CC BY
89
Dr. Burton A. Aggabao Facutly Member, College of Business Administration University of Fujairah, United Arab Emirates E-mail: [email protected] Shad I. M. Abutaha BBA Graduate, College of Business Administration
University of Fujairah
REWARD MECHANISMS AND EMPLOYEES' PERFORMANCE OF FUJAIRAH INTERNATIONAL AIRPORT, UNITED ARAB EMIRATES
Abstract: This study was conducted to assess the reward mechanisms and employees' performance of FIA. The descriptive research design was utilized. The random sampling method was employed to determine the number of respondents. The researcher's made questionnaires were used as the data gathering instruments. The weighted mean and Pearson correlation coefficient were used as the statistical tools in this study. The researcher found that the FIA's material and non-material reward mechanisms are "average". The material reward mechanisms that are found out to be average are compensation and benefits; while non-material mechanisms are recognition and appreciation. The level of employees' performance is also found as "average". It is disclosed that there is a significant relationship between reward mechanisms and FIA employees' performance. It is concluded that reward mechanisms serves as potential motivating variables to improve employees' performance. The variables of reward mechanisms tested in this study can be used by other organizations to motivate their employees toward improving their productivity. Similar studies can be done to validate the importance ofreward mechanisms variables and their roles toward improving employees' performance.
Keywords: HRM, Reward Mechanisms and Employee's Performance.
I. Introduction Byham and Moyer [2] considered "the valu-
Workplace reward systems are incentive pro- able players will help the organization to maintain grams that encourage employee engagement and their sustain success in terms of achieving organi-productivity by offering bonuses, paid time off or zation's goals and objectives. The most appreciated other awards for a job well done [1]. Scott further as- approach in an industry other than training and serted that "reward systems recognize staff members development is through the use of motivational who excel in areas such as customer service, loyalty, approaches that almost all of the organizations, in and sales ability; the organizations implement work- whatever size or type, used to apply considering the place reward systems to retain employees, increase fact that the motivational approaches can drive the morale and improve overall service and productivity job performance of an employee". within the company; and, make sure that all employ- They also emphasized that motivation is a continuees are providing their best the organization must ous procedure that starts from the employers, and it is provide better incentives for its employees who are a mechanism to inspire employees [2]. When employ-the valuable players and contributors of organiza- ees are inspired, there enthusiasm is high. Enthusi-tion's achievements". asm is contagious. Employers have to start preparing
motivational plan in order to understand what motivates them and their employees. The employers have to strive to align the company's strategic goals with the objectives assigned to the employees. Employees strive to work high, because of reward mechanism. They fUrther stated that motivation "creates an environment encourages employees on a personal level and ask what they would like to see in the company that would motivate them even more. Employers have to keep in their mind that the motivational process is an ongoing process, not a task. Supporting employee's motivation is performed by considering an organizational system like policies and procedures instead of counting on good intentions. The nature of interpersonal relationship in the workplace constantly changes, and includes it in the systems to motivate the employees while supporting the organization's infrastructure. Thus, this study considers the factors of reward mechanism to assess the performance of FIA employees.
1.1 Statement of the Problem
This study assesses Reward Mechanism and Performance of employees of Fujairah International Airport, Fujairah, United Arab Emirates financial year 2015.
Specifically, this study attempts to answer the following questions:
1. What is the extent of Material Rewards Mechanisms that are implemented by the FIA to employees, considering the following:
1.1. Compensation
1.2. Benefits
2. What is the extent of Non-Material Rewards Mechanisms that are implemented by the FIA to employees, considering the following:
2.1. Recognition
2.2. Appreciation
3. What is the level of Employees' Performance?
4. Is there a significant relationship between Reward Mechanisms and Employees' Performance?
1.2 Hypotheses of the Study
HA - There is significant relationship between Reward Mechanisms and Employee's Performance.
1.3 Conceptual Research Framework
Rewards mechanisms is the independent variable of the study and it comprises sub-variables compensations, benefits, recognition, and appreciation. The research framework categorizes reward mechanisms as material and non-material rewards. As illustrated in Figure I, material rewards are focused on compensations and benefits while non-reward material considers recognition and appreciation which have assumed to have significantly associated to the dependent variable which is performance of employees at the Fujairah International Airport (FIA).
