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Abstract
This topic of study is concerned with deducing the role of performance and rewards in influencing the organisational performance and overall job fulfilment among employees in Saudi Research and Publishing Company. Using a quantitative approach, the study delves into understanding the various aspects of motivation in relation to overall job satisfaction in Saudi Research and Publishing Company. Areas under consideration include the linkage between intrinsic and extrinsic motivators, extent of satisfaction in the job, the perception of the managers and employees of human resources management, the association between the level of satisfaction of the employees with aspects of demography and finally the connection between motivation and satisfaction in the work environment.
Self-administered questionnaires and interviews proved useful in data collection. The questionnaire comprised several parts with keen interest on collecting information on variables such as demographic data on age, administrative level, job title and length of service. In addition, the extent of utilisation of intrinsic and extrinsic motivators, level of job satisfaction and an assessment of the perception and understanding of human resources was carried out. The researcher distributed 100 questionnaires with a return rate of 92% (92 questionnaires). To decipher the role of performance and rewards on organisational performance, the researcher conducted 10 interviews among the employees and managers.
A more significant application of extrinsic motivators was observed in the organisation when compared to intrinsic motivators. Similarly, the study found a high level of job satisfaction and understanding of human resources management in the Saudi Research and Publishing Company. In addition, age, duration of service and title of job had a positive relationship in relation to aspects of job satisfaction. Limited association was found between the administrative level and job satisfaction. Finally, a strong association between motivation and the level of job satisfaction was exhibited in the company. Rewards and performance were found to positively influence performance evaluation in the company.
Introduction
Background and Significance
Considering the competition from an increasing number of companies in the present day, it is vital for a company to pursue new strategies in order to remain successful and strong in the business market. This is also achieved by attracting rare skills and raising the degree of loyalty and feeling of belonging to the organisation in order to ensure their survival for long periods. This brings us to the conclusion that, together with the advancement of technology, it is the intellectual mind (human resource) that is the basis of success in any organisation.
Human resource management (HRM) is at the heart of any organisation and should be given the highest consideration within an organisation. HRM plays a major role in the success and development of organisations besides other strategies (Mathis and Jackson, 2007, p. 45). This indicates that the labour force has a direct effect on an organisations performance. Human resources can be categorised into four classes. These include employment and recruitment, human resource development, performance appraisal and incentives, and relationship with management staff. Each of these sections plays a very important role in building and improving staff capabilities (Rothwell and Kazanas, 2003, p. 138).
In my opinion, performance evaluation and incentives is one of the most important posts in the Department of Human Resources, even though it can be either frustrating or stimulating (Bratton and Gold, 2001, p. 78). Through performance evaluation and incentives, an organisation benefits from increased efficiency and loyalty from its employees which in turn improves the rate and consistency of production within the organisation. Ongoing evaluation leads to constant correction culminating in improved channelling of the organisation (Wiersma, 1992, p.67). Evaluation aids in identifying employees strengths and weaknesses which can help to make the best use of this resource.
Based on the above, performance evaluation and incentives are important means in the development of employee performance within the organisation. Assessment of performance should follow the established procedures which are aimed at stimulating and evaluating the organisation. According to my personal experience of the business market in Saudi Arabia, a large proportion of companies neglect the aspect of evaluation. A large number of companies are mainly concerned with the profits that might be achieved. However, a lot can be achieved through planning and giving full consideration to the various aspects of the organisation (Ballon, 1993, p. 89). The role of human resources which includes performance assessment should be given more emphasis. This research attempts to study the press sector in Saudi Arabia as it is an emerging sector that is more open and spread abroad. An explanation of the meaning of human resources and performance evaluation and incentives are given. In addition, the impacts of performance appraisal and incentives on various organisations in Saudi Arabia will be evaluated.
Research questions
The research will review the following questions:
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Q1 What is the meaning of human resources management in Saudi Arabia?
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Q2 What are the roles and powers of human resources management?
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Q3 What is the meaning of performance appraisal and incentives?
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Q4 What are the grounds and rules of performance appraisal in Saudi Arabia?
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Q5 What kind of incentive has the greatest impact on the employee?
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Q6 How does performance evaluation impact on the performance of an organisation?
Aims and objectives
This study will focus particularly on companies in Saudi Arabia with the objective of improving and enriching performance appraisal. This will be attained through search assessment and its impacts on organisational performance in Saudi Arabia. It will also explore the methods of evaluation and incentives in Saudi Arabia as well as identify the role of human resources management and competence in general in Saudi Arabian companies. Saudi Arabia is a developed country whose systems are in their maturing phase. The research will evaluate how performance evaluation can be used as a tool to develop the countrys economy. An exploration of whether the impact of evaluation on various organisations in the market is either positive or negative will be conducted.
