The Impact Of Monetary And Non- Monetary Incentives On The Performance Of Employees In The Government Hospitals In Al Ahsa Region

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1 The Impact Of Monetary And Non- Monetary Incentives On The Performance Of Employees In The Government Hospitals In Al Ahsa Region Dr.Vimala Venugopal Associate Professor, King Faisal University Al Ahsa & Eman Al Hassan MBA student, King Faisal University, Al Ahsa ABSTRACT Organizations are constantly searching for ways to create an environment that is motivating, where associates work at an optimal level to accomplish company objectives. Monetary and non-monetary incentives do work well to motivate associates of any organization. Both monetary and non-monetary incentives vary in their roles, effectiveness, and appropriateness, depending on the type of incentive. This paper examines the impact of monetary and non- monetary incentives on the performance of employees in the government hospitals in Al Ahsa Region. The objectives of this study were to, first, identify the most important monetary and moral incentives offered to employees in the government hospitals in Al Ahsa region, and, second, to determine the effect of monetary and moral incentives on the performance of the mentioned employees. In order to achieve these objectives, a survey was conducted. The target population consisted of employees in five government hospitals and two PHC centers in Al Ahsa. 127 employees participated in the study. Data was analyzed with SPSS 19. Frequencies, means, standard deviation, Chi square, Independent sample T-test, and One Way ANOVA were used to identify the characteristics of the sample and to test the hypotheses of the study. The results indicate that there is a significant relationship between the incentives that the employees receive and their performance. Based on the study s results, several recommendations have been suggested towards the end of the paper. Key words: Monetary incentive, Non monetary incentive, effectiveness, performance Introduction The issue of incentives has occupied the attention of researchers and managers for a long time. In their studies, they often link incentives with an employee or organization performance. The result of the research does confirm the importance of incentives in improving the performance of employees. As organizations essentially depend on manpower to achieve their short and long objectives, as well as grow and survive, successful planning for their employees incentive scheme should be guaranteed. Fair incentives thus are used as tools by which organizations can continuously motivate their employees to work professionally and effectively. Often, Saudi employees are attracted to government organizations for two primary reasons: A substantial salary, and the worker benefits, such as housing, transportation, medical allowance, and pension or retirement allocation. This study will look explore some of the monetary and moral incentives often provided to employees, and will verify the impact of these incentives on the performance of employees in the government hospitals of the Al Ahsa region in Saudi Arabia. > RJCBS: Volume: 04, Number: 12, October-2015 Page 1

2 Importance of study The scientific value of the study lies in its ability to trace the effects of incentives in directing the efforts of employees, and in enhancing their overall performance. With reference to its practical value, it lays out a series of results and recommendations that can aid in the continuation or modification of the incentives scheme in the government hospitals of Saudi Arabia. Research Questions The overarching questions that this study aims to answer are: 1. What are the most important monetary incentives that can be offered to employees in the government hospitals in the Al Ahsa region? 2. What is the effect of monetary incentives in improving the performance of employees in the government hospitals in the Al Ahsa region? 3. What are the non-monetary (moral) incentives that can be offered to workers in the government hospitals in the Al Ahsa region? 4. What is the impact of non-monetary (moral) incentives in improving the performance of employees in the government hospitals in the Al Ahsa region? 5. Is there a statistically significant difference between the responses of the respondents about the research questions due to demographic variables (Age, Gender, Qualifications, and Employer Years of Experience)? Statement of Problem Lack of monetary and moral incentives can adversely affect the performance of employees and contribute to lowering their productivity. Accordingly, this will contribute to reducing the opportunity of organizations in achieving their desired goals. The research s problem statement is intended to highlight the importance of incentives, generally, in raising the performance level of employees. Research objectives 1. Identify the most important monetary incentives offered to employees in the government hospitals in the Al Ahsa region. 2. Determine the effect of monetary incentives on the performance of employees who work in the government hospitals in the Al Ahsa region. 3. Identify the most important moral incentives offered to employees in the government hospitals in the Al Ahsa region. 4. Determine the effect of moral incentives on the performance of employees who work in the government hospitals in the Al Ahsa region. Research hypotheses There is a significant relationship between the monetary incentives that employees receive and their performance in the government hospitals in the Al Ahsa region. There is a significant relationship between the moral incentives that employees receive and their performance in the government hospitals in the Al Ahsa Region. There is a statistically significant difference between the responses of the respondents about the research questions due to demographic variables (Age, Gender, Marital Status, Qualifications, and Employer Years of Experience). > RJCBS: Volume: 04, Number: 12, October-2015 Page 2

