Anda di halaman 1dari 31

Impact of Incentives and Work life balance on Job

Satisfaction

DISSERTATION PROJECT REPORT


Submitted To
RAJAGIRI BUSINESS SCHOOL

In partial fulfillment of the requirement for the award of


POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM)
2014 2016
By
Ajish Raju
Roll. No.P14163

Rajagiri Business School


Rajagiri Valley
Kochi 682 039
DECLARATION

I, Ajish Raju hereby declare that this report titled Impact of Incentives and Work life
balance on Job Satisfaction is a bonafide record of the Dissertation work done by me as part
of partial fulfillment of the award of the degree, Post Graduate Diploma in Management program
from Rajagiri Business School, Kochi.
I also declare that this report has not been submitted to any other university /board for the award
of any degree/diploma.

Place: Kochi

Ajish Raju

Date:

ACKNOWLEDGEMENT
The satisfaction that implies the success of any task would be impossible without the mention of
the people who made it possible, whose guidance and encouragement are valuable to me.
First of all I thank the God Almighty for his immense grace and blessings at each and every
stage of my dissertation.
Then I would like to express my gratitude to Dr.Binoy Joseph, Principal,Rajagiri Business
School, for granting me the opportunity to do the study.
I am thankful to my Faculty Guide, Prof. Shelly Jose faculty, Rajagiri Business School, Kochi,
for giving me his valuable guidance to execute the study as per the institution requirements and
for all the support he gave throughout my dissertation. I would also like to thank Dr. Imran
Khan and Prof. Saji George, Jury Members who extended their helping hands at various stages
of my study.
I would also like to thank my parents for their invaluable support and guidance, without which
this report would not have been possible.
I would like to thank all the respondents who cooperated whole heartedly and patiently in
providing me with the data by filling the questionnaire.
I am also thankful to all other faculty and friends who had extended their support and
contributions, which helped me in improving my dissertation.

Thanking You,
Ajish Raju

TABLE OF CONTENTS
PAGE

DESCRIPTION

ABSTRACT..................................................................................
..
CHAPTER 1 INTRODUCTION..
1.1 Relevance.........................................................................................
1.2 Background.
1.3 Objectives ..........................................................................................
1.4 Research Question..
CHAPTER 2 LITERATURE REVIEW

NO.
1
2
2
5
5

2.1 Theory.
2.2 Research Model....

2.3 Hypothesis.

11

CHAPTER 3:RESEARCH METHODOLOGY


3.1 Research Design ..............................................................
3.2 Variables of the study and their measurement.
3.3 Reliability and Validity of the scale
CHAPTER 4 ANALYSIS AND INTERPRETATION
4.1
Analysis and interpretation..
4.2
Correlation analysis..
4.3
Regression analysis
CHAPTER 5 FINDINGS AND RECOMMENDATIONS
5.1 Findings
5.2 Recommendations
CHAPTER 6 CONCLUSION
6.1 Conclusion
BIBLIOGRAPHY..
ANNEXURE...

11
12
13
14

15
16
18

21
21

23
24
25

LIST OF TABLES

Serial
no.

Title of the table

Page
No.

Table 3.1
Table 4.1

Result of reliability
Correlation between F, NF and WFB with Job Satisfaction

14
17

Table 4.2

Regression model for Financial incentives and Job


satisfaction

19

Abstract
6

Impact of incentives and work life balance on employees motivation represents an


issue that continuously provokes interest for discussion and research. The aim of
this paper is to evaluate the extent to which incentives and work life balance leaves
an impact on job satisfaction levels of employees. The questionnaires prepared for
this purpose were distributed to random employees. The data obtained from the
research are analyzed via several techniques by using SPSS 20.0 program.
According to the results of the analysis, a significant relation is observed between
the financial, non-financial incentives and work life balance with the job
satisfaction levels of employees. But among the three, work life balance has higher
impact on job satisfaction level followed by financial incentives and non-financial
incentives.

