The purpose of this research is to explore the motivational relationship of intrinsic and extrinsic rewards towards performance of employees attached to the Priority banking section of HSBC. The research also aims to identify the actual cause of motivation created by the existing Sales Incentive scheme and outline aspects for which how the incentive rewards scheme could be further developed in order to enhance employee motivation and thereby achieve bottom line performance to the organization.
3.1 Research Methods
The research study will adopt both quantitative and qualitative research approach, which is aligned with the objectives that it aims to attain. The reasons for selection of two types of approaches are to gather and analyze data and justify hypotheses, research objectives in a conducive manner. Quantitative data is considered as being more objective and scientific than its qualitative counterpart, since it is in the form of numbers it can be often analyzed using standard statistical techniques. In contrast, qualitative data is only applicable to phenomena that cannot be subjected to quantitative or numerical analysis. Therefore given the fact this study relates to distinctive areas such as rewards, motivation, performance and ascertaining effectiveness of the present Sales incentive scheme both quantitative and qualitative data have been selected accordingly.
In this research multiple survey modalities has been practiced to reduce sample bias, hence two types of research survey methods in form of questionnaire and personal interviews are in place to a selective number of employees in the selected sample. In order to increase response rate the author has given advance notification to persuade respondents to participate in the survey emphasizing its importance and confidentiality. Follow up calls and emails have been sent to respondents to ensure high response and conduct a more objective study in this area.
3.2 Research survey
Research data has mainly been collected through primary sources. The techniques used to gather data has been through questionnaires distributed as 'Employee feedback surveys' and structured interviews with a selected number of employees of the priority banking division. Data sampling technique will be discussed further in this chapter.
3.2.1 Questionnaire
The questionnaire included 22 questions (Refer Appendix )covering all research variables and has been divided in to two main parts, firstly general information such as the Job grade, Job position, age, gender and work experience of the respondent and secondly the questions relating to the research areas and hypotheses. All questions belong to some main variable and consists questions relating to sub variables for which has been defined to analyze research hypotheses. This will be further discussed in section 3.X-operatnlzrn…
Questionnaires were distributed to employees via email and hand delivery. Surveys were distributed to employees in house through hand delivery since they were easily accessible, whereas others based in various branch offices were requested to participate via email. Two methods of delivery were adopted in order to gain highest possible response rate within the shortest time span and fastest method.
The questions were short, precise and had a combination of dichotomous (yes/no) and likert scale responses. The likert scale ranged from Strongly agree, Agree, Neutral, Disagree to Strongly disagree and respondents required to tick the most appropriate option. Table XX illustrates how the main and sub variables were addressed in the questionnaire.
Main variable
Sub variable
Questions allocated
Intrinsic rewards
Self esteem
Q2,Q3
Recognition
Q4,Q5
Achievement
Q6,Q7
Extrinsic rewards
Salary
Q8,Q9,Q10
Incentives
Q11,Q12,Q13,Q14
Job motivation
Engagement
Q15,Q17
Commitment
Q16,Q18
Job Performance
Performance reviews
Q19,Q20
Target achievement
Q21,Q22
Table XX
In total 30 employees participated in the survey which is 66% of the total workforce attached to HSBC Premier. The survey was conducted anonymously to ensure that privacy and diligence of respondents were practiced due to high sensitivity and confidentiality of the data researched. Author has maintained high levels of integrity during conduct of the entire research.
3.2.2 Interview
A qualitative discussion was conducted with a selective number of employees in the supervisory and sample level. Primarily to gather information about their individual/subordinate perception of the existing Sales incentive scheme and how it could be developed further to enhance motivation and performance of employees.
The interview followed a structured set of 5 questions (refer appendix XX) conducted on a personal basis with 5 employees in the capacity of two Team Managers, two Senior Relationship Managers and one Junior Relationship Manager. The author selected the above interviewees based on personal judgment considering the fact of their influence, experience levels and ability to provide insight and feedback on the existing incentive scheme. Interviews lasted approximately 15-20 minutes and were documented while discussion was conducted. Interviewees were given assurance to remain anonymous due to the sensitivity and confidentiality of the data discussed. However individual profiling has been carried out to explain background of each interviewee in Chapter 4.
3.3 Conceptual Framework
The following conceptual framework has been designed by the author to conduct the quantitative analysis of research objectives and establish hypotheses. The concepts have been built through selective variables derived and defined through research problem and relevant academic literature.
H1 1111 1
Intrinsic rewards Self-esteem Achievement Recognition
Job motivation Engagement Commitment
Job performance Performance reviews Target achievement
H3 1111 1
H2 1111 1
Extrinsic rewards Salary Incentives
3.3.1 Research Variables
The main research variables and sub variables for this study are defined as follows. Specific importance has been given to the sub areas considering the depth of the research problem and relevant academic literature.
Intrinsic rewards: Research study limits this area to three sub variables namely Self-esteem, Achievement and Recognition. Based on academic literature gathered these areas of intrinsic rewarding has been considered pivotal for research hence the limitation to three areas.