3 Theoretical framework Motivation is concerned with the strength and direction of behavior, and the factors that influence people to behave in certain ways. People are usually motivated when they expect that a course of action will lead to the attainment of a goal or valued reward one which satisfies their needs and wants (Armstrong 2014). Motivation can hence be conceived as a kind of internal energy that compels a person to achieve an end (Provitera 2012). According to the Oxford dictionary (1995), an incentive is a means to motivate or encourage a person to do something. Incentives, then, utilize a total compensation approach that includes both pecuniary (that is, base salary and bonuses, besides more) and non-pecuniary (for example, organizational culture and brand) incentives (Sesil 2013). Individuals feel that their work is important, interesting, and challenging. Further, it provides them with a reasonable degree of autonomy (freedom to act), opportunities to achieve and advance, and scope to use and develop their skills and abilities. In a sense, one may look at it as motivation brought about through work itself, rather than by any external incentives. Extrinsic motivation occurs when things are done to or for people in order to motivate them. These include rewards There are two types of extrinsic incentives: Financial rewards and non-financial rewards. Financial or monetary incentives come in many forms, but usually include commissions, bonuses, and profit sharing (Axzo Press LLC 2002). Non-financial or moral incentives focus on the needs that most people have for achievement, recognition, responsibility, influence, and personal growth (Armstrong 2011). Incentives are of course important for keeping employees satisfied, increase their productivity, and improve organizational performance. Tracy (2014) mentions in his book Motivation that motivating employees assists in achieving both the employees and the organization in a number of ways. They include: Satisfying the financial and moral needs of workers Increasing the production quantity and quality of workers Increasing workers loyalty to their organizations Developing the spirit of cooperation among employees within the organization Reducing the workers fear of failure and increasing their desire to try Money, as a financial incentive is important primarily because it can satisfy employees basic needs, as they may use it to facilitate their immediate and long-term needs. Furthermore, employees who receive money from their organizations as a motivator, feel that they are fairly treated. Thus, besides being a tangible method of recognizing achievement, money is a way to attract people to join an organization (Armstrong 2011). Government hospitals in Al Ahsa Region: The province of Al-Ahsa contains a number of government and private hospitals. Establishing government hospitals in Saudi Arabia started in 1925 following a royal decree by King Abdulaziz Al Saud. These hospitals are meant to be responsible for providing free healthcare for Saudi citizens. As of today, there are eight government hospital and around 60 Primary Health Care Centers in Al Ahsa. LITERATURE REVIEW Hameed, Maqbool, Athar, S. Ijaz and Ul-Hassan (2013) in their study Investigating the Impact of Incentive motivators and Organization-Based Self-Esteem in a Pakistani Perspective investigated the > RJCBS: Volume: 04, Number: 12, October-2015 Page 3

