KATHMANDU UNIVERSITY SCHOOL OF MANAGEMENT

Balkumari, Lalitpur

Organizational Behavior
Term Paper
Influence of motivation on employee turnover and productivity in an organization

Submitted to: Submitted by: Group 3

Mrs. Rachana Negi Rana (BBA 2019 ‘B’)
Faculty of Organizational Behavior 197068 Neha Pandey
197093 Anuska Shrestha
197103 Prarthana Shrestha
197084 Safal Shakya
197115 Reeva Thapa

Date:9th July 2021

 1

Acknowledgement

First and foremost, we would like to express our sincere gratitude to Kathmandu
University School of Management (KUSOM) for providing us this platform to enhance our
interpersonal skills, research ideas, and primary ways of data collection and analysis.
This assignment has made us realize the importance of practical learning.

We are also grateful to our Faculty of Organizational Behavior, Mrs. Rachana Negi Rana
for providing us this ample opportunity of exploring through the various topics and issues
that has been a new journey into understanding the practicability of this subject. We
acknowledge with thanks to Mrs. Rachana Negi Rana for her kind patronage, timely
guidance, and a continuous effort to push us forwards, not only being confined within the
pages of books, but into understanding the various aspects of what we learnt in our lecture
in the real world.

Last but not the least, we acknowledge our family members and friends for their valuable
support and assistance in any ways possible.

Thank You.
 2

Table of Contents

Abstract .................................................................................................................................... 3
Introduction .............................................................................................................................. 4
Literature review ...................................................................................................................... 6
Motivation ............................................................................................................................. 6
Productivity........................................................................................................................... 7
Turnover................................................................................................................................ 8
Analysis .................................................................................................................................... 9
Recommendation ....................................................................................................................17
References ..............................................................................................................................21
 3

Abstract

The main objective of our paper was to investigate the effect of motivation between
employee productivity and their turnover intensity. A total of eight research studies on
these topics were reviewed, analyzed, and a collective conclusion and recommendation
was made.

The findings from all of the research papers shows that motivation is one of key factors
for an organization to succeed. Workplace motivation has a direct relationship with
employee productivity and an inverse relationship with employee turnover. Employees
that are motivated do their jobs to the best of their abilities, resulting in increased
productivity and results. If a person feels unmotivated, they are more likely to perform
below their potential. In terms of productivity, monetary incentives alone are insufficient
and other motivating factors are equally important to drive employees to perform to their
full potential. When employees' goals do not coincide with the organization's aims,
employee turnover is likely to rise. Employees become demotivated as a result of a lack
of recognition for their progress and success, as well as a lack of clear communication
between employees and their management.

The term paper findings lead to the conclusion that if a firm wants its employees to be
more dedicated to it, it should consider enhancing employee work motivation. Managers
should be aware of their goals and objectives in order to effectively enhance their
employees' job motivation. Aside from motivation, other factors such as a positive work
atmosphere and recruitment of employees and organization culture also affect the
productivity and turnover of the employees.

Keywords: Motivation, employee turnover, Productivity, monetary incentives, open

communication
 4

Introduction

Motivation is the topic that is worthy of consideration within any organization as it is a very
important thing. Ideally organizations are composed of employees who have the ability to
keep the company successfully moving forward. However, the value of employees is
based on the level of their job performance. This performance depends on the effort these
employees put into their work, their ability and employer support, effort in part is
determined by motivation. Motivation is the desire that exists within a person that causes
that individual to act in a certain way. People usually act for a number of reasons, but they
are often tied to goals that have been set by themselves or others around them. Thus,
motivation is a goal directed drive. When the employee is motivated in an organization
they will have a higher productivity level, they will be more innovative, have a lower level
of absenteeism and turnover and along with these points there will be a stronger
recruitment. Our paper focuses on the two factors i.e., turnover and performance of the
employee.

If we imagine an employee, let's say who has a low level of motivation, they are working
at a slow pace, spending more time away from their tasks and occupying themselves by
spending time on their mobile. But most of all they are heavily unfocused and are not
willing to put their effort all into their work. This is not only a waste of the human resources
in an organization but such behavior of an individual in the organization could have a
negative effect on other employees, potentially holding back the entire company from
producing work to the highest standard or meeting important organizational goals.
Whereas on the other side, a motivated employee is enthusiastic, driven and tends to
take pride in their work. They strive to accomplish their tasks quickly and they have the
willingness to do a good job, both for themselves and for the company. Whether any
company is currently at the top, or on their way up, employee motivation will remain at
critical importance at every level. When the level of employee motivation drops, revenue
and company accomplishments will start to fall.

Motivation influences the willingness of people to work, and the willingness comes from
within. If the employees are motivated, they work faster and more efficiently, this will lead
to more output. An employee may have the capacity to work and be physically, mentally
and technically fit for it, but he/she may not have the willingness to work. So here we see
that Motivation creates a need and desire in the employee to present a better performance
standard. Motivation enables people to work enthusiastically. Motivation acts as a bridge
between the ability to work and the willingness to perform. Motivation is an efficient
instrument within the hands of management to maximize the efficiency of operations. A
worker could also be very competent, but no activity can happen until the individual is
willing to perform that activity. What employees do depend largely on what proportion and
why they need to try to do. Motivated employees are the ones who give greater
performance in the organization than the demotivated ones. They will put their maximum
effort into achieving the organizational goals and objectives. Motivated employees give
out better performance that would result in a higher productivity. The employees in the
organizations may be offered more incentive to increase their performance as doing so
their willingness towards their work will increase. Motivation will act as a stimulant for
improving the performance of employees.
 5

