Impact of Employee Motivation on Business

Performance 
Table of Contents
Introduction........................................................................................................................3

Research Question........................................................................................................3

Statement of Research......................................................................................................3

Aims and Objectives......................................................................................................3

Expected Findings..........................................................................................................4

Literature Review...............................................................................................................4

Conceptual Framework..................................................................................................4

Employee Motivation......................................................................................................5

Organizational Performance..........................................................................................6

Organizational Performance and Employee Motivation................................................6

Motivational Factors and Organizational Performance..................................................7

Methodology......................................................................................................................8

Research Strategy.........................................................................................................9

Research Instrument......................................................................................................9

Conclusion.......................................................................................................................10

Recommendation.............................................................................................................10

References.......................................................................................................................12
Introduction 
Due to increasing competition and corporate development, the main objective of
companies is to make money and increase their profitability by investing in customer
satisfaction. They achieve customer satisfaction by investing in their employees in terms
of seminars, training, and awareness sessions. For a very long time, employees are
considered as just an input for business operations but for firm 1934-1932, this thinking
evolved. After the research of Dickson (1973), the employees become assets of the
organization, not only the assets; they become the main operative factors for the
businesses (Korzynski, 2013). Therefore this study will analyze the employee's
motivation and its effectiveness on business operations. This topic is related to human
resources development because employees are the physical beings and their
motivation resulted in the positive growth of the organization

Research Question 

 What will be the impact of employee motivation on organizational performance? 

 What are the factors that lead to the motivation of employees within the
organization? 
 How employee motivation affects the performance of the employees? 

Statement of Research 

Aims and Objectives 

The main purpose of the research done is to understand and analyze the relationship of
employee motivation with the productivity and performance of the business operations.
In this regard, the paper will also explain the various motivation theories that are
commonly used by management. These theories are important because they assist the
management in their decision making to choose which motivation factor can provide a
maximum yield to their employees. The objectives of this paper are as follows 
 Reasons behind the motivation of employees 
 Analyze widely used motivation theories 
  Analysis of the impact of various motivation theories on employee performance
and result, it impacts on business performance 

Expected Findings

The previous researches are done on employee motivation and business performance
has always proved the point that both are directly linked with each other. In this paper,
we are expecting the same findings but focusing on the elements that contribute to the
motivation of employees. The common motivating factor in organizations is the
encouragement from colleagues and the leaders, the increments, wages, and salary
appraisal proved to be a helpful source of motivation. In addition to these the
recognition from the organization in one's hard work, assignment of new roles within
and outside current teams, and promotions all proved to be very useful in the motivation
of employees. As most of the researches have been done on motivation theories and
the effect of it on the business and employee performance, researches on motivation
approaches and the techniques to be followed to motivate employees in an organization
can be done. On the other hand, future researches can be done on how to get individual
needs and requirements. Tools or interviews can be used to get the information
required on individual needs. Also, motivation researches can be done on the aspect of
the gender. For example, whatever motivates females or ladies might not motivate
males. So, a future research about different motivation approaches and based on
gender will be valuable.

Literature Review 

Conceptual Framework

The paper analyzes the factors, theories and elements that influence the motivation of
employees which ultimately affect the performance of organizations. After the analysis
the relationship that has been developed between motivation, business performance is
as follows 

Employee
Performance

Employee Reward
 Organizational
Performance

Employee Motivation 

The word motivation is a derivation from a Latin word which means movement, due to
which it represents to something which moves, and keeps moving until it reaches its
destination (Vukajlovic & Ostojic, 2016)
Keeping the same vision, employee motivation is the behavior of employees towards
their organization. MuseAliGeelmaale (2019) has stated that the employees who feel
motivated will increase the performance of the organization with their hard work. They
will build strong interpersonal relationships with their colleagues and develop a
motivated organizational culture. These motivated employees are not only the asset of
their organization, but they also become strategic partners because their loyalty and
commitment will increase each day which in the end benefits the organization in terms
of their profitability. The famous research of Buttner, E. Holly & Moore, D.P.. (1997)
which is "Happy Employees Make Productive Employees" statically proved that
increasing the motivation rate of employees by five percent will increase the revenue by
five percent and customer satisfaction will increase by two percent. This is because a
motivated employee works hard and produces more from others which results in more
customer satisfaction. 