Mondy [3] discussed that "compensation is the total of all rewards provided to employees in return for their services, and that the overall purposes ofpro-viding compensation are to attract, retain, and motivate employees, and it includes salary, hourly (wages), commission, and bonus". According to Mondy [3] "salary is agreed-upon and regular compensation for employment that may be paid in any frequency but, in common practice, it is paid on monthly basis". It is said that employees are performing well if they are satisfied with their salaries. Wage, as argued by Mondy, "is a monetary remuneration computed on hourly, daily, weekly, or piece work basis. If the agreed price does not satisfy the employees, the performance is low" [3].
Dave [4] justified that "compensation that is based on volume or some form of performance is known as commission based remuneration. Industries used this type of remuneration to get a minimum standard of production in exchange for compensation. According to Dave "there are two methods to calculate commission; one is based on volume of services and the other is based on sales; and bonus is used to increase performance from the employee; and, other reasons used for bonuses are to increase or maintain retention of certain skills or the pool of skillsets needed in the company" [4].
Benefit is optional provided to employees in addition to their normal wages or salaries. These types of benefits may include protection programs, paid
time off, and services [5]. Protection programs give a motive for employees to perform their work in a good way. Paid time off, also, has a positive influence on the performance of employees. In addition, services as transportation services and flexible schedul-
ing and leave give the employees the comfortability to do their work. Martocchio [5] disclosed that" benefits can contribute to a company's competitive advantage and can undermine the imperatives of strategic compensation".
Independent Variables
Dependent Variables
Reward Mechanism
1. Material rewards:
■ Employees ' Compensations
• Salary
• Hourly (wages)
• Commission
• Bonus
■ Employees ' Benefits
• Protection group
• Paid time off
• Services
2. Non-material rewards:
■ Recognition
• Anniversary
• Employees of moth
• Most innovative
■ Appreciation
• Recognition Gifts
• Cards or Certificates
• Trophies
Performance of FIA Employees
(Feedback)
Figure 1. Conceptual Research Paradigm on Reward Mechanism and Performance of Employees The variables of non-material reward are recogni- been with the company for a year or 25 years, em-tion and appreciation. Recognition consists of an- ployer can present them with employee recognitions niversary, employees of moth, and most innovative. awards for their anniversaries. She further discussed Brookins [6] stated, "that whether employees have that employee of the month awards are one of the
most typical types of recognition awards companies give their employees. For most innovative employees, contribute ideas and feedbacks to companies that can help them thrive in an ever-changing world".
Brookins [6] also asserted, "appreciation awards are delivered at the time of achievement". MayankJ [7] stressed that "these acknowledgments should be relatively small and can be given to individuals, teams, or work groups. It consists of recognition gifts, cards or certificates, and trophies. Recognition gifts awards given in a gift form, often given with a certificate stating the reason for the recognition and are most commonly given for outstanding work in a career". MayankJ [7] further explained "that cards or certificates are given as minor achievement awards for specific tasks. These are expected awards that employees or other groups will get for achieving specific goals, and, trophy is recognition awards of achieving a specific placement. The relationship between dependent and independent variables is determined based on two major variables. It is assumed that reward mechanisms affect performance of employees.
The Oak Ridge Associated Universities [8] disclosed that "performance measurement is composed of a number and a unit of measure; the number gives us a magnitude (how much) and the unit gives the number a meaning (what); single-dimensional units of measure usually represent very basic and fundamental measures of some process or product; and, it revealed that most performance measures can be grouped into one ofthe six general categories: "First, a process characteristic indicates the degree to which the process output (work product) conforms to requirements".
In another aspect, a process characteristic indicates the degree to which the process produces the required output at minimum resource cost. Next category is the degree to which a product or service meets customer requirements and expectations. Another category measures whether a unit of work was done correctly and on time. The value added by the process divided by the value of the labor and capital
consumed. Last one is measuring the overall health of the organization and the working environment of its employees".
2. Literature Review
Every company requires tangible reward system for employees which include: compensation, benefits, recognition and appreciation. Martocchio [5] stresses that "compensation represents both the intrinsic and extrinsic rewards employees receive for performing their jobs, and both intrinsic and extrinsic compensation describe a company's total compensation system". Martocchio [5] justifies that "incentive pay is defined as compensation, which fluctuates according to employees' attainment of some standard; and organizational development professionals promote intrinsic compensation through effective job design. Compensation professionals are responsible for extrinsic compensation. The compensation professionals promote effective compensation system by meeting three important goals: internal consistency, market competitiveness, and recognition of individual contributions".
