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Methods of Business Research

To Study the Impact of Commission

Based Salaries on Employee Motivation

and Performance

BAHRIA UNIVERSITY KARACHI CAMPUS

Submitted to : SIR MUMTAZ KHAN

Submitted by :

AHMED RAZA

MUHAMMAD IRFAN

Class:MBA 3A (W/E)


2/23

ACKNOWLEDGEMENTS

BAHRIA UNIVERSITY KARACHI CAMPUS

In the beginning we would like to thank Almighty Allah for giing us enough strength and!ourage to !ome "ar with this resear!h "a"er and to our instru!tor of the !ourse Ms #almaRahman whom this re"ort is submitted in "artial fulfillment for the re$uirements of the !ourseMethods of %usiness Resear!h& for her faith and trust on us& without whose guidan!e andassistan!e we wouldn't hae been able to !om"lete this resear!h re"ort(

)e would also like to thank our friends& !olleagues and all the grou" members for theirun!onditional su""ort& hel" and time for us who really hel"ed us out towards the !om"letion ofthe resear!h re"ort es"e!ially our "arents and other family members(

Yours Si!"r"#$%

AHMED RA&A

MUHAMMAD IR'AN


3/23

ABSTRACT

*he "ur"ose to "resent the resear!h was to see the how em"loyee motiation im"a!ts on"erforman!e based on !ommission based salaries( In other words the "resent resear!h was!ondu!ted to see that to what e+tent em"loyees get motiated by !ommission based salaries andhow this motiation affe!t their "erforman!e( In this resear!h em"loyee motiation in terms of!ommission based salaries was inde"endent ariable and "erforman!e was de"endent ariable(For this "ur"ose data !olle!tion tool was $uestionnaire and our sam"le si,e !onsisted of -.em"loyees( *he sele!ted sam"le was sele!ted on the basis of non/ random !onenien!e sam"lingte!hni$ue !onsidering only those em"loyees who were sales e+e!uties and were earning!ommissions on their base salaries(

*he hy"othesis formulated for this "ur"ose was:

HoCommission based salaries hae no im"a!t on "erforman!e(HACommission based salaries hae "ositie im"a!t on "erforman!e(

*he finding of our study was su""orted by the literature reiew of our resear!h in whi!h resear!hwas !arried out it was !on!luded that there is a "ositie im"a!t of em"loyee motiation on"erforman!e based on !ommission based salaries(


4/23


5/23

LIST O' TABLES

SNO T1#"s

P12"

No

* Reliability Analysis/ *able 0

, Des!ri"tie #tatisti!s/ *able 2


6/23

** INTRODUCTION

Motiation is a "sy!hologi!al feature that stimulates an organism to a!t towards adesired goal and eli!its& !ontrols& and sustains !ertain goal/dire!ted behaiors( It !an be

!onsidered as a driing for!e? a "sy!hologi!al one that !om"els or under"ins an a!tion toward adesired goal( Motiation !an be diided as e+trinsi! and intrinsi!& in this resear!h re"ort we hae!losely fo!used on e+trinsi! motiation( 4+trinsi! motiation in!ludes !om"ensation that !an be!om"onent based or "erforman!e based( )e hae targeted on "erforman!e based !om"ensationand in "erforman!e based !om"ensation our area of interest was !ommission based salaries(

Commission is a sum of money that is "aid to an em"loyee u"on !om"letion of a task& usuallyselling a !ertain amount of goods or seri!es( Commission may be "aid as a "er!entage of thesales or as a flat amount based on sales olume(

*he resear!h was aimed at des!ribing the relationshi" between em"loyee motiation and"erforman!e based on !ommission based salaries( *o des!ribe this relationshi" we used non/random sam"ling te!hni$ue and made use of $uestionnaires as our resear!h instrument( )e!olle!ted the data and used #7## software for finding out results(

*, OB4ECTIVES+

*he reasons to !ondu!t this study are as follows:

*o measure the im"a!t of em"loyee motiation on "erforman!e based on !ommission

based salaries(

*o see what kind of relationshi" @"ositie or negatie e+ists between two ariables i(e(

motiation B "erforman!es(


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,* LITERATURE REVIEW

MOTIVATION 5 PER'ORMANCE

Mufti and 8han @2.02 Motiation is often !onsidered as a driing for!e? an inner for!e or drie

that indu!es and em"hasi,es an a!t in the dire!tion of a desired aim or obe!tie( Motiation inother words !an also be !onsidered to be a "sy!hologi!al reason of an a!t(

