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Are Non-Compensatory Employee Rewards as Efficient in Fostering Motivation as Cash Incentives? A Thesis Submitted to the Faculty of Philippine Merchant Marine School – Las Piñas City In Partial Fulfillment of the Requirements in methods of Research Submitted by: Leader Dela cruz, Rameces A. - 20 Members Bitara Mark Julius ,-10Celesio joseph brian -10 ,Corona Joshua - 12 , Correa Jorge – 11 ,Estipona Jerome – 14 , Florenosos Peter Paul - 19 ,Gabuyo Luis – 18, Galvan Mario Angelo – 10 ,

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Page 1: Thesis

Are Non-Compensatory Employee Rewards

as Efficient in Fostering Motivation

as Cash Incentives?

A Thesis Submitted to the Faculty

of Philippine Merchant Marine School – Las Piñas City

In Partial Fulfillment of the

Requirements in methods of Research

Submitted by:

Leader

Dela cruz, Rameces A. - 20

Members

Bitara Mark Julius ,-10Celesio joseph brian -10 ,Corona Joshua -12 ,

Correa Jorge – 11 ,Estipona Jerome – 14 , Florenosos Peter Paul -19 ,Gabuyo Luis – 18,

Galvan Mario Angelo – 10 ,

Section.

N-S3B1

Page 2: Thesis

Chapter 1

THE PROBLEMS AND ITS BACKGROUND

1.1 Introduction

In the contemporary business environment, employees and managers alike are faced with

numerous pressures to perform to corporate expectations. These pressures are often created by

highly competitive business environments, environments which impose continuous change and

internal redesign or even progressing job responsibilities which create stressful working

conditions. (Amongst a variety of other pressures). In this high-paced business world, it is

paramount to avoid high turnover costs as well as maintaining a highly unmotivated workforce

who are not recognized for their positive organizational accomplishments. There are a wide

variety of different non-compensatory programmed or options available for modern business

leaders to utilize as a means to reward positive performance, efficiency and overall job-related

productivity. Some of these rewards come in the form of flexible scheduling options, premium

gifts elicited by company management, or even increased job-related autonomy to create

perceptions of trust in the employee and their competency to carry out their job role without

managerial intervention or continuous assessment. All of the aforementioned non-compensatory

rewards likely have their merits in creating a more motivated workforce, however can non-cash

incentives, when utilized as an alternative to cash incentives, foster long-term motivation in

employees? Does today’s business employee truly value the more psychological elements of

workplace incentives, such as increased autonomy, or are cash-based incentives the most

appropriate reward methodology for building long-term organizational commitment and job

satisfaction? This proposed research study intends to answer the following three specific research

questions:

Page 3: Thesis

To what degree do non-cash incentives increase motivation in today’s active labor force?

To what degree to cash incentives foster motivation within the organizational staff?

Do any noticeable trends exist in employee behaviors and attitudes which directly

impact whether cash or non-cash incentives should be used to boost motivation?

This proposed study is intended to take an exploratory approach to research, contributing to

the wide body of literature available on business and motivational theory. There does not appear

to be a definitive model or specific series of incentive programmed which can guarantee

continuous, positive motivation amongst staff members, thus this proposed research study

maintains the potential to create a potential best practice model for generating cash versus

noncash performance incentives in order to assist today’s business leaders in developing a more

rewarding business environment in which employees are driven to succeed above and beyond

corporate expectations. Undertaking a primary research study of this magnitude maintains one

specific difficulty related to gathering the research data and in eliciting various corporate/business

approvals to conduct a qualitative and quantitative research study targeted at staff members.

