| Title : | Impact of rewards on employee commitment in Nepalese insurance companies | | Material Type: | printed text | | Authors: | Krishna Pd Bhattarai, Author | | Publication Date: | 2018 | | Pagination: | 105p. | | Size: | GRP/Thesis | | Accompanying material: | 8/B | | Languages : | English | | Descriptors: | Commitment (Psychology)
Employee morale
| | Class number: | 301.1832 | | Abstract: | Reward is one of the important elements to motivate employees for contributing their best effort to generate innovation ideas. Thisefforts lead to better business functions and improvise company performance both financial and non-financially (Aktaret al., 2012). Reward systems can be defined as programs set up by a company to reward employee performance and motivate employees on individual and group levels (Cook and Hunsaker, 2001). In any organization, rewards play an important role in building and sustaining the commitment among employees that ensures a high standard of performance and workforce constancy (Wang, 2004).
Masoodul et al. (2013) explained that different people are motivated by different reward system because every single person has different perspective of working in the commercial world. Some employees are motivated by cash and some may be motivated by recognition. Reward program should be properly designed in the organization to reinforce positive behavior which leads to better performance (Torrington et al., 2008). Similarly, Ojokuku and Sajuyigbe (2009) found that financial incentives (pay satisfactions dimensions) have significant effect on employee performance. However, Perry et al. (2006) discovered that financial reward is the most motivating factor and financial incentives have a de-motivating effect among employees. The study on the relationship between reward system and employee performance concluded that better reward practices leads to increase in employee performance (Srivastava, 2001). Nelson (2004) noted that praise and recognition are the most efficient intrinsic reward that enhances employee performance. Likewise, Jenkins (1998) viewed intrinsic reward as a tool that motivates employees to perform as expected. Lawler & Cohen (1992) argued that the motivation of employees and their productivity can be enhanced through providing them effective recognition which ultimately results in improved performance of organizations. The entire success of an organization is based on how an organization keeps its employees motivated and in what way they evaluate the performance of employees for job compensation. According to Babakuset al. (2003), the perceptions that employees have with regards to their reward climate influences their attitude towards their employees.
The major purpose of study is to examine and assess the effect of reward practices on employee performance and commitment in Nepalese insurance companies. The specific objectives of the study were to determine the influence of compensation policy and empowerment on employee performance and commitment in Nepalese insurance companies, to assess the relationship between promotion practices and employee performance and commitment in Nepalese insurance companies, to examine the impact of bonuses and recognition on employee performance and commitment in Nepalese insurance companies and to determine the most determining factor that influence employee performance and commitment in Nepalese insurance companies.
The respondent of the study are the employees of the insurance companies. The opinions of 140 respondents were analyzed in order to know the perception of employee regarding reward practices and its impact on employee job performance and commitment in Nepalese insurance companies. The non- parametric test such as Kendall’s tau-b, step-wise regression was conducted to order to analyze the relationship between reward practices and its impact on employee job performance and commitment in Nepalese insurance companies. The descriptive research design has been conducted for fact finding of different variables. The study focuses on the primary data analysis where questionnaire was distributed to employees 16 insurance companies. Based on the population, 140 samples are undertaken for the studies.
The correlation matrix indicates that there is a positive relationship between reward practices and the employee commitment and performance. The result also shows that compensation, promotion, bonus, empowerment and recognition are positively related to employee job commitment and employee performance. The result of regression analysis shows that the beta coefficients for compensation are positive with employee job performance and commitment. It indicates that compensation has a positive impact on employee job performance and commitment. Likewise, the result also shows that the beta coefficients for recognition are positive with employee job performance and commitment. Similarly, the beta coefficients for empowerment are positive with employee job performance and commitment. It indicates that there is a positive impact of empowerment on employee job performance and commitment.
