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Research On The Impact Of Intrinsic And Extrinsic Rewards On Affective Commitment And Turnover Intention Of Employees ——Evidence From Telecommunication Sectors Of Pakistan

Posted on:2022-05-06Degree:DoctorType:Dissertation
Country:ChinaCandidate:REHAN SOHAIL BUTTFull Text:PDF
GTID:1489306737459104Subject:Service Economy
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The term “reward” is a form of acknowledgment for service,merit,or hardship and is widely used in organizations in the context of employee's job performance.Reward always creates a positive work environment in an organization.It not only motivates the employees but also helps in job retention in the organization.So,a reward system should be properly organized to attract and retain qualified employees and motivate them to perform better.The reward system includes monetary and non-monetary rewards(i.e.,incentives,special benefits)and(i.e.,recognition,empowerment,compliment),which play a significant role in motivating and retaining employees with high performance in organizations.The intrinsic and extrinsic rewards recognize employees' worth,self-esteem,and achievements through monetary compensation.On the other hand,non-financial rewards are intangible and focus on emotional value.The importance of non-financial rewards has increased in organizations because employees seek a variety of rewards for their job performance.This reward system,which involves returns other than just monetary compensations,is significant to acknowledge their contributions.Moreover,labor-intensive industries such as hospitality,financial institutes,prefer non-financial rewards to reduce costs.Therefore,non-financial rewards are being widely spotlighted and utilized to motivate employee's job performance.Summing up,reward plays a vital role in motivating employees to better their job performance.It can particularly be viewed as an optimal means to promote the actions of employees.This study classifies rewards into intrinsic and extrinsic rewards based on previous research.The intrinsic rewards dimensions include compliment,opportunity,and empowerment,whereas extrinsic rewards include promotion,incentive,and special leave.Job satisfaction can refer to employees' pleasant and positive emotional states that gained experiences from the company,where the job satisfaction explains the performance by comparing actual and expected results.Burnout can be defined as consistent interpersonal job stress faced by the employees in the organization,resulting from disagreements between employees and organizations.Burnout emanates when there is a disparity between the job description and employee's desire toward their jobs.Traditionally,most high-level authorities assumed that job conditions are the primary cause of burnout with individual factors being less important.This study analyzed the role of affective commitment in the relationship between intrinsic and extrinsic rewards with the mediating roles of job satisfaction and job burnout with the moderating effect of workplace well-being on effective commitment.Affective commitment can be defined as the state in which an employee is united with their employed company.Affective commitment is a significant factor determining the degree of dedication and loyalty toward the company.Employees who are emotionally committed tend to reach the company's goals and maintain a relationship.This can be expressed as the employees desired emotion,attachment,or belonging feeling through their emotional sympathy for the intrinsic and extrinsic rewards.This study also examined the role of turnover intention with intrinsic and extrinsic rewards and the role of job satisfaction and job burnout as a mediator with the moderating effect of workplace well-being.Turnover intention is an employee's continuous deliberation over withdrawal from the organization and consideration of other jobs.When the employee turnover rate becomes high,the organization loses high-quality human resources and incurs heavy recruitment and training expenditure.The telecom sector turnover rate is particularly high because of complex factors,and it directly influences the quality of service.As a result,many researchers and practitioners continue to investigate how to reduce turnover intention rates and deliver better performance.This study follows these research objectives: the first objective is to examine the effect of intrinsic and extrinsic rewards on affective commitment and turnover intention.The second objective is to identify the influence of intrinsic and extrinsic rewards on job satisfaction and burnout.The third objective explores the direct effects of job satisfaction and burnout on affective commitment and turnover intention.The fourth objective investigates the indirect effects of job satisfaction and burnout in the relationship between intrinsic and extrinsic rewards on affective commitment and turnover intention.The fifth objective is to explain the moderating effect of workplace well-being on the relationship of job satisfaction and job burnout with affective commitment and turnover intention.This study contributes to the literature of intrinsic and extrinsic rewards on affective commitment and turnover intention by using Frederick Herzberg's theory,cognitive evaluation theory(CET),and JD-R model.This study formulated a research model that consists of several factors in telecom sector employees.Moreover,to test the conceptual model,this study applied partial least square(Smart