CHAPTER ONE INTRODUCTION 1.1 INTRODUCTION Sustainability is about building a society in which a proper balance is created between economic, social and ecological aims. For businesses, this involves sustaining and expanding economic growth, shareholder value, prestige, corporate reputation, customer relationships, and the quality of products and services. The concept of sustainability is centers on a balance of society, economy and environment for current and future health. Responsible resource management in all three areas ensures that future generations will have the resources they need to survive and thrive. Adopting a culture of sustainability throughout all aspects of academics, research and operations is the ultimate goal for a campus concerned with the impact it has on the community and the future. A sustainable campus promotes socially just and vibrant communities, is economically responsible and conserves finite resources. Sustainability is based on a simple principle which is everything that we need for our survival and well being depends, either directly or indirectly on our natural environment. The principles of sustainability help businesses to reduce unnecessary risks, avoid waste generation, increase material and energy efficiency, innovate new, environmentally friendly products and services and obtain operating permits from local communities. Sustainability creates and maintains the conditions under which humans and nature can exist in productive harmony, that permit fulfilling the social, economic and other requirements of present and future 1
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CHAPTER ONE
INTRODUCTION
1.1 INTRODUCTION
Sustainability is about building a society in which a proper balance is created between
economic, social and ecological aims. For businesses, this involves sustaining and expanding
Eskew and Heneman ( 1996 ) conducted a survey among senior
compensation professionals from 72 orgnizations in an attempt to examine
the effectiveness of merit pay in achieving organizational objectives. In a
contrasting view, Luthans and Stajkovic ( 1999) proposed that pay for
performance systems are ineffective because the “rewards” or pay need
to be replaced by reinforcers. The suggest that reinforcement theory and
behavioral management should be considered to help solve this
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controversy. Brudney and Condrey (1993) sought to determine which
factors differentiated motivated versus non- motivated managers included
in the performance management and recognition system ( PMRS), a merit
based compensation system.
2.3.2EMPLOYEE PERCEPTIONS OF THE REWARDS ASSOCIATED
WITH SIX SIGMA.
Six sigma is an approach to organizational change that incorporates
elements of total quality management, business process reengineering,
and employee involvement ( El ) ( Quinn, 2003 ). Proponents of six
sigma ( Larson, 2003 ) argue that it involves a transformational change in
an organization’s culture, structure and processes which in turn enhances
its sustainability.
Shani and Docherty (2003), these mechanisms include formalized
strategies, policies and guidelines, methods, tools and routines. Allocation
of resources, authority and responsibility and management reward
systems. On the other hand, employees perceive that the rewards of six
sigma primarily benefit the organization, the program may be perceived
as exploitation and its sustainability would be threatened ( Shani and
Docherty, 2003).
Larson (2003) describes the elements necessary for a successful six sigma
program: vision, skills, resources, action plans and incentives. There are
four categories of rewards most frequently associatedwith change
programs such as six sigma: intrinsic,extrinsic, social and organizational
rewards. Organization rewards are the very reason that most implement
six sigma in the first place and include the bottom line business results of
improved quality, productivity and profits ( Buch and Rivers,2001).
Extrinsic rewards are those that employees receive from their organization
or management as a result of their performance or participation. The third
category used in this study is social rewards, which occur through the
satisfaction of our need for belonging, affiliation and relatedness
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( Alderfer, 1969). While social rewards may be considered as one type of
extrinsic rewards, the emphasis of team based projects in six sigma may
make social rewards a salient and desirable outcome for participants
( Larson 2003). Involvement in a six sigma project team can be a source of
social rewards by providing increased opportunities for employees to
interact with workers on the job and to work together toward shared goals
and outcomes. We, therefore chose to examine social rewards as a
separate category from extrinsic rewards.
Intrinsic rewards are those that an individual receives internally as a result
of their involvement in activities that enhance feelings of self competence,
growth, satisfaction, responsibility and autonomy. Intrinsic rewards most
frequently associated with six sigma and other types of EI programs
include the development and use of new skills and competencies,
increased levels of responsibility, discretion and control over work and the
feelings of satisfaction that accompany these changes ( Allen and Lucero,
1997).
The need for employees to perceive the link between intrinsic rewards and
their participation in six sigma cannot be understated. According to Shani
and Docherty (2003), employees must value the opportunities to acquire
new knowledge and skills, as well as the autonomy to use them.
