Behavioralmanagement theory: The effectiveness of extrinsic and extrinsicrewards in enhancing employees’ motivation.
Motivationis among the key factors that all people require in order toaccomplish their goals. This is because motivation serves as aguiding principle that helps people focus on their personal as wellas professional targets. Currently, employee motivation and theselection of the appropriate incentives are significant challengesthat the management of the modern organizations should overcome(Asim, 2013). This is because has become increasingly hard tomotivate employees using either of the intrinsic or extrinsicreinforcements individually. This implies that the topic on the useof both intrinsic and extrinsic reinforcements to motivate employeesand modify their behavior is worth the in-depth research. Inaddition, the presentation of the findings of such a criticalresearch in an academic conference can be of significance to manypeople, including the management teams of the contemporaryorganizations. The most appropriate conference to present thefindings of the research is the Workplace Planning and TalentStrategy Conference, which will be held on February 2014 in MarriottPlanno, Dallas (Human Capital Institute, 2014). The conference isappropriate for the presentation of the findings of the proposedstudy because it is organized to address issues related to the humanresource management, and the motivation of employees is one of them.
Thearticle “Relationship between rewards and employees’ motivationin the nonprofit organizations of Pakistan” was written by NadiaHafiza, Humera Jamsheed, and Syed Shah. The article was published in2011 in the Business Intelligence Journal. The objective the threeauthors were to examine the relationship that exists between theissue of rewards and the motivation of employees working withnon-profit making organizations. The authors intended to evaluate twomajor hypotheses in their research. First, they hypothesized thatintrinsic rewards and employee motivation are positively associated.Secondly, the authors hypothesized that extrinsic rewards andemployee motivation are positively associated. Although the authorsput two different hypotheses for the two types of reward, theyaddress them simultaneously with respect to the concept of employeemotivation.
Theauthors used a quantitative research design to evaluate therelationship between explicit and implicit rewards and employeemotivation. The research design for implicit rewards included threedimensions, namely autonomy and empowerment, appreciation andrecognition, and a challenging task. The design for explicit designincluded four dimensions, namely salary, fringe benefits, bonuses,and promotions. The authors used a convenience approach to recruitstudy samples of 125 participants. These participants includedemployees from three major non-profit organizations, namely SUNGI,World Vision, and PERRA. However, all employees qualifying the studymust have been working within Abbottabad at the time of sampling.Employee motivation was considered as the dependent variable whileboth intrinsic and extrinsic rewards were taken to be independentvariables.
Datawas collected using self-designed questionnaire. The questionnairecontained two parts, where the first section addressed thesocio-demographic aspect of the respondents, while the second sectionfocused on different variables that were employee motivation,intrinsic and extrinsic rewards. The questionnaire was pretested forreliability as well as the validity before it could be applied in theactual study. The responses of the respondents were measured usingthe Likert Scale, which is a five-point scale with values rangingfrom 1-5. The variables used to measure the effect of intrinsicrewards include employee empowerment, employee autonomy,appreciation, recognition, and challenging tasks. The extrinsicreward, on the other wad was measured using different parameters,which include the bonuses, pay, promotions, and fringe benefits. Outof 125 questionnaires distributed to the subjects, 107 were completedand handed in time.
Theauthors used multiple approaches to analyze the data, which resultedin different sets of results. Frequency distribution was used toanalyze the demographic aspects of the study participants, whichshows that the majority (80 %) of them were male. The relationshipbetween dependent and independent variables was determined usingcorrelation analysis. This showed that all parameters of extrinsicreward (including fringe benefits, pay, bonuses, and promotion) werepositively associated with employee motivation. However, the analysisindicated that some parameters of intrinsic reward (includingappreciation, empowerment, and challenging tasks were negativelyassociated with employee motivation, but the association wasinsignificant. Based on the correlation analysis alone, it would beconcluded that extrinsic rewards are important tools that employerscan use to modify employees’ behavior, while intrinsic ones willnot make any significant impact on employees’ behavior.
