CHAPTER ONE

INTRODUCTION

1.1 INTRODUCTION

Sustainability is about building a society in which a proper balance is created between

economic, social and ecological aims. For businesses, this involves sustaining and expanding

economic growth, shareholder value, prestige, corporate reputation, customer relationships,

and the quality of products and services. The concept of sustainability is centers on a balance

of society, economy and environment for current and future health.  Responsible resource

management in all three areas ensures that future generations will have the resources they

need to survive and thrive.

Adopting a culture of sustainability throughout all aspects of academics, research and

operations is the ultimate goal for a campus concerned with the impact it has on the

community and the future.  A sustainable campus promotes socially just and vibrant

communities, is economically responsible and conserves finite resources.

Sustainability is based on a simple principle which is everything that we need for our survival

and well being depends, either directly or indirectly on our natural environment. The

principles of sustainability help businesses to reduce unnecessary risks, avoid waste

generation, increase material and energy efficiency, innovate new, environmentally friendly

products and services and obtain operating permits from local communities.

Sustainability creates and maintains the conditions under which humans and nature can exist

in productive harmony, that permit fulfilling the social, economic and other requirements of

present and future generations. Sustainability is important to making sure that we have and

will continue to have,  the water, materials, and resources to protect human health and our

environment.

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1.2 RESEARCH BACKGROUND

Sustainability creates and maintains the conditions under which humans and nature can exist

in productive harmony, that permit fulfilling the social, economic and other requirements of

present and future generations. Sustainability is important to making sure that we have and

will continue to have,  the water, materials, and resources to protect human health and our

environment.

Many organizations provide a significant amount of rewards through incentive programs for

employees such as bonuses, profit sharing or stock-based incentives. Rewards can be a

reinforcement to continuously motivate and increase commitment from workers to be

environmentally responsible. In general, incentive compensation is used to improve attraction

and retention outcomes or to help improve quality, customer service, or productivity through

better performance and greater engagement.

Motivating employees for greater participation in environmental improvement efforts may

also require employment of teams. Well-managed employee engagement initiatives can help

develop awareness and understanding of the role that business has to play in

promoting environmental and social sustainability. They can also enhance motivation

and performance of staff in delivering on sustainability targets.

Engaging employees in sustainability galvanizes them. It gives them a sense of belonging,

drive, passion and purpose. It unleashes their potential to make a difference. It inspires them

to do something more that they can associate themselves with and feel good about. If done

well, it will even resonate into their personal lives and impact their decisions so that they

make better choices that serve them, their families, communities and the environment.

Therefore, the focus of this paper is to analyse the sustainability of employee performance

among COB staff in UUM Sintok, Kedah. This paper presents the background of the study,

issue and objectives of the paper, methodology of the study, review of the relevant

literatures, discussion on the results and the conclusion.

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1.3 PROBLEM STATEMENT

Performances can be separated in organisational and employee performance. Employee

performance is also known as job performance. However, it seems that job performance is

mostly subjectively measured in organisations and it will appear that there are few alternative

options. Motivation and job satisfaction are therefore regarded as key determinants of

organisational success, both of which are influenced by aspects of corporate culture. A

thorough understanding of the nature and significant sources of employee satisfaction and

motivation, insofar as these concepts are related to corporate culture, will enable employers to

effect the required positive strategic changes, such as adapt their strategic human resource and

organisational development planning and implementation towards optimal employee loyalty

and retention.

All employees are expected to perform their jobs in an efficient and effective manner.

However, there may be occasions when supervisors must deal with workplace problems.

These problems may be disciplined-based, performance-based or both. In either situation, the

supervisor should communicate directly and immediately with the employee when problems

or deficiencies first arise. Any delays in making an employee aware of unacceptable conduct

or behavior and deficiencies in work performance may appear to sanction such behavior. A

simple definition of unsatisfactory job performance is a gap between the employee's actual

performance and the level of performance required by the organisation.

