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PERFORMANCE RELATED PAY AND ITS IMPACT ON
ORGANIZATION DEVELOPMENT EMPIRICAL EVIDENCE
FROM BANKING SECTOR OF PAKISTAN
DOCTOR OF PHILOSOPHY THESIS
(MANAGEMENT SCIENCES)
BY
GHAYUR AHMAD FAROOQI
Registration No 1094-112002
Faculty of Business Administration
Preston University Kohat,
Pakistan
2018
PERFORMANCE RELATED PAY AND ITS IMPACT ON
ORGANIZATION DEVELOPMENT EMPIRICAL EVIDENCE
FROM BANKING SECTOR OF PAKISTAN
DOCTOR OF PHILOSOPHY THESIS
(MANAGEMENT SCIENCES)
Submitted in Partial Fulfilment of Requirements for the Degree of
Doctor of Philosophy (Management Science)
By
Ghayur Ahmad Farooqi
Registration No 1094-112002
Supervisor
Dr. Syed Umar Farooq
Faculty of Business Administration
Preston University Kohat,
Pakistan
2018
Supervisor Certificate
This is to certify that Ph.D. (Management Sciences) thesis titled “Performance Related Pay
and Its Impact on Organization Development Empirical Evidence From Banking Sector
of Pakistan’’, is submitted by Mr. Ghayur Ahmad, Registration No. 1094-112002 in partial
fulfilment for the award of Doctor of Philosophy (Ph.D) in Management Science is a record of
the candidate’s genuine work carried out under my supervision. I am fully satisfied with the
quality of research work.
_______________________
Dr. Syed Umar Farooq
(Supervisor)
PRESTON UNIVERSITY, KOHAT
ISLAMABAD CAMPUS FACULTY OF BUSINESS ADMINISTRATION
Certificate of Approval
This is to certify that the research work presented in the Thesis, entitled “Performance Related
Pay and Its Impact on Organization Development: Empirical Evidence from Banking
Sector of Pakistan” was conducted Mr. Ghayur Ahmad, Reg no: 1094-112002, under the
supervisor of Prof. Dr. Syed Umar Farooq Professor, Faculty of Business Administration,
Preston University, Kohat, Islamabad Campus. No part of this Thesis has been submitted
anywhere else for any degree. This thesis is submitted to Faculty of Business Administration
in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Field of
(Management Sciences), Preston University, Kohat, Islamabad Campus
Student’s Name: Ghayur Ahmad Signature:_________________
Examination Committee:
a) External Local Examiner-I
Dr. Naveed
Assistant Professor
Qurtuba University of Science and Information
Technology
Peshawar.
Signature:_________________
b) External Local Examiner-II
Dr. Zeeshan
Associate Professor,
Kohat University of Science and Information
Technology.
Signature:_________________
c) Internal Examiner-I
Dr. Aurangzeb
Professor & HOD, Management Sciences,
Preston University, Kohat, Islamabad Campus
Signature:_________________
d) Supervisor:
Dr. Syed Umar Farooq
Vice Chancellor,
Abasyn University Peshawar
Signature:_________________
Authors’ Declaration
I Ghayur Ahmad hereby state that my PhD dissertation titled “Performance Related Pay
and Its Impact on Organization Development Empirical Evidence from Banking Sector
of Pakistan’’ is my own work and has not been submitted previously by me for taking any
degree from Preston University Kohat or anywhere else in the country/world.
At any time, if my statement is found to be incorrect even after my graduation, the university
has the right to withdraw my PhD degree.
___________________
Ghayur Ahmad Farooqi
Date
Plagiarism Undertaking
I solemnly declare that research work presented in the thesis titled “Performance Related Pay
and Its Impact on Organization Development: Empirical Evidence From Banking Sector
of Pakistan’’ is solely my research work with no significant contribution from any other
person. Small contribution/help wherever taken has been duly acknowledge and that complete
thesis has been written by me.
I understand the zero tolerance policy of the HEC and Preston University Kohat,
towards plagiarism. Therefore I as an Author of the above titled thesis declare that no portion
of my thesis has been plagiarized and any material used as reference is properly referred/cited.
I undertake that if I am found guilty of any formal plagiarism in the above titled thesis
even after award of PhD degree, the University reserves the rights to withdraw/revoke my PhD
degree and that HEC and the University has the right to publish my name of the
HEC/University Website on which names of students are placed who submitted plagiarized
thesis.
__________________
Ghayur Ahmad Farooqi
COPYRIGHTS
All rights are reserved. Material of this manuscript is protected by copy rights notice;
any part of the document may not be reproduced or utilized in any other form or means,
electronic or mechanical, photocopying, recording, information storage and retrieval system,
without the permission of the University authority.
DEDICATION
I dedicate this research to my family and friends who encouraged and
supported me to complete my PhD thesis.
Ghayur Ahmad Farooqi
ACKNOWLEDGEMENT
I am very thankful to Almighty Allah, the mighty, the merciful, who
extended me strength to observe, think and analyze. I bow before this
compassionate endowment and all the respect for his last Prophet Muhammad
(PBUH) for enlightening with essence of faith in Allah converging all his kindness
and mercy upon us.
I wish to express my heartiest gratitude to all those who enhanced my
Research work in different ways.
I render my sincere thanks to my supervisor, Professor Dr. Syed Umar
Farooq who provided me guidance and encouragement in a very positive and
pleasing manner, I am also thankful to Prof. Dr. John Budd, Director of the CHRLR
Carlson School of Management University of Minnesota US who provided me an
opportunity to complete my research at Carlson School of Management under his
patronage.
I also thank to Dr. Waqar Alam who always available for advising and
support in my long journey of Ph.D. And all brilliant faculty members of Preston
University, who were always available for support.
Ghayur Ahmad Farooqi
x
Abstract
Performance-related pay (PRP) has gained tremendous attention in recent years
from both academicians and practitioners. While it has been a highly debated issue
in the academia, many organizations have widely used it as a major factor
influencing the organization development (OD), in general, and human resource
policies, in particular. Organizations utilize PRP as a means to maintain motivation
in their employees. Numerous studies have examined the impact of PRP on OD.
However, the evidence of the use of PRP in the banking sector is rather scant. This
study aims to fill that void by examining the impact of PRP on OD in the banking
sector in Pakistan. The study proposes that PRP along with the degree of
motivation, job satisfaction, positive attitude and employee demeanor are the major
factors that affect organization development. A mixed methodology comprising of
both the deductive and inductive approaches was employed to fulfil the research
objectives. Data were collected from two reputed banks, namely, the Allied Bank
and Bank al-Falah of Peshawar, in Pakistan that have implemented PRP as a part
of their organization development. Interviews and survey questionnaires were used
to collect data from the employees of the two banks. Data were analyzed using SPSS
Statistical Software. Correlation and regression analysis were employed to test the
proposed model. The results show significant positive relationships between each
of PRP, motivation and job satisfaction, and organization development. The
findings suggest that the banking sector in Pakistan should continue performance
appraisal schemes such as PRP in line with the growth objectives of the banks and
individual career aspirations of staff.
Keywords Performance-related pay, organization development, and reward management
xi
Table of Contents
Supervisor Certificate .............................................................................................iii Authors’ Declaration ................................................................................................ v
Acknowledgement .................................................................................................. ix Abstract .................................................................................................................... x Table of Contents .................................................................................................... xi List of Figures ....................................................................................................... xiv List of Tables ......................................................................................................... xv
CHAPTER – 1 INTRODUCTION ....................................................................... 1 1.1 Background of the Study 1
1.2 Forms of PRP 3 1.1.1 Individual Performance-Related Pay (IPRP) 3 1.1.2 Merit Payment 4 1.1.3 Team or Group Performance Payment 4
1.1.4 Participation 4 1.3 Objectives of PRP 4
1.4 Methods of Operation for PRP 5 1.4.1 Pay Structures 5 1.4.2 Pay Progression and Performance 5
1.4.3 Performance Ratings 5 1.4.4 Decelerated Progression 5
1.4.5 Performance-Related Pay 5 1.4.6 Pay Matrix 6 1.4.7 Holistic Approach 6
1.5 Contextual Background of the study 6
1.6 Justification of the Study 7 1.7 Significance of the study 9 1.8 Problem Statement 10
1.9 Research Questions 11 1.10 Research Objectives 11
CHAPTER 2 LITERATURE REVIEW ............................................................ 12 2.1 Introduction 12 2.2 Operational Definitions 14
2.2.1 Performance Related Pay 14
2.2.2 Degree of Motivation 14 2.2.3 Job Satisfaction 15 2.2.4 Positive Attitude 16
2.2.5 Performance Management 16 2.2.6 Employee Demeanor 17 2.2.7 Organization Development 17
2.3 Introduction to Performance-Related Pay (PRP) 18
2.4 Degree of Motivation 20 2.5 Factors to Be Taken into Account While Introducing PRP 23 2.6 Definition of Reward 26
xii
2.7 The Importance of Reward Management 26 2.8 Reward Management 27 2.9 Reward Management and HRM Strategy 28 2.10 Reward structures and schemes 29
2.11 Reward Management and Organizational Strategy 29 2.11.1 Achieving Competitive Advantage 29 2.11.2 Emphasize Performance 29 2.11.3 Encourage Flexibility in Working Practices 29
2.12 Developments in Reward Management 30
2.13 Rewards and the Elements of HRM Cycle 33 2.14 Pay Forms as Part of Reward Management 33 2.15 Paying for Performance 34 2.16 The Reasoning for Performance Pay 34
2.17 Positive Attitude towards Performance Related Pay 35 2.18 Negative Aspects of PRP – Unfavourable Arguments 40 2.19 Possible problems with PRP 41 2.20 Types of Paying-for-Performance Schemes 44
2.21 Job Satisfaction 45
2.22 Employee Demeanour and Performance Related Pay 47 2.23 Organization Development 51
2.24 Performance Management 54 2.25 Conclusions 61 2.26 Conceptual Framework 62
2.27 Hypotheses 63 2.28 Research Gap 64
CHAPTER 3 RESEARCH METHODOLOGY ................................................ 65 3.1 Introduction 65
3.2 Research Design 66 3.3 Sampling Technique 66
3.4 Population and Sampling 67 3.5 Sample Size 70 3.6 Research Methods and Procedures 71 3.7 The Rationale for Using Mixed Methods 72
3.8 Qualitative Research 72 3.9 Qualitative Data Analysis 73 3.10 The Technique of Data Collection 74 3.11 Measurement and Instrumentation 75
3.11.1 Interviews 76
3.12 Measurement of Variables 77 3.12.1 Scales 77
3.13 Data Collection Procedure 78 3.14 Data Analysis and Interpretation 79
CHAPTER 4 RESULTS AND ANALYSIS ....................................................... 82 4.1 Introduction 82 4.2 Descriptive of Demographics 82
4.3 Level of Specialization in Banking and Management 86 4.4 Number of Years of Experience in ABL & Bank Al-Falah 89
xiii
4.5 Descriptive Statistics of Study Variables 94 4.6 General Response Section Services Officers (Appendix A) 96 4.7 General Response to PRP Section Branch Managers (Appendix B) 105 4.8 Specific Response to PRP Section Services Officers (Appendix C) 112
4.9 Descriptive Statistics 123 4.10 Correlations 125 4.10 Specific Response to PRP Branch Managers (Appendix D) 127 4.11 Interviews with Regional/Area Managers of ABL and Bank Al-Falah–
Peshawar 133
4.12 Summary 142
CHAPTER 5 DISCUSSION AND CONCLUSIONS ..................................... 143 5.1 Discussion 143 5.2 Hypotheses Validation 147
5.3 Limitations and Future Research Directions 147 5.4 Conclusions 148 5.5 Methodological Contribution / Empirical Implication 149 5.6 Recommendations 150
References ............................................................................................................ 152
Appendices ............................................................. Error! Bookmark not defined. Appendix – A Error! Bookmark not defined.
Questionnaire for Services Officers Error! Bookmark not defined. Appendix – B Error! Bookmark not defined. Questionnaire for Branch Managers Error! Bookmark not defined.
Appendix-C Error! Bookmark not defined. Interview Schedule Services Officers Error! Bookmark not defined.
Appendix - D Error! Bookmark not defined. Interview Schedule for Branch Managers Error! Bookmark not defined.
Appendix – E Error! Bookmark not defined. Interviews Schedule for Regional/Area Managers Error! Bookmark not
defined.
xiv
List of Figures
Figure 1. Conceptual framework ........................................................................... 63
xv
List of Tables Table 3.1 Likert Scale ............................................................................................ 75
Table 4.1 Gender Distribution of Respondents (N=145) ....................................... 82 Table 4.2 Age Distribution of Respondents (N=145) ............................................ 83
Table 4.3 Ethnic Distribution of Respondents (N=145) ........................................ 84 Table 4.4 Monthly Income of the Respondents (N=145) ...................................... 84 Table 4.5 Banking Specialization of Respondents/ (N=145) ................................ 85 Table 4.6 Educational Qualification of Respondents (N=145) .............................. 87 Table 4.7 Experience in banking sector (N=145) .................................................. 88
Table 4.8 Experience in Targeted banking sector (N=145) ................................... 89 Table 4.9 Number of jobs held before this current position (N=145) ................... 91 Table 4.10 Number of years of coming under PRP fold (N=145) ......................... 92 Table 4.11 Reliability of Scales (N=145) .............................................................. 93
Table 4.12 Descriptive Statistics of Study Variables (N=145) .............................. 94 Table 4.13 Correlation Matrix of all Variables (N = 145) ..................................... 95 Table 4. 14 Regression Analysis for Performance Related Pay, Motivation and Job
Satisfaction with Organization Development (N=145) ......................................... 96 Table 4.15 PRP has been necessary within this competitive environment ............ 97
Table 4.16 Administration of PRP is a fair and just practice of rewarding effort . 97 Table 4.17 PRP has been managed efficiently at ABL & Al-Falah ...................... 98
Table 4.18 Performance appraisals conducted fairly ............................................. 98 Table 4. 19 PRP affects your rapport with your line manager negatively ............. 99 Table 4.20 PRP raises initiative and creativity ...................................................... 99
Table 4.21 PRP is a tool of motivation for performance improvement ............... 100 Table 4.22 PRP affects teamwork negatively ...................................................... 100
Table 4.23 PRP supports management control over staff. ................................... 101 Table 4.24 PRP conveys a strong message about organization development ..... 102
Table 4.25 PRP has improved your personal status in the organization. ............. 102 Table 4.26 PRP fosters adverse feelings of jealousy and distrust........................ 103
Table 4.27 PRP helps in retention of staff ........................................................... 103 Table 4.28 PRP creates discontentment in employees......................................... 104 Table 4.29 PRP has impacted the work culture at your bank positively ............. 104
Table 4.30 PRP has great importance in this competitive environment. ............. 105 Table 4.31 PRP implementation is getting full support from top management... 105
Table 4.32 Staff whole-heartedly support PRP implementation ......................... 106 Table 4.33 PRP has been fully dependent on the Performance appraisal process.
.............................................................................................................................. 106
Table 4.34 PRP conveys a strong message about organization development ..... 107 Table 4.35 PRP is being administered fairly at your Bank. ................................. 107
Table 4.36 PRP has contributed as a tool of motivation towards performance
improvement. ....................................................................................................... 108
Table 4.37 PRP has aided to achieve organizational goals. ................................. 108 Table 4.38 PRP prevents teamwork ..................................................................... 109 Table 4.39 PRP helps novel work practices......................................................... 109 Table 4.40 PRP controls turnover. ....................................................................... 110 Table 4.41 RP has affected associations with staff negatively. .......................... 110
Table 4.42 PRP has supported management control over staff. .......................... 111
xvi
Table 4.43 PRP aids the recruitment of innovative talent. .................................. 111 Table 4.44 PRP has been economical for the organization. ................................ 112 Table 4.45 Do you think PRP fits with the work culture at your bank? How? ... 113 Table 4.46 Do you think PRP has improved organizational performance? How?
.............................................................................................................................. 114 Table 4.47 Do you think PRP is a motivational factor for your performance? ... 115 Table 4. 48 Have you had any problems with the broad principles behind PRP
implementation? What are they? ......................................................................... 116 Table 4.49 Have you had any problems with the perception of fairness in the PRP
implementation methods? Why?.......................................................................... 117 Table 4.50 How do you perceive changes in your relationship with the
management because of PRP? ............................................................................. 118 Table 4. 51 How do you observe changes in your own position in the department
caused by PRP? .................................................................................................... 119 Table 4.52 What are the negative aspects of PRP implementation?.................... 120 Table 4.53 How has PRP changed you personally and professionally? .............. 121 Table 4.54 Would you like to add any other comments of your own about the PRP
scheme in your bank?........................................................................................... 122
1
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
The background of the research work provides the contextual information about Allied
Bank and Bank Al-Falah as corporations and its function as one of the leading Banking service
providers in Pakistan (Zafar, 2015). It provides information about the organizational and
operational structure of the company that makes the research work more relevant. Furthermore,
it provides information about the implementation of performance-related pay practices within
both Banks and its general structure and process. Together, this information should place the
rest of the research work, including the literature review, research methodology, and the data
analysis and discussions within the context and help provide a better understanding of the
performance-related pay practices within Allied Bank and Bank AIFalah (Zafar, 2015). Some
of the explanations are of the common knowledge and apply to general organizational
management, while some specific contextual information has been culled from the known
sources of knowledge (Perelman & Lourenço. 2015).
During last some years, performance-related pay (PRP) is being used on a wide range
as a very important factor of policies regarding human resource in an organization. The
increasing pressure on organizations worldwide is to increase the performance and employees’
productivity and to sustain their motivation (Perelman & Lourenço. 2015). This has led
organizations to experiment with different forms of reward management processes. Employee
Reward systems have been studied in the past for their supposed impact on employee
motivation. From the different monetary and non-monetary reward systems, the most debated
one is the Performance-Related-Pay, a variable progressive system of payment that links pay
to individual performance and results achieved (Rehman & Ali, 2015). This topic has been the
2
subject of much debate in corporate and academic circles, and arguments for and against the
subject has been explored in much detail (Adams, 2015).
Certain researchers had briefly written and studied about the importance of
performance-related pay and its implementation in western economies, particularly in
traditional industries (Brown, 2018). Besides that very little literature is available about similar
schemes in South Asia, particularly in emerging economies and service industries. The aim of
the study has thus been to identify a corporate organization that has implemented performance-
related pay schemes and to study its relative success (Brown, 2018).
Today every business. owner. is. in. search. of. techniques. and. ways. through. which. they.
can. align. their. all. business strategies with reward as well as motivation of their employees to
retain them and maximize their profitability. As in academic field research on employee reward
system is a very important topic as well as it is a rich source of innovations and experiments in
the corporate world (Delbridge, 2019). Virtually all organizations, including established public
sector corporations, government departments, and multi-national corporations around the
world have been affected by the sweep of economic reforms in the past three decades. The
failure of communism1 as1 an alternative economic11 model11 and11 the embracing of capitalist
reforms by even erstwhile state-sponsored economies like China have inspired institutes in both
sectors i.e. public and private sectors to become more competitive and efficient. Improved
productivity and performance are seen as the most efficient way to achieve a competitive
advantage, and many organizations have adopted various methods to realize this objective. In
keeping with the global shift towards a knowledge economy model where human resources are
considered a firm's most valuable capital asset, many organizations are experimenting with
various measures to improve human performance and productivity (Rehman & Ali, 2015).
Establishing and maintaining a reward-oriented work culture is one of them. Employees
feel justified in demanding rewards in return for their superior performance which results in
3
the organization capitalizing on their skills and knowledge, while for their part, organizations
feel that it is only fair and just for employees to be rewarded for their contribution (Booth,
2019). In the real world scenario, the dynamics and dimensions of the performance
management system offer great opportunities for applied research in the field of performance
management, in particular, and human resource management, in general. This explains the
choice of Employee Reward as a field of study, and Performance-Related Pay (PRP) as an area
of research within that field, as one of the methods of Employee Reward. The identification
and solution of such issues justify the study on performance-related pay in the banking sector
of Pakistan, and its impact on organization development (Rehman & Ali, 2015).
Many papers discuss the theoretical impacts of performance-related pay in the private
sector. Mouhaffel et al., (2017) identifies the impact of performance-related pay on teachers’
performance. Most of the theoretical studies done in the field of performance-related pay are
related to employees’ motivation and skill enhancements on one side, and the structure of the
reward system on the other side. The recent studies in performance-related pay address the
behaviors that create a link between motivation and reward mechanism. Banks are also taking
care of the need for high productivity levels with efficient and effective use of financial
resources. This not only minimizes the costs but also improve the ways of doing work. As in
this era of drastic change, high-quality productivity levels are pivotal; the need for employees’
motivation is the core essence of the whole phenomenon (Mouhaffel, 2017).
1.2 Forms of PRP
In modern studies, Delbridge further classify PRP schemes in four broad areas
1.1.1 Individual Performance-Related Pay (IPRP)
It is the assessment of individual performance linked to a bonus or additions to basic pay,
decided based on an appraisal or review. (The term PRP frequently refers to this.)
4
1.1.2 Merit Payment
It has no links to performance appraisal and was awarded in general recognition of
certain positive employment traits.
1.1.3 Team or Group Performance Payment
It is when pay is distributed among members of a team depending on the outcome of
team performance results.
1.1.4 Participation
It makes stakeholders out of employees by rewarding them with cash or share options
relating to company profits (Delbridge, 2019).
1.3 Objectives of PRP
The overall objective of PRP is to provide incentives and rewards, which improves the
performance of the organization by improving individual performance. To achieve this
objective, the aims of PRP are (Mullen & Rosenthal, 2010)
● To encourage and pat the employees for the work they do, and while doing so patting those
employees too, who are not up to the mark.
● To create a positive image of the organization by representing it as an acknowledgement of
the performance.
● To identify key hindering factors related to performance.
● To distribute rewards among the employees as per their efforts and contribution to the
success of the organization.
● To facilitate the process of change; whatever orientation, the organization follows PRP
attaches pay to that orientation or goal in order to smooth the transition psychologically.
● To reinforce the cultural values by tying the standards of performance with them.
● To make sure that individual as well as teamwork, both are important to attain high-quality
output.
5
● To retain talented employees as it is the core of the PRP system that it pays against the
performance and the good performers are mostly the talented employees.
● To distribute the cost of work with a high level of revenue. As good performance leads to
higher revenues, which eventually cover the cost of work (Shaw, 2018).
1.4 Methods of Operation for PRP
Methods of operating PRP vary considerably but its typical main features are as follows
(Shaw, 2018)
1.4.1 Pay Structures
These are organizational tools that provide a framework for managing base pay, pay
progression, and sometimes, employee benefit provisions – all of which are monetary
components of Employee Reward.
1.4.2 Pay Progression and Performance
The rate and limits of progression through the pay brackets are determined by
performance ratings.
1.4.3 Performance Ratings
This is a management-decided measurement of output based on a four or five-point
scale.
1.4.4 Decelerated Progression
The speed of increment in pay usually decreases with higher grades because it is argued
in line with the learning curve theory that pays increases should be higher during the earlier
period in a job when learning is at its highest rate.
1.4.5 Performance-Related Pay
PRP related increments are usually incorporated in the base pay (i.e.) consolidated until
either the maximum rate of pay for the grade or a limit within the grade defined in terms of a
level of performance is reached. PRP increases are often relatively small and can often vary
6
considerably between organizations and between different categories of people within
organizations. Alternatively, performance-related pay increases can be paid as non-
consolidated lump sum bonuses (variable pay), although this is less common (Shaw, 2018).
1.4.6 Pay Matrix
This comprises of a balanced scale of built-in pay guidelines and determines increases
on the basis of ratings and pay range position (Shaw, 2018).
1.4.7 Holistic Approach
Increasingly, organizations are rejecting the mechanistic approach of relating
performance pay to ratings and therefore, to the use of a pay matrix. Instead, they adopt a
holistic approach that involves taking an overall view of the employee’s performance,
competence, or contribution and deciding on the level of increase or bonus which would
appropriately reflect that overview (Shields, 2015). Performance-related pay (PRP) associates
the increment in pay with the required level of performance both in the form of output as well
as demeanour. The rating could be carried out during a performance review, or it could be
conducted at a different time exclusively for PRP purposes. PRP is sometimes said to be based
on merit rating (Shields, 2015).
1.5 Contextual Background of the study
PRP is associated with graded pay structures, individual job ranges structures, and pay
curves. It normally provides for an increase in the base pay, which is governed by a rating
against such criteria as performance and contribution outputs and skills and competence inputs.
There may, however, be a provision in some schemes for achievement bonuses to be paid in
certain circumstances which are also determined on the basis of ratings carried out by managers
on the individual’s performance etc. (Shields, 2015).
PRP system is usually for individual employee performance. Now, it is also being practiced
in the context of team performance. The better the team performs, the higher is the reward for
7
the group. Moreover, individual PRP schemes are paying more attention to performance
criteria, related to teamwork (Shujaat, 2013). Pay Structures are needed to provide a logically
designed framework within which equitable, fair, consistent, and transparent pay policies can
be implemented within an organization. Such a framework is essential if an organization is to
use pay as a lever to reward performance. Pay structures enable the organization to determine
levels of pay for jobs and people and are the basis upon which the effective management of
relativities and of the processes of monitoring and controlling the implementation of pay
practices can take place. Pay structures are also a medium through which the organization can
communicate the pay opportunities available to employees (Shields, 2015).
1.6 Justification of the Study
The rationale of the study explains the motivations behind undertaking this
particular research work and the reasons behind the choice of this topic within
this particular organization. In the beginning, the reasons for choosing this particular
field of study has been briefly explained. This was followed with an explanation of Allied
Bank and Bank AI-Falah as study object of interest Further attempts were made to link
both sub-areas and reasons were provided for the choice of study of PRP
implementation in both the Corporations (Zafar, 2015) Banks are also taking care for
the need of high productivity levels with efficient and effective use of financial resources
This not only minimizes the costs but also improve the ways of doing work. As in this era of
drastic change, high-quality productivity levels are pivotal; the need for employees’ motivation
is the core essence of the whole phenomenon Performance-related pay is one of the best ways
to do so, Almost all organizations use performance appraisal techniques, which little or more
differentiates in their setup However, the success depends on the harmony and integration
between the organization and its performance appraisal techniques (Zafar, 2015) It is important
to mention here that the learning curve of the foregoing process is always operational there.
8
Due to changing work dynamics and employees’ ownership programs, now the employees are
not merely the workers, they work for themselves as they share a part of ownership. The
proposed study seeks to answer the applied research problems related to the issues among
productivity, organization development, and required financial resources through correlation
and other sophisticated research analysis techniques (Perelman & Lourenço, 2015)
During this research work, the human resources and operation teams at ABL and Bank
Al-Falah were contacted. Preliminary information was obtained from them about the schemes
that provided the theoretical background for the research work. Most of this information was
obtained through telephone and email correspondence because at that time the researcher was
out of country. The management team was most helpful and cooperative throughout the
process. Due to this non-corporative behaviour of management team of ABL and Bank Al-
Falah, the researcher came back to Pakistan insistently. After that proper personal contact was
established with the management team for the administration of the questionnaire. Most of the
branches were visited during this period and the questionnaire was administered. Since the
researcher divided the rest of the time between two banks at Peshawar, it was possible to
complete the questionnaire and conduct the interviews as well. Most of the respondents
completed the questionnaire in a single day and some have requested for time. They were
instructed by cover letter not to write their names in order to preserve anonymity. The
management team and staff were thanked for their support and were promised a copy of the
results of the research. So this study is limited to only 2 selected banks of Peshawar. This
research study is that it would focus on the staff of selected 2 banks i.e. ABL and Bank Al-
Falah and business development/operation departments. However, ABL was more advanced
bank and they were expanding their business and branches in KP and profit wise it was going
satisfactory and the management had introduced performance related pay. Similarly Bank Al-
Falah was popular as a foreign bank in Islamic Banking and also they were offering very good
9
pay package to its employees. Therefore the researcher had chosen these two banks in Khyber
Pakhtunkhwa with the consultation of supervisor.
1.7 Significance of the study
Performance-Related Pay is one of the best ways to do so there are more than fifteen
methods of performance appraisal, which includes both the old and modern approaches.
However, how these methods are implemented and practiced in the organizations vary from
organization to organization and country to country as per their best fit. The researchers have
pinned down the most important field of the foregoing practice, i.e. Performance-related-pay,
Due to competition and an increase in demand for higher productivity levels, employees’
motivation is inevitable and performance-related pay is a way to embark on and maintain a
higher level of motivation in the employees Therefore, this study addresses the relationship
between productivity, organization development, and the required resources for executing the
process successfully (Mouhaffel, Redonda, Martín, Domínguez, & Arcones 2017). The topic
of study would concern Individual Performance-Related Pay (IPRP), referred to as PRP.
Individual Performance Related Pay is based on the performance exhibited by the employee in
a given timeframe. In addition, on this basis, increments and bonuses are decided. PRP is
increasingly being used as a critical tool to elicit, maintain, and reward high performance within
organizations (Nujjoo, 2018).
The reasoning of the research work sheds light on the motivations with this study and
the main causing factor for choosing this research framework. It answers questions on why this
particular research topic was chosen, especially within this context. Since many of the studies
cited in the literature review rely on the opinions of managers to assess the success of
performance-related pay, it was decided that this study would focus on the actual staff who are
the beneficiaries of the scheme and attempt to prove the validity of the other hypothesis, that
staff is happy and has positive attitudes towards the implementation of performance-related
10
pay. Employees in the organization seek to compare their pays with colleagues and also with
the quality and quantity of input they put in the work, therefore, the organization seeks to meet
their expectations in the best possible ways in order to attain their commitment towards itself.
So, this study will be helpful for policy makers and management team at any organization to
promote or introduce performance related pay in their organizations, because PRP is most
motivating factor for employees.
1.8 Problem Statement
Almost all organizations use performance appraisal techniques, which larger or little
differentiates in their setup. However, the success depends on the harmony and integration
between the organization and its performance appraisal techniques (Abbasi, 2018). Due to
changing work dynamics and employees’ ownership programs, now the employees are not
merely the workers, they work for themselves as they share a part of ownership (Abdullah,
2019). Allied Bank (ABL) and Bank Al-Falah private Corporations were chosen as the
organization to be studied because of its high visibility and profile in the Pakistan banking
sector. It had a known system of performance-related pay in place as well as its reward systems
are a big draw in talent recruitment. Therefore, it would be appropriate to examine the effects
of its existing pay and reward systems as a factor in motivating this talent to higher productivity
as it is reflected by the market performance of the company (Zafar, 2015).
