Research Report-Warid-Sana Gillani

8/7/2019 Research Report-Warid-Sana Gillani

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Al-QuranAl-Quran

In the name of Allah, the beneficent, the Merciful

Say: If the ocean were ink (where with to write out) the words of my Lord,

sooner would the ocean be exhausted than would the words of my Lord,

even if We added another ocean like it, for its aid

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Acknowledgement

Praise to be Almighty Allah , Whose blessings and exaltation flourished

our thoughts, enlightened our heart, thrive our ambitions and enabled us to

contribute sincerely to the sacred wealth of knowledge. Special praises and

regards for His last Prophet Hazrat Muhammad (PBUH) who is forever a tower

of knowledge and guidance for humanity.

I am thankful to Sir Rana Nadir for his indispensable guidance,

patronizing concern and provision of facilities for this research work.

I express omy profound and cordial gratitude to reverend and respected

Atiq Khan; Regional Manager- HR Operations and HIna Zahid; Sr. Executive

R&D, Warid Telecom Pakistan for their enormous cooperation and help.

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Role of incentive in Performance Management

Contents

Page Number

Chapter One Introduction1.1 Aims and Objectives. ...... 7

1.2 Literature Review...7

1.2.1 Performance......7

1.2.2 Performance Management.....7

1.2.2.1 Managing Performance Effectively......8

1.2.2.2 Benefits of Performance Management...8

1.2.2.3 Concerns about Performance Management..9

1.2.3 Incentives...9

1.2.3.1 Categories of Incentives....9

1.2.3.2 What Incentives can do?.....................................................................10

1.2.3.2.1 Theories on Incentive-Effort Relationship....11

1.2.3.3 Incentives that impact on motivation of staff...14

Chapter Two Theoretical Framework and Hypothesis Development

2.1. Theoretical Framework.15

2.2. Hypothesis Development16

Chapter Three Data Collection

3.1 Data Collection Methods ...17

3.1.1 Interview......................................................................................................17

3.1.2 Questionnaire..........................................................................................17

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3.2 Data Collection.18

3.2.1. Company Profile.....18

3.2.1.1. Origin and History....18

3.2.1.2. Vision.18

3.2.1.3. Location.....18

3.2.1.4. Market Share....18

3.2.1.5. Financial Performance....19

3.2.1.6. Size in Terms of Employees...19

3.2.1.7. Roles and Positions in the Organization..19

3.2.1.8. Communication channels20

3.2.1.9. Control System.20

3.2.1.10. Human Resources Management ..20

3.2.1.11. Performance Management System..21

3.2.1.12. Reward system.21

3.2.1.13. Interdependencies among Various Departments ...22

3.2.1.14. Perceptions, Attitudes, and Behavior of Organization Members..22

Chapter Four Data Analysis

4.1 Data Analysis...24

Chapter Five Conclusions and Recommendations5.1 Conclusions..26

5.2 Recommendations...26

Appendix I ..28

References .33

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Chapter One

INTRODUCTION

This report comprises of the study of the role of incentives in performance

management of the employees working in Warid Telecom, Pakistan. Both

behavior and results are the two critical elements of what is known as

performance. Managing employee or system performance facilitates the effective

delivery of strategic and operational goals. Performance management includes

activities to ensure that goals are consistently being met in an effective and

efficient manner. Performance management can focus on the performance of an

organization, a department, employee, or even the processes to build a product

or service, as well as many other areas. 1

Performance management which focuses on employees implies that being

busy is not the same as producing results and that lot of hard work, strong

1 http://en.wikipedia.org/wiki/Performance_management ; retrieved on 02-08-2010

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commitment and training alone are not results. Hence performance management

redirects our efforts away from busyness toward effectiveness.

Organizations are facing challenges like never before. Increasing global

competition among businesses has meant that all companies must developeffective strategies to remain competitive. Everyone (and everything) in the

organization must be doing what they're supposed to be doing to ensure

strategies are implemented effectively.