1.1 Relevance
2

What makes workers happy? An important component of the job satisfaction


literature focuses on rewards. Studies in management and psychology examining
the link between job satisfaction and rewards tend to either utilize the valence
expectancyinstrumentality framework proposed by Vroom (1964) and modified
by Porter and Lawler (1968) or subscribe to the discrepancy theory proposed by
Locke (1976).
The former involves identifying what workers value and their confidence in doing
their job sufficiently well to receive rewards, as well as their expectation of getting
the rewards they desire.
Work life balance practices are organizational changes designed to reduce work
family conflict. These work life balance practices enable employees to be effective
in both work and personal roles. The more control an employee has on their lives
the more able they are to balance work and family.
(Iqan lazar, 2010) Conclude that, a successful balance between work and non work
roles are beneficial for both employee and employer. And this balance in work and
life domains enhances quality of personal relationship and organizational
outcomes.

1.2 Background
Incentive is the concept which has become a key aspect for attracting, encouraging
and retaining the efficient employees in the organization. According to Bennett and
Minty(2005), incentives are viewed from two broad perspectives. They are
financial incentives and Non-financial incentives. The study of Kreitner and
Kinicker(2001) revealed that financial incentives has a short term result in
encouraging and stimulating workers for higher performance. But Dorenbosch, De
3

Reuver & Sanders (2006) explained in their study financial reward goes a long way
in determining their effectiveness and commitment towards their goals and
objectives. When high performances are recorded for employees, it must be
supported with a basis for recognition and promotions.
In the recent trends, many companies have been using some kind of incentive
system to motivate and reward their employees. Companies are using up lots of
money in their incentive system because of its popularity. A study, for example did
their research on companies of Finland, and about 65% companies have developed
new reward system in the last three years (Salimki, Sweins, Heiskanen &
Laamanen 2009, p.6). The rapid growth and development in the world has created
new activities and new doors for all business organization. The globalization trend
has put the organization hard to retain their competitive advantage.
Organizational changes due to downsizing, mergers/ acquisitions and radical
changes in technology have changed the work setups. The employees in present are
more involved in their jobs than in the last decade. The long working hours, work
pressure, high demanding jobs, use of sophisticated technology made it difficult for
employees to keep a balance between their job and work commitments. Changing
societal trends, such as an increase in the number of women entering the workforce
combined with an economy that requires dual incomes support an average standard
of living, contribute to work life conflicts.
Personal life and work life are two sides of the same coin. According to various
surveys on work life balance, 65% of the people are finding it difficult to find a
balance between their personal and professional life. Traditionally creating and
managing a balance between the work-life was considered to be a woman's issue.
But increasing Work pressures and Globalization have made it an issue with both
4

the gender, all professionals working across all levels and all industries throughout
the world. Achieving "work-life balance" is not as simple as it sounds.
The crucial function of Human Resource management is to implement practices
that enhance the satisfaction of employees with their jobs. Consequently,
enhancing job satisfaction is considered to be a win-win proposition. Indeed, job
satisfaction has been the focus of thousands of studies in management since
Hoppocks (1935) analysis. Employees expect financial and non-financial rewards
for their services and effort. In the absence of equitable pay, training and
development opportunities and recognition, employees do get dissatisfied and do
not perform the standards. The benefits that employees foresee for them and their
families motivates them to give their best.
There has been a long discussion about the success of incentives on the motivation
of employees in the literature, which claim that it has a positive effect on it. But at
the same time, there are also many others, which also argue that it has low or
negative effect. Hence, it is really important for the companies to know at what
extent these incentives affect the job satisfaction levels of employees. Therefore, it
is important to know which incentives do they accept and which do not serves its
purpose.
According to research conducted by the Corporate Executive Board among 50,000
global workers, Work life balance ranks as the second important workplace
attribute behind compensation. Employees tend to work 21 percent harder who feel
that they have better work life balance.

1.3 Objectives
5

To analyze the attitudes of employees towards financial incentives


To analyze the attitudes of employees towards Non-financial incentives
To analyze the attitudes of employees towards work life balance.
To analyze the relationship between financial incentives and job satisfaction
To analyze the relationship between Non-financial incentives and job
satisfaction
To analyze the relationship between work life balance and job satisfaction
To analyze the effectiveness of each

1.4 Research Question


To examine the impact that incentives and work life balance leaves on job
satisfaction levels.

