The impact of motivation on employees job performance in

on Organization

Chapter- 01
Introduction

1.1 Origin:
The only way to get people to like working hard is to motivate them. Today, people must
understand why they're working hard. Every individual in an organization is motivated by some
different way. When talking in term of employee motivation, it can be simply defined as
“Employee motivation is a reflection of the level of energy, commitment, and creativity that a
company's workers bring to their jobs.” The job of a manager in the workplace is to get things
done through employees. To do this the manager should be able to motivate employees. But
that's easier said than done! Motivation practice and theory are difficult subjects, touching on
several disciplines.

In spite of enormous research, basic as well as applied, the subject of motivation is not clearly
understood and more often than not poorly practiced. To understand motivation, one must
understand human nature itself. And there lies the problem! Human nature can be very simple,
yet very complex too. An understanding and appreciation of this is a prerequisite to effective
employee motivation in the workplace and therefore effective management and leadership.

Employee motivation is very important for organizations as every concern requires physical,
financial and human resources to accomplish the goals. It is through motivation that the human
resources can be utilized by making full use of it. This can be done by building willingness in
employees to work. This will help the enterprise in securing best possible utilization of
resources. It results into increase in productivity, reducing cost of operations, and improving
overall efficiency.

Goals can be achieved if co-ordination and co-operation takes place simultaneously which can be
effectively done through motivation. Stability of workforce is very important from the point of
view of reputation and goodwill of a concern. The employees can remain loyal to the enterprise
only when they have a feeling of participation in the management. The skills and efficiency of
employees will always be of advantage to employees as well as employees. This will lead to a
good public image in the market which will attract competent and qualified people into a
concern.

Organizations in this dynamic globalized world are continuously trying to develop and motivate
their employees to help achieve enhanced performance with various Human Resource
applications and practices.

Reward management system is the highly used practice for the enterprises to achieve the desired
goals (Güngör, 2011). According to Barber and Bertz (2000), Reward management system helps
the organizations to attract, capture, retain and motivate employees with high potential and in
return get high levels of performance. Reward management system consists of both extrinsic and
intrinsic rewards; where former involves financial rewards (salary, bonus etc) and the later
includes non-financial rewards like recognition, security, title, promotion,, appreciation, praise,
decision making involvement, flexible working hours, workplace comfort ability, feedback, work
design, social rights etc (Yang, 2008).

According to a study conducted by Grant (2008), motivation imposes employee outcomes for
instance performance and productivity. He also established that motivated employees are more
oriented towards autonomy and are more self-driven in contrast to less motivated employees.
Further, motivated employees are highly engaged and involved in their work and jobs and are
more willing to take responsibilities (Kuvaas & Dysvik, 2009).

Following are the variables which directly affect the employee motivation; Training is the formal
process by which a person acquires knowledge, skills, and competencies. Motivation is the
direction and intensity of one’s effort, or the psychological feature that arouses an organism to
action toward a desired goal.

Organizations that use training practices, directly or indirectly effect employee motivation as
well as commitment to the organization (Meyer & Allen, 1991). According to Rowden and
Conine (2005), the purpose of training is to enhance the satisfaction of employees towards their
jobs and satisfied employees contend their customers with enhanced performance. Employees
who commit to learn are more satisfied with their jobs and ultimately show more positive
performance than others (Tsai et al, 2007). In line with Tsai et al (2007), Harrison (2000)
established that learning that is prompted by training positively effects employee performance
and is an essential element for the achievement of organizational goals (Harrison, 2000). The
study shows that performance of firms is influenced by many things in which employee
motivation is the main factor if employees are more motivated then performance of organization
will also enhance (Saif ullah malik et’al 2012).

An intrinsic reward is an intangible award of recognition or a sense of achievement motivation,

in any endeavor when one feels in the Maslow’s hierarchy as attainment in conscious
satisfaction. It is the knowledge that one did something right, or one made some body's day
better. Hence reward management systems (specifically intrinsic rewards) positively motivate
employees and ultimately affect their individual and organizational performance. Pool and Pool
(2007) and Lok and Crawford (2004) argue that there is an inevitable link between motivation
and job satisfaction and motivation with commitment off employees. Similarly perceived
training effectiveness is highly correlated with the job satisfaction of employee, supporting the
findings of Tsai et al (2007).

