Impact of Intrinsic Rewards On Employee Motivation in PPL (Repaired)

Chapter one
INTRODUCTION
1.1 Purpose and Significance of Study
Due to dynamic environment and increased competition organizations today need motivated
employees to survive and flourish. Talented employees are the pillars of an organization but to
keep them motivated is a challenging task as said by chimianikire et al, (2007). Richard (2006)
claims that keeping employees satisfied and content with their work is lucrative for the
organization itself so the management focuses to develop best compensation packages to
increase employee commitment. According to Clifford (1985) different kinds of rewards have
a varied impact on employee motivation. Employee perception of the reward plays a vital role
in his job satisfaction, the more valuable reward an employee perceives, the more is he
motivated because everyone has different priorities. Rewards can be categorized as
extrinsic/financial or tangible rewards and intrinsic/non- financial or intangible rewards.
According to Linz et al, (2010) money as a reward not necessarily motivates employees,
sometimes non-monetary rewards such as appreciation and learning opportunities are required
for boosting employee morale. Amabile (1996, 1998) and Schwartz (1990) explain that
intrinsic rewards lead to intrinsic motivation, the inner desire and interest of a person to attain
some specific goal whereas extrinsic rewards lead to extrinsic motivation in which a person
performs his tasks with the pressure of getting reward or with the fear of getting punished.
There are several motivational theories, amongst them Frederick Herzberg’s theory of
motivation when experimented on 2 groups of workers , proved that motivation factors such
as appreciation, responsibilities, sense of accomplishment ,interesting work and advancement
opportunities offered by the job contributed 81 % in motivating employees whereas hygiene
Spring 2016 Student ID No. 22588
factors on the other hand such as salary , working environment ,interpersonal relationships,
status ,company policy and supervision contributed only 19% in employee job satisfaction.
1.1.1 Introduction to the Organization
Pakistan Petroleum Limited (PPL) is the pioneer of natural gas industry in Pakistan and it is
one of the major leaders in energy sector .It provides 20 % of Pakistan’s natural gas and it also
contributes in producing Liquefied petroleum gas and Natural gas liquid. Currently its
chairman is Waqar .A. Malik. Pakistan Petroleum Limited has 8 producing fields in Sui,
Kandhkot, Adhi, Mazarani, Chachar, Adam, Adam west and Kinza.
Pakistan Petroleum Limited was initially established as a public limited company in June
2015.Burmah Oil Company (BOC) U.K, held its major shares .In 1997 BOC sold its shares to
the Government of Pakistan. Currently the company’s shares are divided between government
owning 68 % of total shares, 25% shares are owned by private investors whereas PPL
Employees Empowerment Trust owns 7.5 shares that are transferred to employees under
Benazir Employees Stock Option Scheme (BESOS). Major operations in which PPL is
engaged is the extraction, production and distribution of Crude oil, Liquefied natural gas and
liquefied petroleum gas. The following are the different departments at PPL.
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Figure 1.1: Core Areas and Support Departments at PPL
HUMAN
CORPORATE INFORMATION ASSETS
RESOURCE
SERVICES TECHNOLOGY OPERATION
MANAGEMENT
FINANCE & BUSINESS INTERNAL

PROCUREMENT
PLANNING DEVELOPMENT AUDIT
TECHNICAL
EXPLORATION
SERVICES
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Figure 1.2: Pakistan Petroleum Limited Organization Chart
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1.1.2 Intrinsic rewards policy at Pakistan petroleum limited
Pakistan petroleum limited (PPL) believes in providing all means of support and appreciation
to its employees. It is vital for the organization to express the extent to which it values its
employees .At PPL the board of directors have included intrinsic rewards along with extrinsic
rewards as an essential part of their rewarding system that is applicable for all the employees
throughout the company. It includes officers, shift workers (both male and female), line
workers, contractual workers and managers. There is one manager of each department who has
an experience of 15- 20 years in PPL. PPL believes that extrinsic rewards (money) pressurize
the employees’ to complete their tasks and employees focus on completing their work or
reaching targets only .Intrinsic rewards on the hand develops a sense of responsibility,
accomplishment, accountability and it leads to a healthy competition among employees in the
workplace as recognition, empowerment and professional growth opportunities for a specific
employee reflects his competence level and dedication to the company. According to PPL,
intrinsic rewards are equally important as extrinsic rewards and therefore there should be
balanced compensation system of an organization as it motivates the employees not just to earn
money but the employees become enthusiastic towards their work and participate, socialize
and focus on giving excellent performance along with the ways to enhance their performance.
The following are different forms of intrinsic rewards offered and currently being practiced in
PPL:
1-Empowerment
2-Recognition
3-Professional Growth and development Opportunities
Empowerment:
PPL has empowered employees at each level to make work related decisions and this
authorization is according to the nature of their work and the employees’ talent and expertise.
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Decision making power is for all the employees throughout the organization and it include
employees from Managing director to field workers.
Recognition
PPL don’t leave a stone unturned when it comes to appreciate employees. PPL believes in
appreciating employees through different methods that make the employees feel valued in front
of their colleagues. PPL believes in “rewarding on the spot” and other recognition practices to
motivate its employees specially field workers.
Professional Growth Opportunities and employee development programs
There are numerous growth opportunities are made available for the employees. PPL engages
the employees in various activities, provide them training, offer foreign tours, provides
educational support that grooms the employees professionally .There is job enrichment which
makes the employees a multi tasker and they learn various deficient skills. In addition the
organization provides informal career counselling to guide employees about their career.
1.2 Problem Background
This study includes the analysis of the Impact of Intrinsic rewards on employee motivation in
Pakistan petroleum limited company that is a renowned semi government oil company. The
study examines the level of employee motivation intricate through intrinsic rewards such as
empowerment, recognition and professional growth that provides learning and advancement
opportunities to employees.
Intrinsic rewards are often underestimated and overlooked as a motivating tool. The dilemma
is that even today ,some organizations still prefer and value extrinsic rewards over intrinsic
rewards just because of a misconception that only extrinsic rewards (Salary, increments ,etc.)
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enhances an employee’s motivation ignoring the fact that not every position in a company
needs financial rewards for motivation .
Furthermore, although extrinsic rewards enhance the financial status of employees but they do
not satisfy his Self-esteem and Self-actualization needs because intrinsic rewards is the only
form of rewards that make the employee’s work more interesting than before, so the employees
are compelled towards the work itself for completion and exceptional performance . Intrinsic
rewards such as empowerment, Task autonomy and significance, professional growth,
constructive feedback, appreciation and new learning opportunities leads to career growth and
professional development of employees. On the other hand these factors equally contribute in
motivating the employees at each level as it creates job satisfaction and the employees feel a
significant contribution towards achieving the organization’s overall objectives. There is
another misconception that these factors only motivate managers to perform inherently for
novelty in their work because research and practical implications in some companies show that
intrinsic rewards positively inclines non managerial employees towards self-determination and
an applaud able performance powered by enthusiasm. In this way organizations can have a
competitive advantage in the industry through energetic employees.
Furthermore recent research has shown that most of the employees these days, especially
young employees consider extrinsic rewards traditional and mainstream due to which they seek
contemporary and advanced methods of being motivated.
Thus now there is a significant emphasis on the provision of different types of intrinsic rewards
to employees at all levels so that they have self interest in their work and they consider
organizations goals as their goals. Historically this was lacking in the organizations
philosophy.
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1.3 Problem Statement
The research study is inclined to determine that which intrinsic reward is more effective to
increase employees’ motivation level in Pakistan Petroleum limited.
It is mandatory to keep employees motivated through the work itself too. The research is
conducted on Pakistan Petroleum Limited Company, located in Karachi with the aim to
investigate that does the company believe in intrinsic rewards and promote employee
motivation through it or not and how do they implement this practice and what employee
cradles are considered appropriate for exercising intrinsic rewards.
1.4 Research Questions
The research is conducted on Pakistan petroleum limited and the questions that should be
addressed are:
 Does the organization believe in intrinsic reward policy?
 How does the organization conceptualize intrinsic rewards?
 What type of intrinsic rewards is being practiced currently in the organization?
 What is the impact of intrinsic rewards on employee motivation?
 Which intrinsic reward is more effective to increase employees’ motivation level
in Pakistan Petroleum limited?
 Do empowerment, recognition and professional growth opportunities and
employee development programs significantly impact employee motivation?
1.5 Research Hypotheses
1.5.1 Hypothesis 1:
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Ho: Intrinsic rewards do not have any significant positive impact on employee’s motivation at
PPL.
Ha: Intrinsic rewards have a significant positive impact on employee’s motivation at PPL.
1.5.2 Hypothesis 2:
Ho: Empowerment does not have any significant positive impact on employee’s motivation at
PPL.
Ha: Empowerment has a significant positive impact on employee’s motivation at PPL.
1.5.3 Hypothesis 3:
Ho: Recognition Programs do not have any significant positive impact on employee’s
motivation at PPL.
Ha: Recognition Programs have a significant positive impact on employee’s motivation at PPL.
1.5.4 Hypothesis 4:
Ho: Professional Growth opportunities and employee development programs do not have any
significant positive impact on employee’s motivation at PPL.
Ha: Professional growth opportunities and employee development programs have a significant
positive impact on 'employee’s motivation at PPL.
1.6 Objectives of Study
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The objectives of the study are:
 To determine Intrinsic Reward Policy and its elements in Pakistan Petroleum Limited.
 To determine the organization’s philosophy regarding Intrinsic Rewards.
 To determine the impact of Intrinsic Rewards on employee motivation at Pakistan
Petroleum Limited.
 To determine which Intrinsic reward is more effective to increase employees’
motivation level in Pakistan Petroleum limited.
 To determine the impact of empowerment, recognition and professional growth
opportunities on employee motivation?
1.7 Scope of the Research
The scope of this research will examine how much the employees are motivated when they
receive intrinsic rewards apart from the extrinsic rewards specially empowerment, recognition
and professional growth opportunities prevalent inside the organization. The scope of this
research will examine that how much motivational impact these intrinsic rewards inject . About
132 employees of Pakistan petroleum Limited company are investigated and their responses
are analyzed. Final results and conclusion will be based on those who provided their feedback
through questionnaire and the interview conducted from the Hr. Manger at PPL.
1.8 Limitations of this Study
This study has some limitations, as defined below:
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I. Target audience for this study were employees working at PPL Head office and the
IRP implemented at PPL, so the results cannot be generalized for any other
organization.
II. Data availability was a major limitation due to confidentiality concerns of organization.
III. Stipulation of Short span of time for this detailed study is also one of the limitation.
IV. Employees’ response are dependent on specific time and environment .They may
respond in a different manner in a different context, age, qualification, job title and
experience.
V. The different cultural background of individuals may effect on the person’s belief and
standards which might leap to distorted results.
VI. This study was carried out by assuming other variables constant.
VII. Incorporation of any change in the policy or working condition of organization may
affect the implication of the study.
1.9 Prospects of Further Research in the Area
I. The study can be enhanced by using same label of participant’s i.e. white collar
employees of another organization of similar industry such as SSGCL, PSO, BYCO,
ODGCL, PRL, NRL, and ARL.
II. As organizations do not focus on IR (intrinsic rewards) for employees, considering the
fact that this research can be further enhanced by evaluation of employees’ motivation
level achieved from IR (Intrinsic rewards).
III. The area of this study was confined only to PPL Head office situated in Karachi.
However, further research can be carried out by extending the area of research to
different operational units of PPL such ADHI, SUI, MAZARANI, KANDHKOT.
IV. The study can further be enhanced by evaluating the impact of IR (intrinsic rewards)
on other aspects / independent variable such as autonomy, competence, sense of
belongingness, mastery, relatedness and inherent satisfaction.
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1.10 Ethical Considerations Involved
I. Ethical considerations during the study were kept in mind .The study was all done with
the approval of management and up to the degree that was acceptable for the
organization.
II. Considering time a virtue, the interview was conducted as scheduled, advised by the
concerned.
III. Standardized questionnaire was designed to avoid exposing confidential information
regarding company policy, procedures and practices.
IV. Employee privacy was also maintained by not mentioning their names on feedback
forms because it is as important as the company privacy.
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1.11 Conceptual Framework
FIGURE 1.3: CONCEPTUAL FRAMEWORK
The conceptual framework clearly shows that intrinsic rewards such as empowerment,
recognition and professional growth opportunities and development programs have a
relationship with employee motivation. Here motivation is a dependent variable whereas
empowerment, recognition and professional growth and development opportunities are
independent variables that can have a positive or a negative relationship with employee
motivation..
1.12 Organization of Thesis
The thesis will comprise six chapters, a list of references / bibliography and appendices.
Chapter 1 will constitute the problem background, aim of the research, research
questions/hypothesis and objectives and introduction to the organization/sector over which the
research is being conducted etc.
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Chapter 2 will provide information on research methodology – nature and kind of research,
sample size, sampling method, data collection methods employed during the study, kind of
data collected, and the way the data is integrated.
Chapter 3 will provide critical review of the existing literature containing the critical academic
debate about (the topic) with the views of the academicians’ and practitioners’ on the matter.
Chapter 4 will comprise the research data of both kinds – primary as well as secondary –
collected and integrated. It will also show findings of the data and their interpretation and
analysis.
Chapter 5 will comprise a critical debate on the study drawing on the literature review and
contrasting it with the findings of this study.
Chapter 6 will constitute recommendations and conclusions to the study.
1. Time Horizon
Like a characteristic master’s degree thesis work, this research work will be time constrained
and, accordingly it will be resorted to short-term and cross-sectional study instead of adopting
a longitudinal approach.
2. Time Scale
This research will be submitted in May 2016.
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Chapter -Two
LITERATURE REVIEW
2.1 Motivation
Every organization though it is a multi-national or a government organization, desire that its

