provide to such a programme. Given the focus of this research study, it is important to have a sound understanding of the meaning of rewards and recognition, as they are often used interchangeably, but the literature indicates that there are unique, tangible differences between these concepts. 2.1 INTRODUCTION Todays reality is that people influence important aspects of organizational performance in a multitude of ways. People conceive and implement the organizational strategy, while the mix of people and systems mostly determines an organizations capabilities. Competencies are required to execute the strategy, and these competencies are primarily a function of the skills and knowledge of an organizations human capital. Therefore, if an organization is to treat its employees as its most important asset, it has to be knowledgeable about what it is that motivates people to reach their full potential (Lawler, 2003). Harris (1996) maintains that the workplace rules have changed. The workplace realities of yesterday no longer exist and what was once a dream of a lifetime job guaranteed in exchange for lifetime company loyalty has died. As the workplace rules have changed, so too must the way organizations meet the new motivational needs of todays employee. This changing work environment is well summarized by Beer et al. (1984), in which they support the fact those organizations today have significantly changed. In order for an organization to meet its
obligations to shareholders, employees and society, its top management must develop a relationship between the organization and employees that will fulfill the continually changing needs of both parties. At a minimum, the organization expects employees to perform reliably the tasks assigned to them and at the standards set for them, and to follow the rules that have been established to govern the workplace. Management often expects more: that employees take initiative, supervise themselves, continue to learn new skills, and be responsive to business needs. At a minimum, employees expect the organization to provide fair pay, safe working conditions, and fair treatment. Like management, employees often expect more, depending on the strength of their needs for security, status, involvement, challenge, power, and responsibility. Just how ambitious the expectations of each party are vary from organization to organization. For organizations to address these expectations an understanding of employee motivation is required (Beer et al., 1984). Carnegie (1975) emphasizes the human aspects of management. They postulate that as it is people who make a business succeed or fail it is the organizations chief responsibility to motivate their people so that they will assure success. The authors believe that each human being has the potential for creativity and for achieving goals. The infinite question is how organizations reach this potential and how they stimulate creativity and foster in their people the desire to succeed and to achieve selffulfilment through their work. The common theme of the above authors is the belief that people need to be respected and treated as precious human capital, more essential to an organizations effectiveness than its financial capital. People are now seen as the primary source of a companys competitive advantage. Therefore, the way people are treated increasingly determines whether an organization will prosper or even survive (Lawler, 2003). Organizations are under constant pressure to enhance and improve their performance and are realising that an interdependent relationship exists between organizational performance and employee performance. In the following section the focus will be on the motivational theories and the impact that these theories have on enhancing employee performance.
MOTIVATION AND JOB PERFORMANCE Motivation is defined as a set of processes concerned with the force that energises behaviour and directs it towards attaining some goal (Baron, 1983). Kreitner and Kinicki (1992, p. 162) postulate that motivation represents, those psychological processes that cause the arousal, direction and persistence of voluntary actions that are goal directed. If it is the role of managers to successfully guide employees toward accomplishing organizational objectives, it is imperative that they understand these psychological processes. Motivation is further described as being intentional and directional. The word intentional refers to personal choice and persistence of action, whilst directional denotes the presence of a driving force aimed at attaining a specific goal. In other words, a motivated person is always aware of the fact that a specific goal must be achieved, and would direct their effort at attaining that goal (Nel et al., 2001).
Mol (1992) on the other hand distinguishes between the terms movement and motivation. When a person carries out a task just for the sake of being remunerated, the person is moved rather than motivated. It is only when individuals carry out a task because they are enjoying it or are totally involved in it that they are motivated. According to La Motta (1995), motivation is simply the reason individuals have for doing the things they do. In day-to-day society many different things motivate people, and that which motivates one person may not necessarily motivate another. Things such as a love for life, a desire to succeed, fear of failure, the need for self-fulfilment or self-esteem, are all factors that influence motivation. In conjunction with this, employee motivation is a process that an organization can foster and nurture so that it can occur spontaneously. If organizations believe that people are naturally motivated, they must simply provide the environment and atmosphere that fosters and supports their motivation (Baron, 1983). La Motta (1995) posits the view that, the common wisdom is that managers have to learn to motivate people. He believes that employees bring their own motivation, and what they need from work is to be liberated, to be involved, to be accountable and to reach their full potential. Harris (1996) advances the notion of heartpower, which he defines as employees engaged passion for excellence. In accordance with this, organizations that capture the hearts of their employees seldom have to be concerned about motivation, as engaged hearts motivate themselves. People who are engaged and self-motivated do not have to be managed, as they are motivated by doing a job they believe in, in a constructive direction. According to Lawler (1973) as cited in Barling, Fullagar and Bluen (1987), a theory of work motivation must account for the control and prediction of behaviour. It must account for the phenomenon of voluntary behaviour being initiated, that is, it should identify the energisers of voluntary work behaviour. A theory of work motivation must explain how human behaviour is directed or channelled. It is evident that a good reward and recognition system can contribute to peoples satisfaction and their willingness and desire to learn and improve their skills and can lead to greater retention. The types of rewards and recognition that people receive are a major contributing factor to their level of satisfaction. The more highly rewarded and recognised people are, the more satisfied they tend to be with their job and with their life. This implies that satisfied employees are less likely to quit, change jobs, join unions, or be absent. In summary, organizations are better off when they provide people with a reward level that leads them to feel at least moderately satisfied (Lawler, 2003). Consistent in the literature is that, albeit a well-researched area, many organizations are still not leveraging off the value that a wellstructured total reward programme could add. It would appear that many organizations continue to make the mistake to have programmes that focuses primarily on reward, rather than a healthy balance of reward and recognition.
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Research Paradigm
This section should be included in your proposal when you expect to have readers who are not familiar with the naturalistic research paradigm. It may not be necessary in contexts where qualitative research is an accepted form of inquiry. A. Use specific language to name and describe your research paradigm (e.g., naturalistic, post-positivist).The term "paradigm" is used here to represent the epistemological, conceptual foundation for qualitative research. See Guba (1990).
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Describe the philosophical correlates of your research paradigm (e.g., phenomenology, hermeneutics). Cite authors who have defined your research paradigm in the social sciences and suggested its application to your field of study and/or your specific topic of study. See Moon, Dillon, and Sprenkle (1990). Explain the assumptions of your research paradigm. 1. Broadly speaking, describe what you intend to accomplish through this research (e.g., expanding a knowledge base, generating hypotheses for quantitative research, developing a grounded theory, emancipating informants, establishing the trustworthiness of a theory). See Atkinson and Heath (1990a, 1990b); Lincoln and Guba (1985). Explain the assumptions about the nature of knowledge and reality that underlie your research paradigm. Discuss how a formal literature review will be used. Describe the major tasks of the researcher in this paradigm of research. Comment on how the tasks differ in conventional social science research. Explain the type of relationship that the researcher has with the informants (e.g., unobtrusive observer, participant observer, collaborator, emancipation).
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Suggest the appropriate criteria for evaluating the research findings, research process, and the research report. The criteria should be consistent with your research paradigm and well documented. See Atkinson, Heath, and Chenail (1991).
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Research Method A. Identify and generally describe your research method (e.g., ethnographic field study, single case study), and your research procedures (e.g., long interviews, observation). Cite the major authors who have described your research method. See Lincoln and Guba (1985); Glaser and Strauss (1967), etc. Describe what you intend to do in detail, as you begin your study. 1. Explain how you will select informants and gain entry into the research context (if relevant). Describe the procedures you will take to protect the rights of your informants (e.g., informed consent, human subjects approval, debriefing). Describe the kind of relationship you intend to have with the informants. Will you be neutral, collaborative, objective?
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Describe the kind of data you will collect (e.g., field notes from memory, audio tapes, video tapes, transcripts of conversations, examination of existing documents, etc.). Describe your intended data collection procedures.If interviews are to be used, list your question(s) or attach as an appendix. Describe any equipment to be used. Describe the procedures you will use to keep track of the research process. This will become part of your audit trail. a. Process notes: Day to day activities, methodological notes, decision making procedures. Materials relating to intentions and reactions: personal notes about motivations, experiences with informants, etc. Instrument development information: revisions of interview questions, etc.