1.2 Statement of the Problem:

In a highly competitive, global environment, organizations are constantly under pressure to retain
their workforce (Deci, 2013). Highly skilled, reliable and experienced employees are a valuable
asset for any organization. It is evident that highly motivated employees are more likely to have
high productivity. However, according to Certo (2006), good performance is not as a result of
motivation only, but also includes ability i.e. skills, equipment, supplies and time.

Some organizations have been known to experience a high staff turnover despite offering above
average salaries (Aguinis, 2012). This tells us that money is not the only way to motivate
employees. Additionally, different people are motivated by different factors. It is important for
managers and supervisors to understand what motivates individual employees, and not assume a
one-size-fits-all approach (George and Jones, 2013).

An organization is only as strong as its workforce. Human resources need to be treated with great
care, since they are a special resource that needs to be given special managerial attention and
time. (Storey, 2013). Therefore, studies like this are an invaluable resource in helping
organizations identify and maximize on ways to motivate employees whilst mitigating employee
turnover and under-performance (Steers and Porter, 2011).

With that in mind, I decided to carry out research in Pam Golding Properties, into the effect of
motivation on employee performance. It is the human resource amongst other factors of
production in the organization which really makes a distinction (Kreitner and Kinicki, 2013).

Production is considered as satisfactory when gross commission brought in by an agent is high. It

is human capability and commitment which ultimately differentiate successful organizations
from those that fail (Deci, 2013).

1.3 Research Questions:

Research is the systematic investigation into and study of materials and sources to establish facts
and reach new conclusions. We have conducted our research on employee motivation for we
believe it is one of the strongest and most an influential equipment that can stimulate human
resource either for the betterment or worse. So it is a sensitive issue, unless applied correctly may
cause aberration. We have developed some questions here which are directly related to how
motivation impacts their job satisfaction level and encourage them to work for their employer.

 How the Intrinsic and Extrinsic motivational factors impact the employee performance?
 How the workplace environment and sound communication with top management
impacts employee performance?
 Where the employees desire to see themselves after 10 years of working?
1.3 Objective:

The objective of the study is to explore how different key variables motivate employee and assist
an organization to rise and ascend as an economic superpower. The main intentions of this study
are:

 To investigate the condition of motivation in our banking sectors.

 To analyze the influences and outcomes of motivation on employee performance.

 To explore how motivation has been able to meet employee prospect.

 To examine the employee performance level bolstered by motivation.

 To identify the factors as well as hindrances are still holding back employee’s resolution

 To compare the achievement level with the use of motivation and expectation.

 To study the effectiveness of techniques adopted by organizations.

 To suggest what more can be done to achieve optimum outcomes using motivational

tools for the betterment of both the organization and employee.

1.4 Scope of the study:

The study was conducted in one of our country’s renowned banking sector, Karmasangsthan
Bank Limited. We have conducted our research on five branches of Karmosangsthan bank on
about 130 employees. The survey was conducted on the employees of different levels and
employees with different experience. The research was conducted in Dhaka region mainly. We
have used closed-ended descriptive questionnaire for data collection from the responders. In
Bangladesh, there are numerous more similar banking sectors where such studies can easily be
conducted and the result could be used for their benefits. It would also improve employee
relationship with top management.
 Chapter- 02
LITERATURE REVIEW

2.1. Motivation:

The word motivation is originally imitative from the Latin word movere, its meaning is to move.
Guay et al. (2010) discuss that motivation mentions to the drive essential behaviour. Motivation
is the internal feeling that encourages an individual to involve in a specific manners and thought
that motivation it could be observed from two side (Spector, 2003). Gouws (1995) expressed that
motivation is the inner feeling or desire that initiates with a people either intentionally or
unintentionally to complete the job excellently because it’s pleasurable and not obligatory for
what will be expected in arrival. For the organization employee motivation is one of the best
policies to improve effective work management between the organization and employees.
Motivation is very significant for the organization or management to treasure a method to
motivate their workers. When workers realize that their view are consider to be valued it
provides them an intellect of belongingness which can motivate the employees. The incentive
always accomplishes the demand and requirements of the workers and in return the individuals
repay it through hard work and honesty. The main objective of the organization is to classify the
needs and wants and replying it to the most elementary method of all organization to get the
commitment of the workers (Surbhi, S. 2012).