Thedescriptive analysis of the same data revealed that most of thesubject responses with regard to appreciation, benefits, fringebenefits, pay, and challenging tasks were neutral. Some respondentsconsidered pay, bonuses, empowerment, and promotion quite importantcompared to other parameters. This means that, even some of theimplicit parameters had some impact on the motivation of employees,in spite the fact that they were negatively associated with employeemotivation under the correlation analysis. Therefore, both thecorrelation and incremental analysis reject the hypothesis statingthat there is a positive association between employee motivation andintrinsic rewards. The same analyses confirm that second hypothesisthat employee motivation is positively associated with extrinsicrewards. These findings can be applied in the management of behaviorof employees in the non-profit organization since it is evident thatemployers can use extrinsic parameters to modify employee`s conduct.
Theauthors of the article are experts from the Department of ManagementScience in COMSATS Institute, which implies that they have sufficientknowledge and experience to address the topic of research. Inaddition, the sample size of 125 respondents and the response rate ofabout 85.6 were quite reasonable. In overall, the authors managed toaddress the topic of study in a though way. However, there are threemajor limitations that should be addressed in the future researchworks. First, the authors used a convenient method to recruit thestudy samples, which increased the risk of subjectivity. A futureresearch should use a random approach in sampling the studyparticipants since it is a reliable way of reducing bias. Secondly,the future research should explore the effect of rewards on themotivation of employees working in different industries andorganizations, instead of confining the study to employees working ina single sector.
Thearticle “Impact of motivation on employee performance with effectof training: Special to education sector of Pakistan” was writtenby Masood Asin. The article was published in 2013 in theInternational Journal of Scientific and Research Publications. Thepurpose of the study was to explore the effect of employees’motivation on their individual performance. The Asin hypothesizedthat there is a positive association between rewards and employeemotivation and performance. Asim also hypothesized that employeepromotion is a form of reward that motivates them to work harder andincrease their performance. The scope of the research was confined toemployee motivation in the education sector in Pakistan and the mainfocus was the use of promotion to reward employees. Asim intended toanswer the question of how motivation and reward can be used tomotivate employees with the intervention of training.
Thestudy population consisted of 150 employees from differentuniversities located in Wahcantt. Asim recruited both theadministration and the faculty members. The inclusion criterion wasthat the study participants should have been working in aninstitution of learning by the time the research was being conducted.Data was collected using questionnaires that administered to all 150study participants through hand delivery. The author divided thenumber of the study participants who could take part in the researchequally among five universities, where each institution wouldcontribute 30 employees in the study sample. The questionnaires werebased on Likert scale and pre-tested for the validity and reliabilityusing the Cronbach’s Alpha. The response rate for the research wasquite reasonable because about 118 out of 150 respondents completedand handed in their questionnaires in time. In this case, reward andpromotion were the independent variables, while employee motivationand performance were the dependent variables.
Dataanalysis was conducted with the help of SPSS software, which assistedthe author in conducting the descriptive, correlation, factors, andregression analysis of the data. The descriptive and correlationanalysis is the preliminary steps that Asin used to assess thepossibility of the relationship between reward and promotion withemployee motivation and performance. A regression analysis was usedafter confirming the existence the relationship with the objective ofdetermining how much of the dependent variable could be predicted bythe independent variables. In essence, the Asin managed to applydifferent analytical approaches to arrive at the results.
Theresults documented in the article indicate that there is a strongrelationship between reward, both extrinsic and extrinsic, andemployee motivation. Correlation analysis indicates that employeemotivation and reward are positively associated with a positive signindicating that they more in the same direction. This means that theissue of rewards or promotion of employees at places of work can beviewed as positive reinforcements that motivate them to repeat orcontinue with positive behavior that results in an increase in theirperformance. For example, employees who are rewarded or promoted forextemporary performance demonstrated commitment to their work, whichis among the factors that contribute towards a further increase inperformance. In addition, the regression analysis indicated that thep value was less than 0.0005, which indicates that rewards andemployee motivation are strongly and positively correlated.