Rationale / justification
Assessment of the performance of companies in Saudi Arabia has been largely neglected. This has led to low achievement of the organisations. Through this research, the researcher will show the importance of performance evaluation. Companies in Saudi Arabia have started to pay more attention to HRM but only as the name of one department among all other company departments. Without realising the importance of this administration and its branches in the development of the performance of the organisation as a whole, the researcher will try to clarify how performance appraisal and incentives are important in changing the performance of organisations.
The press sector in Saudi Arabia was chosen due to its importance to the economy. As a growing economy, a strong press sector can aid Saudi Arabia to achieve its development goals easily. Saudi Research and Publishing Company (SRPC) was chosen as a case study as it has emerged as a strong company that has opened branches in several countries. For example, the company has opened branches in London.
Research methods
The Saudi Research and Publishing Company (SRPC) is considered, due to the fact that it is among the largest companies in the press sector, that is, an integrated company in terms of newspaper publications, printed and distributed. The SRPC issued the Asharq Al Awsat, which was the first newspaper in Saudi Arabia. In addition, it was the first to be distributed outside the Kingdom. The company has strong authority in the press sector in the country as well as the strongest brand position. The press is service-oriented and depends highly on human resources. The attitude of workers towards their duties, their motivation and satisfaction are core to a press performance. The case study seeks to determine the relationship between human resource appraisal and workers morale and satisfaction in the Saudi Research and Publishing Company (SRPC).
The data in this research is from a sample study so as to cut cost and research time. A referendum has been used since the information required is specific and narrow. Unstructured interviews with a sample of workers in the Saudi Research and Publishing Company were used in collecting the data. Open-ended questions were used in the interview to allow detailed information. The sample of workers was obtained from company branches in Saudi Arabia. The sample size considered in the study is a hundred participants for the questionnaire. Ten participants are considered in the interviews. Four of them are managers while the rest are employees of the company. Information from the chosen region is sufficient. This research focuses on a particular group of people from which extensive information is not required. As discussed above, the sample is from the press sector in Saudi Arabia. Saudi Research and Publishing Company is the case study.
Research structure
The research structure is as follows:
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Chapter one: This chapter comprises the importance of the research, the target, the context of the research and research questions.
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Chapter two: This chapter focuses on background and literature review in human resource management and how they influence performance evaluation and reward. Hypothetical relationship between reward and workers loyalty will is reviewed.
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Chapter three: This chapter contains the concept of motivation and satisfaction the motivation and satisfaction in the private sector in Saudi Arabia.
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Chapter four: This chapter focuses on the research methodology, the objectives of the research, justification for conducting the research, design of the research and data collection. The chapter also looks into the validity of the data collected and problems faced in conducting the research.
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Chapter five: This chapter offers an analysis of data collected in the research. The analysis is based on a conceptual structure and literature review.
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Chapter six: This chapter details the conclusions from the research. The chapter summarizes the findings from the conducted research, compares the findings with the theories and conceptual framework and gives a stand.
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Chapter seven: This chapter constitutes recommendations from the research. The chapter applies the findings and conclusion to human resource management in Saudi Arabia. The chapter offers a way forward towards implementing performance evaluation and rewards and how it can be used to improve employees loyalty and satisfaction.
Summary of the Study
The first chapter: provides a general overview of motivation, performance, rewards and job satisfaction which comprise the importance of this topic, and why the researcher was interested in it. Furthermore, the research context is defined as the Saudi Research and Publishing Company. Generally, the research objectives and questions are designed in a systematic way in order to help in the examination of the motivation and job satisfaction in the Saudi Research and Publishing Company.
The second and third chapters provide an insight into the literature review of motivation and job satisfaction that has proved pivotal in availing different perspectives of authors in the study of the role of performance and rewards. More importantly, a variety of definitions of motivation are discussed with the divergent and concurring choices of modern and earlier authors serving as the basis of the presentation. Definitions are overly centred on factors that enhance, energise and channel human behaviour over time. Despite wide criticism of the motivation theories from many quarters of research, previous studies have denoted their unique and key role and their applicability in the modern business environment.
In addition, the chapter presents an in-depth review of the concept of job satisfaction based on dissimilar views of authors, with its related factors and its measurement. In tandem with previous studies, emphasis on the description of the relationship between motivation and job satisfaction has been covered immensely. Looking at current and past scenarios in the private sector reveals that motivation and job satisfaction have more pertinent differences than similarities with the public run utilities. With regard to Arabian culture, performance, rewards and job satisfaction are analysed and discussed to bring the overall impact to the productivity of the employees and organisational performance.