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Describe your intended data analysis procedures (coding, sorting, etc.)? a. Data reduction: Write-ups of field notes, transcription procedures and conventions, computer programs used, etc. Data reconstruction: development of categories, findings, conclusions, connections to existing literature, integration of concepts.
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Describe how the research design may evolve as the process unfolds. Describe how you will organize, format and present your data, interpretations, and conclusions.
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Describe how you will consider and protect "reliability" and "validity." Will you use systematic methods and procedures, triangulation, member checking, peer debriefing, auditing?
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Preliminary Biases, Suppositions and Hypotheses A. B. Summarize and reference all of the relevant literature that you have reviewed to date. Describe how your review of the literature has influenced the way you are approaching the research. Discuss how your previous experience with your topic has influenced the way you have conceptualized this research. Summarize relevant personal an professional experiences, if you have not done so in the Introduction.
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Disclose the anticipated findings, your hypotheses and your hunches. Describe the procedures you will use to remain "open" to unexpected information (e.g., peer debriefing). Discuss the limitations of your study in the context of the limitations of all similar studies.
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Characteristics of Quantitative and Qualitative Methods There are 2 broad categories of data collection methods: quantitative and qualitative. The difference in the 2 categories lies in the approach and the types of questions they seek to answer. There is the erroneous perception that quantitative methods are more objective and that qualitative methods are more subjective. Todays researchers recognise that both methods have subjective and objective qualities. Quantitative Methods Quantitative research uses methods adopted from the physical sciences that are designed to ensure objectivity, reliability and the ability to generalise. They seek to exert maximum control over the questions and potential answers and most often incorporate probability sampling methods to allow for statistical inference to the larger study population. The researcher is considered external to the actual research, and results are expected to be replicable no matter who conducts the research. Quantitative methods help to answer questions such as who, how much, and how many. Where probability sampling is used, statistical analysis will provide precise estimates for study variables, such as frequencies, averages, ranges, means, and percentages, at a known and quantifiable degree of confidence. The intent is to gather data to test a pre-determined hypothesis and only answers to those
questions/variables included in the questionnaire are collected. Questions are not open-ended and respondents are expected to provide short answers. This eases analysis, but limits the degree to which respondents participate and are able to provide explanations that they perceive (causes, rationale). Rather, explanations are sought by comparing associations and potentially causal relationships between variables (e.g. diarrhoea prevalence is lower among children whose primary drinking water source is a borehole; the lower prevalence, therefore, is explained by the source of water). Strengths Precise estimates, backed by statistical theory, are often invaluable for decision-making and advocacy because they are robust and objectively verifiable if the data is collected and analysed correctly. Weaknesses The greatest weakness of the quantitative approach is that it can take human behaviour out of context in a way that removes the event from its real world setting. Factors or variables left out of the data collection instrument are simply not considered in analysis. Qualitative Methods Qualitative research methods are designed to provide the researcher with the perspective of target audience members through immersion in their culture or situation and through direct interaction with them. These methods help to answer questions such as how and why. The focus is on presenting perceptions, judgments, and opinions and on explaining meanings, processes and reasons. Qualitative interviews differ from traditional structured interviews, in which formal questionnaires are used, by not being limited to a set of predetermined questions to be asked in sequence. Instead, the interviewer uses a checklist of topics to guide the interview, pursuing avenues that open along the way. When applying qualitative methods, the researcher becomes the instrument of data collection and results may vary greatly depending upon the researcher. Hypotheses
and additional follow-up questions are generated during data collection and analysis, and measurement tends to be subjective. Therefore, by their very nature, the methods are often not objectively verifiable. Strengths The strengths of using qualitative methods are that they generate rich, detailed data that leave the participants' perspectives intact and provide a context for their behaviour. Respondents provide their own explanations in a participatory exchange with interviewers. Weaknesses The weaknesses of using qualitative methods are that data collection and analysis may be labour intensive and time-consuming. As a result the number of respondents to which the method is applied is usually far fewer than for quantitative methods. Another disadvantage is that qualitative methods are often not objectively verifiable. When to use Quantitative or Qualitative Methods It is often appropriate to employ both quantitative and qualitative methods as they complement each others strengths and weaknesses. Qualitative methods might be used to explore issues during the early stages of a longer study, enabling the researchers to understand better what closed-ended and focused questions need to be asked as part of a quantitative study. Conversely, quantitative methods might highlight particular issues, which could then be studied in more depth through the use of qualitative methods and open-ended discussions. Also remember that quantitative data can result from qualitative methods and qualitative data can result from quantitative methods, such that the distinction between the 2 is often blurred. It is critical to note that the indicator does not necessarily pre-determine the data collection method. More often than not available resources and staff expertise will drive the decision to choose one data collection method over another. Also the type of data needed (quantitative versus qualitative) does not necessarily pre-determine the type of method to be used
(quantitative versus qualitative). Quantitative Methods are useful in the following Situations: When accurate and precise data are required. When sample estimates will be used to infer something about the larger population with the support of statistical theory. To test whether there is a statistical relationship between variables. To produce evidence to prove that a particular problem exists, or to justify a particular strategy. To identify the characteristics of a population (for example, during a baseline survey). Qualitative Methods are useful when: A broader understanding and explanation is required on a particular topic for which quantitative data alone is not sufficient. Information is needed on what people think about a particular situation, and what are their priorities. Seeking to understand why people behave in a certain way. There is a need to confirm or explain quantitative findings from a previous survey, or from secondary data. Resources and time are in short supply. Examples of how Qualitative and Quantitative Methods can be used to complement One Another 1. Qualitative methods contribute to the development of quantitative instruments, such as the use of focus groups in questionnaire construction. 2. Quantitative methods can use qualitative results to help interpret or explain the quantitative findings. 3. Quantitative results help interpret predominantly qualitative findings, such as when focus group participants are asked to fill out survey questionnaires at the session. 4. The 2 methodologies are used equally and in parallel to cross-validate and build upon each other's results.
RESEARCH METHODOLOGY
This chapter describes the research design utilised. Specifically, the chapter describes the sample of the study by reflecting on the biographical data of the respondents, the measuring instrument used and issues pertaining to its validity and reliability, the procedure followed to gather the data, the hypotheses and the statistical techniques used to analyse the data. POPULATION AND SAMPLE Sekaran (2001, p. 225) defines a population as the entire group of people, events or things of interest that the researcher wishes to investigate. The population for the study was obtained from a large life insurance organization in the London. The study was contained to the Operations business unit, which is the office support staff to the largely sales driven teams that sell life insurance products or solutions. The Operations unit is the largest business unit, but also one of the units that do not have incentivised reward programmes. The outputs of this unit are significantly important as a support function to the organization. Its key functions include processing of new policies and claims, dealing with client queries and complaints, improving information technology and technology architecture that would ensure system efficiency and effectiveness. These functions often have to be performed under high levels of pressure and against deadlines. The unit population consisted of approximately 1373 employees who are predominantly situated in the London. To access staff to participate in the study, the researcher relied on the assistance and cooperation of the human resources managers. The sample used in this study was selected from employees on post grade nine to fifteen in the business unit, which comprises mostly specialist or professional and management job categories. The decision to focus on post grades nine and above was based on the motivation of the human resource managers who observed that this group was usually more responsive to completing questionnaires and that it would result in the least amount of disruption, which was an important factor to take into account, given the pressures of the environment. Leary (2004, p. 118) defines sampling as, the process by which a researcher selects a sample of participants for a study from the population of interest. A total of 450 questionnaires were sent electronically to respondents and a total of 184 employees completed the questionnaire. According to Sekaran (2001), a response rate of thirty percent is acceptable for most studies. The response rate for this study was forty one percent (41%). A convenience sample was used, which according to Leary (2004) refers to a sample of participants that are readily available. Such samples, he postulates, are used because they are easy to obtain and not representative of people in general. Therefore the finding of studies, such as the present one which utilises convenience sampling, is low in generalisability.
