Organizational Performance: Motivation and Its Impacts

Introduction

Introduction

This chapter contains the background of motivation and its impacts on the organizational performance. It also provides the summary definitions and base theory, the background of the host organization, the rationale for the research area, the research objectives and investigations hypothesis. It concludes with the outlined methodology and the plan of the dissertation.

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Background to the study

The centrality of employee input in an organization’s overall performance can only be ignored at the peril of an organization’s long-term survival. The significance of employee performance in the contemporary business environment is determined by the worker’s contribution (Ola & Trond, 2015, p. 37). While it is possible to acquire top-notch technologies to improve operational effectiveness and efficiency, it is relatively complex when dealing with the human resource. Despite the complexity, developing an efficient workforce cannot be ignored. Different concepts and theories on human resource management have been formulated to assist organizations to develop a robust workforce (Brown, 2002).

Many business organizations are increasingly applying employee satisfaction through the employment of technique of empowerment. Empowerment is the process of giving the employees authority so that they can be more relevant to the business organization by participating in the decision-making process. By introducing empowerment, there will be no flow of control from the top echelons of the company downwards.

Empowered employees will make decisions on their own since they do have their voice on what to do, when to do and how to do (Carter, 2009). It can further be noted that businesses perceive remuneration as an element that can promote an organization’s superiority with reference to the competition rather than cost (Adiguzel et al., 2010, p. 290). This trend is most prevalent within the private sector. Many classical researchers contend that organizations in the private sector are gradually aligning pay schemes to the employee or organizational performance (Lucifora & Origo, 2015, p. 610; Britton, Samantha, Chadwick, & Terry, 1999, p. 27).

Barcelo (2000) suggested that “the present and immediate influence on the vigour, direction and persistence of action can be termed as motivation” (p. 24). It can be noted that business managers are striving to establish and maintain an atmosphere that is more favourable to the performance of individual employees who are striving together in groups towards attainment of the pre-determined goals (Kinni, 1994, p. 14). In contrast, compensation can be offered to workers as per the following methodologies: the customary or traditional approach; implicit bargaining; human relations approach; internalized motivation; and competition (Robson, 2002, p. 62).

Whether higher compensation leads to better performance is a very contentious issue that has attracted both proposing and opposing opinions from different spheres of human resource management. Considerable research has gone towards the study of the link between employee performance and its relationship, or lack from that point forward, with the amount of pay the employees receive. This dissertation proposal investigates whether an organization’s overall performance is a factor of the individual employee performance. The thesis considers the integration of compensation systems one of the fundamental strategic issues in the contemporary business environment.

Small illustrative payment may compete with high worker turnover and non-appearance and none of them is productive to the inevitable destiny of the company. In this way, in the 1950s, occupation, expansion started to grow up in noteworthy associations. Be that as it may, one can assert that partner high pay with execution represents a danger of workers losing their occupation positions in the event of inability to accomplish the normal execution.

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This case may antagonistically influence the degree to which the representatives relate to the firm, regardless of the past studies. Consequently, the popularity of performance-related pay has increased considerably. The best way to define the performance-related system is to include “a system that awards employees who have worked their normal working lives with money” (Adiguzel et al., 2010, p. 284).

Problem Statement

Most organizations have over-relied on pay-for-performance approaches to their strategic human resource management practices. Results from past studies affirm that “institutions extensively relied on compensation systems in an effort to improve the organizational performance by positively influencing their employees” (Torre, Giangreco, & Maes, 2014, p. 48). Consequently, different pay structures have been formulated to assess their contribution to employee performance. Integration of dispersed pay structures in an organization’s compensation system may culminate in adverse effects. Other studies show that “the contribution of sparse pay structures to employee performance might be insignificant” (Torre et al., 2014, p. 55).

While many people have developed the perception that more pay can lead to better performance, this issue is more complicated than meets the eye. Employee performance is a mix of many factors, which do not necessarily end with a better payment. Other studies show that “even though the issue of the significance of relative and absolute pay has been extensively researched, numerous gaps remain unexplored” (Torre et al., 2014, p. 77).

Lawler (2000) further supports this view by emphasising that “the pay-for-performance approaches are not always effective in producing the desired results” (p. 76). Therefore, in the course of formulating employee compensation systems, the dissertation suggests that it is imperative for organization’s management teams to evaluate the correlation between the employees pay level and their performance.

Research Purpose and Rationale

This paper aims at studying whether paying employees more leads to more performance. The proposal will deploy the case study of King Hamad University Hospital to understand these issues. Further, it will incorporate the existing literature that has discussed employee performance and factors that determine such performance in an organization. Incorporating the current literature will lead to a better appreciation of critical issues that relate to the subject that the case study will reveal. The rationale for conducting this study has arisen to understand the relationship between pay level and the employee motivation.

Currently, organizations increasingly appreciate human capital as a source of sustainable competitive advantage. Thus, the need to develop and retain a strong human capital base has increased considerably. However, it is imperative for organizations’ management teams to appreciate the contribution of their employee compensation systems to worker performance. Such consideration will provide the organization’s management team with insight on how to adjust their employee compensation systems.

Research Objectives

This proposal intends to achieve some number of goals, which include:

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  • To evaluate the relationship between pay and employee performance, and
  • To assess the impact of high employee pay on employee motivation and productivity.

Research Question

The above research objectives will be assessed by taking into consideration the following research question.

  • What is the impact of the level of pay for the employee performance?

Research Hypothesis

The proposal is based on the following null (H0) and alternate (H1) research hypotheses to achieve the research objective.

  • H0: High employee pay directly correlates with higher employee performance.
  • H1: There is no correlation between high pay and high employee performers.

Literature Review

Introduction

This section highlights the key ideas and arguments that have been presented in the existing literature on the issue of performance management in organizations. Among the many factors that may be revealed in the literature concerning performance management and the role of compensation will be discussed intensely. The section will also incorporate substantial research that relates to King Hamad University Hospital to its employee performance management issues.

The concept of employee remuneration

Employees who have engaged in productivity for so long and are more involved in organizational growth are known as motivated employees. Pride, Hughes, and Kapoor (2011) found out that “employee remunerations can be described as the inclination of an individual to exert high magnitude of efforts” (p. 255). Employees are able to exercise a large magnitude of energy when their capability and the job match is in balance. Also, they can do this when due recognition is made for their attainments and achievements and when prospect for growth are available to those employees who desire for that (Wentland, 2009).

Low morale among the employees is a sign of an organizational disease that signifies a lack of motivation and demands a high attentive treatment and cure. Hence, for any business organization to accomplish its objectives and goals, high-spirited employees are the need of the hour. Employee remunerations have become an ingredient fact to make them give their best.

The profit and oriented non-profit organizations are increasingly being concerned with the employee motivation to improve their performance (Brown, 2002). Many of the organizations are adopting “a flat organizational structure” (Patel, Messersmith, & Lepak, 2013, p. 1437). Consequently, firms are considering alternative approaches to sustain their employee level of motivation. This plan has led to the adoption of payment systems in their employee compensation schemes.

However, a conclusive theory or approach to human resource management has not been established to guarantee better employee performance. One of the payment systems that are commonly used by organizations entails the integration of wages and salaries. Many past studies have found assert that “wage implies the price of labour” (Adiguzel, Yuksel, & Tekin, 2010, p. 290).

The incorporation of wages and salaries in employee compensation processes has led to the integration of diverse wage management practices. One of the most notable methods entails the increase in wage levels. Firms are linking pay to performance to remain competitive through improved employee productivity (Finney, 2008). However, in the course of designing the pay-for-performance schemes, it is imperative for organizations take into account the relevant factors that affect performance.

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A study including more than 8,000 workers who were chosen from Japanese and American assembling firms demonstrated that representatives who got high pay put more exertion in their employments. Such officials are more inclined to stop their working environment. A study on the execution of the English, German, and Italian football groups demonstrates that high wage levels correspond with the group performance (Cooper & Schindle, 2006, p. 37). If workers seem to be highly paid, they will be incentivised to perform at an abnormal state to keep up their wages and offset the inputs and the yields. The employees decrease the danger of losing their generously compensated occupations due to poor execution (Collins, 2001, p. 88).

A few plans are more far reaching overall business associations attempting to improve the compensations of the representatives. The vital official pay activities will focus on what the agents accept to be noteworthy. Giving workforce more choice making force and responsibility enlarges their circles of control over the assignments for which they are considered responsible and productively prepares them to achieve those employments.

At the beginning, convictions of unsettling influences, creating from being held responsible for some activity for which a worker does not have the sources to perform are debilitated. Here, worker vitality is “derailed self-sparing to upgrade errand accomplishment” (Parker, 2001, p. 201). At the point when the power to settle on the choices in the association is squeezed, the specialists who are sufficiently experienced in administration are offered with the opportunity to create new plans.

The power to settle on choices among representatives extends the business to have more adaptable workers. Likewise, it abuses all the more keenly the learning of its workforces and upgrades the swapping of data and thoughts among the offices and the representatives. Frequently, these plans improve workers’ stances toward the client and the business while boosting fearlessness. Firms are linking pay to performance to remain competitive through improved employee productivity (Finney, 2008). However, in the course of designing the pay-for-performance schemes, it is imperative for organizations take into account the relevant factors that affect performance.

King Hamad University Hospital is one of the biggest hospitals in Bahrain that have integrated the concept of pay as a way of motivating its workforce for high performance. For example, on March 26, 2015, King Hamad University Hospital announced its decision to pay the incoming Chief Finance Officer [CFO], Ruth Porat, US$70 million by 2016. The pay package comprised a US$650,000 annual base salary.

The pay package also included a special one-time bonus amounting to US$5 million. However, in the event of the incoming CFO terminating the contract before completing one year within the firm, he or she will be required to repay all the advanced special bonuses. Apart from the salary and bonuses, the payment scheme for the CFO further comprised equity grants. The above aspect illustrates the extent to which King Hamad University Hospital associates high pay to increase employee performance.

As said over, the announcement had represented a portion of the theories about the worker pay. Diverse researchers hold distinctive perspectives and hypotheses. The progression of necessities, as hypothesized by Maslow, shows that the director obliges considering the prerequisites of the workforces and satisfying them to persuade them. Many business organizations are increasingly applying employee satisfaction through the employment of technique of empowerment.

Empowerment is the process of giving the employees authority so that they can be more relevant to the business organization by participating in the decision-making process. The classical scholars’ idea of accomplishment of representative fulfilment examines the qualities of high accomplishment roused individuals, and it demonstrates that the capacity of accomplishment arranged can be found out (Flint, 2012).

Employee Empowerment

Many past studies on the impact of pay on employee and organizational productivity have shown that “pay contributes to productivity gains” (Lucifora & Origo, 2015, p. 211). The contribution of the payment schemes to the employee and organizational performance varies, depending on whether the pay is individual or collective performance-relate. Moreover, the previous researchers emphasise “the returns to performance pay are larger for ethnic minorities, particularly in the case of women” (Lucifora & Origo, 2015, p. 607). Employees are able to exercise a large magnitude of energy when their capability and the job match is in balance.

Also, they can do this when due recognition is made for their attainments and achievements and when prospect for growth are available to those employees who desire for that (Wentland, 2009; Gratton & Jones, 2004). The Early research considers that had been done as in front of the calendar as the 1950s have demonstrated that extremely enhanced and separated occupations completed in lower specialist yield and certainty (Hardester, 2010).

The likelihood of experiencing a high rate of wilful occupation turnover is high. The classical researchers emphasize that “the increment in intentional representative turnover may unfavourably influence the appeal of an association in the work market” (Dahesh, Nasab, & Ling, 2012, p. 147). In this way, the adequacy and proficiency with which an association grows long haul aggressiveness regarding human capital may be affected.

Notwithstanding the above test, over depending on the pay to execution frameworks may unfavourably influence an association’s long haul survival. This perspective emerges from the way that the business will be subject to monetary changes, for example, expansion. Amid a financial downturn, an association may not support pay increases. Burns and Bush (2000) characterize such sensation as “pay pressure” (p. 38).

In addition, the presence of little wage differentials amid times of financial downturn may adversely influence the superior workers’ state of mind (Sims, 2002, p. 72). For instance, workers may add to a ‘why trouble’ mentality. Russell and Taylor-Iii (2008) are from the perspective that “connecting pay to execution may confuse the instalment plan that an association receives” (p. 84). For instance, by persistently expanding the great entertainers’ pay, it is feasible for the organization to achieve the top reach. This case implies that making extra pay increases, regardless of the workers winning it, will be considerably troublesome.