These circumstances have put more emphasis on effectiveness that

systems and processes in the organization must be applied in the right way to

achieve desired results. All of the results across the organization must continue

to be aligned to achieve the overall results desired by the organization for it to

survive and thrive. Only then it can be said that the organization is actually

performing. 2

Since ineffective employees performance can lead to ineffective

organizational performance on whole. Hence an effective performance

management system needs to be in place and aliened with rewards system

which positively enhance employees performance. Thus a study of the role of incentives in performance management of the employees would help to identify

how far incentives are positively related to employees performance, which can

be used to make recommendations and take necessary actions for improvement

to make up for any gaps between current and effective performance

management system.

1.1. Aims and Objectives

The objectives of undertaking this research are;

To study the correlation between incentives and employees performance

To analyze the results and findings.

2 http://www.managementhelp.org/perf_mng/defntion.htm ; retrieved on 02-08-2010

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To suggest necessary changes to improve the system to enhance

performance of an employee as well as of organization on whole.

1.2. Literature Review

1.2.1. Performance

Performance has two dimensions; behaviors and results. Performance

can be thought of as actual results vs. desired results. Any discrepancy, where

actual is less than desired, could constitute the performance improvement zone.

Where performance improvement is any effort targeted at closing the gap

between actual results and desired results. 3

1.2.2. Performance Management

Performance Management is a term used to improve team performance,

based on the principles of measurement, appraisal, action and monitoring.

However, it can be manifest in very different forms depending on whether the aim

is to further improve good performers, or deal with underperformance.

Performance Management can also apply to individuals, teams, groups or organizations. 4

Performance management can be defined as "Taking action in response

to actual performances to make outcomes for users and the public better than

they would otherwise be." 5

Employee performance management includes:

Planning work and setting expectations

Continually monitoring performance

3 http://en.wikipedia.org/wiki/Performance_management ; retrieved on 02-08-20104 http://www.teamtechnology.co.uk/performancemanagement.html ; retrieved on 05-08-20105 http://www.idea.gov.uk/idk/core/page.do?pageId=4405770; retrieved on 05-08-2010

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http://en.wikipedia.org/wiki/Performance_improvementhttp://www.opm.gov/perform/overview.asp#5http://www.opm.gov/perform/overview.asp#5http://www.opm.gov/perform/overview.asp#4http://en.wikipedia.org/wiki/Performance_managementhttp://www.teamtechnology.co.uk/performancemanagement.htmlhttp://www.teamtechnology.co.uk/performancemanagement.htmlhttp://www.idea.gov.uk/idk/core/page.do?pageId=4405770http://en.wikipedia.org/wiki/Performance_managementhttp://en.wikipedia.org/wiki/Performance_improvementhttp://www.teamtechnology.co.uk/performancemanagement.htmlhttp://www.idea.gov.uk/idk/core/page.do?pageId=4405770http://www.opm.gov/perform/overview.asp#5http://www.opm.gov/perform/overview.asp#4


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Developing the capacity to perform

Periodically rating performance in asummary fashion

Rewarding good performance.

1.2.2.1. Managing Performance Effectively

In effective organizations, managers and employees have been practicing

good performance management naturally all their lives, executing each key

component process well. Goals are set and work is planned routinely. Progress

toward those goals is measured and employees get feedback. High standards

are set, but care is also taken to develop the skills needed to reach them. Formal

and informal rewards are used to recognize the behavior and results that

accomplish the mission. All five component processes working together and

supporting each other achieve natural, effective performance management. 6

1.2.2.2. Benefits of Performance Management

The key Benefits of Performance Management are:

PM focuses on results, rather than behaviors and activities.

Aligns organizational activities and processes to the goals of the

organization.

Cultivates a system-wide, long-term view of the organization.

Produces meaningful measurements.