Organizational Performance 

The phenomenon of organizational performance is a complex and multidimensional

concept. Although the concept of organizational performance is very common in
academic writing still there is no single research or dimension that exactly defines it
because its subjective later, what's performance mark for one's organization, cannot be
for another it varies from organization to organization, and industry to industry (Azar &
Shafighi, 2013)
In general, organizational performance is the ability of any organization to use its
resources and assets to its fullest to yield maximum benefit, which can be profitability,
customer satisfaction, and employee motivation. The key element of organizational
performance is its performance, it is the level of attainment or the objective, an
organization aims to achieve. The performance has two measuring elements, objective
and subjective. Objective means the monetary issue of the organizations which includes
financial stability, profitability, stock market price, liquidity, and loss ratio. The subjective
include market growth, sales ratio, customer satisfaction, product development,
employee motivation, and competitor analysis. 

Organizational Performance and Employee Motivation 

Research held in the banking industry of Indonesia by (Siahaan, 2017) indicates that
the most important factor that contributes to the motivation of employees is the salaries,
increments, promotions, working environment, and also health insurances. Whereas a
study held in Finland indicates that increments contribute positively towards employee
motivation. 
In (2020), a study held in Malaysia by Sinambela, indicates that employee motivation
and organization performance are closely linked with each other, and in this regard job
satisfaction plays an important role. (Omolo, 2015) held research in Commercial bank of
Kenya to study the relationship between employee motivation and employee
performance. In his study, he concludes that fifty percent of the employees of the bank
are not satisfied with their wages but still they are not motivated and working for years in
the same bank just due to job security. Research is done by Ali, Dahie and Ali (2016) on
the motivation of teachers and their performance in schools conducted in Mogadishu,
which indicated that almost eight percent of teachers feel motivated just due to their
satisfaction with the job description. 
Ali, Dahie and Ali (2016) researched the impact of the motivation of employees on the
performance of employees and concluded that three main aspects directly affect the
performance and motivation and these are the working environment, interpersonal
relationship of the employees, and job security. Attiah, Joseph. (2013) researched the
motivation and employee performance at the University of Development studies, WA
campus. He concluded that the motivational factors are very inadequate within the
university campus, employees were unmotivated which leads to poor performance in
terms of excessive absences from work, undisciplined attitude, and incomplete work. 
In summary, we can say that the factor of motivation is essential for both organizations
and employees. In the case of the organization, they should develop an environment for
employees in which they feel motivated, adapt quickly to culture, and offer more
creativity in their work. In the case of employees, motivation means loyalty and
commitment towards the employer and one's own goals.

Motivational Factors and Organizational Performance 

The motivational factors of any organization are termed as a reward system in many
international journals. The reward system is an instrument that is used by the
management to ensure the motivation of employees systematically to ensure
organizational performance. This reward system may include increments, promotions,
training, communication, and even interpersonal relationships. The rewards system
generally indicated the worth of an employee which means it can have both negative
and positive impacts. The positive impact can lead to appraisal whereas the negative
impact can lead to suspensions (Vukajlovic & Ostojic, 2016)
Kikoito, Jesca N.. (2014) analyzed the reward system and operational performance in
the Commercial Bank of Tanzania. His findings indicate that the bank has developed an
intrinsic and extrinsic reward system. The intrinsic system has recognitions, praising,
and acknowledgments while the extrinsic system has appraisals, benefits, and bonuses.
After the deep analysis researcher found that employees are not satisfied by the
intrinsic system and they want the intrinsic system to be fully implemented, which
indicates that all the variables of the extrinsic system which are appraisals, bonuses,
compensations, and promotions positively contribute to the organizational performance
by boosting the employee's motivation. 