 

There are three basic types of poor performance which is unsatisfactory work content in term

of qualtity or quality, breaches of work practices, procedures and rules such as breaching

occupational health and safety requirements, excessive absenteeism, theft, harassment of other

employees and employees' personal problems usually 'off-the-job' issues that affect their

performance at work.

Conflict with a supervisor or other coworkers may result in a decline in performance. Conflict

may be the result of such things as divergent work styles, disagreement about how work

should be performed, or unwillingness to function as part of a team. Work behaviors which

result in performance problems will lead to inappropriate behaviors which is often referred to

as "poor attitude" such a negativism, lack of cooperation, hostility, failure or refusal to follow

3

instructions, unwillingness to take responsibility ("passing the buck"), resistance to policy and

procedure.

The research has been done among the COB staff in UUM Sintok, Kedah. This is because

researcher found that less exposure about sustainability of employee performance. Our aim

respondents are among COB staff because they have larger purchasing power on employee

performance compare to students. The level of ages and maturity of COB staff can influenced

the result of the research to be more reliable.

The issue of why we choose the COB staff because the information or indictment of the HEA

that COB staff performance is not in satisfactory level of performance. The effect of poor

work performance among COB staff can cause negative effects to the organization and

students. The negative effect to the organisation is the organisation management is not

systematic or in unmanageable conditions to manage office or related matters about university

itself. Negative effect for student is workers may release their anger to students when students

deal with them.

1.4 RESEARCH QUESTIONS

These are the main research questions:

1) How the sustainability of rewards can affect employee performance?

2) How the sustainability of motivation can affect employee performance?

1.5 RESEARCH OBJECTIVES

The general objective of a study states what we as researcher aspect to achieve by the study in

general terms. It is possible and advisable to break down a general objective into smaller,

logically connected parts. These are normally referred to a specific objective. Specific

objectives should systematically address the various research questions. It should specify

what we will do in our study, where and for what purpose.

The objectives of our research are:

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1) To determine the sustainability of employee performance towards rewards.

2) To determine the sustainability of employee performance towards motivation.

These objectives will achieve our research on level towards sustainability of employee

performance among COB staff in UUM Sintok, Kedah.

1.6 SCOPE OF STUDY

This scope of the study is to examine the sustainability of employee performance towards

rewards and motivation among COB staff in UUM Sintok, Kedah. Thus, the scope of

respondents will be among COB staff in this UUM. Part of that the researcher will precise the

total sample of respondents.

The questionnaire is basically asked for the sustainability of employee performance towards

rewards and motivation. The level of sustainability employee performance among COB staff

in UUM are based on the sustainability of employee performance towards rewards and the

sustainability of employee performance towards motivation.

1.7 SIGNIFICANT OF STUDY

This research is carried out to identify the sustainability of employee performance by relating

rewards and motivation among COB staff in UUM Sintok, Kedah in order to get the level of

sustainability. Furthermore, this research can trigger the employee performance among COB

staff in UUM.

Many companies have initiated a variety of sustainable development initiatives to address the

demands and expectations of society. Although most analysts argue that these initiatives

contribute to making businesses more profitable, there are many managers who are not yet

convinced of the validity of this argument. The reason is that most sustainable development

initiatives have been developed in isolation of business activity. Oneway to strengthen the

link between the two is to measure the extent to which a company’s performance increases as

a result of implementing sustainable development initiatives by relating rewards and

motivation of employee performance.

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A well-designed reward system can be helpful in promoting employees to perform sound

environmental practices. Work rewards refer to the intrinsic and extrinsic benefits that

workers receive from their jobs. Rewards can be a reinforcement to continuously motivate

and increase commitment from workers to be sustainability towards employee performance.

A variety of management measures need to be taken and supported by top management, not

only the establishment of management systems, but also the introduction of incentives and

training on sustainability issues that drive performance on non-financial issues.