QUESTIONNAIRE STRUCTURE
Each dimension had a number of possible responses from which the respondent could select the one which best suited their feeling or attitude at that given time. The selected responses were indicated on a three-point scale: True = 1 Not sure = 2 Untrue = 3 The respondents were requested to mark their chosen responses with an X (De Beer, 1987). RELIABILITY AND VALIDITY OF THE QUESTIONNAIRE Reliability refers to the consistency or dependability of a measuring instrument. Validity, on the other hand, refers to the extent to which a measurement procedure actually measures what it is intended to measure rather than measuring something else, or nothing at all (Leary, 2004, p. 69). De Beer (1987) conducted an item analysis to evaluate the inter-item consistency of the Work Motivation and Satisfaction Questionnaire. This provides an indication of the consistency of responses to all the items delineated in a measuring instrument. The Cronbach-Alpha reliability coefficients for the subsections of the Work Satisfaction and Motivation are as follows: Work content (r = 0.78), payment (r = 0.86), promotion (r = 0.84), recognition (r = 0.90), working conditions (r = 0.77), benefits (r = 0.84), my leader/supervisor (r = 0.72), general (r = 0.75). Prinsloo (1996) determined the internal consistency of the Work Motivation and Satisfaction Questionnaire by computing the coefficient alphas, conducting an item analysis and factor analysis. Prinsloo (1996) reported a coefficient alpha that is consistently high, ranging from .82 to .93, with a median of .90 for the instrument. The results of the item analysis also indicated that each item had a positive correlation with the total score for the Work Motivation and Satisfaction Questionnaire, with the average correlations ranging from a low of .42 to .74, with a median correlation of .64. This suggests that the 43 items of the Work Motivation and Satisfaction Questionnaire are relatively homogenous with respect to the underlying attitude construct they measure (Prinsloo, 1996). Similarly, the results of the factor analysis corroborate findings indicating that the items are measuring a single common underlying construct (Prinsloo, 1996).
According to Prinsloo (1996), the reliability of this instrument is determined with the aid of the SPSSXprogramme in conjunction with Cronbach coefficient-alpha. The calculated coefficient-alpha is 0.82, which suggests a strong positive item-homogeneity in this measuring instrument. This signifies as an indication of test reliability. PROCEDURE FOLLOWED TO GATHER DATA This section describes how the researcher gathered the relevant data for this study. Although known to the population, the researcher relied on the human resources manager to obtain access to the sample. The human resources manager has direct contact with the population and therefore had more influence in terms of creating a sense of urgency to complete the questionnaires. As the sample operates in an electronic-driven environment it was decided to send the questionnaires electronically. The human resources department utilises an electronic survey tool, referred to as Perception Question Mark (PQM), which the researcher used as the medium to distribute the questionnaires. The individual responsible for the PQM tool assisted with setting up the questionnaire in a format that would ensure that it was user-friendly and easy to navigate. The cover letter was incorporated into the electronic questionnaire as the opening page. After setting up the questionnaire, the link was sent to the human resources manager who then sent the link to all employees in their respective units from post grade nine to fifteen. Respondents were given five days within which they could complete the questionnaire. The cover letter (see Appendix 1) highlighted the purpose of the study, anonymity of the respondents and confidentiality. The letter also emphasised the fact that the study would benefit the employees of the business unit. The key benefit of the electronic survey was that the researcher could track on a daily basis the number of people that responded. After five days had lapsed, not many questionnaires were completed and the researcher e-mailed potential respondents encouraging them to complete the questionnaire. The human resources manager sent the email and a further extension of five days was given. Within three days of sending the mail a total of 184 responses were received. After the ten-day period had lapsed, the survey was closed and respondents were thanked for their participation.
STATISTICAL TECHNIQUES
DATA ANALYSIS The statistical programme used for the analyses and presentation of data in this research is the Statistical Package for the Social Sciences (SPSS) version 12. The descriptive statistics utilized are based on frequency tables and graphical illustrations to provide information on key demographic variables in this study. This is followed with presentation of the inferential statistics based on examination of each hypothesis formulated for the research. The upper level of statistical significance for null hypothesis testing was set at 5%. All statistical test results were computed at the 2-tailed level of significance in accordance with the non-directional hypotheses presented (Sekaran, 2001).
STATISTICAL ANALYSES According to Leary (2004, p. 37), statistical analyses are used to describe an account for the observed variability in the behavioural data. This involves the process of analysing the data that has been collected. Thus the purpose of statistics is to summarise and answer questions about the behavioural variability that was obtained in the research. Statistical analyses involve both descriptive and inferential statistics. DESCRIPTIVE STATISTICS Descriptive statistics are used to describe and summarise the behaviour of the respondents in a study. They refer to the ways in which a large number of scores or observations are reduced to interpretable numbers such as averages and percentages. The descriptive statistics utilized in this study are based on frequency tables and graphical illustrations to provide information on key demographic variables, as well as the means and standard deviations for the responses on the Work Motivation and Satisfaction Questionnaire. The mean is a measure of central tendency, and provides an arithmetic average for the distribution of scores. The standard deviation, on the other hand, is a measure of variability which is calculated as the square root of the variance (Leary, 2004). INFERENTIAL STATISTICS Inferential statistics are used to draw conclusions about the reliability and generalisability of the findings. According to Leary (2004, p. 38), inferential statistics are used to assist in answering questions such How likely is it that my findings are due to random extraneous factors rather than to the variables of central interest in the study? How representative are the findings of the larger population from which the sample was taken? In order to test the research hypotheses, the inferential tests used include the Pearson Product-Moment Correlation Coefficient, Multiple Regression Analysis and Analysis of Variance (ANOVA). THE PEARSON PRODUCT-MOMENT CORRELATION COEFFICIENT The Pearson Product-Moment Correlation Coefficient is a statistic that indicates the degree to which two variables are related to one another. The sign of a correlation coefficient (+ or -) indicates the direction of the relationship between 1.00 and +1.00. Variables may be positively or negatively correlated. A positive correlation indicates a direct, positive relationship between two variables. A negative correlation, on the other hand, indicates an inverse, negative relationship between two variables (Leary, 2004). For the purposes of this study, the Pearson Product-Moment Correlation Coefficient was used to determine: The relationship between the different dimensions of the work motivation and satisfaction questionnaire. The relationship between rewards, recognition and work satisfaction and motivation.
MULTIPLE REGRESSION ANALYSIS Multiple Regression Analysis is identified through three distinct types of multiple regression procedures, namely, standard, stepwise, and hierarchical multiple regression. The three types of analyses differ in the manner in which the predictor variables may be entered, if all at once, it is standard; if based on the strength of their ability to predict the criterion variable, it is stepwise; or if in an order predetermined by the researcher then it would be considered hierarchical (Leary, 2004). For the purposes of this study, Stepwise regression was used to ascertain the extent to which all the dimensions of work satisfaction and motivation explain the variance in work satisfaction and motivation. ANALYSIS OF VARIANCE (ANOVA) Analysis of Variance (ANOVA) is a statistical procedure used to analyse data from designs that involve more than two conditions. According to Leary (2004), ANOVA analyses the differences between all condition means in an experiment simultaneously. For the purposes of this study, ANOVA was used to determine whether there are differences in work motivation and satisfaction based on the biographical characteristics of the sample. SCHEFFES MULTIPLE COMPARISON PROCEDURE Hinkle, Wiersna and Jurs (1982) indicated that when a statistically significant F ratio is obtained in an ANOVA, and the null hypotheses is rejected, it can be concluded that at least one of the condition means differs from the others. The Scheffe multiple comparison procedure is necessary to determine which pairs of means differ. The procedure involves computing an F value for each combination of two means. The chapter provided a summary of the sample, the measuring instrument used, the procedure followed to gather the data, the hypotheses as well as the statistical techniques used to analyse the data. The following chapter will detail the findings of the study, by reporting on the results of the empirical analysis.
PRESENTATION OF RESULTS
INTRODUCTION In this section the results of the empirical analysis are reported and presented. The presentation proceeds with an analysis of the descriptive statistics on the variables under consideration. The statistical programme used for the analyses and presentation of data in this research is the Statistical Package for the Social Sciences (SPSS) version 12. To facilitate ease in conducting the empirical analyses, the results of the descriptive analyses are presented first, followed by the inferential statistical analysis.