Supremacy motivation can also play a key part in increasing the performance or efficiency of
organization, power an individual need can be either institutional or personal. In the organization
managers with a high need of institutional power tend to be more effective than those with high
need for personal need (Habibah & Noran, 1999). Motivation is divided into two major types,
intrinsic and extrinsic motivation. An employee’s objectives are connected to his or her purpose
for attractive with duty. Objective can be sectioned into mastery objective which can be
compared with intrinsic value and performance objective which can be compared with extrinsic
motivation (Broussard & Garrison, 2004).
Intrinsic motivation is linked to work content which happen when employee execute an action
from which they develop gratification for simply appealing in the effort himself. Many scholars
defined intrinsic motivation as the performing of an action for its innate happiness relatively than
for some distinguishable significance. Intrinsic motivation denotes to the innate features of job
and distinguishing connected with the work itself, for illustration the capability to discuss to
personnel an intellect of interest, accomplishment, achievement and responsibility (Kalleberg,
1977). Intrinsically motivated employees are encouraged to performance for the exciting or trial
enabled rather than because of outside stress and incentive. In one way intrinsic motivation
exoduses within employees and other way intrinsic motivation exoduses in the relationship
between doings and employees. For some activities workers are intrinsically motivated and not
others, but not everyone intrinsically motivated for some specific duty or works. According to
Guay et al. (2010) intrinsic motivation refers to motivation that is energetic to by individual
attentiveness, enjoyable and is usually various from extrinsic motivation which is operated by
strengthening eventuality.

Extrinsic motivation is an idea that affects whenever an activity is complete in direction to

achieve some distinguishable results. Its transactions with the external surroundings mean what
the organization has to suggestion. According to Herzberg (1968) expressed that extrinsic
motivation frequently mention to work features that are outside to the job themselves, given that
incentive like pay , promotion , job security and funds sufficiency. In other aspect extrinsic
motivation contain with the more figurative benefits in relations of customer appreciation and
communal endorsement and other community supports. Appraisal of this measurement imitates a
workers want for the satisfaction of public desires from the effort doings. Thus extrinsic
motivation is disparities with intrinsic motivation. Let suppose a schoolchildren do his or her
exercise only because he worries parent permissions for not responsibility it’s extrinsically
motivated because he is deed his work in instruction to achieve the distinguishable results of
ducking endorsements. It can happen by the providing of benefits which can be also touchable
like grades, money and privilege and impalpable like praise. The extrinsic facet of employee
motivation is apprehensive with the quality positioned on substantial remuneration at effort.
Extrinsic or material rewards provided by the organization that are tangible and visible to others
(Bellenger et al, 1984).
2.2. Employee performance:

According to the work of Landy (1985) and various other study works on efficiency of
employees indicated the fact that individuals are satisfied with their work will have greater work
performance, and thus greater job discharge than those who are not satisfied with their works.
Further it is stated that workers are more likely turnover if they are not happy and less motivated
to display better performance. The performance of highly satisfied and happy workers is higher
so the organization easily achieved its desire goals and objective through this higher employee’s
participation. In the field of human resource individual performance is everything about the
performance of workers in a company or an organization or a firm. For the organization or
company workers performance is very essential to make every single struggle to support slight
performers. But if the firm cannot motivate their workers successfully, so it’s very difficult for a
company to exit in the competitive environment of business (Ahmad, 2012).

Performance is divided into five categories. Planning, developing, rating, monitoring and
rewarding. In the first stage is planning, planning means to developing strategy, setting goals and
delineation duty and timetable to complete the objectives. Monitoring is the continuously
calculating presentation and providing enduring response to workers and effort collections on
their improvement towards accomplishment their objective. In developing stage the worker is
speculative to increase any reduced performance that has been seen throughout the period
surround one has been employed at the firm. Rating brief the whole performance of workers.