Subsequently, the pay-to-performance framework is not economical. For the most part, the ordinary workers may advance through the pay scale because of their span of administration in an association (Robbins, 2003). The general impact is that the pay-to-execution framework may be rendered insignificant because of the intensifying impact. Under such circumstances, top entertainers should seriously mull over looking for openings for work somewhere else.

Numerous business associations are progressively applying representative fulfilment through the job of the strategy of strengthening. Strengthening is the procedure of giving the representative power with the goal that they can be more relevant to the business association by taking part in the choice making process. By presenting strengthening, there will be no stream of control from the top echelons of the enterprise downwards. Engaged representatives will settle on choice naturally, since they do have their particular voice in what to do, when to do and how to do (Bell, 2005).

For cultivating worker pay, small organizations can offer an impeccable feel since workers have the capacity to witness the results of their commitments in another strategy than in Goliath associations. Low morale among the employees is a sign of an organizational disease that signifies a lack of motivation and demands a high attentive treatment and cure. Hence, for any business organization to accomplish its objectives and goals, high-spirited employees are the need of the hour (Hair, Bush, & Ortinan, 2006).

They thrive in surroundings where they can make a fragile refinement, and where a larger part of representatives in an organization are fit and pushing together to propel the business. Fittingly organized acknowledgment and financial prize projects are vast, yet not constrained in this mix (Gitman, 2000). One other approach to accomplish worker inspiration has been to investigate modules to a man’s employment as the essential components in improving execution.

Diverse researchers hold distinctive perspectives and hypotheses. The progression of necessities, as hypothesized by Maslow, shows that the director obliges considering the prerequisites of the workforces and satisfying them to persuade them. Many business organizations are increasingly applying employee satisfaction through the employment of technique of empowerment. The power to settle on choices among representatives extends the business to have more adaptable workers. Likewise, it abuses all the more keenly the learning of its workforces and upgrades the swapping of data and thoughts among the offices and the representatives.

In spite of the statement that high pay advances worker execution, representatives in lucrative occupation positions fear the danger of losing their employment and pay premiums. Many researchers attest that “this system is basically predominant in associations that have embraced individual execution related pay frameworks” (Harteis, 2012, p. 100). Under such circumstances, representatives comprehend the obvious results that are connected with poor execution.

Organizations logically see wage as a component that can advance an association’s prevalence with reference over rivalry instead of expense. This pattern is most common inside of the private division. Bennett and Rundle-Thiele (2002) fight that “associations in the private part are steadily adjusting pay plans to representative or authoritative performance” (p. 199). Thus, the prevalence of execution related pay has expanded extensively.

The performance described honours specialists who have worked with their ordinary working levels with cash (Ashtiani et al., 2011, p. 284). Numerous examination studies have found that the boss capable sparks of labourers are non-financial in nature. Monetary motivators are insufficient helpers partially since prospects frequently surpass results and imbalance between salaried people may part as opposed to uniting the work powers. Perceived non-fiscal hopeful helpers support group quality and incorporate gratefulness, movement and responsibility (Gallos, 2008).

Business administrators, which distinguish the fewest wins of work powers empower majority rule environments and approach workforces with deference and decency and see to it that their work strengths are amazingly persuaded. One association’s manager meditated to line up with thirty intense non-monetary impetuses that cost nothing or little to execute. The astoundingly successfully spurring strengths like time off from work and letters of applause improved individual feeling of pride and fulfilment (Blanchard & Cathy, 2002). Therefore, a method that fulfils natural, self-completing own needs and blends financial prize frameworks may be the best worker stimulator (Gitman & McDaniel, 2009).

On the off chance that the organization could incorporate the individual needs with the hierarchical objectives, the representatives would accomplish the self-regard needs or even the self-completion needs, subsequently, the inspiration would act naturally maintaining. These days, Theory Y has an impact on the approach plan for the workforce and shapes the thoughts of pay for the working execution. In any case, Theory X and Theory Y are occasionally utilized since they speak to the great circumstances. Practically speaking, directors and representatives fall under some place between the posts of the.

Farris, Neil, and Pfeifer (2010) had the perspective that “a few components if happened in the workplace would prompt no fulfilment, yet not disappointment” (p. 144). It is to be noticed that cleanliness components don’t bring about a more prominent size of inspiration, however for them the discontent would emerge. These elements contain the foundation, working environments, administration and organization strategy, professional stability, compensation, social relations, status, and superintendence (Ellingson & McFarland, 2011, p. 14). Frequently, these plans improve workers’ stances toward the client and the business while boosting fearlessness.

Firms are linking pay to performance to remain competitive through improved employee productivity (Finney, 2008). However, in the course of designing the pay-for-performance schemes, it is imperative for organizations take into account the relevant factors that affect performance.Empowerment is the process of giving the employees authority so that they can be more relevant to the business organization by participating in the decision-making process.

Employee remuneration theories

The early researchers who wrote about employee pay over a hundred year ago developed a new concept of motivating the employees, and he termed it as scientific management (Griffin & Moorhead, 2011). Their doctrines were based on the concept that the employees were economically encouraged and were allowed to work to earn as many wages as they can. Their primary assumption was that economic gain was the chief motivator that encouraged employees to perform well in their duty.

The other assumption was that work was innately obnoxious for the majority of the workforce and the money that the employees earned was more significant than the nature of the job. They can be said to be the father of the motivation theories, but their theory has a drawback as it considers only monetary benefits and has ignored other motivational factors.

The classical economists’ scientific management theory was supplanted by the human relations approach in the late 1930s. The human relationship theory is based on the assumption that the employees desire to feel important and useful and have strong social needs. These requirements are more significant than fiscal money in motivating the employees. Low morale among the employees is a sign of an organizational disease that signifies a lack of motivation and demands a high attentive treatment and cure. Hence, for any business organization to accomplish its objectives and goals, high-spirited employees are the need of the hour (Hair, Bush, & Ortinan, 2006).

The mirage of importance and involvement were anticipated to please employee’s social requirements. For instance, a manager might permit an employee group to engage in making a business decision despite the fact that he had previously decided what the decision would be. Thus, the emblematic gesture of appearing to permit participation was anticipated to stimulate motivation, despite the fact that no actual participation took place (Griffin & Moorhead, 2011).

One of the speculations that clarify the selection of the execution related pay is the competition hypothesis. As indicated by the hypothesis, people continued to get prizes in their working environment, for example, advancement and pay increases (Adetule, 2011; Aquinas, 2006). Empowered employees will make decisions on their own since they do have their own voice in what to do. Thus, incorporating compensation variables among representatives in distinctive levels of administration assumes a vital part in propelling them to put more endeavours in their employment parts and obligations. Hence, the association’s execution is enhanced (Avery, 2004).

In this manner, the hypothesis emphasizes that wage disparity is straightforwardly connected to hierarchical and individual performance (Berman & Evans, 2006). The second hypothesis that backings the pay way to deal with execution is the reasonable pay hypothesis. The theory suggests that workers contrast their pay levels and those of their colleagues to figure out if they are genuinely compensated (Claudia, 2012, p. 140). This method clarifies why associations ought to survey the inner and outside value in forming the execution related pay plans (Clawson, 2011).

One of the theories that explain the adoption of the performance-related pay is the tournament theory. According to the theory, individuals compete so as to access prizes in their workplace, such as promotion and pay increments (Arthur, 2008; Baldwin, 2003). Consequently, integrating wage factors among employees at different levels of management plays an essential role in motivating them to put more efforts in their job roles and responsibilities.

Many past scholars have found that “the organization’s performance is improved considerably in the long run” (Hamann & Ren, 2013, p. 213). Therefore, the theory accentuates that “wage inequality is directly correlated to organizational and individual performance” (Gittleman & Pierce, 2015, p. 36). Ordinary motivational methods join personality sort and fragile offer against the hard offer. Sensitive offer methods have steady applications, approvals, eager cases, and direction. On the other hand, the other results revealed that “hard offer methods have an overshadowing exchange position and weight” (Clark, Gregory, & Robert, 1993, p. 147).

For informative specialists, motivation has a particular thought as an aftereffect of the essential part it has in understudy data. In any case, the careful sort of motivation that is assessed in the conferred scene of preparing contracts subjectively with the most ordinary kinds of motivation considered by investigators in diverse regions. The general impact is that the pay-to-execution framework may be rendered insignificant because of the intensifying impact.

Under such circumstances, top entertainers should seriously mull over looking for openings for work somewhere else. In a rundown, each administrator of an association knows the significance of representative compensations; consequently, enhancing the worker inspiration could help organizations increase performance and productivity. Thus, the importance of the worker remuneration is given much thought. The report examines the most proficient method to increase the representativeness inspiration to improve association’s execution.

The second theory that supports the paid approach to performance is the fair wage theory. The theory proposes that employees compare their salary or pay levels with those of their co-workers or the prevailing market rates to determine whether they are fairly remunerated (Price, 2007). This strategy explains why organizations should assess the internal and external equity in formulating the performance-related pay schemes (Pynes, 2013).

This behaviour arises from the fact that employees have expectations on wage levels and job positions (Holbeche, 2012). If they perceive that they are compensated unfairly, they are likely to reduce their effort in executing the assigned job tasks. Moreover, the development of the perception of being underpaid is likely to contribute to negative workplace behaviour amongst employees. Examples of such actions include absenteeism, sabotage, lack of cooperation, and cohesion amongst employees. This aspect might significantly reduce the overall organizational performance.

The third theory that forms the basis for pay as a strategy to motivate employees entails the efficiency wage theory. The theory holds that paying employees higher salaries and wages improves an organization’s competitiveness in the labour market. This improves the likelihood of attracting an experienced and talented workforce (Torre et al., 2014, p. 55). Furthermore, the theory proposes that high pay acts as an incentive in promoting employee performance.

A study involving over 8,000 employees who were selected from Japanese and American manufacturing firms showed that employees who received higher pay put more effort in their jobs. Such employees are more likely to quit their workplace. Higher wage levels are positively correlated with the respective team performance (Bryman & Bell, 2003, p. 122). If the employees are paid higher salary, they will be incentivised to perform at a higher level to maintain their salary and reduce the risk of losing their highly paid jobs (Torre et al., 2014, p. 88).

Despite the assertion that high pay promotes employee performance, employees in high paying job positions fear the risk of losing their job and wage premiums. It is true to affirm that “this strategy is mainly prevalent in organizations that have adopted individual performance-related pay systems” (Torre et al., 2014, p. 68). Under such circumstances, employees understand the apparent consequences that are associated with poor performance.

At the point when the essential needs are fulfilled, individuals’ development to the security needs (against peril, or employer stability). The following stage after this is having the need for sense and having a place. Individuals at this level are searching for companionship and yearning to have a place for a gathering. In the following level, “individuals require the acknowledgment and energy about the others; it is the self-regard and a sense of pride level” (Maslow, 1943, p. 372).

Finally, it is the self-completion needs, which individuals hope to satisfy themselves and in the quest for self- improvement, work fulfilment, and inventiveness. The administration used to compensate the representatives by concentrating on their physiological needs and security needs. Currently, the administration reward framework aims to fulfil the higher needs of the workers, for example, the self-regard needs (Fornell, 2002, p. 17).

The mirage of importance and involvement were anticipated to please employee’s social requirements. For instance, a manager might permit an employee group to engage in making a business decision despite the fact that he had previously decided what the decision would be. Thus, the emblematic gesture of appearing to permit participation was anticipated to stimulate motivation, despite the fact that no actual participation took place (Griffin & Moorhead, 2011).

The human relationship theory is based on the assumption that the employees desire to feel important and useful and have strong social needs. These requirements are more significant than fiscal money in motivating the employees. Low morale among the employees is a sign of an organizational disease that signifies a lack of motivation and demands a high attentive treatment and cure. Hence, for any business organization to accomplish its objectives and goals, high-spirited employees are the need of the hour (Hair, Bush, & Ortinan, 2006).

For informative specialists, motivation has a particular thought as an aftereffect of the essential part it has in understudy data. In any case, the careful sort of motivation that is assessed in the conferred scene of preparing contracts subjectively with the most ordinary kinds of motivation considered by investigators in diverse regions (Frost & Walker, 2007, p. 28). The two models exemplify the work of Maslow’s chain of the importance of necessities, in which Theory X speaks to the lower needs while Theory Y speaks to the higher needs. The traditional financial analysts had “the perspective that the administration could utilize either hypothesis to propel the representatives” (Freshwater, Sherwood, & Drury, 2006, p. 300).