1.8 LIMITATION OF STUDY

Every research, no matter how well it is conducted, has some limitations.

This is why it does not seem reasonable to use the words "proved" and "disprove" with

respect to research findings. It is always possible that future research may cast doubt on the

validity of any hypothesis or the conclusions from a study.

Case studies may be viewed as having the most limitations. The researcher cannot make

causal conclusions from case studies. This is true because we cannot rule out alternative

explanations. It is always unclear about the generality of the findings of a case study.

The size of sample is small. The research would have been more reliable if a greater size of

sample will be used. Limitation of study are focused on COB staff in UUM, Sintok. .

Furthermore, the place that researcher choose is near. Thus, research can be conduct easily.

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CHAPTER 2

LITERATURE REVIEW

2.1 INTRODUCTION

A literature review is a documentation that is comprehensive for

references that have or unpublished that consisting of secondary

resources in fields which becoming interest to researcher ( Sekaran 2003 )

. Study on earlier works that about anything problem studied very

important in conducting research. Understanding on theory from works

about can help researcher produce assessment that is more methodical

and meaningful in research carried out.

A literature review is a multi-stage process that involves scanning the

information, making notes of what have been read, synthesizing and

structuring the information, writing a critical review of literature and

building bibliography ( Rowley and Slack, 2004 ). This chapter will include

the perspectives about to study the sustainability of employee

performance towards rewards and motivation among School Of Business

staft in University Utara Malaysia, Sintok, Kedah.

This study carried out for research how in terms of employee achievement

in manage organization. Sustainability employee in conducting daily work

play an important role in manage organization efficiently and effective.

Continuous learning process help increase capacity actively working also

motivational that highly giving chance for self appreciation that is best.

Study carried out based on to appraisal employee performances towards

rewards and motivation among School Of Business Staft in University

Utara Malaysia, Sintok, Kedah. Reward system can help boost motivation

among employee with offer like pay rise, preferment, bonus and so on. All

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the research and issues that have been mentioned previously will bev

state in the literature review.

2.2 CONCEPT AND STRATEGY

2.2.1SUSTAINBILITY CONCEPT

Term ‘sustainability’ or's Development is sustainable' ( sustainable

development ) often talk about since 1980an last decade and early

1990an decade. There are all sorts of definition has been stated to define

term's Development is sustainable' this, but definition that may be

celebrated throughout the world is definition suggested by Dr Gro Harlem

Brundtland. He is first woman which become Norway Prime Minister , that

has been designated as Secretary-General for World Commission on

Environment and Development in year 1983 ( WHO, 2006 ).

Report Brundtland title about ‘Our Common Future’, that was produced in

tahun1987, define sustainable development as “ development that meets

the needs of the present without compromising the ability of future

generations to meet their own needs”, that could be translated as "

development which occupy generation need now without prejudice

opportunity generations will come from meet the needs of those”. The

ability of an organization to sustain the delivery of quality products and

services is essential to its long-term success.

We have observed three major deterrents to sustaining high performance.

Firstly, often the senior leadership of an organization has an inaccurate

understanding of the marketplace in which the organization must

compete. When this is the case , it almost inevitably leads to vision,

mission and strategy that are inappropriate. Secondly , this can be true for

leadership or employee behaviors. For example, leaders often succeed by

exercising unilateral control of decision making. Such behavior is typically

at variance with the behaviors required to create sustainable high

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performance, which must focus on empowerment, responsiveness, and

accountability at the lowest levels possible. Lastly, organization systems

and process often fail to support the organization vision and strategy. As a

result, organizations focus on, and measure, the wrong things. For

example, the performance management system may rely on general

measures that communicate little information, and thus it may not

recognize or hold people accountable for the specific behaviors required to

respond to customer needs.

Such studies have enabled us to identity and understand the general

requirements for sustaining high performance and provide insight into how

to do it. The keys to creating sustainable high performance. This concept

is not theoretical, rather it grew out of attempts to help clients develop

and sustain high performance. We found the same set of variables

emerged time and again as the drivers of sustainable performance.

