Page 1 of 9

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 06

July 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 280

“An Assessment of Measuring and Improving

Managing Performance through Rewards at Koya

University - Kurdistan Region / Iraq”.

Zana Majed Sadq

Department of Management Faculty of Humanities and Social Sciences Koya University

Park, Daniel Mitterrand Boulevard. Koya - Iraq

Abstract

An organisation’s success depends on its

ability to provide an adequate reward to

motivating and encouraging its employees.

The fairly employees rewarded then they will

most likely to perform better. Thus, this study

empirically attempts to examine the impacts

of rewards on improving employee

performance, as well as to determine the

principles of effective approaches to

performance management at the Koya

University Kurdistan Region/Iraq. A

questionnaire distributed through employees

and 72 employees responded to the

questionnaire. The data obtained from the

questionnaire analysed quantitatively using

SPSS program version 20. The results from

this study revealed that there is a significant

positive but weak relationship between merit

pay, non monetary, salary, benefits, and

employee needs, and performance of the

employee. Negative relationship exists

between bonus and incentives and employee

performance.

Keywords: Employee Performance, Rewards,

Employee Commitment, Motivation,

Organisational Performance.

Literature review:

Human resource acts like a crucial role in

influencing the success of organisations, and

it is a procedure of acquiring, appraising,

training and compensating employees

(Armstrong, 2009). In fact, in today's global

business environment, to attain a competitive

advantage it is essential that organisations

focus on their tangible assets, such as

employees. Employees are the most

significant asset of an organisation. It is the

centre and the minds of individuals, rather

than their hands that are necessary for

enlargement and success of an organisation

(Dessler, 2011).

One of the best methods to improve employee

performance and motivate them is to reward

good work. The reward is one of the most

challenging methods to recognise the most

appropriate work and to implement it in such

a way that the business benefits. The rewards

Page 2 of 9

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 06

July 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 281

system provides the major contingent feature

in keeping individuals’ self respect high and

passionate (Danish, 2010). Moreover, rewards

can be intrinsic or extrinsic. Intrinsic rewards

are psychological (non-monetary) rewards

such as; promotion, appreciation, social

activities, training and development,

feedback, vacation time, a comfortable

working environment, and a positive and

caring attitude from employers. Extrinsic

rewards are (financial) rewards such as salary

increases, incentives, bonus schemes, and are

external to the job or task performed by the

employee (Hafiza et al, 2011).

Performance Management and Motivation

Managing performance refers to managing

individuals within the structure of a procedure

to accomplish the goals of the organisation. It

is built on evaluating the performance and

currently is further concerned about the

totality efficiency of the organisation as a

team (Leech, 2007). The objective of

performance management is to progress

towards outcomes at the level of organisation,

team, and individuals (Schultz et al, 2003).

Indeed, it helps employees to recognise and

understand their role in contributing to the

link between performance and reward, and to

be sure that their performance is aligned with

the company's goals, mission, and vision

(Fletcher & Wiliams, 1996).

Employee performance depends on various

factors that influence the effectiveness of the

organisation such as satisfaction,

improvement, motivation, intrinsic factors,

training and development (Razaq et al, 2011).

Motivation is an essential method when the

workforce of an organisation has not a good

connection model. Motivation is a feature that

provides a driving strength on our activities

and job. It is a combination of various

processes, which affects and guides our

conduct to attain some particular objective. It

is such a dynamic that creates a clear and

encouraging influence on the work (Baron,

1983).

Within an organisation, improving

performance is possible with most committed

individuals who may just be accomplished

through employee motivation. Employees’

relation with employees and with the manager

is a key element of the internal organisation

strength. The capability of managers to

present strong leadership has an impact on

employee job satisfaction (Danish, 2010).

Moreover, Danish confirms that rewards have

an impact on attracting and motivating

individuals towards higher performance. For

instance, the ability of the director to provide

rewarding pay for employees, undoubtedly to

avoid them seeking another job in a different

place 'brain drain'. Besides, most directors

apply money as a means to reward or punish

employees, in order to raise the level of

productivity and performance (Mujtaba and

Shuaib, 2010). However, Khan et al (2010)

Page 3 of 9

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 06

July 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 282

pointed out that motivation can not only

impact on the performance, but performance

can also influence motivation if followed by

rewards. From the above facts, it is obvious

that organisations might achieve the

advantage of implementing performance

programs that centre on official rewards.

The impact of Rewards on Individual

Performance

Organisations employ a rewards system as a

significant motivator to promote the

performance of employees. Occasionally, it is

supposed that the major purpose of

performance management is to create ratings

to inform contribution- or performance- related reward resolution (Armstrong, 2009).

Besides, Armstrong and Murlis (1998)

illustrates that reward management is about

communication, implementation

development, maintenance, and evaluation of

reward processes. The primary aim of reward

is to enhance the organisation’s performance

by improving the employees' performance.

Hume (1995, 5) pointed out that improving

performance through reward “is based on the

assumption that the motivation of employees

will be increased, and performance improved,

by the attraction and receipt of financial

incentives”.

The concept of performance through reward

was established by the father of scientific

management Frederick Taylor. However, his

technique did not include individual's ideas

but only their ability (Mujtaba & Shuaib,

2010). While, (Lawler, 1985) identifies some

factors that affecting the reward in respect of

the work. Firstly, it depends on the amount

obtained and the amount employees believe

have to receive. Secondly, compared to what

others get impacts on the performance of

individuals. Thirdly, satisfaction of

employees through intrinsic and extrinsic

rewards obtained influence on the overall

performance of the work. Finally, employees

vary widely in the rewards they want and the

value they attach to each, and only extrinsic

rewards satisfy because they might lead to

other rewards. All these suggest the need for a

different reward system.

The influence of extrinsic and intrinsic

rewards on satisfaction and motivation is

clear. Although, there were no significant

differences in the level of motivation and

satisfaction of work across a variety of groups

of employees in diverse organisations. For

instance, (Shields, 2007) cites that extrinsic

rewards might be employed as motivators to

enhance performance, even if they are not

essentially effectual in this role. They might

also suggest the point that performance is

essential and assist to focus on particular

characteristics of performance that need to be

enhanced. However, it is usually accepted that

although extrinsic rewards are able to have a

direct and, in the correct circumstances, an

influential consequence on performance and