Achieving a high level of respondent participation will require an active scan of the contemporary

business environment to determine how best to utilize the proposed study’s research instruments

for gathering employee opinion on motivation and overall job satisfaction through incentive

programmed. Further, achieving management approvals for the distribution of the research

instruments will require active consultation with various business leaders to ensure minimal

disruption to regular business activities. Hence, the difficulty to this study lies in the researcher’s

tangible ability to guarantee an adequate response ratio to the study. Issues of individual

anonymity is the largest ethical dilemma inferred by this proposed study to avoid jeopardizing the

reputation of a specific business/industry and to ensure that the targeted sample group is

Page 4: Thesis

comfortable providing responses which may cast a negative light on the internal operations or

programmed incentives within their business environment. Thus, all respondents and business

leaders targeted for this study will be ensured strict anonymity in the presentation of research data

results.

1.2 Background of the Study

The subject matter of this research is all about non-compensatory employee reward of

Philippine Merchant Marine School. This reward may help the employee to pursue and strive

more to motivate with their job and maintain positive performance efficiency and overall job

related productivity. Rice, groceries, uniform and health care are just few of the Non-

Compensatory rewards at the said school and it is gevin every month of December. Non-

Compensatory Reward will mean a token of appreciation of the contribution/performance of

employees leading to significant improvements in the work processes and effectiveness.

1.3 Statement of the Problem

The study aims to determine if the non-compensatory employee rewards as efficient in

fostering motivation as cash incentive among employees of Philippine Merchant Marine School,

San Antonio, Talon 1, Las Piñas City.

Specially, it seeks to answer the following questions:

1. to what degree do non-cash incentives increase motivation among employees of

Philippine Merchant Marine School – Las Piñas City?

2. to what degree do cash incentives foster motivation within the organizational staff?

3. do any noticeable trends exist in employee behaviors and attitudes which directly

impact whether cash or non-cash incentives should be use to boost motivation?

Page 5: Thesis

1.4 Scope and Limitation

This research study was conducted at Philippine Merchant Marine School, San Antonio,

Talon 1 , Las Piñas City. The respondents of this study were all employee of the said school.

Recognition and rewards play an important role in work unit to attract and retain their employees.

It is the day-to-day interactions that make employees feel that their contributions are appreciated

and that they are recognized for their own unique qualities. This type of recognition may

contribute to high morale in the work environment. Non-Monetary Rewards and Recognition is a

means of providing immediate, non-cash rewards to employees for contributions to the

Organization. We’ve all heard the statistics on how staff members like to be recognized and

rewarded for doing a good jod. That a pat on the back or a “thank you” can mean more to a

person than any amount of money. But actually putting a system into place can be easier said than

done. The ways in which people are valued can make a considerable impact on the effectiveness

of the organization, and is at the heart of the employment relationship. The aim of employee

reward policies and practices, if any the organization is to help attract, retain and motivate high-

quality people.

1.5 Significance of the Study

Many previous studies have considered the relationship between monetary incentives and

employee motivation. Still, the consideration of money as the basic motivating force and its

superiority over any non-monetary incentives secures its place on the organizational scholar’s

agenda. On the other hand, there is a growing interest and attention on the use of non-monetary

incentives. Especially in private sector organizations, it starts to be pronounced louder and there

is a wide literature on their incredible influence in obtaining highly motivated employees.

Contribution to the following:

Page 6: Thesis

Employees

To the members of the faculty. Our instructors enjoy an enviable work/life balance and

an attractive working condition it may also help improves teaching.

To the administrative staff. To encourage administrative staff initiative in solving

problems, achieving efficiencies and thinking creatively as well as to inspire cooperation across

departments and schools and throughout the campus.

Employers

Employers even furthered increase the rating of their company because of the extra

benefits they provide employees receive a rewards . Consequently be more hard working as they

work and more as each other improve them. And because of good correlation of employers and

employees the company will become successful .

Page 7: Thesis

Chapter 2

THEORETICAL / CONCEPTUAL FRAMEWORK

2.1 Review of Related Literature and Studies

This chapter includes foreign literatures and foreign studies read by the researchers, other

unpublished thesis, and studies conducted by other research groups. This chapter also includes

local literatures, taken from local published books and materials, and local studies, taken from

research works and studies related to the subject matter. Related foreign and local literature and

studies that dealt with theories, principles, concepts, approaches and techniques are reviewed

which contributed a lot towards the enrichment of knowledge, deeper understanding and insight

of the researchers.