However,the author identified that the correlation between the motivationsthat is derived from the promotion should be accompanied with sometraining. This is because employees require additional knowledge andskills to address issues at a higher position. It could be predictedthat promoting employees without providing them the training thatthey require to handle the most challenging tasks could resultsnegate the motivation factor associated with their promotion. Theresults presented by Asin indicate that employee training that iscoupled with appropriate training leads to further motivation and onthe job performance. The results of the study can be applied in themodern organization that intends to motivate their employees usingfinancial and nonfinancial (such as promotion) rewards.
Asimaddressed quite a significant topic that has a direct effect on themanagement of the modern organizations. The study made a significantcontribution towards the empirical evidence supporting the idea ofemployee motivation through explicit and implicit rewards. Thecapacity of the researcher to use alternative methods to analyze thedata is among the key strengths of the research that shows thereliability of its findings. However, the research has threelimitations that should be addressed in the futures studies. First,Asin used a subjective method of distributing the questionnaires tothe target study subjects. The future study should recruit the studysubjects and distribute the questionnaires randomly in order toenhance the objectivity of the research. Secondly, the study focusedon employee motivation in the education sector, which reduces thechances of generalizing the findings to employees working in othersectors, such as the banking.
Modernmanagement theory: The effectiveness of a contingency approach to themanagement and assignment of expatriates
Thecontemporary economic and business environment is characterized bythe internationalization of business, which makes the exercise of theassignment and the management of expatriates paramount. This hascreated a challenge for the human resource managers who are requiredto develop practices for the management of human talents. Thestrategic management plans adopted by the international organizationsshould be congruent with the overall organizational strategy, whilebalancing social, economic, legal and economic constraints of thehost countries (Caligiuri & Colakoglu, 2007). Therefore, it isimportant to conduct a research on the most approach that can resultin the successful management of expatriates.
Thecontingency approach is among the modern management theories that areapplicable in the process of the management of expatriates. Thecontingency approach holds that organizations should consider theirindividual needs when assigning and managing expatriates. Theapproval of this topic for further research and the subsequentpresentation of its findings in an academic conference willcontribute towards effective management of expatriates inorganizations that are continually internationalizing theiroperations. The findings of the proposed research should be presentedin the 2015 Expatriate Management Conference to be held in Madrid onApril 2015 (Mercer, LLC, 2014). The conference will provide anopportunity for a group of experts and practitioners to cometogether, which makes it an appropriate place to present the findingsof such a relevant topic of the contingency approach in themanagement of expatriate.
Thearticle “A strategic contingency approach to expatriate assignmentmanagement” was written by Paula Caligiuri and Saba Colakoglu. Itwas published in Human Resource Management Journal in 2007. Thepurpose and the goal of the article was to explore how the managementof expatriates differs in the three major management strategies,including the local, global, and centralized strategies. In essence,the authors’ intention was to determine whether the practice ofmanaging expatriates is contingent or dependent on the managementstrategies used by individual firms. The scope of the study waslimited to the three management strategies, including the centralstrategy, local strategy, and the global strategy. The authorshypothesized that the utilization of various categories of assignmentof expatriates would be consistent with the management strategies ofindividual international firms.
Theauthors used a cross-section design to conduct the research. Thestudy sample consisted of 35 representatives of the HR functionsworking with global firms. The criteria used for the inclusion of thestudy samples stated that each of the subjects must be working withan organization headquartered either in Europe or in the U.S andtheir respect firms should be in the mature stage of theirinternationalization at the time of the study. The international HRmanagers were recruited into the study by contacting them via phonecalls to request and inquire about their willingness to take part inthe study. Subjects who responded to the phone calls were requestedto enlist their interest in the research. A link to the web-basedsurvey instrument was then sent to them via email. This means thatdata collection was achieved through the web-based instrument.
