EFFECT OF EXTRINSIC REWARD PRACTICE ON EMPLOYEE MOTIVATION AT SOUTH BRANCH OF TRAFFIC MANAGEMENT AGENCY

Abstract

This study examines the effect of extrinsic reward on employee motivation in the south branch of the Traffic Management Agency. The questionnaires were provided based on the dimension of extrinsic rewards. To achieve the overall objective of the study data was collected from employees of the Traffic Management Agency in the south branch. Accordingly, 170 respondents participated in the study using a simple random sampling technique. An explanatory research design was applied. The study developed five hypothesis.The study tried to process and analyse the data using different descriptive and inferential statistics such as Mean & SD, frequency, Pearson correlation, and multiple regressions. The correlation betweenextrinsic rewards and Employee Motivation is0.34, which shows the moderate relationship between extrinsic reward and employee motivation . Regression result show that Employee Motivation will increased by 0.439 .The results also showed that salary and job security is much important factor for employee motivation as compared to other variable factors like promotion, job security and working condition. TMA must be careful to increase the employee motivation of the Employees by redesigning the reward system regarding the salary and other allowances. Internal work environment of TMA must be pleasant fully.