Moreover, Martocchio [5] states that:
"traditional bases for pay, incentive pay, and person-focused pay; and for decades, companies have awarred raises to base pay according to employees' seniority or job performance; companies tended to pay employees according to performance, but the system became one of entitlement; incentive pay or variable pay rewards employees for partially or completely attaining a predetermined work objective; incentive pay or variable pay is define as compensation, other than base wages or salaries, which fluctuates according to employees' attainment of some standard, such as a pre-established formula, individual or group goals, or company earnings. Effective incentive pay systems are based on three assumptions. Fist assumption is that Individual employees and work teams differ in how much they contribute to the company, both in what they do as well as in how well they do it. Second assump-
tion, the company's overall performance depends to a large degree on the performance of individuals and groups within the company. Last assumption is that to attract, retain, and motivate high performers and to be fair to all employees, a company needs to reward employees on the basis of their relative performance" [5].
Martocchio [5] also reveals that "compensation administration is one of management's most difficult and challenging human resource functions because it contains many elements and has a far-reaching impact on the organization's strategic goals; the overall purposes of providing compensation are to attract, retain, and motivate employees; however, compensation programs for salespeople rely on incentive' and sales compensation programs can help business meet their objectives by aligning the financial self-interest of sale-professionals with company's marketing objectives".
In the same context, [5] added that there are several practices under the discretionary employee benefits. He revealed the practices by which the organization can recognize as "protection, paid time off, and services to enhance work and life experience, and discretionary benefits, like compensation, can contribute to a company's competitive advantage for recruiting the best qualified candidates; it can, also, undermine the imperatives of strategic compensation. Mondy [3] also mentions that "organizations recognize that they have a responsibility to their employees to provide insurance and other programs for their health, safety, security, and general welfare; and that benefits generally cost the firm money, but employees usually receive them indirectly.
Designing incentive plans is pertinent to motivational theories such as the theories of Abraham Maslow, Fredrick Herzberg, Edward Deci, and B. F. Sinner. Dessler [9] cites Maslow's works which the most popular observation on what motivates people. Dessler menitons that "people have a hierarchy of five types of needs: psychological (food, water, warmth), security (a secure income, know-
ing one has a job), social (Friends and camaraderie), self-esteem (respect), and self-actualization (becoming the person you believe you can become); while, Herzberg theory "is the best way to motivate someone to organize the job so that doing it provides the feedback and challenge that helps satisfy the person's "higher-level" needs for things like accomplishment and recognition. These needs are relatively insatiable, so recognition and challenging work provide a sort of built-in motivation generator. Satisfying "lower level" needs for things like better pay and working conditions just keep the person from becoming dissatisfied".
Dessler [9] further reveals the work of Psychologist Deci's which highlights another potential downside to relying too heavily on extrinsic rewards: they may backfire. The work of Deci concluded "that extrinsic reward could at times actually detract from the person's intrinsic motivation". The Behavior Modification/Reinforcement and B. F. Skinner which uses incentives also assumes that consequences affect behavior; it provides the foundation for much ofwhat we know about this; and managers apply Skinner's principles by using behavior modification— changing behavior through rewards or punishments that are contingent on performance".
Morever, Dessler [9] cites that "nonfinancial and recognition-based awards such as recognition programs are one of several types of nonfinancial incentives; the term recognition program usually refers to formal programs, such as employee-of-the month program; employees are primary driving forces behind building a successful business". Brookins [6]) adds that recognition helps create, market, sell and distribute products, and provide customer service; it is important to show to employees appreciation to their contributions; and employee recognition programs, such as developing employee recognition awards, can keep employees motivated and invested in the business".
The Best [10] supports that "the firm cannot diminish the importance of recognition and appre-
ciation as integral compoents of a winning strategic reward system; the two elements rarely receive the attention they deserve from business owners, which is amazing because they are the low-cost/high-return ingredients; employees like to know whether they're doing good, bad or average, so it's important that you tell them". In addition, a winning system should recognize and reward two types of employee's activity-performance and behavior. The performance is the easiest to address and it directly links between the initial goals the organization set for the employees and the outcomes that result. Reynolds [11] discusses that "reward program can promote optimal fulfillment in the business if it is designed so the employees' successful job performance is in line with the business objectives. Starting by stating a chief goal; then list the specific steps required to achieve it".