1.2.2.3. Concerns About Performance Management

Typical concerns expressed about performance management are that it

seems extraordinarily difficult and often unreliable to measure phenomena as

complex as performance. People point out that today's organizations are rapidly

changing, thus results and measures quickly become obsolete. They add that

6 U.S. Office of Personnel Management 1900 E Street, NW, Washington, DC, 606-2532

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translating human desires and interactions to measurements is impersonal and

even heavy handed. 7

1.2.3. Incentives

An incentive is any factor (financial or non-financial) that enables or motivates a

particular course of action, or counts as a reason for preferring one choice to the

alternatives. It is an expectation that encourages people to behave in a certain

way. 8

Categories of Incentives

Incentives can be classified into three broad classes:

1. Remunerative incentives (or financial incentives ) are said to exist where

an agent can expect some form of material reward especially money in

exchange for acting in a particular way.2. Moral incentives are said to exist where a particular choice is widely

regarded as the right thing to do , or as particularly admirable, or where the

failure to act in a certain way is condemned as indecent. A person acting on a

moral incentive can expect a sense of self-esteem, and approval or evenadmiration from his community.

3. Coercive incentives are said to exist where a person can expect that the

failure to act in a particular way will result in physical force being used against

them, for example by inflicting pain in punishment, or by confiscating or

destroying their possessions. 9

1.2.3.1. What Incentives can do?

7 http://www.managementhelp.org/perf_mng/benefits.htm; retrieved on 02-08-20108 Sullivan, arthur ; Steven M. Sheffrin (2003). Economics: Principles in action . Upper Saddle River,New Jersey 07458: Pearson Prentice Hall. pp. 31.9 http://en.wikipedia.org/wiki/Incentive ; retrieved on 02-08-2010

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http://www.managementhelp.org/perf_mng/benefits.htmhttp://en.wikipedia.org/wiki/Arthur_O'_Sullivanhttp://www.pearsonschool.com/index.cfm?locator=PSZ3R9&PMDbSiteId=2781&PMDbSolutionId=6724&PMDbCategoryId=&PMDbProgramId=12881&level=4http://en.wikipedia.org/wiki/Incentivehttp://www.managementhelp.org/perf_mng/benefits.htmhttp://en.wikipedia.org/wiki/Arthur_O'_Sullivanhttp://www.pearsonschool.com/index.cfm?locator=PSZ3R9&PMDbSiteId=2781&PMDbSolutionId=6724&PMDbCategoryId=&PMDbProgramId=12881&level=4http://en.wikipedia.org/wiki/Incentive


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There are three primary ways by which incentives can enhance organizational

performance

1. Motivational effect: Incentives could motivate more effort. 10

2. Informational effect: Incentives provide people with information about

what the organization values and what its priorities are. 11

3. Selection effect: Incentives attract right kind o people and repel the

wrong kind. 12

The motivational effect is directly related to the employees performance. It

encompasses the concepts of motivation and effort. Where motivation is theability of people to perform functions, solve problems and set and achieve

objectives. Motivation leads people to put in effort in what they do. Effort has two

directions towards a task or towards learning. Both will eventually lead to

performance, but while effort towards a task (direction, duration, and intensity)

results in immediate performance, learning delays performance and is an

important characteristic of strategy development.

10 Gabor A. (1990) The man who discovered quality, times book, New York.11 McCartney S. (1995) How to Make an Airline Run on Schedule, Wall Street journal12 Edward P. (2000) The Power of Incentives, The American Review, 410

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1.2.3.1.1. Theories on Incentive-Effort Relationship

Following theories show how incentives affect effort.

Expectancy Theory

People act to maximize expected satisfaction with outcomes.

People are motivated by two things:

1. What they think the payoff is for a particular behavior and (in this case,

money)

2. How much they value that payoff (research shows people value

monetary payoff over non-monetary payoff).

The combination of these two factors is what motivates people. In other

words, people make more effort when performance-based incentives are used

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because they believe they will get money when they perform as expected and

they really like money.