When an employee is Motivated, they have a tendency to remain within the Organization
more and their Absenteeism and turnover tendency gets low, and turnover create many
problems under factors like Recruiting, training and development of number of latest
personnel won't only take a long time but will not be cost effective to the organization also.
Motivation brings turnover rates lower. turnover rate may be a measurement of the
number of years an employee stays or replaced within the company. Highly motivated
employees are the foremost reliable and valuable assets to any organization. Such
employees are more loyal, punctual and regular towards their work and they stay on-job
for a longer period of time. In case of poor working conditions, lack of recognition and
poor relations with colleagues and superior’s absenteeism could demotivate employees
to work harder. When employees aren't satisfied with their job then they will not hesitate
to leave whenever they receive an alternate offer. Motivation helps in increasing the
morale of the worker. Higher level of motivation causes a high morale which can result in
a better satisfaction within the employee. When the workers are satisfied with their jobs
and are well motivated by offering them different financial and non-financial incentives
then they're going to not leave the work. Motivated employees are more likely to remain
in their roles as they can see the effects of their work and feel that the contribution of their
work has a positive effect in the organization. This will lead to lower training and
recruitment costs for the corporate as employee churn is reduced. Motivation results in
job satisfaction for workers. Employees are punctual and regular in their work schedule,
provided they get job satisfaction. Highly motivated employees are loyal and committed
to the organization. they're sincere and like to remain on the job for an extended period
of time. As a result, turnover intention is low.
 6

Literature review

Motivation

For motivation, Salancik, G. R, 1997, stated in the research paper (a case study in
Kurdistan regional government) that employees are motivated when they are recognized
and rewarded which makes them more focused towards the attainment of the company's
goal. According to Lumumba, M2001, as stated in a research paper (The Influence of
Work Motivation on Organizational Commitment in the Workplace), employees who
require knowledge, abilities, or talents will underperform if they are not motivated to put
in the time and effort required. Employee motivation is divided into two categories by
Herzberg (1965), hygiene factors and motivating factors. Company policy, interpersonal
interactions, working environment, compensation or job security are among the first
factors, while job satisfaction, recognition, responsibility, and advancement opportunities
are among the latter. Employees will be dissatisfied if these factors are removed.
Motivation varies because many theorists have developed their own views and models.
Some approaches focus on intrinsic motivators that are inside an individual while others
concentrate on extrinsic factors that enhance motivation externally. Each approach has
contributed to an understanding of human motivation. So, we can examine different
approaches to understanding motivation. The theory of human motivation developed by
Abraham Maslow has received a great deal of attention in academic and practitioner
settings. This needs theory of motivation assumes only unsatisfied needs motivate
individuals. Maslow classified human needs into five categories that ascend in definite
order until the more basic needs are adequately met a person will not fully strive to meet
higher needs. Maslow's well-known hierarchy of needs is physiological needs, safety and
security needs belongingness and love needs, esteem needs and self-actualization
needs. Frederick Herzberg’s motivation hygiene theory assumes that one group of
motivators accounts for increases in individual motivation because of enrichment and
other positive work characteristics; alternatively, hygiene factors can cause employees to
be dissatisfied with work. If these basic expectations are not adequately Addressed.
However, hygiene factors do not directly motivate employees Herzberg’s motivators
include achievement recognition, work itself responsibility and advancement and those
hygiene factors include things like interpersonal relationships, company policy and
administration supervision salary and working conditions. People want to be treated fairly
at work which is the basic underlying theme embedded within equity theory. Equity is
defined as the perceived fairness of what a person does compared with what the person
receives for doing it inputs are what a person brings to the organization including
educational level, age, experience, productivity and other skills or efforts. Outcomes
received by a person other rewards obtained in exchange for these inputs’ outcomes
include pay benefits, recognition of achievement prestige and other rewards received
motivation is also influenced by what people expect if expectations are not met people
may feel that they've been treated unfairly and consequently become dissatisfied. this
theory states that individuals based decisions about their behaviors on their expectations
that one or another alternate behavior is more likely to lead to desired outcomes there
are three aspects of these behavior outcome relationships effort performance
expectations refer to employees beliefs that working harder will lead to high performance
reward linkage considers individuals expectations that high performance will actually lead
 7

to rewards and the value of rewards refers to how valuable the rewards are to the
employee there is a motivating effect associated with making successful progress and
meaningful work some would argue that this is the most powerful basis for motivation.
According to Lunenburg, 2011, Tai, W. 2006 it is essential to ensure that employees
remain committed to their goals as lack of commitment will make the goal unattainable.
When the goals are moderately complicated goals which are achievable and challenging
at the same time. It is said that motivation and performance will be achieved. Appropriate
incentives encourage employees by instilling in them a positive attitude about work, which
boosts the organization's efficiency. Motivation is made up of psychosomatic mechanisms
as well as psychological variations that are utilized to explain employee behavior on the
job in terms of efficiency, happiness, well-being, and performance.

Productivity

Employee productivity refers to an assessment of the efficiency of a worker towards their

job. Productivity is usually evaluated in terms of the output an employee produces in a
specific time frame. Typically, the productivity of any employee is determined by the
output of their performance. Higher the performance level will reflect a high level of
productivity in an individual. Most of the success of any organization relies upon the
productivity of their workforce, employee productivity is an important consideration for
businesses. According to Zameer, et al, (2014) as stated in a research paper (impact of
motivation on employee performance and turnover in Pakistani educational institutes) as
the employee’s performance increases with the increase in motivation. There is a
correlation between employee productivity and their performance . When the level of
employees' performance increases , it implies that the employee is showing a high level
of productivity in their task. Hence, there is a positive relationship of motivation with
employees' performance. Which also implies that there is a positive relation between
employee motivation and productivity. According to Ali, R., and M.S. Ahmed, 2009,
employees who are motivated to enhance their job performance can assist their company
to succeed as it will increase their productivity level. In addition, when people appreciate
what they're doing, they're more productive. According to Griffiths (2001), achieving
personal goals helps employees stay motivated and feel good about themselves, helping
them to continue to provide higher output. Managers strive to motivate people in the
organization to perform at high levels . This means getting the employees in the
organization to work hard and come to work regularly and make positive contributions to
the organization’s mission. The productivity depends on ability and environment as well
as motivation. The relationship can be stated as follows

P=m*a*e

Where P =productivity M = motivation, a = ability and e= the environment.

