Reward System and Employee Motivation in Ceylon Electricity Board, Jaffna

Abstract

In the competitive world, employees are very important factor in order to achieve the organizational goals and objectives. So that nowadays firms need employees who are committed to their firms. Intrinsic and extrinsic reward systems are used by the organization to make desirable changes in employee performance. Reward system is an important tool that management can use to channel employee motivation in desired ways. In every organization, motivation is most important to achieve their goals and objectives, increase the productivity and maximize their profit margin towards the employees of the organization are well motivated. If any organizations have a good motivation policy, the workers do their work with effectiveness and commitment. The researcher analyzed the relationship between reward system and employee motivation. This present study selected the Electricity Board of Jaffna district. Out of 314 employees, 90 employees were selected and surveyed on a random basis. There were four hypotheses drafted and tested through correlation and regression models. Study found that there is a positive relationship between reward system and employee motivation, extrinsic rewards have better relationship with motivation of the employees than intrinsic rewards. Therefore, Ceylon Electricity Board should give its consideration mostly on extrinsic rewards to achieve high performance from its employees. Otherwise, it cannot reach the level of output expected in the standard. Both rewards are important, but extrinsic rewards play a major role in the process of motivation of employees.