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Chapter 3

Theoretical framework

3.0 THEORITICAL FREAMEWORK

A reward, tangible or intangible, is presented after the occurrence of an action (i.e. behavior) with the intent to cause the behavior to occur again. This is done by associating positive meaning to the behavior. Studies show that if the person receives the reward immediately, the effect would be greater, and decreases as duration lengthens. Repetitive action-reward combination can cause the action to become habit. Motivation comes from two sources: oneself, and other people. These two sources are called intrinsic motivation and extrinsic motivation, respectively. Reinforces and reinforcement principles of behavior differ from the hypothetical construct of reward. A reinforce is any stimulus change following a response that increases the future frequency or magnitude of that response. Positive reinforcement is demonstrated by an increase in the future frequency or magnitude of a response due to in the past being followed contingently by a reinforcing stimulus. Negative reinforcement involves stimulus change consisting of the removal of an aversive stimulus following a response. Positive reinforcement involves a stimulus change consisting of the presentation or magnification of an appetitive stimulus following a response. From this perspective, motivation is mediated by environmental events, and the concept of distinguishing between intrinsic and extrinsic forces is irrelevant.

Applying proper motivational techniques can be much harder than it seems. Steven Kerr notes that when creating a reward system, it can be easy to reward A, while hoping for B, and in the process, reap harmful effects that can jeopardize your goals. Incentive theory in psychology treats motivation and behavior of the individual as they are influenced by beliefs, such as engaging in activities that are expected to be profitable. Incentive theory is promoted by behavioral psychologists, such as B.F. Skinner and literalized by behaviorists, especially by Skinner in his philosophy of Radical behaviorism, to mean that a person's actions always have social ramifications: and if actions are positively received people are more likely to act in this manner, or if negatively received people are less likely to act in this manner. Incentive theorists tend to distinguish between wanting and liking, where liking is a passive function evaluating a stimulus, but wanting adds an active process "attracting" the person towards the stimulus.

Incentive theory distinguishes itself from other motivation theories, such as drive theory, in the direction of the motivation. In incentive theory, stimuli "attract", to use the term above, a person towards them. As opposed to the body seeking to reestablish homeostasis pushing it towards the stimulus. In terms of behaviorism, incentive theory involves positive reinforcement the stimulus has been conditioned to make the person happier. For instance, a person knows that eating food, drinking water, or gaining social capital will make them happier. As opposed to in drive theory, which involves negative reinforcement a stimulus has been associated with the removal of the punishment the lack of homeostasis in the body. For example, a person has come to know that if they eat when hungry, it will eliminate that negative feeling of hunger, or if they drink when thirsty, it will eliminate that negative feeling of thirst.

Chapter 4

Data/Methodology

4.0 TOOLS OF DATA COLLECTION

In order to find data on reward and employee performance I collect data on three variables: Reward, Motivation, employee performance. The data collection process of asking questions of people… Data on all the variables will be collected through questionnaires. Only respondent’s filled questionnaire will be used. Liker Type Scale will be used in order to check the fairness, reliability and feasibility depending upon situations in the questionnaires.

Respondents will be assured that information provided by them will be kept in secret (confidentially) to get the questionnaires filled; researcher intended to visit organization personally. Variable of this study is Reward, motivation and employee performance. Questions related to these variables are started after personal data requirements and the scale is defined which is:

1. Strongly disagree    2.Disagree      3.Neutral         4.Agree           5. Strongly agree

The part question no. (1-9) is related to Reward, so on (10-14) is on Motivation and (15-18) is related to employee performance.

More specifically, the first benefit to use questionnaire technique is that

It is good for measuring attitude and eliciting other content from research participants.

It is Inexpensive.

It can be quick turnaround.

It can be administered to groups.

It can administer to probability samples.

There is an ease of data analysis for close-ended items.

But on the other hand, there are some weaknesses of using questionnaire technique like

It needs validation.

It must be kept short.

The high ratio of non response to selective items

Acknowledging that each method has some limitations but efforts will be made to minimize the weaknesses in order to increase the validity of the result.

4.1 SAMPLING TECHNIQUE AND SAMPLE

The Population of my study will be employees of banking sector of Pakistan. In which the sample size of 150 employees will be taken for conducting the study by using simple random sampling in order to simplify the findings

4.2 MEASURE

In case of measuring Reward, Motivation and Employee Performance the respondent filled questionnaire will be used. Participant data was obtained thorough in one survey with 5-point liker scale only. Respondents will asked a few questions. The survey contained a total of 18 questions and took approximately 10 to 15 minutes to complete. There were at least 4 questions in the survey obtaining data for one variable and some questions were directly obtaining data with no complications. Measure for each variable is defined below:

REWARD

Reward was measure by asking the nine questions by using the 5-points itemized rating type scale ranging from (1) strongly disagree to (5) strongly agree

MOTIVATION

Motivation was measure by asking the five questions by using the 5-points itemized rating type scale ranging from (1) strongly disagree to (5) strongly agree

EMPLOYEE PERFORMANCE

Employee Performance was measure by asking the four questions by using the 5-points itemized rating type scale ranging from (1) strongly disagree to (5) strongly agree

METHODOLOGY

For  analysis of data we will use SPSS (Statistical Package for Social Science) 16.0 software in which we will make analysis in to two parts where part one will based on descriptive statistics that can be use to “describe and summarize data and include measures of central tendency (average) and dispersion (the spread of data or how close each other is to the measure of central tendency)” (Lewin, 2005) and part two will based on inferential statistics that can be use to “identify differences between groups, look for relationships between attributes and create models in order to be able to make predictions” (Lewin, 2005). The methodology that we will adapt is discussed below one by one  

In order to get the overall summary of variable we will used descriptive statistics in which we will come to know about the nature of response that we will get from respondent like the value of maximum, minimum, mean and standard deviation.

We will use frequency distribution which is a descriptive measure used for a graphical representation of the data to check the frequency (occurrence of one option) of the data as well as the normality curve to check either data is normally distributed or not.

To check the overall picture for identifying the relationship between dependent and independent variable we will use scatter-plots. This matrix shows all the possible two dimension plots of the variables. Scatter plot will used to see the graphical picture of relationship between the dependent and independent variable.

We will use regression analysis to find out the effect size of independent variable on dependent variable that how much change will occur in dependent variable due to change in independent variable by using regression equation for analysis.  Where we will check the value of f-test to check the goodness of fit of the model. We will also make focus on the value to T to check the significance level of relationship for the acceptance or rejection of our alternative hypothesis. We will also make focus on the value of R square to see the contribution level of variable mean how much independent variable contribute in changing the value of dependent variable.

Since the objective of this study is to check the impact of perceive organizational support on turnover intentions in banking sector of Pakistan. So, here in this study ordinary least square (OLS) method of simple regression will be used to find such equation which could be used to find the impact of reward on employee performance and the specified regression equation will take the following form

TI = a + b (POS) +

The equation which shows above where TI is the dependent variable and C is the value of constant; B (POS) is the value of independent variable shows the partial regression coefficient represents the change in dependent variable, due to one unit change in independent variable. Ei is the error term.

We will also use correlation to find the relationship among variables as well as check the strength of the relationship of different variables. It will also show the direction of relationship between two variables.