To reach high levels of job productivity an employee must want to do the job well, be able
to do the job effectively with availability of the materials, resources ,equipment and
information required to do the job. The environment's deficiency in any one of these areas
hurts performance. A manager should thus strive to ensure that all three components
 8

format in most settings; motivation is the most difficult factor to manage. If an employee
lacks the ability to perform, he or she can be sent to training programs to learn new job
skills, if the person cannot learn those skills, she or he can be transferred to a similar job
and replaced with a more skilled worker. If an employee lacks materials, resources,
equipment and more information the manager can take steps to provide those resources
but if motivation is deficient the manager faces a more complex situation of determining
what will motivate the employee to work harder which will increase the level of employee
productivity.

Turnover

Many organizations have found that turnover is a very costly problem. turnover is the
process in which employees leave an organization and have to be replaced. the extent to
which employers face high turnover rates and costs often varies by organization and
industry for example the Society for Human Resource Management society calculates
that the average for all industries is 15% annual turnover but companies in service
industries such as restaurants have an annual rate of 35 % entertainment and recreation
has 27 % turnover and retail 22% health care and social assistance have 20 % annual
turnover. Research shows that many factors can lead to Turnover for instance job
dissatisfaction, low levels of various kinds of work commitment ,work-life conflict and
decreased justice can encourage people to quit their jobs .Forces such as the availability
of other employment opportunities and unemployment rates are also tied to employee
turnover. turnover typically goes up as unemployment rates drop and dissatisfied
employees can find other jobs According to Uzonna et al. (2013), the turnover decreases
with the rise of motivation and vice versa. Hence, there is a negative relationship of
motivation with employee turnover. As per the research paper impact of motivation
principles on employee turnover, according to Crainer,2004, physical difficulties,
absenteeism, and turnover increase when subordinates lose motivation and their
performance declines. In the similar manner, disruption with internal motivation as
according to Blohlávek (2008), Jenkins (2009), and Ramlall (2004), is one of the causes
of turnover. Moreover, leaving a job is an extreme case of a challenging environment and
a long-term employee's frustration as stated by Kolman, 2003; and Linhart, 2003. In one
of the research papers in order to understand the relation between employee motivation
and turnover . The Pearson correlation coefficient model was used. The correlation
coefficient model doesn't just tell us whether two variables move in the same or opposite
direction like the covariance does; it also indicates how strong the relationship is between
those two variables. i.e., employee motivation and turnover. The value ranges from
negative 1 to 1 as such a 1 indicates the strongest possible positive correlation and think
of it as perfect direct proportionality and negative 1 indicates the strongest possible
inverse correlation i.e., a perfect inverse proportionality and 0 indicates that there's no
correlation at all. Pearson correlation coefficient is represented by the letter R and
calculated by dividing the covariance by the standard deviation of one variable multiplied
by the standard deviation of the other .
 9

Analysis

Motivation is generally agreed to be positively correlated to the employees’ productivity

and turnovers of an organization. It might not be the only reason, but it has an effective
contribution for no doubt. In today's business world many organizations are aiming
towards maintaining good working performance and lower the turnovers rates,
organizations are willing to put effort and invest into motivating and a proper retention
policy, employees are looking for freedom and personal respect to make the best out of
their career. Motivation begins with the individual. Listening to employees’ individual
needs and concerns is the first step to preventing them from straying.

In order to understand the implication of motivation on employee productivity we reviewed

3 research papers that studies the implication of motivation on employee productivity in
different banking institutions. The 1st one was where the impact of motivation on worker
productivity was investigated using a case study of private banks in the Kurdistan regional
administration. Here about five banks with a total of around 130 personnel were used in
the study. They used a questionnaire method to collect the data where only 128 of the
130 questionnaires distributed to the population were returned. Participants were asked
to state whether or not they were allowed to contribute and participate in the goal-setting
process. 42.31 % agreed, 20.77% were neutral, 16.15 % disagreed, 13.08 % strongly
disagreed, and 7.69 % strongly agreed, according to the survey data. The participants
were asked how important their objectives were to the organization's objectives. The
results revealed that 10% of respondents thought their goals were negligible, 30% thought
their goals were simply insignificant, and 60% considered their goals were highly
significant. The participants were asked to rate their satisfaction with their pay, as per the
answers 8.462 % were found to be content, 8.77 % were dissatisfied, and 10.77 % were
undecided. When asked about the amount of recognition and awards in the organization,
30% of the participants thought the recognition and rewards were adequate, while 70%
thought the rewards were insufficient. From this we come to know that the administration
at private banks in the Kurdistan regional government allows employees to participate in
goal setting and that they understand the importance of the goals in relation to the banks'
overall aims and objectives. Staff in the private banks of the Kurdistan regional
government were dissatisfied with their salaries, which demotivated them and harmed
their performance. This will lead towards a lower productivity. Here what we find is that
the recognition and incentive systems used in private banks in the Kurdistan regional
government were insufficient, and consequently did not sufficiently inspire staff. This
research is useful specially for the upper-level management in any organization. So here
the workers were engaged in setting goals whereas the lack of salary, rewards and
recognition created demotivation affecting their performance. We know that when the
performance of an employee is hampered their productivity automatically declines. So,
as a result, the top level of any organization should engage employees in the decision-
making process to make employees feel a sense of belongingness and at the same time
they must also provide employees with adequate rewards in order to motivate them and
to take the organization to achieve the new height of success. A larger compensation will
make them feel more valuable, resulting in a quality performance level. Similarly, as the
current recognition and reward systems in private banks are insufficient, this study
recommends that private banks discuss with workers on the best method to make the
 10

present systems fairer for all, resulting in increased worker motivation and improved
performance.