#te"hen 7( Robbins? Daid A( De!en,o @2..0 Motiation is defined as the willingness to e+erthigh leels of effort to rea!h organi,ational goals& !onditioned by the effort's ability to satisfysome indiidual needsE( It is a need/satisfyingE "ro!ess( Motiated em"loyees are those whoare in state of tension(

%ateman and #nell& 7rin!i"les of Management( New ;ork: M!


8/23

"ra!ti!es in order to enhan!e motiational leels of its em"loyees as a result of whi!h em"loyeeswill be more "rodu!tie& effe!tie and effi!ient in their ob roles whi!h will result in in!reasedorgani,ational "rodu!tiity and returns( Mullins @09 studies gie us eiden!e that em"loyeemotiation has a !lose relation with ob satisfa!tion and one of the maor driing for!es of obsatisfa!tion whi!h leads to em"loyee motiation is !om"ensation( For su!h deotion and

dedi!ation the key remains the motiation(

A!!ording to Mufti and 8han @2.02 em"loyees with higher motiational leels work hard and"erform better in order to attain their "ersonal and organi,ational goals as !om"ared to thoseem"loyees with low leel of motiation( *hus& if we understand the re$uirements and "ros"e!tsof em"loyees will indi!ate us their bases of motiation( In this regard the work done byem"loyees and their leel of satisfa!tion is a key in order to enhan!e the a!tual motiation( *hebiggest arian!e in this res"e!t is what em"loyees want and "er!eie from their work is ofimmense im"ortan!e( A!!ording to )iley @0G there is something whi!h has a great alue forem"loyees and organi,ations should be aware of those strong motiators as they are of immenseim"ortan!e whi!h will hel" organi,ations to alter their "oli!ies and work in order to in!rease in

em"loyee motiation(;eganeh and #u @2.. the key fa!tor is to understand motiation whi!h !an easily beunderstood by taking into a!!ount the relationshi" between needs& dries& and in!enties(Minner& 4brahimi and )at!hel @0> in their work !learly mentioned and stated that motiationde"ends on three interrelated elements& i(e( needs& dries& and in!enties( A lot of work has beendone one workfor!e motiation whi!h ustifies that motiation enhan!es em"loyee "erforman!e(

%rown and #he"herd @0G in their works s!rutini,ed the basi! features of the work in anorgani,ation by differentiating the work on the basis of& knowledge base work& te!hni!al work&standards& and o"inions( *heir study results show that em"loyees !an "erform su!!essfully inmeeting their goals or deadlines only by motiating them through deelo"ing a !ommon idea or

ision with res"e!t to bond between alues and beliefs(

Motiational models !an be diided into two sub diisions( *he first one is !ontent theories thatfo!us on indiidual's intrinsi! traits and the se!ond is "ro!ess theories whi!h em"hasis on the"erson's relations with hisJher settings(

Her,berg @0 maorly fo!uses that internal fa!tors are in relationshi" with motiation obsatisfa!tion whereas e+ternal fa!tors are in relationshi" with ob dissatisfa!tion( His furtherargument is that a small amount of !om"ensation !an a!tually annoy and de/motiates don'tmean that higher !om"ensation will result in in!reased motiation( Maslow @0-9 study is alsobased on internal fa!tors of motiation as motiation is the driing for!e within a "erson toa!!om"lish a task whi!h he desires to a!!om"lish( It links motiation to human basi! needs likefood? !lothing and shelter( He stated his theory as Hierar!hy of needsE( *his theory de"ends ontwo ideas& "eo"le hae a lot of needs that are meant to be satisfied and only those needs

motiate behaiors of an indiidual whi!h are unsatisfied( *hus we !an illustrate that a "ersonwants to satisfy his or her need to a definite or !ertain leel but if that need is not satisfied it willalter his or her behaior( *he se!ond "art of this theory defines a well !om"osed and well/stru!tured hierar!hy of needs whi!h we all hae starting from bottom to to"( )hen we are able toa!!om"lish or satisfy our initial or lower needs we tend to rise u" towards our to" most or higher