Methodology 
There are two kinds of methodologies that are generally used in the academic journal
that are qualitative and quantitative approaches. This is based on a qualitative
approach, which means the research objective is to analyze the impact of employee
motivation on organizational performance. As the research is not focused on one sector,
and taking the organizations as a whole, this qualitative considered to be the best
approach. The qualitative approach is considered helpful for those researches which
have a broader aspect and have large interconnected concepts and factors. In addition
to this, the qualities of research are more concerned about the accuracy and
authenticity of the results as they are directly linked with the daily life social and
regulatory issues (Cleary, 1997)
The qualitative approach is are very interdisciplinary but sometimes it crosses the
disciplinary boundaries and enters physical, social, and humanities sciences. This
approach can be used in different ways in the same research, due to which it is
paradigmatic in nature and focus. The researches in which it is used are very multi-
approach researches. All these researches are linked with understanding the human
perspective in intercepting topics but all these researches are also linked with ethical
and moral obligations.
The sampling of the target audience will be done by using probability sampling. In this
approach, the sample size is selected from a very large population pool by
implementing the rules of probability on each person. To minimize the effort and save
time, the researcher will apply a random sampling method on the selected sample
where he will randomly pick the employees and employer for interviews and
questionnaires separately to obtain immediate and effective results. 

Research Strategy 

The research strategy is the plan of action that directs the flow of research and enables
a comprehensive and systematically designed research. The strategies that are usually
used in conducting research are interviews, historic analysis, case studies,
questionnaires, and surveys. The usage of any particular research highly depends on
the three main factors that are
 The nature of the research question 
 The impact of the research question on the dependent and independent
variables 
  The extend of focus and interconnected concepts 
In this research, the interview questions are developed in qualitative strategy because
by interviewing the employees and employer directly, we can easy understanding the
impact of employee motivation in organizational performance and the factors that
motivated the employees to keep loyal and committed to the organization (Cleary, 1997)

Research Instrument

The questions developed for the interviews in the organization for analyzing the
employee motivation and performance of organizations will be divided into four different
categories. The first segment will be about the salaries and wages, this will help in
understanding the satisfaction of the employees with the given salaries package and
which monetary incentives keep them motivated in their work. 
The second is roles and responsibilities within the organization, these questions will be
the researcher in understanding the interpersonal relationships and communication
style between employee and employers. 
The third segment will have recognition which means that employees will be asked that
if their work is recognized are they feel motivated or not. In addition to this, the
management will be asked about how often employee recognition for his work. 
The last and fourth segment will have appreciation questions. It means the employees
are asked about the behavior and attitude of management on open discussion and are
the employees are appreciated for devising new ideas (Theodorou, 2013)
The second instrument will be questionnaires that will be formed by using Google forms.
These Google forms will be sent to the employees and employers through emails and
the researcher will wait for the responses. The questionnaire will be formed using Liker
five scale grading method because it will help the employers and employees in giving
specific responses with grading patterns depend on their satisfaction. The responses
will be analyzed by using graphs and tables and Google forms provide the assistance
as the responses automatically get the shape of bar graphs and pie charts due to which
it becomes easy to intercept. 
This questionnaire will be segregated into three variable indicators to make it validated
and reliable. The technique of test-retest will be used because the researcher will
receive the responses at various times and it will help in keeping the variable static by
using multiple points which results in deducting ethical and reliable results. 

Conclusion 
From the above-mentioned discussion, we can conclude that to increase the
performance of the organization, it is very essential to influence the motivation of
employees because their motivation directly affects the productivity of the businesses. It
is the duty of the employer or the managers to develop scenarios and circumstances in
the organization that can motivate the employees because, in the end, their motivation
will lead the business operations. In other words, we can say that employee motivation
is one the most influenced factor that can either set the organization on new heights or
decline its journey, due to which there is no hit and try the theory that can ensure
motivation, the mangers have to try to keep away every obstacle from employees
motivation. 

Recommendation
The recommended solution in the organization will definitely lead it toward high
motivated people and employees with high rate of performance and hence enhance
business performance and productivity. Moreover, those recommendations are widely
investigated in the literature review as good practices to achieve the high motivated and
performance employees.

Not only motivated people will enhance the business productivity, but also employees
will be more innovative and creative which might find other beneficial ways of doing the
work with considering cost saving and high quality.

However, implementing the motivation approach in the organization is a high positive

output process, it has to be done with high concentration and care from the decision
makers. It also needs to be done with a high priority task and awareness should be
there for employees.
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