Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

The Relationship between Extrinsic Rewards and Employee Performance: A Mediating Role of Employee Job Satisfaction

Md Murad Miah, Nor Intan Adha Hafit

http://dx.doi.org/10.6007/IJARBSS/v11-i7/10471

Open access

Food and Beverage industry is inconceivably competitive in case compared to other industries in Malaysia. Each player in this industry regularly endures from challenges in moving forward the standards and inventing their food offerings in order to pull in more customers. To achieve this objective, the workforce of the front line is exceptionally highly imperative since without the fine quality of food, and superb customer service the F&B business cannot preserve itself within the market. This is often, staff job satisfaction and the highest level of job performance are essential which may affect from the various factors within the organization. One of the reasonable factors is extrinsic rewards that can motivate F&B staff to satisfy their job and upgrade their performance. Hence, there is a need to investigate the impact of extrinsic rewards on job satisfaction, and job performance among employees of the food and beverage industry in Malaysia. The sample of this study was 60 employees in Sunway city. The quantitative research method was utilized, and data collection used to be carried out by using an open-ended questionnaire survey. SPSS 23 software was used to analyse the data of this study. In addition, PROCESS Macro analysis was used to conduct the mediating analysis. The result of the study concludes with clear evidence that extrinsic rewards have a week positive and significant relationship with job satisfaction, and employee performance. On the other hand, job satisfaction has a non-significant and too low negative relationship with employee performance. Last but not least, the result also discovered that job satisfaction does not have any influence on the relationship between extrinsic rewards and employee performance.

Abdullah, N. N., & Othman, M. B. (2019). Examining the effects of intellectual capital on the performance of Malaysian food and beverage small and medium-sized enterprises. Technology (IJCIET), 10(2), 135-143.
Bank Negara Malaysia Annual Report. (2018). Retrieved from: https://www.bnm.gov.my/-/bnm-annual-report-2018.
Clifford, J. M. (1985). “The Relative Importance of Intrinsic and Extrinsic Rewards as Determinants of Work Satisfaction”, The sociological quarterly, 26(3), 365-385.
Department of Statistics Malaysia. (2018). Annual Economic Statistics 2018. Retrieved from: https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=456&bul_id=MWg5UHNIRXFnN2xlWVdDTmErUDV6QT09&menu_id=b0pIV1E3RW40VWRTUkZocEhyZ1pLUT09
Dienhart, J. R., Gregoire, M. B., Downey, R. G., & Knight, P. K. (1992). Service orientation of restaurant employees. International Journal of Hospitality Management, 11(4), 331-346.
Gould-Williams, J., & Davies, F. (2005). Using social exchange theory to predict the effects of HRM practice on employee outcomes: An analysis of public sector workers. Public management review, 7(1), 1-24.
Hall, G. W. (2010). Fast food industry employees and job esteem: A descriptive study. Unpublished doctoral dissertation). Capella University.
Hair, J. F., Anderson, R. E., Babin, B. J., & Black, W. C. (2010). Multivariate data analysis: A global perspective (Vol. 7).
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. (2006). Multivariate data analysis . Uppersaddle River.
Huang, W. R., & Su, C. H. (2016). The mediating role of job satisfaction in the relationship between job training satisfaction and turnover intentions. Industrial and Commercial Training.
Joo-Ee, G. (2016). Minimum wage and the hospitality industry in Malaysia: An analysis of employee perceptions. Journal of Human Resources in Hospitality & Tourism, 15(1), 29-44.
Jalal, R. N. U. D., & Zaheer, M. A. (2017). Does job satisfaction mediate the relationship of workload, remuneration and psychological reward with job performance. International Journal of Academic Research in Business and Social Sciences, 7(9), 64-79.
Kilimo, D., Namusonge, G. S., & Makokha, E. N. (2017). Determinants of intrinsic and extrinsic rewards on employee performance in Kapsara tea factory company Trans Nzoia County Kenya.
Khan, I., Shahid, M., Nawab, S., & Wali, S. S. (2013). Influence of intrinsic and extrinsic rewards on employee performance: The banking sector of Pakistan. Academic Research International, 4(1), 282.
Loan, L. (2020). The influence of organizational commitment on employees’ job performance: The mediating role of job satisfaction. Management Science Letters, 10(14), 3307-3312.
Ölçer, F., & Florescu, M. (2015). Mediating effect of job satisfaction in the relationship between psychological empowerment and job performance. Theoretical and Applied Economics, 22(3), 111-136.
Riasat, F., Aslam, S., & Nisar, Q. A. (2016). Do intrinsic and extrinsic rewards influence job satisfaction and job performance? Mediating role of reward system. Journal of Management Info, 11(1), 16-34.
Ramli, A. H. (2019). Compensation, job satisfaction and employee performance in health services. Business and Entrepreneurial Review, 18(2), 177-186.

In-Text Citation: (Miah & Hafit, 2021)
To Cite this Article: Miah, M. M., & Hafit, N. I. A. (2021). The Relationship between Extrinsic Rewards and Employee Performance: A Mediating Role of Employee Job Satisfaction. International Journal of Academic Research in Business and Social Sciences, 11(7), 485–496.