Similarly, another research article that studies the Impact of Motivation on Employee
Performances of Karmasangsthan Bank Limited, Bangladesh. As per this researcher
paper Extrinsic motivation, Job enrichment and performance appraisal, Relationships and
security, Authority to make decisions, and Growth opportunity were the four areas in
which the respondents' expressions of motivation were categorized for data analysis. In
the case of expression towards extrinsic motivation, the majority of respondents (90%)
stated that money is the most important element motivating employees to improve their
performance, while 68 % said monetary incentives drive employees to improve their
performance. Furthermore, 77% of respondents thought that pay packages encourage
employees to enhance their performance further helping for productivity to increase.
Moving on to the effect of job enrichment and performance appraisal, 72% of respondents
agreed a positive work environment motivates them, 52% responded that responsibilities
motivate them, 65 %said promotion motivates them, and 72 percent said recognition and
appraisal for work done motivates them. On the basis of Effect of relationships and
security: 78%, 71% and 73% respondents agreed that the three sectors Relationship with
superiors, Relationship with peers and Job security motivates employees to improve their
performance respectively further causing productivity to rise. When it came to the effect
of authority to make decisions and growth opportunity, 53% of respondents agreed that
ability to make decisions inspires employees to improve their performance, while 76%
responded positively towards Growth Opportunity. So among the four motivating
categories we found out that extrinsic motivation is one of the huge factors for motivating
employees to perform well, but all of the factors are equally important in order to achieve
better results and performance from employees. When it comes to incentives and good
accommodations, 79% of all respondents strongly agreed that bonuses drive them to do
better at work. Moving on to the availability of car loans, 66% of all respondents strongly
agreed that this offer could motivate them to improve their performance. Around 51% of
employees said that recognition and appreciation motivate them to be more productive
and perform better, while 44% agreed that wage increases, and career growth motivate
them to be more productive and perform better. Finally, 80% of employees said that giving
them more responsibilities improved their performance.

In this paper we found that money is not the only motivation factor that influences
employees to work harder and to the best of their ability and satisfaction. There are other
factors which play a huge role in increasing the level of motivation. In KCB, career
advancement, promotion, Job security, car loans, good accommodation and
interpersonal relationships has enhanced employee motivation over the years and
brought great results to the organization whereas results from the factors like policies
relating to car loans and job stability are improving, but bonuses still need to be modified
to be an effective motivation. Moreover, performance enhancement through additional
responsibility, trust, respect, employee recognition and appreciation looked to be minimal,
if not non-existent, and staff salary was insufficient in light of the current economic
situation, negatively impacting their overall performance.
 11

In the research paper of the Kenya Commercial Bank the researcher investigates the
effect of employee motivation on performance by considering three variables: monetary
incentives, on monetary incentives and training to find out the impact of motivation of
employees in productivity of tasks. The research was carried out with an assumption that
motivation has a direct impact on job performance and less turnover. The research was
done by survey of individual interviews with KCB employees about the motivating factors
in their organization. The dependent variables are non- financial rewards, financial
rewards and training whereas the independent variable is job performance. The research
paper mentions that about 50 % of the employees answered that monetary incentives
motivate them compared to non – monetary incentives. About 55% of employees
answered that promotion is the most important factor of motivation among ten factors.
About 71% of employees marked that they strongly agree that trust and respect is one of
motivating factors for them and more than half of the employees responded that capacity
development of staff is another important factor of motivation. This in Maslow’s opinion is
what he termed self-actualization. When it comes to incentives and good
accommodations, 79% of all respondents strongly agreed that bonuses drive them to do
better at work. Moving on to the availability of car loans, 66% of all respondents strongly
agreed that this offer could motivate them to improve their performance. Around 51% of
employees said that recognition and appreciation motivate them to be more productive
and perform better, while 44% agreed that wage increases, and career growth motivate
them to be more productive and perform better. Finally, 80% of employees said that giving
them more responsibilities improved their performance. Here we found out that money is
not the only motivation factor that influences employees to work harder and to the best of
their ability and satisfaction. There are other factors which play a huge role in increasing
the level of motivation. This implies that the research achieved its aim, as workers within
the range were in the best position to articulate their views better concerning the issue
of motivation. The findings show that the employees disclosed that bonuses motivated
them to increase their performance resulting in increased productivity, declaring that the
bonuses come at a time when things are hard so to speak, giving them a relief. Despite
improvements in policies relating to vehicle loans and job security, bonuses continue to
be a source of contention. Moreover, performance enhancement through additional
responsibility, trust, respect, employee recognition and appreciation looked to be minimal,
if not non-existent, and staff salary was insufficient in light of the current economic
situation, negatively impacting their overall performance. This implies a negative effect
on the organization due to increased turnover and decreased productivity. From this
paper we get the knowledge that employees should receive training on how to adapt to
changing economic needs, and to progress their careers before pursuing higher wages.
The management should have a clear chain of communication with the employees which
will make it easy for them to understand their employee needs and create an environment
of trust. The management should focus on maintaining proper communication with the
employees, which will allow them to better understand their requirements and build a
trustworthy environment further motivating them and facilitating towards an increment in
the productivity and performance level.

In order to understand the implication of motivation on employee turnover we reviewed

3 research papers that studies the implication of motivation on employee turnover in
different institutions. We reviewed a research paper that focused on the impact of
 12

motivation on turnover. Two quantitative surveys using two questionnaires were used to
obtain data for the evaluation of causes for employees leaving their jobs. On the basis of
the output of content analysis, five keywords were chosen, which were developed into
general motivation principles. Principle 1 – Keyword Positive, inspiring leader: •Principle
2 – Keyword Care for employees: •Principle 3 – Keyword Creating and sharing goals,
tasks and strategies:•Principle 4 – Keyword Open communication: •Principle 5 – Keyword
Praise, recognition and appreciation. A document analysis was performed to assemble
the motivating principles that influence employee turnover, and then a factor analysis was
conducted to validate the generated keywords and principles. All factors together
explained 69% of the internal organizational reasons to leave the job position.