4 impact of Incentive Motivators and Organization-Based Self-Esteem on employee performance. The study was examined in the private banking sector in Pakistan. It revealed that there was a positive relationship between motivators and employee performance. Al Sagha (2013) investigated the effect of incentives on employees performance in the Bank of Palestine, Gaza. The study reveals that monetary and moral incentives and rewards motivate employees and increase their productivity although the system of providing moral incentives to the employees needs to be modified. Al-Nsour (2012) Relationship between Incentives and Organizational Performance for Employee The study was conducted in the Jordanian university. It investigated the impact of financial and moral incentives on organization performance. Results show that sufficient levels of financial and moral incentives are provided to employees in the Jordanian universities. The research reveals that there is a relationship between financial and moral incentives and employee performance and that there is a relationship between incentives and customer satisfaction. It also shows that unlike the financial incentives, the moral incentives have an effect on learning and growth. Depedri, Tortia, Carpita s (2010) Incentives, Job Satisfaction and Performance: Empirical Evidence in Italian Social Enterprises analyzes the relationship between worker well-being, worker motivations and employee satisfaction and performance in the Italian social service sector. Results show that employee satisfaction and performance are greatly influenced by motivation and worker well-being. METHODOLOGY Research Design is the blue print for fulfilling objectives and answering questions. In this study, descriptive research design is used. It is meant to discover answers to research questions; what are the monetary and moral incentives that are provided in the government hospitals in Al Ahsa? And how do they affect the performance of the employees at these hospitals? Sampling is the process of selecting some elements from the population to represent that population. In this study, probability sampling was used. The researcher used Stratified Random Sampling Technique which is a probability sampling that includes elements from each of the mutually exclusive strata within the selected population (government hospitals in Al Ahsa area). Four out of eight government hospitals and two out of 60 primary health care centers in Al Ahsa have been selected: King Abdulaziz Hospital: King Abdulaziz Hospital in Al Ahsa was founded in It provides National Guard personnel and their eligible dependents with the highest quality of primary, secondary and tertiary healthcare services. The hospital has a 300 bed-capacity and can accommodate up to 400 beds. King Fahad Hospital: The main government hospital in the Province of Al Ahsa. It has a 502 bed-capacity Maternity and Children Hospital: It provides health care exclusively to pregnant women and children. It has a 500 bed-capacity Al Oyun Hospital: The main government hospital in Al Oyoun. It has a 200 bed-capacity. Faisaliah PHC and North Mubarraz PHC. Scaling and data collection: This study instrument is a web survey, designed on Google Docs where a five point Likert scale was used. This scale asks a rater to agree or disagree with statements that express either favorable or unfavorable > RJCBS: Volume: 04, Number: 12, October-2015 Page 4

5 attitudes towards variables. The strength of the attitude is reflected in the assigned score. The web survey was considered to collect primary data. It is based on the theoretical literature of incentives and employee performance. It consists of two parts. The first part deals with the respondent s personal information (age, gender, marital status, qualifications and years of experience), and the second part was devoted to measure the independent and dependent variables: 1. The monetary incentives that are offered to employees in government hospitals in Al Ahsa Region 2. The effect of monetary incentives in improving the performance of employees in the government hospitals in Al Ahsa Region 3. The moral incentives that are offered to workers in the government hospitals in Al Ahsa Region 4. The impact of the moral incentives in improving the performance of employees in government hospitals in Al Ahsa Region The questions of the survey are closed questions, which require closed responses. Secondary data is collected from books, websites, online journals, and magazines. Validity and Reliability: The research supervisor to verify its validity reviewed the questionnaire. Based on her feedback, the questionnaire was modified. Cronbach's α (alpha) was used to measure the reliability of all variables. Cronbach s 1: The monetary incentives that are offered to employees in N No. of items Alpha the government hospitals in Al Ahsa Region : The effect of monetary incentives in improving the performance of employees in the government hospitals in Al Ahsa Region 3: The moral incentives that are offered to employees in the government hospitals in Al Ahsa Region : The effect of moral incentives in improving the performance of employees in the government hospitals in Al Ahsa Region Table (2) values of Cronbach s Alpha The values of Cronbach s Alpha are acceptable as they are all above 0.7 which is the acceptable value for measurement scales. Population and sample size: The researcher distributed 200 surveys but received only 127 surveys. Statistical package for Social Science (SPSS) was used to analyze the study questions and hypotheses. > RJCBS: Volume: 04, Number: 12, October-2015 Page 5