2.1 Theory
There are many studies in the literature that examine the effects of incentives and
work life balance on several variables. Scheepers (2009) also examined the extent
to which incentives system affected the motivation of employees at IT firms.
6

According to the result of the study, an entrepreneurial reward system tends to


focus on formal acknowledgement, social incentives and organizational freedom of
employees to encourage corporate entrepreneurship. Pouliakas (2008) tested the
non-monotonic effect of monetary incentives on job satisfaction.
In the study, 1998-2005 of the British Household Panel Survey was used to
investigate the ceteris paribus association between the intensity of bonus/profitsharing payments and the utility derived from work. The set of job characteristics
identified as contributing to job satisfaction tends to include pay, hours of work,
promotion opportunities, job security (Brown et al. 2008; Bygren 2004; Capelli
and Sherer 1988; Clark, Kristensen, and Westergard-Nielsen 2009; Clark and
Oswald 1996; Heywood and Wei 2006; McCausland, Pouliakas, and Theodossiou
2005; Pouliakas and Theodossiou 2010); whether the job involves difficult,
monotonous, hazardous, or dirty work (Skalli, Theodossiou,and Vasileiou 2008);
whether the job is interesting, prestigious, or challenging (De Jonge and Schaufeli
1998; Katz 1978); and whether the job involves little worker autonomy or freedom,
offers opportunities for learning or skill acquisition, or allows one to feel a sense of
accomplishing something worthwhile (Bockerman and Ilmakunnas 2009; Clark
1998; Linz 2003). Not unexpectedly, in studies conducted in developed market
economies, affirmative responses for pay, promotion, security, challenging,
interesting, prestigious, and the like are associated with job satisfaction (negative
responses associated with dissatisfaction); for hours, difficult, monotonous,
hazardous, and closely monitored, the opposite holds.
Conversely, Adeyeye (2009) studies argued that managers are more motivated by
non-financial incentives and the employees are more motivated by financial
incentives.

Many changes in the industries and workplaces have changed and affected the
work and personal lives. These changes have risen in recent years as a result of
large numbers of working people and the entry of more women in the labor force.
Good WLB is a vital reason for the organisations success because it leads to
higher productivity (Bloom et al. 2006). Organizations always look for higher
productivity from their employees, whereas employees always look for deriving
satisfaction from their work and family life. The interests of both the employee and
the employer may conflict quite often, which results in dissatisfaction both among
employees and for the employer. Organisations may believe that they need to
exploit all the abilities of a worker and they will normally turn a blind eye towards
the personal needs of the employee.
Financial incentives and Job satisfaction:
Salau et al. (2014) studied the adoption of financial incentive in motivating
employees for higher performance at a state hospital. Nelson and Quick (2005)
analyzed the role of pay on job satisfaction. The use of monetary reward has
become indispensable in stimulating employees performance. In every
organization, especially in the manufacturing sectors, the use of pay, bonus,
compensation, profit sharing, etc has played a major role in motivating and
retaining workers for higher performance and commitments (Osibanjo, Adeniji,
Falola, and Heirsmac, 2014). Studies have indicated that when salaries of workers
are paid consistently, then it motivates them for to work willingly without the use
of coercion, while the absence of this leads to intention of workers to leave,
absenteeism, labour turnover, pilfering, lower commitment and low job satisfaction
levels. People work for organizations in exchange of money to satisfy their
immediate needs. The pay which comes in exchange for work done gives
employees a sense of satisfaction and eventually facilitates employee retention. So,
8

for organization to survive and be productive, the employees must be attracted,


rewarded and retained (Burgess Simon, & Ratto Marisa, 2003; Cheng & Ho, 2001;
Bartlett, 2001)
Non-financial incentives and job satisfaction
Kaya (2007) determined the major factors that are responsible for influencing
employees satisfaction. The findings of the study revealed that fringe benefits such
as paid holidays, sick leave and housing loans are the major determinants meaning
that non-financial incentives were more effective than financial incentives in terms
of the attitudes of employees. Non-monetary incentives are rewards that an
individual experiences and are directly related to the job itself (Falola, et al, 2014;
Kinicki and Williams, 2003). Psychological rewards are responsibility,
achievement, autonomy, personal growth, challenge, complete work and feedback
components of the job. Physical rewards are training, welfare services, flextime,
promotions, interpersonal relationships, conducive environments, job enrichment,
etc. Studies also indicated that non-monetary incentives are also important factors
that help in influencing the satisfaction and retention level of an employee.
Greenberg and Baron (2003) and Friedman (2005) are also of the opinion that
organizations with adequate provisions of the non-monetary variables create a
center of responsiveness and attention which helps in retaining competent,
knowledgeable, experienced and trained personnel.
Several studies (Rothwell & Kazanas, 2004); Salau, Falola and Akinbode, 2014)
indicated that employees are often motivated and satisfied with jobs only when it
gives them the freedom and opportunity to make use of their skills and abilities
without any arbitrary coercion. Numerous studies like Cook & Crossman, 2004;
Caruth & Humphreys, 2008; McDonald Ruth, Harrison Stephen, Checkland Kath,
Campbell Stephen & Roland Martin (2007) stated that employees get motivated to
9

