EFFECTS OF MOTIVATION ON EMPLOYEE PERFORMANCE:

A CASE OF NMB BANK LIMITED

Submitted By

Pragya Khanal

Shanker Dev Campus

Roll No: 32/71

TU Registration number: 7-2-39-1753-2014

A Summer Project Report Submitted To

Faculty of Management, Tribhuvan University

in partial fulfillment of the requirements for the Degree of

Bachelor of Business Administration

at the

Shanker Dev Campus

Tribhuvan University

Kathmandu

April, 2018
 DECLARATION

This is to declare that I have completed the summer project entitled ‘Effects of motivation
on employee performance: A case of NMB Bank Limited’ under the guidance of Asso.
Prof. Achyut Raj Bhattarai and Dr. Sajeeb Kumar Shrestha in partial fulfillment of the
requirements for the degree of Bachelor of Business Administration at the Faculty of
Management, Tribhuvan University. This is my original work and I have not submitted it
earlier elsewhere.

Date: 4th April, 2018

Signature:
Pragya Khanal

ii
 ACKNOWLEDGEMENTS

The study ‘Effects of motivation on employee performance: A Case of NMB Bank

Limited’ has been done in order to fulfill the partial requirement for achieving the degree
of Tribhuvan University. Firstly, I would like to thank our report supervisor Asso. Prof.
Achyut Raj Bhattarai and Dr. Sajeeb Kumar Shrestha for their continuous guidance and
support they gave for the completion of the project. Also I would like to thank Deputy
Director Durga Dutta Pathak for his continuous guidance.
I would like to thank Campus Chief Asso. Prof. Krishna Prasad Acharya for providing the
required resources, working environment, library facilities and internet facilities for the
completion of my project.
Similarly, I would like to acknowledge all the respondents of NMB Bank Limited for their
support, cooperation, encouragement during the time of preparing the project.

Researcher,
Pragya Khanal

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iv
 TABLE OF CONTENTS

DECLARATION ...................................................................................................................ii
ACKNOWLEDGEMENTS ..................................................................................................iii
LIST OF FIGURES ..........................................................................................................viii
EXECUTIVE SUMMARY ................................................................................................ ix
CHAPTER I INTRODUCTION ............................................................................................ 1
1.1 Context Information ..................................................................................................... 1
1.2 Purpose of the Study .................................................................................................... 2
1.3 Significance of the Study ............................................................................................. 2
1.4 Limitations of the Study ............................................................................................... 3
1.5 Literature Review ......................................................................................................... 3
1.5.1 Conceptual Review ................................................................................................ 4
1.5.2 Empirical Review .................................................................................................. 9
1.5.3 Conceptual Framework ....................................................................................... 12
1.5.4 Statement of Hypotheses ..................................................................................... 13
1.6 Research Methods Used for Data Collection and Analysis ........................................ 14
1.6.1 Research method ............................................................................................ 14
1.6.2 Research Design ............................................................................................ 14
1.6.3 Population and Sample .................................................................................. 15
1.6.4 Nature and Sources of Data ........................................................................... 15
1.6.5 Data Analysis Procedure ................................................................................ 15
CHAPTER II DATA PRESENTATION AND ANALYSIS .............................................. 16
2.1 Respondent profile ..................................................................................................... 16
2.2 Descriptive Statistics Analysis ................................................................................... 18
2.2.1 Descriptive Statistics of Practice of Intrinsic Motivation .............................. 19
2.2.2 Descriptive Statistics of Practice of Extrinsic Motivation ............................. 20
2.3 Inferential Statistics Analysis ................................................................................ 21
2.3.1 Correlation Analysis ...................................................................................... 21
2.3.2. Test of hypothesis ............................................................................................... 22
2.4 Assessment of Performance Observed ....................................................................... 22
2.5 Findings and discussion ............................................................................................. 25
2.6 Summary of Major Findings ................................................................................. 27
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CHAPTER III CONCLUSION AND ACTION IMPLICATIONS .................................... 28
3.1. Conclusion................................................................................................................. 28
3.2. Action Implications ................................................................................................... 30
REFERENCES................................................................................................................... 31
APPENDICES .................................................................................................................... 33

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 LIST OF TABLES

Page No.
Table 1.1Summary of Empirical Review………………………………………………….11

Table 2.1 Gender…………………………………………………………………………..16

Table 2.2 Age ……………………………………………………………………………..16

Table 2.3 Marital status……………………………..……………………………………..17

Table 2.4 Qualification…………………………………………………………………….17

Table 2.5 Employment level………………………………………………………………17

Table 2.6 Descriptive statistics of practice of intrinsic motivation ……………………....19

Table 2.7 Descriptive statistics of practice of extrinsic motivation……………………….20

Table 2.8 Correlation matrix……………….……………………………………………...21

Table 2.9 Early reporting to work…………………………………………………………23

Table 2.10 Staying on the job……………………………………………………………..23

Table 2.11 Low absenteeism………………………………………………………………23

Table 2.12 Job commitment……………………………………………………………….24

Table 2.13 Exertion of more efforts……………………………………………………….24

Table 2.14 Delight to customers…………………………………………………………..24

Table 2.15 Result of hypothesis testing………………….………………………………..26

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 LIST OF FIGURES

Page No.