MayankJ [7] mentions that appreciation Awards (also known as "on-the-spot" or "spot" awards) are given at the time of achievement; these acknowledgments should be relatively small and can be given to individuals, teams, or work groups; they may come in the form of thank-you notes, candy, flowers, lunches, group events or outings, movie tickets, etc.". MayankJ [7] stresses that "with all awards, they should be tied to a specific message of recognition for a concrete or measurable goal, achievement, or contribution; and these awards should not exceed a value of $100 per individual per year|.
The company's reward system as all must follow a fair and reasonable way to compensate or to reward the employees. Equity theory is motivation theory that people assess their performance and attitudes by comparing both their contribution to work and the benefits they derive from it to the contributions and benefits of comparison others whom they select the theory that individuals must assess and know their degree of performance and the correctness of their attitude in a situation. Lacking objective measures of performance or correct attitudes, they compare their performance and attitudes to those of others. Equity theory further states that a person is motivated in
proportion to the perceived fairness of the rewards received amount of effort as compared with what others receive [7].
Campbell, McHenry, and Wise [12] argue that "job performance consists of the observable behaviors that people do in their jobs that are relevant to the goals of the organization. While Hunter and Hunter [13] state that "job performance is of interest to organizations because of the importance of high productivity in the workplace". And, Murphy [14] defines performance is focused on behaviors rather than outcomes because a focus on outcomes could lead employees to find the easiest way to achieve the desired results, which is likely to be detrimental to the organization because other important behaviors will not be performed.
Martocchio [5] argues that accurate performance appraisals are integral to effective pay program; pay program to succeed, employees must know that their efforts toward meeting production quotas or quality standards will lead to pay raises. Martocchio, also, states that "job requirements must be realistic, and employees must be prepared to meet job goals with respect to their skills and abilities; moreover, employees must perceive a strong relationship attaining performance and standards and receiving pay increases" [5].
The Oak Ridge Associated Universities [8] claims that "performance measure is composed of a number and a unit of measure; the number gives us a magnitude (how much) and the unit gives the number a meaning (what); performance measures are always tied to a goal or an objective (the target); performance measures can be represented by single dimensional units like hours, meters, nanoseconds, dollars, number of reports, number of errors, number of CPR-certified employees, length of time to design hardware, etc.; they can show the variation in a process or deviation from design specifications; and single-dimensional units of measure usually represent very basic and fundamental measures of some process or product" [8].
Similarly, Oak Ridge Associated Universities [8] supports that "performance measures can be grouped into one of the following six general categories. Organizations may develop their own categories as appropriate depending on the organization's mission:
"First measure is effectiveness. It is a process characteristic indicating the degree to which the process output (work product) conforms to requirements, (Are we doing the right things?). Efficiency is second measure. It is a process characteristic indicating the degree to which the process produces the required output at minimum resource cost, (Are we doing things right?). Next measure is quality. It is the degree to which a product or service meets customer requirements and expectations. Fourth measure is timeliness which measures whether a unit of work was done correctly and on time. Criteria must be established to define what constitutes timeliness for a given unit of work. The criterion is usually based on customer requirements. Productivity is an important measure which considered the value added by the process divided by the value of the labor and capital consumed. Last measure is measuring the overall health of the organization and the working environment of its employees. This measure is safety" [8].
As stated by Stajkovic and Luthans [15] "rewards can be classified as tangible or intangible. In the first case, they are defined as being awards granted to employees on the basis of tasks performed, which meet or exceed the expectations initially established. In the second case, they are defined as praise granted in public by virtue of achievements widely approved in the context of organizational culture'. Austin (1996) argues that "it is worth stressing that reward systems are designed with the objective of increasing organizational productivity, and rewarding those who achieve an expected level of performance" [15].
Furthermore, Zanelli [16] concludes "reward system of an organization has repercussions on motivating work when workers are rewarded in a
tangible way (cash bonuses, salary increases) or intangible (praise or public recognition) because they have demonstrated behaviors considered desirable for the organization: the main challenge of an effective reward system is related to defining criteria on how the reward should be distributed among people; and the use of standards of differentiation that people consider are fair and the consistency of these standards with the context of the organization are essential for there to be commitment to the company and the work to be performed" [16].
