The effects of reward equity on employee innovation in South Africa.
Date
2016
Authors
Perosino, Riccardo Francesco
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Abstract
South Africa is currently plagued with low growth and high unemployment. The
burden of corrective action now rests with business and government, where
growth prospects can be expanded through the support of innovation and the
exploration of new opportunities. Recently, innovation and the various
determinants of innovation have received significant media attention and
although every organisation has its own priorities, a consistent trend emerges
surrounding the failure of businesses that neglect innovation.
Individuals and businesses understand the constant need for innovation and this
study analysed an important determinant of innovation and determined the
impact that reward equity has on innovation. Understanding the effects of reward
equity on employee innovation will provide for organisational awareness with
respect to establishing and maintaining innovation in the workplace.
Using quantitative techniques, this study identified and analysed the association
between employee perceptions of reward equity and their relative contributions
toward innovation in their organisations as well as their innovative work
behaviour. The study used data collected through a fully structured web-based
self-administered survey distributed across different industries.
Key findings included the identification of an association between employee
engagement and innovation as well as the consistent association between female
gender and increased innovative involvement and innovative behaviour. The
results however, did not display a strong association between reward equity and
innovation involvement or innovative work behaviour.
Employee participation in innovation and innovative behaviours can be attributed
to many variables and the variables included in this research only accounted for
a small proportion of the variance in the innovation variable.
The study concludes that in order for an organisation to foster a creative climate
and encourage innovation, it is necessary to ensure that employees are engaged
in their work and focussed on innovation.
Description
MBA
Keywords
Incentives in industry -- South Africa. Employee motivation -- South Africa. Organizational behavior -- South Africa.