Luận văn thạc sĩ UEH impact of rewards management system on employees job performance through work

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

------------------------------

Nguyen Thi Ngoc Suong

IMPACT OF REWARDS MANAGEMENT

SYSTEM ON EMPLOYEE'S JOB

PERFORMANCE THROUGH WORK

MOTIVATION: A STUDY IN COMPANIES

IN HO CHI MINH CITY

MASTER OF BUSINESS (Honours)

Ho Chi Minh City - Year 2014

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

------------------------------

Nguyen Thi Ngoc Suong

IMPACT OF REWARDS MANAGEMENT SYSTEM ON

EMPLOYEE'S JOB PERFORMANCE THROUGH

WORK MOTIVATION: A STUDY IN COMPANIES IN

HO CHI MINH CITY

ID: 22120069

MASTER OF BUSINESS (Honours)

SUPERVISOR:

Dr. TRAN HA MINH QUAN

Ho Chi Minh City - Year 2014

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ACKNOWLEDGEMENT

I would like to express my sincere appreciation and gratitude to the people who supported

and provided me necessary encouragement to complete the thesis.

To my supervisor, Dr. Tran Ha Minh Quan for his kindly continuous support, guidance,

advise and correction of my thesis.

To colleagues and staffs who willingly participated in the study and provided necessary

data for the study to be completed.

Lastly to my partner, family and friends who encouraged and believed in me.

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ABSTRACT

Nowaday’s all firms or business entities are facing so many issues related to

employee’s job performance and employee’s work motivation. Getting people feel

motivated to do their best work, is always one of the most challenges of managers in any

organization. And without motivation employees will not put up their best and the

companys performance would be less efficient especially in developing countries where

working conditions are unattractive. As rewards have much impact on employees, which

increase the level of job performance, this study was conducted to is to find out "Impact

of rewards management system on employee’s job performance through work

motivation" in companies in Ho Chi Minh City. With the analysis of data collected

through Questionnaires distributed by respondents, this study indicates that there is a

positive relationship of four mainly focused factors: pay factor, benefits, promotion and

recognition of rewards management system, motivation and job performance of

employees.

Keywords: impact, rewards, rewards management system, work motivation, job

performance.

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TABLE OF CONTENTS

Contents

ACKNOWLEDGEMENT................................................................................................... 1

ABSTRACT ........................................................................................................................ 2

TABLE OF CONTENTS .................................................................................................... 3

Chapter I. INTRODUCTION.............................................................................................. 5

1.1 Research background.................................................................................................. 5

1.2 Management problem................................................................................................. 5

1.3 Research gap............................................................................................................... 6

1.4 Research objective...................................................................................................... 7

1.5 Research question....................................................................................................... 7

1.6 Research significance ................................................................................................. 7

1.7 Research scope ........................................................................................................... 8

1.8 Research structure ...................................................................................................... 8

CHAPTER 2. LITERATURE REVIEW........................................................................... 10

2.1 Motivation ................................................................................................................ 10

2.2 Theories of motivation ............................................................................................. 11

2.3 Total rewards management system .......................................................................... 15

2.4 Employee job performance....................................................................................... 17

2.5 Relationship among rewards management system, motivation and employee’s job

performance .................................................................................................................... 18

2.6 Hypotheses ............................................................................................................... 18

CHAPTER 3. RESEARCH METHODOLOGY............................................................... 23

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3.1 Research design ........................................................................................................ 23

3.2 Data source and collection method .......................................................................... 23

3.3 Measurement scale ................................................................................................... 24

3.4 Sampling design ....................................................................................................... 26

3.5 Data analysis............................................................................................................. 26

CHAPTER 4. DATA ANALYSIS.................................................................................... 29

4.1 Descriptive statistics of sample ................................................................................ 29

4.2 Measurement scale ................................................................................................... 30

4.3 Exploratory Factor Analysis (EFA) ......................................................................... 31

4.4 Correlation Analysis................................................................................................. 36

4.5 Regression Analysis ................................................................................................. 38

4.5.1 Regression assumption checking........................................................................... 38

4.5.2 Hypothesis testing.................................................................................................. 40

4.6 Analysis of Variance (ANOVA) .............................................................................. 44

CHAPTER 5. CONCLUSION AND RECOMMENDATION......................................... 47

5.1 Conclusion................................................................................................................ 47

5.2 Recommendations .................................................................................................... 48

5.3 Limitations................................................................................................................ 49

REFERENCES .................................................................................................................. 50

APPENDIX ...................................................................................................................... 55

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Chapter I. INTRODUCTION

This chapter represents about introduction of the research which includes

research background, management problem, gap, objectives, questions significance,

scope and structure of the research.

1.1 Research background

Nowadays, it is considered that human resource is the most important factor

leading to the success or failure of a business all over the world, especially in Vietnam.

Development of human resource is one of the most important works in the development

strategy in any organization. A company can have a modern technology, good quality of

service, and even good infrastructure, etc but it may hardly survive and build competitive

advantages in the long term period if lacking of labor force doing work effectively.

As Lawler (2003) said, the way that people are treated increasingly determines

whether an organization will prosper or even survive. An effective organization has to

make sure that there is a strong cooperation and satisfaction among employees. And in

order to make employee perform their best in the organization, there is a need of effective

motivation at various employee’s levels (Bedeian, 1993).

Motivation is a process that energizes, directs, arouses and sustains the behavior

and performance of the employees (Luthans, 1998). Thus, motivation is the process that

stimulates the employees to put their full efforts in order to achieve a desired task (Ishfaq

Ahmed, 2011). And one considerable way to make employees motivated and perform the

best in their job is using rewards management system (Deeprose, 1994). Because, the

rewards have major impact on organizations capability to catch, retain and motivate high

potential employees (Fay and Thompson, 2001).

1.2 Management problem

As the largest commercial and economic center of Vietnam, the economic

activities of Ho Chi Minh City are always vibrant, and strongly attractive for foreign

investments. The economy in this city has grown at a rate of approximately 10% per year

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