Impact of Rewards on Employee Performance: With Special Reference to ElectriCo.

Abstract

Human resource is considered as a strategic asset in any organization because the accomplishment of an organization’s objectives largely depends on employees. Therefore, it is important to identify factors which motivate employees for achieving goals. The objective of this study is to illustrate to what extent does employee rewards have an impact on employee performance in a public sector organization in Sri Lanka. Hence, this study has examined the relationship between extrinsic reward, intrinsic reward and employee performance in ElectriCo. In order to accomplish the research objectives, quantitative research design was carried out under the deductive approach. Self designed questionnaire was used as the primary data collection method. The data was analyzed using descriptive statistics and inferential statistics. The results revealed that there is a positive relationship between extrinsic reward, intrinsic reward and employee performance. The research results can be used as a guideline for the public sector organizations in Sri Lanka to have better understanding of significance of reward system on employee performance and furthermore it will help to design and implement strategic reward system to bring competitive advantage. The result derived from the current study is restricting the generalisability to the wider population since the study focused on one public sector organization in Sri Lanka. In the light of the findings, recommendations are outlined.