Factor 1 demonstrated a link between respondents' personal and professional lives, as

well as an excessive workload. surveyed employees are aware of their private lives, and
they know their value, sense and goals. Factor 2 showed that sampled employees think
about leaving the organization if their performance and effort are underestimated. Factor
3 showed an unpleasant corporate culture shown by the lack of support for new projects,
initiatives and ideas. Employees surveyed were dissatisfied because they are unable to
voice their own ideas for improving organizational practices and their own job. Factor 4
showed the connections between Lack of feedback, Lack of honesty, ethics and integrity
in the organization and Lack of focus on quality. Workers aren't being honest with one
another, knowledge isn't being shared, and quality isn't being backed up. Employees with
ethical principles cannot tolerate such organizational actions because they are
contradictory to their views. Hence, employees are hesitant to stay with companies if they
do not support and believe in the quality of the work. Factor 5 combines the determinants
Lack of honesty, ethics and integrity, Unfair treatment and Lack of recognition. Surveyed
employees consider their jobs not just as a duty, but also, they see them as a possibility
to grow and they want to feel proud of their organizations and of the positions they hold
in the organization. In factor 6, Employee’s experience disproportions between expected
and real situations inside the organization due to a mix of variables such as lack of
honesty, ethics, and integrity, lack of acknowledgment, and lack of clear expectations.
Employees showed their high level of integrity and initiative during their work once again
but managers and organizations, unfortunately, do not expect or support effort or
initiative. In factor 7 Employees dissatisfaction is combined with lack of support of new
ideas, Lack of focus on quality and Lack of trust in top management. Employees see an
unclear or insufficient vision or strategy of the organization .Efforts to change such a
situation are ignored by company management and therefore employees decide to leave
the organization, which does not have a clear and long-term sustainable vision and
strategy. Factor 8 showed that Employees would like to use their knowledge, abilities,
and experiences, but the lack of interest in future growth, productivity, and support for
new ideas in the organization will not allow employee to improve their skills and appear
to be rigid, with set processes and procedures that provide no room for innovation,
productivity, or efficiency. So, employee turnover occurs as a result of such
incompatibility, and they choose to apply their skills elsewhere. The 9th factor combines
the determinants such as Lack of clear expectations and Negative relationship with a
colleague(s). Because each team member's expectations are fundamentally distinct, the
combination of these determinants reveals unsatisfactory relationships within hierarchical
levels and, as a result, an improper team structure. Employees must be recruited into
 13

posts and positions in order to comply with colleagues and the collective in order to
establish smoothly operating teams. If there is no such compliance, employees will not
stay longer than is necessary, resulting in a higher turnover rate and wasted costs for the
company. The outputs of factor 10 showed lack of resources or fight for resources in
organizations. The combination of the determinants such as lack of clear expectations
and lack of sources leads to reflection on how organizations communicate employees
about the needs, requirements and opportunity of job positions during recruiting
interviews. This seems to be inadequate, because new employees have completely
different ideas about how and what kinds of service and resources they will utilize. If they
do not have access to the necessary resources, it leads to conflict leading to the
employees to leave if it is never solved. The 11th factor showed the legitimate uncertainty
of employees regarding the futures of their organization. The reasons for these concerns
are clear: unfair payment practices and uncertainty about the company's future. Many of
the employees surveyed have such strong feelings about their jobs that they feel
compelled to resign before the negative consequences of legal issues become reality.
Factor 12 should be called Conservative supervisor, because it connects Lack of focus
on productivity and Negative relationship with the supervisor(s). It appears that
employees often leave job positions because of problematic relationships with their
managers. Factor 13 also explains the reasons for leaving the organization as a reduction
in concerns about future job positions. The origin of the problem is clearly indicated by
the combination of the factor’s Unfair payment practices and Uncertain employment
stability. Employees feel threatened in their jobs because they see an organization that
uses unfair payment practices with consumers, partners, and suppliers as a source of
insecurity.

So, to avoid a negative turnover, the organization should focus on increasing motivation
and applying the resulting motivation principles. From all of the above reports we find that
Employee demotivation caused by supervisors' ignorance of their initiatives, veto of any
improvements and ideas, and inability to freely communicate their recommendations and
opinions are all aspects that promote a positive, inspiring leader. Supervisors who ignore
productivity and growth while communicating inadequately with their subordinates create
employee aversion and demotion. Employee care is also one of the most important
motivational principles since it is backed up by aspects that, taken together, criticize the
imbalance between work and personal life, as well as work overload and a lack of
corporate culture. Employees are demotivated by a lack of concern and indifference if the
organization does not care about ethical standards, equitable treatment, approach, or
labor appreciation. Thus, the tendency to leave the job position occurs.

The factor study indicated that employees are demotivated if an organization lacks
feedback, integrity, honesty, and ethical communication, a lack of future goals and plans,
and a lack of focus on quality, resulting in a loss of customers. In the end, a lack of quality,
sources, innovative support, and clear expectations leads to distrust in the organization.
According to the employees surveyed, open communication is a key motivational factor.
The results of the factor analysis revealed communication issues, which eventually led to
staff turnover. Employees are more likely to leave if they are unaware of payment
methods or believe they are unjust, and if no one in the organization adequately
communicates the true nature of the problem. Employees are concerned about the
 14

company's future as well as their personal job prospects. Managers frequently overlook
and ignore motivating factors like praise, acknowledgment, and gratitude. Employees are
typically unsatisfied (according to the factor analysis results) with no prestigious
employment where unfair payment methods play a role, as assessed by stakeholders
and the general public. As a result, in this type of organization, the social statute and
position of employees are important. Employees do not want to be in such a position and
instead want to leave and change jobs. Demotivation is so severe that it leads to a
decision on whether to leave or stay in the organization if employees do not feel
appropriately compensated for their exerted effort and drive, or if they see inequality in
the appraisal compared to other employees. From these papers we can make out that
employees will not be content even if motivation does not work as expected if the boss
does not treat them with respect, does not acknowledge their contributions, and does not
interact with them. When motivation is gone, performance suffers, which leads to mental
health issues, absenteeism, and turnover. Principles of motivation are unable to influence
the entire motivation role. No motivation principle can be effective if the stimulus is in
conflict with subordinates' internal motivations, the organization's motivation statements,
and managers' behaviors.