Fig 1.1 Conceptual Framework…………………………………………………………....13

Fig 2.6 Working period…………………………………………………………………....18

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 EXECUTIVE SUMMARY

Motivation is the process of encouraging the employees to do the assigned job by exerting
best of their efforts as well as their abilities. The employees are the fundamental sources of
providing standard services to the clients. Although information technology has become
the primary pillar of banks, human resources are the perpetual running forces in this sector.
The reason behind is the fact that all the functions performed by financial institutions
cannot be completed only with information technologies and electronic devices. The
objective of this study was to examine effects of motivation on employee performance.
Intrinsic motivation and extrinsic motivation were conceptualized as independent variables
while and their relationships were examined with employee performance as a dependent
variable.

Data had been collected from primary source with the use of questionnaire prepared on a 5
point Likert Scale. For this study a commercial bank of Nepal, NMB Bank Limited was
chosen as the population. The researcher has chosen NMB bank because this bank has
been awarded as the ‘Bank of the year 2017’ among existing commercial banks in Nepal.
A sample of about 30 people is selected from the population through probability sampling
method. The 30 samples are selected from three branches of the sampled bank. This study
has used a descriptive and inferential research design. Descriptive statistics were analyzed
for frequencies and the mean, while inferential statistics were analyzed using correlation
and hypothesis testing. Data from the study findings is presented using tables and figures.

From the data analysis, it has been figured out that banks have been providing their
employees with various practices related to intrinsic motivation and extrinsic motivation.
The study determined that there existed a significant relationship between intrinsic
motivation and employee performance. From this study, the existence of a significant
relationship between extrinsic motivation and employee performance has also been
revealed.

This study came into a conclusion that employees reflect enhanced performance by both
intrinsic and extrinsic motivation factors but the relationship between intrinsic motivation

ix
and performance proves to be more positive as compared to the one between extrinsic
motivation and performance.

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 CHAPTER I
INTRODUCTION

1.1 Context Information

Motivation is the key of a successful organization to maintain the continuity of the

work in a powerful manner and help organizations to survive. Motivation is finding a need
inside the employees and help to achieve it in a smooth process (Riggio, 2013). Motivating
the staff leads to broaden their skill to meet the organizational demands. Each branch
manager should have the responsibility to work with the staff to find out their individual
needs and put them side by side to the organization needs (Nelson, 2013). Motivation is the
key of a successful organization to maintain the continuity of the work in a powerful
manner and help organizations to survive. Motivating the staff leads to broaden their skill
to meet the organizational demands. This first aspect of motivation we choose to describe
as internal motivation because the driving force comes from within an individual. The
second aspect is external motivation, is applied by the organization. This is because
employees are motivated to identify with organization in order to satisfy their varied needs
and desires. Until they have been identified and properly satisfied, they will never cease to
impede smooth running of the organizations. Motivation is one of the key ingredients in
employee performance and productivity. Even when people have clear work objectives, the
right skills, and a supportive work environment, they would not get the job done without
sufficient motivation to achieve those work objectives (Mullins, 2006). Motivation refers
to the forces within a person that affect his or her direction, intensity and persistence of
voluntary behavior. Motivated employees are willing to exert a particular level of effort for
a certain amount of time towards a particular goal or direction (Mullins, 2006).

The commercial banks have been very important in both national and international
economies. Their employees are the fundamental sources of providing standard services to
their clients. Commercial banks are one of the most strong and globalized sectors because
they use wide varieties of advanced tools and techniques for their functioning. Although
information technology has become the primary pillar of commercial banks, human
resources are the perpetual running forces in this sector. The reason behind is the fact that

1
all the functions performed by financial institutions cannot be completed only with
information technologies and electronic devices.
In such sector, it is not sufficient to totally depend on the people involved their
qualification, potential and experiences. It becomes highly necessary for motivating them
appropriately. The human resources working in a company must be motivated if the best
output is targeted to be achieved. Industries also believe the first aspect that is needed be
focused in order to improve staff performance and productivity is motivation followed by
ability. Motivation is the force which leads towards the attainment of objectives set. A
highly motivated person will work hard towards the achievement of organizational goal,
given the ability and adequate understanding of the job (Bateman and Snell, 1996).
This signifies the challenge for today’s employers and directors to plan
motivational programs which will encourage workers to enhance their job performance and
also increase their overall productivity. Accepting this challenge, today learned managers
of commercial banks are also embracing motivational packages for retaining the human
resources and supporting them in the race of gaining competitive benefits in the market
they are involved so far.

1.2 Purpose of the Study

The general objective to carry out this research was to identify the effects of
motivation on employee performance one of the commercial bank located in Kathmandu.
Following were the specific purposes of this study:
To investigate the current intrinsic and extrinsic motivation practices used in the
commercial banks.
To examine the effect of intrinsic motivation factors on the performance of the
employees.
To examine the effect of intrinsic motivation factors on the performance of the
employees.
To assess the ways in which employees are influenced by motivation practices.