Agency Theory

Individuals have utility for increases in wealth

Agency theory assumes that people are rational and will make choices

based on the choices ability to increase either their wealth or leisure. If a task

does not add to economic well-being, people will shirk the task.

Goal-setting Theory

proposes that personal goals are the primary determinant of, and immediateprecursor to, effort

Goals have a main effect on effort, separate from expectancy, and are

themselves affected by monetary incentives in that monetary incentives may

cause people to set goals when they otherwise would not, set more challenging

goals than they otherwise would and have higher goal commitment.

Social-cognitive theory (self-efficacy theory)

Self-efficacy directly affects effort when a person expends effort (direction,

intensity, duration, and learning) on a task that he or she believes he/she is able

to accomplish. The belief that one can achieve a task also indirectly affects effort

via goal setting such as when people who believe they are able to accomplish

much, set high goals for themselves, which according to goal-setting theory

would immediately precede effort.

1.2.3.1.2. Person Variables:

Direct role of skill on incentives-effort-performance relation:

Incentives may increase a persons effort, but that effort will not

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necessarily lead to increased performance if the individual is lacking the

requisite skills.

Indirect role of skill on incentives-effort-performance relation: If a

person has the requisite skills, then he/she should tend to believe that the

task could be accomplished. As a result of increased self-efficacy, a

person may then set higher goals and/or be more committed to those

goals.

1.2.3.1.3. Task Variables

Effects of task complexity on the incentives-effort-performance

relation: An increase in task complexity would ultimately lead to a

decrease in the effect of monetary incentives impact on performance,

unless a person has a high enough level of self-efficacy and skills to offset

task complexitys effect.

1.2.3.1.4. Environmental Variables

Environmental variables are all the things surrounding the person who is

doing a task and monetary incentives are one such variable. Additional variables

that would include time pressure, accountability relationships, assigned goals,

and feedback

Effects of assigned goals on the incentives-effort-performance

relation: Assigned goals have an indirect positive affect on effort by its

positive direct affect on both personal goals and self-efficacy. However, if

assigned goals are so extreme that they cannot be accomplished, then

they will have a negative impact on performance. Furthermore, specificgoals lead to greater effort than vague ones. Monetary incentives,

combined with assigned goals, can also affect all four dimensions of effort

such as when compensation is tied to accomplishment of goals.

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Effects of other environmental variables on incentives-effort-

performance relation: Feedback can positively affect motivation,

learning, and self-efficacy and it can interact with monetary incentives

such as when people use feedback to increase their performance. Or, if

information asymmetry exists, feedback can assist people in shirking. 13

1.2.3.2. Incentives that impact on motivation of staff

Pay, Salaries, efficiency wages etc.

Direct financial benefits, such as Pension, illness/health/life

insurance; allowances (clothing, housing, etc.), subsidies, gain

sharing.

Indirect financial benefits such as subsidized meals/clothing/accommodation/ transport, scholarships, tax breaks; etc., deferred

compensation such as seniority pay.

Flexible schedules, part-time/ temporary work; sabbatical, study

leave, holidays, vacation, etc.

Work environment/conditions, occupational health, safety,

recreational facilities.

Amenities, school access, infrastructure, transport, etc.Job security; Career/ professional development/ training

opportunities

Feedback, coaching, valued by organization

Solidarity, socializing, camaraderie, affection, passion

Status, prestige, recognition

Sense of duty, purpose, mission

Security, opportunities, stability, risk14

13 http://maaw.info/ArticleSummaries/ArtSumBonnerSprinkle02.htm ; retrieved on 02-08-201014 UNDP Conference Notes #8 working draft (2006), incentive systems: Incentives, motivation, andDevelopment performance.