Success is determined by bringing about the alignment of these core

elements as illustrated in the model shown in figure 1.

The model shows that the organization’s ability to provide quality products

and services and create value is determined by bringing about the

alignment of five key factors. Step 1 is Senior leader’s perception of the

marketplace. Organizations produce sustainable performance as long as

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senior leaders understand and effectively respond to their market.

Successful organizations are able to anticipate and adapt to these

changes. Step 2 is a shared vision, mission, values, and strategies which

are aligned with the marketplace. To build a high performing organization

requires the organization to create structures and develop processes

aligned with the requirements of the market the organization is striving to

capture. The organization’s vision, mission, values and strategies are the

foundations on which these structures and processes are built.

Other than, step 3 is leadership practices that are congruent with the

vision, mission, values and strategies. The term ‘leadership practice’

describes what managers from the very top to the very bottomof the

organization. Our studies of sustainable performance have consistently

shown that in high performing cultures, effective managers through their

behaviors as ensure clear expectations, promote belonging, foster

employee involvement in decision making and problem solving. However ,

promote a consistent focus on meeting customer needs and requirements

also encourage reward learning and skill development. In a recent study of

the ‘drivers’ of profit growth the behaviour of immediate supervisors was

the most powerful determinant of employee engagement, productivity and

customer satisfaction and loyalty ( Buckingham and Coffman 1999). Step 4

is enabling infrastructures which support and reinforce the vision, mission,

values and strategies. The systems which select, develop, recognize,

reward, terminate and protect people as well as the technical and

operational sub-systems which enable employees to produce the products

and services customers desire. Some examples of infrastructures are goal

– setting system, measurement systems, the performance management

system, the leadership evaluation system also reward and recognition

system.

Lastly, step 5 is employee behaviors that meet customer needs

sustainable high performance is possible only when you have the right

people in the right roles with the right manager. To ensure that you have

the right people in the right jobs you must first identity the strengths of

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the individual employee. Second , you must position the individual in a

role that capitalizes on these strengths and third you must engage the

employee such that they are actively using their talents. When

organizations do this successfully employees exhibit as competence , cost

– effectiveness, commitment, congruence with the organization’s core

values and desire to serve customers. These are the behaviors required to

maintain sustainable performance because they enable employees to

respond to the ever- changing world of customer needs and expectations.

2.3 LITERATURE OF RELATED STUDIES

2.3.1DEFINITIONS OF REWARDS

Rewards means recognize with gratitude be grateful for acknowledge,

recognise, recognize - express obligation, thanks, or gratitude for; "We

must acknowledge the kindness she showed towards us" for simple

example. Appreciation much needed in appreciate an action done by

employee in conducting duties especially substantially help conduct duties

dedicatedly. Performance appraisals can be a critical part of a company’s

success because they allow the company to retain and reward high

performers and offer guidance and improvement to poor performers.

Obviously , the greater an employee’s level of involvement in the decision-

making process, the greater the sense of ownership for the outcomes of

such decisions, which, in turn, helps to foster greater levels of ownership

behaviors ( Dell’ Agnese, 2001; Mintzberg, 1994a,b,c, 2001 a,b; Pfeffer,

2001a,b; Piggott, 1977 ).

Eskew and Heneman ( 1996 ) conducted a survey among senior

compensation professionals from 72 orgnizations in an attempt to examine

the effectiveness of merit pay in achieving organizational objectives. In a

contrasting view, Luthans and Stajkovic ( 1999) proposed that pay for

performance systems are ineffective because the “rewards” or pay need

to be replaced by reinforcers. The suggest that reinforcement theory and

behavioral management should be considered to help solve this

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controversy. Brudney and Condrey (1993) sought to determine which

factors differentiated motivated versus non- motivated managers included

in the performance management and recognition system ( PMRS), a merit

based compensation system.