The fourth chapter covers the research methodology with particular interest in bringing out the procedures and ways that were utilised in carrying out the research thus resulting in the achievement of the objectives. Application of descriptive research is given priority with a systematic incorporation of positivist philosophy while ensuring the overall implementation of the deductive approach. A simple survey design is selected and supplemented with quantitative methods for collection and analysis of the collected data. Two sets of questionnaires were designed to be utilised in self-administration and interviews. The self-administered questionnaire was broken down to three major parts through the help of a Likert scale and was pivotal in assessing the attitudes. An open-ended questionnaire was utilised for the interview with a section of the employees and the managers. More importantly, the translation technique and the procedures used in carrying out the pilot study are explained. The study targeted a total of 100 subjects to whom a study questionnaire was administered to. In this case, 92 of the respondents completed the questionnaires successfully. Furthermore, 10 interviews were conducted with 6 employees and 4 managers. On analysis, a description of SPSS aided in the analysis of the quantitative data collected using the self-administered questionnaire while qualitative methods played a major role in compilation of the data collected from the interviews.
The fifth chapter explains the applicability of the variables in relation to the internal reliability of the instrument. An overall presentation of the descriptive statistical method for personal information of employees is given, while offering candid explanation on why the extrinsic motivators were put into practice regularly when compared to intrinsic motivators by the Saudi Research and Publishing Company. In view of the above explanations, a significantly high degree of satisfaction was reported within the ranks of the employees. Analysis of the variables denotes the existence of correlations between age, job title and length of service with job satisfaction. On the other hand, minimal or no correlation was found to exist between administrative levels in relation to job satisfaction. The study further observed a positive relationship particularly between the overall motivation and job satisfaction in the Saudi Research and Publishing Company. More importantly, performance evaluation of the company was found to be bolstered by the introduction of incentives and rewards in the company. Performance was also enhanced by increased job satisfaction in the employees.
The sixth chapter presents the discussion of the finding in accordance with the research objectives. A presentation of the association between the study results in tandem with the literature discussed is hereby put in perspective. From the association, it was overly observed that the study findings are in concurrence with past studies that stipulate that cultural factors influence performance levels of employees thereby impacting on the organisational performance. In order to improve the organisational performance and the motivational attributes of the employees, it becomes imperative to integrate the recommendations of this study in the culture and institutional framework of the organisation.
Plan of the study
The proposed timetable for completing this research is as follows:
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Revise literature review and proposal. Write the questionnaires and interview questions to be distributed. (July)
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Collect information personally. May be required to go to Saudi Arabia for the distribution and collection of the questionnaires and do the interview. (August)
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Analysis of data. (August)
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Write the draft and deliver to the supervisor. (September)
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Submit the ultimate draft. (September)
Literature Review
Introduction
Human resources are one of the most important resources for an organisation. It is a fact that human resource management has a great influence on the performance of an organisation. Various scholars have addressed human resource management strategies and how such strategies can be applied in various aspects of management. Diverse points of view provide great insight into human resource management.
A highly competitive business environment calls for highly creative business strategies. In this competitive environment, human resource management is viewed as one way of gaining competitive advantage over other competitors (Skinner, 1953, p. 278). According to Huselid (1995), a competitive business environment has forced organisations to explore progressive human resource management strategies. From the author, progressive human resource practices such as employee participation, job redesign, employee empowerment, training and good employee evaluation and compensation are being used to improve organisations performance.
According to Delaney and Huselid (1996), human resource management has a great direct influence on the overall productivity of an organisation. According to these authors, if proper human resource management practices are used, the organisation is assured of high performance and has a higher likelihood of meeting its goals. Among human resource management practices that they identify are job analysis, training, good employee appraisal and compensation (Ichniowski, Shaw and Prennushi, 1997, p. 21).
Employees attitude
Attitude is a major issue in employees performance. Individuals attitudes have been studied over a long period of time and there is a variety of literature on the subject (Ajzen, 2001, p. 29). There are various definitions of attitude. Ajzens definition is the most popular. According to this author, attitude is the inclination to react in either a favourable or unfavourable way towards an object of attitude (Ajzen, 1982, p. 4). From literature, it is evident that attitude plays a big role in determining the social behaviour of an individual (Podsakoff and Organ, 1986, p. 533). Poor attitude towards something leads an individual to have an unfavourable reaction while good attitude motivates an individual to respond in a favourable way.