Similarly in the research done by the Faculty of Business Management at University

Technology MARA, Malaysia. The purpose of their study was to determine the
relationship between work motivation and organizational commitment among employees
of a Dungun, Terengganu-based engineering firm. So here Motivation has been used as
an independent variable, while commitment is used as a dependent variable, and they
have proposed a hypothesis that these two variables have a positive association.
According to the research, the sample size for the study consisted of a total of 70
engineering company permanent and contract personnel. Employees were given a set of
questionnaires in which they had to score organizational commitment and job motivation
on a five-point scale ranging from "1-strongly dissatisfactory" to "5-strongly satisfying."
According to the findings, the correlation between organizational commitment and work
motivation is 0.772. There is a strong link between the variables when Pearson's r is close
to 1, and since the result is 0.772, which is close to 1, it shows that organizational
commitment and work motivation have a strong positive relationship. This suggests that
higher work motivation leads to higher employee loyalty to the company, and vice versa.
Ultimately, it is seen motivation and commitment (productivity and retention) are
significantly linked and have a positive association. Workers who are not driven to work
will underperform and will not commit to the organization, even if they are capable of
doing so. As a result, in order to avoid bad performance in the workplace, a manager
must continuously consider increasing employee motivation. As a result, managers must
be aware of their employees' goals and needs in order to effectively influence them.
employees will have a sense of belonging and will be willing to sacrifice personal goals in
order to achieve the company's objectives. This research paper helps to analyze the
relationship between the work motivation and organizational commitment among
employees. As per the findings, these two variables have a strong positive relationship.
It is useful for managers who want to increase the commitment of an employee, then they
should consider boosting employee work motivation. Likewise, managers can also
implement open communication, participation in decision-making, and conflict resolution,
which will make employees feel valued and driven, resulting in loyalty. Thus, if a firm
 15

wants its employees to be more dedicated to it, it should consider boosting employee
work motivation.

The next research paper has used a case study of technical, vocational education and
training institutions to investigate the influence of employees’ motivation on staff turnover
in Nyeri County, Kenya. The researcher targeted Board of Management employees as
the target population of the study from the three institutions. The target population of this
study was one hundred and thirty-two (132) employees from TVET institutions. Nyeri
County thus the response rate was achieved at 97.0%. The researchers used both open
and closed ended questionnaires for collection of data. The study carried out on staff
perception on turnover in Nyeri County, showed a great impact of motivation on
employees’ productivity. The researchers found that for the last five years, employees
have been leaving their jobs after working for less than three years, making the finance
department spend money while paying them their unbudgeted benefits in trying to fill in
the positions left vacant. The research shows that employees are changing their job from
one organization to another driven by remuneration or better salary. This turnover has
been greatly experienced in most tertiary institutions and as a result, there is not only
decrease in the productivity but also qualified and well experienced professionals have
been leaving their positions. However, in Nyeri County, the organizations surveyed with
employee recognition programs in place had a 51% increase in employee retention. The
findings further revealed that the respondents were only satisfied with workplace
environment factors hence if TVET institutions continue focusing on these factors only
without addressing remuneration, career development opportunities and internal
promotion factors the employees will be demotivated which may lead to decrease in
productivity and increase in staff turnover. Overall, the findings of the study revealed that
remuneration, career development opportunities and internal promotion had a negative
effect leading to staff turnover in TVET institutions while the source of motivation for them
was only proper working environment. We also found that the lack of training and
promotion opportunities were the main factors that lead high performing employees to
leave, leading to less productivity in the organization. It is worth noting that training alone
does not lead to turnover. We can conclude that remuneration is significant relative to job
satisfaction but has a negative effect on turnover intention. As there is a strong impact
between turnover intention and remuneration as compared to job satisfaction, TVET
institutions should review both monetary and non-monetary motivational factors to reduce
the rate of staff turnover. They should also review employee’s salaries, fringe benefits
and incentive by ensuring that they are relative to the salary received by other employees
who have similar qualifications in the other sectors, and this could motivate employees
working in TVET institutions to offer quality service to their clients. They can also increase
productivity by considering policies that address internal promotion and career
development opportunities of employees.

In another article that evaluates the impact of motivation on employee productivity and
turnover as a whole we found similar results. The research was conducted at Zengeza,
Harare, Zimbabwe. Twenty employees were chosen from a population of 25 participants.
In the research paper, the researchers used “authority to make decisions” as a motivation
tool for the survey where it was found that 55% of the respondents highly agree that
authority to make decisions from the superiors motivates workers to increase their
 16

performance and hence organizational effectiveness. In the case of growth opportunity

as a tool of motivation, 75% of the sample of Zengeza workers highly agree that growth
opportunity increases employee performance, 15% agree with this, 5% were uncertain,
5% disagree while no one strongly disagrees with this view of motivation. This implies
that an employee performs effectively if they know or feel that there is room for growth
within the organization, for example in terms of career development or leadership training
as a part of motivation. Majority of votes in these motivation tools shows that employees
generally prefer good interpersonal relations at work and a good job security system in
order to perform their tasks effectively and this has a favorable effect on organizational
performance with decrease in labor turnover. The research paper shows that a strong
positive connection exists between motivation and the performance of Zengeza
employees with decrease in their turnover and increase of productivity. This ultimately
implies that intrinsic and extrinsic motivational tools are very essential tools and can be
used to highly influence the desire and drive of workers to perform and meet
organizational goals , hence enhancing organizational productivity. The intrinsic factors
include motivation such as opportunity growth and authority to make decisions and
extrinsic sources include security and mutual relationship with each other as an essential
tool of motivating employees to decrease their turnover.