Extrinsic rewards: Study limits to two sub variables namely Salary and Incentives, which relates to financial rewards. According to academic literature these are considered to be the most lucrative financial rewarding mechanisms, having considered facets author has limited to these areas.
Job motivation: Engagement and Commitment are the main areas identified for limited study. Author determines based on facts gathered that motivation will portray attributes of engagement and commitment towards an employer if evident or vice versa, hence selection of such variables to validate through the survey.
Job performance: Study limited to two main areas to determine Job performance. Namely performance reviews and target achievement. Both variables indicate measurement of individual performance. Employee performance reviews and how it's conducted provides insight as to how performance is perceived by employee-employer. Even though it's arguable that reviews are biased based on opinions there is fraction of possibility that it will reveal some valuable feedback and information to the researcher on performance.
Performance specifically for sales employees can be measured by target achievement. Actual sales achieved vs. Target are one of the common performance measurement tools to determine how best sales employees have performed at a given tenure. In this context the employees' perception of target achievement and motives to accomplish same are considered in the survey to evaluate employee performance.
3.3.2 Statement of Hypotheses
As illustrated in the conceptual framework the research study revolves around three hypotheses. The objective of the hypothesis is to establish relationships between two variables where it will include a dependent and independent variable. Refer Chapter 1 for hypothesis formulation.
Hypothesis 1: Intrinsic rewards positively relate towards Job motivation
Hypothesis 2: Extrinsic rewards positively relate towards Job motivation
Hypothesis 3: Job motivation positively relate towards Job performance
3.4 Operationalization of Conceptual framework
Concept
Variable
Measurement
Scale
Question Number
Intrinsic rewards
Self esteem
The level of appreciation and acceptance of the bank perceived by employees
Likert 1-5
Q2,Q3
Achievement
The level of achievement and how it's been perceived by employees
Likert 1-5
Q4, Q5
Recognition
The level of appreciation for the work contributed perceived by employees
Likert 1-5
Q6, Q7
Extrinsic rewards
Salary
Employees perception on the monthly remuneration paid
Likert 1-5 and Yes/No
Q8 to Q10
Incentives
Employee perception of the current sales incentive scheme
Likert 1-5 and Yes/No
Q11 to Q14
Job motivation
Engagement
The level of participation towards work activities
Likert 1-5 and Yes/No
Q15, Q17
Commitment
The level of dedication towards work activities by employees
Likert 1-5 and Yes/No
Q16,Q18
Job performance
Performance review
Employees perception towards performance evaluation at the bank
Likert 1-5 and Yes/No
Q19, Q20
Target achievement
Employee perception towards achieving sales targets
Likert 1-5 and Yes/No
Q21,Q22
3.5 Data sampling method
3.5.1 Population
Sekaran (2001, p. 225) defines a population as "the entire group of people, events or things of interest that the researcher wishes to investigate". The population for the research includes all frontline employees attached to HSBC Priority banking division eligible and remunerated under the Sales incentive scheme. This group will consist of employees from different capacities such as Business Development officers and Relationship Managers. Following is the breakdown of employees.
Job Title
No. of employees
Relationship Managers
30
Business Development Officers
15
Population
45
3.5.2 Sample selection
The sample selected for research will comprise the Relationship Managers. Sample size will therefore be only 30. Data required for the analysis of research will be derived from this sample during data collection stage.
Following is an illustration of how the sample size was determined at a confidence level of 95% and confidence interval of 10.4%.
Source : http://www.macorr.com/sample-size-calculator.htm [Accessed on 2 August 2012]
3.6 Reliability and validity of data
According to Kirk & Miller (1986) the reliability of a study is measured by how similar the results could be if another researcher conducted the same study. The results of data gathered by both questionnaire and interview are subject to have variations depending on the respondents. Factors such as time constraint, the respondent's interest in the study and willingness to give insight and share information, honesty, level of confidentiality of the information shared and the relationship with the author might affect the respondent's answers.
Based on the respondent analysis (Refer chapter 4) HSBC Priority banking division consists 56% of employees between 26-30 years of age with different experience levels. Majority of the employees are between 1-3 years. It should be noted whether this study will be useful for a working environment consisting more mature employees with higher work experience. Young employees are motivated by different factors than mature employees. The fact that the respondents are co-workers of the author might have affected the responses since it concerns question relating to job motivation and performance levels. There may be possibility that the respondents might have been unwilling to answer honestly due to fear any consequences affecting their relationship with the employer.
3.7 Data analysis techniques
The statistical programme used for the analysis and presentation of data in this research is Statistical Package for the Social Sciences (SPSS) version 17.0. The descriptive statistics utilized are based on frequency tables and graphical illustrations to provide information on defined hypotheses and key variables in this study. This is followed with presentation of the inferential statistics based on examination of each hypothesis formulated. Inferential tests used include Pearson Correlation Coefficient, Multiple Regression Analysis and Analysis of variance (ANOVA).
The upper level of statistical significance for null hypothesis testing was set at 5%. All statistical results were computed at the 2-tailed level of significance in accordance with the non-directional hypotheses presented (Sekaran, 2001).