Theprocedure used in the study focused on different measures all ofwhich assisted the authors in exploring different variables. Forexample, the measure of categorization of the management strategyresulted in the determination of the management approaches used byeach firm. Categorization of the expatriate assignment resulted inthe determination of assignments (including strategic, functional,technical, and developmental assignments) given to expatriates indifferent firms. A measure of expatriate selection, which was basedon a 5-point scale, helped the authors in determining whether thepractice of selecting expatriates was based on similar considerationor it was contingent on the strategy used by individual firm tomanage its international operations.
Thefindings reported in the article indicates that the strategicassignments were higher in organizations that adopted globalstrategies, which was followed by those that used centralized, thenthose that use the local strategy. In addition, companies with aglobal strategy had a higher percentage of senior managers with theexperience of the internal companies’ management compared to thosewith local and centralized strategies. However, the findings did notshow any significant difference between centralized and globalstrategies for the integration of expatriate management into theleadership development.
Theresults reported in the article supports the contingency approachpartially. For example, the authors identified that the multinationalcorporations assign their expatriates to the host countries dependingon their individual management strategies. In addition, theassignment of technical and developmental functions varied acrossfirms depending on the management strategy used by individual form.Therefore, firms that utilize expatriate assignments ensures that theheadquarter-specific or the firm-specific skills are consistentacross the host countries. Organizations that use the globalstrategies to enhance their competence through the developmentalassignment. Moreover, the integration of the expatriate managementinto the leadership development was contingent on the managementstrategies applied at the form level. However, there were a fewrelationships that were inconsistent with the contingencyperspectives. For example, all firms considered in the study hadsimilar percentages of expatriates responsible for the execution ofstrategies, which implies that this function was not contingent onthe type of the management strategies adopted by individual firms.The results can be used by multinational firms to manage theirexpatriate practices depending on their respective managementstrategies instead of applying universal approaches.
Theresearchers are experts working in the human resource departments.This resulted in the integration of the critical concepts in themanagement of expatriates. In addition, the authors managed to use anarrow focus on the study, which resulted in the successfulevaluation of the contingency approach in the management of practicesof expatriate management. However, the study had two majorlimitations. First, the sample size of 35 participants was too small,which limited the statistical power of the study. This implies thatfuture studies on a similar topic should include a larger size of thesample. Secondly, the anonymous nature of the study participants andresearch design reduced the possibility of collecting qualitativedata. Therefore, future studies should use the research designs thatwill allow the research to take advantage of the qualitative data.
Thearticle “Selecting Japanese managers for the expatriate assignmentin China: The relative importance of individual and non-work relateddifferences to assignment success” was written by Pranvera Zhaka.The article was published in the Waseda Global Forum in 2011. Thepurpose of the article was to explore the empirical relevance ofexpatriates’ non-work related and individual differences inforecasting their performance. The author used a contingency approachto conduct the analysis. The scope of the study was confined to theassignment of expatriate functions to the Japanese managers sent toChina. The authors hypothesized that the relative significance ofnon-work related and individual differences on individual performancevary on the basis of the expatriate’s kind of assignment. Zhakaseeks to advance the concept of contingency management as well as itsapplication in the management of practices of expatriate practices.
Thestudy sample the research comprised of 404 Japanese expatriatesworking in 19 subsidiaries located in China, but owned by theJapanese companies. Zhaka used a simple inclusion criterion since thestudy participants were only required to be expatriates working theJapanese subsidiaries operating in the Chinese Market. The authorconducted a survey that took about four and a half months. Zhakacollected data using a survey instrument that was issued as part ofthe entire study program. The instrument was in the form of aquestionnaire, which was distributed to the study participants. Theresearchers distributed questionnaires via email, but they wereeither collected by the local HR members of staff or emailed directlyto the researcher.