6 Analytical Procedures 1. Frequencies and percentages to identify the characteristics of the study sample 2. Mean, standard deviations, Chi square, Independent sample T- test, and One Way ANOVA to answer the research questions and to test the hypotheses of the study FINDINGS AND DISCUSSION The following tables show the frequencies and percentages used to identify the characteristics of the study sample Age Frequency Percent Valid Percent or older Under Total Table (4) Distribution of participants according to age variable Gender Frequency Percent Valid Percent Female Male Total Table (5) Distribution of participants according to Gender variable Marital Status Frequency Percent Valid Percent Married Single Total Table (6) Distribution of participants according to Marital Status variable Qualifications > RJCBS: Volume: 04, Number: 12, October-2015 Page 6

7 Frequency Percent Valid Percent Bachelor Diploma Doctorate High school Master Total Table (7) Distribution of participants according to Qualifications variable Years of Experience Frequency Percent Valid Percent 11 Y-15 Y Y-20 Y Y- 10Y Less than 5 years More than 20 years Total Table (8) Distribution of participants according to Years of experience variable Tables (9 and 10) show the respondents opinions regarding the relationship between the monetary incentives that employees receive and their performance levels. H0 = There is no significant relationship between the monetary incentives that employees receive and their performance levels. H1 = There is a significant relationship between the monetary incentives that employees receive and their performance levels. Table (9) shows the frequencies, the means, the standard deviations, Chi-square and significant values of the participants responses to the first question (What are the most important monetary incentives that can be offered to employees in the government hospitals in Al Ahsa Region?). Significant level = The respondents have a neutral response towards this question as the total mean value for the responses is > RJCBS: Volume: 04, Number: 12, October-2015 Page 7

8 (3.34) which is positioned in the third category of the five point Likert scale (Neutral scale). The researcher refers this result to either of the following reasons: Respondents do not have enough information to for an opinion for this question Respondents fear that the information they provide will be used inappropriately From the schedule, the chi- square values of all paragraphs are between and with calculated values less than The table shows that there is a variation in the responses of the first question. The mean values of the paragraphs are between (3.99 and 2.66) which are located in the Agree and Neutral scales. Respondents agreed that the following five monetary incentives are provided to them. The incentives are arranged in descending order, based on the mean value given to each paragraph: Housing allowance takes the first place of the monetary incentives that are provided, with a mean (3.99 out of 5) Transportation allowance takes the second place with a mean value (3.98 out of 5) Paid leave takes the third place with a mean value (3.98 out of 5) Official leave day takes the fourth place with a mean (3.94 out of 5) Health insurance takes the fifth place with a mean (3.75 out of 5). Table (10) shows the frequencies, the means, the standard deviations, Chi-square and significant values of the participants responses to the second question (What is the effect of monetary incentives in improving the performance of employees in the government hospitals in Al Ahsa Region?). The total mean value for the responses to this question is (4.12) which is positioned in the fourth category of the five point Likert scale, (Agree scale- between 4.19 and 3.40). From the schedule, the chi- square values of all paragraphs are greater than the table value= 9.49 (between and ) with calculated values less than So, the null hypothesis is rejected, and the contrary hypothesis is accepted. There is a significant relationship between the monetary incentives that employees receive and their performance levels in the government hospitals in Al Ahsa Region The table shows that there is a variation in the responses of the first question. The mean values of the paragraphs are between (4.24and 3.89) which are located in the strongly agree and agree scales. The effects are arranged in descending order, based on the mean values given to each paragraph: Respondents strongly agreed on the following two paragraphs: Encourage employees to protect organization reputation takes the first place with a mean (4.24 out of 5) Encourage employees to perform their work effectively takes the second place with a mean (4.22 out of 5). > RJCBS: Volume: 04, Number: 12, October-2015 Page 8

9 SN Order Strongly Q1: Monetary incentives disagree Disagree Neutral Agree Strongly agree Std Mean Devia 1 2 Transportation allowance Count % 4.7% 7.9% 7.9% 43.3% 36.2% Housing Allowance Count % 9.4% 3.1% 6.3% 40.9% 40.2% Per diem allowance Count % 29.1% 18.9% 11.8% 20.5% 19.7% Acting allowance Count % 26.8% 22.0% 12.6% 17.3% 21.3% 5 13 Work risk Count % 36.2% 13.4% 9.4% 20.5% 20.5% Health insurance Count % 17.3%.8% 7.9% 37.8% 36.2% Bonuses Count % 29.9% 13.4% 13.4% 18.1% 25.2% Employee of M/Y award Count % 21.3% 7.1% 18.1% 29.9% 23.6% Official leave days Count % 6.3% 3.9% 10.2% 48.8% 30.7% > RJCBS: Volume: 04, Number: 12, October-2015 Page 9