Representative pay can be clarified as the extent of responsibility, energy, and creativity that an association’s workers identify with their employments. In actuality, a mixture of fluctuated theories and method for worker pay has seemed, reaching out from expanded contribution to financial motivators and representative strengthening.

Low morale among the employees is a sign of an organizational disease that signifies a lack of motivation and demands a high attentive treatment and cure. Hence, for any business organization to accomplish its objectives and goals, high-spirited employees are the need of the hour (Hair, Bush, & Ortinan, 2006). The mirage of importance and involvement were anticipated to please employee’s social requirements. In any case, the entrepreneurs ought to be mindful of such downsides.

A portion of the issues associated with unmotivated representatives incorporates breaking down the spirit, less happiness, and far-reaching deterrence. On the off chance that allowed to delay, these questions can decrease income, aggressiveness, and profitability, particularly for a little business. Despite the assertion that high pay promotes employee performance, employees in high paying job positions fear the risk of losing their job and wage premiums. It is true to affirm that this strategy is mainly prevalent in organizations that have adopted individual performance-related pay systems (Blanchard & Cathy, 2002).

The human resource approach in the compensation of the employees includes the doctrine of needs and motivation. The theory holds that paying employees higher salaries and wages improves an organization’s competitiveness in the labour market. This improves the likelihood of attracting an experienced and talented workforce (Torre et al., 2014, p. 55). Furthermore, the theory proposes that high pay acts as an incentive in promoting employee performance (Montana & Charnov, 2008, p. 56).

It is based on the assumption that employees want to contribute and can make real and genuine contributions. Thus, it has become an inevitable task on the part of the management to support such participation by employees and to establish a work atmosphere that makes full use of the manpower available. Kouhy, Vedd, Innes, and Yoshikawa (2009) found out that the benefit and non-benefit situated associations are progressively being concerned with the representative inspiration to enhance their execution (p. 32).

Most organizations are receiving a hierarchical level structure to cut off the accessible advancement opportunities. Thus, firms are considering options ways to deal with managing their worker level of inspiration. This method has prompted the reception of pay frameworks in their representative pay arranges. One of the pay frameworks that are utilized by associations involves the reconciliation of wages and pay rates.

Many researchers have in the past declared that “payment means the cost of the work” (Avolio, Walumbwa, & Weber, 2009, p. 435). The consolidation of salaries and pay rates in representative remuneration procedures has prompted the coordination of various pay administration rehearses. A standout amongst the most prominent practices involves the increment in compensation levels. Firms are connecting pay to execution with an end goal to stay focused on enhanced worker profitability (Bass, 2005). Then again, over the span of planning the pay-for-execution plans, it is basic for associations consider the applicable components that influence execution.

Abraham Maslow developed the Maslow’s hierarchy of needs and suggested that people have the desires and wants that affect their behaviour. The needs are categorized according to their importance, and a person advances to the next level of needs only after he or she achieves the lower needs. The higher the hierarchy of needs, the healthier a person becomes (Maslow, 1943, p. 372). The five needs are physiological needs, security needs, love, self- esteem needs, and self- actualization needs.

Physiological needs are the most basic needs, including the need for food, water, sleep, etc. When the basic needs are satisfied, people advance to the security needs (against danger, or job security). The next stage after this is having the need for sense and belonging. People at this level are looking for friendship and desire to belong to a group. At the next level, “people need the recognition and appreciation of the others; it is the self-esteem and self-respect level” (Maslow, 1943, p. 372).

Finally, it is the self-actualization needs, which people look to fulfil themselves and in the pursuit of self- development, job satisfaction, and creativity. The administration used to compensate the representatives by concentrating on their physiological needs and security needs. Currently, the administration reward framework aims to fulfil the higher needs of the workers, for example, the self-regard needs (Maslow, 1943, p. 372).

For studying the behaviour of the individuals at work, the classical economists formulated two models which he called Theory X and Theory Y. They represent two very different attitudes toward employee motivation. The two models are based on the work of Maslow’s hierarchy of needs, in which Theory X represents the lower needs and Theory Y represents the higher needs. The classical economists had the view that “the management could use either theory to motivate the employees” (Gittleman & Pierce, 2015, p. 42).

Workers who have occupied with profitability for so long and are more included in the authoritative development are known as persuaded representatives. Worker Compensations can be portrayed as the slant of a person to apply high greatness of endeavours (Coopers, 2005). The consolidation of salaries and pay rates in representative remuneration procedures has prompted the coordination of various pay administration rehearses. A standout amongst the most prominent practices involves the increment in compensation levels. Firms are connecting pay to execution with an end goal to stay focused on enhanced worker profitability (De Wit & Meyer, 2004).

The low spirit among the workers is an indication of an authoritative malady that implies an absence of inspiration and requests a high mindful treatment and cure. Thus, for any business association to fulfil its destinations and objectives, dauntless workers are the need of great importance. Representative compensations have turned into a fixing reality to make the representatives give their best.

If the company could integrate the individual needs with the organizational goals, the employees would achieve the self-esteem needs or even the self-actualization needs; thus, the motivation would be self-sustaining. Nowadays, Theory Y has influence in the policy design for personnel and shapes the ideas of pay for the working performance. However, Theory X and Theory Y are seldom used since they represent the extreme situations. In practice, managers and employees fall under somewhere between the poles of the. Herzberg, Mausner, and Snyderman (1959) developed the two-factor hygiene and motivation theory.

The theory stated that if some factors occurred negatively in the work environment, there would be no satisfaction (Herzberg, Mausner, & Snyderman, 1959, p. 144). It is to be noted that hygiene elements do not result in a greater magnitude of motivation, but for them the discontent would arise. These elements contain the establishment, working atmospheres, management and administration policy, job security, remuneration, social relations, status, and superintendence (Herzberg, Mausner, & Snyderman, 1959).

The second ingredient for employee compensation is to help the workforces with formulating the intrinsic motivation, which also contains recognition, accomplishment, advancement or growth, and personal interest in the job. Firms are considering options ways to deal with managing their worker level of inspiration. This method has prompted the reception of pay frameworks in their representative pay arranges. One of the pay frameworks that are utilized by associations involves the reconciliation of wages and pay rates. Many researchers have in the past declared that payment means the cost of the work (Herzberg, Mausner, & Snyderman, 1959).

The concept of achievement motivation is another theory that has a significant impact on the management of motivation issues. It is also related to the hygiene-motivation theory. It is observed that in individuals with higher levels of accomplishments, motivation seems to be more vested on their jobs. They tend to set high and obtainable goals and want feedbacks on how they performed on the job rather than how people think of them. Further, they are more interested in the personal accomplishments rather than honours. However, high achievement-motivated people might not make an effective manager. Moreover, the necessity for accomplishments can be instructed, and the classical scholars also had put forth some training programs for this (Gitman & McDaniel, 2009).

As mentioned above, the statement had illustrated some of the hypotheses about the employee pay. Different scientists hold different views and theories. The hierarchy of needs as postulated by Maslow demonstrates that the manager requires taking into account the requirements of the workforces and gratifying them so as to motivate them. Currently, organizations increasingly appreciate human capital as a source of sustainable competitive advantage.

Thus, the need to develop and retain a strong human capital base has increased considerably. However, it is imperative for organizations’ management teams to appreciate the contribution of their employee compensation systems to worker performance. Such consideration will provide the organization’s management team with insight on how to adjust their employee compensation systems.. The concept of achievement of employee satisfaction discusses the characteristics of high performance- motivated people, and it shows that the ability of success- oriented can be learned (Gitman & McDaniel, 2009).

Worker remuneration envelops teaching of the labourers and compensating them likewise according to the great work done. The specialists are routed through different measures with an aim to improve their performance. The motivational methodologies empower the labourers to play ceaselessly as they anticipate all the right things (Aswathappa, 2005).

Workers in any business oblige to stay working. Essentially at all times, the pay of the representative is satisfactory to empower them keep working for a foundation. Regardless, meeting expectations only for wages is not sufficient for workers to be inborn in an association. A specialist must be provoked to work for an association or organization. Distinctive individuals require diverse inspiration methods as they have shifted needs and determinations.

Worker compensation is a method concerning inclinations made by the people or subordinate organic entities among substitute types of planned movement (Easterby, Thorp, & Lowe, 2008). Kinicki (2009) proposed that “the present and quick impact on the force, course and ingenuity of activity can be termed as inspiration” (p. 24).) Business supervisors are endeavouring to set up and keep up an environment that is more positive to the workers who are trying to achieve the foreordained objectives (More, 2008, p. 14).

Inspiration can be offered to specialists according to the standard or customary methodology, human relations method and disguised inspiration (Muller, 2011, p. 62). This conduct emerges from “the way that representatives have desires on pay levels and occupying positions” (Codrington, 2002, p. 40). On the off chance that they see that they are unreasonably remunerated, they are liable to lessen their exertion in executing the relegated occupation undertakings.

Additionally, the improvement of the view of being come up short on is prone to add to negative working environment conduct amongst workers. The illustrations of such practices incorporate truancy, harm, resistance, and union amongst representatives. This perspective may fundamentally lessen the general hierarchical execution. The third hypothesis that structures the premise for pay as a methodology to persuade workers involves the proficiency wage theory. The theory holds that paying representatives high compensations and salaries enhances an association’s aggressiveness in the work market, thus increasing the probability of pulling in the experienced and capable workforce (Daft, 2005). Besides, the hypothesis suggests that high pay goes about as a motivator in advancing representative execution.

Employee compensation can be explained as the magnitude of the commitment, vigour, and originality that an organization’s employees relate to their jobs. In reality, a variety of varied hypotheses and means of employee compensation have appeared, extending from increased involvement to monetary incentives and employee empowerment. For small businesses, employee compensation can occasionally be predominantly challenging where the promoters have frequently worked for many years for establishing a company that he may be reluctant to delegate significant authorities to others. But the business owners should be aware of such drawbacks. Some of the issues connected with unmotivated employees include deteriorating morale, less contentment, and widespread dissuasion.

For fostering employee pay, small businesses can offer a perfect ambience since employees can witness the outcomes of their contributions in a newer method than in giant organizations. The consolidation of salaries and pay rates in representative remuneration procedures has prompted the coordination of various pay administration rehearses. A standout amongst the most prominent practices involves the increment in compensation levels.

Firms are connecting pay to execution with an end goal to stay focused on enhanced worker profitability (Pride et al., 2011; Griffin & Moorhead, 2011). They flourish in surroundings where they can create a delicate distinction, and where the majority of employees in a company are capable and pushing together to move the business ahead. Fittingly structured recognition and fiscal reward programs are significant, but not limited in this blend (Gronstedt, 2000).

One other way to achieve employee motivation has been to look into plug-ins to a person’s job as the principal elements in enhancing performance. A blend of worker compensations have been utilized by businesses as their drives to hold delighted workforce. Low morale among the employees is a sign of an organizational disease that signifies a lack of motivation and demands a high attentive treatment and cure. Hence, for any business organization to accomplish its objectives and goals, high-spirited employees are the need of the hour. Employee remunerations have become an ingredient fact to make them give their best (Griffin & Moorhead, 2011).

Early research contemplates that had been done as ahead of schedule as the 1950s have shown that very improved and sectioned occupations finished in lower worker yield and confidence (Robbins, 2003). Small representative remuneration may end to high worker turnover and non-appearance and none of them is profitable to the eventual fate of the business. Therefore, in the 1950s, occupation extension began to develop up in significant organizations.

However, one can claim that associating high pay with performance poses a risk of employees losing their job positions in case of failure to achieve the expected performance. This case might adversely affect the extent to which the employees identify with the firm, despite the past studies. The probability of encountering a high rate of voluntary job turnover is relatively high. Jensen, McMullen, and Stark (2007) accentuate that “the increase in voluntary employee turnover might adversely affect the attractiveness of an organization in the labour market” (p. 68). Subsequently, the effectiveness and efficiency with which a group develops long-term competitiveness about human capital might be adversely impacted.

In addition to the above challenge, over-relying on pay to performance systems might unfavourably affect an organization’s long-term survival. This view arises from the fact that the business will be subject to economic changes such as inflation. During an economic downturn, an organization might not sustain pay increments. Snell and Bohlander (2013) define such phenomenon as “pay compression” (p. 134). The existence of small wage differentials among the performers during periods of economic downturn might negatively affect their attitude (Heneman (2002, p. 201).