Zhakaachieved a relatively low response rate of about 57 % out of the 420questionnaires that were successfully distributed. The dependentvariable considered in the research was self-related individualperformance of expatriates. Independent variables included the pastassignment, family situation, and willingness to serve in theassigned country, which was China in that case. Moderate variablesincluded the position characteristics and the type of expatriates’assignment. In addition, the researcher used control variables (suchas the age of participants), but this was coded as a dummy.Hierarchical regression was perceived to be the most appropriateanalysis for the data collected from the survey. Individualperformance was used as the dependent variable in each regressionanalysis.
Thefindings reported in the article indicate that all expatriatecharacteristics, apart from the family situation were significantlyassociated with individual performance. Out of all control variables,only the current assignment was found to be positively associatedwith individual performance. Although managerial rank and expatriateperformance were positively correlated, they were not significantlyassociated, which implies that managerial ranking cannot moderate therelationship of non-work related and individual differences with thejob performance. In addition, the non-significant association betweenthe expatriate assignment and the job performance suggests that thetype of assignment adopted by a given firm cannot moderate therelationship between non-work related and individual differences withjob performance.
Theresults indicate that the process of selecting the expatriate iscontingent on non-work related and individual differences. Inaddition, the previous assignment is important in the process ofexpatriate`s assignment because it reduces the time that theexpatriate needs to adjust to the new environment. Moreover, thewillingness of the expatriate to relocate to the assigned countrydetermines their performance in their international assignments. Thisimplies that the individual performance of expatriates is contingenton the organization`s ability to determine managers who are willingto relocate. However, results on the relationship between the type ofassignment and the managerial ranking are inconsistent with thecontingency approach to expatriates’ selection.
Thestudy provided an empirical proof of the existence of therelationship between non-work related and individual differences thatare perceived to be relevant to the performance and the process ofexpatriates’ selection. This implies that multinational firmsshould avoid using generalized findings and consider each expatriateposition and applicant on the basis of the prevailing conditions.
Zhakamanaged to pre-determine hypothesis and select a design that resultedin the successful evaluation of the hypothesis. This suggests thatthe authors managed to achieve the objective of the study, which wasthe determination of the relationship between non-work related andindividual differences that are deemed to be relevant to expatriates’performance and selection using a contingent approach. In addition,Zhaka focused a narrow population of the Japanese expatriates, whichcontributed towards the clarity of the findings. However, the studyhas two major limitations. First, Zhaka relied on a self-ratedperformance approach, which increased the chances of bias in thestudy. Therefore, future studies should consider using multiplesources in order to avoid bias. Secondly, the narrow focus on theJapanese expatriates in China reduces the generalizability of thestudy findings.
Caligiuri,M. & Colakoglu, S. (2007). A strategic contingency approach toexpatriate assignment management. HumanResource Management Journal,17 (4), 393-410.
Asim,M. (2013). Impact of motivation on employee performance with effectof training: Specific to education sector of Pakistan. InternationalJournal of Scientific and Research Publications,3 (9), 1-9.
Hafiza,N., Shah, S., & Jamsheed, H. (2011). Relationship between rewardsand employee’s motivation in the non-profit organizations ofPakistan. Business Intelligence Journal, 4 (2), 327-334.
HumanCapital Institute (2014). 2015 workforce planning and talent strategyconference. HumanCapital Institute.Retrieved December 25, 2014, from http://www.hci.org/hr-conferences
Mercer,LLC (2014). 2015 expatriate management conference. MererLLC.Retrieved December 25, 2014, fromhttp://www.uk.mercer.com/events/2015-expatriate-management-conference.html
Zhaka,P. (2011). Selecting Japanese managers for expatriate assignment inChina: The relative importance of individual and non-work relateddifferences to assignment success. WaesdaGlobal Forum,8, 307-335.