2.3.2EMPLOYEE PERCEPTIONS OF THE REWARDS ASSOCIATED

WITH SIX SIGMA.

Six sigma is an approach to organizational change that incorporates

elements of total quality management, business process reengineering,

and employee involvement ( El ) ( Quinn, 2003 ). Proponents of six

sigma ( Larson, 2003 ) argue that it involves a transformational change in

an organization’s culture, structure and processes which in turn enhances

its sustainability.

Shani and Docherty (2003), these mechanisms include formalized

strategies, policies and guidelines, methods, tools and routines. Allocation

of resources, authority and responsibility and management reward

systems. On the other hand, employees perceive that the rewards of six

sigma primarily benefit the organization, the program may be perceived

as exploitation and its sustainability would be threatened ( Shani and

Docherty, 2003).

Larson (2003) describes the elements necessary for a successful six sigma

program: vision, skills, resources, action plans and incentives. There are

four categories of rewards most frequently associatedwith change

programs such as six sigma: intrinsic,extrinsic, social and organizational

rewards. Organization rewards are the very reason that most implement

six sigma in the first place and include the bottom line business results of

improved quality, productivity and profits ( Buch and Rivers,2001).

Extrinsic rewards are those that employees receive from their organization

or management as a result of their performance or participation. The third

category used in this study is social rewards, which occur through the

satisfaction of our need for belonging, affiliation and relatedness

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( Alderfer, 1969). While social rewards may be considered as one type of

extrinsic rewards, the emphasis of team based projects in six sigma may

make social rewards a salient and desirable outcome for participants

( Larson 2003). Involvement in a six sigma project team can be a source of

social rewards by providing increased opportunities for employees to

interact with workers on the job and to work together toward shared goals

and outcomes. We, therefore chose to examine social rewards as a

separate category from extrinsic rewards.

Intrinsic rewards are those that an individual receives internally as a result

of their involvement in activities that enhance feelings of self competence,

growth, satisfaction, responsibility and autonomy. Intrinsic rewards most

frequently associated with six sigma and other types of EI programs

include the development and use of new skills and competencies,

increased levels of responsibility, discretion and control over work and the

feelings of satisfaction that accompany these changes ( Allen and Lucero,

1997).

The need for employees to perceive the link between intrinsic rewards and

their participation in six sigma cannot be understated. According to Shani

and Docherty (2003), employees must value the opportunities to acquire

new knowledge and skills, as well as the autonomy to use them.

Otherwise, they may interpret the personal consequences of the program

as nothing more than work intensification. Thus ,the results of the current

study will provide important insight into the meaning employees attach to

all categories of six sigma rewards.

2.3.3 MOTIVATING EMPLOYEES FOR ENVIROMENTAL

IMPROVEMENT

This paper provides an overview of the current management literature

regarding increasing employee motivation for environmental improvement

efforts. Commitment from top management is like a framework for

environmental improvement. Top management decides the environmental

13

policies to establish the level training and communication required it is

almost impossible to motivate employees to take effective steps for

environmental improvement. Environmental Management System ( EMS )

provides a format that allows management the ability to better control the

company’s environmental impacts ( Barnes, 1996). EMS includes

documentation of commitment and policy, planning, implementation,

measurement and evaluation, review and improvement ( Hersey, 1998;

Lin et al., 2001). A formal structured program sets the stage for increased

employee awareness of environmental issues and its significance to the

organization ( Barnes, 1996 ).

Other than, it is important to consider organizational culture because

companies with rigid, top heavy and bureaucratic structures have a more

difficult time implementing changes than a company that has a flexible

and lean organizational structure ( Janson and Gunderson, 1994).

Motivation for environmental improvement efforts may be supported or

undermined by the organizational culture. Management commitment must

include a culture that encourages innovation and risk taking. Values,

norms, attitudes and behaviors that promote environmental improvement

efforts have to be supported ( Ramus, 2001). Employees should be

allowed inputs for enhancement and time for experimentation ( Woods,

1993).