Lucifora and Origo (2015) are of the view that “linking pay to performance might complicate the payment schedule that an organization adopts” (p. 610). For example, by continuously increasing the good performers’ pay, it is possible for the team to reach the top range. This claim means that making additional pay increments, despite the employees earning it, will be substantially more difficult. Therefore, the pay-to-performance system is not sustainable. The average performers might progress through the pay scale due to their duration of service in an organization (Nyberg, 2008). The overall effect is that the pay-to-performance system might be rendered irrelevant due to the compounding effect. Under such circumstances, top performers might consider seeking job opportunities elsewhere.

Some schemes are widespread across all business organizations endeavouring to enhance the remunerations of the employees. The employee compensation initiatives will spotlight on what the employees believe to be significant. Giving workforce more decision-making power and accountability augments their spheres of control over the assignments for which they are held accountable and efficiently equips them to accomplish those jobs. At the outset, beliefs of disturbances developing from being held answerable for some action for which an employee does not have the sources to perform are weakened. Here, employee energy is sidetracked from self-saving to enhanced task achievement.

Firms are considering options ways to deal with managing their worker level of inspiration. This method has prompted the reception of pay frameworks in their representative pay arranges. One of the pay frameworks that are utilized by associations involves the reconciliation of wages and pay rates. The authority to make decisions among employees will project the business to have more flexible employees. Also, it exploits more shrewdly the knowledge of its workforces and enhances the swapping of information and ideas among the departments and the employees.

Habitually, these schemes ameliorate employees’ postures toward the customer and the business while boosting self-confidence. The body of information benefited can be employed for the job to be consummated. The gaining of that awareness will be a meaningful event for the employer and employee.

Many research studies have discovered that the chief efficient motivators of workers are non-fiscal in nature. Fiscal incentives are deficient motivators in part since prospects often surpass outcomes and inequality between salaried individuals may split instead of uniting the workforces. Recognized non-monetary optimistic motivators encourage team strength and include appreciation, progression and accountability (Armstrong, 2002).

Business managers, who identify the small wins of workforces support democratic atmospheres and treat workforces with respect and fairness and see to it that their workforces are extremely motivated. One organization’s administrator cogitated to line up with thirty powerful non-fiscal incentives that cost nothing or little to execute. The exceptionally useful motivating forces like time off from work and letters of praise enhanced an individual sense of pride and satisfaction (Kouhy et al., 2009, p. 147; Gitman & McDaniel, 2009).

Employee compensation encompasses instructing of the workers and rewarding them accordingly as per the good work done. The workers are motivated through various measures in order to make them enthusiastic to perform better. The motivational strategies enable the employees to perform a greater job continuously as they expect better things to come (Aswathappa, 2005). Employees in any business require somewhat to remain working.

Virtually at all times, the pay of the employee is adequate to enable them to continue working for an establishment. Nonetheless, working just for wages is not adequate for employees being inherent in an organization. If no stimulus is present in a worker, then that worker’s eminence for the job or all effort, in general, will worsen (Bryman & Bell, 2003). Different people require different motivation strategies as they have varied needs and specifications.

Ordinary motivational plans incorporate identity sort and delicate offer against the hard offer. Careful offer plans have consistent applications, acclaims, enthusiastic claims, and guidance. Then again “hard offer programs have dwarfing trade positions and weight” (Clark, Gregory, & Robert, 1993, p. 147). For instructive therapists, inspiration has a particular consideration as a result of the fundamental part it has an understudy information.

Regardless, the exact kind of inspiration that is inspected in the committed landscape of training differs subjectively with the most regular sorts of inspiration considered by analysts in different territories. In instruction, inspiration can have a few results on how understudies study and how they perform towards the subject issue. Giving workforce more decision-making power and accountability augments their spheres of control over the assignments for which they are held accountable and efficiently equips them to accomplish those jobs. At the outset, beliefs of disturbances developing from being held answerable for some action for which an employee does not have the sources to perform are weakened. As a consequence, the importance the employee compensation is given much consideration; the report is to investigate on how to improve the employee motivation to enhance organization’s performance.

Various past studies on the effect of pay on the worker and hierarchical efficiency have demonstrated that “pay adds to profitability picks up” (Anbu & Mavuso, 2012, p. 315). The commitment of the payment plans to the representative and hierarchical execution shifts, contingent upon whether the pay is individual or aggregate performance relates. Also, the researchers underline, “the profits to execution pay are bigger for ethnic minorities, especially in the instance of ladies” (Abu & Roslin, 2008, p. 60).

Traditional financial specialists were the most punctual authors to expound on representative pay more than a hundred years prior. They built up another idea of rousing the representatives and he termed it as experimental administration. Their precepts were given the idea that the representatives were financially urged and were permitted to work keeping in mind the end goal to acquire as many wages as they can., The principle belief was that financial increase was the boss inspiration that urged workers to perform well in their obligation (Anderson et al., 2007, p. 35).

Consequently, firms are considering alternative approaches to sustain their employee level of motivation. This plan has led to the adoption of payment systems in their employee compensation schemes. However, a conclusive theory or approach to human resource management has not been established to guarantee better employee performance. One of the payment systems that are commonly used by organizations entails the integration of wages and salaries.

Many past studies have found assert that wage implies the price of labour (Annabelle, 2006, p. 858). The human asset approach in the remuneration of the representatives incorporates the precept of necessities and inspiration. The incorporation of wages and salaries in employee compensation processes has led to the integration of diverse wage management practices. One of the most notable methods entails the increase in wage levels. Firms are linking pay to performance to remain competitive through improved employee productivity (Finney, 2008). However, in the course of designing the pay-for-performance schemes, it is imperative for organizations take into account the relevant factors that affect performance.

Along these lines, it has turned into an inescapable errand from the administration for a work climate that makes full utilization of the HR accessible. Abraham Maslow added to the Maslow’s chain of command of requirements and proposed that individuals have goals and needs that influence their conduct. The needs are ordered by significance and the individual advances to the following level of necessities when he or she accomplishes the lower needs.

The higher the order of obligations, the healthier a man gets to be. The five needs are physiological needs, security needs, love, self- regard needs, and self- completion needs. The second element of utilizing pay is to help the workforces with defining the inherent inspiration, which additionally contains acknowledgment, achievement, headway or development, and individual enthusiasm for the employment. To show signs of improved results, both strategies should be executed all the while to inspire the owrkforce. The first step is to give them a chance to feel satisfied in the workplace then lead them to accomplish the obligation. Therefore, they can propel in the work and perform better (Ferch & Spears, 2011).

The classical scholars’ idea of accomplishment and inspiration is another hypothesis that has an incredible effect on the administration with inspiration issues. It is likewise identified with the cleanliness inspiration theory. It is watched that in people with larger amounts of achievements, inspiration is by all accounts more vested on their employments. They have a tendency to set high and realistic objectives and need input on how they performed in the occupation instead of how individuals consider them. Further, they are more intrigued on the personal achievements instead of distinctions.

Notwithstanding, high accomplishment propelled individuals may not make a viable manager. Also, the previous researchers found that “the need for achievements can be told and the classical scholars additionally had set forth some preparation programs for this” (Fields, 2010, p. 14).

The established financial experts’ exploratory administration hypothesis was supplanted by the human relations approach in the late 1930s. A blend of worker compensations have been utilized by businesses as their drives to hold delighted workforce. Low morale among the employees is a sign of an organizational disease that signifies a lack of motivation and demands a high attentive treatment and cure. Hence, for any business organization to accomplish its objectives and goals, high-spirited employees are the need of the hour. Employee remunerations have become an ingredient fact to make them give their best (Abdullah et al., 2012, p. 136).

The hallucination of significance and inclusion were foreseen to satisfy the representative’s social necessities. For example, a chief may allow a representative gathering to take part in settling on a business choice regardless of the way that he had beforehand chosen what the choice would be. Significant signal of allowing investment was foreseen to fortify encouragement, regardless of the fact that no genuine interest occurred (Abbas & Asghar, 2010, p. 32).

Study site

The study site section covers the King Hamad University Hospital and further goes on into extensive research.

The health industry in Bahrain

Bahrain is well known for its big hospitals. The health industry in Bahrain provides an excellent service to all the customers in line with its commitment to serving everyone equally despite the race, gender or nationality. The hospitals in Bahrain are some of the best in the world and attract high-quality employees. The employees have a favourable working environment and are offered competitive remunerations based on their performance. Motivation is the key role related to work performance.

Motivation of employees in the health industry in Bahrain

The King Hamad University Hospital offers short-run incentives to the employees mainly to encourage them to give out the maximum output. These short–run incentives will assist the hospitals to attain their business goals and also offer the due recognition to an employee if they deserve it. The hospital offers bonus schemes to its employees, which are designed to extract the maximum levels of performance from them. The base pay of an employee in the hospital has been designed to mirror the employee’s role, performance and overall commitment to the entire company. Every year, the base pay of each and every employee of the hospital is reviewed so that it remains competitive.

For those employees who have been found extraordinarily skilled and have given a great performance, the hospital offers them long-term incentives. The long-term incentives are designed mainly to provide them significant objectives to aim for, with greater monetary rewards to cheer them to remain with the company and to accomplish their goals.

The hospital has two schemes of long-term incentives. The shares from the hospital’s performance cash plan is one scheme. The hospital’s performance share plan which is designed on actual share is the other scheme. Also, the hospital offers a variety of other fringe benefits like holiday schemes where every employee gets a minimum of 23 leave days every year with bank holidays on a priority basis. The rationale for the study is to indicate how the employee motivation can be related to an individual staff’s working performance. It is an opportunity to determine payment as a particular application in the health industry.

The philosophy of the report will be best fitted with realism. The research is going to find out number employees’ feedbacks of the current payroll associated with their working performance, which is not a tradition of the natural scientific research; positivism is not adopted in this case. It will also not be a human mind’s study as the research topic focuses alone on employee motivation with some participants. Thus, a philosophy of realism should be adopted in this research. The research is indicating the past theories with new research and analysis to add-on to the previous theory; therefore, a combined research method was adopted in this case.

A case study approach will be the best strategy in this instance because the research will only be suited into the Human Resources Department within the King Hamad University Hospital. The duration of the research will be a cross-sectional research base on the limitation of time. The research will not be following the trends over time or further determining the contrast of currency and consumption of the society.

Secondly, the objective of the study can be identified for more studies in similar areas. For data collections, several works of literature will be reviewed as if the topic is related to payment for employees is one of the factors that were affecting working performance and motivation. Furthermore, literature such as the comparison of the salary between the current human resource servers the King Hamad University Hospital will be reviewed as secondary research. For primary research, questionnaires will be used in this study. A survey will be set as a semi-structured style with open-end and close-end sections.

Research Methodology

Introduction

The methodology is the process of instructing the ways to do the research. It is, therefore, convenient for conducting the research and for analysing the research questions. The process of methodology insists that much care should be given to the kinds and nature of procedures to be adhered to in accomplishing a particular set of procedures or an objective (Blanchard & Cathy, 2002). The purpose of this research proposal is to create a room for further research that will assess the relationship between the employees’ pay and their level of performance. Consequently, the research study is exploratory. Exploratory research studies provide researchers an opportunity to assess areas that have not been extensively examined (Saunders, Thornhill, & Lewis, 2009).

Therefore, engaging in exploratory studies contributes to the development of additional knowledge on the issue or phenomenon under investigation. This goal will be achieved by testing the stipulated hypotheses. A comprehensive research methodology will be integrated to undertake the research study. This part includes the research design, the sample and the methods that were used in gathering information. It also contains the data analysis methods, validity and reliability of data and the limitation of the study.

Research Design

There are three types of research design: exploratory research, descriptive research and causal research (Blanchard & Cathy, 2002). Exploratory research mainly explores the nature of the problem to draw inferences. In this scenario, the researcher is in an excellent position to understand the problem under investigation. The flow of exploratory research involves identifying the problem and seeking to find the appropriate solutions and new ideas. Exploratory research is mostly applicable in circumstances where the structure of the research problem is not definite. The interview is a good example of the methods that will be used to gather information in this kind of research.

On the other hand, descriptive research is mostly applicable in circumstances where the structure of the research problem is explicit. This type of analysis is used when the researcher expects to distinguish the various observed facts in a sample or a population. Also, descriptive analysis is commonly employed by the researcher when the researcher has a prior understanding of the problem under investigation. Causal research is the kind of analysis whereby there is a clear structure of the research problem. In this case, the researcher is interested to explore on the cause-effect relationship. The causes are identified, analysed and the extent of the effects is reviewed (Blanchard & Cathy, 2002).

