Purpose: Analyzing the effectiveness of reward management system on employee performance through the mediating role of employee motivation was the purpose of the present survey.
Method and tools: Given that staff department of Isfahan Regional Electric Company was the statistical population under study simple random sampling was used in this survey. Sample size was determined by means of Cochran formula (140 persons). Historical study and field study methods were the most important methods of data collection and data analysis was performed by means of Amos and Pls software.
Findings: Reward management system has a positive and significant effect on employee motivation. Employee motivation does not have a positive and significant effect on employee performance. Reward management system has a positive and significant effect on employee performance (by the presence of motivation as the mediating variable).
Conclusion: The findings of this survey in the above company show that there is a positive and significant relation among elements of reward management system and motivation and performance. Such positive and significant relation was found among the elements of reward management system with performance too. This is while there was no positive and significant relation among the elements of reward management system, employee motivation and performance. It is notable that the above relations were presented in the framework of a model using structural equations modeling.
Alvani, S.M; Yamchi Gharibi, H; Nickmaram, S and Ahmadi Zahrani, M. (2012). Explaining the effect of model of encouraging the employees in the public sector with a holistic approach towards reward. Improvement and Change Management Studies, 64, pp 1-17
Asili, GH; Ghadirian, A and Shavalpour, S. (2009). Studying the comprehensive reward and payment system in knowledge-based organizations (Case study: Research Center of the Oil Industry). Management Studies, 58, pp 69-143
Cavico, F. & Mujtaba, B. G., (2008), “Legal Challenges for the Global Manager and Entrepreneur. Kendal Hunt Publishing Company”, United States
Gungor, P., (2011). “The Relationship between reward management system and employee performance with the mediating role of motivation: A quantitive Study on Global Banks” Journal of Procedia social and behavioral sciences, 24, 1510-1520.
Hamel, Gary. (2007), “The future of management. Boston: Harvard Business School Press”
Hsieh , Y . H . (2011), “Empirical study on personality traits, Job Satisfaction,And Reward System Preferences”, African Journal of Business Management ,Vol. 5(12), Pp .4983-92
Kamau , H. and Nyaribo , W.M. (2013), “ The Impact of Reward System on Employee Motivation: A Survey of Commercial Banks in Kenya”, International Journal of Business and Management Tomorrow, Vol. 3(1), pp . 1-11.
Karadjova-Stoev, G. and Mujtaba, B. G. (2009), “Strategic Human Resource Management and Global Expansion Lessons from the Euro Disney Challenges in France”, International Business and Economics Research Journal, Vol. 8(1), 69-78.
Karami, B. (1999). Studying the effects of financial rewards on increasing of production per capita in Isfahan Steel Company (Master's thesis, Department of Management and Economy, University of Isfahan)
Kiyani, A . and Akhtar, S.and Haroon, M. (2011). “ Impact Of Monetary Rewards On Achievement Of Employee’s Personal Goals”, IHART , Vol 14, ISSN 2150-6906.
Koch, C. G. (2007), “ The Science of Success: How Market-Based Management Built the World's Largest Private Company”, Wiley Publications; United States. ISBN-10: 0470139889
Kuvass, B .and Dysvik , A . (2009), “ Percieved Investment in Employee Development, Intrinsic Motivation and Work Performance”, Human Resourse management Journal, Vol. 19(3),pp. 217-36.
L . Ryness, S. and Gerhart , B. and A . Minette , K . (2004), “The Importance Of Pay In Employee Motivation: Discrepancies Between What People Say And What They Do”, Human Resourse management, Vol. 43(4), Pp . 381 -94.
Moshabaki, A. (1999). Organizational behavior management. Shahid Chamran University of Ahwaz
Nazemi, MM and Ghorbani, MR. (2004). Studying the reward status and its effect on the employees in Imam Hossein University (Master's thesis, Imam Hossein University)
Mujtaba, B. G. (2008), “ Coaching and Performance Management: Developing and Inspiring Leaders”, ILEAD Academy Publications; Davie, Florida, USA.
Mujtaba, B.G .and Shuaib , S .(2010 ), “An Equitable Total Rewards Approach to Pay for Performance Management”, Journal of Management Policy and Practice, Vol. 11(4) ,pp.111-21
Niki, N .and Nili , M and Nilipour ,A.(2011), “Designing Distribution System Of Rewards And Influence On Employees Satisfaction Case Study: Hamgamkhodro Asia Factory” International Journal of Business and Social Science, Vol. 3 No. 12, Pp. 305 -12
Stephan, P. Robinz. (2011). Principles of organizational behavior. Translated by Parsaeeian, A and Arabi, S.M. Publications of Office of Cultural Researches .
Savabi, F.and Moniri, Z. and Hashemi, M.(2011). “The Effect Of Real Wage Increas On The Potential Real Output Growth Rate And Unemployment Rate: A Theoretical Approach.
Schaufeli, W., & Bakker, A. (2004), “Job demands, job resources, and their relationship with burnout and engagement: a multi-sample study”, Journal of Organizational Behavior, Vol. 25(3) 293.
Van Herpen, M.F.M., Van Praag, C.M. and Cools, K. (2005), “The Effects of Performance Measurement and Compensation on Motivation: An Empirical Study.” De Economist, Vol. 153(3), pp. 303-29.
Wren, Daniel A. (2005), “The evolution of management thought”, (5th edition), New York: John Wiley & Sons, Inc
Yang , H . (2008), “Efficiency Wages and subjective Performance Pay” , Economi Inquiry, Vol. 46(2), pp 179-96
Yasici , N .K ., “ The Effect of System Applications On Employee Performance In Service Sector”, (2008), Marmara University, Institute of Social Science, Master Thesis.
Zia Ur Rehman , M .and Riaz Khan, M .and Ali Lashari , Z&J .(2010), “Effect of Job Rewards On Job Satisfaction, Moderating Role Of Age Differences: An empirical evidence from Pakistan”, African Journal of Business Management , Vol. 4(6), pp. 1131-39
Copyright: © 2013 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
