Centralized organizations and intrinsic rewards: a study in medium business

Abstract

This quantitative study offers the partial results of a research project conducted in a population of medium-sized businesses in Lara State, Venezuela. The objective was to determine whether there is a relationship between the variables of organizational design: centralized decision making and intrinsic rewards. The theoretical framework developed provides a general hypothesis which was tested in a field study. Methodologically, the measurement scales of the studied variables were assessed for its reliability, and content validity and construct. Data processing consisted of statistical correlation analysis and simple regression. Results show that there is a significant negative relationship between a centralized system and the implementation of intrinsic rewards in the organization.