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Chapter Two

THEORETICAL FRAMEWORK AND HYPOTHESIS DEVELOPMENT

2.1. Theoretical Framework

Performance is the dependent variable, which is the variable of primary

interest, which can be effected by various independent variables based on

literature review:

IncentivesMotivation

Skill

Task complexity

Feedback

Time pressure

Assigned goals

Higher incentives and feedback will motivate employees to performance

better. As found in literature feedback affect motivation, learning, and self-

efficacy positively and it can interact with monetary incentives such as when

people use feedback to increase their performance for higher monetary gain.

Higher the task complexity lower will be the performance as complex tasks

would consume more time and performance in such case is highly dependent on

motivation and self efficacy of the employees.High skill level and time pressures are positively related to performance

given the elevated importance of reward for the employee as skill employees

would perform on better pace as compared to unskilled one and timelines

motivates employees to higher performance if results are associated with

incentives which employee thinks are important.

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Furthermore specific, clear, realistic and challenging assigned goal will

lead to better performance.

A schematic diagram of the theoretical framework is as follows;

Independent Variable Dependent Variable

2.2. Hypothesis Development

Based on the above theoretical framework various hypotheses can bedrawn. The focal one is as follows;

Incentives motivate people which leads to greater employee

performance

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Incentives

Motivation

Skill

TaskComplexity

Feedback

TimePressure

AssignedGoals

Performance


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Chapter Three

DATA COLLECTION

3.1. Data Collection Methods

Data was collected by following methods:

Review of national and international relevant literature on the subject was

carried out in libraries and online search engines.

Interview of the HR-Manager of Warid Telecom.

Survey questionnaire filled by the HR-Manager of Warid Telecom.

3.1.1. Interview

A structured interview is a research tool in which questions are prepared

in advance. Data could be analyzed later and report results based on analysis.

A face-to-face interview is used in this study, which is based on a direct

meeting between interviewer and interviewee. 155 Interviewer guides the questions

and focuses the study.

Face-to-face interview does not bore a respondent and ensures full and

accurate data. Researcher can adapt the questions as necessary, clarify doubts

and ensure that responses are properly understood by repeating or rephrasing

questions.

3.1.2. Questionnaire

Questionnaire is also used to collect data. It is a written set of questions towhich respondents record their answers. Questionnaire formulated for this study

is a blend of close ended as well as open ended questions.

The interval scale (Likert scele) is used in which responses to various

items measuring the variable can be tapped on a five-point sale.

155 http://www.romir.ru/en/products/methods/face/; retrieved on 02-08-2010

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3.2. Data Collection

Data was collected through interview and questionnaire. Following is the

information obtained based on data.

3.2.1. Company Profile

3.2.1.1. Origin and History

Warid is operated by Abu Dhabi Group led by Sheikh Nahayan MabarakAl Nahayan. Warid started it services in Pakistan May 2005. Now is a joint

venture between Abu Dhabi Group & SingTel Group. Abu Dhabi Group entered

into a strategic alliance with Singapore Telecom. Subsequent to this transaction

in July 2007, telecom giant SingTel acquired 30% percent equity stake in Warid

Telecom, Pakistan, for US$758 million. This partnership is part of a strategy to

support Warid Telecoms continued growth and to enhance its market position.

3.2.1.2. Vision

To become the primary service provider of all communication needs of

subscribers in Pakistan, supported by exemplary customer care.

3.2.1.3. Location

Warid telecom has one head office in Lahore and three regional offices;

Central region (Lahore being focal point)

North region (Islamabad being focal point)

south region (Karachi being focal point)

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3.2.1.4. Market Share

According to Pakistan Telecommunication Authority, Warid Telecom has

18.14 million subscribers of 32 million in total as of July 2009. It is ranked as the

fourth largest operator in Pakistan. Warid Pakistan claims it has the largest post-paid subscriber base in Pakistan. 1616

3.2.1.5. Financial Performance

Warid is one of the leading companies in Pakistan Telecom industry.

Warid Telecoms revenue has been increased by 14% during the year 2008 -

2009 as compared to its competitors; Ufones revenue increased by 4% and

Telenors by 12%. On the other hand it is still lagging behind the Mobilink whoserevenue has been increased by 46% on the said year.