Foreign Literature

(Philiotis, 2007). The cons to such incentives include the production of negative employee

responses in relation to perceptions of corporate frugality. Essentially, if the company procures

inexpensive merchandise, the company will appear cheap and create a long lasting negative

impression. Additionally, Philiotis further suggests that companies must be careful when

determining whether luxury food items can be considered valuable alternatives to cash, as a

diverse, multi-ethnic organizational staff may consider the contents of the gift package to be

incongruent with lifestyle preferences or personal beliefs. Thus, from a diversity viewpoint, some

varieties of non-cash rewards, if not planned properly to fit staff ideals, can be demotivating

elements with long-term implications in regards to employee perceptions against their employer.

Daniels (2000) supports the idea that the design of the non-cash incentive is directly correlated to

increases or decreases in staff motivation levels. This professional acknowledges that some

varieties of non-cash rewards can actually work against day-to-day motivation if incongruent to

Page 8: Thesis

the needs of the organizational staff. However, Daniels does appear to herald the importance of

non-cash motivational incentives by citing that the nature of the work (such as job design and

levels of personal autonomy) is far more important as a determinant of productivity than that of

cash received for performance. Strategic Direction (2006) offers that companies might consider

flattening their organizational structure, in terms of reducing multiple layers of middle

management, as a means to boost motivation. This falls into the category of increasing worker

job-related autonomy by eliminating continuous managerial oversight and intervention.

Eliminating multiple management layers theoretically provides employees with a sense of

personal belonging and security in a method that is proposed as superior to cash incentives based

on trends in the contemporary worker regarding the fulfillment of various inherent psychological

needs. Messmer (2007) supports this notion by suggesting that increased responsibilities, off-site

team-building exercises, and frequent performance-related recognition are effective non-cash

motivational tools. Despite the aforementioned viewpoints regarding the suitability of non-cash

motivational incentives, Ritter & Taylor (1997) offer that today’s workers have no real,

measurable difficulty in landing comparable jobs in markets which function both efficiently and

quickly, thus it is important to ensure that cash-related incentives are congruent with the

competitive business environment. Essentially, the authors suggest that it is only compensatory

rewards, due to employee perceptions of ease of company exit in favor of new salary

opportunities that can sustain employee commitment and longevity to the firm without seeking

new employment incentives. Incentive (1989) offers that 1/3 of today’s companies use cash

incentives as a means to boost staff motivation, which might suggest that companies are

recognizing that cash rewards are the most viable methodology for improving internal staff

satisfaction levels. The authors indicate a variety of other non-cash incentives which have been

Page 9: Thesis

known to build positive motivation, however the underlying human drive is the receipt of cash as

a means to create perceptions of equity, trust and mutual reward. This would tend to illustrate that

only cash incentives really manage to fulfill the psychological needs of employees over that of

non-cash incentives.

Local Literature

One of the main agencies responsible for ensuring the welfare of the Filipino worker is

the DOLE (Department of Labor and Employment). DOLE’s responsibilities include setting the

minimum wage, ensuring safe working conditions, and creating occupational safety and health

( OSH) standards. It also has a “Productivity Improvement Program” to increase workers’

productivity in select manufacturing industries through improved working and living conditions.

The department is in constant dialogue with workers, employers, and their organizations with

regard to social and economic concerns, including environmental issues. DOLE and its close

links with the well-established NGO (Non-Governmental Organizations) network promote

greater bilateral participation in enhancing safety and health in the workplace while both

entrepreneurs and workers are encouraged to implement low cost improvements in work

conditions which can eventually lead to improvement in productivity and the general well-being

of the workers. Workers have been urged to increase productivity rather than demand for higher

wages in this time of economic difficulty. "Higher wages are unsustainable unless you increase

productivity. If factory raises wages and productivity remained low, it will close its shop in the

country and move to other countries where wages could be smaller," Socioeconomic Planning

Secretary Romulo Neri said. He said it is difficult to demand for wage adjustment without

increasing productivity in view of the current global economic slowdown.