9/23

needs( )hereas Her,berg @0> fo!uses on !om"le+ end !on!e"tions su!h as motiating fa!torsand hygiene fa!tors(

In #elf/Determination *heory @#D* De!i B Ryan @0> distinguished between different ty"esof motiation based on the different reasons or goals that gie rise to an a!tion( *he most basi!distin!tion is between intrinsi! motiation& whi!h refers to doing something be!ause it isinherently interesting or enoyable& and e+trinsi! motiation& whi!h refers to doing somethingbe!ause it leads to a se"arable out!ome(

I6risi! 7o6i816iois based on an inner desire to do something for the "leasure or benefit itbrings to self( Intrinsi! motiation emanates from the "ersonal desire to gain knowledge and"ursue mastery in something& e+"erien!e the "leasure of a!!om"lishment& feel the kinestheti!sensations of athleti! "erforman!e& taste the true wonder of the world& and e+"erien!e innerha""iness and fulfillment(

E96risi! 7o6i816iois based on the desire for e+ternal rewards& su!h as gaining the a""roal ofothers& earning money& winning "ri,es& or obtaining reinfor!ement for a !ertain behaior(

De!i @0G0 and Hara!kiewi!, @0G seeral early studies showed that "ositie "erforman!efeedba!k enhan!ed e+trinsi! motiation( De!i& 8oestner and Ryan @2... !onfirms that almosteery ty"e of e+"e!ted tangible reward made de"endent on task "erforman!e does motiates"eo"le to a!!om"lish their tasks in order to be rewarded so high "erforman!e is eident(

Connell and )ellborn@0. subse$uent studies hae e+tended these findings !on!erning torewards "aid as !ommissions& showing that more autonomous e+trinsi! motiation is asso!iatedwith greater engagement better "erforman!e( 5allerand and %issonnette@02 stated that lessdro""ing out higher $uality learning& and greater "sy!hologi!al well/being @#heldon B 8asser&0>& among other out!omes(

A!!ording to


10/23

ado!ate on the link between 4/7 e+"e!tan!y and effort( 8ee"ing in iew the aboe literature by5room we !an establish that motiation is the for!e of an em"loyee to a!t and a!hiee(

8anfer @0. 5room's theory is one of the most widely used theories for resoling issues of!om"ensation and motiation(

E:P E;PECTANCY MODEL

'i2ur":*

COMPENSATION 5 COMMISSION BASED SALARIES

%hatta!haryya& Com"ensation Management( New Delhi: 1+ford Uniersity 7ress this term!om"ensation is basi!ally used on behalf of wages and salaries as !om"ensation now is iewedas the strategi! management of wages and salaries( It has be!ome ital for organi,ations tostabili,e both the !ost of !om"ensation and em"loyee motiation in order to retain bestem"loyees in the !om"etitie enironment( Aswatha""a @2.. stated Com"ensation as a key forem"loyees? it is one of the ital reasons for whi!h "eo"le work( 4m"loyee's status in the so!iety&satisfa!tion& trustworthiness and "rodu!tiity also de"ends on !om"ensation( %hatta!haryya&Com"ensation Management( New Delhi: 1+ford Uniersity 7ress #alary& "ay or !om"ensationre"resents the gie/and/take between the em"loyee and the organi,ation& both the em"loyee andthe organi,ation "roides something in return of something else and oer the "eriod the leel ofe+"e!tan!y both from em"loyers and the em"loyee's in!reases as em"loyers want theirem"loyees to "erform well and be highly "rodu!tie and em"loyees "er!eies fair !om"ensationin return( As "er Ameri!an Asso!iation @ACA& "( !om"ensation is !ash and non/!ash "aymentgien by the firm to its em"loyees( Com"ensation !an also be termed as the amount ofsalaryJreward that an em"loyee e+"e!ts from hisJher work( )orkfor!e is satisfied by the!om"etitie salaries "roided to them by their em"loyers in !ontrast of the "ay s!ales of otherem"loyees in the same se!tor or industry as they feel satisfied by attaining fair and e$uitablesalaries whi!h further motiates them towards their work(