Otherwise, they may interpret the personal consequences of the program
as nothing more than work intensification. Thus ,the results of the current
study will provide important insight into the meaning employees attach to
all categories of six sigma rewards.
2.3.3 MOTIVATING EMPLOYEES FOR ENVIROMENTAL
IMPROVEMENT
This paper provides an overview of the current management literature
regarding increasing employee motivation for environmental improvement
efforts. Commitment from top management is like a framework for
environmental improvement. Top management decides the environmental
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policies to establish the level training and communication required it is
almost impossible to motivate employees to take effective steps for
environmental improvement. Environmental Management System ( EMS )
provides a format that allows management the ability to better control the
company’s environmental impacts ( Barnes, 1996). EMS includes
documentation of commitment and policy, planning, implementation,
measurement and evaluation, review and improvement ( Hersey, 1998;
Lin et al., 2001). A formal structured program sets the stage for increased
employee awareness of environmental issues and its significance to the
organization ( Barnes, 1996 ).
Other than, it is important to consider organizational culture because
companies with rigid, top heavy and bureaucratic structures have a more
difficult time implementing changes than a company that has a flexible
and lean organizational structure ( Janson and Gunderson, 1994).
Motivation for environmental improvement efforts may be supported or
undermined by the organizational culture. Management commitment must
include a culture that encourages innovation and risk taking. Values,
norms, attitudes and behaviors that promote environmental improvement
efforts have to be supported ( Ramus, 2001). Employees should be
allowed inputs for enhancement and time for experimentation ( Woods,
1993).
Environmental programs, initiatives and goals of the company should be
communicated frequently so the employees know what is expected to
accomplish the goals. Recent research suggests strongly that employees
do not feel properly informed regarding environmental issues ( Madsen
and Ulhoi, 2001). Researchers have determined quality management
efforts demand extensive on the job training and continual educational
efforts to achieve continual improvement ( Cook and Seith, 1992;
Curkovic, 1998). Other than specific environmental training programs,
additional types of training such as interactive skills, team building,
benchmarking, brainstorming and consensus building will help promote a
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culture where employees feel enable to participate in environmental
improvement ( Begley, 1996; Woods, 1993).
Authors Leitch et al. (1995, p. 72) described employee empowerment as :
…………….the importance of giving employees both the ability and the
responsibility to take active steps to identify problems in the working
environment that affect quality or customer service and to deal effectively
with them. Motivating employees for greater participantion in
environmental improvement efforts may also require employment of
teams. The use of team based EI programs has become a major trend.
Such programs are particulary popular in manufacturing organizations,
where manufacturing strategies, competitive pressures and advanced
technology requireshop floor employees to make more responsibiltity
( Magjuka and Baldwin, 1991).
2.4 RESEARCH FRAMEWORK
The purpose of this study the sustainability of employee performance
towards rewards and motivation. This study carried out to find out how
performance evaluation on a employee do within handling organization
among School Of Business staff in Universiti Utara Malaysia, Sintok, Kedah.
An independent variable is exactly a variable that stands alone and isn’t
changed by the other variable. This research focused on certain aspect of
performance at rewards. Assessment carried out by making overall
comprehensive study to get decision that is best . Appreciation in handed
to employee that is disciplined and responsible.
A dependent variable is exactly something that depends on other factors.
For examples in this research the dependent variable is motivating
employees for enviromental improvement. The dependent variable can be
measured from the independent variable.
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CHAPTER 3
RESEARCH METHODOLOGY
3.1 DEFINITION
The research methodology refers to a systematic method of collecting data or information to
solve a problem that is studied as increase their knowledge in the field of research. To collect
data and information that will, several methodologies were taken.
There are two forms of the method used in this research, qualitative and quantitative research.
Qualitative research is using data, information, statements, comments, meanings, concepts
and the like for research. Source of data obtained is in the form of books, magazines, journals,
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papers and so on. Quantitative research is the data was obtained in the form of figures or the
number of telephones collected using methods such as distributing questionnaires. The data
will be analyzed using scientific methods and tabled by using charts and tables.
To collect the data, there are two types of researchers conducted a study to be as follows:
1. Library Research
Library research is a technique used by the researcher to gather data and evidence through the
study of documents and records. This technique is a process of gathering data to conduct
research on the available data and make the reading of the documents relate to the problems
studied. The researcher will gather the data with reference to the documents obtained. After
the reading, research and analysis, the researcher will conclude on questions related to the
research problem.