work when they get frequent promotions and job security in their work place;
while some also argued that factors such as promotion, training and career
development, as well as appreciation and improved work environment give
employees greater opportunities and that these will either directly or indirectly
influence their satisfaction on the job.
Work life- balance and Job satisfaction:
Grove and Crooker, (1995) have mentioned that flexible work hour and childcare
polices could increase employees satisfaction and commitment to the organisation.
It is not necessary that family and social commitments associated with the workers
are all the same. In other words, no two workers are alike as far as their social and
family commitments are concerned. For example, the family and society
commitments of a single person may be less compared to a married person. So it
may not be possible for a married person to extend his/her working hours like a
bachelor and still be able to achieve WLB.
Well managed firms have realized the importance of WLB in increasing the
productivity of an employee. They have realized that only an employee with a
peaceful mind will be able to concentrate on his/her work and to increase his/her
productivity.
Work life balance is not only about families and childcare, but also about working
less. It is about working smart (Almidani, 2008. p.13). Asadullah and Fernandez
(2008) examined the role of work-life balance practices and jobs satisfaction in
Gender Gap in the UK and they found that WLB practice has a positive
relationship with job satisfaction as the females reported higher level of job
satisfaction than men. Also, their results prove that having good WLB practice
increase job satisfaction.
10

Related Theoretical Underpinnings


Herzbergs two-factor theory explained how best employees needs can be met and
satisfied. The study argued that the factors leading to job satisfaction are separate
and distinct from those that lead to job dissatisfaction; hence, the term two-factor
theory which simply refers to motivators which are related to job content. Herzberg
revealed that the job content or the motivators focus on task significance, task
identity and the notion a worker has on his/her job. It includes the following: the
work itself, respect, advancement, a sense of achievement and responsibilities. On
the other hand, Herzberg recognized the second factor as the hygiene factors which
are related to the job context. The job context refers to the environment in which
the job is performed. It also includes: Company policy and procedure, supervision
and administration, pay, working conditions and relationship with superior and coworkers

2.2 Research Model


Financial incentives
Non-financial incentives

Job Satisfaction

Work Life balance

2.3 Hypothesis
H1: There exist a positive relation between financial incentives and job satisfaction
levels
H2: There exist a positive relation non- financial incentives and job satisfaction
levels.
11

H3: There exists a positive relation between Work life balance and job satisfaction
levels.

3.1 Research Design


This chapter explains the different research options that were used in this study
such as the design of the research, sample characteristics, the variables of
hypotheses which will be tested, data collection and analysis. In addition this study
intends to investigate the relationship between Financial incentives (pay, bonuses,
profit sharing), Non-financial incentives (develop skills and abilities, social
security and health benefits and career opportunities), work life balance and Job
satisfaction levels (pay, working condition, supervisor, steady employment, co
workers, feeling of accomplishment and praise)
Furthermore, the study intends to explain to what extent incentives and work life
balance have an impact on Job satisfaction levels. Job satisfaction will be
considered as a dependent variable because it depends on multiple factors such as
employees salary, promotion, supervisor style, co-workers and tasks. On other
hand, financial incentives, non-financial incentives and work life balance can be
considered as independent variables. Regression and correlation analysis will be
used to examine the relationship between independent variable and dependent

12

variables. Therefore the questionnaire method was considered to be one


appropriate method for this study.
The data was collected from full time employees in the companies based in
Infopark, Kochi. A total number of 129 employees from middle and bottom
management were randomly selected using self-administered questionnaires. The
questionnaire was attached with a letter explaining the purpose, anonymity and the
confidentiality of all the information filled, and stated that the results would be
strictly used for the study purposes. The participating employees were instructed to
indicate the level to which they agreed with each of the statement in the survey.
The 129 collected questionnaires proceeded to the data analysis stage and were
analyzed using the SPSS (Statistical Package for the Social Sciences) program. The
study was focused on essential points related to financial incentives, non-financial
incentives, work life balance and job satisfaction

3.2 Study Measures and variables


The questionnaire used in the study includes 19 items which measures the four
variables included in the study. The scale used is of Likerts five point format. The
highest scale is 5 which represent strongly agrees and the lowest is 1 which
represents strongly disagree. The followings represent the main variables:
Financial incentives: This variable was measured using 3 items scale developed by
Ali Erba & Tugay Arat (2012) using Likerts five point format. The scale included
items of financial incentives.