The result also reveals that the beta coefficients for promotion are positive with employee job performance and commitment. It reveals that better promotion practices have a positive impact on employee job performance and commitment. Likewise, the positive beta coefficients of bonus indicate that increased bonus has a positive impact on employee job performance and commitment
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Impact of rewards on employee commitment in Nepalese insurance companies [printed text] / Krishna Pd Bhattarai, Author . - 2018 . - 105p. ; GRP/Thesis + 8/B. Languages : English | Descriptors: | Commitment (Psychology)
Employee morale
| | Class number: | 301.1832 | | Abstract: | Reward is one of the important elements to motivate employees for contributing their best effort to generate innovation ideas. Thisefforts lead to better business functions and improvise company performance both financial and non-financially (Aktaret al., 2012). Reward systems can be defined as programs set up by a company to reward employee performance and motivate employees on individual and group levels (Cook and Hunsaker, 2001). In any organization, rewards play an important role in building and sustaining the commitment among employees that ensures a high standard of performance and workforce constancy (Wang, 2004).
Masoodul et al. (2013) explained that different people are motivated by different reward system because every single person has different perspective of working in the commercial world. Some employees are motivated by cash and some may be motivated by recognition. Reward program should be properly designed in the organization to reinforce positive behavior which leads to better performance (Torrington et al., 2008). Similarly, Ojokuku and Sajuyigbe (2009) found that financial incentives (pay satisfactions dimensions) have significant effect on employee performance. However, Perry et al. (2006) discovered that financial reward is the most motivating factor and financial incentives have a de-motivating effect among employees. The study on the relationship between reward system and employee performance concluded that better reward practices leads to increase in employee performance (Srivastava, 2001). Nelson (2004) noted that praise and recognition are the most efficient intrinsic reward that enhances employee performance. Likewise, Jenkins (1998) viewed intrinsic reward as a tool that motivates employees to perform as expected. Lawler & Cohen (1992) argued that the motivation of employees and their productivity can be enhanced through providing them effective recognition which ultimately results in improved performance of organizations. The entire success of an organization is based on how an organization keeps its employees motivated and in what way they evaluate the performance of employees for job compensation. According to Babakuset al. (2003), the perceptions that employees have with regards to their reward climate influences their attitude towards their employees.
The major purpose of study is to examine and assess the effect of reward practices on employee performance and commitment in Nepalese insurance companies. The specific objectives of the study were to determine the influence of compensation policy and empowerment on employee performance and commitment in Nepalese insurance companies, to assess the relationship between promotion practices and employee performance and commitment in Nepalese insurance companies, to examine the impact of bonuses and recognition on employee performance and commitment in Nepalese insurance companies and to determine the most determining factor that influence employee performance and commitment in Nepalese insurance companies.
The respondent of the study are the employees of the insurance companies. The opinions of 140 respondents were analyzed in order to know the perception of employee regarding reward practices and its impact on employee job performance and commitment in Nepalese insurance companies. The non- parametric test such as Kendall’s tau-b, step-wise regression was conducted to order to analyze the relationship between reward practices and its impact on employee job performance and commitment in Nepalese insurance companies. The descriptive research design has been conducted for fact finding of different variables. The study focuses on the primary data analysis where questionnaire was distributed to employees 16 insurance companies. Based on the population, 140 samples are undertaken for the studies.
The correlation matrix indicates that there is a positive relationship between reward practices and the employee commitment and performance. The result also shows that compensation, promotion, bonus, empowerment and recognition are positively related to employee job commitment and employee performance. The result of regression analysis shows that the beta coefficients for compensation are positive with employee job performance and commitment. It indicates that compensation has a positive impact on employee job performance and commitment. Likewise, the result also shows that the beta coefficients for recognition are positive with employee job performance and commitment. Similarly, the beta coefficients for empowerment are positive with employee job performance and commitment. It indicates that there is a positive impact of empowerment on employee job performance and commitment.
The result also reveals that the beta coefficients for promotion are positive with employee job performance and commitment. It reveals that better promotion practices have a positive impact on employee job performance and commitment. Likewise, the positive beta coefficients of bonus indicate that increased bonus has a positive impact on employee job performance and commitment
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