The literature shows that attitudes in workplaces are manifested in various forms. According to Liberman and Chaiken (1996), employees could show different attitudes towards various aspects in the workplace. Some of the aspects they suggest where employees show different attitudes include benefit received, work itself, supervision, hindrance to their work and other aspects (Liberman and Chaiken, 1996). According to Tosi and Mero, the attitude towards various aspects of the workplace may have a great influence on the overall performance of a company (Tosi and Mero, 2003, p.37). According to them, attitude in the workplace can be classified into two categories: attitude towards work and attitude towards barriers to work. Attitude towards work constitutes the level of workers motivation, satisfaction, involvement and commitment to work. On the other hand, attitude towards impediment of work constitutes the attitude towards the barriers that result from a workplace (Tosi and Mero, 2003, p. 37).
There is ambiguity with regard to understanding of attitude in different areas. The definitions of attitude differ significantly in psychology entrepreneurship marketing and innovation. Despite the differences, there is an agreement that attitude is an important factor in performance. According to ODriscoll and Randall, employees who have positive attitude towards their work are more likely to involve themselves in their work (ODriscoll and Randall, 1999, p. 611). According to Randall, such workers are also more likely to commit themselves in their jobs. Attitude towards work is also closely related to attitude towards an organisation. According to Armeli and Lynch, attitude towards a job (Eisenberger and Rhoades, 2001, p. 731) or a particular aspect of a company affect the general attitude towards the whole institution (Eisenberger et al., 1997, p. 813).
Human needs
Human beings have a variety of needs to be fulfilled. Lyndsay Swinton (2006) reviews how Maslows hierarchy of need compares to Herbergez theory. Maslows theory offers a hierarchy of needs that each individual seeks to fulfil in their lives. The hierarchy includes the psychological needs at the base of the hierarchy, need for security, social esteem and need for self-actualisation. According to Swinton, workers motivation and satisfaction can be fulfilled through Herbergezs hygiene factors in workers whose need falls below esteemed needs (Swinton, 2006, para. 5). Herbergez hygiene factors include benefits, salary, job security and company policy among other basic factors. According to Swinton, dealing with employees whose needs are above esteem requires other factors, which she refers to as motivators. These motivators include employee achievement, recognition and a growth programme (Swinton, 2006, par 7).
Employees self-actualisation hierarchy of needs cannot be satisfied by basic compensation and rewards such as salary but requires other motivation that gives them a sense of self-worth. The relationship between these two major theories of management gives an important foundation for managing human resources and other operations in an organisation. According to Ajzen, close examination of the needs in an organisation is important for creating a reward system that is effective on employees (Ajzen, 2001, p. 31).
Managing human resources in organisations
In a research on managing knowledge in organisations, Kridan and Goulding emphasise the importance of managing knowledge in the organisations. According to these authors, proper management of knowledge can assist any institution to be more competitive. They stress the importance of a performance evaluation and reward system that takes into consideration not only the psychological needs of the organisations employees but also their higher needs. According to Kridan and Goulding (2006, p. 17), human resources are central to banking institutions and should be given a lot of attention. They state that good knowledge management can help to improve decision making in an organisation, improve relationships between employees and customers, improve value to customers and motivate innovations that can improve the value of services.
The press is service based. Being service based, the interaction of press employees with customers forms the foundation of the service. Poor motivation in employees can lower services and, in consequence, have a negative effect on any institution. In a research on the banking sector in India, Sureshchandar, Anantharaman and Rajendran give an insight into factors that affect quality of services in banking institutions (2002, p. 185). According to these authors, there is a big difference in how different banks apply quality systems banks in India can be divided into three groups depending on how they perceive total quality service in their operations.
Although human resources are among the most important resources for the success of any organisation, they are frequently not accorded the importance they require. According to Barney and Wright, decisions by some organisations often contradict the fact that human resources are an important asset to an organisation (Barney and Wright, 1997, p. 19). As an important asset to organisations, human resources should be managed in a way that brings about benefits to the organisation. According to Barney and Wright, giving human resources the attention that they require can help to increase the competitive advantage of an organisation. They stress that organisations should manage human resources with equal importance as is given to other resources.
Applications of various human resource management practices increase the competitive advantage of an organisation. Huselid emphasises the importance of using high performance work practices in an organisation (Huselid, 1995, p. 639). According to this author, high performance work practices include incentive compensation, comprehensive employee recruitment, performance management, involvement programmes and training help to increase employees competence. In addition, these practices help to enhance employee motivation and loyalty. According to Huselid (1995, p. 951), the result of applying high performance work practices is high employee retention as well as reducing low-performing employees.
