Abstract
Employees attached more preference for current benefits of non-monetary factors than future benefits, confirming the endowment effect. The current benefits of motivation exhibited direct effect on employee performance. The distant benefits had no direct effect but exhibited mediation effect by contributing to the current benefits. The employees having low level of literacy and those in the operative cadre were more inclined towards the current benefits when compared with their counterparts. Marital status of the employees was found not influencing the preference for the current benefits. The study is probably the first to attempt an examination of the endowment effect on non-monetary motivational factors in employee performance.
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