The upper level of statistical significance for null hypothesis testing was set at 5%. All statistical test results were computed at the 2-tailed level of significance in accordance with the non-directional hypotheses presented (Sekaran, 2001). RESULTS OF THE WORK MOTIVATION AND SATISFACTION QUESTIONNAIRE Descriptive statistics in the form of arithmetic means and standard deviations for the respondents were computed for the various dimensions assessed by the Work Motivation and Satisfaction Questionnaire. The means and standard deviations of the Work Motivation and Satisfaction Questionnaire are presented in Table Descriptive statistics for the dimensions of work motivation and satisfaction Variable Work Content Payment Promotion Recognition Working Conditions Benefits Personal Leader/Supervisor General Mean 1.53 2.57 2.10 2.88 1.34 1.86 1.23 1.42 1.32 Standard Deviation .69 .65 .62 .62 .72 .63 .64 .69 .54
* Where high variables correspond to low motivation With respect to the dimensions of work motivation assessed by the work motivation and satisfaction questionnaire, Table 4.1 indicates that the means for the work content, payment, promotion, recognition, working conditions, benefits, personal, leader/supervisor and general ranged from a low of 1.32 to a high of 2.88. It therefore appears that staff in the sample are relatively motivated, however, the mean values for payment, promotion, recognition and benefits were the lowest. These mean values indicate the areas that employees were most likely to be demotivated and dissatisfied.
thus shows that staff in the sample is most likely to be motivated due to their working conditions, personal and general dimensions. They are least motivated by the payment they receive and recognition as determined by the Work Motivation and Satisfaction Questionnaire.
INFERENTIAL STATISTICS
In this section the results of the inferential statistical techniques used in the study are presented. In order to test the research hypotheses, the Pearson Product Moment Correlation Coefficient was calculated as well as Multiple Regression and Analyses of Variance (ANOVA). Based on the results obtained from the research, conclusions are drawn with respect to each hypothesis generated for the research undertaken in the insurance organization at which the research was conducted. CORRELATION The Pearsons Product Moment Correlation Coefficient was computed for the purposes of determining the following relationships: The relationship between the different dimensions of the Work Motivation and Satisfaction Questionnaire. The relationship between rewards, recognition and work satisfaction and motivation. In order to delineate the relationship between the various facets of the work environment on work motivation and satisfaction, the sub-dimensions of the Work Motivation and Satisfaction questionnaire were correlated and are presented in Table 4.2 Dimension Correlations with work motivation and satisfaction Work Motivation and Satisfaction Variable Work Content Payment Promotion Recognition Working Conditions Benefits Personal Leader/Supervisor Pearson correlation 0.66** 0.86** 0.74** 0.92** 0.61** 0.65** 0.37 * 0.32 * Significance (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.023
General
0.34 *
0.005
* Correlation is significant at the 0.05 level (2-tailed) ** Correlation is significant at the 0.01 level (2-tailed) The results indicate that work content correlates significantly with work motivation and satisfaction (r = 0.66, p < 0.01). This supports the hypothesis that there is a significant relationship between work content and work motivation and satisfaction. A significant correlation is shown to exist between payment and work motivation and satisfaction (r = 0.86, p < 0.01), supporting the hypothesis that there is a significant relationship between payment and work motivation and satisfaction. There was also a significant relationship between promotion and work motivation and satisfaction (r = 0.74, p < 0.01). Hence, this supports the hypothesis that promotion opportunities are significantly related to work motivation and satisfaction. A significant correlation also exists between recognition and work motivation and satisfaction (r = 0.92, p < 0.01), supporting that recognition is significant in explaining the variance in work motivation and satisfaction. There was a significant relationship between working conditions and work motivation and satisfaction (r = 0.61, p < 0.01). Hence, the hypothesis that there is a relationship between working conditions and work motivation and satisfaction is supported. There was a significant relationship between benefits and work motivation and satisfaction (r = 0.65, p < 0.01), supporting the hypothesis that benefits are significant in explaining work motivation and satisfaction. A significant correlation was found to exist between the dimension of personal and work motivation and satisfaction (r = 0.37, p < 0,05). There was a significant relationship between leader/supervisor and work motivation and satisfaction (r = 0.32, p < 0.05) as well as between general and work motivation and satisfaction (r = 0.34, p < 0.05). The results indicate that for the intercorrelation matrix exploring the relationship between the dimensions of the Work Satisfaction and Motivation Questionnaire, that all the coefficients were positive. The results depicted in Table 4.2 indicate that there is a significant statistical relationship between the dimensions of work motivation and satisfaction. Accordingly, the null hypothesis is rejected.
The relationship between rewards, recognition and work motivation and satisfaction Work satisfaction and Motivation Rewards Recognition ** Correlation is significant at the 0.01 level (2-tailed) There is a statistically significant, direct and positive relationship between rewards and work satisfaction and motivation (r = 0.86, p < 0.01). Hence, if rewards offered to employees were to be altered, then there would be a corresponding change in work motivation and satisfaction. The coefficient of determination, (R - squared = 0 .74), implies that 74% of the variation in work motivation and satisfaction of the sample can be attributed to rewards received, which implies that the remaining 26% can be explained by other factors not considered. The results indicate that there is a statistically significant, direct and positive relationship between recognition and work satisfaction and motivation (r = 0.92, p < 0.01). This implies that if the recognition accorded to employees were to change, there would be a change in work motivation and satisfaction. The coefficient of determination, (R - squared = 0.60), implies that 60% of the variation in work motivation and satisfaction of the sample can be attributed to recognition, while the remaining 40% can be attributed to other variables which were not explored in the current research. MULTIPLE REGRESSION ANALYSIS On the basis of the results obtained indicating a direct positive relationship between the dimensions of work satisfaction and motivation, all the dimensions of the instrument were assessed using multiple regression analysis to ascertain the extent to which they explain the variance in work satisfaction and motivation. Stepwise Regression: Dependent variable (work motivation and satisfaction) Multiple Regression R squared (R2) R squared (Adjusted R2) Standard error Variables in the equation Work Content B -2.9645 3.43232 SE for B 1.1857 0.93942 0.86 ** 0.92 **
Payment Promotion Recognition Working conditions Benefits Personal Leader / supervisor General
The results shown in Table 4.4 indicate a relatively high percentage of the variation in work motivation and satisfaction can be explained by the variables entered in the equation (R - squared = 84.27%; Rsquared (adjusted) = 71.4%). Thus 71% of the variance in work motivation and satisfaction can be explained by work content, payment, promotion, recognition, working conditions, benefits, personal, leader/supervisor and general dimensions. The F-ratio of 16.59 (p < 0.01) indicates the regression of work motivation and satisfaction on the dimensions assessed, expressed through the adjusted squared multiple (R - squared (adj.) = 71.40%) is statistically significant. Hence the null hypothesis is rejected. These variables account for 71% of the variance in work motivation and satisfaction. This finding suggests that other unexplored variables could account for the other variance in work motivation and satisfaction. ANALYSIS OF VARIANCE (ANOVA) An investigation was undertaken to determine whether there are differences in work motivation and satisfaction based on the biographical characteristics of the sample. ANOVA: Differences in rewards and recognition and work motivation and satisfaction based on gender Gender Male Mean S N F p Scheffes Test
1.56
.63
73
3.14
.000**
Where higher scores are indicative of lower rewards and recognition, work satisfaction and motivation. ** p < 0.01
ANOVA: Differences in Mean rewards and recognition and work motivation and satisfaction based on marital status Marital Status Single 1.87
Scheffes Test
.58
28
3.55
.000**
Those who are married differ significantly from those in the other groups
130 25 1
Where higher scores are indicative of lower rewards and recognition, work satisfaction and motivation. ** p < 0.01 There is a significant mean difference in the rewards and recognition (work motivation and satisfaction) levels of employees based on their marital status. Married employees reported the lowest rewards and recognition (work motivation and satisfaction), followed by single employees. Those who are divorced indicated the greatest satisfaction and motivation based on the rewards and recognition they receive. The results need to be interpreted with caution due to the fact that most respondents were married, with under-representation from the other categories of employees.