Employees compensation and reward
Employee appraisal, compensation and rewards have a great influence on employee motivation. In an article on compensation motivation, Thomas Catanzaro gives various effects of compensation on workers motivation. He asserts that compensation has a great influence over motivation in employees (Catanzaro, 2004, para. 2). Catanzaro discusses the role of various aspects of compensation in motivation of employees. He considers the effects of both intrinsic and extrinsic compensation on workers motivation and loyalty and satisfaction. According to him, the kind of compensation can have either a positive or a negative effect on an organisation. He stresses that monetary value should not be the only motivator but non-monetary motivators should be considered as well.
Accordingly, compensation differs in different countries. According to Chiu, Luk and Tang (2002, p. 78), base salary, year-end bonuses, cash allowances, merit pay, profit sharing and mortgage loans are the major motivators in Hong Kong.
Reward and recognition can be major factors in motivating employees and improving performance and loyalty to an organisation (Chiu et al., 2002, p. 81). According to Milne, team-based incentives can be used to influence employee motivation and performance (Milne, 2007, p. 156). In addition, according to the author, promotion and wages influence employee motivation positively when properly used. Fair promotion and wages, according to a comparison on strength and weakness, is a major factor in employee motivation and loyalty and satisfaction. According to this comparison, fair compensation and promotion improve performance more than levered compensation (Milne, 2007, p. 157).
According to Takahashi (2006, p. 79), the motivating elements of employees should be considered before considering using rewards. However, according to the comparison, the motivational preferences of employees vary over time. Wiley (1997, p. 138) claims that monetary rewards to employees create the message that an organisation appreciates contributions from its employees.
Conclusion
From the literature review, it is evident that human resource management is one of the major determinants of an organisations performance. Human resources management techniques such as recruitment, training, evaluation, compensation and rewards have direct influence on organisation performance. Ability to apply these techniques for the benefit of an organisation constitutes good human resource management.
Motivation and Job Satisfaction
Introduction
Employees motivation and satisfaction in the job are some of the factors that determine the success of an organisation (Harrell, 1958, p. 85). Motivation and satisfaction while working are especially important in the press industry. Employees in a press company have to be highly motivated for them to be involved in the required task of searching for information, reporting and in some cases being involved in life threatening situations. Another aspect in this field is that employees have to be able to find job satisfaction in their work for them to be productive. This chapter will review the concepts of motivation, job satisfaction, motivation theories, relationship between motivation and aspects of job satisfaction. The researcher will also review other studies and scholarly publications on motivation and job satisfaction particularly in Saudi Arabia.
Motivation as a concept
Employee motivation is an important aspect of management. Although motivation is widely talked about in management, its level of understanding is limited with its practice fairing poorly (Locke and Latham, 2004, p. 307). As an abstract concept, motivation involves various strategies and may give different outcomes at different times. Although there is agreement that motivation is important, there is disagreement on the best way to motivate individuals. A motivation strategy that works for a certain individual or group of individuals does not necessarily work on other individuals. Motivating workers is mostly a challenging task (Vecchio, 1991, p. 108; Statt, 1994, p. 68). One of the main reasons that make workers motivation challenging is the fact that different individuals respond differently to motivation actions.
Despite different response to motivation, many scholars agree that creating a positive working environment is the most effective way of motivating employees (Buera and Glueck, 1979; Locke and Latham, 2004, p. 273; Kadushin and Kulys, 1995, p. 973). It is also widely accepted among researchers on workers that high workers motivation leads to high productivity (Buera and Glueck, 1979, p. 79; Cook and Hunsaker, 2001, p. 103). Halepota (2005, p. 37) asserts that although some level of workers motivation can be achieved through appropriate steps, it is very difficult to motivate all workers as different individuals respond differently to motivation actions. Although he agrees that motivation is challenging to achieve, he recommends it over authority (Bobic and Davis, 2003, p. 413; Fincham and Rhodes, 1999, p. 276).
He explains that although use of authority can influence behaviour, motivation is a better alternative as it influences behaviour in a less threatening manner. Arnold (1988, p. 892) explains that what is required in motivating workers is quality of action rather than the number of steps (Arnold et al., 2005, p.137; Kadushin and Kulys, 1995, p. 981). Locke and Latham (2004, p. 367) give a deeper explanation of motivation by saying that it is achieved through external and internal factors that act as incentive to a desired result. They explain that motivation influences direction, duration and intensity of an action. In the workplace context, they explain, w
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