13

Non-financial incentives: This variable was measured using 3 items scale


developed by Ali Erba & Tugay Arat (2012) using Likerts five point format.
Work life balance is how to manage your time to have enough time for your
personal life and work life. This variable was measured using 4 items scale
developed by the researcher using Likerts five point format.

Variables:
Independent variable: Financial incentives, Non-financial incentives and Worklife balance
Dependent variable: Job Satisfaction
Definition of variables:
Financial incentives:
Theoretical definition- According to Armstrong (2012) financial rewards comprise
all rewards that have a monetary value and add up to total remuneration. These
rewards include base pay, merit pay, skills based pay, incentives, and service
related pay, bonuses, financial recognition schemes and benefits such as pensions,
sick pay and health insurance
Operational definition- Financial incentives like bonus, allowances, pay hike and
discounts offered to consumers, employees and organizations to encourage
behavior or actions which otherwise would not take place.
Non-financial incentives:
14

Theoretical definition- A non cash award given in recognition of a high level of


accomplishment or performance such as customer care or support to colleagues,
which is not dependent on achievement of a pre-determined target.(Rose 1998)
Operational definition- Non-financial incentive is a method of identifying either
individual employees or teams for particular praise or acknowledgement.
Work-life balance:
Theoretical definition- Clark (2000) defines work-family balance as satisfaction
and good functioning at work and at home, with a minimum of role conflict
Operational definition- The act of achieving a balance between the two competing
demands of work and personal life
Job satisfaction:
Theoretical definition- A pleasurable or positive emotional state resulting from the
appraisal of one's job or job experiences (Locke,1976)
Operational definition- Job satisfaction means a positive or pleasant emotional
state that principals and educators experience when their work is in harmony with
their needs and values

3.3 Reliability and validity of scale


Reliability

Financial
incentives
0.63

Non-financial
incentives
0.672

Work
balance
0.795

life Job
satisfaction
0.898

Cronbachs
alpha
Table 3.1: Result of reliability
It can be seen from the table, the Cronbachs alpha was found to be financial
incentives (0.63), non-financial incentives (0.672), work life balance (0.795) and

15

Job satisfaction (0.898). Hence, the scales used in this study are reliable with
acceptable level of internal consistency.

4.1 Analysis and Interpretation


This chapter explains the results which were concluded from the survey using
SPSS (Statistical Package for the Social Sciences). The survey is intended to help
in gathering information about employees feedback towards the organization in
terms of WLB, financial incentives, non financial incentives and job satisfaction.
The results were used to examine and to provide analysis of the reliability,
correlation and regressions of the collected data.

4.2Correlation Analysis
The tools used for the analysis are Karl Pearsons Correlation Coefficient and
Regression analysis. The Karl Pearson correlation coefficient is a measure of linear
association between two variables. The significance level (or p-value) is the
probability of obtaining results as extreme as the one observed. If the significance
level is very small (less than 0.05) then the correlation is significant and the two
variables are linearly related. The sign of the correlation coefficient indicates the
direction of the relationship (positive or negative). The absolute value of the
correlation coefficient indicates the strength, with larger absolute values indicating
stronger relationships. The significance level (or p-value) is the probability of
obtaining results as extreme as the one observed. If the significance level is very
small (less than 0.05) then the correlation is significant and the two variables are
linearly related. If the significance level is relatively large (for example, 0.50) then
the correlation is not significant and the two variables are not linearly related

16

Table 4.1: correlation between F, NF and WFB with Job Satisfaction


Correlation Analysis and Interpretation
Objective
To analyze the relationship between financial incentives and job satisfaction
To analyze the relationship between Non-financial incentives and job
satisfaction
To analyze the relationship between work life balance and job satisfaction
Hypothesis 1: There exist a positive relation between financial incentives and job
satisfaction levels
The Coorelation table indicates the strength of the relationship between two
variables. Here, the value for correlation between financial incentives and Job
satisfaction is .797, which states that the above hypothesis holds true.