This ensures that an unbiased opinion and data is taken from the individuals that
participate in it and illustrate the validity of the hypothesis. As1 the main purpose1 of1 this1 research1
study is that it would1 focus1 on1 the1 staff that is working1 in1 the1 branches1 and1 business1
development/operation1 departments1 of1 ABL1 and1 Bank AI-Falah and would1 attempt1 to1 prove1 the1
validity of the hypothesis that performance-related1 pay1 has1 been1 a1 main1 contributing factor for
the performance improvement in the organization development. The proposed1 study1 seeks1 to1
answer1 the applied1 research1 problems1 related1 to1 the1 issues1 among1 productivity,1 organization1
11
development,1 and1 required1 financial1 resources1 through1 correlation1 and1 other1 sophisticated
research analysis techniques.
1.9 Research Questions
The queries addressed by this research are given below
1. In the banking sector of Pakistan, whether there is a significant relationship between
performance-related pay and organization?
2. Is there a significant relationship between the degree of motivation and organization
development?
3. What is the relationship between job satisfaction and organization development?
4. To what extent positive attitudes and organization development are related to each other?
5. Whether there is a significant relationship between employee demeanour and organization
development?
1.10 Research Objectives
The study consists of the following objectives
1. To study the relationship between performance-related pay and organization development
in the banking sector of Pakistan.
2. To investigate the relationship between the degree of motivation and organization
development.
3. To know about the relationship between job satisfaction and organization development.
4. To find out the relationship between positive attitude and organization development.
5. To assess the relationship between employee demeanour and organization development.
12
CHAPTER 2
LITERATURE REVIEW
2.1 Introduction
A compromise position adopted by many organizations is to communicate ratings as
part of the performance review process and make pay decisions separately. This is possible
where there is no direct and immediate link between rating and pay increase or bonus. Where
there is a direct link then the practice typically is to communicate the pay increase after the
rating has been agreed, countersigned and fed into the pay administration system – still
providing a measure of separation – and another opportunity to get across some performance
messages ((Delbridge, 2019). This means that the performance agreement and review processes
can apart from a discussion on rating, concentrate on clarifying expectations, measuring
outcome and planning for improvements in the future. Few organizations see performance-
based pay as different from performance management review. However, in reality,
performance-based pay is one of the tools that come under the umbrella of a performance
management system (Brown, 2018).
Among various performance management practices, Performance-Related Pay (PRP)
is a highly discussed and most visible one. Peelle (2017) states PRP as “a generic term used to
describe a variety of payment systems that link employees’ pay to some measurement of
performance of individuals, workgroups or the organization to which they belong”. On the
other hand, the researcher further defined PRP as “the explicit link of financial reward to an
individual, group or a company’s performance”. The researcher also defines it as “a system in
which an individual’s increase in salary is solely or mainly depending on his/her appraisal or
merit rating” (Peelle, 2017).
The theory of "need", suggests that the intrinsic feature of the work causes employees’
13
satisfaction such as job responsibilities, accomplishments, and recognition. On the other hand,
reviewers warn that such compensation plans are mandatory and can encourage the wrong
types of behaviour, for example, by focusing on individual efforts and sacrificing teams (Al
Afari, 2017).
A debate has gone on for years about whether linking pay decisions to performance
management or appraisal contaminates the developmental and intrinsic motivational purpose
of such schemes. Those who dislike the linkage believe that performance assessments and
review meetings were so bound up with their financial implications that it is not possible to
have an open and constructive discussion about areas for development and improvement. Those
in favour take the down-to-earth view that once you decide to have performance-related pay
you must have a rating system (Al-Zu’bi, 2017).
The development of work systems offering workers a greater role in decision-making
and in increasing functional flexibility in recent years has focused enhanced attention on the
need to develop new pay systems. Innovations such as quality circles, briefing groups, total
quality management and team-working have resulted in a marked change in the way in which
work is done (Appelbaum, 2018). They involve workers taking more responsibility for key
aspects of the production process and, in particular, being more responsive to product market
pressures. Such changes not only empower workers in key areas, but also intensify the potential
for principal–agent divergences. There is, for example, evidence that workplace changes aimed
at increasing employee participation in decision-making are typically only successful in raising
organizational performance where they are associated with compatible gain-sharing
mechanisms (McNabb, 2019). It is, therefore, likely that the presence or absence of such
schemes at a workplace will have an impact on the PRP–earnings relationship, a factor ignored
in existing models (Lazear, 2017).
14
2.2 Operational Definitions
Every1 philosophical study contains1 an1 operational1 definition1 for1 the1 variables1 in1 the
research. An operational definition allows the researchers to describe in a specific way what1
they1 mean1 when1 they1 use1 a1 certain1 term.1 Generally,1 operational1 definitions1 are1 concrete1 and1
measurable.1 Defining1 variables1 in1 this1 way1 allows1 other1 people1 to1 see1 if1 the1 research1 has1
validity.1 Validity1 here1 refers1 to1 if1 the1 researchers1 are1 actually1 measuring1 what they intended to
measure. Simply, operational definitions can be defined as “The statement1 of1 procedures1 the1
researcher1 is1 going1 to1 use1 in1 order1 to1 measure1 a1 specific1 variable”. The conceptual definitions of
all key constructs are given below;
2.2.1 Performance Related Pay
Among various performance management practices, Performance-Related Pay (PRP)
is one of the most highly discussed and most visible one. Keeping in view the status of current
study, Performance Related Pay can be defined as the process that helps focus employees on
critical elements of their performance essential for organizational success. It also helps
motivate, recognize, and reward employees (Mohyeldin, 2007). High-performance
organizations always introduce the concept of pay-for-performance. It is a closely related, high-
performing corporate culture that is not only a rewards and benefits area. "Pay-for-performance
is a complex and diverse human resource process that aims to build an environment that
encourages employees and managers to stretch their goals and pay the best employees over
others." Pay by Performance " has been included in the corporate culture and cannot be used
as a separation of HR planning and HR processes as the main objective of being missed by the
rate of utilization - payment of employee performance has been achieved.
2.2.2 Degree of Motivation
The1 professional1 values1 of1 the1 employees,1 what1 they1 aim1 to1 obtain1 from1 their1 work,1 are1
essential1 to1 reaching1 performance1 in1 their1 professional1 activity.1 The1 degree of motivation is1 a1
15
subsystem1 of1 the1 axiological1 system.1 The1 professional1 values1 are1 composed1 of1 two1 dimensions1
which1 are1 important1 in1 the1 motivation1 of1 individuals1 in1 performing1 their1 job. According to this
research work conducted at ABL and BAF, 1 1 the1 operational1 definition1 of1 the degree of
motivation refers1 to1 the1 values1 which1 are1 directly1 connected1 to1 the1 task1 and1 from1 whose1
completion1 they1 should1 be1 obtained.1 The1 indicators1 of1 these1 professional1 values1 are1 the1
autonomy,1 variety,1 the1 degree1 of1 interest1 in1 the1 job,1 the1 possibility1 to1 learn1 new1 things,1 the1 use1
of1 one’s1 abilities1 and1 skills,1 meaningful1 work,1 the1 challenge,1 the1 innovation,1 the1 self-fulfilment1
through1 work.1 The1 extrinsic1 work1 values1 are1 defined1 by1 what1 the1 individuals1 want1 and1 search1
for/await1 from1 the1 organisation1 of1 their1 own1 work1 and1 from1 its1 context,1 in1 order1 to1 primarily1
fulfil1 social1 and1 physiological1 needs.1 The1 extrinsic1 work1 values1 are1 divided1 into1 two1 categories1
one1 which1 refers1 to1 the1 organisation1 (salary,1 work1 safety,1 benefits,1 promotion1 and1 promotion1
possibilities)1 and1 another1 which1 refers1 to1 contextual1 values-1 desired1 in1 the1 context1 of1 work1 and1
which1 include1 social1 and1 physiological1 indicators1 (health,1 safe1 work1 conditions,1 pleasant1
interactions1 with1 the1 workmates,1 management1 and1 subordinates1 etc.)
2.2.3 Job Satisfaction
The essential features for a job by which employees are satisfied include identification
of work schedule, variety in skills, and significance of tasks is defined as Job Satisfaction.
Satisfaction of job varies from person to person based on their attitude and behavior towards
their work. It may be affected by social and cultural values, management style, involvement of
labors, work position and empowerment. Organizations have a specific goal to achieve for
which they provide a basic framework to their employees where they work collaboratively to
fulfill their goal. The success and effectiveness of an organization can be enhanced by keeping
in view different factors regarding development. For an organization to be productive
employee’s satisfaction is one of the concerned issues (Bhatti, 2007).
16
2.2.4 Positive Attitude
Attitude is a little thing1 that1 makes1 a1 big1 difference.1 It1 is1 very1 important1 to1 know1 about1
different1 types1 of1 attitudes1 because1 of1 their1 importance1 in1 our1 life.1 Attitudes1 are1 primarily1 our1
response1 to1 1 1 people,1 places,1 things,1 or1 events1 in1 life.1 It1 can1 be1 referred1 to1 as1 a1 person's1 viewpoint,1
mindset,1 beliefs,1 etc.1 Our1 attitude1 towards1 people,1 places,1 things,1 or1 situations1 determines1 the1
choices1 that1 we1 make.1 The1 Persons,1 who1 will1 be1 possessing11 positive11 behavior,1 will1 explore1
good1 things1 in1 others1 and1 will1 not1 go1 after1 negativity.1 This1 type1 of1 attitude1 is1 comprised1 of1 some1
different1 factors1 i.e.1 moving1 forward1 with1 confidence1 and1 optimism,1 remain1 happy1 and1 cheerful,1
they1 dealings1 with1 others1 is1 comprised1 of1 Sincerity1 etc1 (Nadeem,1 2016).1
Thus,1 a1 manager1 wishing1 to1 release1 positive1 attitudes,1 satisfaction1 and1 implication1 in1
their1 internal1 costumers, must know the determinants of those attitudes. Among other
possibilities, job design and its motivational potential emerge as a tool for manager’s influence
the job satisfaction levels of their employees.
2.2.5 Performance Management
Yeh, Cheng et al., (2011) describe performance management as a process of crafting
employees’ attitude leading towards organizational performance.1 Armstrong1 and1 Murlis1
(2011)1 puts1 performance1 management1 as1 the1 achievement1 of1 personal,1 team,1 group,1 and1
organizational1 goals1 based1 on1 excellent1 ties1 of1 mutual1 interest1 of1 all1 the1 concerned1 parties.1
“Performance1 management1 is1 also1 about1 achieving1 the1 agreed1 upon1 objectives,1 which1 not1
only1 include1 organizational1 goals1 but1 also1 the1 personal1 goals1 with1 all1 the1 efficient1 inputs1 for1
the1 better1 management1 and1 utilization1 of1 available1 resources”. Some people, typically top
management with a little exposure to the realities of human resource management, regard
performance-related pay coupled with performance or merit rating as the total process of
performance management. However, as we hope we have demonstrated, performance
management goes much further (Drago and Perlman, 2019). However, research has shown that
17
to be acceptable at all, perform .1ance-related pay .1has to be based on some defensible systems
of performance rating so that when it is decided to relate to pay to.1 performance it clearly.1
forms.1 part.1 of the performance.1 management process.1 (Alsalem, 2016).
2.2.6 Employee Demeanor
Lambert and Hogan (2007) are of the view that performance cannot be defined through
a single dimension, its definition is satisfied when it is defined considering all the sufficient
factors. They also state that whether the defining objective of performance is the required
outcome or the desired employee demeanour. This points out a very pivotal aspect of
performance that it is not merely about the event of occurring the desired result but it is also
about how these effective results re-achieved. Keeping this in view, performance is the
employee demeanor, the desired exhibition of the actions whether as an individual, tam or the
organization. Employee’s demeanor is actually the way of work, a desired result, and it should
not be mixed with the quality of outcome as the outcome depends on many other systematic
factors. After defining the employee demeanour, it makes necessary allocation of efforts and
resources to fulfil the objective. While doing so i.e. enhancing the performance of the
employees, it injects the development not only in the employees but also into the organization,
which in other words known as human resource development and organization development.
These both are the core objectives of human resource management. Therefore, it infers that
development is the way performance management integrates into human resource
management.
2.2.7 Organization Development
According to Beardwell, J., & Calydon, T. (2007) Organization development can be
defined as the factors leads to increased job satisfaction level which in return makes workers
more committed to their job. This commitment and satisfaction give rise to career satisfaction
which is a positive sign of a secure future. In the light of present study, conducted at ABL and
18
Bank Al-Falah it can be said that in order to maintain organization development, bank officials
needs to be widely fair in their administrative activities. These include selection process of
employees, performance evaluation, compensation systems, conflict resolution, etc. It
enhances employees trust and commitment, improves job satisfaction and diminishes conflicts.
2.3 Introduction to Performance-Related Pay (PRP)
PRP implementation in any organization depends on various factors, if it is the best fit
it can be applied otherwise, not. The important factors to consider for the implementation of
PRP in any organization include culture, values, norms, and the expectation to achieve the
objective (Alsalem, 2016). The process of PRP, in the sense of its basis in performance
management, its capacity to clarify performance and development priorities and its use in
providing a tangible form of recognition, can become more important than the amount it pays
out. In some organizations, PRP has been considered necessary simply because of market
pressures and employee expectations that it is a part of competitive practice. (Appelbaum,
2018).
In order to be effective, PRP needs to offer. workers. a. significant. return. on. their. higher.
effort and commitment that would be missed in its absence. In short, workplaces are prepared
to incur higher wage costs for PRP workers in the hope of gaining a greater than commensurate
increase in performance (Whitfield, 2018). Furthermore,. to. the. extent. that. PRP. yields. higher.
work. effort. and. commitment,. it. might. be. expected. that. PRP. workplaces. would. show. better.
financial. performance.. This,. in. turn,. would. allow. such. workplaces. to. pay. its. employees. more.
than. those. not. operating. PRP. (Drago, 2019).
As PRP made inroads into the public sector where traditional incremental pay spines
were modified to allow some flexibility for PRP. Seiler (2018) stated that the incomes policy
era of the 1970s with its fixed incremental systems introduced in the private sector was
gradually replaced by PRP systems. PRP came into prominence during the 1980s in the UK as
19
a phenomenon of reorienting organizational work cultures into a more competitive and
entrepreneurial one along with other changed economic, political, and social circumstances and
managerial agendas. (Seiler, 2018).
According to Stewart (2018) PRP schemes grew up rapidly during the entrepreneurial
eighties aided by a steadfast commitment to a market economy which extended easily to the
belief that money is the best and sometimes the only motivator for better performance.
Moreover, PRP was enthusiastically adopted by both the private and public sectors as the
answer to various human resource issues. However, this blind embracing of PRP, without
sufficient thought to other schemes for improving productivity, resulted in a backlash against
PRP during the 90s when many organizations realized that PRP was not having the desired
results they had hoped for (Stewart, 2018).
Mature and streamlined second-generation PRP schemes are now being introduced by
many organizations. PRP is still prevalent among certain types of organizations like IT, where
high-performance knowledge workers predominate. There are several reasons why PRP
continues to be popular, especially in free-market economies (Osterman, 2017), which
includes, the increasing organizational emphasis on performance; the pressures cast by market
economies and enterprise cultures on productivity and profitability; the changes induced
incorporate values of rewarding performance; the pressures on employers to attract and retain
talent; the maturing of human resource strategic approaches towards corporate objectives and
individual aspirations; the increasing discriminatory powers vested with line managers for
recognizing and rewarding good performance (Appelbaum, 2018); and the weakening of
collective bargaining powers of trade unions and the strengthening of the individual
assertiveness in establishing worth. (Brown, 2018)
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2.4 Degree of Motivation
Performance-Related Pay schemes need careful implementation over a period of time
to achieve maximum effectiveness and acceptability. Top managers need to be carefully briefed
about what PRP can and cannot do. The following considerations are made in this review
process (Aslam, 2013).
Arguments about the advantages and disadvantages of individual performance-related
pay (PRP) have been some of the most hotly contested in recent decades. The topic has formed
the basis of numerous research studies and remains one, which attracts much controversy, as
was shown in recent debates about the introduction of PRP for teachers working in state
schools. Kwenin (2013) modernized the statement of Bailey and Fesslerr (2015) and consider
PRP as a flexible, cost-effective method of equitable reward distribution among different levels
of performance while helping achieve organizational objectives as well (Kwenin, 2013).
The design and development process of PRP schemes should provide a clear and
complete definition of what is required in terms of performance and what reward is associated
with that performance and an unbiased system for the evaluation of the performance. It also
provides a valuable reward in compliance with the expectations of the employees value-for-
money it means the PRP scheme must reap profits for the organization to such an extent that
they cover the cost of the scheme (Nujjoo, 2018).
Perumal et al (2018) revised the statement of Chenail (2012), he stated that put forth
certain questions that organizations should ask of themselves before they decide to implement
PRP. If an organization cannot answer these questions satisfactorily, one alternative could be
a ‘variable pay’ system, which only awards cash bonuses for people who have achieved
sustained levels of high performance (Perumal 2018).
Organizations have critically evaluated the implementation of PRP systems within and
identified certain flaws that were caused by too much enthusiasm and too little analysis. Some
21
of these flaws included perceptions that too much was expected from the system as the sole
lever for improving performance, and too great a focus on one-off, short-term improvements
in performance (Zareen, 2017).
Organizations are also guilty of failure to make explicit, the mission to be supported by
improved performance, and a deep-seated reluctance to address the considerable changes in
management behaviour and attitudes required in achieving better employee performance
(Zareen, 2017). There has also been a marked tendency to imitate other organizations, practice
or seek (largely non-existent) off the shelf systems rather than to design home-grown schemes
rooted in the organization’s requirements. From recent developments, it is apparent that
organizations are attempting to overcome these flaws by turning toward a more mature
approach to performance enhancement. Pay matrices are constantly being tooled in accordance
with market place realities and organizations are striving to integrate pay with all-round
personal and professional development. Although IPRP remains high on the human resource
manager’s agenda, employers are also beginning to emphasize other development issues,
behavioural competencies and target achievements for performance. Greater emphasis is being
placed on team results while retaining the thrust on delivered performance (Nujjoo, 2018).
Bakhshi and Kumar (2019) outline some possible reasons that organizations may have
to introduce PRP schemes. PRP schemes consider financial reward as a valued one and are of
the premise that employees value financial rewards when they are linked to their performance.
Nujjoo (2018) derives a pivotal distinction between the use of PRP as a motivational incentive
to manage performance and the use of PRP to recognize different levels of performance. PRP
may also help to motivate employees with limited opportunities for promotion or salary growth
(Nujjoo, 2018).
However, a system that is fair and objective in theory can easily fail to achieve these
objectives when implemented. An attempt has been made to tabulate the research works of
22
several writers who have studied the impacts of PRP implementation in organizations
(Perumal, 2018). Both positive and negative impacts and feedback have been mentioned.
References have also been drawn to literature that details reservations held against the theory,
principles and practices of PRP. In contrast with this, studies referring to the beneficial effects
of PRP on organizations and favourable opinions expressed have been given. General
concluding remarks at the end attempt to balance both opinions and modify the consideration
factors (Polat, 2017).
To Encourage Certain Behaviours
Al Afari and Elanain (2017) are of the view that the organization utilizes PRP in order
to link employees’ rewards with a specific set of required behaviours, which may include
customer service, creativity, and problem-solving etc.
To Help in Recruitment and Retention
Afari (2014) feels that PRP improves the attractiveness of salaries and thus, recruitment
and retention. Rehman and Haq (2019) state that PRP helps the organization to retain
talented workers as well as to offer lower pays to lazy workers.
To Facilitate Change in Organizational Culture
Alsalem and Alhaiani (2016) see PRP as the main player in creating a performance-
orientated culture in the organization by emphasizing quality, commitment, and effective
allocation of resources. PRP schemes also clarify old employee values that continued
employment is ‘contingent upon individual contribution’ (Alhaiani, 2016).
To encourage the Internalization of Performance Norms
Al-Zu’bi (2017) says that PRP encourages the internalization of the organization’s
goals or norms of behaviour among employees by rewarding the talented employees with
increments and punishing the lazy employees with lower pays. As Kwenin (2013) indicates,
this enables better management control over some aspects in the workplace. Furthermore, as
23
the pay is defined by the management’s decision of the level of required performance, the need
for bargaining by the unions vanishes out (Andersson, 2016) which eventually changes the role
of trade unions and limits their work to merely legal matters (Bakhshi, 2019). Nevertheless,
there is little evidence of a direct attempt by managers to dismantle collective bargaining
mechanism (Bakotić, 2017).
The increased Role of the Line Manager
PRP and appraisal schemes demand more quality inputs from line managers in terms
of feedback, evaluation, role clarifications etc. (Barsky, 2017). Line managers’ accountability
and discretionary powers also increase.
A Moral Justification
Barsky and Kaplan (2018) state ‘it is right and proper for people to be rewarded in
accordance with their contribution’ as this is considered ‘fairer’ than any pay awards that are
independent of management judgment.
Encouragement of Flexibility
Rewards can encourage a wider range of working practices and skills acquisition and
deployment (Campbell, 2018).
2.5 Factors to Be Taken into Account While Introducing PRP
PRP Match With the Culture
PRP scheme must comply with the culture of the organization. Otherwise, it is almost
impossible to embark on it (Colquitt & Rodell, 2017).
PRP Link to the Performance Management Process
The focus of PRP should be on issues, which emerge from the business planning
process such as profitability, productivity, cost-control, research initiatives, product and market
development and increasing shareholder value (Dick, 2017).
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Appropriate Balanced Performance Measures
PRP system pays against performance, therefore, the organization must have an
appropriate basis for performance measure. A good combination is a balanced approach, i.e.,
taking into account the inputs and outputs to measure the performance (Dundara, 2018).
Flexibility
It means that processes of performance management in the organization allow for
necessary adjustments whenever required. Flexibility is pivotal for PRP in the context that how
the reward is being awarded (Eigen, 2019).
Teamwork
As the PRP scheme injects the element of competition among employees, it
automatically affects team formation and operations. If PRP is poorly designed, it is a hindering
factor in all team projects, therefore, PRP should be taken into account for team performance-
based pay along with individual performance-based pay (Fatt, 2018).
Short-Term and Long-Term Goals
Success of organization paves its way through the achievement of short-term goals to
the accomplishment of long-term goals. PRP scheme should align itself with this philosophy
of organizational success by taking care of both short term and long term objectives (Imani,
2019).
Design Process
PRP scheme often contains elements of hit and trial. While doing so, they may
drastically affect the core organizational strategy and philosophy. The design of the PRP
scheme must account for organizational strategy and must have an integrated provision for
alignment with the overall business philosophy (Iqbal, 2018).
25
The Balanced Scorecard
Contributing to the field of performance management, Iqbal and Kamran (2018)
developed a balanced scorecard to have a holistic overview of the organizational performance
rather than utilizing traditional tools and techniques. Utilizing balanced scorecard, the analysts
measure and analyse the performance of the company through four different yet interrelated
and interdependent perspectives
Learning and Development Perspective
This perspective asks the questions regarding the learning and growth capabilities of
the workforce, so they can put their best to increase productivity. The strategic objectives may
include the enhancement of the skills of employees and making them familiar with the latest
Standard operating procedures (SOP) (Malik, 2017).
Internal Perspective
This perspective asks the questions regarding the business processes execution and
working in the organization. It addresses whether the business is capable to adopt the latest
trends and changes or not. The strategic objective may include the business processes’
capability to cope with increasing demand and the latest technology. The attainment of the
objectives of the Learning and development perspective aids the internal perspective as per the
construct of a balanced scorecard (Mihdar, 2017).
Customer perspective
This perspective asks questions regarding the satisfaction of the customers. As per the
construct of a balanced scorecard, the better the internal business processes the more satisfied
are the customers (Colquitt, 2017).
Financial Perspective
This perspective asks questions regarding the financial health of the organization. The
strategic objectives may include the agreed-upon numbers in revenue generations and various
26
business acquisitions. Traditional tools are used to measure and review the strategic objectives
of the financial perspective. Moreover, as per the construct of a balanced scorecard, the more
satisfying the customer, the better is the financial health of the organization (Colquitt, 2017).
In real-world scenarios, Shell has a performance management system of a balanced
scorecard that measures a range of business objectives against achievements and cascades it
down through the organization to each individual as performance ratings; these are then
converted into different forms of performance pay (Hansen, 2018).
2.6 Definition of Reward
Harris (2017) define reward as “all forms of financial returns and tangible services and
benefits employees receive as part of an employment relationship”. Hamukwaya (2014) states
than an Employee Reward System “consists of an organization’s integrated policies, processes
and practices for rewarding its employees in accordance with their contribution, skill and
competence and their market worth. It is developed within the framework of the organization’s
reward philosophy, strategies and policies and contains arrangements in the form of processes,
practices, structures and procedures which provide and maintain appropriate types and levels
of pay, benefits and other forms of reward”. (Alsalem, 2016).
2.7 The Importance of Reward Management
Reward management is a very important mechanism, as it contains various incentives
and compensations; monetary and non-monetary, for the workforce. These may include
bonuses, trips, recognition certificates, increments, honors, promotions, career development
etc. A good reward management system in any business has many advantages, especially in
small and medium-sized organizations where managers must have a good relationship with
employees. Incentive programs have proven to be very successful in mobilizing motivated
employees and thus improving performance in our organization holistically (Alsalem, 2016).
27
Mutual Benefit – It means where the reward system satisfies the needs of the
employees, it also satisfies the requirements of the organization by increasing the commitment
of the employees with the organization. With a reward system, employees feel more committed
to their work and their productivity is increased. Improving productivity is benefits the
organization (Al-Zu’bi, 2017). Therefore, a reward system is mutually beneficial, both for
employees and organizations. Motivation an incentive system that motivates employees to
rewards employees through the exchange of goals and objectives. A retired absenteeism system
is to reduce absenteeism rates. Employees, who do a great job of being rewarded, if there is a
reward system, are not so vulnerable to sickness and work not shown in the ringing. There is
also a rewards system where employees are more aware of the organization of the relevant
indicators and goals as they achieve certain goals when rewarded. Therefore, with a reward
system that encourages them not to work so easily. A system of loyalty rewards improves
employee loyalty to the organization's work. It is important for an organization that employees
are thinking of being valued by a rewards system and knowing their opinions. The more the
satisfaction of the employees with the features of the reward system, the higher is their
motivation and commitment with the organization (Akhtar, 2015).
Having a reward system that provides rewards and recognition to employees is to boost
their morale. Encouraging employees to meet their specific goals are provided with all the
required sources that embark on the process of motivation and commitment in them. As the
morale of employees grows, the performance of the organization flourishes eventually.
Moreover, the credit goes to the reward system of the organization (Imani, 2019).
2.8 Reward Management
Reward-managed business organizations include not only financial incentives such as
pay, but they also include non-financial incentives such as employee recognition, employee
training/development, and increased job responsibilities. A business organization in reward
28
management deals with the design, implementation, and maintenance of incentives designed
to improve the performance of the business organization (Imani, 2009).
The main purpose is to reward the management of the organization in business to
reward the employee’s considerable work they have done. The main reason business
organizations that exist in reward management is to motivate employees in that particular
organization to work hard and to try their best to achieve the goals set out in the business (Iqbal,
2013).
A business organization that rewards management is essentially based on how the
business practices and tools are specific to business practices .1 an.1d.1 po.1lici.1es t.1h.1at re.1war.1d
em.1pl.1oye.1es a.1t a.1 fa.1ir stand.1ar. 1d an.1d follow.1 ho.1w t.1h.1e o.1rgani.1zatio.1n w.1ill.1 value it. Reward
management in a business organization usually includes business analysis and employee
compensation and other benefits for employees (Imani, 2019).
2.9 Reward Management and HRM Strategy
Imani et.al. (2009) considers reward management as one of the pivotal parts in the
human resource management system and suggests a well-defined policy for it as an inevitable
success step. Most of the human resource management designs suggest that to create harmony
and liaison with employees, handsome pay is the best way to go for. Jackson and Schuler (2011)
claim that in order to achieve HRM goals of commitment, flexibility and quality, excellent
reward management policy is the way (Jackson, 2011). The authors further say that employee’s
commitment is very essential to the organization in this competing era, therefore, organizations
look for various ways to value its employees and to fulfil their needs and interests. Employees
in the organization seek to compare their pays with colleagues and also with the quality and
quantity of input they put in the work, therefore, the organization seeks to meet their
expectations in the best possible ways in order to attain their commitment towards itself. For
this task, human resource management and teams design and discuss various policies and tools
29
to assure equity in the pay system (Jackson, 2011).
2.10 Reward structures and schemes
It can be seen that an indiv.1idual’s reward packa.1ge is typi.1cally based around tw.1o
components a sala.1ry or wa.1ge component an.1d an incentive-ba.1sed com.1ponent. Jayarathna
(2015) explains that the balance betw.1een the sala.1ry and inc.1entive comp.1onents w.1ill vary for
the different occupational sectors, organizations, jobs, employees, and skill acquisitions.
2.11 Reward Management and Organizational Strategy
Jayarathna (2015) indicates several areas where reward management may influence and
in turn be influenced by organizational strategy. These include
2.11.1 Achieving Competitive Advantage
Glaxo Wellcome PLC sets its reward structure at the top of the market range in order
to attract excellent quality and talent in staff that gives them their competitive advantage.
Cutting-edge technology software companies pay top money to attract talent (Jayarathna,
2015).
2.11.2 Emphasize Performance
The global marketplace and its increasing competition forces have ensured that
organizations begin to encourage employees to share the risks in business. John Lewis
Partnership employees receive pay rises commensurate with the firm’s performance, as do
NatWest employees. BP-Amoco rewards employees for on-target performance. Scripps Health
hospital uses pay performance to improve employee efficiency.
2.11.3 Encourage Flexibility in Working Practices
As it is seen by the introduction of skill and competence pay `in SKF, Bank of Scotland,
Triplex Safety Glass (Jayarathna, 2015).
30
2.12 Developments in Reward Management
Various case studies have been conducted that emphasize and study the impact of a
variable pay system on the health of the organization. Performance-related pay plays a pivotal
role in designing and defining the demeanour of not only individuals but of a group and the
organization, both private and Public (Jayarathna, 2014).
Jayarathna (2014) in their paper suggest that as this is an era of rapid change, therefore
in order to comply with this, organizations need different levels of performance by the
employees. Moreover, to get that performance they tie rewards to them. As the levels of
performance changes, the reward system must be adaptable to that change in a better way
(Jayarathna, 2014). Jerome (2013) also supports the foregoing practice and names it as a
revolutionary one. He termed it revolutionary because with time the reward system has been
changed completely from the one it was once. Earlier, the reward system did not account for
contribution or the quality of performance and now with the latest revolutions, it does.
