Pay and Rewards As Motivators in Hospitals: Analysis of UK's Healthcare Management Practices

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

Background1

Problem statement2

Purpose2

Research Aims and Objectives2

Research Questions3

Significance3

CHAPTER 2: LITERATURE REVIEW4

Importance of Motivation4

Theory of rewards4

Social-Cognitive Approach to Study of Rewards4

Basic Psychological Needs Theory (BPNT)6

Cognitive Evaluation Theory (CET)7

Goal Contents Theory (GCT)8

Organismic Integration Theory (OIT)9

Causality Orientations Theory (COT)10

Self-Determination Theory and Rewards11

The Social-Cognitive Perspective11

Pay and Attrition12

Rewards and Job Satisfaction15

CHAPTER 3: METHODOLOGY17

Introduction17

Classification of Research Methods17

Multi-method studies17

Mixed method studies17

Research Philosophies18

Qualitative and Quantitative approach19

Deductive and inductive approach19

Subjective and objective approach20

Steps in Primary Methodology21

Strength and weakness of the mixed research22

Strengths22

Weaknesses22

Instrument for data collection23

Sample23

Limitations23

Internal Validity23

Construct Validity24

CHAPTER 4: ANALYSIS AND DISCUSSION25

Questionnaire analysis25

CHAPTER 5: CONCLUSION38

REFERENCES43

APPENDICES49

CHAPTER 1: INTRODUCTION

Background

The more an employee is engaged, the more likely he or she is to focus on value-enhancing behaviors to the organization (O?Neal & Gebauer, 2006). A recent 2005 Towers Perrin global workforce study of 86,000 employees from mid- and large companies in 16 countries across four continents show 84% of the study's highly engaged employees believe they can positively impact the quality of their work product, compared with 32% of disengaged employees and 62% of moderately engaged employees (O?Neal & Gebauer, 2006). Highly engaged employees think they are important and essential and are willing and eager to contribute. The study also showed a relationship between employee engagement and retention. Among engaged employees, 59% say they are committed to stay with their employer compared with only 24% of disengaged employees (O?Neal & Gebauer, 2006).

Employee engagement is driven by rewards other than compensation and typically vary based on where an individual is in his or her career (Jesuthasan, 2003). Work-life programs that support the needs of employees at different stages of the life-cycle are linked to increased employee satisfaction, engagement, and increased OCB resulting in employees who perform at a higher level and beyond the traditional elements of the job (Lambert, 2000). A direct link exists between employee satisfaction, customer satisfaction, company financial performance, and increased shareholder value. A 2001 Towers Perrin study found a positive correlation between employee engagement and financial indicators such as revenue growth, cost of goods sold, and operating margin (Jesuthasan, 2003)

Problem statement

Both basic and applied research studies have been conducted to examine the effects of rewards on intrinsic motivation, competence, autonomy, and achievement. By definition, basic research seeks to understand the theoretical basis of specific phenomena in more controlled settings whereas applied research seeks to examine the phenomena in more naturalistic or less controlled settings (Israkson, 2008). Information gathered from basic and applied research studies on rewards and specific variables (i.e. intrinsic motivation, achievement, etc.) have added valuable information to the field of motivational psychology and health care. Nevertheless, there are numerous shortcomings within this body of research on rewards, most significantly related to the issue of settings and field studies (Schepers 2005).

Purpose

The purpose of this study is to determine how UK hospital uses pay and rewards to motivate staff. The pay and rewards are important determinants for reducing attrition and increasing employee engagement.

Research Aims and Objectives

The aim of this research is to study the impact of ...