11/23

*aylor @000 in his studies has em"hasi,ed that money is one of the most effe!tie fa!tors inen!ouraging and motiating the industrial workers to a!hiee greater "rodu!tiity( It was furtherba!ked by Akintoye @2... as in his studies he mentioned that money has always been the mostim"ortant motiational strategy( Hill B )iens/*uers @2..2 tells us the histori!al ba!kground ofin!rease in !om"ensation being one of the earliest strategies to motiate and retain em"loyees in

referen!e to firm's !ommitment(

*aylor @000 !om"ensation and "erforman!e based "ay is one of the im"ortant toolsmanagement had at its !learan!e to motiate em"loyees and to es!alate their out"ut and shrinkturnoer( Dulebohn& Ferris& B #todd @0> des!ribed in their studies that monetary returns haeim"eratie ins"iring "ower? it re"resents elusie goals like safety& !ontrol& esteem& and anemotion of a!hieement and i!tory( #in!lair& et al( @2..> also ado!ates !om"ensation as they!learly state that money has the influen!e to fas!inate& hold& and en!ourage em"loyees towardshigher "erforman!e( For instan!e& if an em"loyee has another ob offer& whi!h offers greaterfinan!ial rewards and has identi!al ob !hara!teristi!s with his !urrent ob& that worker wouldmost "robably be motiated to a!!e"t the new ob offer(

*aylor @000 studies show us that !om"ensation !an be differentiated on the basis of7erforman!e/based "ay and Non/"erforman!e based "ay& whereas %eard @0 in his studies hestated that !om"ensation !an be differentiated in to numerous "ortions( 1ne way is to breakdownit into three "ortions i(e(& Fi+ed/7ay& 5ariable 7ay and %enefits( *aylor's model fits best inindustrial units and manufa!turing units where labor is e!onomi!al and rewards or !om"ensationare dire!tly de"endent on indiidual "erforman!e whereas beard's model is utili,ed for years in!ommer!ial se!tor( 1ne of the !urrent resear!hes by 6i"inge et al @2.. fo!uses on finan!ial andnon/finan!ial in!enties as his studies !learly shows the im"ortan!e of both finan!ial and non/finan!ial in!enties as he refers non/finan!ial in!enties as a by"rodu!t of finan!ial in!enties(Cham"ion/Hughes @2..0 em"hasis on im"roement of work life !y!le that in!ludes e$uity in!om"ensation in order to maintain high "erforman!e of the indiiduals in order to kee" them

motiated towards their work and long time !ommitment with the organi,ation(

If we "ut together the work of *aylor @000 and %eard @0 the following model !an beformed !onstituting of three basi! !om"onents of !om"ensation&

*he 0st!om"onent is fi+ed "ay is !om"ensation where the salary is fi+ed and "ayments are!ertain @base "ay& seniority bonuses& 09th month& et!((

*he 2nd!om"onent is fle+ible "ay& whi!h in!ludes ariable salary and oerdue in!ome or deferredin!ome( V1ri1#"


12/23

*he s"!o>!onsists of mis!ellaneous remunerations and "riileges in the form of goods andseri!es su""lied at a redu!ed "ri!e& made obtainable& or ordered to em"loyees @!om"anyhousing& !om"any !ar& "riate usage of tele"hone& "ubli! trans"ortation "asses& et!(( *he 6?ir>in!ludes em"loyee welfare "rograms and entertainmentJ re!reational o""ortunities regardingti!kets for arious entertainment eents& family assistan!e& s!holarshi"s& et!( *he =our6?

!om"rises !orres"onding retirement "ension "lans and health insuran!e !oer "aid for by theem"loyer(


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'i2ur": ,

Benefts

*Vaatio!"

*Si# $ea%e

*Com&a!y

Ca'

*Com&a!y

(ou"e

*Se%e'a!e

Pay

*Media)I!"u'a!e

Flexible Pay

Variable Pay

*Commi""io!"

*Bo!u"e"

*+ai! S(a'i!,

Deerred

Income

*Em&)oyee

*Sto#

o-!e'"(i&

*P'ot S(a'i!

Perormance

Based Pay

.Ba"ed o! !e-

Ma!a,eme!t

&a'adi,m/

*Commi""io!"