Jackson (2011) criticized that in the organization based in Canada, the UK, and the US,
this practice is more than any other country. The organizations there link the needs of the
employees with their goals, which eventually lead to a much-customized reward system. In the
UK and North America, performance-related pay is part of almost every organization. The
foregoing approach and say that such a revolution does not promote organizational culture
rather it customizes itself according to the needs of the individual employees. A survey of 316
Canadian companies found that 74 percent of employers offered performance-related pay
arrangements (Jackson, 2011). The current research revolves around whether performance-
linked pay practices are a qualitative change from past management strategies representing a
more proactive and strategic HR approach as opposed to an ad hoc, reactive response
(Jayarathna, 2015).
31
Another point is, when we review the literature related to performance management, it
infers that these highly customized reward systems are not new; they were there since earlier
with no or very little identification. This is supported by the data and documents, which date
before the Industrial Revolution in eighteenth-century Britain. In the 1960s, to increase
productivity in order to cope with the demand of that time, it was recommended to link the
quantity of output by the employees with the rewards, which leads to the idea of the rate per
piece etc. The current form of reward system dates back to the 1980s and 1990s in Britain and
North America. Such a system originated from the political movements that ask for a variable
pay rate to comply with the efforts of the employees. In other words, they said one must earn
for what one performs. In the 1980s, Thatcher government supported the movement of linking
pay with the performance or, in other words, with the level of input and output by the
employees in order to satisfy the needs of both the organization and that of the employee. They
opposed the system of annual pay and increments (Jayarathna, 2015).
Kangasniemi and Kauhanen (2013) conducted a study and emphasized that human
resource management is a key factor for the success of organizations. They worked on the
determinant of the motivation of employees including reward. They use a questionnaire among
250 employees in diversified sectors. They found that reward has a great impact on the
motivation of the employees (Kauhanen, 2013).
Explored the Malaysian hotel industry to measure the impact of the reward system on
job satisfaction. They concluded that financial rewards impact job satisfaction which results
in a further high level of productivity (Karim et al., 2012). Reward and creativity relationship
was researched by Malik et al. (2017) and found that reward and creativity depend upon the
individual differences and there is no direct relationship. A comparative analysis was carried
out by Khan et al. (2010) in commercial banks of Pakistan and more accurately in the Kohat
city. They found that promotion is most important in employees’ motivation as compared to
32
the reward system. A case study was carried out in commercial banks of Pakistan by Malik and
Naeem, (2011) which also concluded that there is a positive relationship between reward and
employee motivation. The value of the relationship is 0.543 between these two variables.
Internationally, a study is carried out in the Oil Company and found that a fair reward system
is the main factor of employees’ motivation (Moyes, 2011).
Mohyeldin et.al. (2017) report that during the late 1980s, most of the firms (around
50%) were practicing employee ownership programs in order to motivate them and to tie their
interest and commitment to the company. This concept got so popular that the number of firms
to follow this practice increased drastically. IRS, (1994-95) reports that in 1995, 10% of the
employed force was engaged in the process of PRP (Mohyeldin, 2017).
Jerome (2013) suggests that the latest studies have identified the negative impact of
privatization. They are of the view that privatization not only reduces labour pay rate but it also
focuses only on this aspect rather than productivity. They want to save through pay cuts rather
than expand.
Jha (2013) argues that in the current era, cultural differences in the organization are
inevitable. A diverse workforce is part of every organization. In order to cope with all the issues
arising from a diverse workforce, alternative pay systems have been introduced that modify
according to the needs of the workforce.
Kang (2011) talks about the contingent rewards system. Such a reward system has
solutions for emergency or as the need may arise. These contingent reward systems come under
the context of contingent planning. Performance-related pay covers the foregoing contingency
in a better way, as the characteristic of being contingent is automatically integrated with PRP.
Furthermore, Kangasniemi (2013) claims the changes in PRP and says that it has moved on
from the traditional reward system and focuses on the achievement of the near future results
by improving performance through the dictation of employees’ demeanour.
33
Kersley (2019) is of the view that the PRP is characteristic of being highly individually
customized leads to a specific culture in the organization-a culture of growth and learning.
2.13 Rewards and the Elements of HRM Cycle
Reward management is a part of performance management, which in turn is a pivotal
part of human resource management. Khan (2010) is of the view that employees get satisfaction
when their reward is satisfactory and conversely. Therefore, he implies that reward
management is related to other aspects of human resource management. For example, while
hiring, the pay package is an important factor to consider by the candidate who is talented. PRP
also motivates employees to excel more. As the employees know that they are rewarded for the
performance they exhibit, they are more willing to enhance their performance and wish to
undergo the process of training (if required). Last but not the least in this context, a biased free
appraisal system must be there in function in order to successfully run the PRP (Khan, 2010).
2.14 Pay Forms as Part of Reward Management
Kristensen, (2014) highlights the importance of the pay package. He claims that the pay
package is not only the deciding factor for an applicant to join the organization but it also serves
as a liaison between the employee and the employer. It is also a depiction of the value of work
by the employee as it is derived from the market rate, labour market situation, and the
importance of the required job for the organization (Kristensen, 2014). Regardless of its impact
on all features of HRM strategy and policy, the reward management looks to affect payment
methods most as monetary rewards are the most observable and discussed aspects of reward
management (Kumari, 2011).
Kvaløy (2012) explain that as part of rewarding employees, organizations sometimes
adopt a strategic, integrative and flexible approach to pay in order to address changing
commercial realities and employee expectations. Kwenin (2013) terms this ‘new pay’ which
concentrates on individual performance-reward contingencies in a unitary framework,
34
compared to the ‘old pay’ outlined by Kwenin (2013) which reflects a pluralist approach and
the use of grade structures, hourly payment, and seniority-based financial rewards, and
benefits.
Lambert (2007) refer to monetary variables as a key component in the more recent
‘process’ theories of motivation. A large number of organizations in Britain and North
America are trying to practice PRP through piecework, bonus schemes, commissions, or other
forms of merit pay.
2.15 Paying for Performance
The process helps focus employees on critical elements of their performance essential
for organizational success. It also helps motivate, recognize, and reward employees. High-
performance organizations always introduce the concept of pay-for-performance. A closely
related, high-performing corporate culture is not only a rewards and benefits area. "Pay-for-
performance is a complex and diverse human resource process that aims to build an
environment that encourages employees and managers to stretch their goals and pay the best
employees over others." Pay by Performance " Has been included in the corporate culture and
cannot be used as a separation of HR planning and HR processes as the main objective of being
missed by the rate of utilization - payment of employee performance has been achieved (Leow,
2015).
2.16 The Reasoning for Performance Pay
Many organizations see paying for performance as a critical element in increasing
‘added value’ from their workforce. The deterministic view of money as a motivational element
has its roots in the scientific management methods of F.W. Taylor. The instrumental theory
provides a more sophisticated rationale that money is a powerful motivator in symbolizing
intangible goals. The business theory argues that it makes market sense to maintain earnings at
a competitive level compared with other companies. The social theory argues that it is right
35
and proper for people to be rewarded in accordance with their contribution (Leow, 2015).
2.17 Positive Attitude towards Performance Related Pay
The writers of the IPD’s executive summary commented that these high performers
were probably the precise type of employee that many employers may wish to nurture and
develop (Lazear, 2017). Several research studies have been produced to demonstrate the
positive results of PRP in public sector services like schools, higher education, and NHS. The
1998 IPD survey is often quoted while illustrating the positive impacts of PRP (Lavy, 2015).
PRP systems often become obsolete in organizations where objectives change very
swiftly. Employees are discouraged from challenging established norms or creative thinking.
PRP systems may also turn out to be too costly for organizations. The threads of criticism
against PRP continue to run through the works of other writers as well. Reservations about the
effectiveness of PRP as a factor in improving organizational performance include fears of
demotivation and unfair treatment (Lazear, 2017); having de-motivational effects; being an
inhibitor of performers and detrimental to teamwork; and lack of concrete evidence that it
promotes productivity (Leow, 2015). PRP has also been accused of evoking negative feelings
among staff including jealousy, mistrust, and accusations of favouritism (Ljungholm, 2015).
Malik and Naeem (2017) were unable to conclude that PRP was a motivator in their
research conducted on behalf of the Institute of Personnel Management and the National
Economic Development Office. McNabb (2019) of the Institute of Manpower Studies
concluded that PRP fails to improve staff achievement and often leads to a downward spiral of
demotivation.
A number of recent research projects have cast doubts on the impacts of paying for
performance. Research studies based on the impacts of PRP on improved productivity however
have also failed to prove substantial causal links. López (2014) have failed to establish concrete
evidence of the positive influence of PRP on productivity. Lotfi (2013) also find links between
36
productivity and PRP “obscure”.
Lucifora and Origo (2015) of the Institute of Manpower Studies found no tangible link
between improved company performance and PRP. A survey of BT executives carried out by
the Society of Telecom Executives (the BT management/professional trade union) revealed
that only 6% of respondents thought PRP improved their performance against an overwhelming
70% who thought it had not. MacIntosh and Doherty’s (2010) research for the Inland Revenue
Staff Federation found only a very modest positive motivational effect by PRP on staff.
According to Madrigal (2012), other research, including that conducted by Malik (2011), has
suggested that performance-related pay, far from rewarding performance, is the demotivating
staff.
A research project conducted by Mihalič (2018) in the Inland Revenue unveils that yet
the PRP gets general support from the members of the organization but it fails to increase the
motivation among them. Most of the employees believe that PRP introduces competition and
inhibits cooperation among them and they believe that it is the way through which management
fulfils its objectives in the name of employees’ welfare. For the foregoing reasons, PRP has not
been a successful idea to practice in the public sector.
Commenting on this, Mihdar (2013) draw two main conclusions from evidence of given
research studies i.e., that research studies that highlight both the positive and negative impacts
of PRP upon productivity so it is difficult to opt for one or the other; and the complexity of the
subject makes it extremely difficult for researchers to identify cause and effect factors of PRP
(Mihdar, 2013).
Although these disadvantages may appear to be formidable, and the messages from
much of the academic research negative, the fact remains that in many organizations, as shown
by the 1998 IPD survey, the advantages of PRP are perceived as exceeding its disadvantages.
Many organizations even while questioning the effectiveness of money as a motivator, feel it
37
is fair to pay people according to their contribution. The drive against incremental systems has
taken place because management does not see why they should pay people more simply for
being there and incremental systems become explicitly associated with unmotivated
performance (Mihdar, 2017).
Another powerful argument for PRP is that it is a lever for cultural change in the
direction of accountability for results and orientation towards high performance. The most oft-
quoted reasons for introducing PRP given by personnel managers interviewed during the
IPM/NEDO study was that it delivers a strong message about the expectations of the
organization. The strong argument in favour of PRP is that it rewards high performers and
punishes low performers; therefore, it draws a clear line between talented and non-talented
employees and eventually helps in retaining talented ones. Moreover, although PRP is not
considered as a great motivator, yet it attempts to motivate the employees to work harder in
order to get the reward against the required level of performance. It implies that PRP depicts
that high performance is pivotal and valuable to the organization. The ultimate question that
many organizations have had to answer is ‘What’s the alternative?’ If you do not want to pay
everyone in a job the same irrespective of their contribution, or if you dislike the notion of
paying people for ‘being there’ as in a service-related incremental pay system, then you have
to consider some form of contingent pay. Nevertheless, if you do take that route, it is essential
to consider with great care the criteria for PRP (Mohyeldin, 2007).
The arguments most frequently levelled against PRP are i.e. Its effectiveness as a
motivator can be questioned – there is little firm evidence that people are motivated by their
expectations of the rewards they get from PRP, especially as these are often quite small.
Financial incentives may work for some people because of the expectations that they are
rewarded well, are high. Such individuals tend to be well motivated anyway. But the
employees, who are not sure that they are rewarded against their performance in a fair manner,
38
are not motivated by the PRP system. The rating method which is used in PRP doesn’t take
into account the objectivity of the performance; it is rather subjective in nature which
eventually leads to biasness and unfair evaluation based on the beliefs of the ratter (Mouhaffel,
2017).
It inhibits the process of innovation and creativity as the employees focus more on doing
the task in a defined way to achieve the required number of output in pursuance of reward.
Collaboration and cooperation among the employees reduce as they indulge in competition to
perform better than others to get the reward. If PRP is not well designed, it may cost the
organization as it may confer employees with rewards on the basis of performance yet to be
actualized (Moyes, 2011).
Despite the foregoing concerns for the PRP process, it is possible to implement and
practice PRP successfully, as is argued by Mullen and Frank (2010). They say PRP works
smoothly and successfully if it is the best fit for the organization otherwise not. The issue arises
when the HR department confers the PRP system as the sole answer to all of the issues related
to organizational performance and the required change. In reality, it is not the mere solution to
all of the performance-related issues rather it is one of the tools that addresses and solves a
limited number of problems (Mullen, 2010).
Nujjoo (2018) offer several suggestions in dealing with common reservations held
against PRP implementation. Chief among them is advice to organizations not to consider PRP
as the only motivational factor for employees. They advise organizations not to expect too
much from PRP within specific cultural contexts, because, in certain work cultures, financial
motivators may not be sole contributors to performance enhancement. Other types of financial
and non-financial rewards also need to be considered (Nujjoo, 2018).
PRP schemes can be a powerful tool in enhancing productivity if organizations are clear
about the objectives behind their administration. Researchers emphasize that organizations
39
have to analyse the various supporting factors such as existing work culture and environment,
results desired, current abilities of line managers, inherent employee relations atmosphere etc.
before deciding on the implementation of PRP. In addition, they also rightly point to the
importance of careful implementation and lengthy preparation before the installation of a
scheme. If the organization decides to go ahead, then sufficient care must be given to the overall
design of the PRP scheme as well as to the process elements within. They suggest that
organizations pay more careful attention to the administration of PRP schemes including the
transparent, reliable and fair appraisal and rating systems; better performance assessment
methods and ratings; well-designed pay matrices; proper discretionary powers and
accountabilities of line managers in administering PRP schemes fairly; and prioritized team
performance over individual performance (Osterman, 2017).
Also once administered, PRP schemes must be continually evaluated for their
effectiveness and must be updated to keep up with changing work environments, corporate
goals, employee aspirations, and market place realities. Moreover, Parvin (2011) claim that
merely PRP should not set accountable for the success or failure of the organization. The other
factors and setups must also be taken into consideration. The one advantage that PRP offers
beyond criticism is that it ties the interest of the organization with the interests of the employees
and makes the organizational priorities their priorities. The organization can make the
employees realize the urgency and importance of work by tying it to rewards for the next
period. PRP not only makes the employees know about the organizational objectives but it also
boosts the process of achieving those objectives by tying them with rewards for the employees.
And eventually, the attainment of such objectives makes the organization successful. It is
important to mention here that PRP rewards certain performance outcomes, therefore when it
is coupled with other rewards mechanisms for rewarding the outcomes (that are not covered by
PRP), the organization's success is assured (Parvin, 2011).
40
2.18 Negative Aspects of PRP – Unfavourable Arguments
In the 1980s and 1990s, PRP schemes faced a great amount of criticism from the
practitioners. The practitioners were mostly HR managers and consultants. They oppose the
implementation of PRP by highlighting its negative impacts on the organization. Occupational
psychologists believe that PRP is not capable to motivate the employees positively rather it
introduces competition and leg-pulling (Patten, 2017), on the other hand, sociologists also
believe that it is the way through which in reality management fulfils its objectives while
canvassing them as it is honouring the employees by providing them decision and work
autonomy. Another study identifies that PRP introduces the causes of gender inequality through
the structure of its pay mechanism (Peelle, 2017).
For management thinkers such as Parvin and Kabir (2018), who advocate total Quality
Management approaches, PRP represents the wrong kind of initiative to introduce (Parvin,
2018). Their philosophy is based on the substitution of ‘leadership’ for ‘supervision’, removing
organizational hierarchies, and managing people with as little direction and control as possible,
whereas PRP reinforces the hierarchy, enhances supervisory power and strengthens
management control (Perelman, 2015).
For many critics, PRP has fundamental flaws, which cannot be overcome. Perumal
(2018) argues that incentives can only succeed in securing temporary compliance but cannot
change underlying attitudes, resulting in long-term damage to the health of an organization
Managers who insist that the job is not be done right without rewards have failed to offer a
convincing argument for behavioural manipulation. Promising a reward to someone who
appears unmotivated is a bit like offering saltwater to someone who is thirty. Bribes in the
workplace simply cannot work. (Perumal, 2018).
Polat (2017) writes that the practical logic behind PRP does not account for several
worker behavioural characteristics in an organizational setting such as the need for approval
41
etc. He further launched an attack on pay for performance systems because they caused conflict
(Polat, 2017). The Office of Manpower and Economics accepted the conclusion of the National
Board for Price and Incomes that such schemes may lead to wage drift despite good managerial
controls. Prendergast (2015) accused “pay” for performance schemes as causing a reduction in
employees’ intrinsic motivation.
The second stream of criticism is more moderate, arguing that PRP can have a role to
play in organizations, but its positive effects are limited. Authors like Pugno (2010) feel that
PRP encourages narrow focus, undermines team working, creates disparities between
employees own perceptions of their performance and actual assessments, resulting in
demotivation. This causes a bad impact on the motivation of the staff, which is unexceptional,
but loyal and valued – the people on whom the organizations depend the most (Pugno, 2010).
2.19 Possible problems with PRP
The disadvantages of performance-related pay systems seem to be formidable and most
of the messages received from academic research tend to be negative. Organizations can expect
to encounter several problems with the implementation of PRP. These include (Pugno, 2018)
Expectancy Theory of Motivation
The expectancy theory of motivation tells about the pattern of thought related to work,
performance and reward. It says that employee believes that if he or she puts an effort into the
work, he or she performs well. Moreover, when he or she performs well, a reward is there for
her or him. Moreover, the employee expects that this reward is of value to him or her. In this
theory, it is important to mention that if the reward is of no value to the employee, then the
motivation of the employee drops to zero, in fact, it can negatively affect his or her motivational
level. Therefore, according to expectancy theory, the value of the reward to the employee is of
core importance and cannot be denied at any cost. The other important aspect is that effort must
42
result in performance as per the belief of the employee in order to initiate motivation. However,
many factors can modify this relation of effort and performance (Rahman, 2015).
Rahman (2019) while talking about PRP says that employees like it when their higher
level of performance is being rewarded. Moreover, he also says that employee-excelling
capability to do work is affected by many factors as discussed above. It is also important to
mention here that it is not always necessary that employees only value the monetary or cash
related reward, the value given to the reward by the employee depends upon his or her
personality, interests, and needs (Rehman, 2019).
Displacement of Objectives
The assessment of PRP awards may rely on the use of proxy measurements of
performance quality, which may not closely or fully reflect the actual quality of performance,
and the proxy measures may become ends in themselves. Being seen to be a high performer
may not reflect higher levels of performance. Employees may determine that the basis of their
psychological contract has changed from relational to transactional, and therefore act in relation
to a transactional type of contract (Rajasekar, 2013).
There is also some evidence that performance-based pay schemes can discourage
behavior that is not directly financially rewarded and ‘extra’ to their formal role but crucial to
the smooth functioning of the organization (Rehman, 2015). This behaviour has been termed
organizational citizenship. Renfors (2017) highlights how reward schemes in organizations that
are designed to affect one type of behaviour can in actuality encourage other undesirable types
of behaviour (Renfors, 2017).
Undermining Esprit De Corps
When PRP rewards high performers and does not motivate the low performers then the
team spirit gets affected in a very negative way, there fosters an ambiance of competition and
jealousy rather than cooperation and collaboration. An employee’s performance does not
43
happen in isolation from the behaviours of others and almost always depends on the
cooperation of others within the organization. This whole process of undermining the team
spirit eventually affects the organizational outcome negatively by focusing more on individual
outcomes. The organizational outcomes get affected due to the lack of cohesion among the
teams and departments due to PRP's inherent design features (Rogers, 2010).
Reinforcement of Control
PRP allows the management to dictate its objectives to the employees by linking
rewards to them. It implies that what to do, how much to do, and what is the rewards, all lies
in the management hand, yet, whether the required level of performance is achieved or not
eventually depends upon the employees’ is and efforts to excel at work (Abbasi, 2018).
Issues in Measuring Individual Performance
Elanain (2009) says that while assessing individual performance, it is quite difficult to
decide which factor or which method of appraisal is to be applied, and the task becomes more
difficult when there are multiple factors to consider.
Financial Constraints
PRP system pays against performance. This implies the raise of expectations by the
employees regarding how much more they are rewarded if they perform well. The issue that
arises here is whether the increase in pay as per the required performance is satisfying
employees’ expectations or not. If the increase in pay as per the required performance is not
satisfying the employees’ expectations, they are get demotivated, and eventually, the
performance is decline. Moreover, which in turn makes the PRP implementation useless
(Elanain, 2009). Furthermore, while rewarding employees, the cost of doing so are escalated,
which in turn forces the management to tighten the conditions and limit the number of
employees for the consideration of reward. Moreover, the 1998 IPD performance pay survey
44
results show that 75% of the respondent believe that they are not satisfied with the reward
against their performance (Adams, 2015).
Affecting Intrinsic Motivation
PRP affects intrinsic motivation as its focus is on external motivators such as financial
rewards. The lack of focus on intrinsic motivators causes issues for the employees whose
source of motivation is internal, for example, an employee who gets satisfied with the quality
of work irrespective of financial reward, cannot be satisfied with the financial rewards related
to the quantity of work (Akhtar, 2015).
2.20 Types of Paying-for-Performance Schemes
There are many ways on which pay is given against the performance. This pay can be
in the shape of bonuses or increments etc. Most of the time, the pay is given against the
performance in the previous period. Akram and Hashim (2015) identify two distinct varieties
of schemes.
Merit-Based Systems
In the merit pay system, the role of a supervisor is of core importance. The supervisors
evaluate their subordinates against some specific standards and collaborate with the HR
department for a full review. The HR department, with the help of direct interviews with the
employee, and with the rating of a supervisor, assesses the performance of the employee. Based
on this assessment, the HR department defines the future pay of the concerned employee
(Akram, 2015).
As a merit-based system consists of an assessment by the supervisor, there is a great
chance for nepotism and negativism as well. Any personal issue with the supervisor may
drastically affect the evaluation. There is also a chance that any recent good or bad event may
affect your evaluation by the supervisor. These are some drawbacks of a merit-based pay
system (Akram, 2018).
45
Goal-based systems are defined by the achievement of goals, which are clearly stated;
therefore, the chance of subjectivity is quite low. However, they are not suitable for all kinds
of jobs as the jobs differ in their nature. Most of the employers tie the interest of their workforce
with the organizational objective. It means if the objective is achieved, a particular interest or
need of the concerned employee is fulfilled. This is usually done in order to motivate the
employees so that in pursue of their needs, they fulfil the objective of the organization also
(Afari, 2014).
Such a system is very handy and useful, as everything is clearly defined. For example,
the company says to the employee that in order to have a visit to the country of your interest,
you have to achieve a target of 5000 sales of units. In such situations, where the performance
is measured against a level instead of measuring against the organizational objectives, the goal-
based approach is not very useful. The foregoing is some of the points which must be
considered for deciding whether the implementation of a merit-based system is better or the
goal-based system (Afari, 2017).
2.21 Job Satisfaction
Many researchers agreed with the fact that the degree of satisfaction and turnover rate
of employees is inversely related to each other. It means that when the essential requirements
of employees are accomplished within an organization, they are surely working there without
any intention to leave their job. According to the research, the top contributors regarding job
satisfaction include respect and honour that are given to all employees, rewards/benefits,
compensation and security of a job. These contributors act as a baseline for gaining a high
satisfaction level. Ensuring these elements can lead to a more stable and well-established
organization (Bakotic, 2016).
The perception of employees varies about the level of satisfaction. There was an
organization that provides the same facilities to all employees, but it gives rise to different
46
results regarding satisfaction. Some employees are satisfied while others were dissatisfied with
their job (Moyes, Shao & Newsome, 2011).
` Workforce satisfaction can be enhanced with good job opportunities, high salary, and
good relationship among employees, appropriate training sessions, career development, and a
better working environment. These help organizations work more effectively (Moyes, Shao &
Newsome, 2011).
The success level of an organization is dependent upon the satisfaction level of its
workforce. There is a strong link between job satisfaction and different organizational events
that might include performance, moral values, leadership, conflicts, and incentives.
Organizations produce quality products only when their employees are satisfied with their job.
This satisfaction is achieved only when their level of job security, pay, and promotions,
working conditions, relations with their co-workers, and supervisors are highly achieved
(Parvin & Kabir, 2011).
Procedural justice can best interpret Job satisfaction. When employees perceive that the
procedures and strategy of an organization are based on justice then they get more satisfied and
give their best performance to the organization. Hence, procedural justice delimits the overall
turnover rate of employees (Rahman, Haque, Elahi, & Miah, 2015).
The expected outcomes that employees receive from their job results in job satisfaction.
This may comprise of high gratitude from his boss, good salary package, promotion’s
opportunity, and minimum workload (Sareshkeh, Ghaziani, & Tayebi, 2012).
The policies and schedule of the job and better-earning facilities are the key elements
that attract employees and have an effective impact on the overall productivity of the
organization. Research has shown that even if most of the factors associated with job
satisfaction are achieved but still pay structure is the basic entity which influences the
performance positively or negatively (Sundar & Kumar, 2012).
47
Job Satisfaction can be achieved by proper management and planning of the
organization with efforts that are required to bring the best qualities and skills of
employees through training sessions. These satisfying and supportive platforms lead to
more satisfied employees because their future is more secure and they are getting
enough remuneration which results in better performance. The quality of products,
services of organizations and response of employees has close links with the satisfaction
level of employees. This satisfaction can be accomplished only when higher authorities
of the organization take care of all the responsibilities associated with their employees by
providing friendly environment, health insurance, cooperative co-workers and chance for
getting high position (Sundar & Kumar, 2012).
2.22 Employee Demeanour and Performance Related Pay
The development of PRP schemes has generally been viewed as a response by
employers to the principal–agent problem inherent in the employment relationship. Many
workers have a wide range of discretion in how they undertake their work. They can vary their
effort, their cooperation with colleagues and management, and their contribution to improving
the effectiveness of both their and related inputs. In such a situation, mechanisms are needed
to ensure that workers (the agents) undertake their work in a manner that is congruent with the
interests of their employers (the principals). The principal–agent problem can be most directly
addressed by the close monitoring of workers’ performance and the disciplining of workers
deemed to be shirking. However, this can prove costly, not only because of the need to pay
supervisors, but also because the explicit demonstration by employers of a lack of trust in their
workers can encourage behaviour based on narrow opportunistic motives (IDS, 2017).
An alternative is to design incentive schemes to reward individual or group output. Such
schemes have the advantage./ to./ the./ firm./ in./ that./ they./ not./ only./ induce./ greater./ effort from workers,
but they may also encourage the commitment of workers to the goals and values of the
48
organization. Linking pay to performance also potentially introduces equity and consistency in
the pay structure and enables the firm to attract more able workers. The standard models,
therefore, view PRP as a technique that can monitor workers’ contribution to the production
process, thereby more closely aligning workers’ pay and productivity. Some also view it as a
mechanism for increasing worker’s effort (Alsalem, 2016). The key problem herein is seen to
be the cost of monitoring performance, where this is less than the gain from aligning pay and
productivity and/or eliciting greater effort, the firm will introduce a PRP scheme; otherwise it
will not. Such models take a very narrow view of PRP and its potential role in improving firm
performance. In particular, they focus on individual forms of PRP and thereby ignore the role
of group PRP and the potential for PRP to improve the performance of teams rather than
individuals. Indeed, they also ignore a possible inherent contradiction with individual PRP
schemes, that they may improve individual performance, but reduce that of the work-group as
a whole, by giving a disincentive for workers to work cooperatively with others (Ryals, 2019).
Furthermore, such models also ignore that PRP is only one type of payment system
aimed at increasing the contribution of employees to the production process. Also important
are schemes for sharing profits and employee share-ownership. These could be seen as broad
forms of group PRP, though their link to performance is much less direct than those group
schemes that are typically given this title. Such schemes, being potential substitutes for the
more non-individualistic types of PRP, are likely to reduce the impact of group PRP on
earnings. The development of work systems offering workers a greater role in decision-making
and increasing functional flexibility in recent years has focused enhanced attention on the need
to develop new payment systems. Innovations such as quality circles, briefing groups, total
quality management, and team-working have resulted in a marked change in the way in which
work is done. They involve workers taking more responsibility for key aspects of the
production process and, in particular, being more responsive to product-market pressures. Such
49
changes not only empower workers in key areas but also intensify the potential for principal-
agent divergences. There is, for example, evidence that workplace> changes> aimed> at>
increasing> employee> participation> in> decision-making> are> typically> only> successful> in>
raising> organizational> performance> where> they> are> associated> with> compatible> gain-sharing>
mechanisms.> It> is,> therefore,> likely> that> the> presence> or> absence> of> such> schemes> at> a>
workplace> will> have> an> impact> on> the> PRP–earnings> relationship,> a> factor> ignored> in>
existing> models> (Harris,> 2017).
Once> the> complexities> of> the> nature> of> PRP> and> the> context> within> which> they> are>
situated> are> acknowledged,> the> possible> impacts> of> PRP,> particularly> group> PRP,> on>
employee> earnings> are> not> as> clear-cut> as> the> standard> models> suggest.> Most> of> the>
analyses> based> on> this> model> suggest> that> workers> covered> by> (individual)> PRP> will> be>
paid> more> than> those> who> are> not.> This> is> seen> to> reflect> that> more> able> workers> chose> to>
work> within> PRP> regimes> and> work> harder> within> this> regime.> However,> they> ignore>
potential> variations> for> differing> types> of> PRP> and> the> presence> or> absence> of> employee>
and> financial> participation> schemes.> In> order> to> be> effective,> PRP> needs> to> offer> workers>
a> significant> return> on> their> higher> effort> and> commitment> that> would> be> missed> in> its>
absence.> In> short,> workplaces> are> prepared> to> incur> higher> wage> costs> for> PRP> workers> in>
the> hope> of> gaining> a> greater> than> commensurate> increase> in> performance. Furthermore, to
the extent that PRP yields higher work effort and commitment, it might be expected that PRP
workplaces would show better financial performance. This, in turn, would allow such
workplaces to pay its employees more than those not operating PRP (Shaw, 2018).
Alternatively, it may be that PRP operates simply as a distributive mechanism,
rewarding the high-achieving more and the low-achieving correspondingly less than in non-
PRP workplaces. In such a situation, the overall average effect for the two types of workplaces>
will> not> be> significantly> different.> However,> previous> empirical> work> has> suggested> that>
50
PRP> does> more> than> simply> re-distribute> rewards.> The> > relative> > contributions> > of> >
individual,> > group> > and> > organizational> > PRP> > schemes> > to> > earnings> > are> > less> > clear> > a> >
priority.> > To> > some> > extent,> > they> > depend> > on> > the> > importance> > attached> > to> > each> > by> >
managers> > in> > the> > workplaces> > concerned.> > The> > more> > that> > they> > are> > wedded> > to> > a> > ‘hard’>
> HRM> > approach> > based> > on> > individual> > incentives,> > the> > greater> > the> > contribution> > to> >
earnings> > of> > individual> > PRP> > schemes> > can> > be> > expected> > to> > be.> > Conversely,> > the> > more> >
the> > emphasis> > is> > on> > the> > ‘softer’> > HRM> > approach> > of> > building> > team-working> > to> > raise> >
performance,> > the> > more important will be the contribution of group schemes (Thompson,
2018).
