The Impact of Financial and Non-financial Measures on Employee Motivation to Participate in Organization’s Target Setting (Case Study: Telecommunication Infrastructure Company TIC)

Azadeh Heshmati, Seyed Reza Hashemi, Zohreh Nargesi Khoram


Human resource is one of the most important production factors in organizations which can be managed in order to realize organizational goals and provide a background for the growth and development of an organization. Therefore, this production resource (human resource) is much more important than other resources. Through the effective and efficient use of this production resource, managers of governmental or private organizations and institutions can accomplish their goals. To that end, managers should have adequate familiarity with their human resources and understand their needs and personal characteristics in order to use this information to motivate their employees to improve their performance and subsequently increase the organization’s productivity. In this regard, reward is an effective mechanism which can help achieve this goal. The purpose of the present research is to study the effects of financial and nonfinancial measures on employee motivation to participate in target setting. The present research examines six hypotheses. As far as the study of variables is concerned, this research uses a descriptive-survey design; and by purpose, it is an applied study. The statistical population is comprised of employees of the Telecommunication Infrastructure Company (TIC) in Tehran and Kermanshah provinces.The timeframe in this study is the months of March to September 2015. The present study uses stratified sampling method through which 334 employees are selected as sample members using Cochran’s formula. The data analysis and hypothesis examination is carried out using Confirmative Factor Analysis by the AMOS software Ver.22. Considering the obtained results, financial and nonfinancial performance evaluation measures have a positive and significant impact on employees’ intrinsic and extrinsic motivation to participate in organization; also, both intrinsic and extrinsic motivations have positive and significant impacts on job performance.


financial measures, non-financial measures, intrinsic motivation, extrinsic motivation, job performance

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