ANOVA: Differences in Mean rewards and recognition and work motivation and satisfaction based on age Age < 30 years 1.71
Scheffes Test
.56
19
2.48
.000**
differed significantly from the other groups 31-40 years 1.69 .35 91 41-50 years* 1.94 .92 61 51 years + 1.63 .48 12 Where higher scores are indicative of lower rewards and recognition, work satisfaction and motivation. * p < 0.01 There is a significant mean difference in the rewards and recognition (work motivation and satisfaction) levels of employees in the age group 41-50 years and employees in other age groups. Employees in the age group 41-50 years reported lower rewards and recognition (lower levels of work motivation and satisfaction) (Mean = 1.94, s = .92) than employees in the age groups up to 30 years (Mean = 1.71, s = .56), 31-40 years (Mean = 1.69, s = .35), and older than 50 years of age (Mean = 1.63, s = .48). ANOVA: Differences in Mean rewards and recognition and work motivation and satisfaction based on race Race English* 2.18* S N F p Scheffes Test
.27
3.92
.000**
Coloured 1.74 .43 28 Asian 1.68 .32 3 Black 1.54 .45 145 Where higher scores are indicative of lower rewards and recognition, work satisfaction and motivation. * p < 0.01 There is a significant mean difference in the rewards and recognition (motivation and satisfaction) levels of employees based on their race. English employees reported the lowest levels of motivation and satisfaction (Mean = 2.18, s = .27) than Black employees (Mean = 1.54, s = .45), Asian employees (Mean = 1.68, s = .32) and coloured employees (Mean = 1.74, s = .43). In interpreting the data though, cognisance needs to be taken of under-representation of employees from the groups: English, Asian and Coloured, making any generalisations tentative.
ANOVA: Differences in rewards and recognition and work motivation and satisfaction based on job Mean S N F P Scheffes Test
classification Job Classification Specialist 1.73 .69 43 4.10 .000** Clerical staff differ from the other groups.
1.82 2.03*
.67 .53
50 15
ANOVA: Differences in Mean rewards and recognition and work motivation and satisfaction based on educational qualifications Educational level Matric* 2.1
Scheffes Test
.60
11
3.95
.000** Respondents with educational levels up to matric differ significantly from the remaining groups
Diploma 1.67 .47 68 Degree 1.73 .57 28 Masters 1.67 .69 2 Other 1.62 .34 Where higher scores are indicative of lower rewards and recognition, work satisfaction and motivation.
* p < 0.01 There is a significant mean difference in the rewards and recognition (work motivation and satisfaction) experienced by employees with lower levels of education. In this instance, those with education levels up to matric indicated the least work motivation and satisfaction relative to the other education levels. Employees with the educational level of matric reported the lowest levels of work motivation and satisfaction (Mean = 2.1, s = .60) than employees with diplomas (1.67, s = .47), degrees (Mean = 1.73, s = .57), Masters degrees (Mean = 1.67, s = .69) and other qualifications (Mean 1.62, s = .34).
ANOVA: Differences in Mean rewards and recognition and work motivation and
Scheffes Test
.56
56
3.95
.000**
PG 10 1.73 .37 58 PG 11* 2.27 .59 18 PG 12 1.74 .34 37 PG 13 1.69 .48 8 PG 14 1.68 .59 3 PG 15 1.62 .36 3 Where higher scores are indicative of lower rewards and recognition, work satisfaction and motivation.
* p < 0.01 There is a significant mean difference in the rewards and recognition (work motivation and satisfaction) experienced by employees based on their job grade. Employees in PG 11 reported the lowest levels of reward and recognition (work motivation and satisfaction) (Mean = 2.27, s = .59) than employees in the other job grades. Employees in PG 15 evidenced the highest work motivation and satisfaction relative to the rewards and recognition they received (Mean = 1.62, s = .36).
ANOVA: Differences in Mean rewards and recognition and work motivation and satisfaction based on tenure Tenure < 1 year 1.79
Scheffes Test
.56
3.55
.000**
Those employed between 1 and 5 years differ significantly from those in the other group
1-5 years* 6-10 years 11-15 years 16-20 years > 20 years
26 15 39 54 46
Where higher scores are indicative of lower rewards and recognition, work satisfaction and motivation. ** p < 0.01 There is a significant mean difference in the rewards and recognition (work motivation and satisfaction) levels of employees with 1-5 years of experience (Mean = 2.12, s = .24) and those with fewer or more years service. Those with 15 years service reported the lowest rewards and recognition (work motivation and satisfaction) compared to the other groups. Those with 16-20 years service in the organization indicated the highest rewards and recognition (work satisfaction and motivation) compared to all the other categories of employees. The Scheffes Test reflected the following findings in terms of rewards and recognition levels based on the work motivation and satisfaction questionnaire and the biographical variables of the sample: a) Female employees indicated they were least motivated and satisfied by rewards and recognition. b) African respondents indicated lower levels of work motivation and satisfaction relative to the other race groups based on rewards and recognition. c) Respondents in the age category 41-50 years evidenced the lowest levels of work motivation and satisfaction in relation to their rewards and recognition levels. d) Respondents with educational levels up to matric were the least motivated and satisfied due to their rewards and recognition. e) Those employees who had been working for the organization for between 1 and 5 years were the least motivated and satisfied on the basis of rewards and recognition. f) Xhosa speaking employees reported the lowest levels of work motivation and satisfaction based on rewards and recognition. g) Post grade 11 employees experienced lower rewards and recognition relative to the other groups. h) Married employees reported the lowest motivation and satisfaction based on rewards and recognition. i) Clerical grade employees indicated the lowest levels of work motivation and satisfaction based on rewards and recognition. Hence, the null hypothesis show that there are no statistically significant differences in rewards and recognition (work motivation and satisfaction) of employees based on their biographical variables, is rejected.
DESCRIPTIVE STATISTICS
Descriptive statistics provide information on the key demographic variables in the study and are presented below. o The final sample consisted of 184 employees, of whom 40% (n = 73) were males and 60% (n = 111) were females.
o One percent 1% of the respondents were under 20 years; 10% were between 21 and 30 years; 49% ranged between 31 and 40 years; 33% between 41 and 50 years; 6% between 51 and 60 years and 1% were 60 years and older.
o Twenty four percent indicated English and 73% Afrikaans as the preferred language. Two percent indicated that their preferred language was respectively Sotho and Dutch.
o Fifteen percent were single, 71% married, 14% divorced and 0.5% widowed. Forty six percent of the sample had a matric qualification, 54% had a higher educational qualification (either diploma, degree, masters, or other qualification).
o Thirty percent of the sample was on a job grade 9, 32% on a job grade 10, 10% on a job grade 11, 20% on job grade 12, 4% on job grade 13, 2% on job grade 14, and 2% on job grade 15. One respondent did not indicate his/her job grade.
o Sixty-nine percent of the sample was in a specialist job classification, 23% in a line manager position, 5% in administration or clerical and 3% were unsure of their job classification. One respondent did not indicate his/her job classification.
o Two percent of the sample had less than one year service, 14% had between 1 to 5 years service, 8% between 6 and 10 years, 21% had between 11 and 15 years, 29% had 16 to 19 years service and 25% had longer than 21years of service. One respondent did not indicate his/her years of service.