The positivist view shows that social worlds exist externally, and its properties are supposed to be measured objectively, rather than being inferred subjectively through feelings, intuition, or reflection. The fundamental beliefs of positivist view are that the observer is independent, and science is free of value. The researchers should always concentrate on facts, look for causality and fundamental laws, reduce the phenomenon to the simplest elements, and form hypotheses and test them. Moreover, the research will have an opportunity to collect data from the natural setting, hence improving the relevance of the research study. In the course of implementing the qualitative research design, the study will take into account the grounded theory.

Strang (2015) found out that “the positivism approach entails the discoveries from facts that are systematically obtained from the social research with the objective of developing a theory” (p. 449). Subsequently, incorporation of the positivist theory in the qualitative research design will enable the research to elucidate the issue under investigation. For example, the research study will contribute to further understanding of the importance of adopting a multi-dimensional approach in formulating the employee compensation policies. Conversely, the quantitative research design will aid in improving the effectiveness with which the research data are analysed and interpreted by the target research audience such as organizations’ human resource managers.

Case Study Approach

A case study is an approach to methodology that is applied when a comprehensive research or investigation is required. The case study is widely used in sociological studies, but of late it is commonly employed in research institutions. The case study approach has procedures to be followed; hence, the researcher is required to stick to the guiding rules and principles so as to produce the best results. Through a case study approach, the researcher has access to a broad range of data sources; as a consequence of this, case study results are always very comprehensive and in-depth.

The case study research does not entail sampling; hence it is beneficial to select the cases in a relevant manner to maximize on what should be learnt. Through a case study approach, relevant issues that form the basis of the study are thoroughly exploited. Also, questions that appear to be more complex are brought to light through the use of case study as a research approach. There are necessary steps to be followed when structuring a case study approach. The research questions should be clearly stated and defined. The researcher should choose the examples and the data collection and analysis techniques and arrange to gather data. Finally, the examiner should process and analyse the collected data and make a report concerning the analysed data.

Population and Sampling

There are two popularly used procedures for sampling. The sampling procedures include prospect sampling and non-prospect sampling. In a probability sampling procedure, the samples are representative of the population because all the entries have a chance of being selected. On the other hand, items in the non-probability sampling do not have an equal opportunity. In this scenario, all the elements in the population do not have equal chances of being selected.

The data for the study was collected from the employees of the organization under study. The workers were used because their profiles fit the context of this study. Therefore, the employees were an excellent choice because many of them have had the hospital experience. Since all the employees could not be accessible, a non-probability sampling procedure was employed in this study.

A pilot test was conducted to ensure that the questionnaires were reliable and valid. After the pre-test, the survey was edited by removing and changing some words. A pre-test was done again to ten additional respondents just to be sure that the survey was now very reliable and very valid. The study targeted employees who work with King Hamad University Hospital as the study population.

Because King Hamad University Hospital is a big entity, the research intended to evaluate the application of pay on employee performance. The choice of King Hamad University Hospital has arisen from the fact that it has integrated high pay as one of its employee motivation strategies. Conducting a study on the entire population is not manageable due to the high cost and the amount of time that has to be spent. Consequently, the research study will take into account the sampling technique. To make the study manageable scholars found that “the research will integrate the simple random sampling technique in constructing the research sample” (Scott, 2011, p. 90).

This technique will ensure that bias in conducting the study is eliminated. A sample of 169 respondents who will be selected from King Hamad University Hospital will be developed. The study will take into account both males and females in constructing the research sample. The study assumes that the selected research sample will be representative of the workforce perception of the relationship between pay and performance. The choice of these regions has arisen to understand the impact of social and cultural diversity on the employee perception and hence performance.

Data Collection and Instrumentation

In any research that is conducted, there are basic stages that are involved in regards to the shaping of the study. These steps include: understanding the research problem, the conceptual framework of the research, data collection, data analysis and interpretations, and drawing inferences and making recommendations. This study adopted the quantitative approach of methodology. The quantitative research method is very instrumental in harnessing mathematical models that are enshrined to natural facts. This type of research can be measured, and the researcher can construct a conceptual framework using the existing theories.

The adoption of primary sources played a fundamental role in improving the relevance of the research findings. The interviewing technique was integrated to collect data from the field. Consequently, a set of questionnaires was developed. The questionnaires acted as a guide for conducting the interview. The questionnaires were mainly composed of open-ended questionnaires to provide the respondents an opportunity to answer the required issues based on their opinion. The questionnaires were administered to the respondents directly through online media. Thus, the data collection method entailed an online survey. Adopting this method of administration is informed to minimise the cost of the study because respondents are geographically dispersed.

Data Analysis and Presentation

The collected data will be analysed quantitatively. This goal will be achieved by incorporating quantitative data analysis tools such as tabulation, use of graphs, percentages, and charts. Because the research study has integrated the qualitative research design, the data analysis and presentation method will entail the adoption of the textual presentation technique. This method will be implemented by using statements that comprise numerals.

One of the textual presentation tools that will be adopted in analysing the research data entails the Likert scale. By using this tool, the research will be in a position to evaluate the qualitative data using point scales such as the 5-point Likert scale. In addition to the above technique, the research will integrate the Microsoft Excel data analysis method. The adoption of this technology will play a fundamental role in improving the effectiveness and efficiency with which the collected data will be analysed using tables, charts, and graphs. Moreover, incorporation of the Microsoft technique will play a fundamental role in improving the ease with which the research data will be interpreted.

Limitations of the study

There have been a considerable measure of concerns on extra-budgetary costs of gathering the information. In addition, there were issues about whether the accumulated information is truly genuine or not and whether there may be an unequivocal conclusion when translating and breaking down the information. What’s more, a few representatives were hesitant to offer some data that was private and perilous in the hands of their rivals. This is an extraordinary test in the examination as the specialist needed to take more time to collect sufficient data.

Findings, Data Analysis and Interpretation

Introduction

This section covers the analysis of the data, presentation and interpretation. The results were analysed using SPPS, ANOVA, regression and correlation analysis.

Characteristics of the sample

To understand the demographic information about the participants, the distribution of gender, age, education level, income, and period employed in the King Hamad University Hospital are summarized in the following sections.

Gender

Table 4.1 Gender distribution
Gender N=169
Female 78 (46.2 %)
Male 91(53.8 %)
Total 169 (100%)

Gender percentages
Figure 4.1 Gender percentages.

The distribution of gender is summarized in Table 4.1 and Figure 4.1, according to the results; there are 78 females and 91 males, composed 46.2% and 53.8% of the sample respectively.

Age

Table 4.2 Age distribution
Age N=169 (%)
18-25 2(1.2%)
26-35 81(47.9%)
36-45 57(33.7%)
46-55 21(12.4%)
Above 55 8(4.7%)
Total 169(100%)

Age percentages.
Figure 4.2 Age percentages.

The distribution of age is summarized in Table 4.2 and Figure 4.2 above. According to the results, there are 47.9% of the participants are aged between 26 and 35. This is the largest proportion. 33.7% of the participants are aged between 36 and 45. 12.4% of the participants are aged between 46 and 55. Finally, participants aged above 55 or between 18 and 25 composed 4.7% and 1.2% of the sample respectively.

Education level

Table 4.3 Education distribution.
Education N=169 (%)
High school or below 4(2.4%)
Diploma 20(11.8%)
Bachelor degree 62(36.7%)
Postgraduate degree or above 83(49.1%)
Total 169(100%)

Education percentages.
Figure 4.3 Education percentages.

Approximately half of the participants (49.1%) have a postgraduate degree or above. This is the largest proportion. 36.7% of the respondents have a bachelor degree. 11.8% of the participants have a diploma. There are only 2.5% of the participants have a high school or below degree.

Income

Table 4.4 Income distribution
Income N=169 (%)
<1000 18(10.7%)
1000-2000 3(1.8%)
2001-3000 28(16.6%)
3001-5000 53(31.4%)
>5000 67(39.6%)
Total 169(100%)

Income Percentages.
Figure 4.4 Income Percentages.

39.6% of the participants indicated that they have income above 5000. This is the largest proportion. 31.4% of the sample have income between 3001 and 5000. 16.6% of the sample have income between 2001 and 3000, composed. There are 10.7% of the participants have income below 1000 and 1.8% of the participants have income between 1000 and 2000.

Period employed in the King Hamad University Hospital

Table 4.5 Period used in the hospital
Times N=169 (%)
Less than three years 35(20.7%)
4-7 times 38(22.5%)
7-10 times 41(24.3%)
More than ten years 55(32.5%)
Total 169(100%)

Period employed in the hospital.
Figure 4.5 Period employed in the hospital.

Table 4.5 and Figure 4.5 above summarized the period the participants have been working in the King Hamad University Hospital. According to the results, 32.5% of the participants have worked for more than ten years. This is the largest proportion. 24.3% of the sample have worked for between 7 and 10 years. 22.5% of the sample have worked for between 4 and 7 years. Also, there are 35(20.7% of the sample) members who have worked at King Hamad University Hospital for less than three years.

Reliability Analysis

Reliability analysis is often used to evaluate whether the multiple instrument items are measuring the same variable or concept (Blanchard & Cathy, 2002). In SPSS, the Cronbach’s Alpha value is typically used to measure the reliability of the various variables. The minimum requirement for the value of Cronbach’s Alpha is 0.7 to ensure that the items are internally consistent and reliable. In the exploratory study, the Cronbach’s Alpha value of 0.6 can also be accepted. In this study, the various measurement items are adopted from previous studies; thus, the minimum value is set at 0.7. The CITC(Corrected-Item Total Correlation) is also included to evaluate the reliability of the individual item.

If the CICT is below 0.5, then the item cannot reliably measure the corresponding variable and should be excluded from further analysis (Blanchard & Cathy, 2002). The Cronbach’s Alpha if item deleted indicate whether the Cronbach’s Alpha value is decreased or increased after excluded this item. Thus, if this value is above the Cronbach’s Alpha value for the variable, the question should then be excluded from further analysis. Table 4.6 summarizes the results.

Table 4.6 Reliability Analysis for Variables.

Variables Item CITC Cronbach’s Alpha if Item Deleted Cronbach’s Alpha
King Hamad University Hospital Knowledge V1 0.646 0.822 0.836
V2 0.725 0.747
V3 0.725 0.746
Environmental Concern V4 0.611 0.781 0.817
V5 0.738 0.719
V6 0.725 0.727
V7 0.486 0.806
Fair Wages V8 0.577 0.698 0.761
V9 0.577 0.696
V10 0.623 0.644
Service Quality V11 0.581 0.634 0.739
V12 0.620 0.585
V13 0.594 0.733
Hospital Facilities V14 0.770 0.872 0.898
V15 0.780 0.868
V16 0.631 0.801
V17 0.777 0.871
V18 0.800 0.864
Subjective Norms V19 0.709 0.751 0.833
V20 0.675 0.786
V21 0.694 0.767
Satisfaction V22 0.723 0.750 0.837
V23 0.691 0.782
V24 0.684 0.789

The Cronbach’s alpha value of the King Hamad University Hospital knowledge is 0.836. The Cronbach’s alpha value of the environmental concern is 0.817. The Cronbach’s alpha value of fair wages is 0.761. The Cronbach’s alpha value of the service quality is 0.739. The Cronbach’s alpha value of the hospital facilities is 0.898. The Cronbach’s alpha value of the subjective norms is 0.833. The Cronbach’s alpha value of satisfaction is 0.837. These values are all above the minimum requirement of 0.7. These results demonstrate that these items are internally consistent and reliable, and can be used for further analysis.

Frequency analysis

King Hamad University Hospital knowledge frequency analysis

Table 4.7 The King Hamad University Hospital knowledge frequency analysis.

Question Response N=169 (%) Mean scores
Compared to the average person, I am familiar with the hospital’s human resources policies 1. Strongly Disagree 3 (1.8%) 3.8047
2.Disagree 6 (3.6%)
3.Neutral 42 (24.9%)
4.Agree 88 (52.1%)
5.Strongly Agree 30 (17.8%)
Compared to my friends, I am familiar with the hospital’s compensation programs 1.Strongly Disagree 1 (0.6%) 3.6213
2.Disagree 13 (7.7%)
3.Neutral 56 (33.1%)
4.Agree 78 (46.2%)
5.Strongly Agree 21 (12.4%)
Compared to my colleagues, I am familiar with the hospital’s employees’ benefits. 1.Strongly Disagree 2 (1.2%) 3.6568
2.Disagree 12 (7.1%)
3.Neutral 53 (31.4%)
4.Agree 77 (45.6%)
5.Strongly Agree 25 (14.8%)
Total 169 (100%) 3.69
Distribution of King Hamad University Hospital knowledge score.
Figure 4.7 Distribution of King Hamad University Hospital knowledge score.