17

Hypothesis 2: There exist a positive relation between non- financial incentives and
job satisfaction levels.
The value for Correlation between Non-financial incentives and Job satisfaction is .
775, which states that the above hypothesis is correct.
Hypothesis 3: There exists a positive relation between Work life balance and job
satisfaction levels.
The value for correlation between Work life balance and Job satisfaction is .828,
which states that the hypothesis holds true in this case. The value which is closer to 1
is highly correlated, which indicates that work life balance is highly correlated with
job satisfaction levels than financial incentives and non-financial incentives.

4.3 Regression Analysis


Regression analysis was undertaken hierarchically to test for significant interaction
effects over and above the simple effects of the independent variables. R, the multiple
correlation coefficients, is the correlation between the observed and predicted values
of the dependent variable. The values of R for models produced by the regression
procedure range from 0 to 1. Larger values of R indicate stronger relationships. R
squared is the proportion of variation in the dependent variable explained by the
regression model. The values of R squared range from 0 to 1. Small values indicate
that the model does not fit the data well. The sample R squared tends to optimistically
estimate how well the models fit the population. Adjusted R squared attempts to
correct R squared to more closely reflect the goodness of fit of the model in the
population.

Regression analysis
To find the degree to which financial incentives influences job satisfaction levels
18

Table 4.3: Regression model for Financial, Non-financial incentives and work life
balance with Job satisfaction
From the above table we can arrive at the following equation
Y=.111+.748X; where
Y stands for the dependent variable Job satisfaction and X stands for the
independent variable Financial incentives.
Y=.111+.908X; where
Y stands for the dependent variable Job satisfaction and X stands for the
independent variable Non-financial incentives.
Y=.111+1.009.X; where
19

Y stands for the dependent variable Job satisfaction and X stands for the
independent variable work life balance.
The model summary table indicates R and R square value. The R value represents
the simple correlation and is 0.884 (the "R" Column), which indicates a high
degree of correlation. The R2 value (the "R Square" column) indicates how much
of the total variation in the dependent variable, Job Satisfaction can be explained
by the independent variable-Financial incentives. In this case, 78.1 % can be
explained, which is very large.
The ANOVA table indicates that p < 0.0005, which is less than 0.05, and indicates
that, overall, the regression model statistically significantly predicts the outcome
variable (Job satisfaction) (i.e., it is a good fit for the data).
Since observed value of VIF are 3.214, 2.524 and 2.659, there is no
multicollinearity symptoms between the independent variables.
The coefficient table indicates that Beta value of financial incentives (.236), Nonfinancial incentives (.285) and work life balance (.448). Higher the beta value,
higher will be the impact of independent variables on dependent variable compared
to other independent variables which is measured in terms of standard deviation
units.

5.1 Findings
Refering to Table 4.2, the Correlation value observed is .797 which indicates that
there is a significant relation between financial incentives and Job satisfaction.
Similarly for Second hypothesis, the Correlation value observed is .775 which
indicates that there is a significant relation between Non-financial incentives and
Job satisfaction.

20

Lastly for Third hypothesis, the Correlation value observed is .828 which indicates
that there is a significant relation between Work life balance and Job satisfaction.
Referring to Table 4.3, the observed R square value is .781(78.1%) which indicates
the variation in the job satisfaction levels that can be explained by financial
incentives, Non-financial incentives and Work-life balance.
It can be observed from the beta value of all the three variables, Work life balance
(.448) leaves higher impact on Job satisfaction levels followed by non-financial
(.285) and non-financial incentives (.236).

5.2 Recommendations
Since the study was conducted among the random employees of Info Park, Cochin.
Organizations pertaining to that area need to focus more on their work life
arrangements such as flexi time hours, Job share arrangements, Maternity leave
arrangements, Compassionate leave arrangement, Emergency care of dependents
etc
Many researches has been conducted on incentives and work life balance affecting
job satisfaction whereas while given an alternative to choose among the three
variables, many employees have more positively responded to work life balance
rather than incentives. One can further extend the research by including variables
pertaining to satisfaction of employees from their job.

