Abstract

This study aims to examine the relationship between rewards (intrinsic and extrinsic) and organizational commitment. A total of 429 employees from SMEs in Klang Valley, Malaysia participated in this study. The Pearson’s correlation analysis was employed to examine the relationships between the intrinsic and extrinsic rewards and the organizational commitment. Study revealed that the level of organizational commitment is moderately high among employees of SME in Klang Valley, Malaysia. Results also show that there is a significant and positive relationship between intrinsic rewards and organizational commitment; and a significant and positive relationship between extrinsic rewards and organizational commitment. A notable discovery from this study is that the employees’ demographic background influenced the level of organizational commitment. However, results shows that the gender and the number of times in changing jobs have no significant influence on the level of organizational commitment.

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