The role of group and organizational PRP in enhancing performance is likely to be
different from that of individual PRP. In parallel to individual PRP, the objective of the
scheme will be to ensure that output is both aligned to its payment and that those covered
by the scheme produce a high level of input into the production process (Tlaiss, 2018).
However, in contrast to individual PRP, gains may be made by reducing the importance
attached to individual incentives, which may encourage behaviour that works against the
interests of the team as a whole. In recent years, a large number of organizations have
recognized the need to encourage teamwork in the search for competitive advantage, and
have put in place a range of practices with this in mind. Allied to this has been an increased
interest in group forms of PRP. The introduction of such schemes, however, is not
unproblematic. The two main problems are the measurement of team output and free riding.
In parallel with the situation for individual PRP, where team output cannot be easily
measured, it can be expected that there will be less pay that is determined by group PRP
(Torres, 2017). A great deal also depends on the potential magnitude of the free rider
problem, whereby members of the team rely on others to make the extra effort to increase
group performance related pay. The greater the concern about some workers within teams
51
free-riding, thereby reducing the total team input into the production process, the less will
pay be linked to group PRP (IDS, 2017).
The widespread concerns about free riding and the problems associated with
measuring team output. It is, however, possible that firms have over-ridden such concerns
in the search for a compensation system that can support their attempts to capture> > team> >
efficiencies.> > The> > tying> > of> > PRP> > schemes> > to> > attempts> > to> > increase> > employee> >
participation> > in> > decision-making> > raises> > the> > further> > issue> > of> > whether> > such> > efforts> > have>
> been> > accompanied> > by> > greater> > increases> > in> > earnings> > for> > the> > workers> > concerned> > as> >
opposed> > to> > where> > they> > have> > been> > introduced> > in> > a> > more> > stand-alone> > way> (Ducharne,>
2019).> > One> > might> > expect> > the> > return> > to> > be> > greater> > where> > there> > is> > such> > a> > linkage> > for>
> two> > main> > reasons.> > First,> > one> > might> > expect> > that> > the> > increase> > in> > earnings> > in> > such> >
integrated> > situations> > would> > be> > greater.> > The> > impact> > of> > varying> > types> > of> > on> > earnings> >
intent> > to> > transform> > the> > organization> > is> > much> > stronger.> > Second,> > such> > a> > situation> >
might> > be expected to yield a greater return and, therefore, more leeway for firms to reward
their employees (Deathridge, 2018).
2.23 Organization Development
Akram, Hashim, and Akram, (2015), explains the important role that organization
development plays in the satisfaction of employees. The results have shown that distributive
justice influences job satisfaction positively whereas procedural justice negatively influences
job satisfaction. When organization development is practically implemented in an organization,
it can reinforce the level of satisfaction.
Alvesson and Skoldberg (2018) highlight the integration mechanism regarding
organization development with human resource management in two ways It is the integration
of organization development with human resource management through the practice of
performance pay structure-the better the performance the higher is the pay. Therefore, such
52
integration enhances and fosters the organizational behaviour in the best concerns of the human
resource management department, whose main objective is the organization development of an
industry / sector (Skoldberg, 2018).
When we discuss reward management, its discussion cannot escape the process
development and techniques of evaluation in organization performance development.
Travelling through time and growing in construct and its importance researchers come up with
the practice and name of organization development. This process is a broader context than an
appraisal development process. In other words, appraisal process is sub-part of organization
development can also be term as a tool of reward management (Al-Zu’bi, 2010).
Therefore, the foregoing definitions of development help us to understand that it is both
the required demeanour and the effective outcome, which is the effect of that particular
demeanour. This debate leads to the construct of the mixed model of organization development,
which not only entails the outcomes but also the various demeanours that cause those outcomes.
Moreover, these demeanours are the result of a particular attitude (Zu’bi, 2017).
Andersson (2016) says that development is the name of progress. Further dissecting
this construct, he says it is about what is required by the concerned to achieve the agreed
objective in the shortest possible tie. It infers that organization development is a beautiful blend
of efficiency and effectiveness. The core objective of this process of organization development
is to attain the agreed-upon milestones. And for this purpose, a specific standard of required
outcome is defined with mutual consent among the involved parties such as employees,
managers, supervisors, and executives. Anvari (2011) puts the burden of the activities of
employee management and organization development on the shoulders of the line management
as they can better able to take sufficient steps to enhance performance.
Inferring from Chenail (2012), it is essential to consider efficiency and effectiveness in
the whole process for successful objective achievement, and the organization development act
53
as a tool to measure and encourage these achievements. In other words, where organization
development enhances the performance of the employees, it also fosters the process of
successful industrial relations. Appelbaum (2018) defines organization development as a
bridge for industrial relations. He claims that performance management is pivotal in executing
the process of strategic alignment. This strategic alignment involves the process of directing
the performance of employees and their development in line with the strategic objective of the
organization. Shujaat and Alam (2013) say that the feeling of equal treatment of employees
in the rewarding process may result to demotivate those who are hard-working. Chenail (2012)
are of the view that the aim of organization development is to foster a sense of self-
responsibility and accountability in the context of individual, group, and organization
development, which eventually results in the fulfilment of the goals of each concerned with
great harmony.
Performance has been defined in more than one way for ages. Most commonly, it is
merely defined as the quality of the outcome. When we talk about an individual, organization
development is the name of the achievements one has in his/her life. Ary et.al. (2009) say that
development is the name given to the beauty of effective results and these effective results are
defined as harmony among the organization, its employees, and its customers.
Digging deeply, Aslam (2013) comprehensively defines organization development as
both the required demeanour and the effectiveness of the result. He argues that the required
demeanour makes it possible to work the things in the required order that eventually lands into
an effective outcome. He further clarifies that this demeanour can be defined irrespective of
the outcome as being the means of the outcome, a cause.
Aziri (2011) also support the foregoing aspect of organization development. They claim
that organization development is bigger holistic management beyond merely defining it as an
appraisal system. Yes, it appraises the performance but this appraisal is a part of organization
54
development process. Furthermore, it carves out space and shows the path to success by
defining critical success factors and critical failure factors while taking care of the business
strategy and organizational objectives in an efficient and effective manner (Bailey et. al., 2015).
Bakhshi (2019) also in favour of this idea and prove that employee’s organization
development is the way of work, the desired demeanour, and it should not be mixed with the
quality of outcome as the outcome depends on many other systematic factors. Bakhshi and
Kumar (2009) are of the view that performance cannot be defined through a single dimension;
its definition is satisfied when it is defined considering all the sufficient factors. They also state
that is whether the defining objective of development is the required outcome or the desired
demeanour. These points out a very pivotal aspect of performance that it is not merely about
the event of occurring the desired result but it is also about how these effective results re-
achieved. Keeping this in view, performance is the desired demeanour – the desired exhibition
of the actions whether as an individual, team, or organization.
Bakotić (2016) say that organization development is not a simple set of procedures or
a combination of standard steps. It is rather a dynamic and integrated development process that
creates harmony among the management and employees for achieving organizational and
individual objectives. According to them, organization development has structural and
behavioural aspects that not only facilitates the activities but also make sure that required
behaviour is being expressed with self-accountability. Therefore, it infers that organization
development entails all the tools for qualitative and quantitative measures for performance
enhancement and acts as a great motivator eventually resulting in the greater commitment of
the employees for their workplace and organization (Bakotic, 2016).
2.24 Performance Management
The increasing emphasis placed by organizations on managing overall employee
productivity and performance to achieve individual and organizational objectives – either past
55
or anticipated – has given rise to a whole new system of business practice called Performance
Management (PM). An effective performance management process is the foundation for the
alignment of individual efforts with the organization's goals. According to performance
management, literature the linkage between individual performance and organizational
performance can be established (Sundar & Kumar, 2012).
Organizing assignments through linking the efforts of individual employees with the
organization's mission and vision, employees and organizations. Focusing on developing well
defined expected performance (actions and behaviours for performance), it helps your
employees know what needs to be done for success. Using goals, standards, performance,
dimensions and other measures is the focus. This helps the Department to do the work it needs
to do and provide a solid reason to eliminate it and no longer be useful. Periodic exams, in
discussions, including status updates, coaching and feedback, promote flexibility in assigning
a project or job to you and your staff to identify early and changing issues in the process.
Pointing out that annual review must be an effective communication between the employer and
employee; it focuses on performance as an "annual activity" and manifests itself as an ongoing
process (Sundar & Kumar, 2012).
An effective performance management is a key to save time and effort while
maintaining and exhibiting the required output. Furthermore, it is an impressive motivator as
it ties the interest of staff and that of the company or employer (Al Afari & Abu Elanain, 2014).
Barkume (2017) are of the view that performance cannot be defined through a single
dimension; its definition is satisfied when it is defined considering all the sufficient factors.
They also state that is whether the defining objective of performance is the required outcome
or the desired demeanour. These points out a very pivotal aspect of performance that it is not
merely about the event of occurring the desired result but it is also about how these effective
results re-achieved. Keeping this in view, performance is the desired demeanour – the desired
56
exhibition of the actions whether as an individual, team, or organization. Barsky (2018) also in
favour of this idea and prove that employee’s performance is the way of work, the desired
demeanour, and it should not be mixed with the quality of outcome as the outcome depends on
many other systematic factors.
Digging deeply, Barsky (2018) comprehensively defines performance as both the
required demeanour and the effectiveness of the result. He argues that the required demeanour
makes it possible to work the things in the required order that eventually lands into an effective
outcome. He further clarifies that this demeanour can be defined irrespective of the outcome
as being the means of the outcome, a cause.
Performance has been defined in more than one way for ages. Most commonly, it is
merely defined as the quality of the outcome. When we talk about an individual, performance
is the name of the achievements one has in his/her life. Barth (2012) defines performance as a
lasting phenomenon whose effects encompass a greater purpose’. Beardwell et.al. (2007) say
that performance is the name given to the beauty of effective results and these effective results
are defined as harmony among the organization, its employees and its customers.
Therefore, the foregoing definitions of performance help us to understand that it is both
the required demeanour and the effective outcome, which is the effect of that particular
demeanour. This debate leads to the construct of the mixed model of performance management,
which not only entails the outcomes but also the various demeanours that cause those outcomes.
Moreover, these demeanours are the result of a particular attitude-the the performance attitude.
(Becker, 2007).
Bellé (2015) describe Performance Management as a process of creating employees’
attitudes leading towards organizational performance. Bennett (2015) puts performance
management as the achievement of the personal, team, group, and organizational goals based
on excellent ties of mutual interest of all the concerned parties. “Performance management is
57
also about achieving the agreed-upon objectives, which not only include organizational goals
but also the personal goals with all the efficient inputs for the better management and utilization
of available resources” (Belle, 2015). Chenail (2012) say that performance management as a
strategic approach that is perfectly aligned with the organizational objectives and encompasses
not only the development of an organization, department, group and teams but also of the
individual employees (Chenail, 2012).
When we discuss reward management, its discussion cannot escape the process
development and techniques of evaluation in performance development. Ary (2009) introduced
the phrase of performance management, but it was not well defined and crafted until the late
1980s. At first, it was an appraisal of a mere reward or evaluation of the outcome. Travelling
through time and growing in construct and its importance researchers come up with the practice
and name of performance management. Performance management is a broader context than an
appraisal. In other words, performance appraisal is sub-part of performance management can
also be term as a tool of reward management (Ary, 2009).
Focusing the attention back to the history of Performance management, it emerged as
a key tool in MNCs for appreciating, rewarding and developing the employees with diverse
backgrounds and cultural differences. Now it is a pivotal part of one of the main functions of
the organization namely; The Human Resource Management (Asgari, 2008).
Further elaborating on the concept of performance management, we infer that it is
management with collaboration and understanding rather than stick approach or management
by command. Better execution of performance management practices can foster the function
of human resource management by leverage effect as better performance management leads to
the satisfaction of employees and the organization as a whole (Chenail, 2012). Khan, Farooq
and Khan (2010) conducted a study of employees’ reward systems in commercial banks who
mentioned in any organization when employees personally recognized and valued or rewarded,
58
indeed they are motivated and work hard to complete their task. Shujaat and Alam (2013) say
that the feeling of equal treatment of employees in the rewarding process may result to
demotivate those who are hard-working. Aslam et al., (2013) are of the view that the aim of
performance management is to foster a sense of self-responsibility and accountability in the
context of individual, group, and organization development, which eventually results in the
fulfilment of the goals of each concerned with great harmony.
The core objective of performance management is to attain the agreed-upon milestones.
And for this, a specific standard of required performance is defined with mutual consent among
the involved parties such as employees, managers, supervisors and executives. Aziri (2011)
says that performance is the name of understanding. Further dissecting this construct, he says
it is about what is required by the concerned to achieve the agreed objective in the shortest
possible tie. It infers that performance management is a beautiful blend of efficiency and
effectiveness. Bailey (2015) puts the burden of the activities of performance management on
the shoulders of the line management as they can better able to take sufficient steps to enhance
performance.
Bakhshi (2009) defines performance management as a bridge for industrial relations.
He claims that performance management is pivotal in executing the process of strategic
alignment. This strategic alignment involves the process of directing the performance of
employees in line with the strategic objective of the organization. Inferring from Bakhshi
(2009), it is essential to consider efficiency and effectiveness in the whole process for
successful objective achievement and the performance management act as a tool to measure
these. In other words, where performance management enhances the performance of the
employees, it also fosters the process of successful industrial relations.
Bakhshi and Kuram (2019) say that performance management is not a simple set of
procedures or a combination of standard steps. It is rather a dynamic and integrated
59
management system that creates harmony among the management and employees for achieving
organizational and individual objectives. According to them, performance management has
structural and behavioural aspects that not only facilitates the activities but also make sure that
required behaviour is being expressed with self-accountability. Therefore, it infers that
performance management entails all the tools for qualitative and quantitative measures for
performance enhancement and acts as a great motivator eventually resulting in the greater
commitment of the employees for their workplace and organization.
Bakotić (2016) also support the foregoing aspect of performance management. They
claim that performance management is bigger holistic management beyond merely defining it
as an appraisal system. Yes, it appraises the performance but this appraisal is a part of
performance management, not the whole performance management. Furthermore, it carves out
space and shows the path to success by defining critical success factors and critical failure
factors while taking care of the business strategy and organizational objectives in an efficient
and effective manner (Bakotić, 2016).
While defining performance management as a pivotal and integral part of human
resource management, Bakotić (2017) highlight the integration mechanism of performance
management with human resource management in two ways It is the integration of performance
management with human resource management through the practice of performance pay
structure-the better the performance the higher is the pay. Therefore, such integration enhances
and fosters the organizational behaviour in the best concerns of the human resource
management department, whose main objective is the performance of employees (Bakotić,
2017).
It is the integration of performance management with human resource management
through development. Performance management attains the required results by defining the
demeanour required to obtain those results. After defining the demeanour. It makes the
60
necessary allocation of efforts and resources to fulfil the objective. While doing so i.e.
enhancing the performance of the employees, it injects the development not only in the
employees but also into the organization, which in other words known as human resource
development and organization development. These both are the core objectives of human
resource management. Therefore, it infers that development is the way performance
management integrates into human resource management (Barkume, 2017).
The following are some of the examples of performance management as an integrated
process. In contrast, the performance and development management scheme introduced
recently by the Royal Society for Mentally Handicapped Children and Adults emphasizes both
the performance improvement and developmental aspects of the process. The performance
management philosophy adopted by the Cambridge shire County Council is based on a
framework that includes accountabilities, performance standards and measures and regular
progress reviews. At Standard Chartered Bank, performance is assessed by reference to
individual capability against job competencies and to individual achievement against personal
objectives. IBM assesses employees based on their contribution to achieving the mission of
their business unit or function (Barsky, 2018). As discussed in the foregoing paragraph that
Performance management aligns the performance of the employees with the strategic objective
of the organization, it implies that as a strategy of the business is applied across all of its
functions, it automatically integrates performance management with the functions of the
organization. Performance management is integrated with human resource management as it
facilities the core function of human resource management i.e. performance of the employees
in the best interest of the organization along with the satisfaction of employees’ needs (Zareen,
2017).
The core and the most important concern of performance management is the
improvement of the performance of the employees. Development means the increase in one’s
61
ability to do and approach things in a better way. Performance management identifies the areas
that need training and plays an important role in the development of employees and the overall
organization. The third concern of performance management is satisfying the stakeholders’
expectations. It implies that performance management makes it sure that everyone’s interest in
the process is being taken care of whether it is a blue-collar worker or white colour executive
(Zaman, 2018).
In literature, we found extensive studies related to performance management and
employees’ productivity. Zafar and Farrukh (2015) explored the linkage between performance
management and job performance. They conducted a study and found that employees’
engagement can increase the performance of the employees. Therefore, according to the
balanced scorecard, it implies that the learning of the workforce leads to better internal
processes of the business, which leads to a higher range of customer satisfaction, and this
satisfaction eventually reaps the fruit of better financial health of the company (Bol, 2015).
2.25 Conclusions
To conclude, it is obvious that there are no arguments against the basic logic behind PRP –
that of rewarding people according to their contribution, as this appeals to an employee’s sense
of justice. Problems occur in the administration processes of PRP schemes, especially with
regard to performance assessment and quantification of results. It is important to remember
that PRP cannot be the single answer to human resource issues of morale and productivity and
the reasoning behind PRP that financial rewards can be the only motivator behind the
performance is fallacious. There can never be either-or solutions for PRP and organizations
have to realize the significance of other objectives and review processes as well as other
financial and non-financial rewards as motivators for performance enhancement. It is also
obvious that PRP is successful only in certain types of organizations that foster the right climate
for such schemes. Therefore, companies should pay more attention to other types of
62
achievement recognition schemes – financial and non-financial and not overly dependent on
PRP. The organization should consider other types of payment schemes such as bonuses,
competence-pay, skill-based pay, profit sharing, etc. as well as non-financial factors such as
employee recognition, personal and professional development etc. With greater care and
attention, PRP can be a powerful tool in making the organizational workplace more rewarding
for both employer and employee. Based on literature review we found 5 factors affecting
organization development given in the Conceptual framework.
2.26 Conceptual Framework
A conceptual framework is an analytical tool with several variations and contexts. It
can be applied in different categories of work where an overall picture is needed. It is used to
make conceptual distinctions and organize ideas. Strong conceptual frameworks capture
something real and do this in a way that is easy to remember and apply. Conceptual frameworks
are particularly useful as organizing devices in empirical research. One set of scholars has
applied the notion of conceptual framework to deductive, empirical research at the micro- or
individual study level. Likewise, conceptual frameworks are abstract representations,
connected to the research project's goal that direct the collection and analysis of data (on the
plane of observation – the ground). Critically, a football play is a "plan of action" tied to a
particular, timely, purpose, usually summarized as long or short yardage (Shields and Travis,
2017).
The below given conceptual framework (Fig. 1) was developed to construct the related factors
and existing knowledge into most explanatory model according to the title of the research
“Performance Related Pay and Its Impact on Organization Development Empirical Evidence
from Banking Sector of Pakistan”. The required explanation and factors are briefly explained
in the above paras. So it is also to be mentioned that the main purpose behind constructing the
below given conceptual framework was to make it more easier to understand the related
63
problem as well as the key factors related to below given issue and draw some suitable
recommendations based on empirical analysis. This study mainly focuses on hypothesis i.e. the
relationship of independent variables (performance-related pay, degree of motivation, job
satisfaction, positive attitude and employee demeanour) and dependent variable (organization
development).
`
Figure 1. Conceptual framework
2.27 Hypotheses
The following hypotheses have been tested
H1 There is a significant relationship between performance-related pay and organization
development in the banking sector of Pakistan.
H1a There is a significant relationship between the degree of motivation and organization
development.
H1b There is a significant relationship between job satisfaction and organization development.
H1c There is a significant relationship between positive attitude and organization development.
H1d There is a significant relationship between employee demeanour and organization
development.
PERFORMANCE RELATED PAY
DEGREE OF MOTIVATION
ORGANIZATION
DEVELOPMENT
JOB SATISFACTION
POSITIVE ATTITUDE
EMPLOYEE DEMEANOUR
64
2.28 Research Gap
According to Zaman and Ali (2018) studies of the opinions of other employees who
have recently been brought under PRP can also be undertaken since this would be a new
dimension for the banks. The premise behind the review committee is that rewards can set the
right behaviours and money as core motivators to affect the workload and that employees are
representing the organization. Some commentators regard money as a status and talented
employee as an asset to the organization (Zaman, 2018). The researcher has concentrated on
the selected cities because of geographical and time constraints in reaching other staff.
However, since there is no difference in the implementation of the scheme among staff, the
findings of the responses were generalized to the rest of the population and the hypotheses were
validated. Further research can however be attempted on these staff to find out if their opinions
correspond to the results of this study. Attempts can also be made to research different aspects
of PRP implementation in ABL and Bank Al-Falah like performance matrices and assessment
procedures. Performance-related pay schemes need careful implementation over a period of
time to achieve maximum effectiveness and acceptability. Future researchers could work out
on different aspects of the development in the organization and considering some different
perceptions of PRP and its impact on job satisfaction. Future researchers might select any other
population for conducting the study where the PRP and its impact of organization development
procedures and processes is different. The satisfaction of employees from a job is one of the
major issues organizations are facing today. Several elements must be fulfilled to achieve the
job satisfaction level of workforces. These elements include job design, manager concern for
his employees, working environment, appreciation and rewards, and social relationships
(Whitfield, 2018).
65
CHAPTER 3
RESEARCH METHODOLOGY
3.1 Introduction
The literature review section deliberated on the works pertaining to the present study.
This chapter highlights the complete methodology and research design, population and
sampling design, instrumentation and questionnaire design in order to establish the dire
linkages between the conceptual theory and empirical evidence. Further, specific analytical
techniques used in this research to analyse the speculations and conceptual reasoning behind
the theory were discussed in this chapter. Furthermore, the specific research apparatuses used
for data analysis also defined with a particular reference to their|| usefulness.|| Later,|| the||
validity|| and|| reliability|| of|| constructs|| was|| also|| deliberated at| length.
This chapter mainly deals with the study of methods and has been promoted as the
current theme. This chapter, after a continuation of the background and circumstances of the
first two chapters, namely the introduction of the overall study, has been critically examined
and developed in the literature. The main reason for the development of these two chapters is
to gain a detailed theoretical understanding of the concept of this research topic. In addition, it
helps to bridge the gap between the contemporary literary genres and thus contribute to the
development of research methods to fill these gaps. The method of research in this chapter
provides a detailed overview of the different philosophical approaches that lay the foundation
for further research.
Research is th2e process of analysis, interpretation and data collection purposes, is a
phenomenon of understanding. The structured and organized presentation of an objective,
process data, and collusion results during the research process takes place in the traditional
framework and is guided by an appropriate agreement among which there are alternatives
66
(Aziri, 2011). The outline and guidelines provide researchers with a suggestion and show what
data to gather based on what it is possible to embrace in the investigation of how research is
done and what kinds of explanations are possible (Yeh, 2011). Description of research methods
is a broad approach; investigators need to conduct research projects.
3.2 Research Design
Research Design has been defined as a carefully planned arrangement of conditions or
ideas that are primarily used for analysing or collection a large number of data in such a way
that it aims to combine relevance to the research purpose with economy of procedure’s that are
taken by the researcher to achieve a set of results (Afari et.al., 2017). The research study carried
out in ABL and Bank Al-Falah was done as a co-relational study; hence was more in the nature
of a field study. All the respondents responded to the survey in their natural work environment,
hence the study setting was of a non-contrived nature. First, the data was obtained from the
specified organizations then it was computed using a statistical tool SPSS, from which
statistical calculations were made and the conclusion was drawn from it, similarly the research
analysed and attempted to uncover the significance of human behaviour, beliefs and emotions.
The purpose and objective of this research are to reveal the relationship between performances
related pay and its impact on organization development Empirical Evidence from Banking
Sector of Pakistan by the staff members of selected banks of Pakistan therefore type of
investigation was correlational.
3.3 Sampling Technique
The exact list of all employees of Allied Bank Limited and Bank Al-Falah was
conveniently available and acquired from the respective departments hence non-probability
convenience sampling was done. Data obtained from respondents through simple random
sampling techniques, as all elements of the population had a fair and equal chance of selection.
For sample size determination, Sekaran (2017) proposed that a sample size between the range
67
of 30 and 500 was suitable for most research types. Further, a minimum size of 30 was
appropriate in situations where the sample had to be divided into small samples such as income
distribution. This type of research study has never been conducted before at ABL and Bank Al-
Falah.; therefore, this study is cross-sectional as data was collected once over a period of a few
months.
3.4 Population and Sampling
Population is often described to be a group of people that are inside a selected area or
in a region. The data collected from this often ranges from large to small based on the number
of people that are present inside the selected population. Characteristically, there is no
population of more or fewer all entities that have any available data. An example is the
population in a bar of entities. There are normal data available for the entity's sample. A simple
example is a random selection of subsets in a random way, for individual probable trials, all of
these similar sizes has similar opportunities to be assigned (Sethi, and Iqbal, 2018). If the trial
is representative of the entire population, then the calculated indicators from the experimental
data will be in the same population as the corresponding standard. Of course, an example
contains less information than the population-wide projection, so there is always some
uncertainty or ambiguity about the ability to include the population from the sample. For
randomized trials, larger samples or subsets are more accurate under normal conditions.
Example Estimates of Opportunity Differences and Population Criteria are Smaller (Average)
Basically for Larger Samples or Trials (but Not Important Exact Exams).
Sampling-.- is-.- ‘the-.- process-.- of-.- selecting-.- a-.- sufficient-.- number-.- of-.- elements-.- from-.- the-.- population,-.-
so-.- that-.- by-.- studying-.- the-.- sample,-.- and-.- understanding-.- the-.- properties-.- or-.- the-.- characteristics-.- of-.- the-.-
sample-.- subjects,-.- it-.- would-.- be-.- possible-.- to-.- generalize-.- the-.- properties-.- or-.- characteristics-.- of-.- the-.-
population-.- elements’-.- (Sekaran,-.- 2016).-.- Sampling-.- is-.- used-.- because-.- the-.- entire-.- population-.- involved-.- is-.-
too-.- large,-.- and-.- therefore-.- such-.- research-.- would-.- be-.- prohibitive-.- in-.- terms-.- of-.- time,-.- costs-.- and-.- other-.-
68
resources.-.- Sekaran-.- (2016)-.- identifies-.- the-.- importance-.- of-.- determining-.- an-.- appropriate-.- sample-.- size-.-
and-.- points-.- out-.- that-.- sample-.- size-.- is-.- governed-.- by-.- the-.- extent-.- of-.- precision-.- and-.- confidence-.- desired.-.- She-.-
also-.- says-.- that-.- neither-.- too-.- large-.- nor-.- too-.- small-.- a-.- sample-.- size-.- helps-.- research-.- projects.-.- Too-.- large-.- a-.-
sample-.- size-.- (say-.- over-.- 500)-.- could-.- become-.- a-.- problem-.- inasmuch-.- as-.- the-.- researcher-.- would-.- be-.- prone-.- to-.-
committing-.- Type-.- II-.- errors,-.- i.e.,-.- accepting-.- the-.- findings-.- of-.- the-.- research-.- when-.- they-.- should-.- be-.-
rejected.-.- With-.- too-.- large-.- a-.- sample-.- size,-.- even-.- weak-.- relationships-.- reach-.- significant-.- levels-.- and-.- the-.-
researcher-.- may-.- be-.- led-.- to-.- believe-.- that-.- these-.- significant-.- relationships-.- found-.- in-.- the-.- sample-.- are-.- indeed-.-
true-.- of-.- the-.- population,-.- when-.- in-.- fact-.- they-.- may-.- not-.- be.
The-.- method-.- used-.- for-.- this-.- particular-.- research-.- work-.- was-.- a-.- survey-.- of-.- staff-.- in-.- branches-.- and-.-
managers-.- of-.- branches-.- spread-.- over-.- their-.- regional-.- offices-.- in-.- Peshawar,-.- Pakistan.-.- These-.- regional-.-
offices-.- were-.- located-.- across-.- the-.- capital-.- cities-.- of-.- Pakistan’s-.- four-.- major-.- provinces;-.- the-.- cities-.- were-.-
Islamabad,-.- Lahore,-.- Karachi,-.- Quetta,-.- and-.- Peshawar,-.- the-.- Lahore-.- being-.- the-.- Head-.- Office-.- of-.- Allied-.-
Bank-.- while-.- the-.- Head-.- office-.- of-.- Bank-.- Al-Falah is situated in Karachi.
Due to the size of the original population frame, the sample size was decided at a three-
part questionnaire each to be administered to both operation staff and line Managers. As
explained earlier. Allied bank has thirty-five regions countrywide and Bank Al-Falah has five
regions, each headquartered at the capital city of the respective province in which they are
located. Of the 420 listed full-time Operation Officers working for ABL and 130 for bank Al-
Falah, a sample size of 105 was selected across Peshawar KP branches– 105 Officers/staff of
Allied Bank and 33 staff members are selected across Peshawar Area of bank Al-Falah. Though
this figure was not strictly proportional to the exact number of officers working in each region,
the overall size of the sample of 105, represented around 25% of the total population frame of
420 and 130; this was considered to be good size strength. Besides there was no apparent
difference in the administration of PRP schemes across the regions; therefore theoretically
69
there should be no difference in the responses irrespective of the proportion of officers selected
per region.
Similarly, out of a registered 36 branch Managers over the entire region-I Peshawar of
ABL and 12 branch Managers of Area-I Peshawar at bank Al-Falah, a sample of 09 and 03
respectively were selected as respondents. This represented just fewer than 25% of the total
population frame, again good size strength. It was decided to conduct face-to-face interviews
with 02 Regional/Area Managers of ABL and Bank Al-Falah. The Regional/Area heads were
chosen for the regions of Peshawar KP – because Peshawar is a provincial headquarter of
Khyber Pakhtunkhwa.
105 Officers and staff in Peshawar region of each bank – 20 respondents each bank,
and 10 Branch Managers in region from ABL– 5 respondents each per region. Face-to-face
interviews were conducted with two Regional Managers at Peshawar at ABL which is 25% of
the whole population. Similarly, 33 staff and officer are chosen from Area-I and 3 Managers
of the same Area including 2 Area managers from Bank Al-Falah. The time frame involved
was Jan 25 – March 10, 2015, which coincided with the closing of the financial year. Since
most staff performance was measured against quantitative targets, the year-end would be the
most appropriate for conducting the research work. This would also precede the performance
review process that will be conducted during the months of April 2015 for allocation of pay
rewards.