1.3 Significance of the Study

Highly fluctuating work environment always seeks for motivated employees. It is

very necessary that employees give maximum efforts to their tasks. For addressing this
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necessity, managers have to understand their position and performance related to employee
motivation. It is also very necessary for them to derive efficient performance from their
employees.
The significance of this study is to improve the human resource performance in the
commercial banks. This research will help managers to know the reasons behind the
choices embraced by their subordinates. It will also help them to increase the human
resources performance by modifying their decisions with the help of findings of the
research. Likewise, this study is to note that many people are not exclusively motivated by
cash or money. A large body of their motivation is associated with the tasks they
completed, the ambitions they reached, scopes for future advancement, working
surrounding and nature of relationship with their colleagues and supervisors. Particularly,
the study has emphasized the effect of motivation on the employees of commercial banks
of Kathmandu. This report would also serve as a guideline for future researches. It can
facilitate in theory building for literature review. The research will meet the partial
requirements of summer project of BBA.

1.4 Limitations of the Study

While carrying out this research, many issues generated that might have limited
the accurate or true value of the reported results. There was limited time for the researcher
to explain any ambiguity with the questions given. There were some difficulties in
receiving the employees' responses to the questions on required time because of their
heavy workload and the responsibilities they had. The sample size was small covering only
three branches of a commercial bank of Kathmandu.

1.5 Literature Review

A literature review is the systematic studying of published information in the

chosen field of research. It provides a foundation for the entire research work including the
basic research framework.

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1.5.1 Conceptual Review

Concept of motivation. Motivation is the individual’s desire to reflect the behavior

and willingness to give efforts (Rajput, 2011). Motivation can be divided into intrinsic and
extrinsic motivation.

Intrinsic motivation. Intrinsic motivation assists the employees in the job content.
Such motivation stays internal to the work and internally experienced by the employess.
The stimuli of motivation arrive from inside. Intrinsic motivation are granted by
individuals themselves. The reward is the behavior itself (Barto & Simsek, 2005).

Relationships building. Employees feel motivated when they have a flexible

environment for building good bonding and healthy relationships with their colleagues and
supervisors.

Decision making authority. Employees feel motivated and encouraged to perform

better when the management believes on their potential and also grant them chances and
authorities to get involved in making organizational decisions. This is more related with
empowerment.

Recognition. If the employees are provided with positive feedbacks and recognition
for their work appropriately and timely by using various ways of recognition, the
performance based behavior which the managers mostly wish to view on their workers
repeat again and again. Recognition is appreciation of performance or activity shown by
the employees.

4
 Challenging tasks. Management also provides challenging and creativity based
tasks to their employees so that they utilize their expertise to the best level possible. This
encourages the employees to work with calmness, patience and use complex tools with
greater ease. Challenging tasks also motivate employees in a unique way.

Extrinsic motivation. Extrinsic motivation means the external nature of motivation

which comes from external factors. They are particularly related to the context and
environment of the work or job. It is the blend of direct and indirect financial factors such
as salary, wages, benefits, paid leaves, bonuses, allowances, etc. Extrinsic motivation leads
to quick powerful result but such effects are not long lasting. Motivational stimuli comes
from outside in case of extrinsic motivation. Even though the stimuli comes from outside,
the result will be motivating the individual performing the task (Armstrong, 2006)

Salary. Organizations provide fixed payment to their employees for rendering

services to them. Salaries are not always equivalent to the work done. Employees are tend
to be motivated with higher salaries.

Bonus. Most of profits earning organizations also supply varieties of bonuses to

bring about upgraded performance of the employees within the organization. Employees
are given bonus either annually or semiannually.

Promotion. Promotion is the advancement of a worker from comparatively lower

job position to higher job position. When an employee is promoted, he receives higher
salary, greater responsibilities and highly defined titles. Promoted employees may get
responsibility for managing or supervising the work of other employees. Promotion
motivates them to improve performance.

Fringe Benefits. Fringe benefits are similar to allowances. Several benefits come
under it such as child care, car allowances, business travel insurance, clothing allowances,
etc.

5
 Reasons for motivating employees in organization. The performance of any
organization relies on the performance of the employees they have hired. The managers
should be capable of creating motivational job environment. Motivation and satisfaction of
employees stands to be a challenge for managers. This is why every manager should
understand the need of his employees. The major concern of many firms is to derive the
benefits from employees who are feeling positive and well satisfied with their work. They
should also equally be concerning to motivate unsatisfied employees. Such strategy by
managers of the firms create favorable situation for both the organization and its
employees.

Motivated employees and their commitment are fundamental to the productivity of

the work as they will perform with their full potential and with higher quality of efforts
(Jonathan, Christine & Yvonne, 2002). If the work force is motivated, it also provides
competitive advantage that the organization desires and enhanced performance helps the
organization achieve higher productivity (Michael & Crispen, 2009).The major challenge
in all commercial banks is the motivation of employees regardless of they are skilled or
unskilled or professionals. The employees’ motivation, their enthusiasm and energetic
behavior towards task fulfillment play key role in glory of an organizations (Cheng, 1995).

Theories on motivation

Various theories have been put forward to explain motivation. Some of them are
discussed below:
Expectancy theory. Expectancy theory was propounded by Victor Vroom. This
theory assumes that the willingness towards performing any activity depends upon his
expectation which is followed by the results or outcomes. According to this theory,
workers are motivated to work better and devote their highest efforts only when they
believe that the exerted efforts will result in good performance and such performance
finally grants good rewards. Expectancy theory emphasizes on the relationship between
efforts, performance, reward and personal goals of employees. These elements help to
know the level of motivation (Luneberg, 2011).