The researcher visited the library to collect materials related to the topic of this study. The
materials obtained are as scholarly books, journals, magazines, newspapers and others. The
library is visited to obtain for reference data and facts.
2. Field Research
A field used to complement the data libraries acquired and help get new information.
Researcher visited the area of study for observational studies to obtain more information
about an object of research. The study was conducted in Buildings COB, University Utara
Malaysia, Sintok, Kedah. The aim of the researchers are going to study is to research directly
with the target respondents for the study to make the necessary findings and conclusions.
Respondents are among staffs COB. The researcher will distribute questionnaires to a sample
and give a brief description of the purpose of the questionnaire was carried out.
The methods used in the field study are:
i. Interview
This method is used to obtain evidence or oral sensing of the respondents to communicate
face to face. The researcher has selected some COB staff interviewed to obtain data and
information.
ii. Questionnaire
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Method Questionnaires were used to obtain information from many respondents. The
questionnaire is a list of questions about a case to obtain data which is the answers of the
respondents. Questionnaire method will be applied in the study to obtain detailed information
on sustainability performance and significant staffs COB of reward and motivation. The
researcher will distribute the questionnaire forms to respondents among COB staff to get
feedback on aspects of the study. Questionnaires are distributed to 50 respondents of COB
staff.
iii. Data Analysis
The method of data analysis is data and information obtained will be analyzed and described
by the researcher before making a decision. The method of SPSS (Statistical Package for the
Social Sciences) was applied in analyzing the questionnaires were returned. Methods SPSS
will show processed data acquisition.
Regression Analysis
An analysis aimed to determine the effect of a variable to another variable. In regression
analysis, the variables that influence called Independent Variable (independent variables) and
the variables that influenced referred Dependent Variable (dependent variable). The method
of least squares (OLS) will be used to determine the equation. This method is used to
determine the regression equation by minimizing the squared vertical distance between the
actual Y values and Y values to be estimated.
The dependent variables is the sustainability of employee performance (Y)
The independent variables are rewards (X1) and motivation (X2)
iv. Sampling method
The sample is a small group of elements that have been taken from a sampling frame. A
sample allows survey done on the part of the population being studied. Sampling method used
in this research is simple random sampling. The study included 50 respondents of the staffs at
COB. Every element in the population has an equal and independent chance of being selected
as a sample. This is a simple and suitable for the population to be homogeneous or nearly the
same.
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The issue of why we choose the COB staff because the information or indictment of the HEA
that COB staff performance is not in satisfactory level of performance. The effect of poor
work performance among COB staff can cause negative effects to the organization and
students. The negative effect to the organisation is the organisation management is not
systematic or in unmanageable conditions to manage office or related matters about university
itself. Negative effect for student is workers may release their anger to students when students
deal with them.
3.2 FRAMEWORK
The purpose of this study is to examine the level towards sustainability of
employee performance by relating rewards and motivation among COB staff in UUM Sintok,
Kedah.
SUSTAINABILITY OF EMPLOYEE PERFORMANCE
IV DV
Figure 1.1 : Framework
HYPOTHESIS:
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REWARDS
MOTIVATION
SUSTAINABILITY
OF EMPLOYEE
PERFORMANCE
H0: The rewards did not influence the sustainability of employee performance.
H1: The rewards did influence the sustainability of employee performance.
H0: The motivation did not influence the sustainability of employee performance .
H2: The motivation did influence the sustainability of employee performance.
3.3 OPERATIONAL DEFINITIONS
3.3.1 SUSTAINABILITY OF EMPLOYEE PERFORMANCE
There are various approaches that have been used to measure, monitor and assess a
company’s progress toward sustainability, including sustainability performance ranking.
Good sustainability performance is heavily influenced by the honest commitment of
management to sustainability and by the adoption of a management incentive scheme. The top
management of a company needs to right signals to promote sustainability and to set how
sustainable principles are followed.
Sustainability can gain a competitive edge by good managing sustainable performance.
Improved overall performance can only be achieved by setting sustainable performance
targets that are consistent with the company’s operating principles and that measure and adapt
performance to these targets over time.
