The major purpose of this research is to analyze the impact of extrinsic and intrinsic motivation on
job satisfaction of employees working in commercial banks (Karachi). This research tries to understand
how much employees are satisfied with their pay, promotion as extrinsic motivation and recognition as
intrinsic motivation. Or in other words this research aims to find the significance of Pay, Promotion and
recognition on Job satisfaction. The study involved using questionnaire filled by 358 employees working in
various commercial banks in Karachi. Mainly the data is collected from Junior and middle level of employees
belonging to different age groups. Regression analysis, Pearson correlation was used to prove the
hypotheses. When the statistical tools are applied to the data we came to know that the Pay, Promotion
and recognition has a positive and significant impact on job satisfaction meaning the employee consider all
3 factors important in achieving job satisfaction. However, the most significant relationship and impact is of
recognition) with job. The level of pay is not more important than other variables (promotion and recognition.
This research will help the banks to understand the impact of pay promotion and recognition on job
satisfaction and will help them to improve their compensation strategy and keep a balance between extrinsic
and intrinsic rewards.