6
 Abraham Maslow’s hierarchy of needs theory. Abraham Maslow developed the
theory of human needs which is famously known as need hierarchy theory. He believed
that there existed needs in everyone and after the fulfillment of one need, some other need
naturally emerge. Each level of has to be appropriately satisfied before next higher level of
need joins the journey .The five levels of needs, according to Maslow are basic needs,
safety needs, social needs, esteem needs and self-actualization needs.

According to Abraham Maslow's theory, very few of the population reach the level
of self-actualization which is ranked on the highest level of need. The organization has the
necessity to satisfy various needs of its workers. Basic needs may be satisfied by the
monthly salary payments. However, it is very important to remember that payment may
satisfy other needs of the hierarchy such as safety and esteem as too. If the employees are
provided with health insurances and retirement benefits plans, assurance of job security,
social security, their security and safety needs get fulfilled. Social needs are also very
important because human beings are social animals. Employees may be satisfied by having
on a friendly or stress free environment. A beneficial workplace with proper
communication, sense of membership and belonging promotes team spirit and avoids
emotional hurdles. Picnics, parties, seminars, reunions and other get-togethers may also be
fruitful if the majority of employees are motivated by affiliation needs. Providing internal
and external recognition which includes promotional opportunities, definition of positions
recognition a one’s successes with words or through practical reward systems and job titles
are some of the ways towards fulfillment of esteem needs. Lastly, self-actualization needs
can be satisfied by providing personal growth opportunities, challenging work
assignments, sufficient freedom towards decision making (Maslow, 1954).

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 ERG theory. ERG theory is a propounded by Clayton Alderfer as modification of
Maslow’s hierarchy theory of needs. ERG theory has classified human needs into three
levels or categories, i.e. existence, relatedness, and growth. ERG theory argues that
hierarchy needs are not flexible, useful and practical in nature limited to mere theoretical
existence. Workers may require different needs at the same time. Existence is associated
with basic requirements which are needed for our survival such as hunger, thirst and safe
environment. The next category is relatedness. Relatedness needs are concerned with
interpersonal relationships like involvement with family, friends, supervisors, managers
co-workers, subordinates and employers. These are pretty much similar to the social needs
and esteem needs as of Maslow. Finally, growth is the higher level needs which are more
concerned with the self esteem and self actualization. This includes intrinsic desires for
personal development such as the desire to be creative, innovative, dynamic, productive
and to result in meaningful accomplishment of jobs thus assigned. The essence of this
theory is that we need to focus the multiple needs that may be driving individuals at a
given point to understand their behavior and properly motivate them (Alderfer, 1969)

8
 Fredrick Herzberg’s two factor theory. The theory developed by Fredrick
Herzberg is popular as Herzberg’s two factor theory. This theory watches motivating the
employees from different dimensions. It focuses on job experience which results in
favorable or unfavorable feelings about the jobs in place. He categorized the needs into
hygiene factors and motivating factors. Hygiene factors which are external to the job are
also widely known as the factors which do not work on motivating the employees but if
these factors are not observed, employees remain dissatisfied. Hygiene factors include
company policy, administration, supervision, relationship with supervisor, working
conditions, salary, relationship with colleagues, personal life, relationship with
subordinates, job security and status. If the minimum level of need satisfaction is to me
maintained, hygiene factors are very essential. Herzberg also felt that if managers do not
focus on hygiene factors, expected outcome will not be obtained. The second factor is the
motivating factor commonly known as satisfiers. The presence of such motivating factors
accelerates motivation and satisfaction but their absence do not lead to high level of
dissatisfaction. Motivating factors include achievement, recognition, advancement, work
itself, personal growth and responsibility. Herzberg had also concluded that an employee is
motivated to give his best effort if he gets a challenging task, freedom, opportunities of
growth and large scope of innovation from the management he is working with (Herzberg,
2003).

1.5.2 Empirical Review

Muchiri (2016) resarched on the effects of motivation and rewards on employee

performances as case study of Nairobi Serena Hotel, Kenya. The study was a self-
conducted research with a purpose of establishing effects of motivation and rewards on
employee performance in the hospitality industry. Descriptive research design was used.
Valid sample were declared as of 100. Self-administrated questionnaire was used to obtain
primary data. The data were analyzed using descriptive and inferential statistical analysis
methods.

The research revealed that there existed a significant relationship between extrinsic
rewards and employee performance. It also revealed that there existed a significant
relationship between intrinsic rewards and employee performance.

9
 Ndungu (2017) conducted a research on the effects of rewards and recognition on
employees’ performance in public educational institutions as a case study of Kenyatta
University, Kenya. The purpose of this study was to investigate the effect of rewards and
recognition on employee performance in educational institutions. Descriptive research
design was used. The valid samples were 92. Descriptive and inferential statistical tools
were used for this purpose.
The research confirmed that the employees in educational institutions are less
motivated by financial and recognition rewards and the variables contribute to a small
extent in improving job performance.

Omollo (2015) investigated the effects of motivation on employee performance of

commercial banks in Kenya as a case study of Kenya Commercial Bank in Migori state.
The prime objective of the study was to assess the effect of motivation on employee
performance of commercial banks. Descriptive research design was used. The valid
samples were 45. Descriptive statistical tools were used for this analyzing the data.
The research concluded that monetary rewards significantly affect the performance
of the employee in the organization.

