The Impact of Motivation (Intrinsic and extrinsic Rewards) and moderating affect of organization culture On Employee performance in Air Blue Pakistan (Thesis Report)

Independent Study
Topic:
The Impact of Motivation (Intrinsic and extrinsic Rewards)
and moderating affect of organization culture On Employee
performance in Air Blue Pakistan
Submitted By:
Tariq Mehmood (Registration No MB-3-12-56908)
Supervisor:
Dr. Atif Aziz
DATE
28.10.20

PROJECT REPORT SUBMITTED TO
PAF- KARACHI INSTITUTE OF ECONOMICS AND TECHNOLOGY
DEPARTMENT OF MANAGEMENT SCIENCE
Independent Study Approval
Project Title:
“The Impact of Motivation (Intrinsic and extrinsic Rewards) and moderating affect of
organization culture On Employee performance”
By : Tariq Mehmood
Project Supervisor : Dr. Atif Aziz
Year : 2020
The board of advance study and faculty of PAF (KIET) have permitted this Independent Study,
submitted in partial fulfillment of the requirements for the degree of Master of Business
Program.
_________________ _______________
Dr. Atiz Aziz Adnan Anwar
Supervisor Director Academic

Letter Of Transmittal
Date:
Dr. Atiz Aziz
Project Facilitator
PAF (KIET) Main Campus
Karachi
Project Title: The Impact of Motivation (Intrinsic and extrinsic Rewards) and moderating
affect of organization culture On Employee performance
Respected Sir
I am submitting the final report on The Impact of Motivation (Intrinsic and extrinsic
Rewards) and moderating affect of organization culture On Employee performance”. As
per your instructions all things are included, the report is generated, object of study and brief
literature review. There are five hypothesis were developed and test based of simple regression
I am extremely thankful to your direction, assistance and supervision to complete my all work
otherwise I cannot generate the whole report as per criteria
Regards and best wishes
Tariq Mehmood
MS (HRM)
MB-3-12-56908

Letter of Authorization
Date:
Tariq Mehmood (MB-3-12-56908)
Refer to early proposal for the understanding the study on The Impact of Motivation (Intrinsic
and extrinsic Rewards) and moderating affect of organization culture On Employee
performance. In the view of many discussion and dialogue with supervisor and many meetings
with faculty board of PAF (KIET) the proposal was finalized. Kindly initiate the study on the
confirmed term of reference.
Dr. Atiz Aziz
(Supervisor)

Acknowledgement
“To Him belongs the dimension of the Heavens and the earth, it is He who gives, Life and death
and He has power over all things.”
(Al-Quran)
First of all I would thankful Almighty Allah who has directed me the way for a bright future
without his help I cannot do anything and I cannot be able to complete that task.
My Supervisor Dr. Atiz Aziz helped me a lot in selecting the topic, preparing the report, the
questionnaire, data collection and all required things. He always guide me in right way every
time, he teach me about the concept about research, knowledge, working and practical
experience with examples
I am also great full to my parents, family members, my surrounding people, and friends,
specially the senior students of PAF (KIET) and all who guide me, take care of myself and help
me in my project development.

Contents
Chapter-1 Introduction 07
1.1 Introduction and Background 07
1.2 Problem statement 09
1.3 Research Objectives 09
1.4 Research Questions 10
1.5 Hypotheses 10
1.6 Purpose of Study 10
1.7 Significance of Study 11
1.8 Scope of research 11
1.9 Operation definition 11
Chapter-2 Literature Review 12
2.1 Overview 12
2.2 Employee Performance 14
2.3 Motivation 15
2.3.1 Intrinsic and extrinsic rewards 17
2.3.1.1 Relationship between Intrinsic and extrinsic rewards and Employees Performance 18
2.4 Organization Culture 18
2.4.1 Relationship between Organization Culture and Employees Performance 20
2.5 Flexible Environment 21
2.5.1 Relationship between Flexible/Friendly Environment / hours and Employees Performance22
2.6 Recognition / praise 22
2.6.1 Relationship between Recognition / praise and Employees performance 23
2.7 Fringe benefits 24
2.7.1 Relationship between Fringe benefits and Employees performance 26
2.8 Wages 27
2.8.1 Relationship between wages and Employees performance 27
2.9. Measurement 28
2.10 Antecedents 28
2.11. Framework 29
2.12. Research Gap 30
Chapter 3 Research Methodology 31
3.1. Introduction 31
3.2. Research Method 31
3.3 Research Approach 31
3.4. Research Design 32
3.5. Sampling Technique 32
3.6. Sampling Size 32
3.7. Instrumentation 32
3.8. Research Tool 33

3.9. Research Analysis 33
3.10. Descriptive Analysis 33
3.11. Reliability Analysis 33
3.12. Correlation Analysis 33
3.13. Regression Analysis 34
Chapter 4 Data Collection and Analysis 35
4.1. Secondary Data 35
4.2. Complete Instrument 35
4.3. Validity of Instrument 38
4.4. Justification for the instrument and reliability test 38
4.5. Model Summery 38
4.6 Descriptive Statistics 39
4.7 Correlation Analysis 39
4.8 Regression Analysis 40
4.8.1. H1 Wages / salary and employee performance 40
4.8.2. H2 Flexible environment and employee performance 41
4.8.3. H3 Fringe benefits and employee performance 41
4.8.4. H4 Recognition / praise and employee performance 42
4.8.5. H5 Organization Culture and Wages 42
4.8.6. H6 Organization Culture and flexible environment 43
4.8.7. H7 Organization Culture and fringe benefits 43
4.8.8. H8 Organization Culture and recognition 44
Chapter 5 Results 45
5.1. Introduction 45
5.2. Limitations and Future Research Directions 45
5.3. Theoretical Implications 45
5.4. Practical Implications 46
5.5. Conclusion 46
5.6. Limitation of the study 46
5.7. Suggestions for Future Work 47

Chapter-1 Introduction
1.1 Introduction and Background
Currently, the many corportae sectors is confronting unstable financial times, related to liquidity,inflation,
exchange rate, credit, cash flow, etc. A great deal has been written about employee performance, its
impact on the effectiveness of the organization as well as corporate success. However, because of its
profound role in influencing motivation factos and organzational culture.
There are many studies on the motivation factors impact the one employee performance the studies are all
international and they corporation those on study by researcher are also internationally.
I understand that almost all corporate business are focus on their prime objective of their business, these
are profit, productivity, growth etc, and their objectives some time they regret or they refuse the other
domain like employees motivation due to lake of motivation or (Intrinsic and extrinsic Rewards) and
organization culture is not affective, employees cannot perform better because they don’t feel better in
environment, so result their performance are affecting and hitting down.
Three types of air line are operating their business in Pakistan
Schedule airline Pakistan Air line (PIA), Air blue, Serene Air and others
Charter airline ASSL, Princely Jets and others
Cargo Airlines Vision Air International, Air Falcon and others
In this study researcher focus on schedule airline and the airline is Air blue due to limited time we cannot
study all domains of air lines.
Air Blue
The airline was established in 2003 by Shahid Khaqan Abbasi and Tariq Chaudhry Pakistani American IT
professional. Air blue started operations on 18 June 2004 with three leased Airbus A320 and
A200 aircraft serving Karachi to Lahore, and Karachi to Islamabad with three daily flights in each
direction. The airline was inaugurated in 2004 by Prime Minister Zafarullah Khan Jamali.
Founded in 2003, commenced on 18th
June 2004, Hub Jinnah Air port Karachi Pakistan and HQ is located
in Islamabad, have 10 size of destination as well as has 10 destinations, Air blue Limited (stylized as air
blue) is a private Pakistani airline with its head office on the 12th floor of the Islamabad Stock Exchange
(ISE) Towers in Islamabad, Pakistan. Air blue operates scheduled domestic and international flights, the
latter to Saudi Arabia and the United Arab Emirates.
Currently huge competition in the airline industry worldwide also in Pakistan too, with competitive prices
and promotional packages being offered and other tangle or intangible benefits by distinct airlines, also
measured turnover increased if employee dissatisfaction. This study is to indentify the ways new
employees how to perform their tasks well and maintaining strong relationships between managers and