A proportion of the population framework was chosen as the study sample; their
responses were considered to be an indicator of the general responses of the entire population
sample. Very often, criticisms of PRP state that staffs are not interviewed about their
perceptions of schemes that affect them. Therefore, a conscious effort was made to focus the
questionnaire on them. The line managers were also interviewed and questioned to obtain the
management perception of the scheme implementation. The questionnaire and interview gave
70
the opportunity to the respondents to provide both quantitative and qualitative data, besides
supplementary information and their own additional views. Complete cooperation was
provided by the Human Resources-.- team-.- across-.- all-.- regional-.- offices-.- and-.- at-.- the-.- head-.- office-.- towards-.-
the-.- research-.- process.-.- The-.- Human-.- Resources-.- team-.- however-.- did-.- not-.- participate-.- in-.- the-.- study-.- though-.-
an-.- opportunity-.- was-.- provided-.- on-.- the-.- grounds-.- that-.- it-.- may-.- influence-.- the-.- research-.- work-.- and-.- create-.-
bias,-.- since-.- the-.- team-.- was-.- actively-.- involved-.- in-.- the-.- implementation-.- and-.- monitoring-.- of-.- the-.- PRP-.-
process.-.- One-.- way-.- of-.- assessing-.- if-.- the-.- research-.- is-.- valid-.- was-.- to-.- consider-.- if-.- the sample chosen was
representative of the target population and the adequacy of the sampling model chosen. The
BD and operation staff of Allied Bank and Bank Al-Falah spread across all of its major
branches and its entire operational staff formed the population of the study. This formed the
framework of the research study population.
3.5 Sample Size
The survey covered 105 and the valid response was 98 Officers and staff in the
Peshawar region of ABL i.e. 50 and valid response was 47 respondents from Bank AlFalah,,
and 10 Branch Managers in the region from ABL, 5 respondents each per region and the valid
response was 100%. Face-to-face interviews were conducted with two Regional Managers at
Peshawar of ABL which is 25% of the whole population. Similarly, 33 staff and officers are
chosen from Area-I and 3 Managers of the same Area including 2 Area managers from Bank
Al-Falah. One way of assessing if the research is valid was to consider if the sample chosen
was representative of the target population and the adequacy of the sampling model chosen.
The business Development (BD) and operation staff of Allied Bank and Bank Al-Falah spread
across all of its major branches and its entire operational staff formed the population of the
study. This formed the framework of the research study population. There was a response rate
of 93% to the questionnaire administered to the operation/BD Officers overall area as 98
questionnaires received back from ABL. There was a response rate of 94% from Bank Al-Falah
71
branches 47 questionnaires returned. There was a 100% response rate to the questionnaires
administered to the branch Managers in the whole region of both Banks. There were no blank
responses; therefore, all questionnaires were included for data analysis and interpretation. The
answers to the interview were analysed separately, as these consisted of qualitative responses.
In ABL out of 10 questionnaires distributed to services/operation officers both regional head
offices, the responses received were 48 and 48 of each region/area in Peshawar;– 98 in all. The
response rate of the questionnaire was 93% among operation Officers. In ABL questionnaires
were distributed to the Branch Managers – 5 in each regional office, 10 in all – were completed
and returned. The response was 100% among Branch Managers. In Bank Al-Falah 50
questionnaires distributed to the operation team 24 from Area-I and 23 from Area II were
chosen here response was 94% from the officers similarly, 5 branch managers were randomly
selected in each area where the return was 100%.
3.6 Research Methods and Procedures
There are two methods of research one is quantitative and the other is qualitative.
Quantitative research is more apt to solve the problem qualitatively and accurately, but more
subjective (Zaman, 2018). Quantitative studies are more inclined to use mathematical and
statistical methods, while the qualitative understanding is that data that influences the
interpretation of the study (Zaman, 2018). Quantitative data were quantitatively studied, but a
data quality study was attended by participants' points of view and interpreters. In this case of
qualitative research, research/interpretation is endowed with the responsibility of rigorously
examining the patterns provided by the data participants so that the meanings extracted from
them are the same. A researcher was able to collect in-depth information from attendees, adding
values to the above studies, which makes qualitative methods superior to quantifying one. In
the context of quantitative research, prejudice is less, but qualitatively. This research is based
on qualitative data.
72
3.7 The Rationale for Using Mixed Methods
The rationale behind using mixed methods in the existing study is that mixed methods
are especially useful in understanding contradictions between quantitative results and
qualitative findings. It not only fosters scholarly interaction but also gives a voice
to study participants and ensure those study findings are grounded in participants' experiences.
As a research design, mixed methods research contains philosophical assumptions that are
linked to specific methods such as experimental research, survey and mixed methods research.
Some authorities on mixed methods research (Creswell, 2005; Creswell & Plano-Clark, 2007;
Mertens, 2005a; Tashakkorri & Teddlie, 1998) identify the three most common mixed methods
designs as triangulation, explanatory and exploratory designs. Each of these focuses on the
collection, analysis and interpretation of separate but complementary quantitative and
qualitative data. The current study is based on tapping the point of a review of banking
personnel who are posted at different hierarchical levels, it is most appropriate to use mixed-
method study. This ensures an in-depth analysis of the participants and reflects the participants'
contradictions in their point of view as regards the role of PRP in the bank’s development.
3.8 Qualitative Research
A qualitative study of one type of identifier is the social phenomenon to be examined
from the applicant's watchtower. There are different types of research programs and methods
of qualitative research on techniques and structures (Yang, 2019). Therefore, different
approaches have a strong impact on the strategies found in the survey. Qualitative research is
a more organized explanation because it explicitly states and shapes new theories. This type of
research can also be defined as an execution model that takes place in a normal setting that
enables researchers to raise a level factor from the positive experience involved in the actual
(Whitfield, 2018).
73
Qualitative-.- research-.- is-.- often-.- done-.- inside-.- a-.- situated-.- activity-.- which-.- is-.- parameterized-.- by-.- the-.-
way-.- the-.- observer-.- wants-.- to-.- evaluate-.- the-.- data-.- and-.- analyse-.- it-.- to-.- determine-.- the-.- result.-.- These-.- consist-.- of-.-
a-.- set-.- of-.- practices-.- that-.- consist-.- a-.- number-.- of-.- interpretive-.- and-.- material-.- practices-.- that-.- are-.- used-.- to-.- make-.-
the-.- world-.- visible-.- and-.- ensure-.- that-.- an-.- unbiased-.- representation-.- is-.- shown-.- through-.- it-.- (Abbasi,-.- 2018).-.- A-.-
qualitative-.- study-.- of-.- one-.- type-.- of-.- identifier-.- is-.- the-.- social-.- phenomenon-.- to-.- be-.- examined-.- from-.- the-.-
applicant's-.- watchtower.-.- There-.- are-.- different-.- types-.- of-.- research-.- programs-.- and-.- methods-.- of-.- qualitative-.-
research-.- on-.- techniques-.- and-.- structures.-.- Qualitative-.- research-.- is-.- a-.- more-.- organized-.- explanation-.-
because-.- it-.- explicitly-.- states-.- and-.- shapes-.- new-.- theories.-.- This-.- type-.- of-.- research-.- can-.- also-.- be-.- defined-.- as-.- an-.-
execution-.- model-.- that-.- takes-.- place-.- in-.- a-.- normal-.- setting-.- that-.- enables-.- researchers-.- to-.- raise-.- a-.- level factor
from the positive experience involved in the actual. Additionally, it can help in providing a
more natural approach to the world and helps the researcher to study a thing that is found inside
the natural setting (Alvesson & Skoldberg, 2018).
3.9 Qualitative Data Analysis
Instead of just being something of quality, quality data provides a way to record more
prominent profundity in the minds, emotions, and practices of individual countries (Adams,
2015). Internal subjectivity requires that it is important to distinguish between explanatory
systems utilized by scientists to directly review and subdivide information such as basic
methodological insights and suppositions that can unequivocally affirm information that
influences or decides to understand. Qualitative data analysis consists of the following
components
➢ Examining
➢ Review, classification,
➢ Tabulating,
➢ Recombining, evidence of the study.
All of this is about organizing and interpreting information (rather than digital
information, which is usually a quantitative study of reservations) so-.- that-.- any-.- important-.-
74
underlying-.- pattern-.- and-.- trends-.- can-.- be-.- found-.- (Akram,-.- 2018).
Qualitative-.- data-.- analysis-.- is-.- a-.- method-.- by-.- which-.- we-.- collect-.- part-.- of-.- the-.- research-.- data-.- from-.- the-.-
original-.- data-.- and-.- use-.- it-.- to-.- provide-.- explanations,-.- understandings-.- and-.- interpretations-.- of-.- the-.-
phenomena-.- that-.- people-.- and-.- situations-.- we-.- are-.- studying.-.- The-.- purpose-.- of-.- analysing-.- quality-.- data-.- is-.- to-.-
study-.- the-.- meaning-.- and-.- symbolic-.- content-.- that-.- is-.- found-.- within.-.- It-.- is-.- important-.- that-.- you-.- have-.- become-.-
familiar-.- with-.- the-.- analysis-.- of-.- the-.- ways-.- you-.- decided-.- your-.- data-.- before-.- and-.- believe-.- in-.- the-.- fields-.- of-.- your-.-
choice.-.- This-.- research-.- is-.- a-.- mixed-.- study-.- i.e.,-.- quantitative-.- and-.- qualitative-.- in-.- nature.-.- The-.- hypothesis-.-
tested-.- after-.- the-.- collection-.- of-.- numerical-.- data.
As-.- the-.- foregoing-.- definitions-.- of-.- performance-.- helps-.- us-.- to-.- understand-.- that-.- it-.- is-.- both-.- the-.-
required-.- demeanour-.- and-.- the-.- effective-.- outcome-.- which-.- is-.- effect-.- of-.- that-.- particular-.- demeanour.-.- This-.-
debate-.- leads-.- to-.- the-.- construct-.- of-.- the-.- mixed-.- model-.- of-.- performance-.- management-.- which-.- not-.- only-.-
entails-.- the-.- outcomes-.- but-.- also-.- the-.- various-.- demeanours-.- that-.- cause-.- those-.- outcomes.-.- And-.- these-.-
demeanours-.- are-.- the-.- result-.- of-.- a-.- particular-.- attitude-the-.- performance-.- attitude.-.- (Bakhshi,-.- 2019).-.- The-.-
extent-.- to-.- which-.- the-.- researcher-.- interferes-.- with-.- the-.- normal-.- flow-.- of-.- work-.- in-.- the-.- workplace-.- has-.- a-.- direct-.-
bearing-.- on-.- whether-.- the-.- study-.- undertaken-.- is-.- causal-.- or-.- co-relational.-.- Interference-.- can-.- be-.- minimal,-.-
moderate,-.- or-.- excessive-.- (Bakotić,-.- 2017).-.- This-.- research-.- study-.- was-.- carried-.- out-.- within-.- the-.- natural-.-
environs-.- of-.- the-.- ABL-.- and-.- Bank-.- Al-Falah-.- branches-.- within-.- a-.- region.-.- Much-.- of-.- the-.- staff-.- survey-.- was-.-
conducted-.- as-.- a-.- postal-.- survey-.- while-.- the-.- interviews-.- with-.- managers-.- were-.- a-.- mix-.- of-.- personal-.- and-.-
telephonic.-.- In-.- all-.- cases,-.- the-.- population-.- sample was at liberty to choose their own time and place
to complete the question sample. Therefore the researcher’s interference was minimal.
3.10 The Technique of Data Collection
Keeping in view the educational status of the respondents, in this study the researcher
developed and use five points Likert scales/questionnaires for collecting data about the topic
and objectives of the study. The data was collected from the respondents, keeping in view the
objectives of the study.
75
Table 3.1 Likert Scale
SD Strongly Disagree
DA Disagree
NS Not Sure
A Agree
SA Strongly Agree
3.11 Measurement and Instrumentation
The research study was conducted within the context of the ABL and Bank Al-Falah in
Pakistan. It was taken up with the aim of testing the validity of the two hypotheses – that PRP
is a strong motivational factor in improving organizational performance and employee
productivity, and both staff and line managers are positive towards the implementation of PRP.
Since both hypotheses were correlated, it was decided to integrate the test measures of both
within the same research framework and research method. The research study focused on the
implementation of PRP for business development (BD) & services staff within ABL and Bank
Al-Falah; hence it was decided to obtain data from the business development & services staff
alone to validate the hypotheses.
It was decided to undertake the research work as a survey study comprising of
questionnaires and interviews to be undertaken among business development & services staff
at Peshawar region branches of ABL and Bank Al-Falah. Individual BD staff and line managers
were chosen as respondents to the study instruments; both were free to choose their own time
and place to respond to the study instruments. The research was undertaken during the period
January 25 – March 15, 2015, when the researcher pursuing a PhD. This enabled the research
work to be carried out quickly and comprehensively.
76
3.11.1 Interviews
Interviews were of the structured type where i R32t w R32a R32s know R3 R32n a R32t t R32h R32e o R32uts R32et w R32h R32at info R32rmat
R32ion w R32a R32s ne R32ed R32ed and how to go about collecting it. Unstructured questions were only asked a
few times to broaden and clarify the scope of understanding for certain issues while conducting
face to face interviews with the Regional Managers. The questioning technique involved the
use of channelling – moving from easy, open-ended questions to more complex ones, and
clarifying issues wherever needed. The open-ended questions began with easy ones about the
interviewee’s professional background, length of service, and the outline of their career
experience in the company. This would indicate to the interviewee that their experience and
professional judgement were respected and valued by the researcher. Specific questions began
in relation to the assessment and preparatory process before the actual implementation of PRP.
Respondents were asked to give their frank opinions on the method of implementation and
whether they felt sufficient preparation had gone into the implementation. Respondents were
also encouraged to give their objective assessments on whether there was a perceived
difference in the way PRP was implemented under two different managements over the last
decade.
The interviewees were then asked about the quality of managerial and financial support
that they were receiving from top management and the degree of staff cooperation. The
Regional Managers were then asked accountability questions – whether PRP has really
contributed to motivation and performance enhancement according to them, whether it has
been detrimental to team atmospheres, whether PRP has made a difference to any other work
practices apart from motivation and performance, and if it has resulted in any other tangible
benefits. In order to avoid the perception that everything about the company was positive, a
specific question was also inserted on the grievance mechanism in place for those employees
who have a problem with the way PRP is implemented. The interviewees were questioned
77
about the quality of interaction with Human Resources and their inputs in PRP implementation.
Since the interviewees perceived their own roles as being a sort of liaison between HR, between
line management and operations, they were in a position to balance the feedback that they
receive from both sides. They were also asked about their opinions on the future direction of
PRP. Questions were unbiased, unloaded. Care was taken to never involve personal feelings or
opinions and to keep the question-answer atmosphere totally objective. Face-to-face interviews
were recorded for better recollection.
3.12 Measurement of Variables
The measurement of variables in the conceptual research framework is an integral part
of the research design. This research study focused on the concept of PRP as a motivational
factor in performance improvement. The key variables behind the framework that needed
measuring were motivation, performance, and attitudes; it was necessary to operate these
concepts to render them measurable. They were defined according to the steps undertaken in
PRP implementation and included several conditional factors that were thrown up during the
debate on the pros and cons of PRP in the literature review. This would enable the researcher
to test the strength of PRP implementation at ABL and Bank Al-Falah against given theoretical
knowledge. This also was a key factor in influencing and shaping the various elements of the
research design, like data collection methods, questionnaire design, interview structure, sample
size and data analysis methods.
3.12.1 Scales
A-.- scale-.- is-.- a-.- tool-.- or-.- mechanism-.- by-.- which-.- individuals-.- are-.- distinguished-.- on-.- how-.- they-.- differ-.-
from-.- one-.- another-.- on-.- the-.- variables-.- of-.- interest-.- to-.- the-.- research-.- study.-.- Two-.- types-.- of-.- scales-.- –-.- nominal-.-
and-.- interval-.- were-.- used-.- in-.- the-.- questionnaires-.- administered-.- to-.- both-.- categories-.- of-.- respondents.-.- A-.-
nominal-.- scale-.- is-.- one-.- that-.- allows-.- the-.- researcher-.- to-.- assign-.- subjects-.- to-.- certain-.- categories-.- or-.- groups,-.-
and-.- is-.- almost-.- always-.- used-.- to-.- map-.- personal-.- demographic-.- data.-.- An-.- interval-.- scale-.- on-.- the-.- other-.- hand-.-
78
allows-.- the-.- researcher-.- to-.- perform-.- certain-.- arithmetical-.- operations-.- on-.- the-.- data-.- collected-.- from-.- the-.-
respondents,-.- and-.- measure-.- the-.- distance-.- between-.- any-.- two-.- points-.- on-.- the-.- scale.-.- It-.- is-.- used-.- when-.-
responses-.- to-.- various-.- items-.- that-.- measure-.- a-.- variable-.- can-.- be-.- tapped-.- on-.- a-.- scale-.- with-.- any-.- number-.- of-.-
points,-.- which-.- can-.- thereafter-.- be-.- summated-.- across-.- the-.- items.-.- In-.- this-.- research-.- study-.- the-.- nominal-.- scale-.-
was-.- used-.- to-.- categorize-.- demographic-.- data-.- pertaining-.- to-.- the-.- unit-.- of-.- analysis-.- while-.- the-.- interval-.- scale-.-
was-.- used-.- to-.- measure-.- the-.- intensity-.- of-.- responses-.- and-.- feelings-.- towards-.- certain-.- operational-.- research-.-
concepts.
3.13 Data Collection Procedure
Data was collected through primary source i-e personal interviews from the respondents
and questionnaire. According to Appelbaum (2018), every data collection technique has its
own merits and demerits, the selection of the data collection technique depends on the variables
involved, therefore the technique must fulfil the purpose of the research. However Bailey
(2015) describe the questionnaire method good for measuring attitude, also it is an easy method
for data analysis when the questions are close-ended. Likert Scale of 5-points was used for
questionnaire and that was designed after conducting interviews and detailed literature reviews.
Questions of the questionnaire were mainly divided between two sections, the first section was
related to organizational justice while the second section was about job satisfaction. For job
satisfaction, the MSQ- Minnesota Job Satisfaction questionnaire (Bakhshi, 2019) was used and
for other variables the questionnaire developed by John Stredwick in performance pay –
objectives, operations and outcomes.
The questionnaire espoused for the sake of present research exhibited in Annex 1.
Questionnaires applied individually by having them delivered directly to the participants in
their banks. Information on the features and techniques of the research duly shared with
respondents before delivering the questionnaires. The respondents specifically filled in with
79
general guiding principles on how to complete the respective questionnaires, emphasizing the
importance of responding to all questions.
Participants duly communicated that they may leave a question unanswered if the
designated question does not apply to them directly or was presently ambiguous. With
appropriate instructions and follow up, the questionnaires were completed at one go and hence
a good degree of response was realized. During the process of questionnaire design for
measuring the variables of the study, instrumental items adopted from the literature review.
After the successful completion of the questionnaires, coding of all replies performed. Codes
allocated to every query for the analysis and separation of data into a specific arena. The scores
then netted onto an (SPSS 18.0 v) spreadsheet for further analysis. The subsequent examination
of the data deliberated further in chapter 5. Hypothetical relationships between variables
examined through correlation, regression, and descriptive statistics, the details provided in
chapter 4. Moreover, the validity and reliability of the instrument examined through the inter-
item correlation matrix and Cronbach’s alpha tests.
3.14 Data Analysis and Interpretation
During data analysis, descriptions and descriptions of statistical or logical techniques
are systematically applied, compressed and summarized, and data are evaluated. According to
Bailey (2015) Various Analytical Procedures "provide a way to use inductive inference to
extract-/ data-/ from-/ data-/ and-/ to-/ discern-/ the-/ presence-/ of-/ noise-/ in-/ the-/ signal-/ (interest-/ of-/ this-/ phenomenon)-/
in-/ the-/ fluctuations-/ of-/ the-/ statistics."
Although-/ qualitative-/ research-/ in-/ data-/ analysis-/ can-/ include-/ statistical-/ procedures,-/ many-/
analyses-/ will-/ become-/ an-/ iterative-/ process,-/ with-/ data-/ that-/ is-/ collected-/ and-/ analysed-/ almost-/
simultaneously.-/ In-/ fact,-/ the-/ mode-/ of-/ general-/ analysis-/ of-/ researchers-/ views-/ the-/ adoption-/ of-/ the-/
complete-/ data-/ collection-/ phase-/ (Aziri,-/ 2011).-/ This-/ form-/ of-/ analysis-/ is-/ to-/ determine-/ the-/ specific-/
qualitative-/ methods-/ to-/ take-/ (field-/ studies,-/ ethnological-/ content-/ analysis,-/ oral-/ histories,-/ biographies,-/
80
unobtrusive-/ studies)-/ and-/ form-/ data-/ (field-/ notes,-/ documents,-/ audiocassettes-/ and-/ videotapes).-/ An-/
important-/ component-/ and-/ ensuring-/ the-/ integrity-/ of-/ the-/ data-/ is-/ accurate-/ and-/ appropriate-/ analysis-/ of-/
the-/ findings.-/ Incorrect-/ statistical-/ analysis-/ distorts-/ scientific-/ findings,-/ misleading-/ readers-/ to-/ leisure-/
(Aslam,-/ 2013)-/ and-/ may-/ have-/ negative-/ public-/ perceptions-/ of-/ research.-/ The-/ same-/ is-/ true-/ for-/ the-/ non-
stats-/ of-/ correlation-/ analysis-/ on-/ integrity-/ issues.
Matters-/ needing-/ attention-/ /-/ problem-/ data-/ analysis,-/ there-/ are-/ some-/ questions-/ that-/ researchers-/
should-/ pay-/ attention-/ to-/ in-/ terms-/ of-/ data-/ analysis.-/ These-/ measures-/ include
➢ Have-/ the-/ required-/ skills,
➢ Analysis-/ Select -/ the-/ appropriate-/ data-/ collection-/ methods-/ and-/ analysis
➢ Drawing-/ unbiased-/ inferences-/ is-/ not-/ appropriate
➢ Group-/ analysis-/ of-/ the-/ following-/ acceptable-/ standards,
➢ Determine-/ the-/ subject
➢ The-/ statistical-/ significance-/ of-/ the-/ lack-/ of-/ a-/ clear,-/ objective-/ measurement-/ of-/ the results
➢ provide-/ honest-/ and-/ accurate-/ analysis
➢ way-/ to-/ put-/ forward-/ the-/ data
➢ Environment-/
➢ Data-/ recording-/ methods-/ for-/ related-/ issues
➢ Partitioning-/ 'text'
➢ Qualitative-/ data-/ analysis-/ and-/ trained-/ staff-/ to-/ analyse
➢ Degree-/ of-/ reliability-/ and-/ effectiveness-/ of-/ the-/ analysis.
A-/ number-/ of-/ ground-/ rules-/ were-/ set-/ beforehand-/ to-/ handle-/ the-/ responses-/ received-/
consistently.-/ Decisions-/ were-/ taken-/ to-/ handle-/ blank-/ responses.-/ Blank-/ responses-/ could-/ have-/ been-/
because-/ the-/ respondent-/ did-/ not-/ understand-/ the-/ question,-/ was-/ unwilling-/ to-/ respond,-/ or-/ was-/ simply-/
indifferent-/ to-/ a-/ part-/ or-/ the-/ whole-/ of-/ the-/ questionnaire.-/ If-/ the-/ latter-/ was-/ the-/ case,-/ then-/ the-/ respondent-/
would-/ have-/ left-/ many-/ items-/ blank. It-/ was-/ decided-/ that-/ if-/ over-/ 25%-/ of-/ the-/ questions-/ were-/ left-/ blank,-/
81
the-/ questionnaire-/ would-/ be-/ rejected-/ and-/ not-/ be-/ included-/ in-/ the-/ data-/ set-/ for-/ analysis.-/ If-/ however-/ a-/ few-/
responses-/ were-/ left-/ blank,-/ they-/ would-/ be-/ factored-/ in-/ while-/ calculating-/ percentages.-/ There-/ were-/
a-/ few-/ blank-/ responses-/ to-/ some-/ questions-/ among-/ the-/ responses,-/ but-/ none-/ of-/ the-/ blank-/ responses-/ for-/ a-/
single-/ specific question. Chances of total blank responses were low because the researcher was
personally available to clarify responses and questions. All the responses had a minimum of
75% completion rate, so they were all counted as valid.
Personal data was coded according to responses; statistics were tabulated and graphs
were made to show a pictorial representation of the sample’s demographic profile. Scaled
response statements were tabulated and entered on spreadsheets; relevant tables and graphs
were produced. There was a significant level of qualitative responses and these were collated
and produced in the appendices for references. These responses were also embodied in the main
report, where appropriate.
82
CHAPTER 4
RESULTS AND ANALYSIS
4.1 Introduction
The survey conducted to test the responses of operation staff and line managers of
Allied Bank and Bank Al-Falah to the prevailing PRP schemes in the company. It was done by
means of a three-part questionnaire distributed among services/operation staff and line
managers of the study sample; a separate set of interviews were conducted with the
Regional/Area Managers of both the banks. As mentioned in Chapter III, the sample was
distributed among ABL and Bank Al-Falah’s region/area head offices in Peshawar. The sample
included 105 operation Officers – in all region/area offices – and 10 branch Managers in the
Peshawar region along with Two Regional Managers of ABL in Peshawar. Similarly, 50
Operation officers from the region of Peshawar were chosen and 05 Branch Managers were
randomly selected and two Area Managers of Bank Al-Falah were chosen as the sample for the
interviews.
4.2 Descriptive of Demographics
Table 4.1
Gender Distribution of Respondents (N=145)
Gender Frequency % Valid% Cumulative%
Male 120 82.4 82.4 82.4
Female 25 18.6 18.6 100.0
Total 145 100.0 100.0
The above-given table 4.1 displays1 dominance1 of1 males1 as1 compared1 to1 females. It seems
that out of a total of 145 respondents, 120 (82.4%) were male, while the remaining 25 (18.6%)
were female (Table 4.1).
83
Table 4.2
Age Distribution of Respondents (N=145)
Age% F % Valid% Cumulative%
20 to 30 105 60.0 60.0 60.0
31-40 19 19.0 19.0 79.0
41-50 18 18.1 18.1 97.0
51&Above 3 3.0 3.0 100.0
Total 145 100.0 100.0
Services Officers
The Services Officers are predominantly a young workforce. 50% of the Services Officers
are in the age group of 25-30, young enough to be enthusiastic about their work, and mature
enough to hold responsible positions. 25% of the Services Officers are at the beginning stages
of their career, between the age group of 20-25; 15% of the workforce is between 30-35 age
groups; 8% of the workforce is between 35-40 age groups. Only 4% of the respondents are
above the age of 40. In bank Al-Falah 40% officers were between the ages of 20-25; 50% were
25-30 and 10% were 30-35 (Table 4.2).
Branch Managers
Among Branch Managers, 3 are between the ages of 35-40 years (30%) while 5 of them are
in the age group of 40-45 years (50%). Only 2 officers (20%) are above the age of 50 years in
ABL. In Bank Al-Falah the researcher has come across more young staff among branch
managers, 2 are between the ages of 30-35 and 1 was between the ages of 30-40. Almost 60%
of the respondents were placed in the age group of 20-30 years (Table 4.2).
84
Table 4.3
Ethnic Distribution of Respondents (N=145)
Ethnicity// Frequency/ %/ Valid% Cumulative%
Pushto 120 76.2 76.2 76.2
Hindko 20 15.7 15.7 91.9
Saraiki 1 .8 .8 92.7
Punjabi 2 2.6 2.6 95.3
Other 2 4.3 4.3 100.0
Total 145 100.0 100.0
The/ ethnic/ background/ of/ the/ respondents/ presented/ in/ Table/ 4.3./ The/ major/ ethnicities/
indicated/ by/ the/ sample/ were/ Pushto/ speaking,/ the/ rest/ of/ ethnicity/ was/ under-represented./
Keeping/ in/ view/ the/ domination/ of/ Pushtoon/ population/ in/ the/ KP/ province/ results quite
expected (Table 4.3).
Table 4.4
Monthly Income of the Respondents (N=145)
Income/ Range Frequency % Valid% Cumulative%
more than 100,000 35 24.0 24.0 24.0
Rs50,000 to
100,000
101 70.0 70.0 94.0
Less than 50,000 9 6.0 6.0 100.0
Total 145 100.0 100.0
Table 4.4 shows the monthly household income of the participants. Findings revealed that
a large number of respondents were earning a household income of 50,000. However, a sizable
number also demonstrated an average household income of more than 50,000 (Table 4.4).
85
Table 4.5
Banking Specialization of Respondents/ (N=145)
Program Frequency % Valid% Cumulative%
Banking Qualification
Management
Administration
52 56.0 56.0 56.0
without Banking Quality
Management
42 44.0 44.0 100.0
Total 145 100.0 100.0
Services/operation Officers
ABL and Bank Al-Falah have a policy of encouraging employees to gain a professional
qualification. Respondents were asked if they did or did not have any specialized qualifications
in management or banking and finance. 52 of the respondents (56% of the sample) held
professional qualifications, while 42 (44%) did not have any professional specialization in
management and Banking. In Bank Al-Falah 23 of the respondents held professional
qualification and eight did not have any professional background in banking and finance (Table
4.5).
Branch Managers
All Branch Managers (100%) held some kind of professional qualification in management
in Bank Al-Falah. But except two branch managers had a background in commerce in ABL.
86
4.3 Level of Specialization in Banking and Management
Services/operation Officers
The 71 respondents, who possessed professional qualifications in management &
banking, were asked to specify their level of specialization – whether at the Degree/Diploma
level, Masters’ level or MBA. 35 of the 60 (53%) had a Management Diploma or Degree; 19
of them (30%) held a Masters’ level specialization; 17 respondents (15%) held an MBA
qualification in ABL and 32 respondents in Bank Al-Falah who possessed professional
qualification in management & banking, were asked to specify their level of specialization-
whether degree/Diploma level, Maters’ level or MBA. 09 of the 32 had management
diploma/degree;11of them had a Masters’ level education and 12 had an MBA. (Table 4.5)
Branch Managers
In ABL all four basic degree holders held additional Diplomas in banking &
Management from prestigious management institutes in Pakistan. Among the 6 Masters’
Degree holders, 3 (40%) had Masters’ level degree specializations in banking & Management,
while the other 3 (50%) had specialized in banking & Management as part of their MBA
Degrees. 1 of these 3 has done his MBA from the UK, 1 from the USA, and 1 from Pakistan.
In Bank Al-Falah all three managers have the MBA qualification from the prestigious
Universities in Pakistan (Table 4.5).