3.2.1.6. Size in terms of Employees

Total numbers of employees working in Warid Telecom are 1201 .

3.2.1.7. Roles and Positions in the Organization

Warid Telecom has three types of employees;

Permanent

Contractual

Outsourced

Following are the grade levels in Warid Telecom;

Grade 5 - General Manager

Grade 4 - Deputy General Manager/ Senior Manager

1616 http://ptcltelephonedirectory.com/blog/about-warid-telecom.html ; retrieved on 05-08-2010

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Grade 3 - Managers

Grade 2 - Assistant Managers

Grade 1 - Executives

Below Grade 1 - Laborers, Patrols / guards

Variable Grades Contractual

3.2.1.8. Communication Channels

Both formal and informal communication channels are in place in Warid

Telecom.

Formal communication channel include;

Online communication using companys own intra-net

E-mails

Written memos

Letters

Notices

Informal communication channels include;

Meetings

Presentations

On job face to face conversation

Telephone (calls / sms)

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3.2.1.9. Control System

Warid Telecom has various Formal Control Mechanisms;

Code of conduct, which is frequently emphasized and clearly

communicated to the employees. Penalty system is in place to ensurerealization of code of conduct

Attendance management system

Policies

Performance objectives and targets

3.2.1.10. Human Resources Management

Warid telecom has a well organized human resource department which

consists of a team of around 20 personal. The HR system has sound and

comprehensive policies regarding various human resources management

functions. The department has various technical facilities and competent work

force which is managing human resources of the company effectively and

efficiently. It is evident from the 14% increase in the revenue earned by the

company during last year and the lower turnover and absenteeism rate as quoted

by the head of HR- Operations.

3.2.1.11. Performance Management System

Performance management system in Warid Telecom involves;

Goals and objectives setting of every employee by the supervisor in

consultation with the employee concerned

On going coaching, monitoring and feedback on the performance to

ensure achievement of set objectives

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Annual evaluation of the performance through performance

appraisal

3.2.1.11.1. Performance Appraisal

Management by Objectives (MBO) format of Performance appraisal is

being used in Warid Telecom.

Weightage of job related factors personal characteristics is as follows;

o Job related factors = 80%

(e.g. knowledge of work , quality of work, quantity of work etc.)

o Personal characteristics = 20%

(e.g. interpersonal skill, interpersonal, leadership,

communication skills, punctuality, decision making, coordination etc.)

3.2.1.12. Reward system

Reward system consists of both financial and non financial incentives. All

financial incentives are strictly performance based.

Financial incentives include

Salary Increments

Bonuses

Leave fair assistance (LFA) which encompasses one additional basic

salary and 5 days leave

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Sponsored travel

Accelerated promotion

Sponsored recreation activities

Special prizes

Non financial incentives include

Assignment of additional authority

Ceremony arranged in recognition of performance e.g employee of the

month award issuance of certificate of appreciation

Recreational activities e.g.

o Annual cricket match

o Tours and trips

o Annual night / concert

o Bowling competition etc.

3.2.1.12. Interdependencies among Various Departments

Various departments/units of Warid Telecom are interdependent. The

focal point of which is quality assurance department i.e. every department is

dependent on each other through QA and the dependencies are clearly

communicated.

3.2.1.13. Perceptions, Attitudes, and Behavior of Organization Members

Organization members/employees have partial participation in decision

making

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Warid Telecom has a strong team based culture and coworkers are

helping and friendly

Warid Telecom do offer opportunities for the advancement to its

employees as it prefer internal recruitment for position filling and alsogive preference to its own employees over external candidates.

Leaves: Warid do encourage employees to avail annual leaves which

are for ten days in a calendar year. Other leaves include without pay

casual leaves and fully paid maternity leaves for two months.