(DV) (IV)
EMPLOYEE PERFORMANCE DEMOGRAPHY
( CONSTRUCT )
SKT APPRAISAL GENDER
The diagram shows that the variables that influence called Independent Variable and the
variables that influenced are refer Dependent Variable. The dependent variables is the
employee performance and the independent variables are demography. Demographics is
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dependent of employee performance to measure the employee sustainability. Employee
performance can be measured through assessment of SKT conducted for each employee at the
time. Level of performance can be achieved if the evaluation they reach a specified level.
Besides, demographics also affect the measure of performance. We can know the gender of
which could indicate the best employee performance evaluation based on demographic
variables.
Performance appraisal system is a process to assess individual that in hirarki one organization
post. It involving superior assessment on the downline. This approach implemented once in a
year. Written under law Pekeliling Perkhidmatan Bil 4, “Pelaksanaan Sistem Saraan
Malaysia Bagi Anggota Perkhidmatan Awam Persekutuan”. Objective for this performance
appraisal are training and counselling, progress basis of consideration, placement & career
field, promotion, certificate and others.
SKT importance for assisting Officer evaluate work, giving levels of achievement real picture
work performance, SKT provision that orderly enable evaluation of officer's performance
feasible with objective, fair and transparent. Besides, 'Contract performance's that agreed
along with between PYD with assessor officer.
3.3.2 EMPLOYEE PERFORMANCE TOWARDS MOTIVATION
Motivation by definition refers to what activates, directs human behaviour and how this
behaviour is sustained to achieve a particular goal. People are motivated by how much they
want something and how likely they think they are to get it. The suggest that motivation leads
to efforts and the efforts combined with employees ability together with environment factors
which interplay’s resulting to performance.
The concept of employee’s motivation has been a critical factor as what determines the core
competence of every organisation in achieving a competitive position. Employees may put
additional effort with reaching their potential, making jobs more interesting and challenging.
Ensuring the availability of the primary motivational factors is for maintaining productivity
and ensuring the long term survival of the organisation.
DV IV
EMPLOYEE PERFORMANCE MOTIVATION
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( CONSTRUCT )
SKT APPRAISAL BONUS
The diagram shows that the variables that influence called Independent Variable and the
variables that influenced are Dependent Variable. The dependent variables is the employee
performance and the independent variables are motivation. Motivation is dependent on
employee performance to measure the employee sustainability. Employee motivation can be
improved if the employee is given the credit for the work performed. Motivating employees
can be evaluated based on a valuation carried out and workers get a good evaluation results
are eligible to receive a bonus acknowledgment form. Motivation is given based organization.
Not all organizations provide equal appreciation to employees. For example, if the evaluation
of worker results exceeds 95%, the employee is eligible for a bonus due to yield satisfactory
performance. So, the evaluation based on SKT can identify employees who really deserves a
bonus. Accordingly, employees will continue to be motivated in doing their work as
appreciated the work done by the organization.
3.3.3 EMPLOYEE PERFORMANCES TOWARDS REWARDS
Top management know positive motivation leads to better performance and higher
productivity but may rely on the wrong tools. Microsoft Business states as "using monetary
and other rewards to improve motivation is a simple idea, but doing it fairly and effectively
can be challenging."
Developing a system of incentives to reward employee at all levels who develop and push for
the adoption of sustainability practices. It also refers to the ability to respond flexibly to
change and to engage in dialogue and partnerships with different members of society.
DV IV
EMPLOYEE PERFORMANCE REWARDS
( CONSTRUCT )
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SKT APPRAISAL PROMOTION
The diagram shows that the variables that influence called Independent Variable and the
variables that influenced referred Dependent Variable. The dependent variables is the
employee performance and the independent variables are rewards. Rewards is dependent on
employee performance to measure the employee sustainability. Reward is an important aspect
in influencing job performance of employees. Attractive Rewards will increase employee
motivation and productivity of the organization. Rewards that can be given by the company is
as promotion. They will feel appreciated for their contributions to the organization and are
willing to meet their obligations.
Bibliography
Buch, K. (JOCM 19,3). Employee perceptions of the rewards associated with six sigma. 356-364.
Eccles, R. G. (n.d.). The Impact of a Corporate Culture of Sustainability on. Harvard Business School.
Owen.K, M. G. (n.d.). Vol 11-No 1.2001. page 10 -21, MBC University Press.
Rupp, A. D. (Vol 7 No.1 2003). Knowledge Worker : Exploring the link among performance rating, pay and motivational aspect. Journal of Knowledge Management, 107 - 124.