Page 10: Thesis

Foreign Studies

Which variety of incentive is most effective at fostering employee motivation? Do noncash

incentives work as a long-term business strategy? Phipps, Bazley & Povey (2007) suggest that

non-compensatory, team-related rewards, such as the corporate-funded group dinner or activity

day are incentives which have been successful in boosting staff motivation levels. The goal of

such incentives is to lower the burdens on the corporate payroll budget whilst also creating an

internal organizational culture built on positive peer relations and team-building methodology.

However, the authors indicate that if the non-cash incentive does not appeal to the members of

the lower-level staff, it can actually de-motivate the workers. Other modern companies have

turned toward the utilization of luxury incentive packages as a means to boost employee

motivation, such as offering premium wine gifts or offering a prize package of modern

technologies such as presenting a DVD player or digital camera as a noncash incentive.

Local Studies

On 1991, Josephine Tuble of the University of Santo Tomas Graduate School made a

study that concerns the productivity and job satisfaction of workers in construction company in

Metro Manila. These results to productivity level that was rated on the whole as “good” due to

the following dimensions: quantity of work, quality of work, supervision required, attendance,

and conservation. Also, the respondents of this study were neither satisfied nor dissatisfied

because of low ratings made on promotion and pay aspects. In connection with this, the level of

productivity is correlated with job satisfaction with regards to the nature of work, supervision, co-

workers relationship and pay aspects. Moreover, sponsored by the American Studies Association

of the Phil’s. - Baguio Cordillera Chapter, Antonia Corinthia Naz accomplished a study regarding

the factors that influences the labor Productivity of miners in Benguet. With this, it has been

Page 11: Thesis

found that the productivity level vary according to mining methods and was significantly affected

by technical factors followed by economic factors and personal factors. Major problems on labor

productivity are: the need for more involvement in decision-making; thorough discussion on

miners’ concerns; that the company adopts a variety of training methods; the need to be informed

of the policies; the desire of workers for management to be more sensitive and responsive to

workers’ concerns and the necessity for more and better quality of tools and equipment for

underground work.

2.2 Research Framework

Conceptual Framework

The framework as depicted through the conceptual map (Fig 1.) presents the research

suppositions and lines of enquiry from the organization’s and employee’s perspectives. It is

assumed that an organization’s profile will have an influence on its philosophy which in turn will

monitor the practices. Likewise an individual’s characteristics will determine his/her needs which

will be manifested through the choices that they make. Role of the superior is assumed to have an

impact on how the rewards are practiced within the organization. The past experiences of the

individual employee with non-monetary rewards are said to impact their needs and the same is

expected of the organization and superior. Finally, some differences are expected between

employee choices and organization practices which when resolved may lead to positive outcomes

for the organization as well as the employees.

Page 12: Thesis

Fig 1. Research Paradigm

Theoretical Framework

The concepts of “incentive”, “reward” and “recognition” are quite interrelated and

complementary in the context of employee motivation. It is difficult to draw a line among them.

The broadest category is the “incentive” which refers to any means that makes an employee

desire to do better, try harder and expend more energy. It may be divided into two categories:

monetary incentives and non-monetary incentives. Monetary incentives involve granting of

reward in terms of money such as commissions, bonuses etc. Non-monetary or non-cash

incentives do not involve direct payment of cash and they can be tangible or intangible. Some

examples of this kind of incentives are; encouraging the employees by providing them with

autonomy in their job and participation in decision making, assigning challenging duties,

improving working conditions, recognizing good work through small gifts, letters of appreciation,

Non-Monetary

Rewards

1. Jewelry,2. Precious

Metals3. Automobi

le4. Health

care plan

Intrinsic Rewards

1. Challenging Task

2. Decision Making Process

3. Higher Rank4. Increased

Salary

Extrinsic Rewards

1. Pay Rice2. Bonuses3. Paid

Leaves4. Annual

RecreationalEtc.