workforce and creating a working environment also focus on identify key contributing HR factors, which
result in ultimate job happiness of the employee and boosts overall the productivity of employees.
1.2 Problem Statement
Employee motivation, organization culture in relation to employee performance has received little
attention a lot of the academic researchers in this area have focused on employee performance in relation
to motivation (Intrinsic and extrinsic Rewards) and organization culture they might be agree on
relationship between motivation, organizational culture and employee performance.
In a recent research thesis they belief that employees have emotion about job, motivation is required for
these employee (Saeid, Indra and Abubakar 2013). The motivated employee gives more productivity, if
they are productive means they are motivated by management or the ammonization department plays a
role for that (Kolawole 2013).
Is there any relationship between motivation (Intrinsic and extrinsic Rewards) and employee performance
and impact of organization culture? Is there a positive relationship between motivation, organizational
culture and performance? These are questions, which need further exploration. And thus, this study
sought to provide empirical answers to such questions
1.3 Research Questions
1. What is the effect of wages on Employee Performance in air blue?
2. What is the effect of Flexible Environment on Employee Performance in air blue?
3. What is the effect of Benefits on Employee Performance in air blue?
4. What is the effect of Recognition on Employee Performance in air blue?
5. What is the moderating effect of Organization Culture on the relationship between Salary and
Employee Performance in air blue?
6. What is the moderating effect of Organization Culture on the relationship between Flexible
Environment and Employee Performance in air blue?
7. What is the moderating effect of Organization Culture on the relationship between Benefits and
Employee Performance in air blue?
8. What is the moderating effect of Organization Culture on the relationship between Recognition
and Employee Performance in air blue?

1.4 Research Objectives
To find out the Impact of motivation (Intrinsic and extrinsic Rewards) and moderating affect of
organization culture on Employee performance. In line with this primary objective; the secondary
objectives were as follows:-
1. To identify the effect of wages on Employee Performance in air blue
2. To identify the effect of Flexible Environment on Employee Performance in air blue.
3. To identify the effect of Benefits on Employee Performance in air blue.
4. To identify the effect of Recognition on Employee Performance in air blue.
5. To identify the moderating effect of Organization Culture on the relationship between Salary and
Employee Performance in air blue.
6. To identify the moderating effect of Organization Culture on the relationship between Flexible
Environment and Employee Performance in air blue.
7. To identify the moderating effect of Organization Culture on the relationship between Benefits
and Employee Performance in air blue.
8. What is the moderating effect of Organization Culture on the relationship between Recognition
and Employee Performance in air blue
1.5 Hypotheses
H1 There is any positive effect of wages / salary on employee performance
H2 There is any positive effect of flexible environment on employee performance
H3 There is any positive effect of fringe benefit on employee performance
H4 There is any positive effect of recognition / praise on employee performance
H5 There is any positive effect of organization culture on wages / salary
H6 There is any positive effect of organization culture on flexible environment
H7 There is any positive effect of organization culture on fringe benefit
H8 There is any positive effect of organization culture on recognition / praise
1.6 Significance of Study
Globally International level lot of studies done on this topic by researcher in different areas and different
organizations, but this study is in Asian context and country is Pakistan and will provide the positive
approach for the providing the methods of motivation factors (Intrinsic and extrinsic Rewards) and
moderating affect of organizational culture on employee performance, HR can apply this study results on
their organization for better results and productively.

1.7 Practical Significance
This research study provide from PAF KIET and Dr. Atif Aziz help to finalize the topic the researcher
believed when employees stayed longer in serving the corporation, they can possibly have a better
understanding about the existing organization’s culture and its effect on their performance also some
motivational factor are discussed in this research if the outcome of study will apply through SOPs in
organization hopefully positive result will generate the performance of employee will enhanced.
1.8 Scope of Research
This study is conducted to analyze the motivation factors (Intrinsic and extrinsic Rewards) and
moderating effect of organization culture on employee performance, while motivation factors {(Intrinsic
and extrinsic Rewards) recognition / praise, flexible environment, fringe benefit, salary} as an
independent variable is employee performance. Our targeted population is randomly selected employees.
For this study, we will use convenience-sampling technique of non-probability. From this research, we
want to create the eco-friendly organizations for employee and employers too.
1.9 Operation definition
Motivation
According to Dahlqvist and Matsson (2013) very important instrument to increasing the performance of
the workers and retaining log period the best tool is motivation. Intrinsic and extrinsic are two types of
motivation according to (Mc Cormick & Tiffin, 1979)
Organization culture
Organization with good culture is more likely to maintain a greater financial performance all the time (Roberts and
Dowling, 2002).
Recognition / praise
Zani, Rahim, Junos, Samonol, Ahmad & Merican, 2011 and Rahim & Duad, 2013 recognition is highly
effective motivational tool, and increase the performance of employee as well as generally organizational
Performance.
Flexible environment
Flexibility in schedules like (hour’s locations and other), effects on productivity / performance (Bhate,
2013; Tahir et al., 2014)

Fringe benefits
According to Raja, Sheikh et al. 2018 workers in Pakistan would be more paying attention on rewards
rather than others things
Salary
Salary is directly impact the employee’s performance and worker output express what a worker get in
exchange for wages or salary paid Taylor (2009).
Regarding the methodology, mixed approach is applied as quantitative method was appropriate to
examine the relationship between two or more variables in the study, With respect to the research design,
explanatory research design was adopted. This research is basically independent study short time tenure
covered a total of four months duration, which was started on August end of December, 2020 and the
final thesis paper is going to be submitted on the end of December, 2020

Chapter-2 Literature Review
2.1 Overview
Motivation like (Intrinsic and extrinsic Rewards) is something means it as importance, which
corporations business cannot neglect now a day because if you want to stay you’re presence in market or
you want your business at competitive edge primary objective you should motivate yourself and your
employees. Few decades back, corporations or business are focus on only earning and they did not pay
much heed or attention on employee’s motivation like (Intrinsic and extrinsic Rewards). Employees were
just treated as a commodity or like a labor and they were paid for their work ignoring all other
motivational factors like (Intrinsic and extrinsic Rewards). Now companies have realized after lost of
research held in these area that employee’s needs ought to be fulfilled and the employee’s motivation
level should be high, only then can the companies or business will flourish and give results as they deem
fit, it will happened then employee are performing better. A motivated employee should give his great
efforts to attain the organizational goals and objectives. The companies have experienced the results of
de-motivated employees at workplaces are arduous for business to sustain. Due to lack of motivation, a
high turnover of employees is being witnessed in various corporations and the overall expansion of the
organization is being affected. It has now being inevitable for the companies to avoid the employee’s
motivation attribute because that has a direct link with the organization’s growth means if you want to
generate revenue, generate profit then you should motive your workforce. There are many factors which
affecting motivation like organization culture, recognition flexible environment (job, perk and freedom)
fringe benefits and salary. There are many other variables but due to limited time and according to
Pakistani context we choose theses limited which motivate employees. In this era of globalization where
speedy changes are occurring in the market, new tactics are being developed by the companies and
corporate business to increase their revenue, profit, productivity and for this purpose; the corporate
business trying employees leads to motivation. Companies now have kept break up budgets for employee
motivation.
Motivation (intrinsic and extrinsic rewards) which companies give to their employees for growth of their
business. Giving an employee the employee of the year award for his performance, appreciating the
employee, giving him a medal, or a certificate of praise, fridge benefits, recognition are all ways of
recognition the good performance of the employee and most important organization culture also playing
major role for revenue. Further, an employee could also be recognized by awarding him a free ticket for
an event or giving him a free ticket for watching a latest movie at the cinema or other shopping vouchers.
This study aims to find out the impact of motivation (intrinsic and extrinsic rewards) one more moderator
factor is organization culture where are independent variable are motivation, organization culture,
recognition flexible environment, Fringe benefits and dependent variable is employee performance. The

study has the potential to prove that the above mentioned factors have a significant impact on employee
performance. It has been found that employees witness problems at work places and at times they feel
down and then they to tend to question the loyalty of the organization towards them. Research would
strive to find out that impact of motivation (intrinsic and extrinsic rewards) moderator factor organization
culture have an impact on employee performance.
2.2. Employee performance
HR department or CEO etc judge the employee performance of each staff member on an annual or
quarterly basis in order to help them recognize suggested areas for improvement so if performance
increase the business revenue increase.
Many characteristics of the job, particularly independence and competence, are referred as intrinsic
motivators and extrinsic motivators by social psychologists and personality psychologists. Deci and his
colleagues projected that intrinsic motivation occurs when individuals feel both self-determined and
competent in their job (Deci 1975; Deci & Ryan 1985)
According to De Cenzo et al., (1996), employees who are motivated use a better attempt to perform a
work in the organization than those who are not motivated.
There are many reasons or factors that Employee performance depend like performance appraisals,
employee motivation, employee satisfaction, compensation, training and development, job security,
organization structure and other, these factors highly influence the performance of employees. A
motivational worker is responsive of the exact goals and objectives he/she must accomplish, therefore
he/she directs their attempt in that direction.
All companies or business sectors make use of compensate, promotion, bonuses or extra types of rewards
to motivate and support high level performances of staff (Rena et al, 2009). Performance in business can
be divided in organizational performance and job performance (Otley, 1999).
A good member of staff performance is compulsory for the organization, since an organization’s
achievement is dependent upon the employee (Ramlall, 2008). According to Coulter (2006) express
worker performance as the total or collective output of an employee activities and actions in an
organization according to her there are many level to check the performance of
employee performance may be describe as little performance levels, reasonable performance levels and
low performance levels.
Now a day’s organizations recognized the significance of motivated and satisfied employees as essential
provider towards long term objective, it is also absolutely influence performance of employees and
organization too (Risambessy et al 2012).