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Chapter Four

DATA ANALYSIS

4.1. Data Analysis

The data acquired show that Warid Managerial workforce have a clear

understanding of the vision of the company, which is very important as

effective performance managements utmost objective is to set individualgoals that are aligned with the company`s strategic objectives, and that every

employees should contribute to the ultimate achievement of the company`s

strategic objectives. For that matter a clear understanding of vision of the

company plays a vital role, which provides direction and guideline for setting

of individual goal in performance management. Hence in Warid Telecom

Individual goals are developed on departmental goal which are in line with the

organizational vision and mission statement.

Warid Telecom has tied incentives with good performance. And the

objectives and scheme of rewards based on performance is clearly

communicated to the employees which would stimulate employees to perform

well for the achievement of the desired reward.

Warid Telecom is aware of the importance of incentives hence it grants its

good performers with both financial and non financial rewards. As monetary

benefits stimulate employees to perform well and it can retain higher performers. Non financial incentives results in higher employee satisfaction. It

has also been revealed by the data that the Warid Telecom has designed and

implemented a competitive reward system which also helps higher employee

satisfaction and retention.

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On part of the effectiveness or the performance based incentives data

illustrate that the employees are satisfied with the current incentives offered

by the company and that they think implementation and reinforcement

mechanism are suitable. And they believe that only good performers should

be rewarded which will create difference between good performers and

average or bad performers and it will motivate other employees to perform

well. Also the recognition of good performance plays a vital role in motivating

others. Also Warids workforce believe that the PBI system can increases

institutional competitiveness and they are satisfied with the system and

believe that it can positively effect performance by increasing their motivation

to perform well.

Warid Telecom frequently distributes performance based incentives for

example bonus, recognition and certificate for the Employee of the Month.

Frequent and timely rewards are more effective in terms of motivating

employees as compared to less frequent or delayed reward. It helps increase

the rate on which other employees can be stimulated and motivated to

perform well.

The effectiveness of the PBI system depends on the clear understanding

of the results/outcomes by the employees. Hence it is found that in Warid

employees clearly understand what is expected of them as there are

comprehensive job descriptions as well as continuous coaching and by the

supervisor.

Warid employees are also seemed to be satisfied with the competence of

the supervisor who evaluate their performance and that they are objective

and fair in their judgment.

Furthermore Warid Telecom employees do not strongly agree that a fair

budget is allocated to the PBI system to the employees. A problem indentified

with the current PBI system in Warid is that that employees are not involved

in the process, neither in the formulation of the type and amount of rewards

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nor in the evaluation of the performance. This may leave employees less

satisfied with the fair working of the system.

Chapter Four

CONCLUSION AND RECOMMENDATIONS

5.1. Conclusion

On the basis of the analysis of the data it can be concluded that the

incentives play a vital role in managing and enhancing employees performance

by increasing their level of motivation.

Furthermore it can be said that the reward system which incorporates

employees aspirations and consider their expectation is far more effective than

the one which does not.

It has been found that non-financial incentives increase employee

motivation than financial incentives. Moreover non financial incentives alone are

not enough to increase employee motivation; it is most effective when a blend of

both is offered to the employees.

5.2. Recommendations

Based on the findings following recommendations can be made to improve

the effectiveness of the PM system.

Performance evaluation should be done bi-annually or quarterly.

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Training should be provided to the appraiser to frequently upgrade and

indentify KPI`s and goal setting with reference to current needs. As well as

to evaluate performance objectively and impartially.

Incentives should be provided which will directly contribute to theemployee development for example educational assistance, study leave

etc.

Employees should be involved in formulation of reward policies and

evaluation of their performance.

Sufficient budget should be allocated to the PBI system to increase its

effectiveness in terms of greater employee motivation, satisfaction andretention.

Frequent up gradation of the policies is recommended for incessant

progress and growth.

Employees aspirations, expectations and wants should be considered

while designing the reward system.

Underperformers should be provided with appropriate training to enhancetheir skill level and motivation.