Are Non-Compensatory Employee Rewards

Page 13: Thesis

plagues, tickets to restaurant etc., providing some services for the employees, organizing social

activities in the work place, etc. The difference between an incentive and reward may be noted as

while incentive aims to motivate future and encourage certain behavior, reward is the

appreciation for the accomplished behavior and it is a potential reinforce. Recognition covers

monetary and non-monetary rewards and it refers to crediting, encouraging and appreciating

individuals and teams who contribute, through their behavior and their efforts, to the success of

the organization. It provides after-the fact reinforcement for specific types of performance or

accomplishments and emphasizes what the organization values. Moreover, it helps to create a

sense of being a valued member of a successful organization. Examples of recognition are10

giving public praise, granting monetary and non-monetary rewards, celebrating and

communicating successes etc.

2.3 Hypothesis

This study is anchored to the following hypothesis:

Ho : There is no significant effect of non-compensatory rewards in the performance of the

employee

Ha : There is a significant effect of non-compensatory rewards in the performance of the

employee

2.4 Definition of Term

Compensation given in a transaction which does not involve cash.. A non-monetary reward

can consist of almost any material object such as jewelry, precious metals or an automobile for

example. In business, a non-monetary reward can also be a service such as improvements made

on a property or repairs done on a car.

Page 14: Thesis

Non-monetary compensation can include many different elements – from free coffee to a

company picnic or discounted parking. Most frequently, though, it refers to the value of more

traditional benefits.

Extrinsic rewards—usually financial—are the tangible rewards given employees by managers,

such as pay raises, bonuses, and benefits. They are called “extrinsic” because they are external to

the work itself and other people control their size and whether or not they are granted. In contrast,

Intrinsic rewards actually fulfill employee’s intrinsic factors or motivators and thus motivate

him. Examples include; giving challenging task, involving in decision making process, giving a

higher rank in hierarchy etc all these rewards do not required to have increased salary as well

and employee may be working at higher management rank without an increase in the salary and

still more motivated.

Employee incentive programs are programs used to increase overall employee performance.

Employee programs are often used to reduce turnover, boost morale and loyalty, improve

employee wellness, increase retention, and drive daily employee performance.

Non-cash rewards - Merchandise and other non-cash rewards are more often perceived as

separate from compensation. Accordingly, non-cash rewards tend to stand out as rewards for

performance, which enhances their long-term effect. Branded merchandise and other non-cash

rewards have high trophy value, bringing greater recognition to the recipient at the time of the

award and possessing a long-term lasting effect that can result in increased engagement in the

organizations goals.

Motivation - is the psychological feature that arouses an organism to action toward a desired goal

and elicits, controls, and sustains certain goal directed behaviors. For instance: An individual has

Page 15: Thesis

not eaten, he or she feels hungry, and as a response he or she eats and diminishes feelings of

hunger. There are many approaches to motivation: physiological, behavioral, cognitive, and

social.

Chapter 3

RESEARCH METHODOLOGY

3.1 Research Design

The approach to data collection and analysis will be both qualitative and quantitative

design, in order to utilize statistical information gathered from the proposed research instruments

as well as making a variety of subjective assessments of similar research data. The quantitative

design methodology will involve the production of an appropriate questionnaire designed to elicit

questions regarding cash versus non-cash incentives for productivity and efficient job

performance so as to generate data on the contemporary worker viewpoint of motivational

rewards. The qualitative approach to research will involve a series of semi-structured interviews

targeted at several different layers of management within different business environments.

3.2 The Sampling

The proposed sample group will consist of responses from 100 employees in a Philippine

Merchant Marine School (PMMS) with the questionnaire distributed to members of the

organizational staff upon management approval to conduct the study. Responses from both the

managerial sample and the subordinate sample will be compiled and analyzed in order to fulfill

the study’s research objectives on management viewpoint, employee viewpoint, and the overall

nature of motivational, performance-driven incentives.