*Bo!u"e"

*Sa)e" Peo&)e

*Piee Rate"

Sy"tem

.Sta!da'd (ou'

&)a!/

*Me'it Rai"e

Non

Perormance

Based Pay

.Ba"ed o! o)d

o!e&t -(e!

om&e!"atio!

-a"!0t tied to

&e'1o'ma!e/

*Mo!t()y Sa)a'y

*2ee#)y 2a,e"

Compensation

Perorman

ce Based

Componen

ts Based

Fixed Pay

*Ba"e Pay

*P'omotio!"

*Co"t o1 $i%i!,

I!'ea"e

*Me'it I!'ea"e

7erforman!e %ased 7ay #our!e: *aylor& F( @000

Com"onents %ased 7ay #our!e: %eard& 7( @0


14/23


15/23

A!!ording to 6uthans @2..> there are two basi! ty"es of "ay/for/"erforman!eE "lans?indiidual in!entie "lans and grou" in!entie "lans( Indiidual in!entie "lans hae beenaround for many years( *hey were "arti!ularly "o"ular during the height of the s!ientifi!management moement( Hodgetts @0G similar to the "ie!e rate in!entie "lan of the"ioneering s!ientifi! managers& today indiidual in!entie "lans also "ay "eo"le based on out"ut

or een $uality( Most sales"eo"le work under an indiidual in!entie "ay "lan earning whi!hbe!omes a key motiating fa!tor for em"loyees to "erform more in order to a!hiee high!ommissions(

%rown and Armstrong @2... argued that in!reasing "ayroll !ost and !om"ensation in the globalmarket "la!e hae !aused managers to sear!h for ways to in!rease "rodu!tiity by linking!om"ensation to em"loyees' "erforman!e(

%anker& 6ee& 7otter& and #riniasan @0 stated that the em"loyees' motiation to work harderand better is obiously an im"ortant fa!tor( A!!ording to them if "ay is tied to "erforman!e& theem"loyee "rodu!e a higher $uality and $uantity of work(

%usiness theorists 7rofessor ;asser and Dr )[email protected]. su""orted this method of "ayment& whi!his often referred to as 7R7( 7rofessor ;asser and Dr )asi belieed that money was themain in!entie for in!reased "rodu!tiity and introdu!ing the widely used !on!e"t of K"ie!eworkK( In addition to motiating the rewarded behaior& standards/based methods !an "roide aleel of standardi,ation in em"loyee ealuations& whi!h !an redu!e fears of faoritism and makethe em"loyerKs e+"e!tations !lear( 4m"loyees would be se!ure in knowing that their "erforman!ewas ealuated obe!tiely a!!ording to the standard of their work instead of the whims of asu"erisor& or against some eer/!limbing aerage of their grou"(

Risher and Howard @0 a!!ording to them there are two basi! ways to set !ommission( 1ne isa flat !ommission( *his is usually a "er!entage on any sale the re"resentatie makes( %usinesses!an also use a ram"ed !ommission& where the "er!entage of !ommission rises as sales

re"resentaties hit !ertain targets( For e+am"le& the re"resentatie may earn a 0. "er!ent!ommission on the first >.&... worth of goods or seri!es& a 0> "er!ent !ommission on the ne+t>.&... and a 2. "er!ent !ommission on anything aboe 0..&...( Ram"ed !ommission mayalso be based on targets& su!h as a 0. "er!ent !ommission on any sales u" to a set target& then a2. "er!ent !ommission on any sales after that( It motiates em"loyees to sale more to earn more(

#!huster and 3ay R @ 02 tells the im"ortan!e of !ommission based salaries as the ado!ate thatthe "rimary reason !om"anies "ay !ommission "ay "lan is to motiate em"loyees toward betterresults and to reward high "erformers( If you "ay salesmen a straight salary& some may haelimited motiation to e+!eed basi! e+"e!tations( Howeer& by adding !ommission/earningo""ortunity& !om"anies drie salesmen to set more aggressie goals& to work through obsta!les

and ree!tion& and to !ontinue to "ros"e!t and seek new selling o""ortunities(

Colletti and 3erome @0 em"hasis on the fa!t that if the balan!e of stability and in!entie to"erform at a higher leel has a ni!e balan!e of benefits from both straight salary and straight!ommission( *he key is to offer ust enough stability that em"loyees feel satisfied with theirbasi! finan!ial se!urity but still hae motiation to sell more to earn more(