87
Table 4.6
Educational Qualification of Respondents (N=145)
Level of
Education
Frequency % Valid
%
Cum %
Intermediate 19 13.8 13.8 13.8
Graduation 101 101 101 77.2
Post-Graduation 15 22.9 22.9 100.0
Total 145 100.0 100.0
As per the education levels of respondents, a sizable majority of respondents had graduation
qualifications (Table 4.6).
Basic Qualifications
Services/Operation Officers
ABL and Bank Al-Falah have a policy that the graduation is mandatory for all employees.
Basic graduation is a compulsory requirement for employment in both banks. Despite this,
respondents were asked for their qualifications. As was expected, there were no school leavers.
54 respondents (54%) of the sample were graduates with a basic degree; 40 respondents (43%)
of the sample held Masters’ Degrees. Three respondents were working on their MPhil
dissertations; hence, these were included with the Masters’ Degrees. In bank Al-Falah 07,
respondents were having simple graduation while the rest of the officers were having master
and MBA degrees (Table 4.6).
Branch Managers
As expected, there were no school leavers among the branch managers. Only 3 of them
(30%) had a basic degree with a long experience; the other 7 (a high 70%) were Masters’ degree
holders in ABL. In bank Al-Falah all were MBA degree holders (Table 4.6).
88
Table 4.7
Experience in banking sector (N=145)
No of Years Frequency % Valid% Cum %
1 to 3 years 53 54.8 54.8 54.8
4 to 5 30 34.0 34.0 84.8
6 to 10 11 16.2 16.2 100.0
Total 145 100.0 100.0
In ABL the Services Officers were asked about the number of years that they have held this
position. It was interesting to note that age did not correspond to the number of years in the
position. There were many instances of fresh graduates joining the bank out of college and
staying on for many years in banking services, while many joined this position after working
in other departments in ABL or in other Banks. 53 Services/Operation Officers (54%) had been
working in this position for 1-3 years; 30 of them (34%) had been in the same position for a
time frame of 3-5 years. Only 11 respondents (11%) continued in the same position of
Services/Operation for 5-10 years. It was interesting that there were no respondents who
claimed to be working in the same position for 10-15 years. Similarly, the officers were asked
about the number of years they have held this position. Mostly, officers are young and with
less experience in the banking sector 14 officers had been working in this position for 1-3 years;
11 of them are working on the same position for 3-5 years and only 07 respondents are in the
same position for 5-10 years. Interestingly no respondent has claimed who is working on the
same position for 8-10 years (Table 4.7).
Branch Managers
In the ABL manager position, some time is rotating or some time performance base 07 of
the respondents were in this position for 3-5 years (60%) while the other 2 (60%) with more
experience had been working in the same position for 5-8 years. Bank Al-Falah offer this
position on performance and give good incentives 02 of the respondents were working on this
89
position 1-5 years and only 01 respondents are in the same position 5-8 years (Table 4.7).
Table 4.8
Experience in Targeted banking sector (N=145)
No of Years Frequenc
y
% Valid% Cum %
1 to 3 years 35 30.0 30.0 30.0
4 to 5 65 44.0 44.0 70.0
6 to 10 35 16.2 16.2 100.0
Total 145 100.0 100.0
This section comprised the demographic profile of the survey sample. Respondents were
asked to tick their choice of answer to several personal questions posed (Table 4.8).
4.4 Number of Years of Experience in ABL & Bank Al-Falah
Services/Operation Officers
The Services/Operation Officers were asked about their experience in the company. Again
age did not exactly match the years of experience from both Banks. In keeping with the general
perception that Services/Operation is general banking in both Banks and banking sector was a
dynamic place to work for, many young recruits entered the company as part of the general
banking workforce. Similarly many worked for the banks in other departments before moving
to services/operation through internal vacancies caused by expansion. 35 respondents (30%)
had been working for ABL for 1-3 years, while 43 of them (44%) had been working for 3-5
years. This once again indicates a mixture of youth and dynamism in the general banking
workforce. Only 16 people (30%) of the workforce had been with the company for 6-8 years.
Some had worked on contract, fix pay or as floating staff before entering the company
workforce on a full-time basis. In Bank Al-Falah 14 respondents (30%) had been working for
1-3 years, while 14 of them (44%) had been working for 3-5 years. This once again specifies a
90
combination of youth and vigour in the general banking workforce. Only 04 people (30%) of
the workforce had been with the company for 5-8 years (Table 4.8).
Branch Managers
In ABL which is an old bank in Pakistan. Again 02 of the managers (20%) had 3-5 years of
experience at ABL while the other 08 (80%) had 5-8 years of service experience with the bank.
While in Bank Al-Falah 02 of the managers (80%) had 3-5 years of experience at bank Al-
Falah while only 01 (20%) had 5-8 years of service experience with the bank (Table 4.8).
Total years of experience in the Services/Operation field
Services/Operation Officers
ABL Services Officers were questioned about the number of years of experience in the
banking field that they brought to the job, either from within the bank or outside of it or both.
22 of the respondents (34%) had between 1-5 years of experience in the field, while 26
respondents (36%) had between 5-10 years of experience in the field. 26 officers (21%) had
between 10-15 years of experience; 15 of them (8%) had between 15-20 years of experience,
and only 1 person in the position of Services Officer (1% of the sample) had over 20 years of
experience in the field. It is pertinent to mention that many respondents had joined as Services
Officers in ABL after holding many higher positions in other small companies, mainly
fascinated by the monetary benefits of the position. Bank Al-Falah Services Officers were
questioned about the number of years of experience in the banking field that they brought to
the job, either from within the bank or outside of it or both. 12 of the respondents (34%) had
between 1-5 years of experience in the field, while 11 respondents (36%) had between 5-10
years of experience in the field. 08 officers (21%) had between 10-15 years of experience; 02
of them (8%) had between 15-20 years of experience, and only 0 (Zero)person in the position
of Services Officer (0% of the sample) had over 20 years of experience in the field It is clear
that while the banking staff is mainly youthful, there is also enough experience, extensive in
91
the staff, which makes it likely for the banks to enforce vibrant banking practices, at the same
time ensuring that the banks’ aims are accomplished (Table 4.8).
Branch Managers
In ABL the experience chart for the respondents was wide-ranging. While 3 (30%) of the
managerial staff brought with them 10-15 years of experience in the banking and field, the
other 7 (70%) had an amazing 15-20 years of experience in the field in the same bank. In Bank
Al-Falah all of them (100%) of the managerial staff brought with them 10-15 years of
experience in the banking field. (Table 4.8)
Table 4.9
Number of jobs held before this current position (N=145)
No of Years Frequency % Valid% Cum %
First job 34 44.8 44.0 44.0
Second job 32 34.0 34.0 78.0
Third job 19 18.0 18.0 96.0
Fourth job 06 4.0 4.0 100.0
Total 145 100.0 100.0
ABL Officers were questioned to identify the number of jobs they had held before the
current position they are holding – either within the company or outside or both. The figures
indicated that the workforce primarily had built their experience within the company. 34 of the
respondents (34%), this was their first job, while for 32 of them (36%) this was their second
job. 19 of them (21%) had held two jobs before; 06 of them (7%) had held 3 jobs; while 03 of
them (2%) had held 4 jobs or more before working in this position. In bank Al-Falah, Officers
were queried to state the number of jobs they had held before the current position they are
holding either within the company or outside or both. The figures indicated that the employees
mostly had built their experience within the company. 10 of the respondents (34%), this was
their first job, while for 13 of them (36%) this was their second job. 07 of them (21%) had held
92
two jobs before; 02 of them (7%) had held 3 jobs; while 0 (zero) of them (0%) had held 4 jobs
or more before working in this position(Table 4.9).
Branch Managers
In ABL five managers (50%) had held one job before holding this position; three of them
(30%) had held two jobs before. Two managers (20%) brought more experience by working in
three positions before holding this job. In Bank Al-Falah all of them (100%) had held one job
before holding this position (Table 4.9).
Table 4.10
Number of years of coming under PRP fold (N=145)
No of Years Frequency % Valid% Cum %
Less than 1 year 15 13.8 13.8 13.8
Less than 2 years 12 15.0 15.0 28.8
Less than 3 years 16 16.2 16.2 40.0
More than 4 years 51 60.0 60.0 100.0
Total 145 100.0 100.0
ABL Officers were asked about the number of years that they have been covered by PRP
and other reward systems. 15 of them (13%) have been covered for 1 year or less; 12 of them
(15%) have been covered for 2 years or less. 16 of the respondents (16%) have been covered
for 3 years or less. 29 officers (32%) have been enjoying the benefits of reward for more than
4 years while 22 of them (24%) have been rewarded for 5 years or more. This indicates that the
PRP systems have been in place for some time. In Bank Al-Falah, Officers were asked about
the number of years that they have been covered by PRP and other reward systems. 07 of them
(13%) have been covered for 1 year or less; 11 of them (15%) have been covered for 2 years
or less. 09 of the respondents (16%) have been covered for 3 years or less. 02 officers (32%)
have been enjoying the benefits of reward for more than 4 years while 04 of them (24%) have
been rewarded for 5 years or more. (Table 4.10)
93
Branch Managers
In ABL, the figures for the Managers indicate that while 2 people have been under the PRP
fold for 3 years (10%), 1 manager has been under PRP fold for 4 years (20%) and the rest of 7
managers for 5 years (70%). In Bank Al-Falah all managers are covered by a PRP scheme and
are very satisfied. (Table 4.10).
Reliability of Scales
For this research reliability scale can be explained as “the inter-item consistency explained
through the degree of variance contingent upon measurement error in the analysis”.
Cronbach’s Alpha was used to assess the internal reliability of the extracted factors and assist
with examining inter-item consistency reliability (Sekaran, 2000). For each item, the
reliabilities presented in table 10. As noted, all alpha coefficients demonstrate very adequate
intensities, which is a sign that the instrument has a very high exactitude in measurement. Thus
established that further statistical investigation can be carried out on study substance (Table
4.11).
Table 4.11
Reliability of Scales (N=145)
Scale
No. of
Statements
Cronbach’s Alpha
Performance Related Pay 38 0.92
Degree of Motivation 12 0.76
Job Satisfaction 25 0.92
Positive Attitude 04 0.70
Employee Demeanor 05 0.70
Organization Development 06 0.75
94
According to Pallant (2000), a Cronbach’s alpha coefficient range of 0.70 to 0.90 can be
considered as adequate. Test results showed acceptable levels of reliability for all the key
constructs in terms of Cronbach’s alpha test, which collectively turned out to be above 0.70
making the instrument reliable. The Cronbach alpha fluctuated between 0.70 (Employee
demeanour and positive attitude) to 0.92 (performance-related pay and job satisfaction). Hence,
concluded that all variables in the instrument reliable (Table 4.11).
4.5 Descriptive Statistics of Study Variables
Descriptive analyses conducted to examine the broad features of the samples. Table 13
displays the descriptive statistics of study variables showing the minimum and maximum range
of the participants against study variables. The table also depicted the mean values of responses
with standard deviation and skewness (Table 4.12).
Table 4.12
Descriptive Statistics of Study Variables (N=145)
Minimum Maximum Mean S D S E Skewness
Performance Related Pay 47.00 184.00 118.51 22.71 .08 -.35
Degree of Motivation 12.00 54.00 35.79 7.31 .04 -.28
Job Satisfaction 28.00 131.00 83.74 17.21 .12 -.34
Positive Attitude 6.00 31.00 15.42 4.20 .04 -.09
Employee Demeanor 5.00 31.00 20.38 4.49 .03 -.41
Organization
Development
6.00 26.00 16.23 4.06 .03 -.37
As reported in Table 4.12 positive attitude and Organization Development had/ the/
minimum/ range/ (5)/ while/ performance/ related/ pay/ having/ the/ maximum/ range/ (185)./ The/
standard/ deviation/ value/ was/ a/ measure/ of/ the/ extent/ of/ deviation/ of/ variables/ from/ mean/
level./ As/ the/ standard/ deviation/ values/ of/ the/ variables/ was/ not/ showing/ a/ high/ trend,/
which/ means/ the/ data/ was/ symmetric (Table 4.12).
95
Table 4.13
Correlation Matrix of all Variables (N = 145)
Variables I II III IV V VI
I Performance Related Pay ---
II Motivation 1
.724*
*
---
III Job Satisfaction 1
.771*
*
1
.663** ---
IV Positive Attitude 1
.653*
*
1
.829** 1
.510** ---
V Employee Demeanor 1
.698*
*
1
.851** 1
.602** 1
.412** ---
VI Organization Development 1
.725*
*
1
.566** 1
.809** 1
.422** 1
.525*
*
---
** p<.01
The Pearson correlation matrix revealed an extremely positive correlation between
performance-related pay and Organization Development. As discovered in Table 4.13 all the
variables are positively correlated with Organization Development with respective values of (r
=.711, .716, .605, and .683, p˂0.01). Hence, concluded that there were significant associations
among performance-related pay and Organization Development, degree of motivation, job
satisfaction, positive attitude, employee demeanour and Organization Development (r=.711,
.526, .716, .383, .497,.549, .605, .589 and .683 p˂0.01 respectively), hence hypotheses 1
through 6 were verified (Table 4.13).
96
Table 4. 14
Regression Analysis for Performance Related Pay, Motivation and Job Satisfaction with
Organization Development (N=145)
Model B Std. Error Β T Sig.
(Constant) 1.134 .571 1.987 .000
Performance Related Pay .131 .006 .712 27.936 .001
Motivation .053 .018 .092 2.718 .001
Job Satisfaction .159 .009 .656 19.478 .001
R2= .501
∆R2= .598
F=47.56, df 2, p<.001
Regression studies test the statistically significant effect of independent variables on the
dependent variable (Table 4.14).
4.6 General Response Section Services Officers (Appendix A)
The General Response Section distributed to both Services Officers and Branch Managers
consisted of statements posed about PRP and its implementation in both Banks. The
respondents had to circle their choice of response on a scale marked from 1 to 5. The circled
choices would represent the degree of intensity of feelings and attitudes towards the statements
posed about PRP.
The scale intervals were as follows
1 – Strongly Disagree
2 – Disagree
3 – Not Sure
4 – Agree
5 – Strongly Agree
97
The following were the responses of the Services Officers to the General Section,
tabulated.
Table 4.15
PRP has been necessary within this competitive environment
PRP
Statements
Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 0 0 0 46 52 98
%age 0 0 0 47% 53% 100%
BAF Officers 0 0 0 21 26 47
%age 0 0 0 45% 55% 100%
The above-given table indicates that 46 respondents (47%) out of 98 respondents (100%)
have circled “Agree” option while 52 respondents (53%) out of 98 respondents (100%) have
chosen “Strongly Agree” at ABL and 21 respondents (45%) out of 47 respondents (100%) in
Bank Al-Falah have chosen “Agree” and 26 respondents (55%) out of 47 respondents (100%)
have circled “strongly Agree” (Table 4.15).
Table 4.16
Administration of PRP is a fair and just practice of rewarding effort
PRP Statements Strongly
Disagree
Disagree Not
sure
Agree Strongl
y Agree
Total
ABL Officers 0 0 0 32 66 98
%age 0 0 0 32% 68% 100%
BAF Officers 0 0 0 20 27 47
%age 0 0 0 42% 57% 100%
The above-given table shows that 32 respondents (32%) out of 98 respondents (100%) have
circled “Agree” option while 66 respondents (68%) out of 98 respondents (100%) have chosen
“Strongly Agree” at ABL and 20 respondents (42%) out of 47 respondents (100%) in Bank Al-
Falah have chosen “Agree” and 27 respondents (57%) out of 47 respondents (100%) have
circled “strongly Agree” (Table 4.16).
98
Table 4.17
PRP has been managed efficiently at ABL & Al-Falah
PRP
Statements
Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 0 0 3 50 45 98
%age 0 0 3% 51% 46% 100%
BAF Officers 0 0 0 23 24 47
%age 0 0 0 49% 51% 100%
According to the above-given table, 03 respondents (03%) out of 98 respondents (100%)
have chosen “ Not sure” option while 50 respondents (51%) out of 98 respondents (100%) have
circled “Agree” option while 45 respondents (46%) out of 98 respondents (100%) have chosen
“Strongly Agree” at ABL and 23 respondents (49%) out of 47 respondents (100%) in Bank Al-
Falah have chosen “Agree” and 24 respondents (51%) out of 47 respondents (100%) have
circled “strongly Agree” (Table 4.17).
Table 4.18
Performance appraisals conducted fairly
PRP
Statements
Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 0 4 14 45 35 98
%age 0 4% 14% 46% 36% 100%
BAF Officers 0 0 5 22 20 47
%age 0 0 11% 47% 42% 100%
The table indicates that 04 respondents (04%) out of 98 respondents (100%) have selected
“Disagree” option and 14 respondents (14%) out of 98 respondents (100%) have chosen “ Not
sure” option while 45 respondents (46%) out of 98 respondents (100%) have circled “Agree”
option while 35 respondents (36%) out of 98 respondents (100%) have chosen “Strongly
Agree” at ABL and 05 respondents (11%) out of 47 respondents (100%) in Bank Al-Falah have
chosen “Not sure” and 22 respondents (47%) out of 47 respondents (100%) have circled
“Agree” and 20 respondents (42%) out of 47 respondents (100%) have selected “Strongly
Agree” option (Table 4.18).
99
Table 4. 19
PRP affects your rapport with your line manager negatively
PRP
Statements
Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 17 68 8 5 0 98
%age 17% 69% 8% 5% 0 100%
BAF Officers 9 31 4 3 0 47
%age 19% 66% 9% 6% 0 100%
The above-given table shows that 17 respondents (17%) out of 98 respondents (100%) have
selected “Strongly Disagree” option and 68 respondents (69%) out of 98 (100%) have chosen
“Disagree” option while 08 respondents (08%) out of 98 respondents (100%) have opted “ Not
Sure” and 05 respondents (5%) out of 98 (100%) have circled “Agree” at ABL and 09
respondents (19%) out of 47 (100%) in Bank Al-Falah have chosen “Strongly Disagree” and
31 respondents (66%) out of 47(100%) have circled “Disagree” and 04 respondents (9%) out
of 47 (100%) have selected “Not Sure” option while 03 respondents (6%) out of 98 respondents
(100%) picked “Agree” option (Table 4.19).
Table 4.20
PRP raises initiative and creativity
PRP Statements Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 0 8 12 48 30 98
%age 0 8% 12% 49% 31% 100%
BAF Officers 0 2 6 27 12 47
%age 0 4% 13% 57% 26% 100%
According to the above-given table 08 respondents (8%) out of 98 respondents (100%) have
selected “Disagree” option and 12 respondents (12%) out of 98 respondents (100%) have
chosen “ Not sure” option while 48 respondents (49%) out of 98 respondents (100%) have
circled “Agree” option while 30 respondents (31%) out of 98 (100%) have chosen “Strongly
Agree” at ABL and 02 respondents (4%) out of 47 respondents (100%) in Bank Al-Falah have
100
chosen “Disagree” and 06 respondents (13%) out of 47 respondents (100%) have circled “Not
Sure” and 27 respondents (57%) out of 47 respondents (100%) have selected “Agree” option
and 12 respondents (26%) out of 47 respondents (100%) have picked “ Strongly Agree” (Table
4.20).
Table 4.21
PRP is a tool of motivation for performance improvement
PRP Statements Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 0 0 2 38 58 98
%age 0 0 2% 39% 59% 100%
BAF Officers 0 0 0 17 30 47
%age 0 0 0 36% 64% 100%
The table shows that 02 respondents (02%) out of 98 respondents (100%) have chosen “Not
sure” option while 38 respondents (59%) out of 98 respondents (100%) have circled “Agree”
option while 58 respondents (59%) out of 98 respondents (100%) have chosen “Strongly
Agree” at ABL and 17 respondents (36%) out of 47 respondents (100%) in Bank Al-Falah have
chosen “Agree” and 30 respondents (64%) out of 47 respondents (100%) have circled “strongly
Agree” (Table 4.21).
Table 4.22
PRP Affects Teamwork Negatively
PRP Statements Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 20 65 7 6 0 98
%age 20% 66% 7% 6% 0 100%
BAF Officers 12 30 5 0 0 47
%age 26% 64% 10% 0 0 100%
The above-given table indicates that 20 respondents (20%) out of 98 respondents (100%)
have selected “ Strongly Disagree” option and 65 respondents (66%) out of 98 (100%) have
101
chosen “ Disagree” option while 07 respondents (07%) out of 98 respondents (100%) have
selected “Not Sure” and 06 respondents (6%) out of 98 respondents (100%) have circled
“Agree” at ABL and 12 respondents (26%) out of 47 (100%) in Bank Al-Falah have chosen
“Strongly Disagree” and 30 respondents (64%) out of 47respondents (100%) have circled
“Disagree” and 05 respondents (10%) out of 47 respondents (100%) have selected “Not Sure”
option (Table 4.22).
Table 4.23
PRP Supports Management Control over Staff.
PRP Statements Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 5 40 5 35 12 98
%age 5% 41% 5% 36% 12% 100%
BAF Officers 1 20 3 16 7 47
%age 2% 43% 6% 34% 15% 100%
The table shows that 05 respondents (5%) out of 98 respondents (100%) have selected “
Strongly Disagree” option and 40 respondents (41%) out of 98 (100%) have chosen “ Disagree”
option while 05 respondents (05%) out of 98 respondents (100%) have selected “Not Sure” and
35 respondents (36%) out of 98 (100%) have circled “Agree” at ABL and 01 respondent (2%)
out of 47 respondents (100%) in Bank Al-Falah have chosen “Strongly Disagree” and 20
respondents (43%) out of 47 respondents (100%) have circled “Disagree” and 03 respondents
(6%) out of 47 respondents (100%) have selected “Not Sure” option. while 16 respondents
(34%) out of 47 respondents (100%) picked the “Agree” option and 07 respondents (15%) out
of 47 respondents (100%) have chosen “ Strongly Agree” (Table 4.23).
102
Table 4.24
PRP Conveys a Strong Message about Organization Development
PRP Statements Strongly
Disagree
Disagree Not
sure
Agree Strongl
y Agree
Total
ABL Officers 0 0 8 58 32 98
%age 0 0 8% 59% 33% 100%
BAF Officers 0 0 0 30 17 47
%age 0 0 0 64% 36% 100%
The above-given table indicates that 08 respondents (08%) out of 98 (100%) have chosen “
Not sure” option while 58 respondents (59%) out of 98 (100%) have circled “Agree” option
while 32 respondents (33%) out of 98 (100%) have chosen “Strongly Agree” at ABL and 30
respondents (64%) out of 47 (100%) in Bank Al-Falah have chosen “Agree” and 17
respondents (36%) out of 47 respondents (100%) have circled “strongly Agree” (Table 4.24).
Table 4.25
PRP has Improved Your Personal Status in the Organization.
PRP Statements Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 0 6 14 60 20 98
%age 0 6% 14% 61% 20% 100%
BAF Officers 0 0 7 30 10 47
%age 0 0 15% 64% 21% 100%
According to the above table No.4.26, 06 respondents (6%) out of 98 respondents (100%)
have selected “Disagree” option and 14 respondents (14%) out of 98 (100%) have chosen “
Not sure” option while 60 respondents (61%) out of 98 (100%) have circled “Agree” option
while 20 respondents (20%) out of 98 (100%) have chosen “Strongly Agree” at ABL and 07
respondents (15%) out of 47(100%) have circled “Not Sure” and 30 respondents (64%) out of
47 (100%) have selected “Agree” option and 10 respondents (21%) out of 47 respondents
(100%) have picked “ Strongly Agree” (Table 4.25).
103
Table 4.26
PRP Fosters Adverse Feelings of Jealousy and Distrust.
PRP Statements Strongly
Disagree
Disagree Not
sure
Agre
e
Strongly
Agree
Total
ABL Officers 25 56 9 8 0 98
%age 26% 57% 9% 8% 0 100%
BAF Officers 15 25 4 3 0 47
%age 32% 53% 9% 6% 0 100%
The above-given table indicates that 25 respondents (26%) out of 98 respondents (100%)
have selected “ Strongly Disagree” option and 56 respondents (57%) out of 98 (100%) have
chosen “ Disagree” option while 09 respondents (09%) out of 98 respondents (100%) have
selected “Not Sure” and 08 respondents (8%) out of 98 (100%) have circled “Agree” at ABL
and 15 respondents (32%) out of 47 (100%) in Bank Al-Falah have chosen “Strongly Disagree”
and 25 respondents (53%) out of 47(100%) have circled “Disagree” and 04 respondents (09%)
out of 47 (100%) have selected “Not Sure” option and 03respondents (06%) out of 47
respondents (100%) have opted “ Agree” (Table 4.26).
Table 4.27
PRP Helps in Retention of Staff
PRP Statements Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 0 6 2 50 40 98
%age 0 6% 2% 51% 41% 100%
BAF Officers 0 3 2 22 20 47
%age 0 6% 4% 47% 43% 100%
The above-given table shows that 06 respondents (6%) out of 98 respondents (100%) have
selected “Disagree” option and 02 respondents (2%) out of 98 (100%) have chosen “Not sure”
option while 50 respondents (51%) out of 98 (100%) have circled “Agree” option while 40
respondents (41%) out of 98 (100%) have chosen “Strongly Agree” at ABL and 03 respondents
(6%) out of 47(100%) have circled “Disagree” and 02 respondents (4%) out of 47 (100%) have
selected “Not Sure” option and 22 respondents (47%) out of 47 respondents (100%) have
104
picked “Agree” and 20 respondents (43%) out of 47 respondents (100%) have selected “
Strongly Agree” (Table 4.27).
Table 4.28
PRP Creates Discontentment in Employees
PRP Statements Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 20 64 10 4 0 98
%age 20% 65% 10% 4% 0 100%
BAF Officers 10 35 2 0 0 47
%age 21% 74% 4% 0 0 100%
The table shows that 20 respondents (20%) out of 98 respondents (100%) have selected “
Strongly Disagree” option and 64 respondents (65%) out of 98 (100%) have chosen “ Disagree”
option while 10 respondents (10%) out of 98 respondents (100%) have selected “Not Sure” and
04 respondents (4%) out of 98 (100%) have circled “Agree” at ABL and 10 respondents (21%)
out of 47 (100%) in Bank Al-Falah have chosen “Strongly Disagree” and 35 respondents (74%)
out of 47(100%) have circled “Disagree” and 02 respondents (04%) out of 47 (100%) have
selected “Not Sure” option (Table 4.28).
Table 4.29
PRP has impacted the Work Culture at Your Bank Positively
PRP
Statements
Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 0 8 10 50 30 98
%age
0 8% 10% 51% 31% 100
%
BAF Officers 0 3 6 23 15 47
%age
0 6% 13% 49% 32% 100
%
The above-given table indicates that 08 respondents (8%) out of 98 respondents (100%)
have selected “Disagree” option and 10 respondents (10%) out of 98 (100%) have chosen “
Not sure” option while 50 respondents (51%) out of 98 (100%) have circled “Agree” option
105
while 30 respondents (31%) out of 98 (100%) have chosen “Strongly Agree” at ABL and 03
respondents (6%) out of 47(100%) have circled “Disagree” and 06 respondents (13%) out of
47 (100%) have selected “Not Sure” option and 23 respondents (49%) out of 47 respondents
(100%) have picked “Agree” and 15 respondents (32%) out of 47 respondents (100%) have
selected “ Strongly Agree” (Table 4.29).
4.7 General Response to PRP Section Branch Managers (Appendix B)
The following were the responses of the Branch Managers to the General Section, tabulated
Table 4.30
PRP has Great Importance in This Competitive Environment.
PRP
Statements
Strongly
Disagree
Disagree Not sure Agree Strongly
Agree
Total
ABL Officers 0 0 1 4 5 10
%age 0 0 10% 40% 50% 100%
BAF Officers 0 0 0 3 2 5
%age 0 0 0 60% 40% 100%
Table No. 4.30 shows that 01 respondent (10%) out of 10 (100%) has chosen “Not sure”
option while 04 respondents (40%) out of 10 (100%) have circled “Agree” option while 05
respondents (50%) out of 10 (100%) have chosen “Strongly Agree” at ABL and 03 respondents
(60%) out of 05 (100%) in Bank Al-Falah have chosen “Agree” and 02 respondents (40%) out
of 05 respondents (100%) have circled “strongly Agree” (Table 4.30).
Table 4.31
PRP Implementation is Getting Full Support from Top Management
PRP
Statements
Strongly
Disagree
Disagree Not sure Agree Strongly
Agree
Total
ABL Officers 0 0 0 7 3 10
%age 0 0 0 70% 30% 100%
BAF Officers 0 0 0 3 2 5
%age 0 0 0 60% 40% 100%
The above-given table indicates that 07 respondents (70%) out of 10 (100%) have circled
“Agree” option while 03 respondents (30%) out of 10 (100%) have chosen “Strongly Agree”
106
at ABL and 03 respondents (60%) out of 05 (100%) in Bank Al-Falah have chosen “Agree”
and 02 respondents (40%) out of 05 respondents (100%) have circled “strongly Agree” (Table
4.31).
Table 4.32
Staff Whole-Heartedly Support PRP Implementation
PRP
Statements
Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 0 1 0 6 3 10
%age 0 10% 0 60% 30% 100%
BAF Officers 0 0 0 3 2 5
%age 0 0 0 60% 40% 100%
According to the above-given table, 01 respondent (10%) out of 10 (100%) have circled
“Disagree” option while 06 respondents (60%) out of 10 (100%) have chosen “Agree” and 03
respondent (30%) out of 10 (100%) have circled “Strongly Agree” at ABL and 03 respondents
(60%) out of 05 (100%) in Bank Al-Falah have chosen “Agree and 02 respondents (40%) out
of 05 respondents (100%) have circled “strongly Agree” (Table 4.32).
Table 4.33
PRP has been Fully Dependent on the Performance Appraisal Process.
PRP
Statements
Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 0 0 0 4 6 10
%age 0 0 0 40% 60% 100%
BAF Officers 0 0 0 3 2 5
%age 0 0 0 60% 40% 100%
The table shows that 04 respondents (40%) out of 10 (100%) have circled “Agree” option
while 06 respondents (60%) out of 10 (100%) have chosen “Strongly Agree” at ABL and 03
respondents (60%) out of 05 (100%) in Bank Al-Falah have chosen “Agree” and 02
respondents (40%) out of 05 respondents (100%) have circled “strongly Agree” (Table 4.33).
107
Table 4.34
PRP Conveys A Strong Message about Organization Development
PRP
Statements
Strongly
Disagree
Disagre
e
Not
sure
Agree Strongly
Agree
Total
ABL Officers 0 0 0 5 5 10
%age 0 0 0 50% 50% 100%
BAF Officers 0 0 0 3 2 5
%age 0 0 0 60% 40% 100%
According to the above-given table, 05 respondents (50%) out of 10 (100%) have circled
“Agree” option while 05 respondents (50%) out of 10 (100%) have chosen “Strongly Agree”
at ABL and 03 respondents (60%) out of 05 (100%) in Bank Al-Falah have chosen “Agree”
and 02 respondents (40%) out of 05 respondents (100%) have circled “strongly Agree” (Table
4.34).