Employee performance based on basically quality and quality of productivity at job. We have to
understand the changes in organization may affect the performance of employees it is important to
understand about these changes that have impact or motivation; employees are doing certain tasks and if
they are not well the results is performance will be low. Employee motivation, therefore, is an important
determinant of performance at the workplace (Houkes 2002). According to the writer this study explain
the relationship between motivation factors as well as the employee performance income level in the
organization impact absolutely on the performance of employees due to this employee will try to achieved
targets professional goals, and according to them many factors are but main three one is capability, effort
environment, Maslow believed that human nature which is satisfied their performance is accomplished.
The study conducted by Yang (2008) According to Dahlqvist and Matsson (2013) very important
instrument to increasing the performance of the workers and retaining log period the best tool is
motivation High performance increases the firm’s status and position. According to Remi (2011),
workers those are extremely motivated and performed well when they feel attention and enjoyment in
their job. One claimed by William (2010) he clarified that employees / workers were motivated by
extrinsic motivation to attain their soaring performance in organization. (Anthony Afful-Broni et’al 2012)
2.3. Motivation
A Latin word “mover” meaning of that word “to move”. Motivation engage how hard efforts of anybody
going toward goals and how long to maintain the efforts.
According to Luthan (1998) that motivation is playing a centralization part at place of work to complete
the desired goals of any organization. Motivation means to be encouraged and activated towards an end
(Deci & Ryan, 2002). Motivation is energy to push workers for completion of their tasks at work.
Motivation is linked with every step of life e.g. drinking is motivated by thirst (Deci & Ryan, 2002).
The motivational theories that are relevant for this research are
Equity theory (Adams, 1963; in Harder, 1991; in Robbins, 2003; in Kinicki and Kreitner,
2003),
Expectancy theory (Vroom, 1964 in Harder, 1991; in Isaac et al., 2001; in Robbins, 2003),
Goal setting theory (Locke, 1968 in Austin and Bobko, 1985; in Locke and Latham, 2002; in Robbins,
2003; in Kinicki et al., 2003).
Equity Theory Robbins (2003) and Adams (1963; 1965, in Harder, 1991) explain that the equity theory
is a theory that centers on perceived fairness of an individual

Expectancy theory refers to a set of decision theories of work motivation and performance (Vroom,
1964; in Ferris, 2007).
Goal-setting theory Locke, Shaw, Sarri and Latham (2008)
Factors to support Motivation.
 Management and leadership actions that allow employees
 believe about your workers potency
 query workers what they want
 coach workers to measure their own success.
 crystal clear & regular communication about factors essential to workers
 take care of workers with respect
 Providing regular workers respect
 Feedback and training from managers and leaders
 Industry-average benefits and recompense
 Carry an idea notebook
 Explain your remuneration systems
 Inquire employees for information about their performance.
 Communicate
 Stop distract workers
There are many motivational theories those have overview on the motivational factors very clearly and
briefly Herzberg’s hypothesis of two Factor; Alderfer’s progression for needs that holds three Part;
McClelland’s motivational accomplishment principle what’s more Vroom’s anticipation hypothesis.

Emeka et al., (2015) claimed that all extrinsic factors improved the motivation of employees which in the
end influenced positively to performance of workers in terms of efficiency. In the context of management
word motivate is frequently used, this is very important importance to the wealth of profitable business by
Lawler (1973). ). For the satisfaction of worker / employees for best deal with intrinsic reward in a good
organization that rewards him for his job or good output. Rewards are very important to staff whether
they are extrinsic or intrinsic. Intrinsic reward appear in a person after the achievement of certain job or
effort (joy, satisfaction, pride etc.); while extrinsic motivation comes from external sources or forces as
remuneration, wealth or ranking etc. (Scott and Bruce, 1994)
Straight bonuses and rewards based on person performance if employee performance is noticeable (Yang,
2008; Rizwan et al., 2013). According to Dauda Abdulsalam et’al 2012 author said he search about
relationship between motivation and performance there are many motivation factors. Grant (2008)
realized held on worker motivation; motivation imposed such outcomes as productivity, performance of
employees. In “Path Goal Mode” explained association between employee performance and reward
system. In this model, if an employee observes high output towards accomplishment of his personal
goals, he or she will be inclined to generate high output and have link between on external rewards refers
to intrinsic motivation including salary alone or bonuses etc, it is also important to engage the employee’s
excellence and capacity of work and output (Williams, 2004)
According to Dahlqvist and Matsson (2013) very important instrument to increasing the performance of
the workers and retaining log period the best tool is motivation High performance increases the firm’s
status and position.
2.3.1. Intrinsic and extrinsic rewards
Some previous studies presented the insignificant impact of few extrinsic factors on employees / workers’
performances such as Field et al., (1974), Rahman et al., (2017), Kuvaas et al., (2017), Cannizzaro et al.,
(2017). Whereas other studies explained the irrelevant impact of all extrinsic factors on employees’
performance such as Mulki et al., (2017), Houston (2010), Hyun S. (2009), Gain et al., (2017). While
other studies summarized the significant impact of all extrinsic factors on employees’ performance such
as Casey et al., (2012), Yuan and Woodman (2010), Stella (2013), Parker et al., (2017), Bear et al.,
(2017), Ghanbahadur (2014). Recent study has exposed that all extrinsic factors are essential for
improving employees’ performance. Hur, 2017; Chang and Teng, 2017; Sanjeev and Surya, 2016; Emeks
et al., 2015; showed a positive and significant impact of hygiene factors for improving the employee
satisfaction, talent and performance in the industry
Intrinsic and extrinsic are two types of motivation according to (Mc Cormick & Tiffin, 1979). According
to Ryan and Deci (2002), intrinsic motivation is related to gladness arise inside after achievement of

certain desired responsibilities. Whereas extrinsic motivation is related to external factors of job it, which
is helpful for improving performance of employees in the organization or corporate business. According
to Cannizzaro et al., (2017), organization presents financial rewards along with extrinsic rewards to their
employees or workers to complete assignment or job. Organization offer extrinsic rewards to their
workers after the done job done properly (Remi, 2011).
According to Stella (2008) he gave explanation that high motivation and high performance for winning
organization can be achieved by several variables such as working condition, work relation, supervision
and job security in Kitgum District Local Government to carry out good resultant.
Such intrinsic or nonfinancial rewards include training and continuous development courses, job titles,
Flexible environment, on the-spot praise, leadership roles, team spirit, social gatherings, time-off, social
recognition and performance feedback (Dobre, 2013).
Examples of extrinsic motivation system contain bonus and competitive salaries and wages (Itotia,
Mugambi, & Wachira, 2013) and other monetary rewards (Omollo, 2015)
2.3.1.1. Relationship between Intrinsic and extrinsic rewards and Employees
Performance
This study focuses on two-factor theory of Herzberg to evaluate impact of Intrinsic and extrinsic
motivation on employee performance in organization. Hygiene factors work as extrinsic factors and
contribute a major role to fulfill the basic needs of employees (Khan et al., 2013). Extrinsic motivation
boosts the employees’ performance through fine working condition, noble policies, security and reliable
relations among peers (Emeka et al., 2015).
According to Attrams (2013), extrinsic factors were playing a most important part for raising the
employee performance in public and private sectors organization e.g. monetary policy and good working
relatives. One more research explored by Amabile (2003) discovered that although intrinsic and extrinsic
motivations are opposite, but they still have a strengthen on employees and their performance.
An intrinsically motivated individual who is will work because it is enjoyable or will find a solution for
any difficulty because feeling of pleasure after solving it. In both the cases no external reward is
important to the person such as compensation or award (Roberts, 1991 and Rothwell, 1992). There is also
importance for extrinsic reward to keep the person motivated (Eisenberger and Cameron, 1996; Janssen,
2000; Mumford, 2000)