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,, CONCEPTUAL 'RAMEWORK

In our study we are !losely fo!using on em"loyee motiation and its im"a!t on "erforman!e&s"e!ifi!ally our resear!h talks about motiation of sales "eo"le fo!using on e+trinsi! motiatingfa!tor su!h as !om"ensation& based on "erforman!e based salary system through whi!h they earn!ommissions and its im"a!t on em"loyee "erforman!e whether they a!hiee their targets or notin order to measure "ositie or negatie "erforman!e( 1ur study reoles around two ariablemotiations being the inde"endent ariable and "erforman!e being the de"endent ariable(

MOTIVATION

C1M74N#A*I1N

COMMISSION

BASED

IN*RIN#IC

74RF1RMANC4

BASED

4O*RIN#IC

C1M71N4N*#

BASED

PER'ORMANCE

*AR


17/23

,3 RESEARCH @UESTION

)hat is the im"a!t of em"loyee motiation on "erforman!e based on !ommission based salariesP

,- HYPOTHESIS

HoCommission based salaries hae no im"a!t on "erforman!e(

HACommission based salaries hae "ositie im"a!t on "erforman!e(


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3* RESEARCH METHODOLOGY

1ur resear!h is basi!ally an a""lied resear!h& !orrelation in nature( *he raw data was "ooledthrough !ondu!ting surey( *he study was !ondu!ted on em"loyees working as sales e+e!utiesearning !ommissions on their base salaries u"on the sales they make in arious organi,ations of

8ara!hi( *he study was !arried out with the hel" of $uestionnaire( *he $uestionnaire was"resented oer to the res"e!tie res"ondents in order to test their "er!e"tions as sales e+e!utiesregarding the im"a!t of em"loyee motiation of "erforman!e based on !ommission basedsalaries( Analysis was then run on "er!eiing that there is no im"a!t of em"loyee motiation of"erforman!e based on !ommission based salaries *he a""ointments were made with differentem"loyees in an organi,ation that were sele!ted for sam"ling with referen!e of #=A%I#*8ara!hi(

3, SAMPLING TECHNI@UE

*he sam"ling "ro!edure that was !arried in this study& to rea!h res"ondents was non/random and

was based on resear!her's !onenien!e( *he !hoi!e of organi,ations de"ended u"on !onenien!eand the res"ondents @#ales 4+e!utie were also sele!ted on !onenien!e basis(

33 SAMPLE SI&E

*he anti!i"ated sam"le si,e of this study is a""ro+imately -. res"ondents(

3- INSTRUMENT O' DATA COLLECTION

*ool used to "ool in data in this resear!h was a uestionnaire that !onsisted of stru!tured$uestions on multi"le !hoi!e $uestions( 4ery res"ondent was "resented a $uestionnaire to

re!ogni,e alternatie res"onses( uestionnaires !onsisted of !lose/ended $uestions some ofwhi!h $uestions were asso!iated to their "er!e"tions and "ra!ti!al e+"osure(

3. STATISTICAL TECHNI@UE

*he motie of this study is to understand the im"a!t of em"loyee motiation on "erforman!ebased on !ommission based salaries& as re"orted by the res"ondents(

*he statisti!al "ro!edure used in the following resear!h is to !he!k the im"a!t of em"loyeemotiation on "erforman!e based on !ommission based salaries( Initially reliability of the datawas !he!ked using Cro1!?s A#


19/23

-* DATA ANALYSIS

'i>i2s 1> A1#$sis o= R"su#6s

R"#i1i#i6$ S616is6i!s

Cronba!hKs Al"ha

Cronba!hKs Al"ha

%ased on

#tandardi,ed Items N of Items

(G. (G-- 02

TABLE*

*he table aboe shows the statisti!s for the reliability of the data& where the alue of Cronba!h'sAl"ha is (G.& whi!h is more than (G& whi!h is a standard to !he!k the reliability of the data(


20/23

D"s!ri (G -.

Commissions earned by

me motiates me a lot

0(> (- -.