3.3 The Instrument

Page 16: Thesis

Responses will be closed-ended on the questionnaires, structured in a multi-tick

format ranging from 1-5, exhibiting different cash and non-cash incentives and their overall

levels of importance to a variety of different organizational staff members.

3.4 Data-Gathering Procedure

The interviews will be structured using many closed-ended questions regarding

perspectives on cash versus non-cash incentives and how these have been effective or ineffective

at boosting long-term staff motivation. The semi-structured approach was considered as it will

provide the interview respondents with an opportunity to discuss issues not originally considered

in the interview design to provide unique insights into the phenomenon of employee motivation

and reward.

It is highly important to this study to gather the perspectives of both the modern worker as

well as the contemporary manager, who could be considered expert advisors regarding the current

nature of the business environment and its role in motivating performance. In order to determine

whether any noticeable or measureable trends exist regarding employee values pertaining to

reward incentives, the qualitative portion of the research study was most appropriate.

3.5 Statistical Treatment of Data

This proposed study methodology is most congruent to the fulfilling the research objectives

outlined in the introductory section as it will provide a wide variety of subordinate and

managerial perspectives on contemporary motivational theory whilst providing the opportunity to

determine whether management maintains a different viewpoint of cash versus non-cash

incentives over that of the contemporary subordinate. If congruencies exist (or noticeable divides

Page 17: Thesis

between opinion), the multi-instrument approach to research will provide the tools to determine

whether any measurable correlations exist in individual viewpoint.

1.

X̄=∑ fx

N,

RF= fNx100

Page 18: Thesis

Sir/Madam

We are students in Method of Research conducting a Research Study entitled “Are Non-Compensatory Employee Rewards as Efficient in Fostering Motivations as cash Incentive

In this connection may we request you to please answer diligently this questionnaires, out instrument in gathering data.

Your kind considerations and understanding is highly appreciated.

I. Please check the appropriate box that corresponds to your response.

1. Types of Employee Years in PMMS Administrative Staff Less than 1 year Members the faculty 1-5 years Admin-faculty 6-10 years

11-15 years 16-20 years

More than 20 years II. Please encircle your response where 1 as the least and 10 as the greatest 1 – least and 10 – Greatest.1. To what degree would the following non-cash incentive appeal to you: Luxury gift products such as wine baskets or gourmet foods? 1 2 3 4 5 6 7 8 9 10 2 To what degree would the following non-cash incentive appeal to you: Winning a trip to an exotic location as a reward for high productivity? 1 2 3 4 5 6 7 8 9 10 3. To what degree would the following non-cash incentive appeal to you: Off-site recreational activities, funded by the business, such as staff dinners or business conference invitations? 1 2 3 4 5 6 7 8 9 104. To what degree would the following non-cash incentive appeal to you: Merchandise as a reward option, such as DVDs or various modern technological products? 1 2 3 4 5 6 7 8 9 105. To what degree do you feel that cash incentives are LESS important than non-cash incentives? 1 2 3 4 5 6 7 8 9 106. To what degree would you prefer increased job autonomy (meaning less managementintervention and assessment of your job function and productivity) over that of a small-scale cash incentive? 1 2 3 4 5 6 7 8 9 107. To what degree effect of financial rewards on job commitment to Philippine Merchant Marine School?1 2 3 4 5 6 7 8 9 10 8. To what degree effect of non-financial rewards on job commitment to Philippine Merchant Marine School?1 2 3 4 5 6 7 8 9 10Please comment (in less than 50 words) on how you believe a company can best motivate you to perform to high expectations when using different incentives? 9.To what degree do you feel that health plans are efficient in Fostering Motivations then cash incentives?1 2 3 4 5 6 7 8 9 10

Page 19: Thesis

4.0 Pilot Study Feedback

This proposed study developed preliminary research instruments in the pursuit of testing

the viability of the chosen research approach. Five individuals with experience in the current job

market were identified and were distributed a pilot questionnaire regarding cash and non-cash

motivational incentives. This pilot study was conducted to ensure that the developed questions

were congruent with the proposed research objectives and to guarantee that the nature of the

questionnaires was clear and concise for utilisation on a broader sample scale. Appendices A

illustrates the questionnaire utilised for this pilot study.