3. Methodology
3.1 Research Design
The quantitative research design was used in this study particularly descriptive research design. The Association for Educational Communications and Technology [17] defines descriptive research refers to the type of research question, design, and data analysis that is applied to a given topic. In this study, the descriptive research design is used to determine the reward mechanism and employees' performance of Fujairah International Airport.
3.2 Population Frame and Sampling Procedures
The population of this study considers the FIA's
employees. To determine the sample size of the respondents, the random sampling technique was used. There were 30 sample-respondents drawn from eight (8) departments, namely: Human Resource Department, Finance, Ground Services, Strategy and Business Development, Flight Operation, Technical Services, Safety and Quality, and Chief Fire department. These sample-respondents are composed of managers, department engineers and employees.
3.3 Data Gathering Instrument
The researcher's made questionnaire was used in this study. The questionnaire has two parts: Part1 extent of reward mechanisms, and Part II level of performance of FIA employees. The questionnaires on reward mechanisms and performance of employees were based on readings from conceptual literatures of Mondy [3] and Martocchio [5], respectively.
The preliminary copy of the questionnaires were organized and submitted to the capstone supervisor for review and correction. The questionnaires were further commented by the supervisor for improvement. Then, content validation of the questionnaires was conducted to some managers and employees of FIA, and the valid suggestions were adopted before the finalization of the questionnaires. Participants in the validation phase were not included in the actual distribution of questionnaires.
The 5-Likert scale was used, and it has considered the descriptors as: 5- excellent; 4- good; 3-average; 2- poor; and 1- very poor. 3.4 Statistical Treatment of Data The weighted mean and Pearson correlation coefficient were used in this study. The Statistical Packages for Social Sciences (SPSS). version 21 was used in the analysis and statistical treatment of data. In this study, the weighted mean is used to determine the extent of reward mechanisms and level of employees' performance. While, Pearson coefficient correlation was used to measure the relationship between reward mechanisms and performance of FIA's employees. The 0.05 level ofprobability was considered as the level.
4. Results and Discussions 4.1 Extent of Material Rewards Mechanisms 4.1.1 Employees' Compensation The respondents' assessment on the extent of compensation as material reward mechanisms provided by FIA as "average" based from the general weighted mean score 3.04.
The compensation in terms of hourly wage rate was found to be "good" as revealed by the weighted mean score of 3.78. This means that FIA provides over-time pay and that over-time is exclusive for all employees.
Other components such as salary and commission were disclosed as "average" based on the mean scores 2.98 and 2.92, respectively. In term of salary, FIA was able to provide a clear salary plan, and give fair salary distribution according to labor market.
In addition, the organization was able to establish commission as one component of material reward mechanisms that include provision of equal commission plan to employees, and equal opportunity in employment through administrative enforcement and education and technical assistance. Bonus was evaluated as "poor" component of compensation based on the computed weighted mean score 2.47. This means that bonus was not considered as reward mechanism for achieving significant goals of employees and grants it to permanent, temporary, and contractual employees. As asserted by Martoc-chio [5] "incentive pay is defined as compensation, which fluctuates according to employees' attainment of some standard". With this result, components of compensation are varying along with achieving some objectives.
4.1.2 Employees' Benefits
The respondents' assessment on the extent of benefit as material reward mechanisms provided by FIA as "average" based from the general weighted mean score 3.48.
The benefits in term of paid time-off rate was found to be "good" as revealed by the weighted mean score of 3.87. This means that FIA allows sick leave with pay and provides lunch periods to employees.
Other components such as protection program and services were disclosed as "average" based on the mean scores 3.33 and 3.25, respectively. In term of protection program, FIA was able to ensure adequate insurance provision benefit for employees who are unable to work because of sickness accident, and allow employees to change/enroll in more than one pension program. In addition, the organization was able to establish services as one component of material reward mechanisms that include provision of family assistance programs such as flexible schedule, school leave, tuition reimbursement, and outplacement assistance, and free transportation services to employees. Martocchio [5] argued that exploring the practices by which the organization can recognize the three board goals employers hope
to achieve when offering benefits to enhance work and life experience, and the reason behind providing benefits is to improve the employees' work and life experience.
4.2 Extent of Non-Material Rewards Mechanisms
4.2.1 Recognition
The respondents' assessment on the extent of recognition as non-material reward mechanisms provided by FIA as "average" based from the general weighted mean score 2.84.