Lastly, the research paper that studied the Impact of Motivation on Employee
Performance and Turnover in Pakistani Educational Institutes was based on scientific
evidence and quantitative analysis with the inclusion of employees of chosen schools
and colleges of Karachi and Lahore cities of Pakistan. The sample size which is selected
by convenient sampling technique is 130 employees of educational institutes whereas
primary data is used as the type of data in this study. The analysis indicated that there
was a total of 110 respondents. As per the study, the impact of motivation on turnover is
86% which shows that the turnover in Pakistani educational institutes is being caused
86% due to demotivation and the rest is due to other factors which are not being taken
into account in this study. In the similar manner the impact of motivation on employee
performance is 79% which shows that the motivation is affecting the performance of
employees at the rate of 79%. The rest effect is due to some other factors which have not
been studied in this research. The research results showed that motivation ( by periodical
salary increment, job security, good relationship with colleagues, appraisal system of the
organization, promotion strategies, other staff members’ support, organizational
acknowledgement and recognition of employees’ work and organizational policy) have
significant impact on the performance of the employees. The regression analysis showed
that motivation impacts 77% on the performance of the employees. In a nutshell, the
findings of this study revealed that employee motivation has a somewhat strong positive
link with employee performance and employee turnover intentions. Hence, through the
findings we can conclude that the employee will give high performance when they are
motivated and will have lesser turnover intentions. As per the findings since the turnover
is being caused due to demotivation so, it is recommended to incorporate motivating
factors in the day-to-day operation. Likewise, provision of the salary, job security, good
relationship with colleagues, appraisal system, promotion strategies, recognition and
other motivating factors must be continuously provided to increase the performance. This
research is practically useful to the upper management's educational organizations as
they can determine whether their turnover is due to a lack of motivation or to other
 17

variables that contribute to poor motivation and turnover. The management can identify
their weak points in employee motivation and take appropriate steps to address them.
The findings revealed that motivation has a major impact on employee performance and
turnover intentions, emphasizing that educational institutions can boost employee
motivation by considering motivation variables, and this issue can be controlled.

Recommendation

Here we’ll try to recommend the solutions from the above analysis based on the
motivating theories that we’ve studied. So, the core problems that we’ve found while doing
the above analysis on employee productivity and performance are that the staff were not
satisfied with the salary that they were receiving although they were given the opportunity
to participate in the goal setting in their organizations, the recognition and incentive
systems used were insufficient, lack of non-monetary motivational factors, lack of trust
and responsibility to employees, lack of challenging tasks, etc. Although there are few
solutions such as larger compensation for the employees, discussion with the employees
regarding the compensation system, etc. we recommend using motivation theory such as
Two Factor Theory of Herzberg which will be helpful for these organizations to motivate
their employees. Using this theory, the organizations can determine that there are
hygiene factors and motivating factors that are present in the workplace. In this case the
organization needs to focus on the pay, salary and incentive factor of hygiene factor as
low pay will quickly cause dissatisfaction among employees. Employees should be
adequately compensated in order to keep dissatisfaction down. Similarly, in the
motivating factor recognition of the employees should be also done as part of increasing
job satisfaction is recognizing employees for the good work they’ve done. Motivation
theory holds that job productivity improves when employees are praised and recognized
for a job well done. By using this theory employees can be motivated, and their
productivity can drastically improve. Using programs such as Employee recognition
programs will greatly bring change in their productivity. The employees should be given
more autonomy as the more that employees feel that they are responsible and
autonomous, the greater the sense of achievement they will feel in their work. Autonomy
is a powerful motivator, and the more an employer can responsibly encourage employees
to take ownership of their work, the more motivated the workforce will be. Organizations
can utilize distinct methods such as Job Enlargement, Job Rotation and Job Enrichment
to increase the motivational factor. By using such methods employees won’t feel they are
doing the same routine work that is not making them productive. This will greatly improve
their productivity while also making employees feel recognized by the organization.

Similarly, the core problems that we identified in the research papers based on employee
turnover are employee demotivation caused by supervisors' ignorance of their initiatives,
inability to freely communicate their recommendations and opinion, unjust payments, lack
of job security, lack of recognition, etc. Although few solutions are mentioned in the review
paper, we recommend using Maslow’s Hierarchy of need theory to address the problems
and motivate the employees to stay in the organization. Every employee has different
needs according to their circumstances. When those needs are not fulfilled by their job or
organizations, they tend to leave the organization in search for a better job. So, to reduce
or avoid the negative turnover the organization should focus on increasing motivation.
 18

Using the Maslow’s Hierarchy, the employee retention can be greatly improved.
Employees may be at the bottom of the hierarchy at the survival level (also known as
Physiological) or at the top at Self-Actualization, depending on their position. In order for
incentives to offer a feeling of belonging, self-esteem, or opportunities for advancement
as part of self-actualization to be effective, employees must think that their basic needs
for survival and security are being satisfied. Firstly, for survival motivation (money), Many
entry-level employees are in a constant state of survival due to their lack of skills and poor
compensation. Motivation is nearly completely on money at this level of Maslow's scale.
A raise or a new job that pays merely Rs. 500 more per day can be life-changing and
indicates a significant pay boost based on the employee's lower income. Employees at
this level of survival are only one flat tire away from being bankrupt. This group's finances
are so closely regulated and carefully spent that nearly every position with a salary raise
is a good fit for them. So, giving them a pay raise or bonuses will make them stay at the
organization. Next for safety motivation (Security), when an employee's basic
requirements are satisfied, he or she is driven in a new way. At this level, personal safety
as well as work stability are important considerations. For some, safety may entail working
in an environment that has a zero-tolerance policy for violence. Others may be avoiding
unpleasant situations such as a terrible workplace where their supervisor is always yelling
at them. Whatever the safety issue, work settings that make employees feel unsafe instill
a sense of fear in them, which stops them from being productive and searching for a safer
job. Employees stay self-focused until their survival and safety requirements are met, and
they are unable to perform more than the absolute minimum to maintain their jobs. When
employees feel that their job is secure, they don’t want to go search for any other job as
we human beings prefer our comfort and safe zone.
For belonging motivation (being part of something), the third level focuses on an
employee's motives as they relate to others. Acceptance as a member of a group or team
is a powerful motivation at this time. Employee productivity and retention are enhanced
by motivators like recognition programs, varied work arrangements, peer relationships,
and being a part of a team, because approval from management is crucial to employees
at this level. Self-Esteem motivation (Respect and confidence in employees), with a
person’s sense of belongingness, an employee’s self-esteem becomes the next primary
motivating factor. When a supervisor expresses respect and trust in their employees'
skills, it can boost their self-esteem. This group is also concerned with job titles.
Employees at this level are frequently encouraged to engage in quality improvement and
public recognition initiatives, especially if doing so would win them prizes, certificates, and
the respect of their colleagues. Employees that have strong self-esteem and confidence
are far more inclined to "think outside the box" or "think like an owner," and strive to
enhance their own productivity alongside performance for the sake of the firm. Self-
Actualized motivation (Self -Directed), At this level, the employee is more concerned with
maximizing their own personal potential. Organizations should provide sabbaticals and
encourage employees to participate in outside educational opportunities, give public
speeches, and write articles and papers. Employees at this level are self-starters and
independent thinkers who will assist in expanding the organization. So, we recommend
using Maslow's hierarchy theory to determine at which level the employees of the
organization are at and similarly fulfilling their different needs.
 19