Environmental programs, initiatives and goals of the company should be

communicated frequently so the employees know what is expected to

accomplish the goals. Recent research suggests strongly that employees

do not feel properly informed regarding environmental issues ( Madsen

and Ulhoi, 2001). Researchers have determined quality management

efforts demand extensive on the job training and continual educational

efforts to achieve continual improvement ( Cook and Seith, 1992;

Curkovic, 1998). Other than specific environmental training programs,

additional types of training such as interactive skills, team building,

benchmarking, brainstorming and consensus building will help promote a

14

culture where employees feel enable to participate in environmental

improvement ( Begley, 1996; Woods, 1993).

Authors Leitch et al. (1995, p. 72) described employee empowerment as :

…………….the importance of giving employees both the ability and the

responsibility to take active steps to identify problems in the working

environment that affect quality or customer service and to deal effectively

with them. Motivating employees for greater participantion in

environmental improvement efforts may also require employment of

teams. The use of team based EI programs has become a major trend.

Such programs are particulary popular in manufacturing organizations,

where manufacturing strategies, competitive pressures and advanced

technology requireshop floor employees to make more responsibiltity

( Magjuka and Baldwin, 1991).

2.4 RESEARCH FRAMEWORK

The purpose of this study the sustainability of employee performance

towards rewards and motivation. This study carried out to find out how

performance evaluation on a employee do within handling organization

among School Of Business staff in Universiti Utara Malaysia, Sintok, Kedah.

An independent variable is exactly a variable that stands alone and isn’t

changed by the other variable. This research focused on certain aspect of

performance at rewards. Assessment carried out by making overall

comprehensive study to get decision that is best . Appreciation in handed

to employee that is disciplined and responsible.

A dependent variable is exactly something that depends on other factors.

For examples in this research the dependent variable is motivating

employees for enviromental improvement. The dependent variable can be

measured from the independent variable.

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CHAPTER 3

RESEARCH METHODOLOGY

3.1 DEFINITION

The research methodology refers to a systematic method of collecting data or information to

solve a problem that is studied as increase their knowledge in the field of research. To collect

data and information that will, several methodologies were taken.

There are two forms of the method used in this research, qualitative and quantitative research.

Qualitative research is using data, information, statements, comments, meanings, concepts

and the like for research. Source of data obtained is in the form of books, magazines, journals,

16

papers and so on. Quantitative research is the data was obtained in the form of figures or the

number of telephones collected using methods such as distributing questionnaires. The data

will be analyzed using scientific methods and tabled by using charts and tables.

To collect the data, there are two types of researchers conducted a study to be as follows:

1. Library Research

Library research is a technique used by the researcher to gather data and evidence through the

study of documents and records. This technique is a process of gathering data to conduct

research on the available data and make the reading of the documents relate to the problems

studied. The researcher will gather the data with reference to the documents obtained. After

the reading, research and analysis, the researcher will conclude on questions related to the

research problem.

The researcher visited the library to collect materials related to the topic of this study. The

materials obtained are as scholarly books, journals, magazines, newspapers and others. The

library is visited to obtain for reference data and facts.

2. Field Research

A field used to complement the data libraries acquired and help get new information.

Researcher visited the area of study for observational studies to obtain more information

about an object of research. The study was conducted in Buildings COB, University Utara

Malaysia, Sintok, Kedah. The aim of the researchers are going to study is to research directly

with the target respondents for the study to make the necessary findings and conclusions.

Respondents are among staffs COB. The researcher will distribute questionnaires to a sample

and give a brief description of the purpose of the questionnaire was carried out.