2.4. Organization Culture
There are many organizational culture typologies and related dimensions like Schein, Schwartz, Hofstede,
O”Reilly, the culture and its type as given below
The Clan Culture: are the most collaborative and the least competitive of the four main
corporate culture models.
The Adhocracy Culture: are characterized by flexibility, employee empowerment and an emphasis on
individual initiative.
A market culture is a type of corporate culture that emphasizes competitiveness not only between the
organization and its market competitors but also between employees.
Hierarchy culture is a type of organizational structure in which items are ranked according to levels of
importance
The Competing Values Framework of Organizational Effectiveness
Martins and Terblanche (2003) the culture of organization deeply relationship with the values and beliefs
in the organization it relates employee beliefs, values, norms and principals

Previously research specify there is relationship between employee performance and the culture of the
organization Magee (2002) according to him that organizational culture is essentially connected to
organizational practices which increase the performance of employee within any organization.
There are many surveys (Culture surveys) those are stated that for employee performance can be
enhanced by developing and create certain type of culture (Sackman and Bertelsman, 2006 and Denison,
1990,).
Hofstede Model of Organizational Culture
2.4.1. Relationship between Organization Culture and Employees Performance
To attaining the corporate objectives a positive culture will help to increase the performance and
motivation will help towards attaining the objectives (Daft, 2010). It is understood for sustain the
employee performance in the organization, the organizational culture have major role Hellriegel &
Slocum (2009). The study from the culture of the organization theoretically to performance and positive
outcomes Martin and Siehl (1990). The success of business to attain the desire goals and objectives is
called organizational effectiveness is also defined as the extent to which an organization fulfils, process
control, information management and goal setting. Measurement is very important for organizational
effectiveness. Many researchers have shown that Organization Culture (OC) has an impact on job
satisfaction, job efficiency, employee commitment and cooperation, decision-making.

There are some models for organizational effectiveness / productivity
The Human Relations Model:
This model sees participation, discussion and openness as a means to improve morale and achieve
commitment.
The Internal Process Model:
This model sees internal processes such as measurements,documentation and information management as
methods to achieve stability, control and continuity.
The Open Systems Model:
This model relates insight, innovation and adaptation as a path towards externalrecognition, support,
acquisition and growth.
The Rational Goal Model:
This model seeks profit and productivity through direction and goals (Martz, 2008)
2.5. Flexible Environment
In 2008 the report from families and Institute National Study of the Changing Workforce (NSCW) finds
that 87% workforce wants flexibility in their job to spend with personal and family life. According to
(Hill, Hawkins, Ferris, & Weitzman, 2001) having have power over their work timetable / schedule; make
it more potential for employees’ to arrange their time to meet their tasks at work. Flexibility in working is
just a modern policy choice for managing workforce. Theory perceived managerial support, employees’
including workplace flexibility, as signals of the degree to which the organization understands and
supports their needs (Lambert, Haley-Lock & Henly, 2012)
According to Otley, the performance of organizations is dependent upon the performance of workers (job
performance) and other many factors such one of them as the environment of the organization. Employee
performance is also negatively affected by stress at work place; it should also be realized (Kakkos et al,
2010). There is huge debate on Flexibility/ elastic Working condition / hours it is not a standardized itself.
The expressions (FWH) Flexible Working Hours, Flexibility, and (FWA) Flexible Working arrangements
have been quite often used interchangeably. The idea of flexibility may cover a different arrangement of
quantitative and qualitative variables. Goudswaard and De Nanteuil (2000) have largely
offered these variables as a) mathematical flexibility (e.g. work on demand), b) geographical
flexibility (e.g. outsourcing), c) functional flexibility (e.g. job enrichment), and d) temporal
flexibility (e.g. night and shift work, part-time, overtime,). But FHW practice includes a diversity of
options which include part-time, shift swapping, working from home, job share, term-time working,
compressed week, time off in lieu, flextime, annualized hours, overtime, sub-contracting, zero hours
contracts, mobile working, and others (ACAS, 2015; Kodz et al., 2002; Torrington et al., 2005). 2010,

according to Workplace Flexibility, Georgetown University Law Center, (FWA) “flexible
work arrangement” any one of a range of work
The above-mentioned explanation presents a broader view of flexible working condition / hours. It is
quite evident that) “flexible work arrangement” (FWH) does not only referrer to variation in the timings
of job or place, also covers a broader spectrum of factors like job sharing, career breaks etc
2.5.1. Relationship between Flexible/Friendly Environment / hours and Employees
Performance
While designing job (JDs), job improvement could be one approach to motivate employees (Fred C.
Lunenburg, 2011). For an ever-increasing use of flexibility in schedules, hours, and locations, if there are
barriers like monitoring other tough policies effects on productivity / performance (Bhate, 2013; Tahir et
al., 2014). Complete place of work elasticity agenda can be a charming situation both for employees’ and
company, result wills confidence and work engagement, better staffing outcomes and workforce
retention, and the better efficiency, and reduced anxiety on the job, better work/family and work/life
balance, and enhanced physical and mental health (Bhate, 2013; Hashim & Hameed, 2012).
A research conducted by Pruchno, Litchfield and Fried (1997), found impacts of
workplace flexibility which shows the winning situation for employees and employer if the more
flexibility at workplace, flexible hours enhanced workforce productivity. Study by Hurtz and Donovan
(2000) there is relationship among specific work environments and performance.
Researcher Thomson (2008) has also conceptualized improved Work Life Balance (WLB) as a positive
outcome of flexible work arrangement FWH. The flexible work arrangement in turn leads to improved
workforce preservation and monetary strength (Allen et al., 2007) and thus contributing to improved
organizational output. According to Pruchno, Litchfield and Fried (1997) the flexibility hour at workplace
as are successful situation for workforce as well as company. Flexible work arrangement / hours reduce
the stress of employee / workforce of the organization growth of performance (Parris et al., 2008)
2.6. Recognition / praise
“If businesses are to grow their way out of the current economic malaise, they will have to get more
productivity out of their people—not by cutting and slashing, but by nurturing, engaging and
recognizing.”
—John A. Byrne, editor-in-chief, Fast Company magazine, January 2002
If you want your workforce improvement towards achievement towards the goals and objectives of the
organization recognition has been identified to be a strong motivational tool that (Imran, Ahmad, Nisar &
Ahmad, 2014) and also have major positive association with performance of workforce (Rahim & Daud,

2013). According to (Nyakundi, Karanja, Charles & Bisobori, 2012) if you want workforce valued and
appreciated the job in the organization, employee recognition provides a sense of ownership and
belongingness, progress in their morale, increase loyalty and retention rate in the organization.
Providing gratitude of the person worker of the month or year to provision of endowment, cards and
certificates, shopping vouchers, domestic goods, dinner, trophies, reserved car parking space,
theatre/cinema tickets, as well as use of certain facilities (Grote, 2006; Silverman, 2004; Nolan, 2012;
Luthans, 2000). Some employees need value / worth / importance rather than compensation these increase
the workforce confidence, and they will be well motivated if they are praise / recognized by the boss /
HoD (Saunderson, 2004). The meaning of recognition / praise giving valuing, caring to your workforce
and their contributions. It is necessary for corporation to recognize their workforce (McGregor, 1960).
Many researches prove that it is good to recognize employees rather than other incentives (Deci & Ryan,
2000). Recognition / praise of employees involve both monetary as well as non-monetary programs
(McAdams, 1995). Best example of recognition involves writing employees names in the company’s
newsletter, letters of praise, additional time off and unwritten gratitude.
‘Why Employee Recognition is so Important’, According to Kim Harrison worker recognition as the
timely, informal or formal acknowledgement of a individual’s or group behavior, effort or business result
that supports the organization’s goals and values, and which has clearly been beyond usual expectations.
Employee recognition has two characteristic the first feature is to actually see, recognize or realize an
opportunity to praise someone in the workforce. The other feature of worker recognition is, of course, the
physical act of doing something to recognize / acknowledge and praise people for their good work.
This recognition programs cover a broad range of activities (Robbins, 2005).
Types of Employee Recognition Programs
Formal recognition These types of recognition whereby staff members know exactly what rewards they
are working for, possibly even with timelines in place.
Informal recognition people-centric systems or programs by which people recognize one another for
their contributions (large and small)
2.6.1. Relationship between Recognition / praise and Employees performance
Imran, Ahmad, Nisar & Ahmad (2014) stated that, worker those are satisfied have positive attitude
towards organization and their jobs also helpful for getting higher the quality and quantity of employee
performance.
According to (Nyakundi, Karanja, Charles & Bisobori, 2012) organization achievement attached to the
performance of workforce, recognition is now globally more relevant factor to succeed in an