Commissions motiate meto a!hiee my sales target

whi!h refle!t my

"erforman!e

2(.. (G>0 -.

Commissions in!reased

"erforman!e im"roed

0(9 (2 -.

Re!eiing !ommissions

motiates me to "erform

better work

0(> (9- -.

TABLE ,

Aerage Mean: 0(>

Considering the table aboe showing the des!ri"tie statisti!s of the data shows us theres"ondents @sales e+e!utie are motiated by !ommission based salaries whi!h im"roes their"erforman!e& whi!h is eident from the aerage mean of the total data(


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-, HYPOTHESIS ASSESSMENT SUMMARY

All the aboe res"e!tie out!omes re!ommend that there is a "ositie im"a!t of em"loyee

motiation on "erforman!e based on !ommission based salariesE( *his also shows that e+trinsi!finan!ial motiational strategies motiate an em"loyee who im"roes the "erforman!e of salesem"loyees and affe!t their "erforman!e "ositiely(

.* CONCLUSION

*he study illustrates that there is a "ositie im"a!t of em"loyee motiation on "erforman!e based

on !ommission based salaries( *hus we ree!t our "ro"osed null hy"othesis @Ho that is there isno im"a!t of em"loyee motiation on "erforman!e based on !ommission based salaries anda!!e"t our alternate hy"othesis @HA that is there is a "ositie im"a!t of em"loyee motiation on"erforman!e based on !ommission based salaries whi!h is eident by the res"onses of ourres"ondents(

., DISCUSSION

4en though as this resear!h was only !ondu!ted in 8ara!hi only and ery few res"ondents weretaken under !onsideration from fie organi,ations& hen!e these results !ontain biasness and may

not be a re"resentatie of the whole "o"ulation( #e!ondly the "oliti!al !orre!tness that "eo"leada"t in order to res"ond to $uestions related to their basi! ob fun!tion and both the "er!e"tionsof em"loyees and organi,ation might also hae influen!ed the results of the resear!h(

.3 IMPLICATIONS


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*he results are seemingly alarming for the organi,ations in 7akistan as they need to motiatethere sales for!e by "roiding them with enough !ommissions in order to motiate them so thatthey !an "erform "ositiely(

.- 'UTURE RESEARCH

1n these grounds& we beliee that further resear!h in the area& with lesser biases might bringdifferent results( A"art from that basi! statisti!al te!hni$ues were a""lied to !arry out resultswhi!h !an be im"roed if further im"roed statisti!al te!hni$ues are a""lied whi!h !an !hangethe "aradigm of the resear!h all together(

RE'ERENCES

Carolina& M( @2.0.( *he im"a!t of a reward system on em"loyee motiation in Motonet/4s"oo(

Frederi!k& H(& #mith& M(& B Hansen& R(%( @2..2( Rewards and Re!ognition in 4m"loyeeMotiation(


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Isaa!& R(& =erbe& )( B 7itt& D( @2..0( 6eadershi" and motiation: the effe!tie a""li!ation ofe+"e!tan!y theory(Journal of "anagerial Issues, 13 @2& 202/22(

8ehinde( A& 1(& @2.02( 4ffe!t of Com"ensation #trategy on Cor"orate 7erforman!e( Resear!hJournal of #inance and $ccounting, Vol. 3, 2222-1%&'.

8han& )(& B 4ngr( Mufti& 1( @2.02( 4ffe!t of Com"ensation on Motiating 4m"loyees in 7ubli!and 7riate %anks of 7eshawar @%18 and U%6(Journal of Basic ( $))lied Science *esearch&5ol( 2@>& -0/-29(

Ri!hard& M(& B 4dward& 6( @2...( Intrinsi! and 4+trinsi! Motiations: Classi! Definitions andNew Dire!tions( Contem"orary 4du!ational 7sy!hology 2>& >-G( )eb site:htt":JJwww(idealibrary(!om

+ar, ., 2010/. *he Influen!e of Com"ensation on 7erforman!e of #ales Re"resentaties of7harma!euti!al Com"anies %ased in Ilorin Nigeria( $n International "ulti-isci)linar

Journal, thio)ia, Vol. 34/, 2.G./..9& 5). 223-23&/.

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