The methods used in the field study are:

i. Interview

This method is used to obtain evidence or oral sensing of the respondents to communicate

face to face. The researcher has selected some COB staff interviewed to obtain data and

information.

ii. Questionnaire

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Method Questionnaires were used to obtain information from many respondents. The

questionnaire is a list of questions about a case to obtain data which is the answers of the

respondents. Questionnaire method will be applied in the study to obtain detailed information

on sustainability performance and significant staffs COB of reward and motivation. The

researcher will distribute the questionnaire forms to respondents among COB staff to get

feedback on aspects of the study. Questionnaires are distributed to 50 respondents of COB

staff.

iii. Data Analysis

The method of data analysis is data and information obtained will be analyzed and described

by the researcher before making a decision. The method of SPSS (Statistical Package for the

Social Sciences) was applied in analyzing the questionnaires were returned. Methods SPSS

will show processed data acquisition.

Regression Analysis

An analysis aimed to determine the effect of a variable to another variable. In regression

analysis, the variables that influence called Independent Variable (independent variables) and

the variables that influenced referred Dependent Variable (dependent variable). The method

of least squares (OLS) will be used to determine the equation. This method is used to

determine the regression equation by minimizing the squared vertical distance between the

actual Y values and Y values to be estimated.

The dependent variables is the sustainability of employee performance (Y)

The independent variables are rewards (X1) and motivation (X2)

iv. Sampling method

The sample is a small group of elements that have been taken from a sampling frame. A

sample allows survey done on the part of the population being studied. Sampling method used

in this research is simple random sampling. The study included 50 respondents of the staffs at

COB. Every element in the population has an equal and independent chance of being selected

as a sample. This is a simple and suitable for the population to be homogeneous or nearly the

same.

18

The issue of why we choose the COB staff because the information or indictment of the HEA

that COB staff performance is not in satisfactory level of performance. The effect of poor

work performance among COB staff can cause negative effects to the organization and

students. The negative effect to the organisation is the organisation management is not

systematic or in unmanageable conditions to manage office or related matters about university

itself. Negative effect for student is workers may release their anger to students when students

deal with them.

3.2 FRAMEWORK

The purpose of this study is to examine the level towards sustainability of

employee performance by relating rewards and motivation among COB staff in UUM Sintok,

Kedah.

SUSTAINABILITY OF EMPLOYEE PERFORMANCE

IV DV

Figure 1.1 : Framework

HYPOTHESIS:

19

REWARDS

MOTIVATION

SUSTAINABILITY

OF EMPLOYEE

PERFORMANCE

H0: The rewards did not influence the sustainability of employee performance.

H1: The rewards did influence the sustainability of employee performance.

H0: The motivation did not influence the sustainability of employee performance .

H2: The motivation did influence the sustainability of employee performance.

3.3 OPERATIONAL DEFINITIONS

3.3.1 SUSTAINABILITY OF EMPLOYEE PERFORMANCE

There are various approaches that have been used to measure, monitor and assess a

company’s progress toward sustainability, including sustainability performance ranking.

Good sustainability performance is heavily influenced by the honest commitment of

management to sustainability and by the adoption of a management incentive scheme. The top

management of a company needs to right signals to promote sustainability and to set how

sustainable principles are followed.

Sustainability can gain a competitive edge by good managing sustainable performance.

Improved overall performance can only be achieved by setting sustainable performance

targets that are consistent with the company’s operating principles and that measure and adapt

performance to these targets over time.

(DV) (IV)

EMPLOYEE PERFORMANCE DEMOGRAPHY

( CONSTRUCT )

SKT APPRAISAL GENDER

The diagram shows that the variables that influence called Independent Variable and the

variables that influenced are refer Dependent Variable. The dependent variables is the

employee performance and the independent variables are demography. Demographics is

20

dependent of employee performance to measure the employee sustainability. Employee

performance can be measured through assessment of SKT conducted for each employee at the

time. Level of performance can be achieved if the evaluation they reach a specified level.

Besides, demographics also affect the measure of performance. We can know the gender of

which could indicate the best employee performance evaluation based on demographic

variables.