economically competitive era. However, the de-motivated employee will produce low or courage less
performance lack innovativeness and not dedication towards job. Non-financial rewards such as
recognition have been highlighted to have positive relationship on employee job satisfaction and
organizational performance (Erbasi & Arat, 2012; Ngatia, 2015; Tausif, 2012)
According to (Roshan L.R, 2005) gratitude is an elementary person need. Workers react to gratitude
expressed through recognition of their high-quality work because it confirms their work is appreciated.
When employees and their work are appreciated, their pleasure and output rises, and they are motivated to
retain or progress their good work.
To keep employee self-esteem high and keep those passionate organizations recognize their workforce.
The employees execute well and motivated those are recognized. This is because
motivated workers do well which makes one’s intention towards certain behavior (Durojaiye, 1976), to
achieve their organizational goals. There is a direct relationship between employee recognition and job
performance. (Motta, 1995) Employee recognition enhances worker confidence which results in the
overall output of the firm. (Harrison, 2005; Saunderson, 2004) if recognition is effective take place in
organizations with strong, helpful culture that understand the psychology of praising workforce for their
good work, apply the different features of employee recognition and encourage other employees to start in
their working relationship.
According to (Zani, Rahim, Junos, Samonol, Ahmad & Merican, 2011) and (Rahim & Duad, 2013)
recognition has been recognized to be a highly effective motivational tool, that can have important
positive impact on employee job satisfaction and performance as well as generally organizational
performance.
2.7. Fringe benefits
Fringe benefits, or total reimbursement package other than salary for time worked provided to employees
by the employer these types of payments play a major role in the structuring of compensation packages
(Williams, 1995). Yang (2008), Bishop (1987) explore worker performance and discovered that
acknowledgment and recognition and reward of performance of workforce straight the discrimination
involving worker productivity, performance of workers extremely hit the effectiveness of performance of
business and its rewards management method (Yazıcı, 2008; Rizwan et al., 2013).
Milkovich and Newman (2005:409) give the following list of factors which they consider will pressure
the benefits chosen both by workers and company depending on their different preferences.
These factors are draw below

McCaffery and Harvey (1997:1) said according to them six reason that why fringe benefits will not be
remove and packages like remuneration need to be structured.
I. It’s the law
II. Duty to bargain with unions
III. Competition
IV. Benefits are tax-advantaged
V. Employees want benefits
VI. Benefits support employer strategies
(Tropman, 2001:21) he believes that employers made common mistakes that is satisfiers and dissatisfies
are the same thing. When a component is there,it can perform as a satisfier, but if the same component is
misplaced, it does not necessarily mean that it is a dissatisfied and vice versa. Table by him provides a list
of components that workers like and dislike, as proposed by
(Blau et al., 2001:671) said that workforce attitude towards organization benefits and their satisfaction

Benefits included under basic benefit satisfaction can be classified as:
 Vacation
 Sick Leave
 Retirement
 Life Insurance
 Disability
 Health
 Maternity/Family leave
2.7.1 Relationship between Fringe benefits and Employees performance
(Raja, Sheikh et al. 2018) a study by them experienced the hypothesis that workers in Pakistan (i.e., an
underdeveloped economy) would be more paying attention on rewards than procedures.
(Jensen & McMullen 2007:38) said that in modern organization manager should know the dissimilar
cultures in the organization as well he know the labor force practices and optimal reward strategy. These
aspects successfully implemented in any organization, it would eventually lead to improved individual
and organizational performance.
Motivating factors according to Herzberg’s (1975) motivational hygiene theory, remuneration consists of
hygiene factors that will contribute to the motivation of the employee if some factors are missing, the
worker will not necessarily feel disappointed, but not fully happy. These factors can be categorized into
the cash component and the fringe benefits.

(Chukwudumebi and Kifordu 2018) fulfilled that fringe benefits play a very important role in the
level of workers morale and output of corporation and there is a relationship between
fringe benefits and performance.
2.8. Wages
Now a day’s present organization concern, workers are precious resource of any organization output. It is
accepted that workers discover valuable sources of competitive edge for any business sector (Aslam,
Ghaffer, Talha & Mushtaq, 2015)
According to Milkovich and Newman (2005:272) they said some of the compensation of a successful
reimbursement structure is:
 People join a company because of pay structures
 People stay in a company because of pay structures
 People agree to develop job skills because of pay
 People perform better on their jobs because of pay
Wachira (2013) and Omollo (2015) argued those workforces are motivated by monetary rewards
including viable salaries and remuneration. Employees want to be paid reasonable salary and payment
and wish their work to feel that is what they are getting. Money is the fundamental incentive; no other
incentive or motivational method comes even close to it with respect to its significant value and it has the
supremacy to pull towards you and motivate persons towards greater performance (Sare et al 2004).
To apply salary as a motivator successfully, managers should believe salary structures, payment
according to performance, personal or special allowances, fringe benefits and so on( Adeyinka et al
2007). Salary is a fixed sum of capital or compensation salaried to a worker by an company in return of
work done (Idrees, Xinping, Shafi, Hua & Nazeer, 2015. Worker know he will received minimum salary
for their time he is receiving from company is guarantee and with security Wildred, Elijah & Muturi
(2014)
2.8.1. Relationship between wages and Employees performance
Pay-related-performance can improve employee performance through straight incentive
effects on employees and they use extra attempt generating the outputs that are rewarded through pay, this
type system which rewards them according to their performance (Lazear, 1986)
An employee is apparently glad with the salary he earns and will carry out to his output high salary
motivates the employee and try to perform better to maintain his position (Woods, 2016). Gorgeous

salaries or pays are important instrument and play a significant role to enhance worker performance and
also enhance the output of business (Muogbo, 2013)
Monetary incentives such as salary is used by company to get excellence job high performance from
workers (Olubusayo, Stephen & Maxwell, 2014; Nelson, 2003). Abosede & Adekunle (2012) stated that
rise in salary has a motivational worth but that the direct association among salary rise and employee
productivity.
According to Kinicki and Williams (2008) he stated that pay for performance is one of the popular
monetary incentives like merit pay also a well known example. According to (Holt, 1993) the benefit like
compensation worker receive in the form of pay, wages and also same rewards like monetary exchange
for the worker to enhance the Performance, payment / salaries is generally equivalent to half of cash flow
of the corporations. They are more than half in service sectors. It is the most important to attract the
worker and motivate worker to raise the performance (Ivanceikh and Glueck, 1989). (Lazear,1986) sheer
(2004) Performance connected pay straight impact the employees performance generating the
productivity through pay and employees has more able to give pay formation according to the
performance. Worker output express what a worker get in exchange for wages or salary paid to a worker
Taylor (2009).
2.9 Measurement
In order to measure the items of instruments / questionnaire, Five-point Likert scale from 1 to 5 rating
used with “strongly disagree to strongly agree” parameters, so these Likert-type scales are very useful
thought of attitudes, feelings, opinions also acceptable for the survey method of questionnaire in the
quantitative research. Many past studies got results through questionnaire based on five-point Likert scale
(Chen and Chang, 2010; Chen et al., 2006, 2009; Li, 2001; Shin and Zhou, 2003).
2.10 Antecedents
Culture of the organization’s idea necessity be learned and shared in the organizations (Titiev, 1959).
According to (Itchy, 1982) Forehand and von Gilmer (1964) culture of the organization defined as the
normative paste or gum that holds an association jointly. The recognition for employees is the top
motivator among worker (Kovach, 1995; Wiley, 1997).
The flexibility of work for employers that allow workers at least some freedom, length and/or scheduling
of their working time to meet their preferences impact on both the performance of workforce and organization
performance (Golden, 1998; Henly & Lambert, 2010; Brown & McNamara, 2011). Fringe benefits, part
of compensation package this is other than pay to employees in whole, play
a major role for performance (Williams, 1995). Salary of the any organization, it is the major to attract the
employee and motivate employee to increases the performance (Ivanceikh and Glueck, 1989)

2.11 Conceptual Framework
Motivation Factors moderator Employee Performance
(Intrinsic and extrinsic Rewards)
(IVs) (DV)
H1
Wages
H2
H3
Flexible
Environment
Benefits
Employee
Performance
Organization Culture
H4
Recognition
H5
H4
H6
H7
H8

2.12. Research Gap
In the past studies, the factors that were affected by the motivation and moderating affect organization
culture on employee performance are actually not implemented and properly investigated specially in
Pakistan. In our country Pakistan, the value of concept specially culture of the organization and other
motivational factors, are not much understand by the firms in Pakistan. The organizations in Pakistan do
not pursue the rules and regulations properly and mostly studies are on Europe counties side this study is
on Pakistan context hopefully it will help. Its actual reason in our country is that the employee and
employer don’t know or less idea about this.

