Business Studies Journal (Print ISSN: 1944-656X; Online ISSN: 1944-6578)


Assessment Of Intrinsic And Extrinsic Rewards On Employee Performance: A Study Of Garments Industries In Bangladesh

Author(s): Md. Hasan Mia

People are one of the most crucial factors of production. The employee is the heart of the labor-intensive garments industry in Bangladesh. The growth, competitiveness, survival, performance mainly rely on the efficiency and performance of its human resource. This study aims to assess the impact of intrinsic & extrinsic rewards on employee performance. It intends to examine whether intrinsic rewards or extrinsic rewards have more impact and influence the overall performance like productivity, the profitability of employees in the garments industry whereas motivation, satisfaction are considered as mediating variables. The study is based on the self-determination theory (SDT) & intrinsic and extrinsic theory of motivation. To serve the purpose, five (05) most renowned garments factories have been selected based on their performance to represent the whole industry. A questionnaire is also surveyed to 50 employees of the top, mid, and lower levels of employees of the selected garments factories. The data have been analyzed by correlation, regression, ANOVA and Chi-square test using SPSS & Strata software. It is found that all independent variables have a significant correlation with performance. The study also reveals that employee performance in the garments industry mostly relies (83.1%) on extrinsic rewards & intrinsic rewards have a low level (76.1%) of impact on motivation, satisfaction, and overall performance.

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