The Role of Cash and Non-Cash Rewards on Employees’ Motivation: Organizational Commitment as Mediator

Document Type : علمی - پژوهشی

Authors

1 Responsible for recruiting and training Aftab Oil Refining Company

2 Management and Accounting Department, Faculty of Humanities, University of Zanjan. Zanjan, Iran

3 Associate professor, Management and Accounting Department, Faculty of Humanities, University of Zanjan,Ira

Abstract

Purpose: Organizations face many challenges in attracting and retaining talented employees and need better ways to recruit, develop, assess, maintain, or transfer them. This applied study investigates the impact of cash and non-cash rewards on employee motivation with a mediating role of organizational commitment in Refah Bank, Zanjan. Methods: This is a descriptive correlational study. The statistical population includes all employees of the Refah Bank, with a total population of 163. The statistical sample size was 136 employees in the branches of this bank and was obtained using non-probability and purposive cluster sampling methods. The instruments were McClelland's Motives Questionnaire (1950) and Allen, Meyer's Organizational Commitment Scale (1991) and a researcher-developed questionnaire for cash rewards with a Cronbach's alpha of 0.71 and a reliability coefficient of 0.809 and on non-cash rewards with a Cronbach's alpha of 0.133 and  0.861 whose face validity was confirmed by experts. Results: Pearson correlation coefficient test and structural equation modeling technique with PLS software were used to analyze the data. Conclusion: The results show that monetary rewards (salary and benefits, fair pay, workplace amenities) and in-kind rewards (safety, participation, supervisor behavior, creativity, promotion, training opportunities) have a positive and significant impact on motivation (achievement motivation, affiliation motivation, power motivation). Employees' organizational commitment also plays a mediating role in the impact of rewards on employees’ motivation.

Keywords

References

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