PLS)software with structural equation modeling(SEM)on the data gathered through a self-administered survey.The researcher conducted a cross-sectional study which includes one-time data from the respondents.The survey was conducted on the five big telecom companies of Pakistan and distributed 700 questionnaires among lower,middle,and upper-level employees.This study gathered 515 effective responses from the participants with a participation rate of 73.57%.The remaining 185 questionnaires were discarded during the initial screening of data because of unengaged and incomplete responses.Furthermore,for the structural model's fitness,this study used Smart PLS software to test the measurement model analysis,reliability,and validity analysis.Additionally,this study used statistical packages for social sciences(SPSS 25 version)and Smart PLS-3.2 version for data screening and hypotheses testing.This study findings show that intrinsic and extrinsic rewards have a positive and significant influence on affective commitment.Moreover,results indicate that intrinsic rewards have positive and significant effect with job satisfaction and extrinsic rewards have positive and significant effects on job satisfaction,meanwhile,negative and significant effect with burnout.The findings further illustrate that job satisfaction has a positive and significant influence on affective commitment while job burnout has negative and significant effect on affective commitment.Furthermore,results show that job satisfaction has a positive and significant mediating effect in the relationship between intrinsic,extrinsic rewards,with affective commitment.Meanwhile,job burnout has a negative relation in between the mediating effect of intrinsic rewards with affective commitment with significant results,and job burnout has negative effect with significant relation in the mediation of extrinsic rewards with affective commitment.Additionally,results show that workplace well-being has a significant moderating effect in the relationship between job satisfaction,job burnout,and affective commitment.Besides,results indicate that intrinsic and extrinsic rewards have a negative with significant influence on turnover intention,and satisfaction has ansignificant effect on the relationship between intrinsic,extrinsic rewards and turnover intention.The results illustrate that job burnout has negative and significant effect in the relationship between intrinsic rewards and turnover intention.Moreover,job burnout has a significant effect in the relationship between extrinsic rewards and turnover intention.Lastly,findings show that workplace well-being has a negative and significant relation.Moreover,workplace well-being has negative and insignificant moderating influence on turnover intention with job satisfaction and job burnout.This study contributes to the research of human resource management and psychology by testing the direct,indirect,and moderating role of intrinsic and extrinsic rewards on job satisfaction,job burnout,affective commitment,and turnover intention,and workplace well-being among the telecom sector employees of Pakistan.The results of this study provide significant meaning for researchers,policymakers,managers,and academicians.The novelties of this study are as follows:(1)This study focuses on the effects of extrinsic(promotion,incentive,special leave)and intrinsic(opportunity,compliment,and empowerment)rewards on job satisfaction,burnout,affective commitment,turnover intention,and workplace well-being in the telecom company employees of Pakistan.Previous studies focus on the intrinsic and extrinsic rewards: such as influences of bonus,autonomy,mastery,compensation,and punishment on employee job satisfaction,employee turnover,and organizational performance of employees in Pakistan.This study enhanced the connotation regarding intrinsic and extrinsic rewards and found the positive and insignificant influence of job satisfaction,job burnout,workplace well-being,affective commitment,and turnover intention among employees.(2)The indirect effects of job satisfaction,burnout in the relationship between intrinsic and extrinsic rewards on affective commitment,the turnover intention of telecom sector employees in Pakistan are less and under-explored.This study contributes to study about human resource management and organizational behavior by taking job satisfaction,burnout as mediators and identifying the importance of intrinsic and extrinsic rewards on affective commitment and turnover intention.This research discussed the moderating effect of workplace well-being.Based on the results,this study can put forward a more specific improvement plan by adding workplace well-being as a moderator in the relationship between job satisfaction,job burnout,affective commitment,and turnover intention in the telecom company employees of Pakistan.(3)This study provides an extension to theoretical foundation by using the role of “Frederick Herzberg Theory,” “Cognitive Evaluation Theory,”(CET)and the “Job Demands-Resources Model”(JD-R Model)in the framework of job satisfaction,job burnout,affective commitment,and turnover intention.Current literatures are not empirical analysis that explored the relationship of intrinsic and extrinsic rewards for employees on affective commitment and turnover intention in the Pakistani context.
Keywords/Search Tags:intrinsic rewards, extrinsic rewards, job satisfaction, job burnout, affective commitment, turnover intention, workplace well-being
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