21

6.1 Conclusion
The study focused on finding out to what extent incentives and work life balance
affects the job satisfaction levels of employees. The researcher based on the
responses collected and the analysis done was able to reach an outcome, which
showed that significant relationship exists among financial incentives, nonfinancial incentives and work life balance on job satisfaction levels. Hence it
validates the hypothesis as true. Analysis part was done using self administered
questionnaires among the employees at info Park, Cochin. The results are in line
with the previous studies with a slight difference in impact of independent
variables on job satisfaction.
Based on the regression analysis, it was observed that work life balance (.448)
leaves higher impact on job satisfaction levels compared to non-financial
incentives (.285) and non-financial incentive (.236). There are also some limitation
22

in the study related to geographical location as employees of a particular region are


only included for this study. Besides that, the presence of unobserved job
characteristics, such as job disamenities, may cause further biases. Taking a larger
context as a base and conducting the survey to a broader population will increase
the generalizability of the findings obtained from this study. However, this was
impossible in our study due to time and cost and regarded as a limitation

23

Bibliography
Hill, J., Hawkins, J., Ferris, M., & Weitzman, M. (2001). Finding an extra day a
week: The positive effect of job flexibility on work and family life balance.
Family Relations, 50(1), 4958.
Locke, A. (1976), "The nature and causes of job satisfaction", in Dunnette,
M.D. (Eds),Handbook of Industrial and Organisational Psychology, Rand
McNally, Chicago, IL, pp.1297-349
Thompson, A, Beauvais ,L, & Lyness, S. (1999). When work-life benefits are
not enough: The influence of work-life culture on benefit utilization,
organisational attachment, and work-life conflict. Journal of Vocational
Behavior, 54, 392415.
Todd, S. (2004). Improving Work-Life Balance What Are Other Countries
Doing?. Labour Program Human Resources and Skills Development Canada
Duxbury Linda & Higgins Chris.2001. Work-Life Balance in the New
Millennium: Where Are We? Where Do We Need to Go?. CPRN DISCUSSION
PAPER
Al-Nsour Marwan. (2012). Relationship between incentives and organizational
performance for employees in the Jordanian Universities. International
Journal of Business and Management, 7(1), 78-89.
Arnolds Ca, & Venter Djl. (2007). The strategic importance of motivational
rewards for lower-level employees in the manufacturing and retailing
ndustries. SA Journal of Industrial Psychology, 33(3), 15-23
Burgess Simon, & Ratto Marisa. (2003). The role of incentives in the public
sector: Issues and evidence. Oxford Review of Economic Policy, 19(2), 285300.
Grossman Sanford, J., & Hart Oliver, D. (1982). Corporate financial structure
and managerial incentives: The economics of information and uncertainty
Luthans, F. (1998). Organizational behavior. Singapore: McGraw-Hill.
Brayfield, Arthur, and Harold Roth. 1951. An Index of Job Satisfaction.
Journal of Applied Psychology 35:30711.
De Jonge, Jan, and Wilmar Schaufeli. 1998. Job Characteristics and
Employee Well-Being. Journal of Organizational Behavior 19(4): 387407.
24

Susan J. Linz and Anastasia Semykina.(2012). What Makes Workers Happy?


Anticipated
Rewards and Job Satisfaction. Industrial relation, 51(4),811-844.

Annexure
Note: 5-point Likert scale (1-Strongly disagree, 2- Slightly Disagree, 3Neutral, 4- Slightly agree, 5- Strongly agree)
In my job, I am getting enough
payment to meet the requirements
of life
In my job, incentives are paid
according to my performance

My organization is keenly
interested in sharing its profits with
me

In my job, I am getting enough


opportunities to develop skills and
abilities
In my job, appropriate social
security and health insurance is
available

My job provides me enough career


opportunities and development
In my life, there is a clear boundary
between work and family
I feel that making a balance
between my work, my family and
other social responsibilities is
difficult
The time I spend on my job is
negatively affecting my social
responsibility
My current job allows me to get
involved in my family as I should be
My job gives me the chance to do
something that makes use of my
abilities.

25

4
5

I am happy with the way company


policies are put into practice.
I get praised for doing a good job.

I am happy with the way my boss


handles his/her employees

My job provides me steady


employment
I get support from my co workers

I am happy with the amount of work


I do and the pay I get
In my job, working conditions are
good
I get the feeling of accomplishment
from my job

26