This phase is calculated to reward and distinguish exceptional behaviours such as that which is
better than probable. Employee performance is basically influenced by ability, working setting
and motivation. Creativity cannot be instituted without the involvement of employees (Liu, C.H,
2013).

According to Ottenbacher & Harrington (2007) suggested that for organizational creativity and
innovation employees play a vital part in the organization. These innovative workers are
foundation of economic benefit in the organization. Motivation impact individual’s performance
in the organization by providing or giving different kind of incentive and rewards.

Performance of individuals is deliberated as what a personnel does and what he does not do.
Individual’s performance involves quantity and quality of productivity, existence at effort,
accommodative and co-operative nature and timelines of results. Individual’s performance is
essentially prejudiced by motivation as if workers are satisfied or motivated than they will do
work with more effort and by which performance will finally increase (Azar & Shafighi, 2013).
Rewards and incentive are essential for employees to shift the displeasure into pleasure. Mehmod
(2013) also describe in his study that when workers are happy than they will do the job with
more importance and try to will do better work which will lead to good performance. Motivated
workers are more concerned towards self-sufficiency and are more self-driven is compere to low
motivated workers. Moreover, motivated workers are extremely participate and elaborate in their
job and work and are more eager to proceeds duties (Kuvaas & Dysvik, 2009). Reasonable
wages or salary also an appreciated element and play a significant role to improve workers
performances and also improve the productivity of an organization. Individual performance is a
usual of behaviours which employees display in associations to his work (Rashidpoor, 2000).

2.3. Job satisfaction:

In general job satisfaction as the singular assertiveness concerning the numerous characteristics
of their works. Job satisfaction as the emotive happiness that outcomes from the evaluation ones
work as attaining or simplifying the accomplishments of one’s job importance (Lock, 1969). The
observed work happiness produces progressive sentiment amongst individuals which in casual
signify optimistic emotive reply in the direction of want for authority. The author additional
discuss that satisfaction is attained as ones understands the importance of work standards to
achieve ones elementary requirements. For the individuals working life skill job satisfaction is
one of the important factors. Job satisfaction significance is connected to an individual getting
enough extrinsic and intrinsic benefits to inspire the workers to stay and continue to expend a
huge extent of period and accomplishing their responsibilities.
Many scholars agree that job satisfaction is a direct on employee performance at numerous levels
in an organization. It is one of the most important broadly debated topics in organizational
manners, organizational management, staffs and human capital management. In simple word job
satisfaction is sensation decent the job performed, combine with the organization mission and
vision and a state of awareness Lewis et al. (2002). According to Steijn, B (2002) job satisfaction
is an enjoyable sensitivity that outcomes from the insight that one’s job permit or achieve of
one’s personal work standards. A person wants to accomplish their quantifiable capital through
the work completed intentionally or unintentionally. Job satisfaction is the amount to which
employees think significantly about their work (Pool, S.W, 1997).

Job satisfaction is an emotive reply to ones work as well as the social and physical situation of
the job environment. It is expected to be greater for workers who observe incentive involvement
equilibrium in their connection with engaging organisation. In sum up job satisfaction is the
outcomes of several arrogances influenced by a personnel toward his or her work. This job
satisfaction attitude may be linked to work features such as job security, environment of work,
salaries, and quick abstraction of complaints, job surroundings, and chance for advancement, and
chances for involvement in decision building and other pleasure of marginal remunerations. Any
type of industry or enterprise the job satisfaction of whole labour force play a key role and with a
collection of pleased employee organization can effectively implement their policy. Numerous
observed investigations have revealed that job satisfaction has direct effect on the employees job
performance at many level in an organization. Job satisfaction is connected to worker
performance and motivation (Kiviniemi et al, 2002). According to Meyer et al. (2002) explained
that job satisfaction is an approach originated from worker sensitivities of their works or job
environment and mentions to the degree to which an individual enjoys his or her work. It is an
attitude very delicate to the features of the setting in which its learning.
 Chapter- 03
Analysis & Evaluation

Analyzing data the background information on the employees at different level has been shown

throughout the following pi diagrams. We assume it will be helpful to understand the range of

area we’ve tried to cover with our research.