Chapter 3 Research Methodology
3.1. Introduction
The purpose of study monitor to check the impact of motivation factors (Intrinsic and extrinsic Rewards)
and moderating affect of organization culture On Employee performance. Independent variables are
motivation (Intrinsic and extrinsic Rewards) recognition / praise, Flexible environment. Fringe benefit,
salary and moderator variable is organization culture, their influence on performance of employees and
dependent variable is employee performance, researcher will use Instruments in
this studies the instruments are adopted from different studies papers articles and notice that what are the
factors (Intrinsic and extrinsic Rewards) recognition / praise, Flexible environment. Fringe benefit, salary
and mediator organization culture) that affecting the employee’s / worker performance and it’s have an
effect on company output. Due to COVID-19 and lockdown situation researcher will choose E-system to
fill instrument and also try to direct with respondent where possible.
Researcher will explain how in this chapter how research might be carried out and what are
the methods used to get respondents and how research completed, and how results analyze on Stata or any
other software, such as SPSS or Smart PLS.
3.2. Research Method
Quantitative Method of research is used to gather realistic or respondent data from the air blue. All the
gathered data is authentic which are used in this research and it will be reliable for long period of time.
There are a lot of research methodologies are used to conduct research because this methods of research
are systematic way to solve problem and all information are gather through by data that is empirical (Yin,
2007).
3.3 Research Approach
Hakansson (2013) stated that the research approach is used for coming to conclusion and for
implementing what is right or what is wrong. Quantitative methods and primary data will be collected
from the air blue for conducting further study. In research for providing feasibility for moving from
general to specific deductive approach is used for concluding appropriate results. In deductive approach
hypothesis are constructed on theory, and the collection of data is done by survey and tested empirically.
Therefore, conclusion is obtained from premises in deductive approach (Goddard, 2004).

3.4 . Research Design
A case study is a research design and an empirical inquiry that investigates a phenomenon within its real-
life context. Case studies are based on an in-depth investigation of a single individual, group or event to
explore the causes of underlying principles. So, our research design is based on case study design as we
focused on a single organization i.e. air blue.
3.5. Sampling Technique
There are two type of sampling techniques are used for research purpose: Probability and Non-
Probability. In probability sampling sample frame is required for sampling and every individual has an
equal chance of being selected from population (Greener, 2008). This paper target huge population for
study, so it is not possible to make sample frame. Therefore, convenience sampling technique of Non-
Probability is used in this research to collect data in minimum time constraint.
3.6. Sampling Size
It is not easy to collect data from large group of people or objects; therefore, a sample is selected from the
population to collect data (Goddard, 2004). Sample size is a small portion that is taken from population
for the research. The number of respondents selected in the following study for conducting the research is
100 to 150 respondents.
3.7. Instrumentation
Questionnaire method is used to conduct this research for data collection .Instrument are designed and
arranged on 5-point likert scale. The likert scale helps researchers to gain the most accurate and error free
data according to their opinion. The questionnaires were adopted form different papers which are
following:

3.8. ResearchTool
SPSS statistic 20 or stata are used for getting final result and SPSS stands for statistical package for social
sciences and it is sort of software. Quantitative data and variable will run and save results file as SPSS
file. Like other software. Data entry sheets are similar like other software spread sheets. In SPSS data can
be organized through different variables by assigning properties.
3.9. Research Analysis
The research analysis is systemic way to examine and investigate the fact on any subject. The reason
behind for conducting research is to discover any new information which is not described in previous
researches (Rozakis et. al., 2007). The analysis techniques used in this study are discussed below:
3.10. Descriptive Analysis
By description analysis we can easily explain the major features of research through data collection.
Descriptive analysis provides easy and simple summaries for data measure and their sample. It is simple
research form and their information is much worthy for specific group of individual's nature (Best &
Kahn, 2003).
3.11. Reliability Analysis
Reliability analysis is described as complete consistency of measure like measurement of height and
weight is reliable in the extreme (Neil R. Carlson, 2009). In this study, through Cronbach’s alpha, the
reliability of the constructs was measured. Instrument’s internal consistency can be measured relevantly
by it. Moreover, biasness and errors can be reduced in the data set by it (Sekeran, 1992). The test of
homogeneity’s responses is also done by reliability analysis. Accepted standardized coefficient ranging is
between 0.6-0.70 while above 0.8 of standardized coefficient are accepted as good (Litwin, 1995; Salant,
Dillman, & Don, 1994).
3.12. Correlation Analysis
Correlation analysis is a kind of method to study the relationship between numerically based variables
and it is used by the researchers to prove any possible connections among them. When there is a
systematic change is found in one variable, the other variable is similarly affected and the systematic
change occurs in it which proves that correlation is present between these two variables. The correlation
is measured through Pearson’s coefficient “r”, ranges between +1 that shows the strong positive

correlation and -1 shows strong negative correlation while 0 on the scale shows that there is no correlation
(Bryman & Bell, 2003).
3.13. Regression Analysis
For the purpose of forecasting and prediction, the regression analysis is used. The process of regression
analysis is to estimate the relationships between variables including techniques to modeling and analyzing
many variables focusing on the relationship among one dependent and one or more independent variables.
We can also say that the regression analysis particularly estimate the response that is continuous, of
dependent variables (Bishop, 2006). In regression, there is at least one independent and one dependent
variable (Malhotra, 2010).

Chapter 4 Data Collection and Analysis
4.1. Secondary Data
One of best quality source of secondary data is (textbooks white papers, journal articles, and organization
reports will be used in secondary Data and theses already in the library of KIET city or main campus).
Textbooks will be used to recognize for common terms, research journals for deeper understanding about
the topic, and express relationship between components, organization reports will be used understand or
requirement and for fill the knowledge gap (it will be used only where it is necessary or that data that is
neither confidential or sensitive) (Saunders, 2008).
4.2. Complete Instrument
The questionnaire units are about 30 items that each measured the required variables.
The question adopted from exclusive research studies which are published. These are a
few name of journal Motivation and Work Performance by using Opu Stella (December 2008), Modeling
Employee Motivation and Performance by using Darren James Elding, Factors Affecting Perception on
Job Performance within the Kenya Financial Sector via Allison Wainaina (Summer 2014), Employee
Work Motivation and Discretionary work efforts by means of Roybn Joy Morris (December 2009),
Accessibility To Long-Term Finance by way of Godfrey Sekyewa (September 2009). The effect of
performance related pay on employees by Helena NdilimekeShilongo (July 2013). Likert Scale used
having 5-points describe like (Highly Agree, Highly Disagree, Neutral, Strongly Agree, Strongly
Disagree). Also check validity and reliability of these instruments on Stata/SPSS or other statics tool if
the value is more 0.70 it means our instruments are valid and we can use these instruments for our
research work or close to 0.70 is also accepted.
Part 1: Background Information
Dear Participants,
I am student of MS/Phil (HRM) at PAF (KIET), Karachi Main Campus. I am conducting a research on
“The Impact ofMotivation (Intrinsic and extrinsic Rewards) and moderating affect of organization
culture On Employee performance”. Kindly fill up this information and return. Any information
obtained for this purpose will be kept strictly confidential and will only be used for academic purpose.
Your cooperation will be highly appreciated in this regard.
Thank You!
Yours truly: Tariq Mehmood
INSTRUCTIONS:
The following information pertains to your personal background. Please complete each item
By ticking where appropriate.