The recognition in terms of most innovative rate was found to be "average" as revealed by the weighted mean score of 2.90. This means that FIA distinguishes employees' creativity and honors to employees for their innovation.
Other components such as anniversary and employees of the month were disclosed as "average" based on the mean scores 2.85 and 2.78, respectively. In terms of anniversary, FIA was able to give awards in terms of recognition for best employees during anniversary, and requires all employees to join the anniversary celebration. In addition, the organization was able to establish employees of the month as one component of non-material reward mechanisms that include awards monthly recognitions to performing employees during the month, and ensures quality and fairness in choosing employees.
Employee recognition programs, such as developing employee recognition awards, can keep employees motivated and invested in the business [6]. Recognition programs helps maintaining the talented employees and investing their effort in improving the organization.
4.2.2 Appreciation
The respondents' assessment on the extent of appreciation as non-material reward mechanisms provided by FIA as "average" based from the general weighted mean score 3.00.
The appreciation in terms of certificates rate was found to be "average" as revealed by the weighted mean score of 3.15. This means that FIA rewards
certificate of recognition honoring performing employees and rewards certificate of recognition for tangible contribution in attaining its goals and objectives.
Other components such as trophies and recognition gifts were disclosed as "average" based on the mean scores 2.97 and 2.88, respectively. In terms of trophies, FIA was able to give awards trophy for the meritorious service of the team in the organization, and awards trophy for meritorious service of the individual staff in the organization. The organization was able to establish recognition gift as one components of non-material reward mechanisms that include provision gifts for individual employee and team members for their achievements, and provision recognition gift in various ways such as thank-you notes, candy, flowers, lunches, group events or outings, movie tickets, etc.
Showing appreciation to employees by acknowledging excellent performance and the kind of behavior the organization want to encourage is best done through simple expressions and statements [7].
4.3 Level of Employees' Performance
The respondents' assessment on the level of employees' performance at FIA as "average" based from the general weighted mean score 3.24.
The employees' performance in terms of safety environment rate was found to be "average" as revealed by the weighted mean score of 3.33. This means that FIA has a safety working environment to run into customers' expectations.
Other components such as adding value, right-ness and adequacy, meeting customers' requirements and expectations, producing low cost outputs, conforming to requirements outputs were disclosed as "average" based on the mean scores 3.27, 3.27, 3.23, 3.20, 3.17, respectively. In terms of adding value to the services, FIA was able to add value to the civil aviation services toward the value of the labor and capital consumption. The organization was able to establish rightness and adequacy as one component of employees' perfor-
mance that display achieving a unit of work related to civil aviation services correctly and on time. The FIA was capable to deliver civil aviation services that meet customer requirements and expectations. Producing low cost outputs is one of the FIA' goals by producing outputs related to civil aviation services at minimum resource cost. FIA concerned to reach to the level where conforming requirements by producing work outputs related to civil aviation services that conform to requirements.
Oak Ridge Associated Universities [8] mentioned that performance measures are always tied to a goal or an objective. Along with the results, it could be notes that the FIA employees' performance is related to achieving duties in an average way.
4.4 Significant relationship between Reward Mechanisms and Employees' Performance
As shown in Table 1, the Pearson coefficient correlation shows that there is a significant relationship between reward mechanisms and employees' performance since the probability p =.000 associated to the computed Pearson's r value which is 0.780 is less than the hypothesized probability level at p =.05. Furthermore, this means that reward mechanism significantly affect the employees' performance.
Employee's rewards provide compelling motivation to continue fruitful behavior on organization behalf [11]. Employees' reward and recognition programs are one method for motivating employees to enhance work habits and important behaviors to benefit a small business.
Table 1. - Computed Pearson Coefficient Correlation Value of Reward Mechanisms and Employees' Performance
Pearson r
Variables Reward Mechanism Employees' Performance
Reward Mechanism Pearson Correlation 1 0.780
Sig. (2-tailed) 0.000*
N 30 30
Employees Performance Pearson Correlation 0.780 1
Sig. (2-tailed) 0.000
N 30 30
Note: *the computed Pearson's r-value is significant
5. Conclusion
The following conclusions are based from the findings, results and discussions of data gathered:
1. The material rewards mechanisms which include employees' compensation and benefits were found to be "average".
1.1 Salary and commission as components of employees' compensation were rated as "average". While hourly rate was found to be good, and bonus was rated as "poor".