10 10 9 Promotion Count % 31.5% 11.8% 11.8% 19.7% 25.2% Scholarship Count % 38.6% 10.2% 15.7% 17.3% 18.1% Paid leave Count % 9.4% 3.1% 7.1% 40.9% 39.4% Payment of unused leaves Count % 12.6% 6.3% 18.9% 30.7% 31.5% Retirement compensation Count % 22.0% 7.9% 16.5% 29.9% 23.6% TOTAL 3.34 Table (9) Responses of participants to the most important monetary incentives that are provided to employees in Al Ahsa Gov. hospitals > RJCBS: Volume: 04, Number: 12, October-2015 Page 10

11 SN Order Strongly Q2: Effect of monetary Strongly incentives on performance disagree Disagree Neutral Agree agree Mean 1 6 Improve professional knowledge and Count job skills % 3.9% 6.3% 5.5% 41.7% 42.5% Improve quality of work Count % 3.9% 6.3% 5.5% 36.2% 48.0% 3 8 Increase responsibility and Count commitment % 4.7% 3.1% 11.0% 39.4% 41.7% Increase employees shift work Count tolerance % 4.7% 9.4% 11.0% 41.7% 33.1% Encourage employees to try new ways Count for doing their job % 2.4% 6.3% 10.2% 43.3% 37.8% Encourage employees to perform their Count work effectively %.8% 3.9% 11.8% 39.4% 44.1% Encourage employees to perform their Count work quickly %.8% 3.9% 13.4% 42.5% 39.4% Encourage employees to provide good Count patient s service % 2.4% 4.7% 15.7% 37.0% 40.2% Encourage employees to comply with Count the org. policy & > RJCBS: Volume: 04, Number: 12, October-2015 Page 11

12 procedures %.8% 7.1% 9.4% 39.4% 43.3% Encourage employees to protect Count organization reputation %.8% 3.9% 13.4% 34.6% 47.2% Build sense of belonging and loyalty to Count the organization % 3.1% 3.9% 11.0% 41.7% 40.2% TOTAL Table (10) Responses of participants to the effect of monetary incentives on the performance of employees in Al Ahsa Gov. hospitals. H0 = There is no significant relationship between the moral incentives that employees receive and their performance levels. H1 = There is a significant relationship between the moral incentives that employees receive and their performance levels. What are the most important moral incentives that can be offered to employees in the government hospitals in Al Ahsa Region? Significant level = The respondents are neutral toward this question as the total mean value for the responses is (3.24) which is positioned in the third category of the five point Likert scale (Neutral scale). From the schedule, the chisquare values of all paragraphs are between 9.49 and with calculated values less than The table shows that there is variation in the responses of the third question. The mean values of the paragraphs are between (3.02 and 3.53) which are located in the Agree and Neutral scales. What is the effect of moral incentives in improving the performance of employees in the government hospitals in Al Ahsa Region. The total mean value for the responses to this question is (3.95). It is positioned in the fourth category of the five point Likert scale, (Agree scale- between 4.19 and 3.40). From the schedule, the chi- square values of all paragraphs are greater than the table value= 9.49 (between and ) with calculated values less than So, the null hypothesis is rejected, and the contrary hypothesis is accepted. There is a significant relationship between the moral incentives that employees receive and their performance in the government hospitals in Al Ahsa Region. The following tables are related to the third hypothesis in this research: There is a statistically significant difference between the responses of the respondents about the research questions due to demographic variables (Age, Gender, Marital Status, Qualifications, and Employer Years of Experience). > RJCBS: Volume: 04, Number: 12, October-2015 Page 12