1:1 State your department ______________________ 1:2 Email ________________ (Optional)
1:3 State your job title _______________________ 1:4 Contact No _______________ (Optional)
1:5 Age 20 -30 31-40 41-50 51 and above
1:6 Marital status Single Married Divorced Widowed
1:7 Level of Education School College University Other (specify) ______
1:8 what are your professional qualifications?B.Com MBA PhD
Engineer Others (specify) ________________
1:9 how long have you worked with the organization? Less than one year 1 – 5 years
6 – 10 years 10 years and above
1:10 what are your terms of service? Probationary Permanent and not pensionable
Contract Permanent and pensionable
1:11 What motivate you most at work Org Culture Flex Environment
Recognition Employee Performance Fringe benefits Salary
Part 2: Questionnaire
(Strongly Disagree=1, Disagree=2, Neutral=3, Agree=4, strongly agree=5)
Sr.
No
Instruments / Questionnaire Strongly
Disagree=1
Disagree=2 Neutral=3 Agree=4 Strongly
agree=5
1 Employee Performance is more
important for the motivation of
employees
2 Are you involved in decisions which
affect your performance at work
3 Your Manager communicates with you
frequently about your performance?
4 Do you get feedback of your evaluation?
5 Is there a fair consistent basis for
measuring performance and individual
contribution to business objectives?
6 Organization Culture is more important
for the motivation of employees
performance

7 In my organization, change is viewed as a
challenge and an opportunity
8 Organizational policies are reviewed
annually to assess effectiveness
9 Our HR department is creative in finding
new ways to attract top talent among
diverse groups
10 There is an openness to suggestions from
staff at all levels of the organization
11 Recognition is more important for the
motivation of employees performance
12 My boss recognizes the extra effort I put
at work
13 I receive prices and get recognized
because of my outstanding performance
14 Employees are given Gift certificates,
tickets for movies/concerts or any other
events in order to motivate them after
they have performed well
15 Your organization have institutional
mechanisms for appreciating employees
for their good work
16 Flex Environment is more important for
the motivation of employees performance
17 I am satisfy with the working condition
18 The operational environment is excellent
and secure
19 I have considerable opportunity for
independence and freedom in how I do
my job
20 My boss allows me to have my ability
fully utilize
21 Fringe Benefits is more important for the
22 Provide a substantial retirement benefits
programs for all employee
23 Rewards to staff for good quality work
24 There are Suitable insurance / Medical
facilities
25 The benefits such as rent, clothing and
fuel for heating increase the loyalty to the
organization and success at work?
26 Salary is more important for the
27 I am happy with my salary
28 Has a salary structure that clearly reflects
difference in people qualifications, skills
and performance
29 Salary matches with the responsibility

Scale reliability coefficient: 0.9074
Number of items in the scale: 6
Average interitem covariance: .3851228
Test scale = mean(unstandardized items)
. alpha OCMean RecMean FEMean FBMean SMean EPMean
EPMean 19 3.905263 .8573044 1.8 5
SMean 19 3.863158 .5459045 3 5
FBMean 19 4.294737 .5863955 2.6 5
FEMean 19 3.978947 .7969239 1.8 5
RecMean 19 3.536842 1.10162 1.2 5
OCMean 19 3.842105 .7073548 2.4 5
Variable Obs Mean Std. Dev. Min Max
. summarize OCMean RecMean FEMean FBMean SMean EPMean
and the level of satisfaction
30 I would be unwilling to work for a below
average wage even the job is pleasant
4.3. Validity of Instrument
The instrument and its scale is legal result from pilot checking out will finish that tool is reliable and
valid. Moreover researcher get statistics from fifteen respondent then checked the validity and
reliability of these instrument on Stata software, the Cornbach Alphais 0.9074 i.e. approaching 90% and
covariance is 0.3851228, if our value is above 0.70 which broadcasts the validity and reliability
of instrument (Joseph F. Hair, Jr., William C. Black, Barry J. Babin, Rolph E. Anderson, and
multivariate facts analysis 7th, 2009). The test run on Stata and screen shot is below.
4.4. Justification for the instrument and reliability test
All of questions / instruments adopted from exceptional studies research, or papers and
people are published in extraordinary studies magazine, their reliability and validity is greater than 0.90
so the researcher use these query in that studies to find out the higher results. And validity of
these devices checked on Stata these instruments are valid the value is 0.9074.
4.5. Model Summery

EPMean 19 0.0198 0.1263 6.89 0.0319
SMean 19 0.0713 0.5826 3.89 0.1432
FBMean 19 0.0235 0.0451 7.81 0.0201
FEMean 19 0.0530 0.0986 6.00 0.0497
RecMean 19 0.3381 0.7495 1.11 0.5731
OCMean 19 0.2504 0.6498 1.70 0.4268
Variable Obs Pr(Skewness) Pr(Kurtosis) adj chi2(2) Prob>chi2
joint
Skewness/Kurtosis tests for Normality
. sktest OCMean RecMean FEMean FBMean SMean EPMean
OCMean 0.7911 0.4013 0.5577 0.6561 0.7280 1.0000
RecMean 0.7533 0.6241 0.4948 0.7831 1.0000
FEMean 0.8068 0.6366 0.6655 1.0000
FBMean 0.6907 0.5565 1.0000
SMean 0.4598 1.0000
EPMean 1.0000
EPMean SMean FBMean FEMean RecMean OCMean
(obs=19)
. correlate EPMean SMean FBMean FEMean RecMean OCMean
4.6 Descriptive Statistics
For measuring the normality of data, Kurtosis and Skewness analysis was attempted. Table is
represented the results of normality that are summarized:
The above table shows that the highest Skewness (SK = 0.3381) is for recognition (Mean = 3.566842, SD
= 1.10162) and the lowest Skewness (SK = 0.0198) is for Employee performance (Mean = 3.905263, SD
= .8573044). The Kurtosis (KT = 0.7495) of recognition (Mean = 3.566842, SD 1.10162) is highest and
the Kurtosis (KT = 0.0451) of fringe benefits (Mean = 4.294737, SD = .5863955) is lowest. Hence, all the
variables of this study fulfill the needs of normality because they are within the range of ±3.5 (Flick,
2015)
4.7 Correlation Analysis
Correlation table shows that the correlation is highest (r = .8068) between employee performance and
fringe benefits. And the correlation is lowest (r =.4013) between wages / salary and organization culture.
Hence, this study shows that all the variables are distinguishing because the pairs of all variables are
within the ranges of .30 and .90. So, there is no issue with multi-co linearity.

_cons -.2809309 .9688848 -0.29 0.776 -2.374079 1.812218
SMean -.291991 .2726752 -1.07 0.304 -.88107 .2970879
FBMean .3825365 .2594856 1.47 0.164 -.178048 .9431209
FEMean .4015747 .2468841 1.63 0.128 -.1317859 .9349353
RecMean .1686044 .1855894 0.91 0.380 -.2323371 .5695459
OCMean .3844601 .2343166 1.64 0.125 -.1217502 .8906704
EPMean Coef. Std. Err. t P>|t| [95% Conf. Interval]
Total 13.2294737 18 .73497076 Root MSE = .43903
Adj R-squared = 0.7377
Residual 2.50571598 13 .192747383 R-squared = 0.8106
Model 10.7237577 5 2.14475154 Prob > F = 0.0002
F(5, 13) = 11.13
Source SS df MS Number of obs = 19
. regress EPMean OCMean RecMean FEMean FBMean SMean
_cons 2.165669 .256675 8.44 0.000 1.656999 2.674339
EPMean .4180734 .0661528 6.32 0.000 .2869741 .5491728
SMean Coef. Std. Err. t P>|t| [95% Conf. Interval]
Total 58.0967857 111 .523394466 Root MSE = .62247
Model 15.4754356 1 15.4754356 Prob > F = 0.0000
F(1, 110) = 39.94
. regress SMean EPMean
4.8 Regression Analysis
According to the multivariate analysis output the model summary is as R Square is 0.8106, Adjusted R
Square is 0.7377 and also the standard Error of the Estimate is about .43903. And there's significant
relationship between variables. In model summery if the value is bigger than 0.60 it means our model is
good in this study it is more then 0.7377 (73%) it means our whole model is affective because of limited
time and CONVID-19 limited respondent and also limited IVs could also be affecting the need results.
The overall model because of current situation flourishing
4.8.1. H1 Wages / salary and employee performance
Regression Analysis proved that the wages / salary have a positive effect on employee performance;
therefore, hypothesis 1 was supported. Table 4 represented the results that are summarized
R2
value is equals to .2664 and Adjusted R2
is equals to .2597. The ‘F’ value is 39.94 with p = 0 < 0.05.