1.2 Paid time off as component of employees' benefit was rated as "good". Other components such
:.0S levels (two-tailed)
as protection program and services were found to be "average.
2. The non-material rewards mechanisms such as recognition and appreciation were found to be
a yy
average.
2.1 Anniversary, employee of the month, and most innovative as components of recognition were disclosed as "average".
2.2 Gift, certificate, and trophies as dimensions of appreciation were also found as "average".
3. The over-all employees' performance of FIA was rated as "average". And,
4. Both materials and non-materials reward mechanisms significantly affect the overall performance of FIA employees.
6. Recommendation
The following are the recommendations based from the findings and conclusions of this study:
6.1. Extent of material rewards mechanisms
6.1.1 Employees' Compensation
The Fujairah International Airport (FIA) must adopt a compensation system that is aligned to its strategic objectives and considered as long-term goals to maintain its productivity. As asserted by Martocchino [5], compensation programs for sales people relied on incentives. Compensation programs can help businesses meet their objectives by aligning the financial self-interest of sales professionals with the company's marketing objectives. This aspect of compensation programs does not only apply to sales people but it can also be applied to FIA employees. Mondy [3] further stated that compensation administration demonstrates many elements and has a far-reaching impact on organization's strategic goals.
6.1.2 Employees' Benefits
FIA must sustain to implement employees' benefit material rewards mechanism to further increase the level of employees' motivation towards attainment of departmental goals. Most organizations recognize that they have a responsibility to their employees to provide insurance and other programs for their health, safety, security, and general welfare. He revealed that benefits generally cost the firm money, but employees usually receive them indirectly [3]. The role of benefits in the organization was drawn from its contribution in a company's competitive advantages for recruiting the best qualified candidates [5].
6.2 Extent of Non-Material Rewards Mechanisms
6.2.1 Recognition
FIA must improve its recognition reward programs with the same elements to keep its employees
motivated by investing in organizing the j ob to encourage employees to do their best in their work assignments. FIA must integrate the use of equity theory to reduce any kind of inequity among employees. These recommendations are supported by Brookins [6], and he stated that employee recognition programs such as developing employee recognition awards can keep employees motivated and invested in the business. Dessler [9] discussed Herzberg's though that the best way to motivate employee is to organize the job so that doing it provides the feedback and challenge that help satisfy the employee's higher level needs for things like accomplishment and recognition. Also, Mondy [3] emphasized that equity theory is motivated in proportion to the perceived fairness of the rewards received for a certain amount of effort as compared with what other receive.
6.2.2 Appreciation
FIA must provide appreciation non-material reward mechanism programs to employees upon accomplishing the job to boost employees level of positive working attitude, so they will encourage to work and accomplish more to be rewarded with appreciation in the next accomplishments. Thus, FIA will reflect this kind of performance on its overall outputs. MayanKJ [7] emphasized that appreciation awards are delivered at the time of achievement. He added that they may come in the form of "thank you notes, candies, flowers, lunches, group events or outings, movie tickets, etic". With these awards, they should be tied to a specific message of recognition for a concrete or measurable goals, achievements, or contributions. These acknowledgements should be relatively small and can be given to individuals, teams, or work groups.
6.3 Level of Employees' Performance
FIA must design a reward system align with the objectives of increasing organizational productivity and to those who achieve an expected level of performance. The reward system should be clarified to its employees to which behavior or performance the employee will be rewarded. Similarly, Martoc-chio [5] stated that for pay programs to succeed,
employees must know that their efforts toward meeting production quotas or quality standards will lead to pay raises. He explained that job requirements must be realistic, and employees must be prepared to meet job goals with respect to their skills and abilities. In the same context, the Best [10] mentioned that the first step to identify the behaviors that are important to the company are those activities that might include enhancing customer relationships, fine-tuning critical processes or helping employees expand their managerial skills.
6.4. Relationship of Reward Mechanisms and overall performance of FIA employees
FIA must use the standards of differentiation that considered fair within the organization. With this mechanism, it promotes employees' commitment and it raises the overall productivity of its employees. FIA must ensure that employees understand the definite link between pay and performance. As Zanelli [16] disclosed the first step is to identify the behaviors when workers are rewarded in a tangible way or intangible, because they have demonstrated behaviors considered desirable for the organization.
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