Swart (2010) researched on the influence of employee motivation on productivity

in a merged real estate environment. The purpose of this research was to determine if
motivation had any influence on productivity in a merged real estate company and to
determine the influence of motivation on commitment and productivity. Descriptive and
explorative research design was used for the study. Valid Samples were declared to be 315.
Structured questionnaires were used for the data collection. For data analysis, Descriptive
statistics, specifically the bar charts were used.

The study showed a direct link between motivation, commitment and productivity
based on aspects like training, work experience, work knowledge, culture and tradition,
leadership styles and the understanding of information systems.

Amaka (2015) researched on the effects of employee motivation on organizational

performance of selected manufacturing firms in Enugu state. The main purpose of this
study was to investigate the place of motivation in increasing organizational productivity in
manufacturing industries. Descriptive research design was used. The valid samples were
10
303. Descriptive and inferential statistical tools were used for this analyzing the data.
Hypothesis testing and correlation analysis was performed.
The results showed that there is a significance relationship between motivational
tools such as wages; remuneration, recommendation, recognition, etc received by workers
and their performance.
Table 1.1 Summary of Empirical Review
Source Objectives Methodology Major Findings
Ndungu (2017) -To investigate -Descriptive -Employees in
the effect of research design educational
rewards and -92 valid samples institutions are less
recognition on -Descriptive motivated by
employee analysis and financial and
performance in inferential statistical recognition rewards
educational tools were used and the variables
institutions. contribute to a small
extent in improving
job performance.
Muchiri (2016) -To establish effects -Descriptive -There exists a
of motivation and research design significant
rewards on -100 valid samples relationship
employee -The data were between extrinsic
performance in the analysed using rewards and
hospitality industry. descriptive employee
statistical and performance.
inferential analysis -There exists a
methods. significant
relationship
between intrinsic
rewards and
employee
performance.
Omollo (2015) -The prime -Descriptive - Monetary rewards
objective of the research design significantly affect
study was to assess -45 valid samples the performance of
the effect of -Descriptive the employee in the
motivation on statistics tools were organization.
employee used.
performance of
commercial banks .
Amaka(2015) -To investigate the -Descriptive -The results showed
place of motivation research design that there is a
in increasing -303 valid samples significance
organizational -Descriptive relationship
productivity in statistics and between
manufacturing inferential statistics motivational tools
11
 industries. were used such as wages;
-Hypothesis testing remuneration,
and correlation recommendation,
analysis was recognition, etc
performed. received by workers
and
their performance.
Swart (2010) - To determine if - -Descriptive and - The results
motivation had any explorative research showed a direct link
influence on design was used between motivation,
productivity in a -315 valid samples commitment and
merged real estate -Descriptive productivity based
company. statistics were used on like training,
-Frequency analysis experience, work
was performed. knowledge and
leadership styles.

1.5.3 Conceptual Framework

The conceptual framework is the basis or foundation upon which the study is
established. It is within the framework of this theory that the entire study proceeds. A
theoretical model may be presented in a graphic form, which reflects the dependent and
independent variables or characteristics selected for inclusion in the investigation. In this
study the independent variable and dependent variables are motivation and employee
performance respectively. Motivation is further categorized down into two dependent
variables i.e. the intrinsic and extrinsic motivation. Thus, the main concern of the study is
to explore how intrinsic and extrinsic motivation affects the performance of the employees
of the selected bank.

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 Fig; 1.1 Conceptual Framework

Independent Variables

Intrinsic Motivation

• Relationships
Building
• Recognition
• Decision Making
Authority
• Challenging Tasks

Dependent Variable

Employee Performance

Extrinsic Motivation

• Enhanced salary
• Bonus
• Promotion
• Fringe Benefits/
Allowances

1.5.4 Statement of Hypotheses

The crucial starting point for research is to have an issue to investigate. In the
scientific tradition, this issue is normally expressed in the form of hypothesis. Hence, the
next logical step after theory formulation is to develop hypothesis. From the network of
associations drawn among variables, certain testable hypotheses can be generated. By
testing these associations among variables through appropriate statistical analysis, we can
obtain some reliable information on what kinds of relationships exist among the variables
operating in the problem situation. A hypothesis proposes relationship between two or
more variables. A hypothesis statement is derived directly from the statement of the
problem. There are two methods of stating the hypothesis: Null and Alternative. A null
hypothesis is a statistical hypothesis that is tested for possible rejection under the

13
assumption that is true. The hypothesis contrary to null hypothesis is known as alternative
hypothesis.
Based on the review of literature some variables have been identified as
determinant factors influencing purchase intention .This research tests the hypothesis to
determine the relationship between the various variables:
Hypothesis 1

H1: There is significant relationship between intrinsic motivation and performance

of employees.
Hypothesis 2

H2: There is significant relationship between extrinsic motivation and

performance of employees.

1.6 Research Methods Used for Data Collection and Analysis

Research is not only concerned to the revision of the facts and building up to date
knowledge but also to discover the new facts involved through the process of dynamic
changes in the society. Methodology is defined as a system of methods and rule to
facilitate the collection and analysis of data. It provides the starting point for choosing and
approach made of theories, data, concept and definition of the topic.