As can be seen from Table 4.7 and Figure 4.7, more than half of the participants are familiar with the King Hamad University Hospital experience. 52.1% of the participants indicate that “Compared to the average person, I am familiar with the hospital’s human resources policies”. 46.2% of the participants indicate that “Compared to my friends, I am familiar with hospital’s compensation programs”.

From the total score of these three items measuring King Hamad University Hospital knowledge, a large group of participants have a rating of 11 or 12. To gain a clearer picture of the King Hamad University Hospital experience, the items measuring King Hamad University Hospital knowledge were aggregated. The aggregated mean value was 3.69, suggesting that participants have medium level knowledge of the King Hamad University Hospital.

Environmental concern frequency analysis

Table 4.8 Environmental concern frequency analysis.

Question Response N=169 (%) Mean scores
I am extremely anxious about the state of the world’s environment and what it will mean for my future 1.Strongly Disagree 1 (0.6%) 3.8284
2.Disagree 9 (5.3%)
3.Neutral 41 (24.3%)
4.Agree 85 (50.3%)
5.Strongly Agree 33 (19.5%)
Mankind is severely abusing the environment 1.Strongly Disagree 3 (1.8%) 3.6095
2.Disagree 12 (7.1%)
3.Neutral 55 (32.5%)
4.Agree 77 (45.6%)
5.Strongly Agree 22 (13%)
A human must live in harmony with nature to survive 1.Strongly Disagree 2 (1.2%) 3.6805
2.Disagree 10 (5.9%)
3.Neutral 54 (32%)
4.Agree 77 (45.6%)
5.Strongly Agree 26 (15.4%)
I think environmental problems are very imperative 1.Strongly Disagree 3 (1.8%) 3.9053
2.Disagree 4 (2.4%)
3.Neutral 37 (21.9%)
4.Agree 87 (51.5%)
5.Strongly Agree 38 (22.5%)
Total 169 (100%) 3.76
Environmental concern frequency analyses.
Figure 4.8 Environmental concern frequency analyses.

Table 4.8 shows the overall responses to the environmental concern among participants. According to the results, the mean value of all measurement items was between 3 and 4. Thus, the participants’ attitude, concern was at a medium level. By analysing the frequency, it can be seen that more than half of the participants have expressed their concern regarding the environmental problem.

In order to gain more detailed picture of the level of environmental concern, the aggregate mean score was classified into three levels. The first leve is low (below 2). The second level is medium (2-4). The third level is high (4-5). The total mean score was 3.76, suggesting a medium level of environmental concern. The overall scores of the items measuring environmental concern were summarized, and it is found that the range was 16, with scores ranging from 5 to 20. The majority of the participants have an overall rating between 14 and 16.

Fair wages frequency analysis

Table 4.9 Fair wages frequency analysis.

Question Response N=169 (%) Mean scores
This King Hamad University Hospital offers a good service that is worth its wages 1.Strongly Disagree 1 (0.6%) 3.8876
2.Disagree 13 (7.7%)
3.Neutral 34 (20.1%)
4.Agree 77 (45.6%)
5.Strongly Agree 44 (26%)
The wages are acceptable 1.Strongly Disagree 4 (2.4%) 3.9231
2.Disagree 4 (2.4%)
3.Neutral 30 (17.8%)
4.Agree 94 (55.6%)
5.Strongly Agree 37 (21.9%)
Compared to wages of other hospitals, the King Hamad University Hospital pays fairly 1.Strongly Disagree 2 (1.2%) 4.1361
2.Disagree 5 (3%)
3.Neutral 23 (13.6%)
4.Agree 77 (45.6%)
5.Strongly Agree 62 (36.7%)
Total 169 (100%) 3.98
Distribution of fair wages score.
Figure 4.9 Distribution of fair wages score.

Table 4.9 summarized the frequency analysis for items measuring fair wages. The majority of the participants agree or strongly agree that “This King Hamad University Hospital offers a good service that is worth its wages”. The respondents also agree or strongly agree that “The wages are acceptable”. Finally, they agreed or strongly agreed that “Compared to the salaries of other hospitals, the King Hamad University Hospital pays fairly”.

The total mean value of fair wages is 3.98. This is nearer to the value ‘four’ suggesting that participants have a positive attitude towards the fair salaries of the King Hamad University Hospital. Figure 4.9 summarized the score of the items measuring fair wages. As can be seen from the results, the majority of the score ranged between 10 and 15, indicating a relatively higher level positive attitude towards fair wages.

Service quality frequency analysis

Table 4.10 Service quality frequency analysis.

Question Response N=169 (%) Mean scores
The staffs are reliable and helpful 1.Strongly Disagree 1 (0.6%) 3.6982
2.Disagree 6 (3.6%)
3.Neutral 67 (39.6%)
4.Agree 64 (37.9%)
5.Strongly Agree 31 (18.3%)
The staffs are professional 1.Strongly Disagree 3 (1.8%) 4.0533
2.Disagree 4 (2.4%)
3.Neutral 25 (14.8%)
4.Agree 86 (50.9%)
5.Strongly Agree 51 (30.2%)
The staff respond to my inquiries quickly 1.Strongly Disagree 3 (1.8%) 3.7929
2.Disagree 5 (3%)
3.Neutral 45 (26.6%)
4.Agree 87 (51.5%)
5.Strongly Agree 29 (17.2%)
Total 169 (100%) 3.85
Distribution of service quality score.
Figure 4.10. Distribution of service quality score.

Table 4.10 summarized the frequency analysis for items measuring service quality. More than half of the participants agree or strongly agree that “The staffs are reliable and helpful”. At least 50% agree or strongly agree that “The staffs are professional”. Lastly more than 50% agree or strongly agree that “The staff respond to my inquiries quickly”. The aggregated mean value of fair wages is 3.85, suggesting that service quality is at medium to high level. Figure 4.10 summarized the score of the items measuring service quality. As can be seen from the results, the majority of the score ranged between 10 and 13, which also indicate a medium to high-level service quality perception.

Hospital facilities frequency analysis

Table 4.11 Hospital facilities frequency analysis.

Question Response N=169 (%) Mean scores
The hospital temperature is comfortable 1.Strongly Disagree 0 (0%) 3.7751
2.Disagree 7 (4.1%)
3.Neutral 52 (30.8%)
4.Agree 82 (48.5%)
5.Strongly Agree 28 (16.6%)
The hospital environment is comfortable 1.Strongly Disagree 4 (2.4%) 3.8284
2.Disagree 9 (5.3%)
3.Neutral 32 (18.9%)
4.Agree 91 (53.8%)
5.Strongly Agree 33 (19.5%)
The hospital environment is clean 1.Strongly Disagree 5 (3%) 3.7692
2.Disagree 4 (2.4%)
3.Neutral 43 (25.4%)
4.Agree 90 (53.3%)
5.Strongly Agree 27 (16%)
The hospital lighting is appropriate 1.Strongly Disagree 0 (0%) 3.7692
2.Disagree 7 (4.1%)
3.Neutral 52 (30.8%)
4.Agree 83 (49.1%)
5.Strongly Agree 27 (16%)
The decoration of the hospital is suitable 1.Strongly Disagree 5 (3%) 3.8107
2.Disagree 10 (5.9%)
3.Neutral 31 (18.3%)
4.Agree 89 (52.7%)
5.Strongly Agree 34 (20.1%)
Total 169 (100%) 3.79
Distribution of hospital facility score.
Figure 4.11 Distribution of hospital facility score.

Table 4.11 summarized the frequency analysis for items measuring hospital services. More than half of the participants agree or strongly agree that “The hospital temperature is comfortable”. More than 50% agree or strongly agree that “The hospital environment is comfortable”. More than half of the respondents agree or strongly agree that “The hospital environment is clean”. In the same way, atleast 50% of the participants agree or strongly agree that “The hospital lighting is appropriate”.

Lastly, more than half of the members agree or strongly agree that “The decoration of the hospital is suitable”. The aggregated mean value of fair wages is 3.79, suggesting that hospital facilities are at medium to high level. Figure 4.11 summarized the score of the items measuring hospital facility. As can be seen from the results, the majority of the score ranged between 18 and 22, which also indicate a medium to high-level hospital facility perception.

Subjective norms frequency analysis

Table 4.12 Subjective norms frequency analysis.

Question Response N=169 (%) Mean scores
Most people who are important to me think I should stay at the King Hamad University Hospital 1.Strongly Disagree 1 (0.6%) 3.4320
2.Disagree 19 (11.2%)
3.Neutral 74 (43.8%)
4.Agree 56 (33.1%)
5.Strongly Agree 19 (11.2%)
Most people who are important to me would want me to stay at the King Hamad University Hospital 1.Strongly Disagree 2 (1.2%) 3.5562
2.Disagree 13 (7.7%)
3.Neutral 61 (36.1%)
4.Agree 75 (44.4%)
5.Strongly Agree 18 (10.7%)
People whose opinions I value would prefer that I stay at the King Hamad University Hospital 1.Strongly Disagree 1 (0.6%) 3.6036
2.Disagree 14 (8.3%)
3.Neutral 56 (33.1%)
4.Agree 78 (46.2%)
5.Strongly Agree 20 (11.8%)
Total 169 (100%) 3.53
Distribution of subjective norms score.
Figure 4.12 Distribution of subjective norms score.

Table 4.12 summarized the frequency analysis for items measuring subjective criteria. Less than half of the participants agree or strongly agree that “Most people who are important to me think I should stay at the King Hamad University Hospital”. At most 50% of the members agreed or strongly agreed that “Most people who are important to me would want me to stay at the King Hamad University Hospital”.

Not more than 50% of the respondents agreed or strongly agreed that “People whose opinions I value would prefer that I stay at the King Hamad University Hospital”. The aggregated mean value of fair wages is 3.53, suggesting that the subjective norms are at medium level. Figure 4.12 summarized the score of the items measuring subjective criteria. As can be seen from the results, the majority of the score ranged between 10 and 11, which also indicate medium level subjective criteria.

Satisfaction frequency analysis

Table 4.13 Satisfaction frequency analysis.

Question Response N=169 (%) Mean scores
Overall, I am satisfied with the experience in this King Hamad University Hospital 1.Strongly Disagree 2 (1.2%) 3.3964
2.Disagree 21 (12.4%)
3.Neutral 71 (42%)
4.Agree 58 (34.3%)
5.Strongly Agree 17 (10.1%)
I do not regret staying at King Hamad University Hospital 1.Strongly Disagree 2 (1.2%) 3.5562
2.Disagree 16 (9.5%)
3.Neutral 60 (35.5%)
4.Agree 68 (40.2%)
5.Strongly Agree 23 (13.6%)
I am glad to stay at the King Hamad University Hospital 1.Strongly Disagree 2 (1.2%) 3.6036
2.Disagree 14 (8.3%)
3.Neutral 54 (32%)
4.Agree 78 (46.2%)
5.Strongly Agree 21 (12.4%)
Total 169 (100%) 3.52
Distribution of satisfaction score.
Figure 4.13 Distribution of satisfaction score.

Table 4.13 summarized the frequency analysis for items measuring satisfaction. Nearly half of the participants agree or strongly agree that “Overall, I am satisfied with experience in this King Hamad University Hospital”. Almost 50% of the respondents agreed or strongly agreed that “I am glad to stay at the King Hamad University Hospital”. The aggregated mean value of fair wages is 3.52, suggesting that the subjective norms are at medium level. Figure 4.13 summarized the score of the items measuring satisfaction. As can be seen from the results, the majority of the score ranged between 10 and 11, which also indicate a medium level satisfaction.

Correlation analysis

Correlation between King Hamad University Hospital knowledge and Satisfaction

A scatter plot was used to check the relationship between King Hamad University Hospital knowledge and satisfaction. The scatter plot was first created to ensure that there was not a violation of the assumptions of normality, linearity and homoscedasticity among the data. As seen in Figure 14 below, there is a high, positive correlation between the variables of King Hamad University Hospital knowledge and satisfaction and the data is normally distributed.

Scatterplot of King Hamad University Hospital knowledge/employee satisfaction relationship.
Figure 4.14: Scatterplot of King Hamad University Hospital knowledge/employee satisfaction relationship.

