ROLE OF PERFORMANCE BASED REWARD SYSTEM IN IMPROVING EMPLOYEE’S PRODUCTIVITYAND JOB SATISFACTION: ANALYSIS OF GOVERNMENTAND PRIVATE SECTOR OF PESHAWAR

Abstract

Rationale of this research study is to answer the question that how the performance
based rewards system increases the productivity of an employees. The study was
significant for quantifying the link between rewards, tied with employees' performance
and their productivity and was also significant for guiding the researcher to find out the
kind of rewards that are intrinsic or extrinsic and results in high employee motivation
and thus job satisfaction. It is also helpful in finding out that how performance based
rewards affects employees' productivity in government and Private sector of Peshawar
region. Total 550 questionnaires were distributed in different government and private
organizations out of which 510 were received with a response rate of 92%. Productivity
was positively related with Job satisfaction (p<0.01), similarly Productivity was
positively related with reward system (p<0.01). It is clear from this research that the
satisfied and highly motivated employee stays in the organization for longer time and
transforms the inputs in more productive way than an unsatisfied and low motivated
employee. In the recommendation part of the study, it has been suggested that
organizations provide such an environment which create better opportunity for their
employees and utilize the resources in an improved manner, minimize all those factors
which create biasness and injustice whereas employer's understand the desires with the
productivity of an individual employee. In order to achieve success, organizations must
retain their employees and provide them better advancement opportunities.