From the diagram above we see that, among the 130 people we conducted our research on, 42%,

i.e. 55 individuals were female and 58%, i.e. 75 individuals were male.
From the diagram above we see that, among 130 people we conducted research on, 28
individuals are of age 21-30 years, 43 individuals are of age 31-40 years, 40 individuals are of
age 41-50 years and 19 individuals are of age 51-60 years.

From the diagram above we see that, among 130 people we conducted research on, 102
individuals are University Graduate and 28 individuals are University Postgraduate.
From the diagram above we see that, among 130 people we conducted research on, 20
individuals are serving between 0-4 years, 35 individuals are serving between 5-8 years, 43
individuals are serving between 9-12 years and 32 individuals are serving for more than 12 years.

Effect of Extrinsic Motivation: We considered three factors as extrinsic motivation

determinant; they are Salary, Monetary Incentives and Compensation Package.

Statement Strongly Agree Agree Uncertain Disagree Strongly Disagree

Salary 90% 8% 2% 0% 0%

Incentives 68% 23% 6% 2% 1%

Compensation 77% 16% 6% 1% 0%

The result showed that, extrinsic motivation is a dominating factor for motivation employees.
We considered three ramifications under this factor. Here, in case of salary, 90% respondents
agreed that salary motivates employees to improve their performance; meanwhile, 8% agree with
the fact, 2% are uncertain and no one disagrees. In case of monetary incentives, 68% respondents
agreed that monetary incentives motivate employees to improve their performance; 23% agree
with the fact, 6% are uncertain, 2% disagree and 1% strongly disagree.

In case of compensation packages, 77% respondents agreed that compensation packages

motivate employees to improve their performance; 16% agree with the fact, 6% are uncertain,
1% disagree and none strongly disagrees.

Effect of Job enrichment and performance appraisal: We categorized this section into four
different factors; they are work environment, responsibility, promotion and recognition and
appraisal for work done.

Statement Strongly Agree Agree Uncertain Disagree Strongly Disagree

Environment 72% 22% 2% 3% 1%

Promotion 65% 22% 10% 3% 0%

Responsibilities 52% 19% 7% 15% 9%

The study shows that job enrichment and performance appraisal is a very important
psychological motivating factor. Here, in case of work environment, 72% respondents agreed
that work environment motivates employees to improve their performance; meanwhile, 22%
agree with the fact, 2% are uncertain, 3% disagree and 1% strongly disagree. In case of
responsibilities, 52% respondents agreed that responsibilities motivate employees to improve
their performance; 19% agree with the fact, 7% are uncertain, 15% disagree and 9% strongly
disagree. In case of promotion, 65%% respondents agreed that promotion motivate employees to
improve their performance; 22% agree with the fact, 10% are uncertain, 3% disagree and none
strongly disagrees. In case of recognition and appraisal for work done, 72% respondents agreed
that recognition and appraisal for work done motivate employees to improve their performance;
18% agree with the fact, 6% are uncertain, 3% disagree and 1% strongly disagree.

Effect of Relationships and security: Effect of relationships and security was divided into three
sectors; Relationship with superiors, Relationship with peers and Job security.

Statement Strongly Agree Agree Uncertain Disagree Strongly Disagree

Superior 77% 15% 4% 2% 1%

Peer 71% 16% 5% 6% 2%

Job Security 73% 18% 9% 0% 0%

The result showed that, relationships and security is also a dominating factor for motivation

employees. We considered three ramifications under this factor. Here, in case of Relationship

with superiors, 78% respondents agreed that Relationship with superiors motivates employees to

improve their performance; meanwhile, 15% agree with the fact, 4% are uncertain, 2% disagree

and 1% strongly disagree. In case of Relationship with peers, 71% respondents agreed that

Relationship with peers motivate employees to improve their performance; 16% agree with the

fact, 5% are uncertain, 6% disagree and 2% strongly disagree. In case of Job security,

73%respondents agreed that Job security motivate employees to improve their performance; 18%

agree with the fact, 9% are uncertain and none disagrees.

