Reward and Employee's Creativity: Case of Manufacturing Organization

Abstract

Objective – The main objective of this study is to investigate strategic reward systems that are intrinsic and extrinsic reward for employees. The rewards address four areas that consist of compensation, benefits, recognition and appreciation. This study discussed whether the reward system gives more benefit to the organization and employees such as improving the employee level of creativity or vice versa.

Methodology/Technique – This study is a correlational study where the researchers examined the relationship between reward system and employee’s creativity among administrative support personnel in the manufacturing industries. This study focused on five (5) selected manufacturing organization involved in electronic field located in Shah Alam Selangor. The total population is one hundred and sixty (160) staff.

Findings – The research findings show that rewards are contributing factors to the employees’ creativity or ideas among administrative support personnel in the manufacturing industries in Shah Alam. By providing employees with extrinsic rewards is relatively straightforward and usually built into performance and particularly useful in the short-term for creativity and motivating employees to work towards one specific organizational goal.

Novelty – The finding of this study would enhance understanding of the issues of reward system among employers in manufacturing organizations which can influence the effectiveness of employee creative. It also will be beneficial to the management in putting such efforts to increase employees’ creativity.

Type of Paper: Empirical.

Keywords: Extrinsic Reward; Intrinsic Reward; Employee Creativity; Manufacturing Organization

JEL Classification: M10, M12, M14, M19