1.6.1 Research method

There are two basic research methods; qualitative research and quantitative
research. Qualitative research provides insights and understanding of the problem setting.
Quantitative research seeks to quantify the data and typically, applies some form of
statistical analysis. In this research quantitative research method was used in order to
collect and analyze the obtained data.
1.6.2 Research Design
Research design is a framework or blueprint for conducting the marketing research
projects. It explains the procedure necessary for obtaining the information needed to
structure or solve research problems. The research design specifies the details- the nuts and
bolts- of implementing that approach. To achieve the stated objective the research designs
employed in this study is descriptive research design. Under descriptive research design

14
facts and figures related to employees, the existing motivational approaches and
employee’s responses are described.
1.6.3 Population and Sample
For this study a commercial bank of Nepal, NMB Bank Limited was chosen as the
population. The researcher has chosen NMB bank because this bank has been awarded as
the ‘Bank of the year 2017’ among existing commercial banks in Nepal. A sample of about
30 people is selected from the population through probability sampling method. The 30
samples are selected from three branches of the sampled bank, Sitapaila, Pulchowk and
Kalanki, within Kathmandu City. Data used in this study are primary in nature. The
required data have been collected through structured questionnaire supplied to the
employees of NMB Bank. Thus, the employees of NMB Bank are the population of the
study.
1.6.4 Nature and Sources of Data

Primary data are collected through questionnaire method in order to incorporate a

large number of responses from the respondents. A standard questionnaire is provided to
the respondents i.e. the employees of NMB Bank Limited. Questionnaires are prepared on
5 point Likert Scale. The sample in the study is selected through random sampling method.
Secondary data have been collected through the Internet and magazines as wells as
newspapers and various books from the library. The secondary data mainly includes the
literature review from previous studies conducted in the same topic from various countries.
1.6.5 Data Analysis Procedure
The overall responses received were coded, compiled and analyzed through IBM
SPSS 20. The age, gender, years worked, levels of employees were recorded in order to
gain demographic information of employees. For data analysis, descriptive statistical tools
have been used. Frequency tables and bar graphs have been constructed. Similarly, to show
the effect of different variables on the employee performance, 5-point Likert scale has been
used and data have been analyzed through the descriptive statistics using mean and
standard deviation. Relationships between variables have been tested using correlation
analysis and hypothesis testing.

15
 CHAPTER II
DATA PRESENTATION AND ANALYSIS

The objective of this research was to develop a reliable and valid scale measuring
employee response towards motivation factors and the performance thus achieved. As the
study represents descriptive study rather than statistical analysis, only descriptive tool have
been used to present the data. Pie charts have been used to reveal general effects.
2.1 Respondent profile

This part includes the details of the respondent i.e. employees of NMB Bank
Limited. It includes the demographic part of the research.
Responses by Gender

Table 2.1 Gender

Gender Frequency Percent
Male 15 50
Female 15 50
Total 30 100

From Table 2.1, we can see that 50% of the employees are male employees. Similarly,
50% of the employees are female employees. This shows an equal number of male and
female among the respondent employees working at NMB Bank Limited.
Responses by Age

Table 2.2 Age

Age Frequency Percent

18-25 6 20
26-34 16 53.3
35-45 8 26.7
Total 30 100

From Table 2.2, we can see that according to the data provided by the employees,
employees within 18-25 years of age make 20% of the survey. Similarly, employees from
26-34 years of age make 53.3% and the employees from 35-45 years of that constitute
26.7% of the survey. This implies that the maximum number of employees is between 26-
16
34 years of age. Employees with age between 35-45 years come to the second position.
Employees who belong to the age group 18-25 years have the least frequency.

Responses by Marital Status

Table 2.3 Responses by Marital Status

Marital Status Frequency Percent

Married 17 56.7
Unmarried 13 43.3
Total 30 100

Table 2.3 shows that most of the employees were married. According to the survey, 56.7%
of the employees were married. Rest of the employees constituting of 43.3% were
unmarried.

Responses by Qualification

Table 2.4 Qualification

Qualification Frequency Percent

Bachelors 11 36.7
Masters 19 63.3
Total 30 100

Table 2.4 shows that there were no employees with intermediate level of educational
qualification. According to the survey, 63.3% of the employees had completed their
master’s degree while rest 36.7% had completed bachelors level of education.

Responses by Employment Level

Table 2.5 Employment Level

Employment Level Frequency Percent

Managerial 12 40
Non-managerial 18 60
Total 30 100

17
Table 2.5 shows that 40% of the employees were holding managerial position while 60%
of the employees were working on non-managerial position at NMB Bank Limited.

Responses by Working Period

Fig; 2.1 Working Period

Fig 2.1 shows that 16.7% of the employees had been working with the bank for less than
one year. Employees who have been serving the bank for 1-3 years long show 23.3% of the
survey. Likewise, employees working for 3-5 years long hold 33.3%. Employees working
with the bank for 5-10 years long also indicate 23.3% of the survey. There are only 3.3%
of employees who have been serving the bank for 10 years long and more. This shows that
employees who have been working on the bank for 3-5 years constitute highest frequency
and the ones working for more than 10 years are least.

