The Impact of Awards on Intrinsic Motivation and Job Satisfaction of Multi-Level Marketing Members in Riau Islands Province, Indonesia

https://doi.org/10.56225/ijfeb.v2i2.211

Authors

  • Robin Robin Faculty of Economics, Batam University, Riau Province, Indonesia
  • Fendi Hidayat Faculty of Economics, Batam University, Riau Province, Indonesia
  • Chablullah Wibisono Faculty of Economics, Batam University, Riau Province, Indonesia
  • Indrayani Indrayani Faculty of Economics, Batam University, Riau Province, Indonesia
  • Muammar Khaddafi Faculty of Economics, Batam University, Riau Province, Indonesia

Keywords:

intrinsic and extrinsic non-financial awards, extrinsic financial award, intrinsic motivation, job satisfaction

Abstract

Facts from the Multi-Level Marketing (MLM) industry show that people often change companies, 90% of distributors are dissatisfied and frustrated, and only last up to 3 months before quitting MLM. Reward management is the main strategy to create a motivated and committed work team. This study examines the impact of rewards on intrinsic motivation and job satisfaction in MLM members, where the incidental sample method is chosen. A total of 140 samples participated in this study. The data were analyzed using descriptive statistics and Structural Equation Modelling (SEM)–Analysis of Moment Structure (AMOS). The result indicates that intrinsic and extrinsic non-financial rewards significantly positively affect intrinsic motivation. Also, this study found that intrinsic motivation, intrinsic non-financial rewards, and extrinsic financial rewards significantly and positively affect job satisfaction. Besides that, the extrinsic non-financial reward does not affect job satisfaction. In conclusion, this study has successfully identified the factors influencing motivation and job satisfaction.

Downloads

Download data is not yet available.

References

Aggarwal, B., & Kumar, D. (2014). Multi Level Marketing–Problems & Solutions. International Journal of Research, 1(6), 76–82.

Ahyar, L. F., Suyanto, S., & Arifianto, A. (2020). Firefly algorithm-based hyperparameters setting of DRNN for Weather Prediction. 2020 International Conference on Data Science and Its Applications, 1–5.

Baumeister, R. F. (2007). Encyclopedia of social psychology. SAGE Publications Inc. https://doi.org/10.4135/9781412956253

Brewster, C., & Fager, J. (2000). Increasing student engagement and motivation: From time-on-task to homework. Northwest Regional Educational Laboratory: Vol. By Request.

Eisenberger, R., Pierce, W. D., & Cameron, J. (1999). Effects of reward on intrinsic motivation—Negative, neutral, and positive: Comment on Deci, Koestner, and Ryan (1999). Psychological Bulletin, 125(6), 677–691. https://doi.org/10.1037/0033-2909.125.6.677

Elliot, A. J., Faler, J., McGregor, H. A., Campbell, W. K., Sedikides, C., & Harackiewicz, J. M. (2000). Competence valuation as a strategic intrinsic motivation process. Personality and Social Psychology Bulletin, 26(7), 780–794. https://doi.org/10.1177/0146167200269004

Fang, M., Gerhart, B., & Ledford Jr, G. E. (2013). Negative effects of extrinsic rewards on intrinsic motivation: More smoke than fire. World at Work Quarterly, 16(2), 17–29.

Frey, B. S., & Jegen, R. (2000). Motivation Crowding Theory: A Survey of Empirical Evidence. In Working paper series/Institute for Empirical Research in Economics (Issue 49). University of Zurich. https://doi.org/10.2139/ssrn.203330

Judge, T. A., Parker, S., Colbert, A. E., Heller, D., & Ilies, R. (2001). Job satisfaction: A cross-cultural review. In Handbook of industrial, work and organizational psychology (Vol. 2, pp. 25–52).

Koroth, A. A., & Sarada, A. K. (2012). Significance of Relationship in Multi-level Marketing and its effect on Business Outcome. Journal of Business and Management, 3(6), 26–36. https://doi.org/10.9790/487x-0362636

Luthans, F., & Youssef, C. M. (2007). Emerging positive organizational behavior. Journal of Management, 33(3), 321–349.

Margono, S. (2004). ADR alternative dispute resolution: Arbitrase proses pelembagaan dan aspek hukum. Ghalia Indonesia.

Muzakki, M. H., Susilo, H., & Yuniarto, S. R. (2016). Pengaruh Penggunaan Teknologi Informasi Terhadap Kinerja Karyawan (Studi Pada Karyawan PT. TELKOM Pusat Divisi Regional V Surabaya). Jurnal Administrasi Bisnis (JAB), 39(2), 169–175.

Nujjoo, A., & Meyer, I. (2012). The relative importance of different types of rewards for employee motivation and commitment in South Africa. SA Journal of Human Resource Management, 10(2), 1–10. https://doi.org/10.4102/sajhrm.v10i2.442

Pierce, W. D., Cameron, J., Banko, K. M., & So, S. (2003). Positive effects of rewards and performance standards on intrinsic motivation. The Psychological Record, 53(4), 561–578. https://doi.org/10.1007/bf03395453

Pratheepkanth, P. (2011). Reward system and its impact on employee motivation in commercial bank of sri lanka plc, in jaffna district. Global Journal of Management and Business Research, 11(4), 84–92.

Purnomo, J. (2012). Political Corruption as an Expression of Political Alienation: the Rampant Political Corruption During the Decline of State'Ideal Role. Interaktif, 4(2), 243089.

Ryan, R. M., & Deci, E. L. (2000). Intrinsic and extrinsic motivations: Classic definitions and new directions. Contemporary Educational Psychology, 25(1), 54–67.

Ryan, R. M., Mims, V., & Koestner, R. (1983). Relation of reward contingency and interpersonal context to intrinsic motivation: A review and test using cognitive evaluation theory. Journal of Personality and Social Psychology, 45(4), 736–750. https://doi.org/10.1037/0022-3514.45.4.736

Siregar, S. H., Mulyadi, A., & Hasibuan, O. J. (2008). Struktur komunitas diatom epilitik (Bacillariophyceae) pada lambung kapal di Perairan Dumai Provinsi Riau. Jurnal Ilmu Lingkungan, 2(2), 33–47. https://doi.org/10.31258/jil.2.2.p.33-47

Wiley, C. (1997). What motivates employees according to over 40 years of motivation surveys. International Journal of Manpower, 18(3), 263–280. https://doi.org/10.1108/01437729710169373

Yuliani, Y., Zain, D. Z., Sudarma, M. S., & Solimun, S. M. (2012). Diversification, Investment Opportunity Set, Envinronmental Dynamics and Firm Value (Empirical Study of Manufacturing Sectors in Indonesia Stock Exchange). Journal of Business and Management, 6(4), 1–15. https://doi.org/10.9790/487x-0640115

Downloads

Published

2023-06-30

How to Cite

Robin, R., Hidayat, F., Wibisono, C. ., Indrayani , I. ., & Khaddafi, M. (2023). The Impact of Awards on Intrinsic Motivation and Job Satisfaction of Multi-Level Marketing Members in Riau Islands Province, Indonesia. International Journal of Finance, Economics and Business, 2(2), 142–149. https://doi.org/10.56225/ijfeb.v2i2.211

Issue

Vol. 2 No. 2 (2023): June 2023

Section

Articles

License

Copyright (c) 2023 Authors

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright @2022. This is an open-access article distributed under the terms of the Creative Commons Attribution 4.0 International License (https://creativecommons.org/licenses/by/4.0/) which permits unrestricted to copy and redistribute the material in any medium or format, remix, transform, and build upon the material for any purpose, even commercially.


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.