employees function according to organizational rules and regulations so that the organization
can establish not only a link with the society and its stake holders but also develop a good
reputation across the world. Organizations today should revise their policies and procedures
and ensure that they are providing the best fit of guidance and remuneration to its employees
because employees are the foundation of an organization through which it meet its entire
obligations and satisfy its stakeholders. Therefore it’s vital for the upper management to
develop positive and healthy relationship with the employees at all levels as it will make the
workplace not only a peaceful place to work but the management would also be able to rely on
its staff performing their assigned tasks honestly and according to the performance standards
and organizational rules and regulations. In successful companies, management expects its
employees to take initiative continually develop and learn new skills and be proactive and
responsive to the changing business needs. On the other hand, the employees too have certain
expectations from their organization such as good salary, safe working conditions, challenging
work and fair treatment. It depicts that it is a give and take relationship in which whatever the
management invests in its employees, it gets the same output as a result that could be best or
worst it depends on the type of organization ,its values and ambitions and these factors vary
from organization to organization.HR department is a vital component of every organization
that functions basically for the employee needs and expectations and through it the
organization can address the concerns and issues of its employees, measure their performance,
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recognize them, give good salary and reward to its employees in order to make them
committed to the organization and keep them motivated that is really important.
According to them it is a psychological process that allows us to take initiatives and have a
clear understanding of the tasks one is performing. Motivation level determines how
enthusiastic and willing an individual is to be responsible and accountable for a specific task.
Bedeian (1993) views motivation as an internal drive that accelerates the motivation level and
augment an individuals' performance .According to Khadim et al. (2003), motivation of an
employee depicts what his heart and brain direct him. International journal of business science
(vol.3 No. 21; November 2012) suggested that Motivation originates from the term "movere"
that means to persistently strive for ones targets, It further added that motivation means to
continuously exert efforts to get the desired output on the basis of which employee is rewarded.
According to Luthans (2005) motivation is like an enforcement to attain a certain assigned task
with self-interest and it also shapes our attitude.
2.2 Drivers of motivation
HR department works to satisfy the employee needs which is equally important as satisfying
the customers.HR department make strategic decisions for organizing and managing
employees so that they are productive and content with their job. It is their responsibility that
employees function according to the organizations policies and procedures which is indeed a
challenging task. The best way to get the best out of employees is develop a relationship with
the work force and understand the basic needs of employees, clear their ambiguities, motivate
and reward them. Human resources are an asset for the organization on the basis of which an
organization functions. The success of organizations depends on how much the employees are
valued, understood and motivated as it significantly influence their performance. Employees
are content when they receive their needed rewards either it is extrinsic or intrinsic rewards
because employees at all level face different situations in their life and therefore they desire to
get their valued rewards according to their needs.
There are several factors that augment employee motivation and none of them could be
neglected. Motivation, in organizational context can be increased by providing desired
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outcomes to the employees. These outcomes are directly related to their performance and they
could be either extrinsic rewards or intrinsic rewards. Siegrist et al. (1990) proposed that
employee behavior highly relies on rewards given for their hard work and they are motivated
to give optimum performance .In a study conducted on impact of employee motivation on
organizational effectiveness, concluded that employee performance is based on numerous
things apart from monetary rewards .These factors are ; job satisfaction, remuneration,
recognition, employee training ,empowerment ,challenging stuff ,professional growth
opportunities and the performance management system of the organization. These factors vary
depending upon the type of organization. The research concluded that intrinsic rewards are
equally important as extrinsic rewards and there exist a positive relationship of intrinsic
rewards and employee motivation specially empowerment and recognition.
Another research on impact of motivation on employee performance conducted on Technical
Training Institutions in Kenya (by Kiruja EK, Elegwa Mukuru) concluded that several
employees want something beyond pay to be attracted towards work and they wanted a work
conducive motivated working atmosphere. The employees were only given financial rewards
and were thought to be motivated but the reality was that employees needed some challenging
tasks apart from their routine monotonous work. Further more positive reinforcement methods
were completely absent and the employees were not appreciated for their accomplishments.
There was no performance evaluation method to guide the employees about their performance.
Due to these reasons even the most capable employees were not performing well. They need
motivation apart from extrinsic rewards given by their institute. In other words they wanted
intrinsic rewards such as appreciation, recognition, empowerment, autonomy and growth
opportunities in order to work by their self-interest and not by some managerial pressure or
cash rewards. According to Burney et al (2007), Not only employee capabilities are essential
for their productivity and hard work but employee motivation equally contribute in this aspect
as it compels them to do their task with zest and zeal. Therefore it means they need intrinsic
rewards to be intrinsically motivated to accomplish organizational goal. Therefore the study
concluded that there is a positive impact of intrinsic reward on employees' intrinsic motivation
that heavily impacts their productivity that directly influence the organizations success.
According to Landy and Conte (2012) if there’s no mechanism to encourage employees, even
the most talented employees doesn’t contribute towards organizations objectives.
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Robinson (2009) asserted that internally motivated employees have better physical and mental
health as compare to the employees forcefully working with the fear of losing job. Massey et
al, asserted that a work place that is responsive to employee needs results in highly motivated
employees that are more innovative in their work and they struggle for long term organizational
success. He further added that such a work place has less absenteeism, minimal turnover and
fewer incidents.
Abraham Maslow proposed a hierarchy theory that includes 5 levels of an individual’s personal
needs. These needs are shown below in the figure along with other motivation theories shown
in Fig 2.1
Figure 2.1 Other Motivation Theories
2.3 Reward system
Employee motivation is often led by elements such as rewards and benefits as they fulfill their
needs. Kiviniemi et al. (2002) suggested that employees are content and satiated from their job
only when the organization frequently reward and appreciate them. Success of an organization
highly depends on outstanding employee performance and that is only possible when
employees are loyal to the organization. With reference to this , Chiu et al. (2002) asserted that
it is only possible when there is a proper rewarding system established in the organization that
regularly praise and pay employee.
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Reward means an exchange in terms of money or appreciation for the services provided to the
organization (Kalleberg 1977, Mottaz1988). According to Wang (2004) rewards is a
mechanism of retaining employees and making them more committed to the organization.
Employees in return work diligently to accomplish the goals directed to them. Mottaz (1988)
stated that new hires are versatile and possess some specific abilities so they wish to get such
a working environment where they could utilize their skills and get rewarded so that they can
fulfill their needs with that .According to him, the reason behind most of the successful
organization is the presence of a proper merit based reward system. Bratton and Gold (1994)
suggested that rewards include all monetary and non-monetary benefits that are of value and
make the employee feel honored by the organization. Lawler (2003) stated that the worth of a
reward could be measured on 2 dimensions, its quantity in terms of currency and the emphasis
of employee on that particular reward because employees give their outstanding performance
when they feel appreciated and as a result contribute to organization's effectiveness. Zaini et
al. ( 2009) suggested that job description and job specification are the best way to reward
employees on merit because it fully entail their output targets and performance indicators.
Once they achieve desired results they are entitled for remuneration mentioned in their
contract.
2.4 Intrinsic rewards
Intrinsic rewards usually include all those work related factors that make an individual’s job
more interesting and worthy to be done .It covers empowerment, autonomy, recognition,
challenging tasks, advancement opportunities and employee development.
According to Luthans (2000) there are two categories of reward, Intrinsic (non-monetary) and
Extrinsic (monetary) rewards that each have a positive but significantly different impact on
employee motivation. Extrinsic rewards include pay for performance, paid leaves, all types of
bonuses, promotions, commission, gratuities, increments etc., whereas intrinsic rewards
include recognition ,appreciation, professional growth, empowerment , compliments and
admiration. Jensen et al (2007) view recognition as a type of non-financial reward that
energizes the employees to do as directed. Williamson et al. (2009) categorized reward into 3
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types that are intrinsic rewards, extrinsic rewards and social rewards. Extrinsic rewards include
tangible, cashed items like salary, all kinds of bonuses, fringe benefits etc. Intrinsic reward
according to Hackman and Oldham (1976) include intangible, non-cash items that makes the
employees’ job more interesting than before, it commonly include decision making authority,
autonomy, job rotation, job enrichment, career advancement opportunities and etc. Social
rewards is referred to as a healthy and positive relationship with the managers, colleagues and
subordinates. Ali and Ahmed (2009) concluded that there is significant connection of rewards
and recognition and similarly between employee motivation and job satisfaction, therefore the
greater the employees are motivated, the greater performance they exhibit. Numerous studies
by (Herzberg et al, 1959; McGregor 1960; Vroom 1964; Porter and Lawler 1968) proposed
employee recognition as the key for motivating employees. Several other authors suggested
that recognition directs employees towards motivation (Dutton 1998; Appelbaum et al .2000;
Saunderson et al 2004; David et al, 2006).Recognition aids in self-grooming of employees as
they need to develop social contacts and they are appreciated among colleagues. According to
Brun and Biron et al. (2003), absence of recognition programs in organizations is another major
reason of depression. Recognition triggers innovation and aids in advancement of the
organization (Atkinson 1994; Fabi, Martin and Valois 1999; Evans 2001). According to
Wynter-Palmer and Jennifer, decision making power enhance employees cognitive process
and their competencies.
2.5 Impact of intrinsic reward on employee motivation
A research study by Kenneth .A.Kovach determined what the workers value the most at their
jobs? Interesting work or good salary? Supported the significance of intrinsic rewards more
than extrinsic rewards. The study concluded that if a company knows the reason behind
employee commitment and productivity it would then have a competitive advantage on those
companies that are facing absenteeism, costly training and re-trainings, low worker morale and
high turnover. From 1000 questionnaires distributed to different organizational employees , it
was abstracted that Most of the workers wanted interesting work rather than money to motivate
them for excellence and hard work .Final results and conclusion presented that the most
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frequent response was interesting work , valued more by employees .On the other hand the
immediate supervisors believe that workers only need high wages because not every ones' work
could be made interesting and one task that is interesting for 0ne worker could be boring for
another ,therefore high wages matters the most was considered as a misconception because
this is a dilemma now a days that seriously needs to be addressed and worked upon. According
to Sternberg’s Cognitive approach, financial rewards do motivate the employee but for a short
time period as they are bored from monotonous work, whereas task oriented rewards on the
other hand engage the employees in their work and they become more motivated to perform.
It is long term and it results in work satisfaction and enjoyment. According to German system
of higher education intrinsic rewards such as autonomy, competence and work relatedness
highly impacts employee motivation. Ryan and Deci (2000) suggests that people must
internally grasp their work and feel their contribution to their institute valuable. They should
be able to relate their work with organization's objectives because it develops self-esteem and
initiative taking in employees
 Based on the above literature review it is assumed that intrinsic rewards have a
significant positive impact on employee motivation.
2.6 Empowerment
Naturally humans have a tendency to seek control of their surroundings.Similiarly employees

