A Comparative Study of Non Financial Incentive and Employee Job Satisfaction
CHAPTER ONE
AIM AND OBJECTIVES OF THE STUDY
The aim of this study is to make a comparative analysis of non-financial incentives and employee job satisfaction in organizations. Specifically, the objectives of the study are to:
- To determine the impact of non-financial incentive on employee job satisfaction in an organization.
- To investigate if there is any relationship between non financial incentive and employee job satisfaction in the organization.
- To find out if recognition and praise has a positive impact on employees of the organization.
CHAPTER TWO
LITERATURE REVIEW
Introduction
This chapter covers literature review related to the study. It included a review of the various studies conducted by researchers on theoretical foundation, the non financial rewards and the influence of non financial rewards on employee commitment.
Incentive
Incentive is the key to organizational effectiveness and is a predictor for performance and job satisfaction.Although large scale complex organizations have existed for several hundred years, managerial attentionto the role of incentive in such organization is a most recent phenomenon.Incentive is what people desire to do, the inducement or incentive. The term incentive also can be referred to what makes people tick or the needs, fears and aspirations within people that make them behave as they do currently (Walker & Miller, 2010). The two most famous theories are Maslow’s hierarchy of needs and Herzberg’s two factor theory. Maslow’s hierarchy of needs in 1943 has appeared in the literature many times during the past six decades. Maslow’s hierarchy of needs consists of five basic levels: physiological, safety needs, love and belonging, esteem, and self-actualization, which generally should be satisfied accordingly (Maslow, 1943).
Two-factor theory or Herzberg et al., (1959) incentive -hygiene theory introduced the two factors namely “Motivators” and “Hygiene”, which lead job satisfaction at work place. Motivators include recognition, achievement, possibility of growth, advancement, responsibility, and the work itself. On the other hand, hygiene factors include salary, interpersonal relations at work, supervision, company policies and administration, working conditions, factors in personal life, status, and job security (Tietjen& Myers, 1998).
According to Herzberg, the presence of motivators brings job satisfaction and the lack of hygiene factors results in job dissatisfaction. Moreover, the presence of hygiene factors does not result necessarily in increase of job satisfaction, but only reduce or eliminate job dissatisfaction of the employees. Job satisfaction is simply defined as “how people feel about their jobs and different aspects of their jobs. It is the extent to which people like (satisfaction) or dislike (dissatisfaction) their jobs” (Spector, 1997). Herzberg et al.,(1959) have claimed that job satisfaction and dissatisfaction considerably depend on different sets of work related conditions and therefore job satisfaction and dissatisfaction are affected by different factors (Furnham, 2002). As Brief (1998) stated job dissatisfaction is not necessarily the opposite of job satisfaction while positive and negative effects at work are independent of one another. The two-factor job satisfaction theory of Herzberg et al., (1959) has affected many organizations to build opportunities for personal growth, enrichment, and recognition for their employees hence many managers use job promotion and entitlement techniques as a strategy to motivate their employees rather than the conventional salary and benefit tools.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of hundred and twenty (120) questionnaires were administered to respondents of which 100 were returned. The analysis of this study is based on the number returned.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FIVE
SUMMARY, CONCLUSION AND DISCUSSION
Summary of the study
The study established a positive relationship between non-financial incentives and job satisfaction of Staff in Seven Up Bottling Company. Employee agreed that promotion, rewards and job autonomy affect teacher retention.
Conclusion
The study sought to assess a comparative study of non financial incentive and employee job satisfaction. The study concluded that 88.6% of the respondents were satisfied with the promotion criteria to a large extent.Therefore the study concludes that promotions are important in improving the job satisfaction of Employee. The study also sought to establish the effect of rewards on job satisfaction of Employee in Seven Up Bottling Company.The study concluded that 82.2% of the respondents were rewarded and were satisfied with the rewards to a large extent.The study therefore draws a conclusion that there’s a high association between the job satisfaction of Employee and how well they’re rewarded. The study also sought to find out the effect of job autonomy on job satisfaction of Employee in Seven Up Bottling Company.12.6% of the respondents were satisfied with the decision making process in their respective schools. This study concludes that Employees are satisfied in a company where they are involved in the decision making process and good working environment. Majority of Employees would be satisfied where there is a commendable work place environment.
Recommendations
The study a comparative study of non financial incentive and employee job satisfaction.The study therefore recommends that Employees should be promoted regularly and be provided with distinct promotion criteria in terms of years or periods of promotion. This would enable them get more satisfied with their job. The study also sought to establish the effect of rewards on job satisfaction of Employees in Seven Up Bottling Company. The study therefore recommends that Employees satisfied with the salaries they earn need to be motivated through nonfinancial incentives to retain talent. Schools administrators should work tirelessly and come up with various criteria on how to reward Employees and therefore motivate them. The study also sought to find out the effect of job autonomy on job satisfaction of Employees in Seven Up Bottling Compan.
The study therefore recommends that Employees should be provided with conducive working environment in order to motivate and satisfy them, in return leading to job satisfaction.
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