The organizations should also keep in mind that higher is an individual's perception of
fairness, greater is the motivation level and vice versa. Employees who perceive
inequality and are under negative stress have the option of resigning or performing the
bare minimum while working, resulting in lower output. Keeping a fair balance among
team members is one of the most basic things that businesses accomplish. Because
many workers contribute to work depending on what they expect to be paid, the company
may ensure that all team members are compensated equally for equal quantities of effort.
Regular team meetings can also be held by the company to ensure that everyone feels
appreciated for their work. Another major thing that the organization has to make sure is
that a comparable compensation offer has been made to the employees. Different
comparisons for within and outside the workplace may be made by team members and
employees. If an employee perceives that they are getting the same results as others in
their industry with the same level of expertise, they are more likely to stay in their job.
When determining pay criteria, the organization should look at external jobs for salary,
perks, and incentives information.

So, from this term paper we can also recommend the following points to improve the
employee productivity and turnover:-

● Share information and communicate openly, honestly, and frequently.

● Appreciate employees' efforts and accomplishments and ensure their future
security and recognition.
● Equalize compensation and remuneration, but only in the context of performance
and productivity.
● Encourage friendship and excellent relationships and seek to improve the
environment and open culture of the organization.
● Pay attention to recruitment and expectations, hire the right people in the proper
places, and treat them with respect.
 20

Conclusion

In the research papers we have found a significant role of employee motivational force
on their tenure in their present level of job affecting productivity in the organization. Thus,
the findings of the present study seem to identify some of the possible factors that may
help to restrain the employee downturn in the organization. The factors were monetary
rewards, recognition, competitive environment, increased responsibilities etc. Once these
factors are addressed, the employees feel motivated, and this can ultimately result in a
productive workforce. After the employees are hired, the organization’s aim should be to
retain their talents and carry out various motivational programmers, to strategically
channel their efforts in a way that drives individual performance in alignment with
organizational objectives. Management should keep in mind that there should be a
balance between the amount of effort required and the size or significance of what is
being offered as a reward to the employees to motivate them. Findings reveal employee
motivation has negative significant association with turnover intention which indicates that
higher positive motivation leads to decrease in employee turnover intention. Such results
give significant insights to the managers on how to reduce the turnover ratio, they should
work to improve the components and intensity of the comprehensive reward system. On
the other hand, we can find a positive association with productivity which indicates that
higher positive motivation leads to increase in productivity in the organization. As we know
that human capital is of immense importance to any organization, we learnt that as a
manager, one should consistently evolve strategies to improve employee retention and
mitigate employee turnover. Some of its strategies include offering recognition and
rewards when an employee performs well like bonus, promotion, department transfer etc.
Managers should also focus on implementing open communication, involve employees
in decision-making, and conflict resolution which will make employees feel valued in the
organization. Other than that, managers should equally focus on intrinsic and extrinsic
motivational tools such as opportunity growth and mutual relationship with each other to
reduce the impact of labor turnover with increase in productivity.
 21

References
1. Onanda, B. ( 2015, September). The effect of motivation on job performance.
International Journal of Scientific and Research Publications, Volume 5, Issue 9.
http://www.ijsrp.org/research-paper-1015/ijsrp-p4675.pdf
2. Salleh, S. M., Zahari, A. S., Said, N. S., & Ali, S. R. (2016). The Influence of
Work Motivation on Organizational Commitment in the Workplace.
https://www.researchgate.net/publication/305637762_The_Influence_of_Work_M
otivation_on_Organizational_Commitment_in_the_Workplace
3. Nurun,N., Islam,M., Dip, T.M., & Hossain, A.A. (2017). Impact of Motivation on
Employee Performances: A Case Study of Karmasangsthan Bank Limited,
Bangladesh. European Centre for Research Training and Development UK.
https://www.researchgate.net/publication/320243504_THE_IMPACT_OF_MOTIV
ATION_ON_EMPLOYEE_PERFORMANCES_A_CASE_STUDY_OF_KARMAS
ANGSTHAN_BANK_LIMITED_BANGLADESH
4. Mohammed, H.M., & French, L. (2019). The effect of motivation on employee
productivity (A case study of a private bank in the Kurdistan regional
government).
https://www.researchgate.net/publication/337561368_The_effect_of_motivation_
on_employee_productivity_A_case_study_private_bank_in_Kurdistan_regional_
government
5. VNOUČKOVÁ. L., & KLUPÁKOVÁ,H. (2013). Impact of motivation principles on
employee turnover.
https://www.researchgate.net/publication/284583830_Impact_of_motivation_prin
ciples_on_employee_turnover
6. Hussain, J., Saeed, M.Z., Ibrahim, D.M., & Iqbal, M. (2018). Impact of Motivation
on Employee Performance and Turnover in Pakistani Educational Institutes.
https://core.ac.uk/download/pdf/234641696.pdf
7. Wangare, K.G. (2017, July, ). Influence of Employees’ Motivation on Staff Turnover
in Technical, Vocational Education and Training Institutions, Nyeri County, Kenya
https://ir-
library.ku.ac.ke/bitstream/handle/123456789/19369/Influence%20of%20Employe
es%E2%80%99%20Motivation.pdf?sequence=1&isAllowed=y
8. Marewo, N.T., Mutongi, C., Nyoni,S.P., & Nyoni, T. (2020, December). The Impact
of Employee Motivation on Employee Performance
https://www.researchgate.net/publication/347510308_THE_IMPACT_OF_EMPL
OYEE_MOTIVATION_ON_EMPLOYEE_PERFORMANCE