13 Age-Related Differences in Responses to the Research Questions: ANOVA Sum of Squares df Mean Square F Sig. Monetary Between Groups Incentives Within Groups Total Effect of Monetary Between Groups Incentives Within Groups Total Moral Incentives Between Groups Within Groups Total Effect of Moral Between Groups Incentives Within Groups Total Table (11) Difference between the responses of the participants about the research questions due to Age The ANOVA test shows that there is no difference between the responses of individuals due to age regarding monetary and moral incentives that are provided to employees in government hospitals in the Al Ahsa Region as the values of the F test are more than 0.05 (.2178 and.162). The test also shows that there is a difference between the responses of individuals due to age regarding the effect of monetary and moral incentives in improving the performance of employees in government hospitals in the Al Ahsa Region as the values of the F test are less than 0.05 (.006 and.001). LSD test was conducted. The LSD multiple comparison for question 2 indicates that there is statistically significant difference between the responses of the respondents about the effect of monetary incentives on employees due to Age. It shows that the performance of employees at age and those at age are more affected by the monetary incentives than employees at other ages (under 25, 35-44, and 55 or older) as the significant values of the earlier mentioned ages fall below the required.05 alpha level. Employees at age have a mean difference, standard error, and significant level of.51807,.16195, and.002. Employees at age have a mean difference, standard error, and significant level of.78054,.24183, and > RJCBS: Volume: 04, Number: 12, October-2015 Page 13

14 Mulltiple Comparisons LSD Mean Difference 95% Confidence Interval Dependent Variable (I) age (J) age (I-J) Std. Error Sig. Lower Bound Upper Bound Effect of Monetary Incentives under or older under * or older under * * or older under * or older under or > RJCBS: Volume: 04, Number: 12, October-2015 Page 14

15 older *. The mean difference is significant at the 0.05 level. Table (11-1) Difference between the responses of the participants about question 2- due to Age The LSD multiple comparison for question 4 indicates that there is a statistically significant difference between the responses of the respondents about the effect of moral incentives on employees due to Age. It shows that the performance of employees at age under 25 and those at age is more affected by the moral incentives than employees at other ages (35-44, and 55 or older) as the significant values of the earlier mentioned ages fall below the required.05 alpha level. Employees at age under 25 have a mean difference, standard error, and significant level of.07656,.37866, and.005. Employees at age have a mean difference, standard error, and significant level of.73949,.17602, and.000 Multiple Comparisons LSD Mean Difference 95% Confidence Interval Dependent Variable (I) age (J) age (I-J) Std. Error Sig. Lower Bound Upper Bound Effect of Moral Incentives under * or older under * or older under * * > RJCBS: Volume: 04, Number: 12, October-2015 Page 15

16 or older under or older or older under Table (11-2) Difference between the responses of the participants about question 4- due to Age Gender-Related Differences in Responses to the Research Questions: Group Statistics gender N Mean Std. Deviation Std. Error Mean Monetary Incentives Male Female Effect of Monetary Male Incentives Female Moral Incentives Male Female Effect of Moral Incentives Male Female Table (12) Group Statistics due to gender > RJCBS: Volume: 04, Number: 12, October-2015 Page 16

17 Independent Samples T. Test Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Std. Error Interval of the Sig. (2- Mean Differenc Difference F Sig. t df tailed) Difference e Lower Upper Monetary Incentives Effect of Monetary Incentives Moral Incentives assumed not assumed 9 assumed not assumed 8 assumed not assumed 0 Effect of Moral Incentives assumed not assumed 1 Table (12-1) Difference between the responses of the participants about the research questions due to Gender The Independent- Samples T Test shows that there is a difference between the responses of individuals due to Gender in regards to the Monetary and Moral incentives that are provided to employees in government hospitals in the Al Ahsa Region as the values of T Test sig. (2 tailed) are less than 0.05 (.006) and (.000). Males (with a mean of ) are offered with significantly more incentives than females (with a mean of ). > RJCBS: Volume: 04, Number: 12, October-2015 Page 17