INFERENTIAL STATISTICS
DISCUSSION OF FINDINGS General findings on all nine sub-dimensions of the Questionnaire Table 4.2 in Chapter 4 indicates that there is a significant relationship between all nine of the subdimensions of the work motivation and satisfaction questionnaire; therefore the null hypothesis is rejected. The nine dimensions include, work content, payment, promotion, recognition, working conditions, benefits, personal, leadership and general (level of satisfaction with the organization). Hence, the results in table 4.2 indicate that there is a significant statistical relationship between all of the nine dimensions of the work motivation and satisfaction questionnaire, and that all the dimensions have a positive influence on motivation and satisfaction. These results are supported by the survey findings of Mason (2001) who conducted an employee retention survey in the Finance, Human Resources, Sales and Marketing, Operations and IT fields in over 50 companies. The survey found that what excites most people about their work is the opportunity to do challenging work, second was the opportunity to develop work-related skills (both correlates with work content), thirdly management behaviour (correlates with leadership/supervision), in fourth place a positive work environment (correlates with working conditions), followed by recognition in sixth place and pay, compensation and benefits were ranked seven. Masons (2001) survey confirms the there are a host of factors that contribute to employee motivation and satisfaction, but that some factors are more critical in their motivational influence than others. Table 4.1, indicates that although all nine dimensions have a positive impact, that staff in the sample were most motivated due to their working conditions, personal and general dimensions and that they are least motivated by the payment, promotion, recognition and benefits they receive. Research findings by Mercer (2002) further corroborate this. Through its 2002 People at Work Survey, Mercer concluded that only 48% of respondents believed that they were paid fairly, 28% were motivated by their organizations incentive compensation plan and only 29% said that when they do a good job, their performance gets rewarded. In the same study conducted by Mercer (2002), it was found
that among employees that indicated that their performance is rewarded when they do a good job, 90% are satisfied with their jobs; 88% are satisfied with their organizations and 12% were seriously considering leaving (Compensation & Benefits Report, 2003). Similarly, research conducted amongst primary school educators, also supports the findings of this study, and concurs with previous research which reveals the needs least satisfied were remuneration, promotion, professional status and appreciation of work well done Schulze & Steyn (2003), The present study confirms that there are a number of factors that have an impact on motivation and satisfaction, but that some of the factors could play a more defined role in motivating employees. The relationship between rewards, recognition and work motivation and satisfaction The results in table 4.3 reflect that there is a statistically significant relationship between reward and recognition respectively, and motivation and satisfaction. The study revealed that if rewards or recognition offered to employees were to be altered, then there would be a corresponding change in work motivation and satisfaction. The results of this study also indicated that employees were less motivated by rewards and recognition than some of the other dimensions of the Work Satisfaction and Motivation Questionnaire. By implication, this means that if more focus is placed on rewards and recognition, it could have a resultant positive impact on motivation and thus result in higher levels of job performance. In support of this finding, a study involving 31500 working Canadians found that 40% of employees believed that they were offered meaningful incentives; 81% indicated that they did not receive any reward for a productivity increase; and 89% cited that their organizations would perform better if there were incentives for quality and productivity (Informal Recognition, n.d.). The Watson Wyatt survey examined the various elements of the total rewards package to determine which are considered effective by organizations in achieving business objectives. They found that base salary and short-term incentives were effective levers in attracting and retaining top performers (listed by 82% and 74% of respondents respectively). Short-term incentives were also considered by 78% of respondents as an effective mechanism for aligning behaviour with business goals and aligning behaviour with desired culture, as indicated by 69% respondents (Canadian employers moving to total rewards approach to compensation, n.d.). MacDonald (as cited in Greenfield, 1993) conducted research in the top 100 companies in South Africa and found that 96% of respondents indicated that money was the most important motivating factor. In another study of 65 potential incentives, Nelson (1995) report that four out of the top five incentives ranked by employees as most motivating were incentives initiated by their managers. These incentives were based on performance and required little or no money and were rated as follows. Manager personally congratulates employees who do a good job; manager writes personal notes for good performance; manager publicly recognises employees for good performance; and manager holds morale-building meetings to celebrate successes.
Another survey conducted by Mercer (2002), which corroborates these finding were conducted amongst American workers of the Society of Incentive Travel Executives Foundation in 2002, found that 63% of respondents ranked a pat on the back as a meaningful incentive (Compensation & Benefits Report, 2003). Howard (1997) states that employees should be considered as an asset instead of as a cost in need of attention and value enhancement. He quotes a study at Wichita University of 1500 employees, where it was found that the most powerful motivator was having the boss personally congratulate individuals on a job well done. Despite this finding, only 42% of the studys respondents said that their organization recognised them in this way. Reeve and Deci (1996) conducted a study on the factors that have an impact on intrinsic motivation and support the finding that recognition has a positive impact on motivation. Their findings suggest that getting positive performance feedback in the presence of another doing the same activity is more facilitative of intrinsic motivation than winning a competition or reward against another. Vansteenkiste and Deci (2003) explored the effects of intrinsic motivation and ego-involved persistence of winning versus losing a competitively contingent reward, and for losers, the additional effects of receiving positive performance feedback. Participants who lost the competition, but received positive performance feedback were significantly more intrinsically motivated than those who did not get any feedback. The findings of the above study clearly indicate the need that people have for recognition, which includes acknowledgement for accomplishments, as well as constructive performance feedback. Sergiovanni (1967) found that research conducted amongst teachers alluded that teachers obtain their greatest motivation through intrinsic factors. The greatest motivation factor for teachers was to reach and affect the lives of their students and secondly to receive recognition for a job well done. Benefits, on the other hand, could be considered to form part of rewards and respondents that participated in the present study indicated a fairly high level of satisfaction with the benefits (pension, medical scheme and leave) offered. Singh (2001) who conducted research at a South English Technical College found contrary to the findings of the present study, conflicting findings in his study. His findings indicated that incentives currently received by staff were viewed to be pathetic and not worth mentioning. Although the incentives currently offered by the Department of Education include a subsidized medical aid scheme, annual service bonus, salary increases, home owners allowance, pension fund and leave gratuity, these were regarded as normal benefits associated with their contractual agreement in accepting the job. The respondents in this study viewed themselves as highly competent individuals capable of exceptional levels of performance, but felt that the lack of attractive incentives curbed their potential to excel and thereby crippling their careers (Singh, 2001). The results of the present study did not indicate that there is any significant difference between rewards and recognition and the impact that it has on motivation and satisfaction. Therefore, the present study confirms that a total rewards management programme, which includes payment or compensation, benefits and informal recognition is required to optimise the motivation and satisfaction levels of staff.
As indicated by the various studies, this business unit would benefit from implementing a total rewards management programme that is supported by a sound performance management process. Differences in rewards and recognition and work motivation and satisfaction based on gender As discussed in table 4.5, the study indicates that females reported lower levels of work satisfaction and motivation (Mean = 1.78, s = 49) than males (Mean = 1.56, s = 63) on the basis of rewards and recognition than their male counterparts. According to a study conducted by Kalantari (1995), this result could be attributed to a number of factors. His research found that there is substantial evidence to indicate that women have not been compensated fairly for their work when compared to men in similar positions. He found that traditionally women in the United States have played a different role to men in the labour force. Women have usually worked in low paying occupations with limited hours of work, and their income supplemented their husbands earnings. However, a new work environment has evolved for women, altering their attitude towards wages, with the result that one of the most important grievances of women has been the wage gap between themselves and their male counterparts. He found that there is substantial evidence to suggest that women have been underpaid compared to men, even for performing similar jobs (Kalantari, 1995). In support of this finding, research conducted amongst teachers in South Africa by Schulze and Steyn (2003), found that female educators needs that were not satisfied included salary, biased evaluation of merit and for promotion, participation in decision-making and a fair workload. Factors that powerfully motivate the female educator were: relationships with learners, pride in their work, self-esteem and love of their particular subject. Differences in rewards and recognition and work motivation and satisfaction based on age and marital status
The study found that that employees in the age group 41-50 years reported lower levels of rewards and recognition, motivation and satisfaction, than employees in the age groups up to 30 years and those older than 50 years of age. It also revealed that married employees reported the lowest levels of motivation and satisfaction. According to Halls Age Theory of motivation, recognition for employees between forty and fifty-five would be to be left alone to do their jobs in the best possible way and to be self-directed. Rapidly changing work environments, and their resistance to change may thus account for the low level of motivation in the age group between 40 51 years (La Motta, 1995).
