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Final Project

Rewards and recognition as a Source of Motivation

A REPORT

SUBMITTED TO THE DEPARTMENT OF MANAGEMENT

SCIENCES, VIRTUAL UNIVERSITY OF PAKISTAN IN

PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE DEGREE OF MASTER IN BUSINESS
ADMINISTRATION

Submitted By

Department of Management Sciences,

Virtual University of Pakistan

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Acknowledgement

I would like to articulate my greatest thanks to the people who

have facilitate & supported me right through my project. I am
thankful to my instructor for his incessant support for the project,
from initial advice & acquaintances in the early stages of
conceptual beginning & through ongoing advice & encouragement
to this day.

I yearn to thank my parents for their exclusive support and

attention who enthused me and buoyant me to go my own way,
without whom I would be unable to complete my project. At last
but not the least I want to thank my wife who cherished me for
my work and provoked me and finally to Almighty ALLAH who
made all this possible...

Abstract

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Increasingly, organizations are realizing that they have to
establish an equitable Balance between the employee’s
contribution to the organization and the Organization’s
contribution to the employee. Establishing this balance is one of
the main reasons to reward and recognize employees.
Organizations that follow a strategic approach to creating this
balance focus on the three main components of a reward

system, which includes, compensation, benefits and recognition

(Deeprose, 1994). Studies that have been conducted on the topic
indicates that the most common problem in organizations today is
that they miss the important component of recognition, which is
the low-cost, high-return ingredient to a well-balanced reward

system. A key focus of recognition is to make employees feel

appreciated and valued (Sarvadi, 2005). Research has proven
that employees who get recognized tend to have higher self-
esteem, more confidence, more willingness to take on new
challenges and more eagerness to be innovative (Mason, 2001).
The aim of this study is to investigate whether rewards and
recognition has an impact on employee motivation. A biographical
and Work Motivation Questionnaire was administered to
respondents (De Beer, 1987). The sample group (N= 184)
consists of male and female employees on post-grade levels 5 to
12. The results of the research indicated that there is a positive
relationship between rewards, recognition and motivation.
Notwithstanding the insights derived from the current research,
results need to be Interpreted with caution since a convenience
sample was used, thereby restricting the

generalisability to the wider population.

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