at all levels need some degree of autonomy, acumen, power and control to satiate his self-
esteem and to execute outstanding performance at his work . Conger and Kanungo (1988)
define Empowerment as the self-confidence to achieve desired goals. It is a positive inclination
towards ones targets by making task related self-decisions. According to Bowen & Lawler
(1992) empowerment means allowing employees to make decisions on their own by using their
skills. Empowering means granting permission to the subordinates to take initiatives (Amin et
al, 2010). According to Smith, B (1997) the essence of empowerment is to provide
subordinates with a greater control on how to perform a certain task that adds further skills in
their personality and it leads to their professional growth. He further suggests that empowered
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employees feel being acknowledged and worthy so it is necessary to to give them remarks on
their conduct.
Tannenbaum (1968), states that empowerment is all about the power and control that resides
with in the organization that represents power dissemination and its contribution for
organization's success. Empowering employees is always lucrative for developing and
promoting ideal working atmosphere because employees feel valued and their contentment
inclines them towards attaining organizations' goal as their goals, therefore they exhibit their
excellent creativities. Menon (2001) refers empowerment as an advancement of decision
making power to lower positions in the organization. Therefore empowerment could be
summarized as the enrichment of employee's control on the way he performs his tasks that
augments his participation in the organization constructively.
2.6.1 Perspectives on employee empowerment
According to Spreitzer (2007) there are two perspectives of employee empowerment that gives
birth to further four forms of employee empowerment.
These two perspectives are:
1- Socio-structural perspective of empowerment:
This approach focuses on eliminating all those factors that could hamper the employee’s access
to the opportunities, critical information, sustenance/material help and amenities vital to make
job related crucial decisions. It is a macro approach in which the supervisor himself empowers
his employees by shaping the policies and management practices in their favor that ultimately
grants them the power to make decisions.
2- Psychological perspective of empowerment:
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Psychological approach of empowerment as discussed by Ro &Chen (2011) is developing the

employee or subordinate’s mindset in such a way that he is able to deem 4 facets of
psychological empowerment explained below. Basically it is a micro approach to
empowerment that is the result of socio- structural empowerment approach and is influenced
by the supervisor’s behavior of empowering and giving autonomy to the subordinates.
4 Facets of psychological empowerment
I. MEANING: It refers to the employees’ perception of the importance and impetus of his job
duty in accordance to his personal goals in life.
II. COMPETENCE: It refers to the employee’s perception of his abilities and confidence of
being multi-tasking and challenging enough to accomplish his targets, without the self-belief
of perfection the employee couldn’t move ahead.
III. SELF DETERMINATION: It refers to the employee’s ability to initiate and complete his
assigned tasks and take timely decisions himself.
IV. IMPACT: This dimension refers to the degree that an employee can dominate his
administrative consequences and payoffs at his work.
2.6.2 Various forms of employee empowerment
There are different forms of employee empowerment or it can be deduced that there are 4
applications of empowerment as described by Lashley & McGoldrick (1994) but it is based on
how the manager perceive and apprehend employee empowerment and it influence on
employee’s work and the work itself plus the welfare it will provide to the organization .These
4 forms depict how the employees could be empowered through different types of involvement
and participation in the organization.
Here are the various forms of employee empowerment that are also diagrammatically shown
below in Figure 2.2.
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1- Empowerment through participation

According to Lashley (1995) employees could be empowers through making decisions in the
following ways.
 Autonomous group work:
Here the employees are grouped in self-directed teams without a proper leader and the
employees discuss among themselves before making a critical decision. They allocate tasks
among each other and schedule their work activities. Furthermore they consistently discuss
ways of improvement and apply them.
 Job enrichment:
This type of empowerment is different from the autonomous group work, where group
members are given autonomy, on the other hand, in job enrichment, individual employee is
given discretion and authority by adding and sharing extended responsibilities and job duties.
According to Graham and Bennet (1998) job enrichment gives new horizons and scope to the
employee’s work where he could apply unused skills and his knowledge practically.
 Empowerment through ownership:

This is similar to the individual empowerment in which employees are assigned his personal
targets to be achieved along with the percentage ratio of all the factors that would then be used
for evaluating employee performance. In this way an employee personalize his goal and owns
his targets because his performance evaluation and appraisal is based on the achievement of
these targets and he gets an indirect control of his performance.
2-Empowerment through involvement
Employees are empowered by taking part in several teaming activities in which every body’s
involvement is mandatory and all the team members are encouraged to take part in work related
discussions and recommend ways of improvement. Explained below are some forms through
which employees are empowered by getting involved with each other.
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 Suggestion scheme:
Here the employees are distributed in teams and each one of the team is given two or three
critical organization or work related issues. Each team discusses the problem and
recommendations for solution of the problems assigned to them.
 Quality circles:
In quality circles all the employees after their work hours gather at some place in their
organization and discuss the problems and their solutions among themselves. There is no leader
and the employees themselves discuss solutions and take work related decisions.
 Team briefing :
In team briefing, employees are arranged in specific teams, which include employees of same
cradle, grades and job title. They are then given briefing by their leader or supervisor regarding
their oncoming tasks and how to do them.
3- Empowerment through delayering
Empowerment through delayering means reducing the number of levels or hierarchy that a
manager controls.
 Empowered manager:
Here the manager is empowered and is given the control and authority to take decisions himself
regarding a small group of different levels he is given supervision of.
25
Figure 2.2: various forms of employee empowerment
Autonomous
group work
Empowerment Job enrichment

through
participation
Empowerment
through ownership
Empowerment Suggestion
Employee scheme
through
empowerment
involvement
Quality Circles
Team briefing
Empowerment
through Empowered
delayering manager
2.7 Impact of empowerment on employee motivation
Delegation of power and engagement induces the employee to indulge in organization's

procedures and rules formation.
According to Chao et al. (1994), empowered employees’ perceive firms agendas as their own
objectives that have a positive impact on employee motivation and work satiation. Reena et al
(2009) emphasized empowerment as a process that leads to continuous proliferation of the
26
organization. In addition to this definition, Smith, B, (1997) added that empowerment leads to
quick decision making for clients' problems by subordinates as they do not waste their time
consulting managers. Mani, V (2010) assert that it is empowerment, which heightens
employees' self-determination, output, intelligence and motivation to complete their work.
Bhatti and Qureshi (2007) suggested that employees when authorized to make work related
organizational decisions are extremely motivated and satisfied with their jobs (Reena et al,
2009). According to Sanderson (2003) empowerment makes the employees accountable for
their work due to which they are motivated to a greater extent to consolidate their job by
working efficaciously and coherently. Kuo et al. (2010) proposed that employee empowerment
along with other interesting work content develops a sense of belongingness , trust , work
diligence and elevates motivation (Reena et al,2009). Authority delegation contributes in
employee motivation and work satisfaction (Constant.D, 2001). John Baldoni in his book
‘Great motivation Secrets of Great Leaders’, has highlighted the significance of recognition,
he further asserts that recognition makes people enthusiastic towards work as they receive more
culpability and answerability .John,B. (2005) further elaborated that to be recognized and
empowered is innate in every human being so it influences them in a positive way and
motivates them to enhance their work quality each time they perform a particular task.
In a study by Qurat ul ain manzoor on the impact of employee’s motivation on organizational
effectiveness concluded that empowerment and recognition have a direct impact on employee
motivation such that as the level of empowerment and recognition increases, the employee gets
more and more motivated to work. All this positively influence organization's effectiveness.
In Ritz-Carlton hotel, famous for its gold class service, grants certain authority for decision
making which has enabled the employees to confidently deal their customers complaints. The
resultant effect was 3 times more profit and highly trustworthy employees.
 Based on the above literature review it is assumed that empowerment has a significant
positive impact on employee motivation
27
2.8 Recognition
Recognition is the most influential tool to motivate employees at individual level but
unfortunately employee recognition is the most ignored form of intrinsic reward because more
than half of existing corporations believe that money is the best motivator but in real world,
this Phrase doesn’t work in all situations. Apart from monthly salary every employee desires
to be appreciated in front of others for his performance and they do deserve being recognized
for their achievements. The significance of financial rewards on employee motivation couldn’t
be denied but it doesn't means to overlook or deny the importance of non-financial rewards
such as valuing, praising and appreciating an employee. Recognition could be as simple as a
supervisor thanking his subordinate for assisting him in a challenging task, an applause for
special dedication towards a project, courageous emails or messages for bearing some complex
situation or an arrogant employee and appreciating for best ideas even if they are not used.
According to Rosabeth Moss Kanter, (Author and Management Consultant) recognition is
simple and affordable for any organization. Rynes & Gerhart (1999) stated that money is the
most common form of reward in organizations’ these days. Many organization believe that
money is the best motivator and nothing can beat that, however the situation is not the same
all time .There are a number of employees working at one platform who are facing different
turmoil’s of their life and so each of them have different reward prefernces.Recognition in its
simplest form could be an appreciation letter or an email, thank you card, praising in front of
colleagues, giving certificates or awards for best performance. Stajkovic & Luthans (1997)
conducted a research on the performance enriching incentives that effects an organization the
most. Their research concluded that recognition and feedback are the best motivators.Lutbans
& Stajkovic (2000 ,define recognition as praising someone individually through words of
mouth for his outstanding job peformance.It is not expensive but it requires superiors' time and
interaction skills. Although social recognition does not have direct financial costs, it does use
managers' time, effort and interpersonal skills. Sometimes employees' perform according to
the people around them to get social approval (Bandura, 1986; Luthans & Stajkovic, 2000).
According to Brun & Dogas (2002) recognition also means to ignore the previous mistakes of
employees and and its impact on organization. In humanistic view, recognition means
28
understanding the employees, supporting them, accepting and valuing their work. Recognition
does not appreciates the quantity it focuses on quality of work, the ways of performing that
work and the attitude exhibited. Recognizing employee job dedication is like throwing
spotlight on all those employees who are behind the stage performing their best .It is the best
way to highlight both the categories of employees; hard working and hardly working. Lippit
(1997) states that recognition encourages on the job learning. There are 3 employee recognition
practices distinguished as personal recognition, recognition of work practices and recognition
of job dedication. Therefore employees want to be appreciated as individuals achieving their
target and collectively as a team working for attaining organization's goals. Graham and Unruh
(1990) classified recognition in different forms such as personal congratulations and wishes to
employee by his boss, memo or an email praising employee's hard work, socially giving awards
or certificate, Success party or event, highlighting best performer during a conference, having
best employees pictures on organization's website, magazines or notice boards .
Nelson (1995) identified the characteristics of best recognition programs. The following are
features of standard recognition programs:
 Influential recognition programs must be given instantly, it shouldn't be delayed.
 It must be given in person and suddenly as it has a positive effect on employee.
 Thirdly it should be useful and worthy to the employee.
 Fourthly it must appreciate the employee either individually or as a group member.
 Lastly it is important that the employee recognition should be honest and on merit
otherwise it demotivates other employees and does not promote lucrative results.
B.F. Skinner in his reinforcement theory declared that rewards either intrinsic or extrinsic are
important to develop and consolidate constructive attitudes and motivate employee that
ultimately enhances worker productivity especially appreciation, autonomy, delegation of
powers and professional growth opportunities they feel responsible and accountable for their
tasks. Results showed that 65 percent employees were not praised and respected and 79 percent
employees switched their jobs for the same reason. On the other hand, amongst star performers,
94.4 percent employees agreed being appraised by their managers as the reason behind their
success.
29
2.8.1 Why Employee Recognition Programs Are Important
Employee recognition, that generally includes appreciation and praise are a fundamental
human desire that are natural. It makes the employees feel valued .Most of the employees want
respect in return of their contributions whereas others want a pat on their back for their valiant
efforts. According to Lawler (2008) employee recognition n is a great communication
technique because whenever employees are recognized, it conveys a powerful message to the
recipient and his peers, his work team and rest of the employees through formal and informal
communication networks such as grapevine and official meetings. Recognition is a
spontaneous action by the upper management of rewarding its employees either individually
or praising a group behavior that is linked with the organizational values and goals. Research
shows that in most of the organizations, top 5 recognition goals include
I. Recognizing the employee’s years of service.