2.2 Descriptive Statistics Analysis

Descriptive statistics is used to describe the basic features of the data in the study. It
provides simple summaries about the sample and the measures. Together with simple
graphics analysis, it forms the basis of virtually every quantitative analysis of data. It is

18
used to present quantitative descriptions in a manageable form. It helps us to simplify large
amounts of data in a sensible way. Each descriptive statistic reduces many data into a
simpler summary. Mean is the average of the number that is used to measure the central
tendency of data. It is determined by adding all the data points in a population and then
dividing the total by the number of points. Standard deviation is a measure of the
dispersion of a set of data from its mean. Correlation is used to test relationships between
independent variables and dependent variables. In other words, it’s a measure of how
things are related. The study of how variables are correlated is called correlation analysis.

2.2.1 Descriptive Statistics of Practice of Intrinsic Motivation

This section explores the practice of intrinsic motivation factors adopted by NMB Bank
Limited in order to motivate its employees through the descriptive analysis. These
construct of five different scale items are measured in a 5 point Likert scale: 1- Strongly
Disagree to 5- Strongly Agree. Here, a score more than 3 represents the intensity of
practice of intrinsic motivation. The opinion of respondents is observed by computing its
mean and standard deviation. Mean value gives the result of average condition of
respondents on how they feel and standard deviation gives the spread from the average
mean of the respondents. Following table represents the extent of overall presence of
relationships building, decision making authority, recognition and challenging tasks.

Table 2.6 Descriptive Statistics of Practice of Intrinsic Motivation

Code Statement Mean Std. Deviation
IM1 I have good relationships with my supervisors. 4.23 0.568
The management believes on my ability and
IM2 3.73 0.583
grants me some decision making authorities
IM3 I receive recognition for my work 3.93 0.583
IM4 My manager offers me with challenging tasks 4.10 0.548

Table 2.6 expresses the descriptive statistics of practice of intrinsic motivation in the bank.
Among the four statements the statement code IM1 “I have good relationships with my
supervisors.” scored the highest mean 4.23 with standard deviation of 0.568. Similarly,
code IM2 “The management believes on my ability and grants me some decision making

19
authorities.” scored lowest mean 3.73with standard deviation of 0.583. Similarly, code IM3
“I receive recognition for my work” scored the mean 3.93 with a standard deviation of
0.548. Likewise, code IM4 “My manager offers me with challenging tasks.” scored the
mean 4.10 with a standard deviation of 0.548.

2.2.2 Descriptive Statistics of Practice of Extrinsic Motivation

This section explores the practice of extrinsic motivation factors adopted by NMB Bank
Limited in order to motivate its employees through the descriptive analysis. These
construct of five different scale items are measured in a 5 point likert scale: 1- Strongly
Disagree to 5- Strongly Agree. Here, a score more than 3 represents the intensity of
practice of intrinsic motivation. The opinion of respondents is observed by computing its
mean and standard deviation. Mean value gives the result of average condition of
respondents on how they feel and standard deviation gives the spread from the average
mean of the respondents. Following table represents the extent of overall presence of
salary, bonus, promotion and fringe benefits.
Table 2.7 Descriptive Statistics of Practice of Extrinsic Motivation
Code Statement Mean Std. Deviation

EM1 I receive salary equivalent to the work done. 3.27 0.785

I receive an annual bonus based on my
EM2 performance. 3.3 0.702

EM3 I am promoted timely and appropriately 3.03 0.669

NMB offers me with fringe benefits.
EM4 3.37 0.615

Table 2.7 expresses the descriptive statistics of practice of extrinsic motivation for
employees. Among the four statements the statement code EM1 “I receive salary
equivalent to the work done” scored the mean 3.27 with standard deviation 0.785.
Similarly, code EM2 “I receive an annual bonus based on my performance” scored the
mean 3.3 with standard deviation 0.702. Similarly, code EM3 “I am promoted timely and
appropriately” scored the lowest mean 3.03 with a standard deviation of 0.669.

20
2.3 Inferential Statistics Analysis

Inferential Statistics is used to make statistical inferences, that is, to draw

conclusions about the data.
2.3.1 Correlation Analysis
Correlation indicates the strength and direction of a linear association between two
random variables. Correlation coefficient ( r ) could range between -1.00 and +1.00. A
correlation of 0.0 is an indication of the absence of a linear association between two
variables. -1.0 means that there is perfect linear negative correlation. +1.0 means that there
is perfect linear positive correlation.
A correlation matrix is the standard form of reporting correlation results. The
relationships among variables are easier to comprehend by displaying the correlation
coefficients in a table in matrix form. Table 2.6 shows a correlation matrix for three
variables. The headings along the top and left side of the matrix indicate the demographic
variables being correlated.

Table 2.8 Correlation Matrix

Performance Intrinsic Extrinsic
motivation motivation
Correlation 1
Performance Sig.

Correlation .590** 1
Intrinsic
Sig.
motivation .001

Correlation .317 1
Extrinsic
Sig. .087
motivation

**. Correlation is significant at the 0.01 level.

21
 From Table 2.8, The correlation coefficient between intrinsic motivation and
performance is resulted to be 0.590, which means these two variables have a positive
moderate correlation between each other. If the factors of intrinsic motivation increase in
an organization, the performance of the employees also gets better.