Table 4.35
PRP is Being Administered Fairly at your Bank.
PRP
Statements
Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 0 0 0 6 4 10
%age 0 0 0 60% 40% 100%
BAF Officers 0 0 0 2 3 5
%age 0 0 0 40% 60% 100%
The above-given table indicates that 06 respondents (60%) out of 10 (100%) have circled
“Agree” option while 04 respondents (40%) out of 10 (100%) have chosen “Strongly Agree”
at ABL and 02 respondents (40%) out of 05 (100%) in Bank Al-Falah have chosen “Agree”
and 03 respondents (60%) out of 05 respondents (100%) have circled “strongly Agree” (Table
4.35).
108
Table 4.36
PRP has Contributed as a Tool of Motivation Towards Performance Improvement.
PRP
Statements
Strongly
Disagree
Disagre
e
Not sure Agree Strongl
y Agree
Total
ABL Officers 0 0 0 3 7 10
%age
0 0 0 30% 70% 100
%
BAF Officers 0 0 0 2 3 5
%age
0 0 0 40% 60% 100
%
The above-given table shows that 03 respondents (30%) out of 10 (100%) have circled
“Agree” option while 07 respondents (70%) out of 10 (100%) have chosen “Strongly Agree”
at ABL and 02 respondents (40%) out of 05 (100%) in Bank Al-Falah have chosen “Agree”
and 03 respondents (60%) out of 05 respondents (100%) have circled “strongly Agree” (Table
4.36).
Table 4.37
PRP has Aided to Achieve Organizational Goals.
PRP
Statements
Strongly
Disagree
Disagree Not sure Agree Strongly
Agree
Total
ABL Officers 0 0 0 3 7 10
%age
0 0 0 30% 70% 100
%
BAF Officers 0 0 0 1 4 5
%age
0 0 0 20% 80% 100
%
The above-given table indicates that 03 respondents (30%) out of 10 (100%) have circled
“Agree” option while 07 respondents (70%) out of 10 (100%) have chosen “Strongly Agree”
at ABL and 01 respondent (20%) out of 05 (100%) in Bank Al-Falah have chosen “Agree” and
04 respondents (80%) out of 05 respondents (100%) have circled “strongly Agree” (Table
4.37).
109
Table 4.38
PRP Prevents Teamwork
PRP
Statements
Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 3 6 0 1 0 10
%age 30% 60% 0 10% 0 100%
BAF Officers 3 2 0 0 0 5
%age 60% 40% 0 0 0 100%
According to the above-given table 03 respondents (30%) out of 10 respondents (100%)
have selected “ Strongly Disagree” option and 06 respondents (60%) out of 10 (100%) have
chosen “ Disagree” option while 01 respondent (10%) out of 10 (100%) have circled “Agree”
at ABL and 03 respondents (60%) out of 05 (100%) in Bank Al-Falah have chosen “Strongly
Disagree” and 02 respondents (40%) out of 05 (100%) have circled “Disagree” option (Table
4.38).
Table 4.39
PRP Helps Novel Work Practices.
PRP
Statements
Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 0 1 0 6 3 10
%age 0 10% 0 60% 30% 100%
BAF Officers 0 0 0 3 2 5
%age 0 0 0 60% 40% 100%
According to table No. 4.39, 01 respondent (10%) out of 10 (100%) have chosen “Disagree”
option while 06 respondents (60%) out of 10 (100%) have circled “Agree” at ABL and 03
respondents (60%) out of 05 (100%) in Bank Al-Falah have chosen “Agree” and 02
respondents (40%) out of 05 (100%) have circled “Strongly Agree” option (Table 4.39).
110
Table 4.40
PRP Controls Turnover.
PRP
Statements
Strongly
Disagree
Disagre
e
Not sure Agree Strongly
Agree
Total
ABL Officers 0 0 0 7 3 10
%age 0 0 0 70% 30% 100%
BAF Officers 0 0 1 2 2 5
%age 0 0 20% 40% 40% 100%
The above-given table indicates that 07 respondents (70%) out of 10 (100%) have chosen
“Agree” option while 03 respondents (30%) out of 10 (100%) have circled “ Strongly Agree”
at ABL and 01 respondent (20%) out of 05 (100%) in Bank Al-Falah have chosen “Not Sure”
and 02 respondents (40%) out of 05 (100%) have circled “Agree” while 02 respondents (40%)
out of 05 (100%) have circled “Agree” (Table 4.40).
Table 4.41
PRP has Affected Associations with Staff Negatively.
PRP
Statements
Strongly
Disagree
Disagree Not
sure
Agree Strongl
y Agree
Total
ABL Officers 3 7 0 0 0 10
%age 30% 70% 0 0 0 100%
BAF Officers 1 4 0 0 0 5
%age 20 80% 0 0 0 100%
The above-given table shows that 03 respondents (30%) out of 10 respondents (100%) have
selected “ Strongly Disagree” option and 07 respondents (70%) out of 10 (100%) have chosen
“ Disagree” option at ABL and 01 respondent (20%) out of 05 (100%) in Bank Al-Falah have
chosen “Strongly Disagree” and 04 respondents (80%) out of 05 (100%) have circled
“Disagree” option (Table 4.41).
111
Table 4.42
PRP has Supported Management Control over Staff.
PRP
Statements
Strongly
Disagree
Disagree Not
sure
Agree Strongly
Agree
Total
ABL Officers 3 6 1 0 0 10
%age
30% 60% 10
%
0 0 100%
BAF Officers 3 2 0 0 0 5
%age 60% 40% 0 0 0 100%
The above table shows that 03 respondents (30%) out of 10 respondents (100%) have
selected “ Strongly Disagree” option and 06 respondents (60%) out of 10 (100%) have chosen
“ Disagree” and 01 respondent (10%) out of 10 respondents (100%) have selected “ Not sure”
option at ABL and 03 respondents (60%) out of 05 (100%) in Bank Al-Falah have chosen
“Strongly Disagree” and 02 respondents (40%) out of 05 (100%) have circled “Disagree”
option (Table 4.42).
Table 4.43
PRP Aids the Recruitment of Innovative Talent.
PRP
Statements
Strongly
Disagree
Disagree Not
sure
Agree Strongl
y Agree
Total
ABL Officers 0 0 0 5 5 10
%age 0 0 0 50% 50% 100%
BAF Officers 0 0 1 2 2 5
%age 0 0 20% 40% 40% 100%
The above-given table shows that 05 respondents (50%) out of 10 (100%) have chosen
“Agree” option while 05 respondents (50%) out of 10 (100%) have circled “ Strongly Agree”
at ABL and 01 respondent (20%) out of 05 (100%) in Bank Al-Falah have chosen “Not Sure”
and 02 respondents (40%) out of 05 (100%) have circled “Agree” while 02 respondents (40%)
out of 05 (100%) have circled “Agree” (Table 4.43).
112
Table 4.44
PRP has been Economical for the Organization.
PRP
Statements
Strongly
Disagree
Disagree Not
sure
Agree Strongl
y Agree
Total
ABL Officers 0 0 0 4 6 10
%age 0 0 0 40% 60% 100%
BAF Officers 0 0 0 1 4 5
%age 0 0 0 20% 80% 100%
According to the above-given table, 4 respondents (40%) out of 10 (100%) have circled
“Agree” option while 06 respondents (60%) out of 10 (100%) have chosen “Strongly Agree”
at ABL and 01 respondents (20%) out of 05 (100%) in Bank Al-Falah have chosen “Agree”
and 04 respondents (80%) out of 05 respondents (100%) have circled “strongly Agree” (Table
4.44).
4.8 Specific Response to PRP Section Services Officers (Appendix C)
The Specific Response Section produced 2-3 line sentence answers to questions in which
respondents were asked to elaborate on their answers about some of the general statements
posed to them in the previous section for interview 25% of the population was selected
randomly. The aim of this section was to gauge the feelings of staff to the current PRP scheme
and to gather their opinions on the trends perceived. An initial analysis of the respondents
indicated certain broadly general trends among the opinions expressed by staff. A deeper
analysis would also possibly indicate the regional and cultural influences upon staff in their
expressed opinions. This however would be beyond the scope of this research work; it would
also introduce the risk of bias and subjectivity, therefore this was avoided and only a broad
spectrum of opinion was taken into consideration.
The response analysis for the Specific Response Section for Services Officers was as
follows
113
Table 4.45
Do you Think PRP Fits with the work Culture at your Bank? How?
Statement
ABL
Young
personnel
Novice Bank
performance
HR
efforts
Initially
harder
Stated 74 62 56 32 23
%age 70% 59% 53% 30% 21%
Statement
Bank Al-
Falah
Young
personnel
Novice Bank
performance
HR
efforts
Initially
harder
Stated 31 30 28 29 6
%age 93% 90% 84% 87% 18%
The general opinion believed was strongly in favour of PRP with the existing work culture
at ABL and bank Al-Falah. The above-given table indicates that 74 respondents out of 105
(70%) felt that it is good for young, dynamic personnel in Services at the ABL and 31
respondents out of 33 (93%) in Bank Al-Falah stated the same. 62 respondents (59%) at ABL
felt that the newer, younger recruits adjusted very quickly to a reward- and result-orientated
work culture and 30 respondents (90%) stated in bank Al-Falah. 56 respondents (53%) at ABL
have a feeling that the performance of the bank over the last 5 years made PRP the more
acceptable for the ABL and 28 respondents (84%) in Bank Al-Falah. 32 respondents (30%)
employees of ABL mentioned the efforts made by the Human Resources team in introducing,
implementing, and guiding the PRP process among staff in order to make it more transparent
and 29 respondents (87%) in Bank Al-Falah. 23 respondents (21%) of ABL felt that it was
tougher for them to adjust initially to a PRP-driven work environment and 6 respondents (18%)
in Bank Al-Falah (Table 4.45).
114
Table 4.46
Do you Think PRP has Improved Organizational Performance? How?
Statement
ABL
Better, work
environment
Better
teamwork
Additional
initiative
Competition Felt
pressure
Stated 85 80 74 63 21
%age 80% 76% 70% 60% 20%
Statement
Bank Al-
Falah
Better, work
environment
Better
teamwork
Additional
initiative
competition Felt
pressure
Stated 27 28 27 22 5
%age 81% 84% 81% 66% 15%
Respondents stated a general opinion favouring PRP’s positive impact on organizational
performance, although a slight minority felt pressurized by the result-orientated atmosphere
created by PRP. When the respondents were asked about 85 respondents (80%) ABL staff felt
PRP had improved the organizational performance and general work atmosphere in the
department and 27 (81%) at Bank Al-Falah. 80 officers (76%) ABL staff mentioned PRP had
improved their ability to take initiative and responsibility in their job and 28 (84%) In Bank
Al-Falah. 74 felt (70%) ABL personnel stated that PRP had improved teamwork; that it had
created a mutual give-and-take atmosphere within the department and 27 (81%) of Bank Al-
Falah. 63 officers (60%) ABL staff felt that PRP had increased competition within the
department, but also expressed it was good for themselves and the department 22 (66%) in
bank Al-Falah. 21 respondents (20%) staff of ABL admitted to feeling pressurized by the
competitive atmosphere generated by PRP and 5 (15%) employees in bank Al-Falah (Table
4.46).
115
Table 4.47
Do you think PRP is a Motivational Factor for Your Performance? Why?
Statement of
ABL
Motivated.
By monetary
rewards
Underpin
s reward
for effort
Good Job Good
bank
Good
omen
Stated 89 87 83 66 48
%age 84% 82% 79% 62% 45%
Statement of
Bank Al-
Falah
Motivated.
By monetary
rewards
Underpin
s reward
for effort
Good
Job'
Good
bank
Good
Omen
Stated 29 27 27 29 25
%age 87% 81% 81% 87% 75%
An overwhelming majority expressed positive opinions in favour of PRP as a
motivational factor in performance improvement. 89 respondents (84%) ABL staff felt
motivated by monetary rewards and were moved to work harder to deserve the reward and 29
(87%) in Bank Al-Falah. 87 officers (82%) ABL staff felt justified by the PRP system as a
reward for their efforts – past and future and 27 (81%) in Bank Al-Falah. 83 officers (79%)
ABL staff felt that they were holding an extremely ‘good and rewarding job’ which motivated
them to work harder to keep it and 27 (81%) in bank Al-Falah. 66 officers (62%) staff felt that
ABL has been a good company to work for, which motivated them to work harder and 29
(87%) employees thought about Bank Al-Falah. 48 respondents (45%) staff in ABL felt that
their current job was a ‘good omen’ – that they were lucky to be holding it and 25 (75%) in
Bank Al-Falah (Table 4.47).
116
Table 4. 48
Have you had any Problems with the Broad Principles behind PRP Implementation?
What are they?
Statement
ABL
Initial
fears
Impressed
with
consistency
Gradually
convinced
Right
principles
Totally
convinced
Stated 38 53 54 60 81
%age 36% 50% 51% 57% 77%
Statement
Bank Al-
Falah
Initial
fears
Impressed
with
consistency
Gradually
convinced
Right
principles
Totally
convinced
Stated 13 17 19 24 28
%age 39% 51% 57% 72% 84%
Most of the respondents seem to agree in principle about the policies behind PRP
implementation, although different numbers of people were convinced about the process in
different stages for different reasons. 38 respondents (36%) in ABL admitted to initial fears
about the process that it would lead to a pushier, more aggressive work culture and 13 (39%)
respondents in Bank Al-Falah. 53 respondents (50%) of ABL were convinced by the regularity
with which the scheme was implemented and 17 (51%) respondents believed in Bank Al-Falah.
54 respondents (51%) in ABL admitted that they were gradually convinced about the fairness
of the scheme after watching more and more people come under its fold and being tangibly
rewarded for effort and 19 (57%) of Bank Al-Falah. 60 respondents (57%) ABL staff agreed
with the broad principles behind the company’s PRP ideas and 24 (72%) staff of Bank Al-Falah
stated the same. 81 respondents (77%) ABL staff said they were totally convinced about the
company’s commitment after being under PRP for the first couple of years and 28 (84%) stated
the same in Bank Al-Falah (Table 4.48).
117
Table 4.49
Have you had any Problems with the Perception of Fairness in the PRP implementation
methods? Why?
Statement
ABL
Feared lack of
understanding
Feared
favouritism
Feared
divisiveness
Grievance
referral
Overall
fair and
objective
Stated 38 50 61 69 88
%age 36% 47% 58% 65% 83%
Statement
Bank Al-
Falah
Feared lack of
understanding
Feared
favouritism
Feared
divisiveness
Grievance
referral
Overall
fair and
objective
Stated 10 12 13 14 28
%age 30% 36% 39% 42% 84%
Many respondents admitted to initial feelings of fear and mistrust in the fairness behind
PRP implementation. However, it is now apparent that most staff has overcome their fears after
coming under the PRP fold, and experiencing its benefits. 38 Officers (36%) ABL staff
admitted that they feared a lack of understanding about the complications of their jobs on the
part of managers before the PRP process started and 10 (30%) in bank Al-Falah. 50 officers
(47%) ABL staff admitted that they initially feared that there would be widespread favouritism
in the implementation process and 12 (36%) staff of bank Al-Falah stated the same. 61 sales
officers (58%) ABL staff admitted that they had initially feared PRP could cause divisiveness
in a multicultural, multiregional workforce such as this and 13 (39%) of Bank Al-Falah. 69
respondents (65%) ABL staff showed that there were sufficient grievance reprisal mechanisms
in the current PRP implementations within the company and 14 (42%) in bank Al-Falah. 88
respondents (83%) ABL staff felt that the overall process of PRP as being implemented was
fair and objective and 28 (84%) in Bank Al-Falah stated (Table 4.49).
118
Table 4.50
How do you perceive changes in your relationship with the management because of
PRP?
Statement
ABL
Managers
as
mentors
Better
understandin
g
Equal
partners
Openness
& trust
Enhanced
team
effort
Stated 38 66 65 72 83
%age 36% 62% 61% 68% 79%
Statement
Bank Al-
Falah
Managers
as
mentors
Better
understandin
g
Equal
partners
Openness
& trust
Enhanced
team
effort
Stated 16 22 23 25 28
%age 48% 66% 69% 75% 84%
A predominant number of respondents felt that PRP had contributed to an overall
improvement in the nature of their relationship with their managers. 38 officers (36%) ABL
Personnel felt that managers had been their mentors during their career growth and 16 (48%)
employees have the same statement in Bank Al-Falah. 66 officers (62%) ABL staff felt that
managers now well understood the difficulties in their work and 22 (66%) in Bank Al-Falah.
65 of them (61%) of ABL staff felt that they both – officers and managers – were now equal
partners in the work process and 23 (69%) in bank Al-Falah stated the same. 72 officers (68%)
ABL staff felt that there were more openness and trust between them and managers and 25
(75%) Bank Al-Falah staff felt the same. 83 respondents (79%) staff of ABL opined that PRP
had enhanced overall team effort and 28 (84%) in Bank Al-Falah (Table 4.50).
119
Table 4. 51
How do you Observe Changes in your Own Position in the Department Caused by
PRP?
Statement
ABL
Slight
jealousy
Pressure
of expects.
More
conscious of
results
Increase
d
prestige
Increased
responsibili
ties
Stated 17 34 46 63 74
%age 16% 32% 43% 60% 70%
Statement
Bank Al-
Falah
Slight
jealousy
Pressure
of expects.
More
conscious of
results
Increase
d
prestige
Increased
responsibili
ties
Stated 6 14 17 22 20
%age 18% 42% 51% 66% 60%
Respondents felt some changes in both their personal and professional situations within
their respective departments. 17 respondents (16%) ABL staff felt that some of their colleagues
in other departments who were not covered by PRP felt some envy and jealousy towards them
and 6 (18%) in Bank Al-Falah. 34 officers (32%) ABL employees said they felt the pressure
of increased expectations on them, but added that they were not worried about it and 14 (42%)
said the same in Bank Al-Falah. 46 officers (43%) ABL staff felt that PRP had made them
more aware and conscious of the importance of results and 17 (51%) mentioned in Bank Al-
Falah. 63 respondents (60%) ABL staff said that PRP had increased the prestige of their jobs
as compared to others and 22 (66%) said the same in Bank Al-Falah. 74 respondents (70%)
ABL staff felt that their responsibilities had increased after PRP implementation and 20 (60%)
felt in Bank Al-Falah (Table 4.51).
120
Table 4.52
What are the Negative Aspects of PRP Implementation?
Statement
ABL
May
increase
greed
May Increase
complacency
Favouring
younger
employees
No contd.
financial.
Commitment
Reglsm/
Factlsm
Stated 19 27 36 51 56
%age 18% 25% 34% 48% 53%
Statement
Bank Al
Falah
May
increase
greed
May Increase
complacency
Favouring
younger
employees
No contd.
financial
commitment
Reglsm/
Factlsm
Stated 5 9 16 9 18
%age 15% 27% 48% 27% 54%
Many respondents uttered certain vague feelings about potential problems that may appear
later. Most of them insisted that they were happy with the way PRP was currently being
implemented but because there was an option in the questionnaire for them to express their
worries, they felt that these could be included. 19 respondents (18%) ABL staff felt that PRP
could increase greed among employees, especially among the new staff and 5 (15%) said in
bank Al-Falah. 27 of them (25%) ABL staff felt that due to the continued good performance of
the bank, officers could become satisfied in their efforts. The bank had established a name for
itself in the market due to hard work and was virtually a monopoly now. This may lead staff to
think that the results would come in any way without much effort and 9 (27%) in bank Al-
Falah felt the same. 36 of them (34%) ABL staff felt that there was a general perception that
PRP systems favoured younger employees more than the older ones and 16 (48%) thinks in
Bank Al-Falah. 51 officers (48%) ABL staff was worried that the company may not sustain the
financial commitment required for increased PRP scheme and 9 (27%) staff in Bank Al-Falah.
56 officers (53%) expressed fears of regionalism and factionalism cropping up during later
stages because these were common factors in workplaces in developing countries as compared
to a more professional work atmosphere in developed countries and 18 (54%) fears in Bank
Al-Falah (Table 4.52).
121
Table 4.53
How has PRP Changed you Personally and Professionally?
Statement
ABL
Incr. belief
in own
abilities
Learning
process
Enhanced
social
prestige
Impact of
monetary
rewards
Enhance
d career
growth
Stated 49 66 81 87 89
%age 46% 62% 77% 82% 84%
Statement
Bank Al-
Falah
Incr. belief
in own
abilities
Learning
process
Enhanced
social
prestige
Impact of
monetary
rewards
Enhance
d career
growth
Stated 17 22 27 29 28
%age 51% 66% 81% 87% 84%
The overall response of Officers was overwhelmingly positive about the beneficial effects
of PRP on their personal and professional life. 49 of them (46%) ABL staff said that PRP had
enhanced their belief in their own abilities and 17 (51%) said in bank Al-Falah. 66 of them
(62%) ABL staff said that after PRP was implemented, the job had become a huge learning
process for them, not just a job and 22 (66%) said in Bank Al-Falah. 81 of them (77%) ABL
staff said PRP and its impact on their jobs had enhanced their social status and respect and 27
(81%) in Bank Al-Falah said the same. 87 of them (82%) ABL staff said that the financial
rewards had a marvellous impact on their personal lifestyle and 29 (87%) staff said in Bank
Al-Falah. 89 officers (84%) ABL staff cited PRP as a prime factor in their career growth and
28 (84%) mentioned the same in Bank Al-Falah (Table 4.53).
122
Table 4.54
Would you like to add any other Comments of your own about the PRP Scheme in your
bank?
Statement
ABL
More
opprtnts
Improved.
emplyblty
Improved
confabt
results
Imprvdind
comp
Overall
benefits
Stated 50 58 64 65 84
%age 47% 55% 60% 61% 80%
Statement
Bank Al-
Falah
More
opprtnts.
Improved
emplyblty
Improved
confabt
results
Imprvdind
comp
Overall
benefits
Stated 16 23 22 21 27
%age 48% 69% 66% 63% 81%
The overall response of Officers to the usual PRP schemes in their bank has been extremely
positive. (However, there were few respondents (3%) who stated this job had been more
distress to them because they were under continuous pressure from their family members to
recommend them for jobs in the department. 50 respondents (47%) ABL staff felt that being a
PRP beneficiary in the bank had put many more career opportunities their way and 16 (48%)
in Bank Al-Falah. 58 respondents (55%) ABL felt PRP had improved their personal
employability and professional market value and 23 (69%) in Bank Al-Falah. 64 respondents
(60%) said that PRP had increased their confidence in their ability to get results and 22 (66%)
in Bank Al-Falah. 65 of them (61%) ABL Staff felt that PRP had benefited the overall
competitive atmosphere in the banking sector and 21 (63%) in Bank Al-Falah. 84 respondents
(80%) said that PRP at ABL and 27 (81%) in Bank Al-Falah had offered several benefits in
their overall professional and personal life (Table 4.54).
123
4.9 Descriptive Statistics
Table 4.555
Descriptive Statistics
N Minimum Maximum Mean Std.
Deviation
Organizational Performance 1485 3 5 3.97 .471
Performance Related Pay 145 2 5 3.60 .682
Attitude 145 2 5 3.23 .689
Valid N (listwise) 145
Perfor.123mance Rel. 123ated P.123ay * Org.123anizational performa .123nce
Organizational Performance Mean N Std.
Deviation
3.2 2.68 5 .179
3.4 2.64 22 .374
3.6 3.26 32 .265
3.8 3.31 15 .128
Agree 3.77 12 .078
4.2 3.75 4 .100
4.4 4.09 35 .156
4.6 4.58 12 .103
4.8 4.72 8 .104
Total 3.60 145 .682
124
Per.123forman.123ce Rel.123ated Pa.123y * Atti.123tud.123e
Attitude Mean N Std.
Deviation
1.6 2.17 6 .151
1.8 2.60 3 .200
Disagree 2.40 2 .000
2.2 2.80 2 .000
2.4 2.80 12 .000
2.6 2.85 4 .100
2.8 3.00 1 -
Not Sure 3.16 10 .084
3.2 3.46 45 .244
3.4 3.85 15 .092
3.6 4.16 17 .079
3.8 4.20 4 .000
Agree 4.37 7 .180
4.2 4.54 7 .151
4.4 4.67 6 .103
4.6 4.80 4 .000
Total 3.60 145 .682
125
4.10 Correlations
Organizational
Performance
Performance
Related Pay
Organizational
performance
Pearson
correlation
1 .929**
Sig. (2 tailed) .000
N 145 145
Performance
Related Pay
Pearson
correlation
.929** 1
Sig. (2 tailed) .000
N 145 145
** Correlation is significant at the 0.01 level (2-tailed)
Model Variables
Entered
Variables
Removed
Method
1 Attitude,
organizational
performance
Enter
a. All requested variables entered.
b. Dependent Variable Performance Related Pay
126
Model Summary
Model R R Square Adjusted R.
Square
Std. Error of
the Estimate
1 .971* .944 .943 .163
a. Predictors: (Constant), Attitude, Organizational Performance
ANOVAb
Model Sum of
Squares
Df Mean
Square
F Sig.
1 Regression
Residual
Total
63.139
3.779
66.918
2
142
144
31.569
.027
1.186E3 .000*
a. Predictors (Constant), Attitude, Organizational performance
b. Dependent Variable Performance Related Pay
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficient
t
sig.
B Std. Error Beta
1 (Constant) -.632 .140 -4.518 .000
Organizational
Performance
.583 .061 .403 9.535 .000
Attitude .591 .042 .598 14.146 .000
a. dependent Variable: Performance Related Pay
127
4.10 Specific Response to PRP Branch Managers (Appendix D)
The number of respondents among Branch Managers at ABL was only 10 and 3 was in
Bank Al-Falah. Most of them were more or less of the same background – age group,
qualifications, and experience –initial analysis of the responses found very similar answers and
opinions expressed by all of them across the board. Hence, a %age analysis was not done for
this section; however, an attempt has been made to categorize the responses under common
criteria. The response analysis for the Specific Response Section for Branch Managers was as
follows
Question 1 Do you think PRP is important for the working environment at your bank?
Why?
All respondents were extremely positive about the impact of PRP on the work culture at
ABL and Bank Al-Falah. PRP has been instrumental in encouragement a youthful, dynamic
work culture among all services staff irrespective of age, experience, and seniority in both
banks. The ABL’s initial years under Employees’ management were more conservative and
people-oriented instead of result-orientated work culture. Management had initial doubts about
the capabilities of staff in meeting the challenges in the banking sector that ABL had before
itself. In Bank Al-Falah the management was sure that they make their name in the sector in a
short span of time with good customer care. Top management gambled on staffing the services
and business development department with a mixture of youth and experience. The experiment
has created a work culture at ABL now that has rewritten the standard rules of Customer service
in the banking sector in Pakistan. In the bank Al-Falah, managers had the view that this bank
was started with an innovative and modern system and has attracted good professionals with
competitive salaries from the market.
128
Question 2 Do you think PRP has an impact on the organizational performance at your
bank? How?
Respondents expressed their opinions on the impact of PRP on the normal work process at
both banks. PRP had led to a mentoring system at ABL; there was a common perception that
customer service, despite individual results, was a team effort. In bank Al-Falah the
respondents mentioned that PRP is vital to survive and compete in the market. PRP had
enhanced the team-working atmosphere in the branches in ABL; In Bank Al-Falah there were
many occasions of staff going beyond the call of their duty to help out their workmates which
is an example of good teamwork. Monetary rewards had become yoking factor respondents
said in both banks. PRP also helped the ABL staff in competing with government monopoly
and other competitors. In the bank Al-Falah, PRP has given them peace of mind and financial
security. PRP also provides the incentive for many ABL staff to volunteer for undertaking
difficult assignments in remote areas with no basic facilities said in both banks.
Question 3 Do you think PRP has been playing a motivational role in performance
improvement?
A great amount of 100% of effort confirmed PRP is a tool of motivation among staff and
line management for performance improvement in both banks. The economy offers few similar
job opportunities for educated, upwardly mobile youngsters; a job like this with excellent
monetary rewards is seen as a shortage – ‘tough to get and tougher to retain’. The motivation
to perform is automatic. Many staff members’ personal and family backgrounds demand them
to work even harder to earn those monetary rewards. Both staff and the bank are profited. Many
new entrants feel lucky to be in a job that offers such excellent monetary rewards. Bank staffs
know that they are doing a difficult job; it motivates them to work even harder to know that
they are being rewarded for their efforts. Many staffs see themselves as playing an important
part in Pakistan’s transition to a service-orientated economy by working in this job.
129
Question 4 Do you think PRP is well integrated with Performance Appraisal processes in
your bank? How?
The Branch Managers held positions in between that of direct operations and line managers.
This gave them the opportunity and perspective to judge the PRP process as not just part of
employee reward but as a crucial part of the larger employee development process. Most of
them saw PRP as being the stepping stone to better performance management processes. The
banks’ recruitment policies have ensured that the best talent is recruited, trained well, and fully
joined into the performance process. The mentoring system dominant at the Services/Operation
staff throughout the country ensures that new recruits are willing and enthusiastic about
attempting new job challenges in both banks. There are generous promotional opportunities
within ABL and Bank Al-Falah itself. The Human Resources department extends full support
to employee development processes. The increased reward for struggle has also proven to be
an incentive for officers to enlarge the dimensions of their job, by taking on extra
responsibilities. Many services/BD staff now sees customer services, training, and customer
care as part of their job, not just selling.
Question 5 Could you tell me about the management support of PRP schemes?
In both Banks, all the respondents expressed complete satisfaction with the extra support
extended by management, both from head office and at the regional head offices. In ABL many
of these managers have been working under both previous age and with new management and
in Bank Al-Falah many managers switched over from other banks, they say about PRP is a
strategic part of management policy. Top management – at regional head offices, head office,
and from the board – are fully involved in the operational processes in ABL. In bank Al-Falah
all top managers are extremely sensitive to the problems involved in banking operations in
developing countries. Many managers have long experience of banking services in developing
countries, sometimes operating in regions with high risks of danger to life and property. In both
130
banks, top management is also extremely understanding of local cultural issues that may affect
banking performance especially for the last decade of terrorism in KP. This is one of the factors
in the performance appraisal matrix tooled to reflect the ground realities in Pakistan rather than
just of management theory. The top management has so far never ungenerous on the financial
commitment behind the PRP payouts. Although extremely conscious about cost-effectiveness.
In both banks, management members are also fully involved in the Performance Management
processes in place.
Question 6 Do you think the levels of understanding and cooperation among staff towards
PRP is satisfactory?
