Abstract

The basic purpose of this study was to examine the effect of reward management system, especially intrinsic rewards on task performance with the mediating role of extrinsic and intrinsic motivation of employees working in the banks in the capital of Punjab, Lahore, Pakistan. The secondary purpose of this study was to explore what level of performance these employees demonstrate towards their organizations when they are rewarded intrinsically and when they are motivated due to these reward management system accordingly. In this study, we collected data through self-administered questionnaires applying correlational explanatory research design. We distributed 300 questionnaires among which 290 were returned resulting in a response rate of 96%. The analysis of the data revealed that intrinsic rewards have positive impact on task performance of employees working in banks and motivation and its dimensions, i.e., intrinsic motivation, extrinsic motivation, and job satisfaction mediated this relationship. Considering the importance of appreciations received by bankers in the form of rewards and their effect on extra role performance and sophisticated management, policy makers should take necessary steps for improving the reward management system which will increase the task performance of employees because they will be motivated by these performance appraisal techniques.

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