18 It also shows that there is no difference between the responses of individuals due to gender about the effect of monetary and moral incentives in improving the performance of employees in the government hospitals in Al Ahsa Region as the values of T Test sig. (2 tailed) are more than 0.05 (.589) and (and.373). Marital Status-Related Differences in Responses to the Research Questions: Group Statistics status N Mean Std. Deviation Std. Error Mean Monetary Incentives Single Married Effect of Monetary Incentives Single Married Moral Incentives Single Married Effect of Moral Incentives Single Married Table (13) Group Statistics due to Marital Status Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interval of the Sig. (2- Mean Std. Error Difference F Sig. t df tailed) Difference Difference Lower Upper Monetary assumed Incentives not assumed Effect. Monetary assumed > RJCBS: Volume: 04, Number: 12, October-2015 Page 18

19 Incentives not assumed Moral Incentives assumed not assumed Effect. Moral assumed Incentives not assumed Table (13-1) Difference between the responses of the participants about the research questions due to Marital Status The Independent- Samples T Test shows there is a difference between the responses of individuals due to Marital Status about the Monetary and Moral incentives that are provided to employees in government hospitals in the Al Ahsa Region as the values of T Test sig. (2 tailed) are less than 0.05 (.026) and (.046).Single (with a mean of ) are offered with significantly more monetary incentives than married (with a mean of ). Furthermore, single employees (with a mean of ) are offered with significantly more moral incentives than married staff (with a mean of ). It also shows that there is no difference between the responses of individuals due to marital status about the effect of monetary and moral incentives in improving the performance of employees in the government hospitals in the Al Ahsa Region as the values of T Test sig. (2 tailed) are more than 0.05 (.267) and (.115) Qualifications-Related Differences in Responses to the Research Questions: ANOVA Sum of Squares df Mean Square F Sig. Monetary Between Groups Incentives Within Groups Total Effect of Monetary Between Groups Incentives Within Groups Total Moral Incentives Between Groups > RJCBS: Volume: 04, Number: 12, October-2015 Page 19

20 Within Groups Total Effect of Moral Between Groups Incentives Within Groups Total Table (14) Difference between the responses of the participants about the research questions due to Qualifications The ANOVA test shows that there is no difference between the responses of individuals due to qualifications about the four research s questions as the values of F test are more than 0.05 (.275,.455,.188, and.905). Years of Experience-Related Differences in Responses to the Research Questions ANOVA Sum of Squares df Mean Square F Sig. Monetary Between Groups Incentives Within Groups Total Effect of Monetary Between Groups Incentives Within Groups Total Moral Incentives Between Groups Within Groups Total Effect of Moral Between Groups Incentives Within Groups Total Table (15) Difference between the responses of the respondents about the research questions due to Years of experience > RJCBS: Volume: 04, Number: 12, October-2015 Page 20

21 The ANOVA test shows that there are no differences between the responses of individuals due to years of experience in regards to the four research questions as the values of the F test are more than 0.05 (.088,.311,.681, and.373). Conclusion: This study has reached the following conclusions: There is a significant relationship between the monetary incentives that employees receive and their performance levels in government hospitals in the Al Ahsa Region There is a significant relationship between the moral incentives that employees receive and their performance levels in government hospitals in the Al Ahsa Region There are no statistically significant differences between the responses of individuals due to age about the monetary and moral incentives that are provided to employees There is a statistically significant difference between the responses of individuals due to age in regards to the effect of monetary incentives that are provided to employees. The difference is in the performance of employees at age and those at age as the significant values of these ages fall below the required.05 alpha levels. There is a statistically significant difference between the responses of individuals due to age about the effect of moral incentives that are provided to employees. The difference is in the performance of employees at age under 25 and at age as the significant values of these ages fall below the required.05 alpha level. There is also a statistically significant difference between the responses of individuals due to Gender about the monetary and moral incentives that are provided to employees. Males are offered with significantly more incentives than females There is no statistically significant difference between the responses of individuals due to gender about the effect of monetary and moral incentives in improving the performance of employees. There is a statistically significant difference between the responses of individuals due to Marital Status about the Monetary and Moral incentives that are provided to employees as the values of single employees are provided with significantly more monetary/moral incentives than married employees. There is no statistically significant difference between the responses of individuals due to marital status about the effect of monetary and moral incentives in improving the performance of employees. There is no statistically significant difference between the responses of individuals due to qualifications about the four research questions. There is no statistically significant difference between the responses of individuals due to years of experience in regards to the four research questions. > RJCBS: Volume: 04, Number: 12, October-2015 Page 21