A study conducted by Schulze and Steyn (2003), which supports the findings of this study as well as Halls theory on motivation, found that the years between 40 and 47 were a time of disillusionment for many educators due to unfulfilled ambitions. From 47 to retirement it was found that educators generally resisted change and were fixed in values and purpose. The findings of Schulze and Steyn (2003) indicate that there is a correlation between age and marriage and the motivation levels of respondents. They found that age had a major impact on the motivation levels of educators. For example, their study reported that between the ages of 20-27 years educators were committed to marriage, children or job mobility and were trying to build a stable future. Between 2833 years it was found that educators deal with career issues, marriage and parenting. These factors influenced their motivation levels. Between 34-39 years educators questioned their accomplishment or lack thereof and this might result in some stress, which also impacts on motivation. Another survey conducted in 2001 in the United States by research house Catalyst, shows that people born between 1964 and 1975 (26 37 years), the age group for which careers are expected to peak, are rejecting the stressors associated with high-powered jobs in favour of personal and family goals. This leaves organizations with the dilemma of coming up with unique ways in which to get people to perform at exceptional levels (Motivation, 2011). Schulze and Steyn (2003) support this and found that in confirmation of previous research conducted (NASSP Practitioner), the youngest educators may be at a stage where marriage and children are priorities that influence their motivation. A landmark federal Work-Life Conflict Study involving 31500 working Canadians found that frustration and working conditions are the main reasons cited by those thinking of leaving their jobs. Approximately 60% intended to leave because of working conditions, 55% cited lack of recognition and appreciation, and 40% said that they wanted more time for family and personal activities (Informal Recognition, n.d.). The business unit is thus challenged to present meaningful recognition to employees in different age categories. There is also indication that recognition has to incorporate work-life balance factors for employees who may struggle to balance work and personal goals. Differences in rewards and recognition and work motivation and satisfaction based on tenure
The study found that employees who had been working for the organization for between 1 and 5 years were the least motivated and satisfied on the basis of rewards and recognition. Those with 16-20 years service in the organization indicated the highest rewards and recognition compared to all the other categories of employees. Schulze and Steyns (2003) research amongst educators found that the more experienced the educator, as determined by length of service, the more influenced they were by the motivational factors
considered in the study, and therefore tended to be more easily motivated. Whereas for the group of educators with 6-10 years experience, only two of the factors were found to be most motivational. This study again supports the literature in that a one size fits all approach to rewards and recognition is not acceptable or relevant in most organizations today. The challenge for the business unit is to make an attempt to determine the specific needs of employees with shorter services histories. Given that the sample was drawn from a primarily specialist and professional category, employees with shorter service periods may be the ones that the business unit would want to retain. A retention strategy, as a factor of recognition could thus be the answer. South English legislation such as the Employment Equity Act (1998) could assist to strengthen the position of women and other minorities in the workplace. Human Resources have a strategic role to play in addressing the needs of diverse groups of people in the organization and should not wait on legislation to force them to implement strategy that would result in transformation. From this study, previous studies as well as literature on the subject, it is evident that properly packaged rewards and recognition can be considered as the conduit between motivation and job performance and improved productivity. Human Resources should thus assist in identifying the internal and external barriers that impede the offering of critical rewards and recognition. CONCLUSIONS AND RECOMMENDATIONS It is evident from the study that a variety of factors influence employee motivation and satisfaction. It was also significant to discover that there is a direct and positive relationship between rewards and recognition and job satisfaction and motivation. Hence, if rewards and recognition offered to employees were to be altered, then there would be a corresponding change in work motivation and satisfaction. The direct translation of this could be that the better the rewards and recognition, the higher the levels of motivation and satisfaction, and possibly therefore, the greater the levels of performance and productivity. The insurance sector is an increasingly competitive environment and therefore under constant pressure to manage its cost and to retain its employees. Under these circumstances organizations, such as the one at which the survey was conducted, could benefit by focussing on the factors that positively impact employee motivation and satisfaction. Most organizations in the industry have fairly competitive compensation programmes, but could benefit if they revisit their current offering and include more of the essential elements of what staff would like to receive, such as recognition and acknowledgement (La Motta, 1995). A total rewards management programme which structures the base pay and compensation package so that it attracts the right people to the organization, and once they are on board, the organization uses its rewards and recognition programmes to strategically channel their efforts in a way that drives organizational success, should be in place. Management should keep in mind that there should be a balance between the amounts of effort required and the size or significance of the reward. It may affect motivation negatively if employees are of the opinion that the relative value of the reward does not
warrant the amount of input they are required to give. Reward and recognition programmes must provide equal treatment for equal accomplishments (Stroh, 2001). The present study, as well as supporting studies found that females reported lower levels of motivation and satisfaction on the basis of reward and recognition. Even though supporting studies could not be found, the current study also revealed that Black staff experienced lower levels of rewards and recognition. It would thus bode well for the organization to review its current compensation strategy and to compare the salary structures of males versus females, as well as amongst the different races. In the event of major inconsistencies, especially for staff on similar post grade levels, the organization should make a concerted effort to re- assess and rectify this situation. In the event that the organization does not reassess this situation, it could have a resultant negative impact on job performance and productivity as well as on the retention of minorities. In accordance with Maslows hierarchy of needs, the lower level needs such as salary and benefits must first be met before the higher level needs, which impacts motivation can be satisfied. The findings alluded to the fact that employees with shorter service histories tended to be less motivated. Given the fact that the organization and thus the business unit is in a state of transformation, employees in this category may fall into the employment equity category. This places the business unit under pressure to retain these employees. The business unit could benefit from implementing a retention strategy, which in itself has a strong focus on recognition. Key personnel to whom such a strategy would apply would include, Blacks, women and the disabled. The present study did not focus on the disabled. The study indicated that there were differences in motivation levels on the basis of reward and recognition amongst differently aged respondents. Work-life issues for the age group between 25 and 40 years, which would include the married respondents who reported lower motivation levels, may be an area that organizations could investigate. Much has been written in the literature about work-life balance and therefore organizations should provide policies and strategies that make it easier for staff to balance the work and life issues. Doing this could positively impact motivation and therefore, result in an increase in job performance and productivity. Work-life issues to be considered by the organization would include flexible working hours, childcare facilities, employee assistance programmes etc. As mentioned previously, reward and recognition if improved, could have a positive effect on motivation and satisfaction. The literature indicates that recognition includes acknowledgement and performance feedback. Managers in the business unit could thus use the performance management system to provide regular acknowledgement and feedback.
The current performance management system of the business unit aligns the individuals key performance areas to the company and business unit strategy. Acknowledgement and performance feedback are thus provided based on performance standards that supports the organizational strategy. Dodd (2011) postulates that performance metrics, performance management as a business process and communication around total rewards management are the crucial underpinnings of an effective compensation system that truly differentiates and rewards performance. SUMMARY Organizations are recognising the significant opportunity to improve the return on their human resources investment by aligning reward plans with business strategy and enhancing the value delivered to employees. This process is crucial to business success, and the ability of the organization to attract and retain top performers and critical-skill employees, in an increasingly competitive environment. The research study has shown that managers can employ different strategies to motivate employees, but that it is important that managers keep in mind that different strategies would have a different motivational impact on different people. To get optimum results from a motivational strategy, the manager has to realise and understand trans-cultural issues, which requires recognition of each individuals unique cultural values, beliefs and practices. Important to consider is that different motivation strategies may affect an employee in different ways at different points in time because conditions, needs and personal objectives are not static but in constant state of flux. A motivation strategy may thus have the influence of increasing motivation in one way and diminishing it in others. To ensure the effectiveness of motivational strategies, it is important to consider the uniqueness of the circumstances and the diversity of the group involved. This will take considerable thought, patience, time and effort, but could have enormous benefits for the team, the business unit and the organization on the whole in terms of enhancing job performance and productivity. REFERENCE LIST Alderfer, C. (1972). Existence, relatedness, & growth. New York: Free Press. Armstrong, M. (1991). A Handbook of Personnel Management. ( 4th ed). London: Kogan Page Ltd. Armstrong, M., & Murlis, H. (1991). Reward management. London: Kogan Page Ltd. Arnold, H.J., & Feldman, D.C. (1986). Organizational behaviour. Singapore: McGraw-Hill International Editions. Barling, J., Fullagar, C., & Bluen, S. (1987). Behaviour in organizations: South English Perspectives. Johannesburg: Lexicon Press Ltd. Baron, R.A. (1983). Behaviour in organizations. New York: Allyn & Bacon, Inc.