II. Creating a positive and work conducive environment.
III. Developing a culture of recognition to motivate employees continuously
IV. Recognition works for motivating high performers and they give extra ordinary
performance. Their performance level is not diminished.
V. Reinforcing company desired behaviors is the most important goal of employee
recognition.
Figure 2.3: Top 5 recognition goals
30
2.8.2 Cost-Benefit Analysis of Employee Recognition
Universally whenever a recognition program is implemented effectively it always costs very

small and reap huge benefits.
Benefits:
1. Individual performance is Greater employee satisfaction and enjoyment of work - more

time reinforced and so the employees perform organizational desired behaviors again
and again and finally they get used to it.
2. Employees focus more on the job rather than complaining and criticizing others.
3. Employees receive their performance feedback immediately either individual or group

performance.
4. Employees become cozy when working in teams.
5. Recognition contributes to employee retention and less turnover.
Costs:
According to a research survey, the major costs that could incur for recognizing
employees are:
1. Time consumption while designing and implementing the program
2. Time consumption while recognizing the employees.
3. Time consumption of introducing new policies and programs regarding recognition,

how to recognize employees.
31
4. Therefore in a nut shell there are numerous benefits of recognition programs whereas
the maximum cost is time that is spent in designing, implementing and rewarding that
is short termed. Hence the benefits are long term.
2.8.3 Unique Ways of Recognizing Employees
Apart from the traditional and common methods of rewarding, one can spontaneously praise
his subordinates irrespective of time and current happenings. It will amaze the employees.
Employees are overwhelmed when appraises and being honestly thanked in front of their peers.
Day to day recognition program is also an effective technique as it will induce reinforcement
of the required behaviors. Employees at all levels will get an opportunity on the spot for their
individual and team work. According to Dr. Lawrence Hrebiniak (2010) what most important
for the employee’s is that how their organization celebrate their success in order to motivate
employees. He state that best way of recognizing is to point out the employee, call him by his
name and announce his behavior and achievement and explicitly announce the value he has
added to the company.
Figure 2.4: A depiction of how employee recognition works
According to Lawler (2002) recognition influences the employee performance in following

ways:
 It improves self-esteem of the employees.
32
 It connects the employees by increasing employee engagement and encourage team

performance.
 IT is an excellent driver of employee performance
 It enhances the staff morale
 It enforces a positive working culture
 It improves the quality of work.
 Employees focus on desired outcomes which enhances their productivity up to 51%
2.9 Impact of recognition on employee motivation
According to Nelson (2001) recognition is a positive reinforcing technique that boosts

employee energy to learn and attain targets. Bishop (1987) states that increments and bonuses
are short term motivators for the employee as compare to recognition. According to Nelson
(2001) recognition in front of peers is more honest for some employees as there is no biasness.
Perry et al, (2006) argues that cash rewards are not the only motivators and they may induce
some demotivation in employees (Srivastava, 2001).
Nelson (2004) proposed that recognizing and appreciating employees is the best way to
enhance employees work output. Applebaum and Kamal (2000) suggested that recognition has
a constructive effect on employee motivation and they are satisfied from their jobs. Brun
(1999) revealed that numerous employees wish to be recognized by their superiors, colleagues
and customers. A construction industry in UK classified employee recognition as a tradition
(Bennet, Davidson and Gale 1999). According to Bourcier and Palobart (1997) recognition
shouldn’t be a merry celebration by management at the end of year but it should be included
in the organization's rules and it must be practiced often as it motivates the employees to
perform as required. Employee recognition and its various forms impacts employee motivation
and as a result their productivity and commitment increases. (Rizwan and Ali, 2010; Schaufeki
et al, 2002; Ali and Ahmed, 2009 and Entwistle, 1987). An analysis by Stajkovic & Lithans
(1997) on the effects of recognition on service sector employees concluded that recognitions
boosted 15 percent employee productivity. In a survey conducted by Society of Inventive
Travel Executives Foundation it was deduced that 63percent employees were motivated by
appreciation as a reward (Lovio-George, 1992). Similarly Harvey Stein,( President, Stein &
33
Read Incentives) quotes that each employee wants to be praised and respected in front of others
and it has several forms such as giving certificates, patting the back of employee or offering
him tea. Herzberg (1996) proposed that in any organization, constant use of cash and noncash
rewards specially employee praise aids in motivating employees and hence they perform as
required. Kerr and Slocum (1987) articulated that recognitions when used frequently gets 35
percent of workforce glued to the company for years. At Chevron Chemical, on the spot
recognition program motivated 90 percent of its employees and enhanced their skills (Verepej
1998). Boyle (1996) , on an international level noticed that employee appreciation a part of
organization practices resulted in a 16.5 percent increase in employee output, 48 percent
decline in absenteeism, 41 percent decrease in incidents.
 Based on the above literature review it is assumed that Recognition has a significant
positive impact on employee motivation.
2.10 professional growth opportunities and employee development programs
According to Maslow’s hierarchy of need theory employee development fulfills an employee’s

self-esteem and self-actualization needs that is an important aspect of human personality.
Beardwell I et al (2004) assert the need of career development for employee development.
According to him career development is process that enhances and upgrade an employee’s
experience and skills. Professional development is concept, which means self-grooming of an
employee to professionally interact with people at different platforms on company’s behalf, it
includes different modes of learning and informal learning practices that develop essential
work skills in an employee. Boltes & Lippke (1994) define professional development the
strongest attribute that leads to employee self-confidence and successful career ahead.
According to Fitzgerald et al (1992) Professional development is same as employee
development but it is a different concept from training because in training, the organization
tends to develop specific skills and expertise required for work completion in employees,
34
development on the other hand have no boundaries. London (1989) defined employee
development as a result of numerous courses, workshops, assignments and seminars that shape
an employee's personality and his professional growth. According to Silverman (1991)
performance appraisal leads to employee development in 5 steps:
 Clarification of employee's major work obligations
 Establishing performance standards
 Providing a continuous feedback on employee performance
 diagnosing and coaching employee deficiencies
 Evaluating overall employee performance
Baruch (1996) stressed that every organization must have a career development system to
guide its employees. Festinger (1995) stated that as a result of performance appraisal,
employees compare themselves with their colleagues and then try to overcome their lacking’s
and grasp growth opportunities prevailing in the organization. According to him, 360 degree
feedback system aids in highlighting the strengths and weaknesses of employees as their
colleagues identify them. According to Morrison et al (1988) job experience contributes the
most for employee development as it creates a person - job fit. According to Tichy et al (1989)
there are separate formal and informal courses and lectures from consultants and business
experts offered for supervisors and other employees. He further added business games ,
simulations ,adventure learnings and customer meetings in this category .Graham and Bennet
(1995) stated that career development consolidate the employee's position in an organization
as it enriches their job with much responsibilities and upgrade them to higher levels.
Armstrong (2001) argues that in today’s dynamic and complex work environments,
organization needs multi-talented and competent employees and in order to sustain their
performance, continuous employee development is crucial. Pareek and Rao (1992) emphasized
n developing employees because it is an investment inside the organization that reap profits
after some time is elapsed. According to them high performing employees are ever ready for
learning and re learning. National Strategy for the Development of the social service workforce
in Scotland (2005), expressed employee development as the basis of confidence and
competition among staff. Career advancement is a process of passing through different levels
35
of an organization starting from lowest to highest and it is purely on merit. There is no

discrimination in advancement opportunities.
Fieldman (1989) stated that employee development predicts the future of an employee and his
worth in the marketplace, due to which it is significant for individual employees. On the other
side, employee development help the organization to take decisions regarding succession
planning.
2.11 Impact of professional growth opportunities and Employee development programs
on employee motivation
Graham and Bennet (1995) suggest that the desire to reach at highest levels of organizational
hierarchy itself motivate employees for excellent performance. According to Baguma and
Rwabwera (n.d.) employees wish to climb the organization’s hierarchy ladder steadily. Capelli
and Hamori (2005) state that lack of growth opportunities within the organization demotivates
employees. According to Armstrong (2001) employees are motivated when they believe that a
certain program, counseling or training will lead to career advancement. Pareek and Rao (1992)
emphasize the significance of employee development by stating that it should be the hot issue
of an organization after it recruits an employee because his competencies will eventually lead
the organization towards success.
2.11.1 Career development
According to Stones and Freeman (1992) career development increases an employee's

motivation when he is personally guided for his career because a career includes a series of
different jobs acquired by a person throughout his life. They further added that career planning
is a process whereby individuals plan methods of achieving their goals. Career development
on the other hand means to acquire essential qualifications and skills to pursue a certain job.
They stressed on career advancement as the best motivating factor to existing employees as it
reflects future growth and promotional aspects.
36
2.11.2 Training and development
Harrison et al,(1997) states that one of the most critical part of developing human resources is
training and development of employees.He further proposed that HRD is not same as T&D of
people, both the terms have totlally different philosophies.HRD is huge umbrella that contains
different methods of employee development and grooming such as Training and Development
(T&D), career planning and development , various job experiences, development of
technology , team building job enrichment,educating the employees,leadership development
programs and the relationship between subordinates and superiors.This is shown in figure 2.5.
T&D on the other hand is a part of HRD in which skills , behaviour or knowledge is transferred
to the employees through various formal and informal activities.
2.11.3 Human resource development (HRD)
Stewart and Mcgoldrick (1996) argued that there is no specific definition of HRD because it
varies with the addition of new technologies and human resource practices that are practial and
strategically applied.According to them HRD is also connected with the organisation’s culture
,learning, change and leadership. The three essential domains of HRD are human resource
management , career development and quality improvement.HRD is not easy as requires time
and attention of the management.This proces involves experts, advocates and professionals to
mentor employees and squash out their maximum efforts to imrove their performance.HRD is
a great tool if the organizations focus on it because eit provides long term benefits to the
organization along with the employees being able to us new technologies and apply their
knowledge.
Figure 2.4: Instruments of Human resource development (HRD)
37
Lynton and Pareck (1990) stressed that top management should periodically encourage
employees to re -skill and re- learn. According to them lack of learning opportunities in work
place or employee denial of learning new things is equivalent to commercial suicide.
According to Bowlen (2008) , there are 7 ways to improve employee development programs.
1. Trigger the mnagers' enthusiasm to mentor and coach their subordinates and other employees.
2. Continuously update the employees' skills and information as they become obselete as time
passes.
3. Employees on the whole cannot develop with simple learnig programs and EDP's (Employee
development programs) so give them the ownership of their futures and career as it will activate
them to persue their desired goals and career.
4. Ensure that learning opportunities are readily available to the employees' either on cloud
service or through mobile or PC applications.
5. THe EDP's should be tailored according to employee development needs and the appraisals or
employee performance evaluation based on the results of EDP's should be fair and transparent
otherwise employees are demotivated.
6. Introduce unique learning styles.
7. Informal coaching and mentoring should be a part of EDP as some employees are reserve and
they shy to discuss the problems they are encountering.It will promote friendly
environmentAccording to Richard A Swanson, HRD is a worthwhile activity that gives value
added results in the end because when employees are developed they become organization's
assets as they get fully aware about the culture and practices. He further explained that HRD is
38
essential for every organization in order to unleash its employee’s capabilities and potential.
TND and OD (organization development) are crucial for professional development of
employees.
According to him T&D is like a machine that process unskilled employees into skilled
employees, new employees into committed one and potential managers into competent
managers as it can be seen in figure 2.5.
Figure 2.5: Training and development programs
2.11.4 Employee Professional Development Approaches :
1. Special Assignment:
Eployees are given diverse assignments where they could apply a variety of
skills and gain exposure of how a typical work has various dimensions to be
done.
2. Executive Development program:
In Executive development programs only new hires are nurtured through
trainings, coaching, mentoring, career counselling .
3. Mentoring:
39
It is usually done by the senior managers or personnel to guide their juniors and
subordinates.Often the company hires professional experts and external caches
for this purpose.
4. Apprenticeship:
This is method in which fresh graduates work in the organization and recieve
some stipend, the aim of apprenticeship is that the potential candidate can learn
how to work in specific oranization hile working with the employees and most
importantly they can scan if there are further growth and learning opportunities
in the organization or not.
5. On the job development:

Here the employee is working in actual work environment and whenever he
faces soe difficulties , they are trained and solve don the job by professional
trainers and other senior workers.
6. Job enrichment:
By adding more responsibilities and latitude on the same job and task
employees learn how to manage workload and submit work on deadlines.
7. Training:
This is a formal setting in which advocates and external trainers or some times
organisational trainers train the employees throuh various formal and informal
acivities.
8. Presentation Assignment:
This is essential to boost employee confience because whenever the employees
are directed to present their assignments they do their efforts as they have to
present infront of every one so they thoroughly work out for excellence.
9. Desk Study:
40
In desk study empoyees are given certain situations and case studies to learn
different job related behaviours in particular siutuations.
The following figure shows Employee development programs.
Figure 2.8 : Employee development program
 Based on the above literature review it is assumed that professional growth

opportunities and employee development opportunities have a significant positive
impact on employee motivation.
41
Chapter Three
Research Methodology
3.1 Research Type
Research means to evaluate and reevaluate a dilemma, construct its explanation, acquire and
manage relevant information, elucidate results and test its validity (Clifford Woody). An
explanatory research was conducted on a specific targeted sample to acquire accurate and
reliable outcomes and conclusion. The research done on this thesis involves explanatory
research as it aims to determine the relationship between dependent variables and independent
variables i.e “ Impact of intrinsic rewards on employee motivation “ , here motivation is
dependent on the type of intrinsic rewards provided by the organization. This research is done
systematically in which both primary and secondary data is collected and utilized in order to
acquire quantitative and qualitative data, since the study includes both qualitative and
quantitative research. Primary data was gathered data was quantitatively through
questionnaires and then they were empirically investigated to determine the relationship
between the variables. Secondary data was obtained through research journals and articles.
3.1 Research design
The research design includes research idea, research methodology, data collection, analysis of
data and conclusion. Each of these steps in explained in figure 3.1 below.
42
FIGURE 3.1 RESEARCH DESIGN
Research Research Collection Analysis

of Data Conclusion
Idea Methodology of Data
Selection of
topic
Literature search Variables defined
Identification of Hypothesis
Collection of
objectives Sample selection Data through
Data Collection interviews and Use of Excel for
techniques questionnaires data
representation Recommendations
and SPSS to test given with
the hypothesis reference to the
research results
3.2 Target Population
The target population of this study comprehend employees at the head office of Pakistan
petroleum limited that is 200.A questionnaire based on employee motivation had been
developed to gather information from the employees of Pakistan petroleum limited company.
Employees included some senior and junior officers, Deputy Officers, Group leaders, Senior
and junior managers, Shift employees and Shift workers, Supervisors and day and night shift
employees both male and female. As the data was gathered, subsequently it was analyzed and
deductions were elucidated based on these facts and figures. After it data has been collected to
find out conclusions on these figures. This type of research design was constructive to inspect
the practicality of scientific models and theories (Jafri, 2012)
43
3.3 Sample Size
All managerial level and below managerial level employees were the population of this
research study as the PPL’s intrinsic reward policy includes all employees across organization
,it is not reserved for managers and above managerial positions. Moreover there are few
managers in PPL as the organization make managers to its employees who have 20- 25 years
of work experience.
Sample size consisted 132 employees working at PPL’s head office in Karachi .It included
employees from different departments and different ages to get Quantitative data. Qualitative
data was obtained from the HR department of the company to obtain authentic result. In
addition, HR Manager assisted in providing lucrative information regarding the types of
intrinsic rewards, and intrinsic reward policy of the company.
3.4 Sampling technique
The sampling technique for this research is convenience sampling that is a type of non-
probability sampling technique. The subjects (employees) were easily accessible in head
office and displayed homogeneous characteristics.
3.5 Research Instrument
In this study, primary data was gathered through survey technique for which questionnaires
were used as an aid, whereas secondary data was also used through various research papers,
books, articles and journals. According to Denzin & Lincoln (2005) qualitative research
determines the explanation and interpretation of an issue in terms of peoples’ perception. On
the other hand quantitative research design is more objective (Lincoln & Guba, 1985).The
questionnaires were distributed to the respondents. The questionnaires were precise and to the
point in order to save time, energy and interest of employees.
44
3.6 Data Collection Method
Triangulation method was used for collecting data as it involves gathering quantitative data
(validation) and qualitative data (inquiry).
Quantitative data was collected through questionnaires that were constructed with close ended
question statements with a Likert scale, ranging from “Strongly Disagree “to “Strongly Agree”.
Qualitative data, on the other hand was abstracted through the direct interview from HR
manager regarding intrinsic rewards and their impact on employee motivation and the
respondents’ feedback through questionnaire.
3.7 Treatment of the Data
Statistical Package for the social sciences (SPSS) was used to determine the relationship of
these variables and findings through questionnaires and feedback of the interviewees.
45
Chapter Four
DATA INTEGRATION
This chapter provides an in-depth and extensive analysis over the results of the data that have
been collected from the employees of PPL. This section is divided into Three parts, first part
provides an over view of the general demographic details of the sample, Then in second part,
the results and analysis of reliability tests, correlation tests and t- tests are explained over the
Dependent variable i.e. Motivation and on the independent variables of Intrinsic Rewards i.e.
empowerment, recognition and professional growth and development opportunities, as
responded by the employees of PPL. In the last part, there is a brief overview of the interview
conducted from one of the Deputy Chief Manager of Human Resource Department at PPL.
4.1 Frequency Distribution
Table 4.1
Gender of respondents
Cumulative
Frequency Percent Valid Percent Percent
Valid Male 87 66.4 66.4 66.4
Female 44 33.6 33.6 100.0
Total 131 100.0 100.0
46
Figure 4.1
Gender of Respondents
Female
33.60%
Male Male Female

66.40%
From the data analysis and the chart presentation above, it is evident that most of the
respondents for this study were the male employees. Almost 66.4% of the respondents were
males, however only 33.6 % of sample were female respondents for the study. Moreover, from
the analysis of this pie chart it can also be generalized that the majority of work force at PPL
is comprised of males.
47
Table 4.2
Age of Respondents
Cumulative
Age brackets
Frequency Percent Valid Percent Percent
Valid 22-30 33 25.2 25.2 25.2
31-40 60 45.8 45.8 71.0
41-50 33 25.2 25.2 96.2
51-60 5 3.8 3.8 100.0
Total 131 100.0 100.0
Figure 4.2
Age of Repondents
51-60
3.8 %
22-30
41-50
25.2%
25.2 % 22-30
31-40
41-50
51-60
31-40
45.8%
By understanding the Age of the respondents, the aim is to identify the nature of work force,
this gives a general and holistic overview of the nature of organization. The responses gathered
from PPL’s employees, it was found that the majority of workforce at PPL is from the age
bracket of 31-40 years of ages, holding almost 45.8 % share in total work force. However, the
organization also focuses on the induction of fresh and enthusiastic personnel as the age
48
bracket of 22-30 year holds a share of 25.2 %. The age bracket of 41-50 also occupies a share
of 25.2 %.The least of all the age groups in the organization is 51-60 age bracket, which holds
only 3.8 % share in the work force.
Table 4.3
Qualification of Respondents
Qualification
Frequency Percent Valid Percent Cumulative Percent
Valid Undergraduate/Bachelors
33 25.2 25.2 25.2
Graduate/Masters
95 72.5 72.5 97.7
Postgraduate/PhD
3 2.3 2.3 100.0
Total 131 100.0 100.0
Figure 4.3
Qualification of Respondents
Postgraduate
2.30%
Undegraduate
25.20% Undergraduate
Graduate
PostGraduate
Graduates
72.50%
The qualification of majority of the respondents’ who participated in this survey is Graduation
that means they have completed their Master’s degree, it accounts 72.50 % of the total share.
On the other hand the employees’ who have acquired their bachelor’s degree are 25.20 %,
49
which means that 25 % respondents of this research survey are Undergraduates. The
Postgraduates or PhD qualified employees account the minimum percentage i.e. 2.30 %. It can
be concluded that most of the employees in PPL hold Master’s degree, then there are
undergraduates and then only 2.3 % of employees hold a doctorate degree.
Table 4.4
Departments
Departments Frequency Percent Valid Percent Cumulative Percent
Valid Human Resource 43 32.8 32.8 32.8
Procurement 18 13.7 13.7 46.6
Finance 16 12.2 12.2 58.8
Admin 12 9.2 9.2 67.9
Information Technology
18 13.7 13.7 81.7
Corporate Services
8 6.1 6.1 87.8
Operations 6 4.6 4.6 92.4
Audit 7 5.3 5.3 97.7
Industrial Relations
3 2.3 2.3 100.0
Total 131 100.0 100.0
50
Figure 4.4
Departments at PPL
IR
2.30%
Operations
4.6% Human Resource
Audit
5.30% Procurement
CS 6.10% Finance
Human Resource
32.80% Admin
IT
13.70% Information Technology (IT)
Corporate Services (CS)

Admin Procurement
9.20% 13.70% Operations
Finance
12.20% Audit
Industrial Relations(IR)
For a detailed analysis of the jobs at the organization and the distribution of workforce at PPL,
this information was asked. The results of the query revealed that the most respondents to the
study were employees at Human Resource department then Procurement and finance whereas
from Industrial Relations, least number of respondents participated. These results also showed
the overall distribution of workforce with a holistic approach.
51
Table 4.5
No. of Years of Service
No. of Years of Service Frequency Percent Valid Percent Cumulative Percent

Valid 1 year 10 7.6 7.6 7.6
2 years 14 10.7 10.7 18.3
3 years 7 5.3 5.3 23.7
4.years 13 9.9 9.9 33.6
5.years 12 9.2 9.2 42.7
6.years 17 13.0 13.0 55.7

7.years 7 5.3 5.3 61.1
8.years 6 4.6 4.6 65.6
9.years 5 3.8 3.8 69.5
10.years 3 2.3 2.3 71.8
11.years 1 .8 .8 72.5
12. years 8 6.1 6.1 78.6
13. years 2 1.5 1.5 80.2
14. years 11 8.4 8.4 88.5
15. years 9 6.9 6.9 95.4
17. years 2 1.5 1.5 96.9
24. years 1 .8 .8 97.7
28. years 1 .8 .8 98.5
32. years 2 1.5 1.5 100.0
Total 131 100.0 100.0
52
No. of Years In Service