_cons 1.365947 .2408655 5.67 0.000 .8886086 1.843286
EPMean .6685907 .0620782 10.77 0.000 .5455662 .7916152
FEMean Coef. Std. Err. t P>|t| [95% Conf. Interval]
Total 77.1110714 111 .694694337 Root MSE = .58413
Model 39.578423 1 39.578423 Prob > F = 0.0000
F(1, 110) = 116.00
. regress FEMean EPMean
_cons 2.540339 .2571364 9.88 0.000 2.030755 3.049923
EPMean .410123 .0662717 6.19 0.000 .278788 .541458
FBMean Coef. Std. Err. t P>|t| [95% Conf. Interval]
Total 57.6671429 111 .51952381 Root MSE = .62359
Model 14.8924445 1 14.8924445 Prob > F = 0.0000
F(1, 110) = 38.30
. regress FBMean EPMean
Through regression results, wages / salary explains 26.64% of the variance (Adjusted R2
= .2664, F =
39.94, p < 0.05) and employee performance (ß =. 4180, p < .05) was significantly related to employee
performance.
4.8.2. H2 Flexible environment and employee performance
H3 There is any positive effect of fringe benefit on employee performance
R2
Through regression results, flexible environment explains 51.33% of the variance (Adjusted R2
= .5088, F
= 116.00, p < 0.05) and employee performance (ß =. 6685, p < .05) was significantly related to employee
performance.
4.8.3. H3 Fringe benefits and employee performance
R2
Through regression results, fringe benefits explains 25.82% of the variance (Adjusted R2
= .2515, F =
performance.

_cons 1.342186 .3039305 4.42 0.000 .7398668 1.944505
EPMean .6403669 .078332 8.18 0.000 .4851313 .7956025
RecMean Coef. Std. Err. t P>|t| [95% Conf. Interval]
Total 96.0671429 111 .865469755 Root MSE = .73707
Model 36.3074313 1 36.3074313 Prob > F = 0.0000
F(1, 110) = 66.83
. regress RecMean EPMean
_cons 1.845996 .3477328 5.31 0.000 1.156871 2.535121
SMean .5551942 .09119 6.09 0.000 .374477 .7359115
OCMean Coef. Std. Err. t P>|t| [95% Conf. Interval]
Total 71.05 111 .64009009 Root MSE = .69506
Model 17.9077898 1 17.9077898 Prob > F = 0.0000
F(1, 110) = 37.07
. regress OCMean SMean
4.8.4. H4 Recognition / praise and employee performance
H5 There is any positive effect of organization culture on wages / salary
R2
Through regression results, recognition explains 37.79% of the variance (Adjusted R2
= .53723, F =
performance.
4.8.5. H5 Organization Culture and Wages
R2
Through regression results, Organization culture explains 25.20% of the variance (Adjusted R2
= .2452, F
= 37.07, p < 0.05) and wages / salary (ß =. 5551, p < .05) was significantly related to organization culture

_cons 1.758978 .2966441 5.93 0.000 1.171099 2.346857
FEMean .5566646 .0745607 7.47 0.000 .4089027 .7044264
Total 71.05 111 .64009009 Root MSE = .65474
Model 23.8948259 1 23.8948259 Prob > F = 0.0000
F(1, 110) = 55.74
. regress OCMean FEMean
_cons 1.509032 .3719819 4.06 0.000 .7718513 2.246213
FBMean .5908044 .0895961 6.59 0.000 .4132459 .7683628
Total 71.05 111 .64009009 Root MSE = .68038
Model 20.1287049 1 20.1287049 Prob > F = 0.0000
F(1, 110) = 43.48
. regress OCMean FBMean
4.8.6. H6 Organization Culture and flexible environment
R2
= .3303, F
= 55.74, p < 0.05) and flexible environment (ß =. 55661, p < .05) was significantly related to organization
culture
4.8.7. H7 Organization Culture and fringe benefits
R2
= .2768, F
= 43.48, p < 0.05) and fringe benefits (ß =. 5908, p < .05) was significantly related to organization culture

_cons 1.687765 .229338 7.36 0.000 1.23327 2.142259
RecMean .5948964 .0592134 10.05 0.000 .4775493 .7122435
Total 71.05 111 .64009009 Root MSE = .58037
Model 33.9983308 1 33.9983308 Prob > F = 0.0000
F(1, 110) = 100.94
. regress OCMean RecMean
4.8.8. H8 Organization Culture and recognition
R2
= .4738, F
= 100.94, p < 0.05) and recognition (ß =. 5908, p < .05) was significantly related to organization culture

Chapter 5 Conclusion
5.1 Introduction
This study was conducted to find the Moderating effect of organization culture on the relationship
between Motivation (Intrinsic and extrinsic Rewards) and On Employee performance and to find out what
are some of the factors that might influence it. An organization’s profitability is largely dependent upon
how its employees perform on the job. The profitability of business depends on performance, productivity
or greater output from their employees. For this reason employees motivation, satisfaction and
organization culture are important parameter.
There are many variables of motivation factors but in this study the independent variables were salary,
flexible environment, fringe benefits, organization culture, and recognition due to time limited we are
choosing some variables and dependable variable is employee performance. Regression was used in this
study due to see the impact the software used to examine in this study is STATA
5.2 Limitations and Future Research Directions
This study had several limitations. The current research was conducted in the Karachi Pakistan air blue
context, so that future research will focus on different industries and other countries (for instance, with a
longer tradition in culture issues) so the current findings are to be generalized here. This study has proved
the relationship between the variables of interest, hence not focusing on other antecedents and
consequences. There is still a need to explore other mediating or moderating variables. Also, here
organization culture is used as a moderator between motivation factors (Intrinsic and extrinsic Rewards)
and employee performance, this research highlights the importance to keep focusing into the development
of organization culture. This research approach is limited to quantitative approach hence future research
will include qualitative or mixed research as well. Case study research design method is used. Well, in
future research comparative or cross sectional research design will be used. Instrument consists of 5 items
it means one variable involves 5 questions that included close ended questions. In future research might
be possible there are more than 5 questions of one variable. In population part, non-probability
(convenience sampling) is to be considered for this research. Hence, in future research study probability
sampling can be used.
5.3 Theoretical Implications
This study presents four additional theoretical contributions to academic literature in the airline industry.
First, this research follows a holistic approach by combining two perspectives, (1) relationship
motivation, (2) moderator organization culture and (3) employee performance. Nevertheless, this study
expands previous studies on motivation, organization culture and employee performance by including

relationship construct as moderating variable. This study demonstrates that motivation overall positively
influence on employee performance and organization culture but also green trust has a moderating effect.
This study provides empirical evidence that organization culture moderate the relationship between
motivation and employee performance. These results reveal the relevance of environmental issues in
today´s business context and the need for airlines companies to include them into their management
strategies and policies. The findings demonstrate that motivation issues are a key strategic tool, given its
essential role in building not only productivity also increase the employee performance.
5.4 Practical Implications
It has been proved by collecting the data and running it on SPSS/stata that organization culture has the
moderating effect on the relation between motivation and employee performance. Organization should
focus on dove-tailing their HR Policies, procedure or SOPs to enhance employees’ performance on the
job in the organization, as it is imperative that their performance is affected by salary, flexible
environment, fringe benefits, organization culture, and recognition..
5.5 Conclusion
According to the multivariate analysis output the model summary is as R Square is .5664, Adjusted R
Square is .5459 and also the standard Error of the Estimate is about 0.60183. And there's significant
relationship between variables.
The independent variables show that there is a positive relation with employee performance. A high
correlation between variables is like, high correlation between variables is like a fringe benefit with
employee performance is .716, Employee Performance & Recognition 0.6149; Employee Performance &
Organization Culture 0.5659, Salary and Employee Performance 0.5161, Flex Environment and
Employee performance 0.5082 almost all variable have correlate on each other
5.6. Limitation of the study
Due to limited time and CONVID-19 limited respondent and also limited IVs were used. These might
have affected the results. That could have led to some different conclusion. Overall model is good in spite
of current situation. One more thing respondent are avoiding to take paper questionnaire due to situation
of CONVID-19 other option are tele-phonic, social media and online. So we tried our best and get 112
numbers of respondents these are just enough if we have some time and lockdown issue may be we can
get our targeted population.

5.7. Suggestions for Future Work
The study could be further augmented using a larger sample from a variety of different organizations from
the same industry like air line. The study could also be replicated in other organizations and in other
industries.

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