22 Recommendations: Managers in government hospitals in the Al Ahsa region should carefully plan and implement effective incentive schemes in their organizations. Such schemes assist in raising employees satisfaction and improving their performance Specialized committees should be formed by the Ministry of Health to monitor the provision of fair monetary and moral incentives to the employees in government hospitals. Managers should connect both monetary and moral incentives to specific performance behaviors that have an impact on desired outcomes. Mangers should provide monetary and moral incentives to employees fairly. An annual staff satisfaction survey should be periodically distributed to employees to measure their satisfaction with the incentives that are provided to them and review the on- process incentives scheme based on employees responses Mangers should consider compensating employees fairly for internally developed experience. The compensation can be developed by promoting employees, assigning them to acting roles, involving them in decision making, nominating them to attend courses, and compensating them financially. REFERENCES: Al Aksh (2007). The impact of incentives and rewards on improving job performance in the ministries of Palestinian National Authority, PNA, in Gaza Strip. (Master dissertation, Islamic University, Gaza) Al-Nsour, M. (2011). Relationship between incentives and organizational performance for employees in the Jordanian Universities. International Journal of Business and Management, 7(1), p78. Al Sagha (2013). The effect of incentives on employees performance in the Bank of Palestine, Gaza. (Master dissertation, Islamic University, Gaza) Armstrong, M. M. (2012). Armstrong s Handbook of Reward Management Practice (4th Edition): Kogan Page Armstrong, M. M. (2014). Armstrong s Handbook of Reward Management Practice (13th Edition): Kogan Page Armstrong, M. M. (2011). How to Be an Even Better Manager. (8th Edition): Kogan Page Bhattacharyya, D. K. (2012). Principles of Management, Text and Cases: Pearson Education India Cooper,C. L., Johnson, S., & Holdsworth, L. (2012). Organizational Behavior for Dummies: For Dummies > RJCBS: Volume: 04, Number: 12, October-2015 Page 22

23 Cooper, D.R, & Schindler, P.S. (2011). Business Research Methods. (11th edition): McGraw- Hill/Irwin Depedri, S., Tortia, E., Carpita, M., & Euricse, F. (2010). Incentives' Job Satisfaction and Performance: Empirical Evidence in Italian Social Enterprises. Trento: Euricse Working Papers, (012), 10. Hameed, Z., Maqbool, A., Athar, M. R., & Ijaz, M. S. (2013). How to Increase Employee Performance: Investigating the Impact of Incentive Motivators and Organization-Based Self-Esteem in a Pakistani Perspective. Middle-East Journal of Scientific Research, 14(5), LLC, A. P. (2002). Excellence In Service: Advanced: ILT Marth, C., Guare, R., & Dawson, P. (2010). Work Your Strengths: AMACOM Provitera, M. J. (2012). Mastering Self- Motivation: Business Expert Press Mason, W., & Watts, D. J. (2010). Financial incentives and the performance of crowds. ACM SigKDD Explorations Newsletter, 11(2), Peterson, S. J., & Luthans, F. (2006). The impact of financial and nonfinancial incentives on businessunit outcomes over time. Journal of Applied Psychology, 91(1), 156. Sesil, J. C. (2013). Applying Advanced Analytics to HR Management Decisions: Methods for Selection, Developing Incentives and Improving Collaboration: Pearson FT Press. Stuart-Kotze, R. (2006). Performance: The Secret of Successful Behavior: Financial Times/Prentice Hall Tracy, B. (2013). Motivation: AMACOM > RJCBS: Volume: 04, Number: 12, October-2015 Page 23