Barton, G.M. (2002). Recognition at work. Scottsdale: WorldatWork. Beer, M., Spector, B., Lawrence, P.R., Mills, D.Q., & Walton, R.E. (1984). Managing human assets. New York: The Free Press. Berry, M. (2011). Construction firm adopts work-life policy ahead of EU laws. Personnel Today, 20(5), 30-38. Canadian employers moving to total rewards approach to compensation. (n.d). Retrieved February 27, 2011, from http:www.watsonwyatt.com Carnegie, D. (1987). Managing through people. New York: Dale Carnegie & Associates, INC. Croce, P. (2004). Inspire. Fortune small business, 14(6), 40-42. Curran, C.R. (2004). Rewards: Respect, responsibility, relationship and recognition. Nursing Economics, 22(2), 57-59. De Beer, M.J. (1987). 'n Ondersoek na die rol wat arbeidsomset in die bedryf speel met spesifieke verwysing na werkbevrediging en werksmotivering. Unpublished masters dissertation, University of the Free State, Bloemfontein. Deeprose, D. (1994). How to recognise and reward employees. New York: AMACOM. Dodd, G. (2011). Canadian employees moving towards total rewards approach to Compensation. Retrieved February 27, 2011, from htttp://www.watsonwyatt.com/canada Employment Equity Act (1998) Fitzgerald, J., & Thirsk, J. (2004). Communicating the importance of work-life balance. Retrieved April 15, 2011, from http:www.iveybusinessjournal.com. Flannery, T.P., Hofrichter, D.A., & Platten, P.E. (1996). People, performance & pay. New York: The Free Press. Flynn, G. (1998). Is your recognition program understood? Workforce, 77(7), 30-35.
Giles, T. (2004). Non-monetary rewards as part of the remuneration equation. New Zealand Management, 51(9), 46-48. Gofton, K. (1998). Performance indicators. Marketing, 34-36. Greenfield, F. (1993). Money: The motivator of the 90s. Pretoria: Southern Book Publishers (Pty) Ltd. Harris, H. (1996). Getting employees to fall in love with your company. New York: AMACOM. Hinkle, D.E., Wiersna,W., & Jurs, S.G. (1982). Basic behavioural statistics. USA: Houghton Mifflin Company. Hofer, C. (2011). Whole of Life Focus. Management, 18(3), 10-14. Howard, F. (1997). Keeping the best employees in the 90s. Journal of Property Management, 62(3), 20-25. Informal Recognition: The biggest part of an effective recognition strategy. (n.d). BC Public Service Agency. Retrieved April 05, 2011, from http://www.bcpublicservice.ca/awards Jeffries, R. (1997). Reaping the rewards of recognition. HR Focus, 74(1), 9-10. Kalantari, B. (1995). Dynamics of Job Evaluation and dilemma of wage disparity in the United States. Journal of Business Ethics, 14, 397-403. Kreitner, R., & Kinicki, A. (1992). Organizational Behaviour (2nd ed.). USA: Richard D. Irwin Inc. La Motta, T. (1995). Recognition: The quality way. New York: Quality Resources. Lawler, E.E. (1990). Strategic Pay. San Francisco: Jossey-Bass Inc. Lawler, E.E. (2003). Treat people right. San Francisco: Jossey-Bass Inc. Leary, M.R. (2004). Introduction to Behavioural Research Methods. USA: Pearson Education, Inc. Martocchio, J.J. (1998). Strategic Compensation. New Jersey: Prentice-Hall Inc.
Maslow, A. (1971). The farther reaches of human nature. New York: The Viking Press. Mason, L.J. (2001). Retaining Key Personnel. Plus: Top 10 Retention Tips. Stress Education Center. Retrieved February 27, 2011, from http:www.dstress.com Millar, M. (2011). Unions to call for UK workplace rights to mirror Europe model Personnel Today, 15(2), 15-18. Mol, A. (1992). Motivating subordinates. IPM Journal, 11 (2), 19-22. Motivation: What makes us tick? (2011). People Development. Retrieved February 27, 2011, from http:www.peopledevelopment.com Muchinsky, P.M. (1987). Psychology Applied to Work: An introduction to Industrial and Organizational Psychology. Chicago: Dorsey Press. Nel, P.S., Gerber, P.D., van Dyk, P.S., Haasbroek, G.D., Schultz, H.B., Sono, T., & Werner, A. (2001). Human Resources Management. Cape Town: Oxford University Press Nelson, B. (1994). 1001 ways to recognise employees. New York: Workman Publishing Company. Nelson, B. (1995). Motivating employees with informal awards. Management Accounting, 77(5), 30-35. Pay programs: Few employees see the pay-for-performance connection. (2003). Compensation and Benefits Report, 17(6), 18-26. Pollock, R. (1995). A brighter shade of team building. Triangle Business Journal, 16(3), 12. Prinsloo, I. (1996). Die effek van regstellende aksie op die werkmotiveering van 'n groep swart administratiewe werkers. Unpublished masters dissertation, University of the Orange Free State, Bloemfontein. Reeve, J., & Deci, E. (1996). Elements within the competitive situation that affect intrinsic motivation. Personality and Social Psychology Bulletin, 22, 24-33. Report on Salary Surveys. (2003). Institute of Management and Administration. Retrieved March 30, 2011, from http:www.management.com Robbins, S.P. (1993). Organizational behaviour. England: Prentice-Hall. Romano, L. (2003). Beyond reward: why cash is no longer enough. Rewards, 3(1), Sarvadi, P. (2011). The best way to reward employees. Solutions for growing Business. Retrieved February 27, 2011, from http:www.entrepreneur.com
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BIOGRAPHICAL QUESTIONNAIRE
The biographical questionnaire was a self-developed questionnaire that incorporated the following personal information of the respondents, gender, home language, marital status, age, race, job classification, education, qualifications, job grade and tenure.
BIOGRAPHICAL INFORMATION
1. Gender Male Female 2. Home / Preferred language English Afrikaans Xhosa Other 3. Marital Status Single Married Divorced Widowed 4. Age Under 20 years 21 30 years 31 40 years 41 50 years 51 60 years 61 years & older 5. Race English Asian Colored Black 6. Job Classification Specialist Line Manager
Clerical/ Administration If you are unsure which category, please state your occupation: 7. Educational Qualification < Std 8 Matric Diploma Degree Masters Other (Please specify) 8. Job Grade PG 9 PG 10 PG 11 PG 12 PG 13 PG 14 PG 15 9. How long have you been employed at this company? Less than 1 year 1 year 5 years 6 years 10 years 11 years 15 years 16 years 20 years 21 years or longer
Appendix 3
3. WORK CONTENT 3.1 I am interested in my work 3.2 My work consists of a variety of work 3.3 I receive training daily which teaches me something new 3.4 My work is easy 3.5 The amount of work is easy to handle 3.6 I control the amount of work I do myself 3.7 I am completely independent of others 3.8 I regard the content of my work as responsible 3.9 I know exactly what my mistakes are 3.10 I am allowed to decide on the methods for doing the work 3.11 I am proud to say what kind of work I do 3.12 My work is the way to future success 3.13 I will not be dismissed without good reason 3.14 I have the opportunity to take part when decisions are made 3.15 I feel that my work is of value in my department 3.16 There is not time for idleness 3.17 I have a certain degree of authority in my work 4. PAYMENT 4.1 My salary is satisfactory in relation to what I do 4.2 I earn the same as or more that other people in a similar job 4.3 The basis of payment, for example overtime payment, is reasonable 4.4 Salary increases are decided on a fair manner 5. PROMOTION 5.1 I will be promoted within the next two years 5.2 Everyone has an equal chance to be promoted 5.3 Staff are promoted in a fair and honest way 6. RECOGNITION 6.1 I am praised regularly for my work 6.2 I receive constructive criticism about my work 6.3 I get credit for what I do 6.4 I am told that I am making progress 7. WORKING CONDITIONS 7.1 My working hours are reasonable 7.2 I am never overworked 7.3 I get the opportunity to mix with my colleagues and to communicate on aspects of our work
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8. BENEFITS 8.1 My pensions benefits are good 8.2 My medical scheme is satisfactory 8.3 I never have problems with my arrangements for leave 9. PERSONAL 9.1 I am given work in accordance with my qualifications a skills 9.2 I work in the department of my choice 10. MY LEADER/ SUPERVISOR 10.1 Is satisfied easily 10.2 Will support me if there are problems 10.3 Can be convinced and persuaded 10.4 Is a warm-hearted person 11. GENERAL 11.1 I have considered changing jobs 1.2 I have been looking out for another job 11.3 I am thinking of resigning
THANK YOU Please check to make sure that you have not missed any questions.
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