After inspecting a positive correlation between King Hamad University Hospital knowledge and satisfaction, a Pearson product-moment correlation coefficient was carried out to analyse the relationship between King Hamad University Hospital knowledge and customer satisfaction. The results are shown in Table 4.14 above. The correlation value below 0.3 indicates low-level correlation; the correlation value between 0.3 and 0.6 indicates medium level relationship while the correlation value above 0.6 indicates higher level correlation.

As can be seen in Table 4.14, there was a medium positive correlation between King Hamad University Hospital knowledge and satisfaction. The correlation value of 0.373 was significant at 0.01 levels. This implied that higher levels of King Hamad University Hospital knowledge are associated with higher levels of customer satisfaction.

Table 4.14 Correlation between King Hamad University Hospital knowledge and Satisfaction.

King Hamad University Hospital Knowledge Satisfaction
King Hamad University Hospital Knowledge Pearson Correlation 1 0.373**
Sig. (2-tailed) 0.000
N 169 169
Satisfaction Pearson Correlation 0.373** 1
Sig. (2-tailed) 0.000
N 169 169
**. Correlation is significant at the 0.01 level (2-tailed).

Correlation between Environmental Concern and Satisfaction

To check the relationship between King Hamad University Hospital knowledge and satisfaction, a scatter plot was created. As seen in Figure 4.15 below, there is a high, positive relationship between the variables of environmental concern and satisfaction and the data is normally distributed.

Scatterplot of environmental concern/employee satisfaction relationship.
Figure 15: Scatterplot of environmental concern/employee satisfaction relationship.

After inspecting a positive correlation between environmental concern and satisfaction, a Pearson product-moment correlation coefficient was carried out to analyse the relationship between environmental concern and customer satisfaction. The results are shown in Table 15 below. As can be seen in Table 15, there was a medium positive correlation between environmental concern and satisfaction. The correlation value of 0.313 was significant at 0.01 level. This implied that higher levels of environmental concern is associated with higher levels of customer satisfaction.

Table 4.15 Correlation between Environmental Concern and Satisfaction.

Satisfaction Environmental Concern
Satisfaction Pearson Correlation 1 0.413**
Sig. (2-tailed) 0.000
N 169 169
Environmental Concern Pearson Correlation 0.313** 1
Sig. (2-tailed) 0.000
N 169 169
**. Correlation is significant at the 0.01 level (2-tailed).

Correlation between Fair wages and Satisfaction

To check the relationship between a fair wage and satisfaction, a scatter plot was created. As seen in Figure 16 below, there is a high, positive relationship between the variables of fair salaries and satisfaction and the data is normally distributed.

Scatterplot of fair wages/employee satisfaction relationship.
Figure 4.16 Scatterplot of fair wages/employee satisfaction relationship.

After inspecting a positive correlation between a fair wage and satisfaction, a Pearson product-moment correlation coefficient was carried out to analyse the relationship between fair wages and customer satisfaction. The results are shown in Table 16 below. As can be seen from this table, there was a medium positive correlation between a fair wages and satisfaction. The correlation value of 0.412 was significant at 0.01 level. This implied that higher levels of fair wages is associated with higher levels of customer satisfaction.

Table 4.16 Correlation between Fair wages and Satisfaction.

Satisfaction Fair wages
Satisfaction Pearson Correlation 1 0.412**
Sig. (2-tailed) 0.000
N 169 169
Fair wages Pearson Correlation 0.412** 1
Sig. (2-tailed) 0.000
N 169 169
**. Correlation is significant at the 0.01 level (2-tailed).

Correlation between Service quality and Satisfaction

To check the relationship between service quality and satisfaction, a scatter plot was created. As seen in Figure 4.17 below, there is a high, positive relationship between the variables of service quality and satisfaction and the data is normally distributed.

Scatterplot of service quality/employee satisfaction relationship.
Figure 4.17: Scatterplot of service quality/employee satisfaction relationship.

After inspecting a positive correlation between service quality and satisfaction, a Pearson product-moment correlation coefficient was carried out to analyse the relationship between service quality and customer satisfaction. The results are shown in Table 4.17 below. As can be seen from this table, there was a medium positive correlation between service quality and satisfaction. The correlation value of 0.409 was significant at 0.01 level. This implied that higher levels of service quality is associated with higher levels of customer satisfaction.

Table 4.17 Correlation between Service quality and Satisfaction.

Satisfaction Service Quality
Satisfaction Pearson Correlation 1 0.419**
Sig. (2-tailed) 0.000
N 169 169
Service Quality Pearson Correlation 0.409** 1
Sig. (2-tailed) 0.000
N 169 169
**. Correlation is significant at the 0.01 level (2-tailed).

Correlation between Hospital facilities and Satisfaction

To check the relationship between hospital facilities and satisfaction, a scatter plot was created. As seen in Figure 4.18 below, there is a high, positive relationship between the variables of hospital facilities and satisfaction and the data is normally distributed.

Scatterplot of hospital facilities/employee satisfaction relationship.
Figure 4.18 Scatterplot of hospital facilities/employee satisfaction relationship.

After inspecting a positive correlation between hospital services and satisfaction, a Pearson product-moment correlation coefficient was carried out to analyse the relationship between hospital facilities and customer satisfaction. The results are shown in Table 4.18 below. As can be seen from this table, there was a medium positive correlation between hospital facilities and satisfaction. The correlation value of 0.455 was significant at 0.01 level. This implied that higher levels of hospital facilities is associated with higher levels of customer satisfaction.

Table 18. Correlation between Hospital facilities and Satisfaction.

Satisfaction Hospital Facilities
Satisfaction Pearson Correlation 1 0.355**
Sig. (2-tailed) 0.000
N 169 169
Hospital Facilities Pearson Correlation 0.455** 1
Sig. (2-tailed) 0.000
N 169 169
**. Correlation is significant at the 0.01 level (2-tailed).

Correlation between Subjective norms and Satisfaction

To check the relationship between subjective standards and satisfaction, a scatter plot was created. As seen in Figure 4.19 below, there is a high, positive relationship between the variables of subjective standards and satisfaction and the data is normally distributed.

Scatterplot of subjective norms and employee satisfaction relationship.
Figure 4.19 Scatterplot of subjective norms and employee satisfaction relationship.

After inspecting a positive correlation between subjective standards and satisfaction, a Pearson product-moment correlation coefficient was carried out to analyse the relationship between subjective standards and customer satisfaction. The results are shown in Table 19 below. As can be seen from this table, there was a high positive correlation between subjective norms and satisfaction. The correlation value of 0.765 was significant at 0.01 level. This implied that higher levels of subjective criteria is associated with higher levels of customer satisfaction.

Table 4.19 Correlation between Subjective norms and Satisfaction.

Satisfaction Subjective Norms
Satisfaction Pearson Correlation 1 0.765**
Sig. (2-tailed) 0.000
N 169 169
Subjective Norms Pearson Correlation 0.765** 1
Sig. (2-tailed) 0.000
N 169 169
**. Correlation is significant at the 0.01 level (2-tailed).

Regression analysis

Regression analysis is a statistical process for estimating the relationships among variables (Blanchard & Cathy, 2002). More specifically, regression analysis is generally used to understand how the change of independent variables can affect the change of dependent variables (Blanchard & Cathy, 2002). The correlation analysis above indicated that there are relationships between subjective norms, hospital facilities, King Hamad University Hospital knowledge, fair wages, service quality, environmental concern and satisfaction. To find out how these variables influence customer satisfaction and which one has the biggest impact, the multiple linear regression is used.

Table 4.20 Model Summary.

Model R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson
dimension0 1 0.779a 0.538 0.536 0.19111 1.948
a. Predictors: (Constant), Subjective Norms, Hospital Facilities, King Hamad University Hospital Knowledge, Fair wages, Service Quality, Environmental Concern
b. Dependent Variable: Satisfaction

The Adjusted R Square is 0.536. This means that the independent can explain 53.6% of the variance of satisfaction.

Table 4.21 ANOVA.

Model Sum of Squares df Mean Square F Sig.
1 Regression 90.280 6 15.047 411.961 0.000a
Residual 5.917 162 0.037
Total 96.197 168
a. Predictors: (Constant), Subjective Norms, Hospital Facilities, King Hamad University Hospital Knowledge, Fair wages, Service Quality, Environmental Concern
b. Dependent Variable: Satisfaction

By summarizing the ANOVA table, it can be said that the independent variables can predict the dependent variable at a significance of 0.01, by considering F=411.961.

Table 4.22 Coefficients.

Unstandardized Coefficients Standardized Coefficients t Sig. Collinearity Statistics
B Std. Error Beta Tolerance VIF
(Constant) -0.289 0.101 -2.854 0.005
King Hamad University Hospital Knowledge 0.286 0.054 0.283 2.203 0.032 0.142 1.059
Environmental Concern 0.258 0.067 0.212 2.073 0.047 0.207 2.374
Fair wages 0.336 0.036 0.334 3.490 0.000 0.329 2.044
Service Quality 0.312 0.041 0.307 2.808 0.007 0.281 3.563
Hospital Facilities 0.426 0.033 0.424 5.774 0.000 0.390 2.564
Subjective Norms 0.478 0.022 0.437 6.732 0.000 0.827 1.209
a. Dependent Variable: Satisfaction

The regression results are summarized in Table 4.22 above. According to the results, there is no collinearity problem among the independent variables as the VIF values for all independent variables are less than 10, and the Tolerance value for all variables are above 0.1. It is found that subjective norms, hospital facilities, King Hamad University Hospital knowledge, fair wages, service quality, and environmental concern can significantly impact satisfaction, with significant values all less than 0.05.

Specifically, subjective norms have the biggest impact on satisfaction. It has a standardized coefficient value of 0.437. Hospital facilities come second with a standardized coefficient value of 0.424. Fair wages is the third with a value of 0.334. The environmental concern has the smallest impact on satisfaction, with a standardized coefficient value of 0.212.

Summary of results

According to the findings, employee remuneration is an essential element in accomplishing the company’s objectives like product quality and establishing a quality workplace. Other than financial compensation, there are other factors that also contribute to the success of the enterprise. These factor include employee achievements, self-actualization and recognition. The relationship of the employee with the supervisors and co-employees is another critical factor. The nature and the magnitude of work supervision influences the job interest of the employee. The chances for growth of the employee shall have to be taken into account for the success of any business.

Concerning the survey, about 91% of its employees voted for job satisfaction and productivity. Almost 71% voted for opportunity and growth development (Chi-square = 1.436). The employee presence rate (attendance) stood at 98 percent for the last six years and the turnover rate of the employees remained at just 1 percent. Employee remuneration proves to be the building block of excellent performance in the organization.

Payment enables the employees to set and achieve organizational targets on time and to meet the demands of the job. The hospital can be better placed when compensation is carried out in an excellent manner that offers job satisfaction and job protection for the employees. Thus, the employees will feel more secure when they work in a suitable environment that provides opportunities for potential growth.

Every organization has human resource guiding principles, and it is upon the managers to interpret these policies to the employees in the best way that they can comprehend. To achieve this, the relevant managers should undergo extra training to equip them with the required confidence and capabilities to carry out the task at hand. Also, it is the duty of the line managers to set up schemes for rewarding the employees appropriately and Implement the plan. These reward strategies change from time to time depending on the changing nature of the organization.

The effective performance evaluation system that has been adopted by the hospital has assisted the organization to recognize its low performers so that their defects might be set right through appropriate training and other initiatives. An organization’s performance appraisal process can be evaluated by periodic audits of the performance appraisal system that can be an efficient device for evaluating their appropriateness and effectiveness at the same time.

Its services have improved to achieve the world class status. The primary focus of the research was to explore the ways of appreciating and motivating employees to achieve employee satisfaction. The relevance of the remuneration is seen in the comfort that they derive from executing their jobs. Remuneration is postulated to have a greater impact on the performance and the productivity of the organization.

The King Hamad University Hospital makes much effort to attract potential employees and retain the existing employees to sustain the excellent track record that it has in terms of employee satisfaction and higher productivity. There are various ways and tactics that are used by the hospital to motivate its workers to achieve organizational success. The outstanding motivating ideas of the hospital include offering liberal remunerations to the employees and providing adequate fun and recreational facilities to the employees. Offering financial grants to the employees for their welfare is another motivating tactic.

The employees are liable to an annual minimum of 23 leave days and they can join and form trade unions to fight for their rights at the workplace. The personnel have a suitable working environment that fosters their. Because of the motivational factors that are provided by the hospital to its employees, the hospital has emerged to be a force to reckon in the health sector in Bahrain. 95% of the employees were greatly satisfied by the services provided by the Human Resource Department (Chi-square = 1.083; p = 0.517). The HR Department is so much impartial when it comes to hiring and firing the employees. The conditions for work are also excellent, and no employee has been prejudiced as a result of racial origin or gender related issues.