Many respondents in both banks were completely satisfied with the cooperation received
so far from all levels of staff towards achieving the banks’ objectives. There were some
perceptions when the BD and services departments were being established and PRP systems
being brought in, that staff would have a more laid-back attitude towards work, and that a
result-orientated work environment ‘would prove too much for them in ABL’. In both banks,
although none of the staff were openly against the principles of extra efforts and being rewarded
for it, the management made special efforts to enlighten staff on the PRP process and their
commitments towards it. In bank Al-Falah Operation staff now operates with the work ethics
that they all have common stakes in the results achieved by the department. Staff fully
cooperate in the performance assessment and appraisal process and are able to measure their
own performance objectively in both banks. In both banks, many staff take it upon themselves
to mentor new recruits and explaining the niceties of the banking sector especially in difficult
marketing assignments. This produces a general atmosphere of trust and mutual respect.
131
Question 7 What is your opinion on management’s satisfaction with the cost-effectiveness
of the process?
Most respondents also had operational responsibilities in accounting for pay costs including
that of PRP. They expressed the opinion that although it would not be possible to run a blank-
cheque organization, employees also realize this and were willing to accept budgetary
limitations. Top management of ABL and Bank Al-Falah both in Pakistan have been extremely
cost-conscious about PRP but have continued both the scheme and the financial allocation for
it. Board management of both banks have also factored in the initial difficulties involved in
expanding banking service markets in developing countries; they are prepared to be generous
with the incubation period of investments, which include the HR budgets. Board management
of Bank Al-Falah has also given the top management in Pakistan, a free hand with HR practices.
ABL due to the impressive results achieved, management has so far never withdrawn on their
financial commitment. In both banks, the management has every intention of continuing its
PRP schemes into the future, because of the prospects of competition.
Question 8 How do you think PRP has affected the overall work environment?
All respondents of both banks equally felt that PRP had improved the overall work
environment at the Services/Operation of ABL and the same was in Bank Al-Falah. ABL
respondents stated PRP has improved the motivation of employees in working hard and
achieving even harder targets. Respondents in bank Al-Falah mentioned that PRP has enhanced
the employees’ self-belief and abilities in getting results. ABL managers said that PRP has been
responsible for changing ‘the public sector mentality’ which many employees brought with
them while joining the company, and turning them into an aggressive, result-orientated bunch.
In the bank Al-Falah, PRP has encouraged employees to take initiative into fulfilling additional
commitments with the job and making them realize that ‘their job just doesn’t stop with
selling’. Managers of both banks mentioned about PRP has also made them realize that despite
132
the individual measurement of results achieved, the bank is ‘stand and fall on the quality of its
teamwork’; hence, employees take care not to affect teamwork which is a key of organization
development.
Question 9 What do you think are the negative aspects of PRP implementation?
As with the Services Officers, all respondents agreed that they had no argument with either
the principles or the process of PRP implementation as prevalent currently. Most concerns
expressed were about the potential problems that could be caused if sufficient care were not
exercised. Given current market conditions, ABL had an excellent performance in the banking
sector, producing excellent results over the last few years. This has ensured that staff has also
benefited from generous PRP pay-outs. But there is a danger of this generating satisfaction.
Bank Al-Falah managers said that there are tougher and bigger competitors entering the market
and this could toughen market conditions in the coming years. ABL managers stated that new
banks with bigger resources that are entering the market could attract good employees with
higher reward possibilities. Bank Al-Falah managers viewed that with the maturing of the
sector, employees could look for a higher level of satisfaction rather than just provided by
monetary rewards. In both banks, internal hostility is always potential risks in a multiregional,
multicultural work environment as in Pakistan, which can be especially harmful to a sensitive
issue such as employee reward.
133
Question 10 You are requested to add any other comments of your own about the PRP
scheme in your bank?
Respondents expressed opinions mostly ranging about the future direction of PRP. In ABL
4 respondents (40%) expressed the hope that the Board of Directors continues to support PRP
into the future and not discontinue it once the market reaches a particular saturation point
similarly 2 (40%) respondents had the same answer in Bank Al-Falah. In ABL 6 respondents
(60%) specifically hoped that there would not be any reduction in the PRP budgetary
allocations in bank Al-Falah 3 (60%) were optimistic about PRP continuity. In ABL mostly
respondents expressed fears about the possibility of complacency creeping into the employees’
efforts given the continued strong market performance of ABL. In Bank Al-Falah there was
some concern expressed about some younger employees demanding PRP as a right rather than
as a reward for effort. In bank Al-Falah mostly respondents were also concerned about the
possibility of employee turnover caused by the potential entry of competitors into the market
offering higher benefits.
4.11 Interviews with Regional/Area Managers of ABL and Bank Al-
Falah– Peshawar
Personal interviews were conducted with two Regional Managers of ABL and two Area
Managers of Bank Al-Falah at Peshawar offices. These two respondents were chosen to
represent the head office. As the designation implies, these officers are responsible for the BD
and services operations of the entire region. They are also held accountable for operational
budgets. Both managers of each bank are involved in the administration, monitoring,
evaluation, and feedback process of PRP implementation. They liaise extensively with head
offices about results achieved and the PRP implementation process. The interview with both
managers of ABL and Bank Al-Falah consisted of structured questions. Additional
clarifications in the form of unstructured questions were sought where it was felt necessary.
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The questions covered a range of topics from the preparation involved in PRP implementation
until the current evaluation.
Question 1 Could I ask about your educational and professional background?
Both Managers of ABL hold MBA Degrees with a specialization in Finance and
Management. One has over 25 years of experience in the banking industry and the other is
working for 22 years. They have worked for several years in the banking sector of Pakistan.
He joined as an Officer and is now RM at Peshawar region-1 for the last 3 years similarly the
other RM for region-2 is RM for the last 5 years and associated with ABL for the last 16 years.
Bank Al-Falah Area manager area-1 has obtained Commerce degree and have brought 18 years
of experience with him and he is associated with Bank Al-Falah for last 4 years and working
as area manager for last 2 years, his other colleague Area Manager area -2 is associate with
Bank Al-Falah for last 8 years and have switched over from another bank while served there
for 9 years and working on his current position for last 3 years.
Question 2 Can you describe your career experience in this bank?
The ABL RM region-I has been with ABL since its employees owned bank in 1991 and has
joined as a junior officer and he mentioned that he enjoys his work with ABL and RM region-
II is associate since 2001 he joined as a branch Manager before coming here he worked for two
banks on different positions. Bank Al-F Area Manager Area –I has joined this bank in 2011 as
an AVP who served as branch manager of different branches and launched many braches in
Peshawar and the Area manager area-2 has joined as Manager and served foreign bank before
joining Bank Al-F and he mentioned that he is a successful area manager while he is awarded
the best AM of the bank.
Question 3 Do you agree in principle with the implementation of PRP?
Both managers of ABL were fully supportive of PRP schemes since they felt that this was
vital for any type of organization in Pakistan in this competitive environment, and especially
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for the banking sector in South Asia. The RM region-1 of ABL felt that with the continuing
growth of the bank, he expects to see the performance appraisals grow accordingly, reflecting
the growth aims and the career enhancement areas of employees. The RM region-2 felt that
performance matrices should be factored to include business enhancement performances with
the branches and the corporate clientele quality support given to them. Area managers of Bank
Al-Falah were very supportive and appreciated the high-level reward emphasis in their bank
and the Area manager area-1 commended the efforts of top management the way they are
implementing fairly and Area Manager-2 mentioned that is why their bank is progressing
rapidly despite tough competition in the sector.
Question 4 Are you satisfied with the consultation with you by the management before
PRP implementation?
ABL managers expressed complete satisfaction with the HR and management inputs before
PRP was implemented. The RM region-2 was involved in HR inputs before implemented PRP
in the form of incentive pay like commissions, bonuses etc. He brought his experiences from
his previous bank which has an elaborate system of performance appraisals and matrices for
PRP for different departments including all employees. The area managers of Bank Al-Falah
mentioned about the implementation that Bank Al-Falah has a very strengthen HR system and
they are making it at par with the foreign banks and the HR management considers employees
an asset and in all decision about any employee who works in a branch the HR team consult
with Area Manager and Branch Manager.
Question 5 What differences do you see in the PRP implementation under both
Employees owned and present management of ABL?
Both managers see the PRP schemes as having evolved over the last 10 years from limited
incentive pay to full-fledged performance-related pay since the Bank’s employees owned days.
The RMs feel that previous approached, the PRP scheme with the right intentions, having
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already implemented similar schemes throughout the ABL extensively. The PRP scheme
however faced some difficulties – problems with results measurement caused by the
complexity in estimating the market size and potential consumers; some embedded behavioral
attitudes; the experimental nature of the scheme and policy etc. The RMs feels that present
management has managed to refine the scheme with the experience that the management team
brings with implementing similar schemes.
Question 6 What sort of support have you got from management so far PRP
implementation?
Both ABL managers are unanimous about the quality of management support received
through the years from both the previous and the current team in terms of financial
expenditures, strategic support, and appropriate technological investments. The PRP scheme
in some form or other has been running for the last 10 years, with more number of employees
being added to the scheme. In the bank Al-Falah, Managers mentioned that the appraisal
systems are also being constantly tooled to reflect the realities in the services process. This has
helped management avoid common mistakes made by many organizations in implementing
similar schemes. Both managers mentioned the efforts of HR in making the scheme accessible
and understandable to employees and the grievance redress procedures.
Question 7 What levels of cooperation have you received from staff for PRP?
Both managers in Al-Falah expressed satisfaction with the staff cooperation for PRP. The
excellent results of the company are testimony to this. During the early years of the Bank’s
operations, most staff were attracted to other service sectors and from other existing banks.
Many of them brought a laid-back, public sector attitude with them to the job. When the
management pushed them on results, many staff were uneasy about whether the system would
become too demanding for them and whether they would be able to cope with it. Also many
had doubts about whether the company would make good on its promise of rewards; many staff
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had bad experiences with companies that exploited labour without sufficiently rewarding them.
RMs of ABL mentioned that when the present management took over many employees had a
laid-back attitude of previous management but the new management was aggressively
expending and encouraging employees for a reward after result-oriented work, some
employees were also hesitant about the workability of the business development and customer
services concept itself – whether the market was ready for customer care based on new methods
and if the ABL would be able to compete with government-monopoly or other international
banks. PRP has succeeded in turning this bunch of employees into one of the most successful
services teams ever in Pakistan. The workforce has increased its own confidence in results;
shows a willingness to take on challenging market assignments; is ready to innovate,
experiment, and goes beyond the responsibilities of simply selling in order to enhance the
customer experience.
Question 8 Are you satisfied with the financial support that you have received so far from
the management?
Both managers expressed complete satisfaction with the financial support so far received
from the management. The staff pays budgets for the marketing department form a big part of
the operations budget and PRP allocations are calculated as a %age of the pay budget. PRP was
one of the conditions of handover from Motorola to OT and the latter has continued and
enhanced its commitment. The scheme has been running in some form or another for more than
9 years and the financial allocation has only increased every year. The Peshawar RM however
indicated that with newer, bigger companies entering the market, the marketing pressures
would increase. It would remain to be seen if the management decides on a strategy shift of
using its resources to preserve its market share rather than continue to pay more for employees
as reward for their marketing efforts.
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Question 9 Do you think PRP as a motivating factor for performance improvement?
Both Area managers of Bank Al-Falah expressed strong positive opinions about the impact
that PRP has had in motivating employees to performance improvement. The AMs mentioned
that with the problems faced by Pakistan like the slow pace of economic reforms, banking
hurdles, political and regional turmoil, etc., investment opportunities for investors have always
been limited. This has also restricted career opportunities for talented and skilled individuals.
RMs of ABL said that ABL played a big part in providing good career opportunities for many
qualified professionals and this is a factor that weighs uppermost in many staff minds. Many
feel that they hold a good job that pays extremely well; this is an aspiration for many in society.
This motivates them to work harder and constantly improve their performance. RM region-2
ABL feels that while it may seem naive to argue in favour of only monetary rewards as a
motivating factor, it makes perfect sense in an economy like this, where well-paid jobs are hard
to come by. Money continues to remain the single most important motivating factor for
performance improvement. This is aided by the fact that the bank also genuinely cares for its
employees and takes every care to develop all round employee performance which is important
for the organization development
Question 10 Do you agree that PRP is helping in improving team results?
Although the nature of the services officer’s job remains highly individualistic, both RMs
of ABL were of the view that team atmosphere remained a high priority for experience sharing.
There was a constant movement of staff within and between regions which is increasing
learning and provide extra exposure and the officers enthusiastically following up. Bank Al-
Falah Managers agreed upon the idea of PRP which is a wonderful tool for the encouragement
of employees in a challenging environment such as Peshawar which is badly hit by terrorism
for the last decade. The Area Managers of bank Al-Falah actively encouraged mentoring
schemes and group learning assignments. The AM area-1 was particularly concerned about the
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younger generation of recruits who’s typical of their age, would prefer easier work and quicker
results, without considering the other implications of the job. The RM hoped that officers would
also consider the extra dimensions involved in the bank job like customer satisfaction, speed
of response etc.
Question 11 Could you tell me whether PRP has contributed to any other benefits?
The RMs ABL Peshawar expressed that PRP had improved loyalty among employees. It
had also encouraged stability among the younger generation of recruits who normally tend to
get bored with jobs and incline to switch over much quicker. The challenge and rewards make
ABL an interesting place to work. The Area managers Peshawar bank Al-Falah felt that PRP
had been instrumental in inducing people of certain regions to take up careers with the
company. Usually, the cultural and social characteristics of people from some regions preclude
the possibility of taking up employment, especially in the service sector. Both felt that PRP has
also been a prime factor in attracting new talent, making banks a much desirable place for
employment. PRP and the monetary benefits had made a difference in many employees’ lives.
In a conservative society, the stigma surrounding a ‘banker’s job’ had been lifted, making it
seem monetarily productive and rewarding.
Question 12 Has PRP been a cause of any change in the working atmosphere?
Both RMs feel that PRP had evidently increased the status of the service's officers within
the organization. It had increased employee levels of self-confidence and assurance in getting
results and had fundamentally transmuted the staff into a vibrant, result-orientated workforce
who flourished in a ‘Conservative work atmosphere’. The RM region-2 however noted that
there was a peril of resentment against staff working in branches shown by employees of other
departments who may feel sidelined by the increased importance paid to the former. Managers
of Bank Al-Falah feel that the vibrant environment is bestowed to bank Al-Falah by PRP they
say all departments, no matter how small, are equally vital to the whole organization, and
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people working in administrative departments may feel left out of the benefits accrued to those
in services/BD staff working in branches. Also, Bank Al-Falah has recently begun to feel the
pressures of having grown-up too quickly. It faces problems with customer complaints about
poor services etc. Bank Al-Falah is making efforts to strengthen its customer service and call
centre operations and is experimenting with PRP systems there too. An opinion in a similar
manner was expressed by the RM region-1 ABL who felt that the ABL has strengthened its
customer services approach through PRP.
Question 13 Do you have any redress procedures for people who are not satisfied with
their PRP benefits?
ABL regional managers agreed that there would be discontented elements within the
process and acknowledged the importance of sufficient grievance redress procedures. The
performance appraisal was usually held midway through the financial year after the financial
review was completed. This would put past and future employee performance in perspective if
anything is missing so any employee can discuss it with the line manager which could be
rectified. In bank Al-Falah Managers mentioned about a 360-degree appraisal system has
introduced where employees could assess their own performance and match it with that of the
organization and peers. Line managers and team supervisors were completely involved with
performance reviews. They were open to suggestions and were constantly inviting feedback on
the review process in order to make it more transparent and neutral.
Question 14 Could you describe the quality of your interaction with the HR Department
in PRP implementation?
Area managers of bank Al-Falah have mentioned their interaction widely with the Human
Resources Team in head office – who initially supervised the PRP scheme at Bank Al-Falah–
and the HR team at head office which developed a broad nation-wide structure for the scheme.
ABL RMs said that they are in constant contact with the HR team regarding appraisal issues
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which are sometimes very sensitive. There was a particular appreciation for the performance
matrices which were evolved – and continue to evolve – after factoring in difficulties in
achieving results in different regions such as Peshawar with varying population, geographical
accessibility, technological infrastructure, government monopoly, political tensions and civil
unrest, and other competitors.
Question 15 Do you think PRP is growing in this organization in the future?
ABL RMs expressed the hope that he would like to see more employees and customer
relations staff being brought under PRP schemes. This would be easier as results would be
more measurable and calculable. However, RM region-1 said despite his strengths as a banker,
he was particularly obliged of the enormous technological and financial investments made by
the bank so far and the tough problems of maintaining that infrastructure and they hope that
PRP is flourishing in future which is a tool of motivation for employees and this is utmost
important to continue in this competitive environment. Bank Al-Falah managers seem to be
very optimistic about PRP and clearly expressed without this scheme it might be hard to stay
in the job. Bank Al-Falah's recent results were due to the Bank’s growing investment in
technology and infrastructure. They felt that the initial hard work of building the clientele was
over; in recent years the market for bank Al-Falah had practically built itself. However, the
problem would be if newer recruits lose interest and thought that it was their right to be
rewarded for performance, very little of which had to do with their efforts. With increasing
competition and the potential entry of bigger companies, marketing efforts should strengthen,
not diminish.
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4.12 Summary
The research work examines the implementation of Performance-Related Pay practices
as part of Employee Reward Systems for staff members of the Services/operation & Business
Development staff at ABL and Bank Al-Falah the leading banks in Pakistan. The research work
was conducted as a survey comprising of both questionnaires and semi-structured interviews
among chosen Services Officers, Branch Managers and Regional/Area Managers, representing
the department hierarchy. The Services Staff and Branch Managers were given a three-part
questionnaire to complete, in which they had to record their responses to both a series of
statements regarding PRP on an agreeability scale and provide short answers to some questions
posed about the issues raised by PRP. The Regional/Area Managers were required to respond
to a series of questions in interviews conducted with them, covering a range of PRP issues. In
view of the above, the responses from the Services Officers and the branch Managers cover the
whole range of problems about PRP, as do the interview questions with the Regional Managers.
By and large, the attitude towards PRP seems to be extremely positive and working. Many of
the responses were discussed and analytical in nature and the quantum of responses also
indicates that a vast majority of staff are indeed happy with the implementation of PRP and
believe that it has been a strong motivating factor in contributing towards an improved
performance for employees and the Organization and also PRP creates a bond between the two.
Therefore, PRP could be used as a motivational tool for the development of the Organization
and to achieve the employees’ commitment.
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CHAPTER 5
DISCUSSION AND CONCLUSIONS
5.1 Discussion
The first Hypothesis indicated that there is a significant relationship between
performance-related pay and Organization Development in the banking sector of Pakistan. The
range of responses from all the sample members indicates a broad agreeability to both the
principles of PRP and its implementation in PRP. Most of the respondents also seem to agree
that PRP has been a motivating factor for performance improvement. An analysis of the
demographic profile of all the respondents indicates that all respondents are extremely well
qualified, are sufficiently experienced in their fields, and are also the accurate age group as far
as career growth is concerned. While Maslow’s need hierarchy suggests the five levels of
human requirements consisting of basic needs, security, social need, admiration and self-
realization (Artz, 2008). Likewise, providing the mentioned factors can help in motivating and
enhancing the satisfaction level of the employees. Similarly, the two-factor theory proposed
Hygiene and Motivation factors in order to determine the satisfied and dissatisfied employees.
Hygiene factors are linked with job dissatisfaction including working environment,
organization’s policies and rules, and relationships with peers etc. When hygiene factors are
delivered to employees they can achieve a neutral state (neither satisfied nor dissatisfied) (Bol,
Hecht, & Smith. 2015)
The second hypothesis stated that there is a significant relationship between the degree
of motivation and Organization Development. The design and development process of PRP
schemes should provide a clear and complete definition of what is required in terms of
performance and what reward is associated with that performance and an unbiased system for
the evaluation of the performance. It also provides a valuable reward in compliance with the
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expectations of the employees value-for-money it means the PRP scheme must reap profits for
the organization to such an extent that they cover the cost of the scheme (Bratton, 2012). The
strongest endorsement of PRP has of course been that almost two-thirds of the respondents feel
that it has been the contributing factor for motivating them towards performance improvement.
The responses from the Services Officers have been more or less matched by that of the Branch
Managers whose opinions reflect similarity. Similarly, the Branch Managers also state that the
implementation and process of PRP has received the complete support of both management
and staff and that it has been seen, not just as a one-dimensional reward system but fully
integrated into the Performance Management processes. More importantly, PRP has also been
cost-effective for the organization and seems to be popular, especially among the younger staff
because they see it as making a good job seem even better. They feel that PRP and the monetary
rewards it brings have made a huge difference in their work and their motivation to achieve
better results.
The third hypothesis indicates that1 there1 is1 a significant relationship1 between1 job
satisfaction1 and1 organization development in1 the1 banking sector of Pakistan. The satisfaction
of employees from a job is one of the major issues organizations are facing today. Several
elements must be fulfilled to achieve the job satisfaction level of workforces. These elements
include job design, manager concern for his employees, working environment, appreciation
and rewards, and social relationships (Aziri, 2011).
Most respondents feel1 that1 the1 introduction1 of1 PRP1 has1 been necessary for the
corporate environment and that it is a fair process of rewarding effort. The majority of the
respondents of both banks also have a positive attitude towards the way PRP systems have been
managed and administered at their banks, including the performance appraisals, assessments,
and their expectations. According to Al-Zu’bi, (2010) the organization development and job
satisfaction are directly associated with each other. The researcher has found a relationship
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between the three components of organization development that is (distributive justice,
procedural justice and interactional justice) and clearly displayed the results that job
satisfaction is dependent upon organization development. If an organization wishes to facilitate
its workers in an effective way then they work efficiently to improve their performance in order
to get rewards and gratitude from their supervisors. The respondents of the present research do
not feel that PRP has affected the team environment or a narrowed focus on results or their
relationship with line managers. On the contrary, PRP has introduced and encouraged flexible
work practices, fostered innovation and creativity, and delivered a strong message about
organizational performance expectations. At the same time, the respondents have played down
the negative effects of PRP like instigating jealousy, mistrust, management control, or job
insecurity. Instead, they feel that PRP has improved the work culture, aided retention and
brought in new talent. The satisfaction of a job varies from person to person based on their
attitude and behavior towards their work. It was affected by social and cultural values,
management style, the involvement of labors, work position and empowerment (Bremer,
2015).
The fourth Hypothesis indicated that there exists a significant relationship between
employee’s positive attitude and organization development. Brown and Zamora (2014)
describe Performance Management as a process of creating employees’ attitudes leading
towards organizational performance. Burton (2012) puts performance management as the
achievement of the personal, team, group, and organizational goals based on excellent ties of
mutual interest of all the concerned parties. “Performance management is also about achieving
the agreed-upon objectives, which not only include organizational goals but also the personal
goals with all the efficient inputs for the better management and utilization of available
resources”.
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Chen (2015) say that performance management as a strategic approach that is perfectly
aligned with the organizational objectives and encompasses not only the development of
organization, department, group and teams but also of the individual employees. During this
research work, the employees of banks revealed that most of them went through initial feelings
of fear and misconception about the scheme, believing that it may introduce an element of
aggressive competition in the organization. Some also confess to not trusting the management’s
commitment to see through its implementation. Moreover, all responses about the contribution
of PRP as a motivational reason have been extremely positive. A cautionary note has of course
been struck by respondents who feel that PRP may introduce an element of greediness if
sufficient care is not taken.
The fifth hypothesis indicated that employee demeanour and Organization
Development are significantly related. Performance management is not a short-term focused
process; it has an inherent quality of being long term focused. In other words, we can say,
performance management is a strategic process as it aligns the performance of employees with
the strategic objectives of the organization by directing their demeanour and efforts in the
required direction. Performance management aligns the performance of the employees with the
strategic objective of the organization. In doing so, it integrates the efforts of individuals to the
group, group to the department, department to business, and business to a corporation. In this
way, it integrated itself vertically with the concerned (Chenail, 2012).
Concerns were expressed about the continuing financial commitment of the
management to PRP and whether the process would stay fair and impartial or be tarnished by
nepotism and self-interest. Employees feel that the monetary rewards were taken for granted
by staff who may feel that they have a right to be rewarded. With hardening banking sector
conditions and the entry of newer, more powerful competitors, earning these rewards may
become even more difficult.
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5.2 Hypotheses Validation
The nature of the responses received in the short questions as well as the detailed
answers received from the interviewees is discursive and analytical in nature. The responses of
the Regional/Area Managers, in particular, are informative because they examine the issues
involved in PRP from different angles and they are actively involved in the operation of PRP.
The managers are distinctively placed because they bridge between both operations dealing
with staff and top management. They are party to the opinions of both sides and are able to
project an unbiased view. All interviewees are highly experienced and educated and were able
to evaluate the scheme with a view to the future directions it may take.
It was evident that the range of responses across all the questionnaire recipients
indicated a uniformity of opinion regarding the issues raised in the hypotheses. A visible
majority of respondents have extremely positive attitudes towards PRP – its principles and
methods of implementation. A strong majority of respondents also hold PRP as a motivating
feature for performance improvement, categorically so. In fact, the opinions expressed in
favour of this were overwhelmingly strong. The sample size was a good percentage
representation of the entire population. Due to the overwhelming uniformity of response and
the representative strength of the sample, it can be concluded that the responses to the survey
can be generalized to the entire population, thus proving the validity of the hypotheses. Even
if the rest of the sample is surveyed, it is apparent that there is not be much change in the survey
response percentage. Therefore it can be safely concluded that the hypotheses assumed for the
research is valid.
5.3 Limitations and Future Research Directions
It has been acknowledged that certain limitations are prevalent in the study. The survey
has concentrated on the selected cities because of geographical and time constraints in reaching
other staff. However, since there is no difference in the implementation of the scheme among
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staff, the findings of the responses were generalized to the rest of the population and the
hypotheses were validated. Further research can however be attempted on these staff to find
out if their opinions correspond to the results of this study. Attempts can also be made to
research different aspects of PRP implementation in ABL and Bank Al-Falah like performance
matrices and assessment procedures. Studies of the opinions of other employees who have
recently been brought under PRP can also be undertaken since this would be a new dimension
for the banks.
5.4 Conclusions
A significant majority of the respondents are very contented with the current execution
of PRP systems for their branches staff and is having very positive attitudes towards the
principles and processes of the system. They consider the principles behind the implementation
as a just and fair process of rewarding their professional efforts. They are also positive towards
the implementation of PRP within the organization like performance assessments, appraisals
and whether the assessments and pursuant rewards match their own expectations. A strong
majority of respondents also hold PRP as the major contributing element towards their
performance improvement. The PRP system has made their jobs one of the most sought after
and has aided retention and recruitment of new talent into the organization. PRP has initiated
the ability of staff to work in the marketing department under difficult and challenging
conditions and the accruing rewards from it have motivated them to maintain their high
standards of performance.
A good number of respondents also have acknowledged the positive contribution of
PRP towards other professional factors and work practices at both banks. PRP is credited with
encouraging innovative work practices and a healthy team environment; there seems to be no
strong evidence of employee opinions on the supposedly negative aspects of PRP. The
satisfaction factor extends to the current scheme of implementation and its continuation. Many
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employees have concerns that the scheme may not be continued in the long run and may lose
managerial and financial commitment. They also fear divisive factors entering the
administrative process of the PRP scheme. Some cautionary thinking has been introduced
against self-satisfaction, greed, isolation, divisiveness and instability in the benefits of the
scheme. A gradual process of extending the PRP scheme to other employees can also be
explored. Although nothing can be taken away from the efforts and success of the services staff
in Branches, the contribution of the other employees cannot be undermined, particularly in
head office staff, I.T staff etc. This would acknowledge their efforts as well as avoid generating
inter-departmental resentment. Overall, this research study covers the relationship between
performance-related pay and organization development and job satisfaction level of two (02)
selected banks. During this research work, the employees were selected randomly for data
purposes. For data analysis procedure, the SPSS (Scientific Package for Social Sciences) was
used as well as different statistical techniques i.e Reliability, factor analysis, correlation and
regression were applied. So, the researcher concluded that selected 2 banks pay more attention
to other types of achievement recognition schemes are not overly dependent on performance
related pay. The selected 2 banks of district Peshawar are mostly considered other types of
payment schemes such as bonuses, competence-pay, skill-based pay, profit sharing, etc. The
range of responses from all the sample members indicates a broad agreeability to both the
principles of PRP and its implementation in PRP. Most also seem to agree that PRP has been
a motivating factor for performance management and organization development.
5.5 Methodological Contribution / Empirical Implication
The) first) empirical) contribution) of) current) research) work) is) that) this) study) mainly) analysed)
the) conceptual) relationship) amongst) independent) variables) (performance-related) pay,) degree) of)
motivation,) job) satisfaction,) positive) attitude) and) employee) demeanour) and dependent variable
(organization development), most of these factors are investigated first time in this research, as
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they has never been discussed in past studies. The second methodological contribution of this
study is that it introduced some new factors related to the impact of performance related pay in
banking sector of Pakistan. The third empirical contribution of the current research work is that
this study develops a survey instrument questionnaire that helps to collect data to investigate
and measure) the) hypothesized) phenomena.) In) this) research) work) data) was) collected) through)
primary) source) i-e) personal) interviews) from) the) respondents) and) questionnaire.) Every) data)
collection) technique) has) its) own) merits) and) demerits,) the) selection) of) the) data) collection) technique)
depends) on) the) variables) involved,) therefore) the) technique) must) fulfil the purpose of the research.
The fourth empirical contribution of this research work is that the researcher used Likert Scale
of 5-points for questionnaire. Questions of the questionnaire were mainly divided between two
sections, the first section was related to organizational justice while the second section was
about job satisfaction. For job satisfaction, Minnesota Job Satisfaction questionnaire was used.
So, in future researcher scholars will take benefit from this method of data collection (interview
schedule and questionnaire) as it is validated through measuring reliability and validity.
5.6 Recommendations
Based on the conclusions attained at and some of the responses provided by the
interviewees, some recommendations can be arrived as
● The banks should continue performance appraisal schemes along with the growth objectives of
the banks and individual career aspirations of staff.
● The organisations should also continue with the managerial and financial commitment being
offered to the PRP schemes. Some employees have expressed their apprehension that the
company may withdraw the financial support for PRP and the management should take up
measures to strengthen employee confidence by reiterating its support for PRP.
● A formal mentoring system can be introduced within the banks to coach the new, younger
recruits with the working culture, rather than the informal system currently in position. This
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prevents the younger recruits from taking the reward systems for granted, motivate them and
creating some recreation opportunities instead to work harder.
● Banks should particularly emphasize PRP systems for call centre and customer service staff
because the banking sector has in recent times come under severe pressure for the quality of
customer service. In many cases its customer response services have not kept pace with the
other efforts, leading to several complaints.
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