14.00%
12.00%
10.00%
Frequency
8.00%
6.00%
4.00%
2.00%
0.00%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 17 24 28 32
years years years years yearsyears years years years years yearsyears years years years years years years
When analyzing the organization’s efficiency in retaining the employees it becomes essential
to understand that for how long the most of the staff at organization has served. For this purpose
the questionnaire included the respondents’ tenure of service in PPL.
The results of the study revealed that most of the employees at PPL has served the organization
is 6 years. 10 % of the respondents to this study have served PPL for 2 years.12% of
respondents have served PPL for 6 years , 1.5% of respondents have served PPL for 24 years
and 2% of the respondents’ have served PPL for 32 years.
4.2 DATA ANALYSIS
In this part of the chapter, the responses obtained from the employees of PPL has been tested
in order to test the hypothesis of the study .First hypothesis of the study was to analyze that if
the Intrinsic rewards have any significant impact at the motivation of employees. The results
of the tests are as following.
53
4.3 Reliability testing
INTRINSIC REWARD AND MOTIVATION
Table 4.6
Reliability Statistics
Cronbach's
Alpha N of Items
.893 2
To test the reliability for the correlation tests and variables of this study, the Cronbach’s Alpha
is accumulated. The results of the test revealed that the results from the correlation tests are
reliable enough to conclude the study. Although, out of 132 questionnaires 1 questionnaire
have been eliminated due to the unreliability.
There were total 35 questions in the questionnaire from which 2 questions were based on the
dependent variable Motivation i.e. the impact of intrinsic rewards on employee motivation.
These 2 questions have a total Alpha value of .893, which is high and so it indicates that there
is a strong internal consistency among the three questions. Furthermore it means that the
respondents who selected high scores for one question also intended a high score for other
related questions. This strong reliability represent that there is strong relationship among the
dependent and independent variable, here it is among Intrinsic rewards and Employee
motivation so, the more the independent variable i.e. Intrinsic rewards is increased , the more
it positively impacts employee motivation.
Empowerment:
Table 4.6.1
Cronbach's
Alpha N of Items
.878 8
54
There were 8 questions related to the independent variable empowerment.in order to know the
impact of empowerment on motivation of employees. The results show that the overall Alpha
of these questions is .878, which is also high and so it indicates that there is a strong internal
consistency among the eight questions and there is strong reliability among the dependent and
independent variable, here it is among empowerment and employee motivation so the more
the independent variable i.e. Empowerment is increased, the more it positively impacts
employee motivation.
RECOGNITION
Table 4.6.2
Cronbach's Alpha N of Items
.872 14
There were 14 questions related to the independent variable recognition in order to know the
impact of recognition practices on motivation of employees. The results show that the overall
Alpha of these questions is .872, which is also high and so it indicates that there is a strong
internal consistency among the 14 questions and there is strong reliability among the dependent
and independent variable, here it is among recognition and employee motivation so the more
the independent variable i.e. Recognition is increased, the more it positively impacts employee
motivation.
55
PROFESSIONAL GROWTH & DEVELOPMENT OPPORTUNITIES
Table 4.6.3
Cronbach's
Alpha N of Items
.901 11
There were 11 questions related to the independent variable Professional growth &
development opportunities in order to know the impact of professional growth and
development opportunities on motivation of employees. The results show that the overall
Alpha of these questions is .901, which is very high and so it indicates that there is a strong
internal consistency among the 11 questions. Furthermore there is strong reliability among the
dependent and independent variable, here it is among empowerment and employee motivation
so the more the independent variable i.e. the more professional growth and development
opportunities prevail, the more it positively impacts employee motivation.
56
CORRELATIONS
Table 4.8
Correlations
Motivation Intrinsic Reward
Motivation Pearson Correlation 1 .443**
Sig. (2-tailed) .000

N 131 131
Intrinsic Reward Pearson Correlation .443** 1
Sig. (2-tailed) .000

N 131 131
**. Correlation is significant at the 0.01 level (2-tailed).
The above table shows the relationship of motivation with intrinsic rewards collectively
(Intrinsic reward includes the average of all the 3 categories of rewards; empowerment,
recognition and professional growth and development opportunities.).
Therefore, there is significant statistical evidence (P < 0.05) to reject the null hypothesis i.e:
Ho: Intrinsic rewards do not have any significant positive impact on employee’s motivation at
PPL.
The alternate hypothesis i.e. Ha: Intrinsic rewards have a significant positive impact on
employee’s motivation at PPL is accepted.
As depicted by Pearson correlation, the coefficient correlation between employee motivation

and intrinsic rewards is r = .443, which means that there is a weak positive relationship
between them.
57
Correlations
Motivation_ Empowerm Recognition ProGrowthD

T ent_T _T evOppor_T
Motivation_T Pearson Correlation 1 .534** .291** .241**
Sig. (2-tailed) .000 .001 .005

N 131 131 131 131
Empowerment_T Pearson Correlation .534** 1 .296** .316**
Sig. (2-tailed) .000 .001 .000

N 131 131 131 131
Recognition_T Pearson Correlation .291** .296** 1 .645**
Sig. (2-tailed) .001 .001 .000

N 131 131 131 131
ProGrowthDevOppor_ Pearson Correlation .241** .316** .645** 1
T
Sig. (2-tailed) .005 .000 .000
N 131 131 131 131
**. Correlation is significant at the 0.01 level (2-tailed).
The above table represents the correlation among the different variables.
As depicted by Pearson correlation, the coefficient correlation between motivation of
employee and empowerment is r = .534, which means that there is a moderate positive
relationship between intrinsic rewards motivation of employee’s and Empowerment which
further means that with an increase in empowerment , the motivation of employees will also
increase.
The significance value is .000 which is quite less then P value = 0.05 , it means that the null
hypothesis that empowerment doesn’t have any significant positive impact on employee
58
motivation is rejected and the alternate hypothesis that empowerment has a positive impact on
employee motivation is accepted.
The coefficient correlation between motivation of employee and Recognition is r = .291,

which means that there is a weak positive relationship between intrinsic rewards motivation of
employee and Recognition practices which further means that with an increase in recognition
practices, the motivation of employees will also increase and similarly with a decrease in
recognition practices, the motivation of employees will also decrease.
The significance value is .001 which is quite less than P value =0.05, it means that the null
hypothesis that the recognition does not have any significant positive impact on employee
motivation is rejected. The alternate hypothesis that recognition has a positive impact on
employee motivation is accepted as the significance P- value is less than 0.05.
The coefficient correlation between motivation of employee and Professional growth and
Development opportunities is r = .241, which means that there is a weak positive relationship
between employee motivation and Professional growth and Development opportunities which
further means that with an increase in growth and development opportunities, the motivation
of employees will also increase and similarly with a decrease in them , the motivation of
employees will also decrease.
The significance value is .005, which is quite less than P value =0.05, it means that the null
hypothesis that Professional growth and Development opportunities does not have any
significant positive impact on employee motivation is rejected. The alternate hypothesis that
Professional growth and Development opportunities have a positive impact on employee
motivation is accepted.
59
NPar Tests
Friedman Test
Table 4.9
Ranks
Mean Rank
IntrinsicRewardMotivation_T 2.62
Empowerment_T 1.74
Recognition_T 2.73
ProGrowthDevOppor_T 2.91
Test Statisticsa
N 131
Chi-Square 65.209
df 3
Asymp. Sig. .000
a. Friedman Test
Friedman test indicates the highest mean value of the most important factors considered by
employees. Here Friedman test results indicate that the highest mean value is of Professional
growth and development opportunities for all the employees, it has the highest mean value of
2.91. The second most important variable is Recognition that has a total mean value of
2.73.Third most important factor is Intrinsic rewards with a mean value of .62.It means that
Intrinsic rewards are extremely important for employees at all levels and therefore it positively
impacts employee motivation. Empowerment has the least mean value among all the variables,
60
having a mean value of 1.74.This represents that empowerment as an independent variable is

considered less important than other variables among the employees
4.3 INTERVIEW WITH HR MANAGER AT PPL
Q1-Does PPL have intrinsic reward policy?

ANS: Yes, it does. PPL believes that intrinsic rewards are equally important as extrinsic
rewards in this century because until the employees are enthusiastic to work themselves,
nothing can force them to work exceptionally, not even money.
Q2-What employee cadres or levels are included in the IR policy? Is it for the senior
management only?
ANS: PPL considers Top managers to only those who have 20 and 25 years of work experience
in PPL head office and at different oil fields such as Kandhkot, Adhi, Mazarana, Hali and Sui.
This much experienced employees are on our finger tips, in total there are 8 top managers. For
the positions included in intrinsic reward policy, PPL believes intrinsic rewards as influential
employee motivator tool along with monetary rewards, so all the positions across PPL are
considered important for intrinsic rewards along with top managers.
Q3-What do you think are intrinsic rewards? What are the different types of IR given to
employees in PPL?
ANS: Intrinsic rewards are non-cash, intangible factors that make employee job more
challenging than before although they don’t have any monetary value but they make the job
worthy than before, employees feel they are doing something important.
Different types of IR in PPL are empowerment, autonomy, employee recognition, professional
growth and development opportunities provided to employees.
Q4- What is your perception on the relationship of intrinsic rewards and employee motivation?
61
ANS: I, as HR Manager believe that there is always a positive or negligible but positive impact
of intrinsic rewards on employee motivation and their performance. There is never a negative
impact of intrinsic factors on employee motivation, intrinsic factors especially job enrichment
compel the employees towards work itself.
Q5-What is the degree of empowerment for employees throughout the organization?

ANS: Decision making authority/empowerment is given to the employees according to their
job nature. Not every employee is given the same degree of empowerment, it varies throughout
the organization and it depends upon various factors such as the employee’s age, qualification,
years of experience, amount of trainings and workshops he has attended, his prior and current
performance.
For instance, I as HR manager have the power to shortlist applicants, hire them, approve the
post given to them and assign work to them. Board of management has the authority to decide
employees’ salary and their increments which is 7- 10 % (variable amount) of payroll cost. On
the contrary, employees working at our fields can make operational decisions but those
decisions are mandatory to be discussed with and approved by their team lead.
Q6-what types of recognition programs practiced frequently in PPL?