Another 97% of the employees agreed that the top management plays a significant role in terms of motivating the workers (Chi-square = 1.269; p = 0.342). They always engage the employees in setting the targets of the organization and also in setting the working conditions. 96% of the workers were exceedingly contented with the incentives that are offered by the top management of the hospital. Among the motivating factors provided by the hospital, 96% of the employees agreed that promotion and change of grades were the elements that motivated them the most.

Only 2 percent of the employees agreed that recognition was the most outstanding part of remuneration (Chi-square = 1.014; p = 0.218; when compared to a criterion Alpha level of 0.20). The research on the hospital also revealed that all the workers were involved in the company’s decision-making. They also agreed that remuneration plays a crucial role in terms of enhancing their performance.

Recognition can be termed as one of the vibrant instruments of motivation. Employees are not only concerned to know how they have accomplished their goals or their work, but also how their accomplishments are priced. It is to be observed that recognition requirements are tied up with the esteemed needs in Maslow’s power structure of requirements. Maslow has defined it as the need to have a firm, stable based self-esteem and to have the prestige. Monetary rewards, particularly, achievement bonuses, were given instantly after an accomplishment that is the clear indicators of recognition on to which tangible financial advantages are embedded.

To act in the organization’s interest and to perform well over time, the employee reward policy should be designed to coordinate the workforces with the organizational stratagem by offering incentives for accomplishing employees. Expectancy theory is concerned with the confidentiality of the employees that they should feel that their initiatives would impact the fiscal incentives they get from the employer.

If an employee decides whether to remain in the organization and accomplish the valuable benefits to the business, then they will always be influenced by the perception of equity theory. External investment is concerned with the scale to which an organization’s pay structure matches with the external labour market. The magnitude to which an organization discriminates the employee pay structure on the footing of its performance in analogue jobs is known as internal equity.

Employee performance recognition are performance-contingent incentives, which obviously are payoffs through job contingent incentives. Performance excellence is an element of recognition where salary is relying on job taxonomy and the incentives. In its quest to enhance the organizational effectiveness and performance, employee reward policy can be regarded as one of the pillars of management from company to company. This is probably one of the most intricate and underutilized tools for pushing company’s performance.

The intricacy and significance of associating incentive strategies to business objectives in a systematic style has been a consistent debate in the area of employee remuneration. The chief aim of the reward practice is to offer larger suppleness to reward, the gaining of competencies and wider skills, without the requirement of the workforces in each situation or case. On the other hand, the standard approach contains the salary compensation for accomplishing work goals or for demonstrating job-oriented capabilities or the combination of both. Thus, it has been observed that this monetary award practice can be resourceful for retaining and motivating the skillful workforce.

Conclusions and Recommendations

Introduction

This chapter presents the conclusion and the recommendations of the findings and the results in accordance with the objectives of this study.

Conclusion and Recommendations

The purpose of this study was to determine the effectiveness of employee pay on the performance of the employees. Specifically, this study sought to bring out clearly the ways in which the performance of the employees is affected given any level of remuneration. The centrality of employee input in an organization’s overall performance can only be ignored at the peril of an organization’s long-term survival.

The significance of employee performance in the contemporary business environment is determined by the worker’s contribution. While it is possible to acquire top-notch technologies to improve operational effectiveness and efficiency, it is relatively complex when dealing with the human resource.The findings of this research are in line with the earlier empirical studies and real case studies. Motivation has a particular thought as an aftereffect of the essential part it has in understudy data. Remuneration is a procedure concerning preferences made by individuals or subordinate organisms among substitute forms of deliberate activity.

There are various ways that an organization uses to motivate its employees. All the workers were involved in the company’s decision-making. Motivation is instrumental to achieving the organizational goals efficiently and promptly. Motivating the employees of an organization will result in enhanced employee’s productivity. Motivation reduces labour turnover and industrial unrest. Motivation fortifies the staff and the management to foster a productive culture in the business organization.

Low morale among the employees is a sign of an organizational disease that signifies a lack of motivation and demands a high attentive treatment and cure. Hence, for any business organization to accomplish its objectives and goals, high-spirited employees are the need of the hour. The mirage of importance and involvement were anticipated to please employee’s social requirements. In any case, the entrepreneurs ought to be mindful of such downsides. A portion of the issues associated with unmotivated representatives incorporates breaking down the spirit, less happiness, and far-reaching deterrence.

On the off chance that allowed to delay, these questions can decrease income, aggressiveness, and profitability, particularly for a little business. Despite the assertion that high pay promotes employee performance, employees in high paying job positions fear the risk of losing their job and wage premiums. It is true to affirm that this strategy is mainly prevalent in organizations that have adopted individual performance-related pay systems.

Many individuals have built up the discernment that more pay can prompt better execution. This issue is more mind boggling than meets the eye since the employees’ performance is a blend of numerous components which don’t essentially end with a superior remuneration. In spite of the way that the centrality of relative and outright pay has been widely looked into, various crevices stay unexplored. Most associations have over depended on pay-for-performance ways to deal with their critical human resources. Unions broadly depended on pay frameworks with an end goal to enhance authoritative execution by emphatically impacting their representatives’ conduct.

Numerous business associations are progressively applying representative fulfilment through the job of the strategy of strengthening. Strengthening is the procedure of giving the representative power with the goal that they can be more relevant to the business association by taking part in the choice making process. By presenting strengthening, there will be no stream of control from the top echelons of the enterprise downwards. Engaged representatives will settle on choice naturally, since they do have their particular voice in what to do, when to do and how to do.

For an organization to be successful, it is imperative that the needs of both the organization and the employees are satisfied. The management should establish an interconnected liaison with the employees in order to guide the organization to the fore. The employees in the business have a role to play by adhering to the setup rules and regulations of the organization. On the other hand, the workers anticipate positive working conditions in terms of a good salary, good treatment, job security and enough attention from the managers. The needs and anticipations of both the employers and the employees differ from one organization to another. It is, therefore, of the essence of the body to consider the expectations of the workers so as to come up with a better way to inspire the workforce.

Many employees have expressed their confidence in the HR department’s performance in terms of treating the employees. Besides, the employees are allowed to participate in decision-making processes within the organization. The top management also plays a greater role in terms of motivating the workers. Needless to say, the employees are greatly satisfied with the incentives they get from the organization.

This research paper found out whether a business organization can rely on its employees to attain the desired productivity and efficiency levels. Also, such business organizations can depend upon highly motivated employees that share aspirations and visions of the company. This research essay has, therefore, answered the following questions in an exhaustive manner: What is the impact of the level of pay for the employee performance? Have motivations of employees resulted in the organizational growth? Work approaches were better, and there was a higher production in the groups directed by the supervisors. The managers demonstrated the employee-oriented behaviour.

To act in the organization’s attention and to perform well over time, the employee reward policy should be deliberated to synchronize the workforces with the organizational ploy by offering incentives for accomplishing the tasks by the employees. Expectancy theory is concerned with the confidentiality of the human resources that they should feel that their initiatives would impact the fiscal incentives they get from the employer. If an employee decides whether to remain in the organization and bring about the valuable benefits to the business, then they will always be influenced by the awareness of equity theory. The scale to which an organization discriminates the employee pay structure on the footing of its performance in analogue jobs is known as internal equity

Empowerment connotes facilitating employees more associated with their employment and in the business operations of the organization by enhancing their participation in the decision-making process. The part played by the workers is critical to the accomplishment of the organization’s targeted performance. Further, teamwork among employees will have a significant brunt on any organizational performance. Employees are recommended to choose a working environment in which all their needs are catered for. Without motivation, the overall performance of the employees will drastically fall.

Employee pay creates a level of competition in the job market, thus, for companies or business organizations to attract and retain the best talents available, they should have an excellent motivation program into the workforce. When employees feel that they are not well compensated, they are at liberty to seek for alternative working environments that offer them their desired objectives. It is essential for an organization to be aware of the significance of motivation, how it works and how it produces optimistic vigour among the workers. The hopeful energies play an important role in the increase of the employees’ performances in the organization and further advance their effectiveness.

The study has revealed that remuneration is the key to the employees’ success in the workplace. The more motivation an employee gets, the more active he becomes to the organization. Employee pay is, thus, necessary to foster good performance in an organization. An organization that does not pay its employees well is bound to lag behind in terms of competition in the market. Many potential employees are attracted by the motivating elements that exist in a company. Motivation also helps to retain the existing good workers that the organization has. As an individual, I would rather choose to work in an organization that motivates its employees because of the opportunities for growth that are present.

Remuneration can be described as the inclination of an individual to exert high magnitude of efforts. Employees are able to exercise more effort when their capability and the job match is in balance. Also, the put in more effort when due recognition is made for their achievements and when prospect for growth are. Employees who have engaged in productivity for so long and are more involved in organizational growth are known as motivated employees.

Low morale among the employees is a sign of an organizational disease that signifies a lack of motivation and demands a high attentive treatment and cure. Hence, for any business organization to accomplish its objectives and goals, high-spirited employees are the need of the hour. Employee remunerations have become an ingredient fact to make the employees give their best.

A few plans are more far reaching overall business associations attempting to improve the compensations of the representatives. The vital official pay activities will focus on what the agents accept to be noteworthy. Giving workforce more choice making force and responsibility enlarges their circles of control over the assignments for which they are considered responsible and productively prepares them to achieve those employments. At the beginning, convictions of unsettling influences, creating from being held responsible for some activity for which a worker does not have the sources to perform are debilitated. Business administrators, which distinguish the little wins of work powers empower majority rule environments and approach workforces with deference and decency and see to it that their work strengths are amazingly persuaded. One association’s manager meditated to line up with thirty intense non-monetary impetuses that cost nothing.

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Appendix

Appendix 1: Questionnaire

Part Ⅰ Demographic Characteristics of Respondents.

Characteristics

  • Gender
    • Male
    • Female
  • Age
    • 18-25
    • 26-35
    • 36-45
    • 46-55
    • above 55
  • Education level
    • High school or below
    • Diploma
    • Bachelor degree
    • Postgraduate degree or above
  • How many years have you worked in the King Hamad University Hospital
    • less than 3 years
    • 4-7 years
    • 7-10 years
    • more than 10 years
  • Average monthly income
    • <1000
    • 1000-2000
    • 2001-3000
    • 3001-5000
    • >5000

Part Ⅱ Proposed Measurement Items for Factors

Please answer the following questions using the 5-point scale

Strongly Disagree Disagree Neutral Agree Strongly Agree
1 2 3 4 5

Please answer the following questions based on your own opinion

The King Hamad University Hospital knowledge
Compared to the average person, I am familiar with the hospital’s human resources policies 1 2 3 4 5
Compared to my friends, I am familiar with hospital’s compensation programs 1 2 3 4 5
Compared to my colleagues, I am familiar with the hospital’s employees’ benefits 1 2 3 4 5
Environmental Concern
I am extremely worried about the state of the world’s environment and what it will mean for my future 1 2 3 4 5
Mankind is severely abusing the environment 1 2 3 4 5
Human must live in harmony with nature in order to survive 1 2 3 4 5
I think environmental problems are very important 1 2 3 4 5
Fair wages
This King Hamad University Hospital offers a good service that is worth its wages 1 2 3 4 5
The wages are acceptable 1 2 3 4 5
Compared to wages of other hospitals, this King Hamad University Hospital charges fairly 1 2 3 4 5
Service quality
The staffs are reliable and helpful 1 2 3 4 5
The staffs are professional 1 2 3 4 5
The staff respond to my inquiries quickly 1 2 3 4 5
Hospital facilities
The hospital temperature is comfortable 1 2 3 4 5
The hospital environment is comfortable 1 2 3 4 5
The hospital environment is clean 1 2 3 4 5
The hospital lighting is appropriate 1 2 3 4 5
The decoration of the hospital is comfortable 1 2 3 4 5
Subjective norms
Most people who are important to me think I should stay at the King Hamad University Hospital 1 2 3 4 5
Most people who are important to me would want me to stay at the King Hamad University Hospital 1 2 3 4 5
People whose opinions I value would prefer that I stay at the King Hamad University Hospital 1 2 3 4 5
Satisfaction
Overall, I am satisfied with the experience in this King Hamad University Hospital 1 2 3 4 5
I do not regret staying at King Hamad University Hospital 1 2 3 4 5
I am glad to stay in the King Hamad University Hospital 1 2 3 4 5
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