HRMT20024: Motivation, Rewards, Compensation & Performance Review

This presentation provides a review of an article titled "The effect of compensation, motivation of employee and work satisfaction to employee performance PT. Bank XYZ (PERSERO) TBK." The article, published in the Academy of Strategic Management Journal, investigates the impact of compensation, motivation, and job satisfaction on employee performance within a bank setting. The study uses a quantitative approach, surveying 346 non-managerial employees. Key findings indicate that compensation significantly influences employee motivation, job satisfaction, and overall performance. The article concludes that effective compensation systems should be fair, attractive, and motivating, while also emphasizing the importance of employee growth opportunities and performance-based rewards. The presentation connects the article's findings to the broader topic of motivation, rewards, and compensation, highlighting the need for realistic performance appraisal systems and a supportive work environment.

HRMT20024 Assessment 1
Week xxx
Week 10 Motivation, rewards and
compensation
Name:
Student number :
Campus:
Lecturer/tutor :

◦ The title of the article is “The effect of compensation, motivation of
employee and work satisfaction to employee performance PT. Bank
XYZ (PERSERO) TBK “ .
◦ It was published in the Academy of Strategic Management Journal.
◦ The study was conducted by Sudiardhita , Mukhtar , Hartono,
Herlitah, Sariwulan, Nikensari .
◦ All of them belonged to Universitas Negeri Jakarta (Sudiardhita et
al., 2018).
Article Title and full reference

 The aim of the article is to determine the effect of
compensation , encouragement and satisfaction on the
performance of the workers of the bank.
 The research question is aimed at evaluating the theory that
if compensation , satisfaction and motivation creates a good
effect on the growth of the employees.
Article - objective

 The data was gathered using the survey method and a
questionnaire through the primary data collection
methodology .
 Statements were given to individual respondents and the
results were assessed using the quantitative research approach
emphasizing on the numerical evaluation of the data.
 The research was conducted on a sample of 346 respondents
employed on non managerial posts working at 24 branches in
the region of Regional Office 1 of the bank.
Article - method

 The findings of the research are that compensation has a good
and significant impact on motivation , job satisfaction and
performance of the employees.
 The study discusses that if the employees are paid higher
compensation , then they would be highly motivated in
carrying out their assigned responsibilities.
 Furthermore increase in the motivation enhances the
level of job satisfaction and performance of the employees
(Kuvaas, Buch, Weibel, Dysvik & Nerstad, 2017).
Article - findings

 The study concludes by saying that an efficient compensation
system should be fair, attractive ,motivating and competitive.
 There should be a policy for improving the employee
motivation .
 It contributes to the body of knowledge by stating that the
employees must have the opportunity to grow in their
careers and to achieve the awards for their performance and
loyalty .
Article - conclusion

 The article suggests that there should be realistic ,
measurable , achievable and reliable performance appraisal
systems .
 These criteria should determine the performance by
evaluating the efficiency ,timeliness and quality of the work.
 The management should provide challenging work
environment with good job security systems and proper
equipment for work so that the performance of the employees
can be measured(Malik, Butt & Choi, 2015).
Article – how does it contribute to
this week’s topic

 Kuvaas, B., Buch, R., Weibel, A., Dysvik, A. & Nerstad, C. G. (2017). Do
intrinsic and extrinsic motivation relate differently to employee
outcomes?. Journal of Economic Psychology, 61(2017), 244-258.
 Malik, M. A. R., Butt, A. N. & Choi, J. N. (2015). Rewards and employee
creative performance: Moderating effects of creative self‐efficacy, reward
importance, and locus of control. Journal of Organizational Behavior,
36(1), 59-74.
 Sudiardhita, K. I., Mukhtar, S., Hartono, B., Herlitah, Sariwulan, T. &
Nikensari, S. I. (2018). The Effect of Compensation, Motivation of
Employee and Work Satisfaction to Employee Performance PT. Bank XYZ
(PERSERO) TBK. Academy of Strategic Management Journal, 17(4),1-14.
References