Application of an Exploratory Factor Analysis to understand the Employees Perception on Reward Management Practices in Pharmaceutical Industry

Abstract

Talent management is an important element of Human Resources Management of any organization. Therefore, it must be developed as an integral part of the business strategy. Talent management process has sub-processes that focus on identifying critical positions, competence training, development and reward management. Many researchers find it interesting to explore the impact of various rewards categories on the individual performance in the organization. Researchers have examined both intrinsic and extrinsic factors as reward management, as an important factor and integral part of the talent management process. This paper examines the major dimensions of rewards management. Researchers using exploratory factor analysis (EFA) for the first time may find it difficult as there is limited detail explanation available on making decision on selecting acceptable and interpretable factor. This research makes a genuine attempt to understand how to use Exploratory Factor Analysis for the further research in reward management studies.