Performance appraisal system is a process to assess individual that in hirarki one organization

post. It involving superior assessment on the downline. This approach implemented once in a

year. Written under law Pekeliling Perkhidmatan Bil 4, “Pelaksanaan Sistem Saraan

Malaysia Bagi Anggota Perkhidmatan Awam Persekutuan”. Objective for this performance

appraisal are training and counselling, progress basis of consideration, placement & career

field, promotion, certificate and others.

SKT importance for assisting Officer evaluate work, giving levels of achievement real picture

work performance, SKT provision that orderly enable evaluation of officer's performance

feasible with objective, fair and transparent. Besides, 'Contract performance's that agreed

along with between PYD with assessor officer.

3.3.2 EMPLOYEE PERFORMANCE TOWARDS MOTIVATION

Motivation by definition refers to what activates, directs human behaviour and how this

behaviour is sustained to achieve a particular goal. People are motivated by how much they

want something and how likely they think they are to get it. The suggest that motivation leads

to efforts and the efforts combined with employees ability together with environment factors

which interplay’s resulting to performance.

The concept of employee’s motivation has been a critical factor as what determines the core

competence of every organisation in achieving a competitive position. Employees may put

additional effort with reaching their potential, making jobs more interesting and challenging.

Ensuring the availability of the primary motivational factors is for maintaining productivity

and ensuring the long term survival of the organisation.

DV IV

EMPLOYEE PERFORMANCE MOTIVATION

21

( CONSTRUCT )

SKT APPRAISAL BONUS

The diagram shows that the variables that influence called Independent Variable and the

variables that influenced are Dependent Variable. The dependent variables is the employee

performance and the independent variables are motivation. Motivation is dependent on

employee performance to measure the employee sustainability. Employee motivation can be

improved if the employee is given the credit for the work performed. Motivating employees

can be evaluated based on a valuation carried out and workers get a good evaluation results

are eligible to receive a bonus acknowledgment form. Motivation is given based organization.

Not all organizations provide equal appreciation to employees. For example, if the evaluation

of worker results exceeds 95%, the employee is eligible for a bonus due to yield satisfactory

performance. So, the evaluation based on SKT can identify employees who really deserves a

bonus. Accordingly, employees will continue to be motivated in doing their work as

appreciated the work done by the organization.

3.3.3 EMPLOYEE PERFORMANCES TOWARDS REWARDS

Top management know positive motivation leads to better performance and higher

productivity but may rely on the wrong tools. Microsoft Business states as "using monetary

and other rewards to improve motivation is a simple idea, but doing it fairly and effectively

can be challenging."

Developing a system of incentives to reward employee at all levels who develop and push for

the adoption of sustainability practices. It also refers to the ability to respond flexibly to

change and to engage in dialogue and partnerships with different members of society.

DV IV

EMPLOYEE PERFORMANCE REWARDS

( CONSTRUCT )

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SKT APPRAISAL PROMOTION

The diagram shows that the variables that influence called Independent Variable and the

variables that influenced referred Dependent Variable. The dependent variables is the

employee performance and the independent variables are rewards. Rewards is dependent on

employee performance to measure the employee sustainability. Reward is an important aspect

in influencing job performance of employees. Attractive Rewards will increase employee

motivation and productivity of the organization. Rewards that can be given by the company is

as promotion. They will feel appreciated for their contributions to the organization and are

willing to meet their obligations.

Bibliography

Buch, K. (JOCM 19,3). Employee perceptions of the rewards associated with six sigma. 356-364.

Eccles, R. G. (n.d.). The Impact of a Corporate Culture of Sustainability on. Harvard Business School.

Owen.K, M. G. (n.d.). Vol 11-No 1.2001. page 10 -21, MBC University Press.

Rupp, A. D. (Vol 7 No.1 2003). Knowledge Worker : Exploring the link among performance rating, pay and motivational aspect. Journal of Knowledge Management, 107 - 124.

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