ANS: There are diverse employee recognition programs in PPL, some are formal whereas
some are informal in nature. Formal recognition includes Annual award and On the spot
recognition. Informal recognition includes letters, certificates, medallion, emails, family
dinner.
 ANNUAL AWARD:
This award is given once a year at the annual dinner of PPL. There are further 4 categories of
annual award.
1-Performance excellence annual award
2-Annual award for social work
3-Annual award for tangible saving.
4-Annual award for intangible services for organization.
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 ON THE SPOT RECOGNITION:
This is a monthly award given by MD of PPL. Award is given to the star performer of the
month in organizations’ auditorium where all the employees are invited any time during the
month in the second half of the office timings. The star performer is given certificate and his
achievement and excellent performance is discussed with everyone to motivate other
employees and the star performer himself feels valued. Apart from this, star performer’s name
and picture is highlighted on notice boards and monthly magazine of PPL.
Apart from these, employees are given appreciation letters, appreciation emails, achievement
certificates, Family dinner/brunch at hotels.
Q7-What types of career development and professional growth opportunities PPL offer to its
employees?
ANS: There are numerous opportunities for employee development and growth.
For career advancement, we offer specific trainings, informal career counselling, mentoring
and skill development programs.
For professionally developing employees we focus on HRD. Our HRD program include:
 PROMOTIONS:
Employees are promoted according to their performance and their employment
calendar every 4-5 years.
 JOB ENRICHMENT:
More responsibilities are added to the same job of employees.
 JOB ENLARGEMENT:
Numerous work related tasks and activities are made mandatory as a part of employee’s
work.
 FOREIGN TOURS AND ASSIGNMENTS:
Interested and capable employees’ are sent in foreign countries with some specific
agenda, they conduct seminars, attend meetings and work related gatherings.
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 JOB ROTATION:
Employees work on other critical jobs of their department for period of 2 weeks in
August, September and October so that their skills could be utilized in the absence of
other employee.
 TRANSFERS:
Sometimes employees, especially Associates are sent to perform field work at PPL oil
and gas fields for a period of 2-3 years so that they can learn practical work.
 TRAININGS:
There are on the job trainings for Associates (previously known as management
trainees).For existing employees there are E-trainings, public trainings and mentoring
by external trainers.
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Chapter Five
DISCUSSION
5.1 Summary of Findings
The objective of the study conducted, is to investigate the relationship between Intrinsic
Rewards and Employee Motivation and what type of intrinsic reward is more effective to
increase employee motivation in PPL. The results found are inclined with the hypothesis
developed. Finding shows that Intrinsic Rewards have a significantly positive impact on
employee’s motivation. If an organization has a revised Intrinsic Reward Policy (IRP)
according to the current trends, and it is properly implemented throughout the organization, it
will ultimately have a positive impact on employee’s motivation, and in return the overall
performance of the employees and organization gets improved.
5.1.1 Impact of Intrinsic Rewards on Employee’s Motivation
The result of Pearson correlation, Sig (2 tailed) p= .000; which is quite less than P value 0.05
that shows there is a significance between employee motivation and intrinsic rewards..
Intrinsic rewards have a great impact on employee’s motivation. Furthermore the coefficient
correlation among both is r =0.443 which represents that both of them have a weak but positive
relationship. shows there is a positive significance between Intrinsic Rewards and Employee’s
Motivation, it means that as one variable will move up or down, or as one variable increases
or decreases, so does the other variable; that is why it is considered as; better the intrinsic
rewards, the more motivated employees are.
On the basis of this statistic results, the null hypothesis is rejected here (Ho1: Intrinsic
rewards do not have any significant positive impact on employee’s motivation at PPL).
65
5.1.2 Impact of Empowerment on Employee Motivation
The result of Pearson correlation, Sig (2 tailed) p= .000; which is quite less than P value 0.05
that shows there is a significance between empowerment and employee motivation.
Empowerment have a great impact on employee’s motivation. Furthermore the coefficient
correlation among both is r =0.534 which represents that both of them have a moderate positive
relationship. It means that as one variable will move up or down, or as one variable increases
or decreases, so does the other variable; that is why it is considered as; more the employees are
empowered, the more motivated they are.
On the basis of this statistic results, the null hypothesis is rejected here (Ho2: Empowerment
does not have any significant positive impact on employee’s motivation at PPL).
5.1.3 Impact of Recognition Programs on Employee Motivation
According to Pearson correlation, the coefficient correlation among both the variable is is r
=0.291 which represents that both of them have a weak but positive relationship. The result of
Sig (2 tailed) p = .001; which is lesser than Value 0.05 that shows there is a significance
between Recognition programs and employee motivation.
On the basis of this statistic results, the null hypothesis is rejected here (Ho3: Recognition
Programs do not have any significant positive impact on employee’s motivation at PPL).
5.1.4 Impact of Professional Growth opportunities and Employee Development
Opportunities on Employee Motivation
66
According to Pearson correlation, the coefficient correlation among both the variable is is r =
0.241 which represents that both of them have a weak but positive relationship. The result of
Sig ( 2 tailed) p = .005 which is less than p- value 0.05; that shows that there is a significance
between Professional Growth and Development Opportunities and employee motivation.
On the basis of this statistic results, the null hypothesis is rejected here (Ho4: Professional
Growth and Development Opportunities does not have any significant positive impact on
employee’s motivation at PPL).
5.2 Critical Debate
In the below mentioned critical debate, the results of afore findings will be compared with the
literature review presented in chapter 2 of this thesis.
5.2.1 Employee motivation and Drivers of Motivation
Bedeian (1993) views motivation as an internal drive that accelerates the motivation level and
as a result it augments the individuals and organizations overall performance. Similarly in the
literature, Robinson (2009) asserted that a work place responsive to its employee needs, more
specifically in terms of self-esteem and self-actualization always succeeds to retain its best
employee’s. Qualitative data collected through interview at PPL is well justified by Bedian as
PPL consistently adapt new ways of motivating its employees to keep them committed and
motivated for long term. PPL believes that motivation and individual performance has a strong
connection and therefore unless the employee perceives his rewards self-satisfying as
explained by Both Brickley and Whitely et al (2002) he couldn't outperform in all situations.
The interview conducted at PPL also supports the literature regarding drivers of motivation
that include clear guidelines, no monotonous work and desired rewards because at PPL,
employee's when hired are given their job descriptions on the basis of which they could be
67
assessed, recognized, given more empowerment and could excel in their respective fields by
exploring and availing new opportunities in the
organization.
5.2.2 Intrinsic Rewards
As cited in literature, Luthans (2004) distinguished intrinsic rewards from extrinsic rewards.
According to him extrinsic rewards are monetary and tangible in nature. He further stated that
intrinsic rewards on the other hand is a collection of non-cash rewards that include
empowerment, recognition; in the form of compliments, admiration and appreciation along
with professional development and growth opportunities. This statement is proved by data
collected from employees' and manager that the intrinsic rewards policy at the organization
includes employee empowerment, recognition programs and practices and there are numerous
ways to develop employees' professionally.
Apart from this PPL believes to develop future leaders from within the organization. For this
purpose PPL does succession planning for crucial posts and offer excellent leadership
development programs for employee development.
Pink et al (2007) in his research study concluded that extrinsic rewards today, are considered
old-fashioned especially among young/ fresh employees. Furthermore he suggested that
employees at different levels of organization's hierarchy seek more beyond extrinsic rewards.
The qualitative data accumulated through interview from the HR manager and the responses
generated from questionnaires distributed among employees supports this assumption as both
the instruments proved that PPL has an intrinsic reward policy and that too for all the
employees which further denies the common perception of intrinsic rewards being reserved
and more effective for higher ranks.
5.2.3 Impact of Intrinsic Rewards On Employee Motivation
68
Ryan and Deci (2000) argued that unless the employee's internally grasp their work and relate
it with organizations objectives they couldn't take initiatives and their self-esteem needs will
be left unfulfilled. This literature is supported from the qualitative data received from
respondents because 75 % of the respondents’ strongly agreed to the statement “I am highly
motivated from intrinsic rewards such as empowerment, recognition and professional growth
and development opportunities prevalent in the company”.
In the literature in chapter 2, Hackman and Oldham (1976) explained intrinsic rewards as
factors that make the employees’ job more interesting than before, it commonly include
decision making authority, autonomy, job rotation, job enrichment, career advancement
opportunities and etc. The results of respondents from PPL support his definition of intrinsic
rewards and its elements. This literature is also supported from the qualitative data obtained
from questionnaires in which 85% of employee's, throughout the organization strongly agreed
to the statement "I am highly motivated from non-monetary rewards as they make my work
more interesting and challenging than before”. This result also proves the alternate hypothesis
considered in this research that:
“Intrinsic rewards have a significant positive impact on employee’s motivation. “
5.2.4 Impact of Empowerment on Employee Motivation
Menon (2001) refers empowerment as an extension of decision making power that enriches
employee's control and augments his ability to take self-decisions on critical job issues. With
reference to the employees' response, this literature is supported as empowerment in PPL
grants decision making power to employees due to which they are able to exhibit their excellent
creativities. Mani, V (2010) asserts that empowerment heightens employees' self-
determination, output, intelligence and motivation to complete their work and this literature is
well supported from the feedback of respondents' in the qualitative data collected through
questionnaires as 68 percent of them "strongly agreed" to the statement that "Empowerment
helps me do my job independently and efficiently”, while 21 percent of the respondents
"Agreed" to it. The literature, Bhatti and Qureshi (2007) suggested that whenever employees
are authorized to make work related decisions, they are extremely motivated and satisfied with
69
their jobs. This is assumption is also supported from the respondents' feedback as 78 % of the
employees agreed to the statement "Empowerment have a significant positive impact on my
motivation to excel my job".
In quantitative assessment of the variables "Empowerment " and "Employee motivation (As a
result of intrinsic rewards)" the Pearson correlation coefficient is r = .534 which means that
empowerment has a moderate relationship with employee motivation, furthermore the
Significance value for this hypothesis is .000 which is lesser than the P- value 0.05, hence it
proves the alternate hypothesis that is :
“Empowerment has a significant positive impact on employee's motivation.”
5.2.5 Impact of Recognition Programs on Employee Motivation
In literature, it is mentioned that Stajkovic & Luthans (1997) conducted a research on best
performance enriching incentives, which concluded recognition and feedback as best
motivators. They further stated that recognition is least expensive method to motivate
employees and it could be as simple as an appreciation letter, thankyou card, getting praised in
front of peers and receiving best performance gifts and certificates. This assumption is
supported from the qualitative data gathered through questionnaire as 70 % of the employees
"Strongly agreed" to the statements ” I receive recognition when I perform above expectation’s
" and "I am appreciated by my boss/supervisor when I do a good job. Secondly 88% of the
respondents "Strongly agreed" to the statements "Certificates and best performance awards
keeps me enthusiastic for my work and I work more diligently" and "Appreciation letter / Email
from superiors’ boosts up my motivation level”. It proves that recognition should be included
as a part of company policy because it is the cheapest and most effective way to motivate
employees.
With reference to the literature, Lippit(1997) states that recognition encourages on the job
learning which is well supported by the qualitative data from questionnaire as 62 percent of
respondents "Strongly agreed" to the statement "Employee recognition are influential as it
motivate the employees to learn more and exhibit outstanding job performance”.
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Brun & Dogas (2002)stressed that Recognizing employee job dedication is like throwing
spotlight on all those employees who are behind the stage performing their best .It is the best
way to highlight both the categories of employees; hard working and hardly working. His
assumption is also supported by 92 percent "Strongly agree response on the questionnaire
statement "On the spot recognition motivates me a lot and I feel valued in front of my peers”.
According to Brun & Dogas (2002) recognition also means to ignore the previous mistakes of
employees and and its impact on organization. In humanistic view, recognition means
understanding the employees, supporting them, accepting and valuing their work. This
assumption is also supported from qualitative response as 86 % of employees' "Strongly agreed
" to the statement "My confidence ,self- esteem and interpersonal skills are improved when I
am socially recognized at workshops , annual dinners , events, ceremonies & etc." and 78
percent "Strongly agree" for the statement "The company values my work."
In quantitative assessment of the variables "Recognition " and "Employee motivation (As a
result of intrinsic rewards)" the Pearson correlation coefficient is r = .291 which means that
recognition has a weak but significant relationship with employee motivation, furthermore
Signifance value for this hypothesis is .001 which is lesser than the P- value 0.05, hence it
proves the alternate hypothesis that:
“Recognition programs have a significant positive impact on employee's motivation.”
5.2.6 Impact of Professional Growth Opportunities and Development Programs on
Employee Motivation
Boltes & Lippke (1994) define professional development as the strongest attribute that leads
to employee self-confidence and successful career ahead. According to Fitzgerald et al (1992)
Professional development is a different concept from training because in training, the
organization tends to develop specific skills and expertise required for work completion in
71
employees, development on the other hand has no boundaries. This literature is well supported
from the qualitative data accumulated from interview and through questionnaires.
From the interview with Hr. manager, it is quite evident that PPL offers development programs
for its employees' that comprises of specific trainings such as E-trainings, public trainings,
informal mentoring, coaching from external trainers and development programs such as HRD
(Human resource development programs).Whereas for growth opportunities, PPL offers job
enrichment, job enlargement promotions, foreign tours and assignments, job rotations, transfer
to other departments.
On the other hand 77 % of respondents "Strongly agreed" to the statement "Employee
development is the key to success for an organization." and to the statement "Employees are
encouraged to seek professional development “which supports the assumption in literature by
Pareek and Rao (1992) who emphasized on developing employees because it is an investment
inside the organization that reap profits after some time is elapsed. According to them high
performing employees are ever ready for learning and re learning.
In the literature, Beardwell I et al (2004) assert the need of career development for employee
development. According to him career development is process that enhances and upgrade an
employee’s experience and skills. Baruch (1996) stressed that every organization must have a
career development system to guide its employees. According to Tichy et al (1989) there are
separate formal and informal courses and lectures from consultants and business experts
offered for supervisors and other employees. He further added business games , simulations
,adventure learnings and customer meetings in this category .Graham and Bennet (1995) stated
that career development consolidate the employee's position in an organization as it enriches
their job with much responsibilities and upgrade them to higher levels. Armstrong (2001)
argues that in today’s dynamic and complex work environments, organization needs multi-
talented and competent employees and in order to sustain their performance, continuous
employee development is crucial. These assumptions are supported by the qualitative data
obtained from feedback questionnaires as 75 percent of the respondents "Strongly agreed" to
the statement "There are career advancement opportunities in my company."
London (1989) defined employee development as a result of numerous courses, workshops,
assignments and seminars that shape an employee's personality and his professional growth.
72
This literature is also supported from our qualitative data gathered as 82 % respondents
"Agreed" to the following statements:
"Employees are continuously developed through training, mentoring, education and
promotional opportunities in my company", "Employees receive appropriate trainings to
enhance their effectiveness" and "My Supervisor provides me guidance and feedback on how
I can advance my career at the Company."
In quantitative assessment of the variables "professional growth opportunities and