Here, in case of Growth Opportunity, 76% respondents agreed that Growth Opportunity

motivates employees to improve their performance; meanwhile, 25% agree with the fact, 5% are

uncertain, 2% disagree and 2% strongly disagree.

 Chapter- 04

4.1 FINDINGS OF THE STUDY

From the data analysis above, we find that, there are two parts to data analysis; the first part

provided the background data of the respondents and the second part represented elaborated

expression about their response are showed in the form of percentage under each section which

are Extrinsic motivation, Job enrichment and performance appraisal, Relationships and security,

Authority to make decisions and Growth opportunity.

1. Effect of Extrinsic Motivation on employee performance: From the study conducted

above, It can be asserted with certainty that, extrinsic factors are great motivator as

majority of the respondents thinks. So an effective scheme of monetary and extrinsic

rewards should be made. It is also to be kept in mind that, after a certain amount of time,

employees may feel the requirement for more monetary incentives.

2. Effect of Job enrichment and performance appraisal: Job enrichment and

performance appraisal are also a decent motivation factors. The effects of these factors

are more on the psychological perspective. If the working environment is good, the

employee will perform with more convenience and ease. Similarly, if the employee is

aware of the fact that his/her good performance is being appraised by the top

management and subordinates, then surely better performance can be expected.

Nonetheless in some cases, the employees may feel pressurized by excessive workload

and responsibility which that case works as a de motivator.

 3. Effect of Relationships and security: Relationships with superiors and peers are also

important as deducted from the survey above. Similarly job security has also a positive

effect on employees’ performance as they feel more secured doing their job knowing that

they are secured with their job. That’s why it is better to provide a legal agreement during

joining.

4. Effect of Authority to make decision: If the employees are given authority to take

decision under their territories of expertise, then it may very well be used as an enormous

motivation tool. They shouldn’t be allowed to take decision outside their range of

operation.

5. Effect of Growth opportunity: If the employees feel that they have a great future in

their respective organization, they will work with more efficiency and compatibility. So

this is also a great motivator. Such motivating should be established by exemplifying

others working in the same organization.

4.2 RECOMMENDATION:

The results obtained from this research can certainly be used very effectively to improve the

present scenario of motivation in different sectors of our country. It will help to establish a more

firm grip on not only organizational behavior but also employee psychology. Motivating your

employees is a delicate and purposeful challenge that requires more than an annual review or

jotting a few notes in someone’s personnel file. The following can be suggested on the basis of

the research and survey conducted above.

  Based on the result provided by the study, the organization can get an idea of the fact if

they require taking steps regarding motivation.

 The study can also be used to bring clarity concerning how to implicate different theories

of motivation into practical field of work.

 To inspect the extend up to which motivation has been able to meet employee prospect

expectation.

 To inspire these sectors to enforce more motivational tools in order to achieve more

successes.

4.3 CONCLUSION

The researchers inferred to the conclusion based on the research conducted above and the

respondents ‘repercussion of the questionnaire supplied, that motivation indeed has a momentous

effect on employee performance. From the data analysis presented above we can clearly come to

the decision that the factors taken into account during the survey (Extrinsic factors, Job

enrichment and performance appraisal, Relationships and job security, Authority in decision

making, Growth opportunity etc.),pragmatically dominates employees’ will to perform and

achieve goals of the respective organization. The factors considered under Extrinsic motivation

are salary, monetary incentives and compensation package; the factors considered under Job

enrichment and performance appraisal are work environment, responsibility, promotion and

recognition and appreciation for work done; the factors considered under Relationships and

security are relationship with superiors, peers and job security; Moreover, Authority to make

decisions, Growth opportunity and future prospects were also taken into account. The result

evidently represented the tangible sorting of how motivation is responsible for upliftment of
employee performance. From what the researcher found it can easily be stated that the

connection between motivation and performance is quite natural if not obvious. When the

employees will get some extra drive and exertion, it is bound to ameliorate their typical standard

of performance.