Page 20: Thesis

The structure of the questionnaire illustrated several varieties of non-cash incentives,

asking the five respondents to indicate to what degree they were inspired or otherwise interested

in differing non-cash incentives. In virtually all non-cash incentive varieties, the respondents

indicated very low interest in items such as luxury food products, trips, off-site recreational

activities to boost teamwork, and various technological merchandise incentives. When asked

whether they felt cash incentives were less important than non-cash incentives, the respondents

overwhelmingly indicated a high perception that cash is far more motivating than non-cash

incentives with an average score of 8.1 out of a possible 10.

The results of the preliminary pilot study tended to illustrate a higher employee

favourable attitude toward cash-based incentives as a means to foster productivity and boost

overall motivation. Interestingly, all of the five respondents indicated that increased autonomy as

a motivational tool maintained very little importance, scoring an average score of 3 out of the

possible 10 points as a maximum satisfaction element in the workplace. This somewhat conflicts

with the literature available suggesting that autonomy is a viable management tool for fostering

motivation, offering the opportunity to focus around issues of autonomy in the construction of

the tangible research instrument to be utilised in this proposed study. Autonomy, from a

managerial perspective, will be incorporated into the research interview template to determine

whether employee views on this practice are congruent or widely different than that of

leadership. This will determine, theoretically, whether autonomy as a non-cash motivational

incentive can be considered viable from both management and the subordinate levels or whether

this is a potentially antiquated element of non-cash reward which pales in comparison to cash

based productivity rewards.

The pilot study also gave this researcher practical experience in distributing and

Page 21: Thesis

managing multiple data in terms of compiling and comparing research results. This quantitative

approach to the research will assist in the tangible, broader research study to determine whether

specific employee trends exist regarding the value of non-cash incentives. Because the initial

piloted sample group indicated such low levels of satisfaction and interest in the variety of

noncash incentives listed in the pilot questionnaire, this provided the opportunity to list a wider

variety of potential non-cash incentives (or than those presented in the pilot study) to determine

whether there is a specific non-cash variety which is more effective or whether employees just,

as a matter of preference and personal value, desire money as a reward for productivity. Hence,

the pilot study created the necessity to build a broader employee-targeted questionnaire utilising

a wider variety of potential non-cash incentives for the tangible research study. If employee

perceptions of multiple non-cash incentives return a very low interest rate in comparison to

cashbased rewards, this will clearly indicate the state of the contemporary worker regarding the

most

efficient motivational tools available for today’s business leaders.

5.0 References

Daniels, Aubrey C. (2000). Bringing Out the Best In People: How to Apply the Astonishing

Power of Positive Reinforcement. McGraw-Hill Professional: 87-91.

Incentive. (1989). ‘Employee motivation: facts survey – sales incentives’. 163(9): 49.

Philiotis, Alex. (2007). ‘Incentive Critique’. Promotions & Incentives. London: C9-C11.

Phipps, S., Bazley, J. & Povey, G. (2007). ‘Motivation Clinic’. Promotions & Incentives.

London: S6-S8.

Messmer, Max. (2007). ‘What employees want: 4 meaningful ways to keep them motivated’.

NPA Magazine. 6(6): 24B.

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Ritter, J. & Taylor, L. (1997). ‘Economic Models of Employee Motivation’. Working Paper

Series. Federal Reserve Bank of St. Louis. Retrieved 7 Mar 2008 from

http://research.stlouisfed.org/wp/1997/97-006.pdf.

Strategic Direction. (2006). ‘New generation organizations; Motivating employees through

creative working practices’. Bradford. 22(11): 22. ThesisTown.com