Development programs" and "Employee motivation (As a result of intrinsic rewards)" the
Pearson correlation coefficient is r = .241 which means that both the variables have weak but
significant positive relationship with employee motivation, furthermore the Signifance value
for this hypothesis is .005 which is lesser than the P- value 0.05, hence it proves the alternate
hypothesis that:
“Professional growth opportunities and Employee Development programs have a significant
positive impact on employee's motivation.”
73
Chapter Six
CONCLUSION AND RECOMMENDATIONS
6.1 Conclusion
The purpose of this research was to study the impact of intrinsic rewards on employee’s
motivation at PPL, along with other supporting variables, such as empowerment, recognition
and professional growth and development opportunities in the organization.
Whereas intrinsic rewards aim to personally satisfy the employee’s self – esteem and self-
actualization needs, Variables such as those referred above internally motivate and reinforce
employee engagement by reducing employee turnover, creating the work more challenging
than before , creating a sense of accomplishment specially when employees are recognized
.Furthermore when employees envision heir professional growth and development
opportunities inside the organization , they tend to improve their overall performance and try
their best to excel their performance targets as a result.
Results of statistical analysis have proven beyond doubt the relationship between IR and
Employee Motivation especially through the factors such as empowerment, recognition and
professional growth and development opportunities.
The evidences collected through questionnaire and interview were done with the specific
objectives of this research. On the basis of research findings, following conclusions have been
drawn with our research.
Pakistan petroleum limited (PPL) believes in providing all means of support and appreciation
to its employees. It is vital for the organization to express the extent to which it values its
74
employees .At PPL the board of directors have included intrinsic rewards along with extrinsic
rewards as an essential part of their rewarding system that is applicable for all the employees
throughout the company. It includes officers, shift workers (both male and female), line
workers, contractual workers and managers. There is one manager of each department who has
an experience of 25- 32 years in PPL. PPL believes that extrinsic rewards (money) pressurize
the employees’ to complete their tasks and employees focus on completing their work or
reaching targets only .Intrinsic rewards on the hand develops a sense of responsibility,
accomplishment, accountability and it leads to a healthy competition among employees in the
workplace as recognition, empowerment and professional growth opportunities for a specific
employee reflects his competence level and dedication to the company.
It can be evident from the responses received against the question in questionnaire that “I am
highly motivated from intrinsic rewards such as empowerment, recognition and professional
growth and development opportunities prevalent in the company” in which upto 75 % of
population Strongly Agreed while the rest 20 % agreed which supports the fact that PPL does
implement an intrinsic reward policy and that its intrinsic reward policy is not restricted to
highest ranks but it is for all the employees. As a result the employees never feel monotony in
their daily work and feel that their tasks are worthy enough to be carried out and through it,
they are contributing their efforts to achieve organization’s goals.
The research effectively dealt with the research questions in the beginning of chapter 3 that
were formed for this study. The findings from qualitative and quantitative assessments showed
that PPL has effectively implemented intrinsic rewards policy for all the employees, these
intrinsic factors include empowerment, recognition and professional growth opportunities and
employee development programs that have a significant positive impact on employee
motivation at levels of hierarchy. When employees are motivated, automatically their
performance and zeal for excellence increase. Sometimes due to monotonous work
responsibilities employees lose their self-interest and delay their work. Empowering the
employees fastens decision making process at all levels and employees perceive their tasks
critical for organization’s success. Recognition programs and practices increases the employee
morale and they feel valued, which represents that recognition programs positively impact on
75
employee motivation. When employees see professional growth opportunities in the

organization, they work more diligently in order to avail them and move forward. Employee
development programs on the other hand develop employees professionally, encourages
employee networking, develops confidence in employees and it promotes information sharing.
Therefore it can be concluded that intrinsic rewards have a positive significant impact on
employee motivation.
6.2 RECOMMENDATIONS
The following are few guidelines for enhancing employee motivation through intrinsic rewards
that were highlighted during the interview with HR manager while some are deduced from
Respondents’ feedback.
1-The research findings reveal that whereas the overall relationship between intrinsic rewards
and Employee motivation is significant. However, according to the respondents’ feedback,
Empowerment is not proportionate to the hierarchy, which is making decision making difficult
due to communication gap. The employees of age bracket 41-50 are most satisfied by the
degree of empowerment whereas the employees within age bracket of 21-30 strongly disagreed
to the authority of making critical decisions regarding their work and they have to discuss it
before with their supervisor’s which consumes a lot of time and decision making process gets
slow. It is recommended that empowerment should be cascaded down to the lower levels of
management depending on employee performance to improve decision making process at
lower levels.
2-The research findings reveal that recognition programs currently practiced at PPL are quite
traditional, although senior employees are satisfied from them but young employees want
something unique and exciting to be motivated so PPL should adopt recent trends of
recognition programs such as:
76
I. Early Service Recognition Awards:

From the word service awards, the first thing that come into mind is anniversary or the
awards given for a tenure of 10 years’ of service in a company. Why not change this
trend and shift to early recognizing practices for new employees. Implementing it will
reward and recognize new employees as soon as the completion of their one year in the
organization. It will motivate them from the beginning of their employment.
II. Recognition through Social Media:

Recognizing and rewarding employees within the organization is a common practice
therefore, now employees should be recognized on social media as well. There should
be an online recognition platform or website on which employees should be recognized.
Another recommendation regarding this is that employee recognition videos and
pictures should be posted on the recognition website as it is the most powerful
communicator and no doubt social media websites such as Facebook, Instagram,
twitter, Pinterest spread news abruptly
III. Daily Recognition of Employee’s:
Recognition practices are annual or restricted to the end of months or sometimes it

is half yearly, but Why not daily? Employees’ should be recognized daily, and for
that the presence of a recognition platform in the organization is essential. Through
Daily recognition, employee efforts will be appreciated daily.
3. The research findings reveal that employees are developed through various trainings and
development programs. It is recommended that instead of training and developing employees
inside the organization, PPL should adopt recent trend of “Boating camps”.
In boating camps employees are taken to field locations where they experience relaxing
atmosphere, there are several activities such as scuba diving, paddle boarding, fishing,
motorboats and other adventurous entrainments.
77
 Training and discussions at such places are always healthy and employees’ are able to
retain their information sharing.
 Boating camps are best means of employee networking and socialization, and their
individual learning experiences are great due to peaceful mind set.
78
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APPENDIX 1
Research survey questionnaire
Research Survey of Pakistan Petroleum Limited

Questionnaire for Impact of Intrinsic Rewards on Employee Motivation
I am a student of Bahria University Karachi Campus and as a part of my MBA curriculum

I am conducting a research for academic purposes. The data collected shall not be disclosed
to any unauthorized person. Kindly answer following questions; your cooperation will be
highly appreciated.
Respondents’ Profile:
Gender: Male Female

Department: ___________________________
Job Title: _______________________
Age group: 22- 30 31-40 41-50 51-60
Education: Under Graduate Graduate Master Ph.D.
No. of years in service: ___________________________
Date: ___________________________
Instructions
a. Please fill-out the questionnaire and kindly check the appropriate box where it
deems necessary.
b. Choices are defined as: (1) Strongly Disagree (SD), (2)Disagree (DA), (3) Neutral
(N),(4) Agree (A),(5) Strongly Agree (SA)
87
STATEMENTS SD D N A SA
(1) (2) (3) (4) (5)
MOTIVATION
1. I am highly motivated from intrinsic rewards such as empowerment,

recognition and professional growth and development opportunities prevalent
in the company.
2. I am highly motivated from non-monetary rewards as they make my work
more interesting and challenging than before.
EMPOWERMENT
3. I feel sufficiently empowered in my job.

4. I am involved in making decisions that affect my work.
5. I am allowed to take self-decisions on critical job issues without
consulting my supervisor.
6. As I gain expertise, I’m allowed more latitude on the job.
7. I have access to the information I need to make good decisions.
8. Empowerment helps me do my job independently & efficiently.
9. My supervisor encourages me to take initiatives and gives me the
opportunity to suggest improvements related to work.
10. Empowerment have a significant positive impact on my motivation to
excel my job.
88
STATEMENTS SD D N A SA
(1) (2) (3) (4) (5)
RECOGNITION
11. The company values my work.

12. I am appreciated by my boss/supervisor when I do a good job.
13. I receive recognition when I perform above expectations.
14. I am satisfied with the recognition practices in my company.
15. There are diverse employee recognition programs in my
company.
16. There is consistent need of employee recognition programs in
my company.
17. Lack of employee recognitions leads to employee turnover.
18. On the spot recognition motivates me a lot and I feel valued in
front of my peers.
19. Certificates and best performance awards keeps me
enthusiastic for my work and I work more diligently.
20. Appreciation letter / Email from superiors boosts up my
motivation level.
21. Employee recognition is my company is unbiased and based on
merit.
22. Employee recognition are influential as it motivate the
employees to learn more and exhibit outstanding job performance.
23. My confidence ,self- esteem and interpersonal skills are
improved when I am socially recognized at workshops , annual
dinners , events, ceremonies & etc.
24. Recognition have a significant positive impact on my
motivation to perform better than before.
89
PROFESSIONAL GROWTH AND DEVELOPMENT OPPORTUNITIES
25. There are numerous opportunities in my company from which I

continuously learn and improve myself.
26. Employees are encouraged to seek professional development.
27. There are career advancement opportunities in my company.
28. The Company offers an excellent leadership development program.
29. Employee development is the key to success for an organization.
30. Employees are continuously developed through training, mentoring,
education and promotional opportunities in my company.
31. Senior managers mentor junior employees
32. Employees receive appropriate trainings to enhance their
effectiveness
33. My Supervisor provides me guidance and feedback on how I can
advance my career at the Company.
34. Future leaders are developed from within the company.
35. Professional growth and development opportunities have a
significant positive impact on my motivation.
90
91

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Chapter one

1.1 Purpose and Significance of Study

1.1.1 Introduction to the Organization

Figure 1.1: Core Areas and Support Departments at PPL

FINANCE & BUSINESS INTERNAL

Figure 1.2: Pakistan Petroleum Limited Organization Chart

1.1.2 Intrinsic rewards policy at Pakistan petroleum limited

Professional Growth Opportunities and employee development programs

1.2 Problem Background

1.3 Problem Statement

1.4 Research Questions

1.5 Research Hypotheses

Ha: Empowerment has a significant positive impact on employee’s motivation at PPL.

significant positive impact on employee’s motivation at PPL.

positive impact on 'employee’s motivation at PPL.

1.6 Objectives of Study

The objectives of the study are:

1.7 Scope of the Research

1.8 Limitations of this Study

This study has some limitations, as defined below:

1.9 Prospects of Further Research in the Area

1.10 Ethical Considerations Involved

1.11 Conceptual Framework

FIGURE 1.3: CONCEPTUAL FRAMEWORK

1.12 Organization of Thesis

Chapter 6 will constitute recommendations and conclusions to the study.

Every organization though it is a multi-national or a government organization, desire that its

2.2 Drivers of motivation

Figure 2.1 Other Motivation Theories

2.3 Reward system

2.4 Intrinsic rewards

2.5 Impact of intrinsic reward on employee motivation

Naturally humans have a tendency to seek control of their surroundings.Similiarly employees

2.6.1 Perspectives on employee empowerment

1- Socio-structural perspective of empowerment:

2- Psychological perspective of empowerment:

Psychological approach of empowerment as discussed by Ro &Chen (2011) is developing the

4 Facets of psychological empowerment

2.6.2 Various forms of employee empowerment

1- Empowerment through participation

 Autonomous group work:

 Empowerment through ownership:

2-Empowerment through involvement

3- Empowerment through delayering

Figure 2.2: various forms of employee empowerment

Empowerment Job enrichment

2.7 Impact of empowerment on employee motivation

Delegation of power and engagement induces the employee to indulge in organization's

2.8.1 Why Employee Recognition Programs Are Important

I. Recognizing the employee’s years of service.

Figure 2.3: Top 5 recognition goals

2.8.2 Cost-Benefit Analysis of Employee Recognition

Universally whenever a recognition program is implemented effectively it always costs very

1. Individual performance is Greater employee satisfaction and enjoyment of work - more

3. Employees receive their performance feedback immediately either individual or group

4. Employees become cozy when working in teams.

5. Recognition contributes to employee retention and less turnover.

1. Time consumption while designing and implementing the program

2. Time consumption while recognizing the employees.

3. Time consumption of introducing new policies and programs regarding recognition,

2.8.3 Unique Ways of Recognizing Employees

Figure 2.4: A depiction of how employee recognition works

According to Lawler (2002) recognition influences the employee performance in following