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Appendix I

A study on THE ROLE OF INCENTIVES IN PERFORMANCEMANAGEMENT in WARID TELECOM PAKISTAN.

Research Questionnaire

Section One: Demographic and Attributes, Please tick the appropriate box

0 Name of Employee/department: Atiq Khan

1 Position/Designation: Head of Recruitment, Development & Regional HR Operations

2 Qualification:

Ph.D. M.Phil/MS Masters Bachelors

3 Experience in Job (Years): Years with current Organization: 4+ years

5 Age (Years):

6 Gender :

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Male Female

32


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Section Two: Role of Incentives inPerformance Management Strongly

agreeAgree

Partially

Agree/partially

disagree

DisagreeStro

Ag

7 I have a clear understanding of organizational vision and mission.

8 In my organization, departmentperformance goals are developed in linewith Organizational vision and missionstatement.

9 In my opinion, performancemanagement system is in existence inmy organization.

10 I am aware of the objectives of currentperformance related reward offering.

11 Following type of performance based incentives (PBI) are currently offered by the organization to boostmy performance

Financial Non-financial Combination of both

12 Following non-financial performance based incentives (PBI) are currently offered to me: (tick theapplicable box)

Accelerated Promotion Salary increment Special prize Sponsored TravelSponsored Training And education Sponsored Recreation/entertainment Other

13 Following non-financial performance based incentives (PBI) are currently offered to me: (tick theapplicable box)

Assignment of additional charge/authority Issuance of certificate of merit/Honour/AppreciationEmployee of the year award Acknowledgement of performance in official publications

Ceremony arranged in Recognition of performance Job enrichment/ Job rotation

Employee of the spot/month / quarter Other. Please specify


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34


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Stronglyagree

agree

Partially

Agree/partially

disagreedisagree

Stron

Disag

14 I think that existing performancebased incentive system is compatiblewith other Organization in Pakistanknown to me.

15 I feel satisfied with the currentavailability of performance basedincentives system.

16 Implementation/reinforcement of performance based incentive systembased on performances suggested byHigher Management is suitable.

17 In my view there should be a

noticeable difference in rewardincreasing among employees basedperformance.

18 -------------should be given higher weightage in my performanceevaluation.

19 When an employee receives aperformance incentive, the other employees are motivated to exert

extra effort.

20 Performance based incentives aredistributed less frequently.

21 My suggestions and reservationsrelating to PBI are duly considered bythe concerned authorities.

22 I fully understand theresults/outcomes expected from me

to do my job.23 My supervisor who evaluate my

performance is competent enough todischarge such function with duecare.

24 My supervisor who evaluates myperformance is generally biased andunfair.

25 In my view, serious attempts aremade to mitigate the , risks and


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REFERENCES

1. http://en.wikipedia.org/wiki/Performance_management ; retrieved on 02-

08-2010

2. http://www.managementhelp.org/perf_mng/defntion.htm; retrieved on 02-

08-2010

3. http://en.wikipedia.org/wiki/Performance_management ; retrieved on 02-

08-2010

4. http://www.teamtechnology.co.uk/performancemanagement.html ; retrieved

on 05-08-2010

5. http://www.idea.gov.uk/idk/core/page.do?pageId=4405770 ; retrieved on

05-08-2010

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http://en.wikipedia.org/wiki/Performance_managementhttp://www.managementhelp.org/perf_mng/defntion.htmhttp://en.wikipedia.org/wiki/Performance_managementhttp://www.teamtechnology.co.uk/performancemanagement.htmlhttp://www.idea.gov.uk/idk/core/page.do?pageId=4405770http://en.wikipedia.org/wiki/Performance_managementhttp://www.managementhelp.org/perf_mng/defntion.htmhttp://en.wikipedia.org/wiki/Performance_managementhttp://www.teamtechnology.co.uk/performancemanagement.htmlhttp://www.idea.gov.uk/idk/core/page.do?pageId=4405770


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Documents

Research Report-Warid-Sana Gillani