Similarly, the correlation between extrinsic motivation and performance is resulted to be

0.317, which means these two variables have a weak positive linear correlation between
each other. If the factors of intrinsic motivation increase in an organization, the
performance of the employees also gets somewhat better.

2.3.2. Test of hypothesis

From the table 2.8, we can observe that for the intrinsic motivation p-value<.010,
which means the observed difference is highly significant. Likewise, for the extrinsic
motivation p-value<0.10, which means the observed difference is significant.

Hypothesis 1: There is significant relationship between intrinsic motivation and

performance of employees.

The Pearson correlation test indicates relationship between intrinsic motivation and
employee performance, that signifies the correlation at 10% significance level. So, the H1
is accepted. This implies that if the intrinsic motivation increases, the performance of
employees also gets better.

Hypothesis 2: There is significant relationship between extrinsic motivation and

performance of employees.

The Pearson correlation test indicates relationship between extrinsic motivation

and employee performance, that signifies the correlation at 10% significance level. So, the
H2 is accepted. This implies that if the extrinsic motivation increases, the performance of
employees also gets better.

2.4 Assessment of Performance Observed

This section has studied in what ways the factors of motivation influence the
performance of employees working at NMB Bank Limited. The common reflection of
22
performance is seen on activities like timely reporting, job commitment, delight to
customers, low absenteeism, loyalty towards the bank, respect among colleagues, exertion
of extra efforts and many others. Some of the above mentioned measures have been
studied here.

Early reporting to work

Table 2.9 Early Reporting to work

Response Frequency Percent

Yes 21 70
No 19 30
Total 30 100

Table 2.9 shows that 70% of the respondents agree that motivation influences them to early
report to the work assigned. Remaining 30% did not agree that motivation influences them
to report to the work early.

Staying on the job

Table 2.10 Staying on the job

Response Frequency Percent
Yes 26 86.7
No 4 13.3
Total 30 100

Table 2.10 indicates that 86.7% of the employees believed the motivation factors to
influence them for staying on the job while 13.3% did not agree that motivation factors
influence them to stay on their job.

Low absenteeism

Table 2.11 Low absenteeism

Response Frequency Percent
Yes 21 70
No 9 30
Total 30 100

23
Table 2.11 indicates that 70% of the employees believed the motivation factors to
influence them for remaining less absent at the work place while 30% did not agree that
motivation factors influence them to stay less absent at the work place.

Job Commitment

Table 2.12 Job commitment

Response Frequency Percent
Yes 27 90
No 3 10
Total 30 100

Table 2.12 indicates that 90% of the employees believed the factors of motivation
influence them for getting committed towards their job while 10% did not agree that
factors of motivation influence them for getting committed towards their job.

Exertion of more efforts

Table 2.13 Exertion of more efforts

Response Frequency Percent
Yes 18 60
No 12 40
Total 30 100

Table 2.13 indicates that 60% of the employees go for exerting extra efforts to their work
as a result of motivation while 40% did not go for exerting extra efforts to their work as a
result of motivation.

Delight to customers

Table 2.14 Delight to customers

Response Frequency Percent
Yes 30 100
Total 30 100

24
Table 2.14 indicates that 100% of the respondents agree that they serve their customers
with delight if they are provided with motivation. There was not a single respondent to
deny on this ground.

2.5 Findings and discussion

After taking the survey of 30 respondents within 3 branches of NMB Bank Limited,
we observed that there are 50 % of male and 50% of female which shows exactly equal
involvement of male and female employees.
As per the age group, age group below 18-25 years represents 20%, 26-34 years
represents 53.3%, 35-45 years represents 26.7%. There were no presence of employees
who were above 45 years old. This shows NMB Bank Limited has been recruiting
emerging young workforce between 26-34 years at the highest level.
The respondents were also categorized in accordance to marital status which
showed that 56.7% were married, 43.3% were not married. The result showed that the
majority of respondents were married.
The level of academic qualification was also a category. 36.7% had completed their
undergraduate level of studies and 63.3% of the respondents had completed their master
degree. There was no presence of employees limited within intermediate level of
education.
The respondents were also asked to disclose their position of work. As a result of
survey, 40% of the respondents were working on managerial position at the bank while the
remaining 60% were working on non-managerial position.
Number of years the respondents had served the bank was also included on
categories. 16.7% employees were working for less than one year till date, 23.3%
employees had been working for 1-3 years long, 33.3% employees had been working for 3-
5 years long. There were 23.3% employees working in between 5-10 years. Only 3.3% of
employees had been serving NMB Bank Limited for 10 years more.
Among the four factors of intrinsic motivation, NMB Bank has mostly been
offering their employees with relationship building environment with the mean score of
4.23 and standard deviation 0.568. Decision making authority scored the lowest mean of
3.73 with standard deviation 0.583. The other two factors recognition and challenging
tasks scored the mean of 3.93 and 4.10 respectively. This shows higher practice of
relationship building and offering of challenging tasks as intrinsic motivation.
25
 Among the four factors of extrinsic motivation, NMB Bank has mostly been
offering their employees with fringe benefits and annual bonus as they scored the mean of
3.37 and 3.3 respectively. Salary and promotion were a little less practiced in comparison
with the mean score of 3.27 and 3.03 respectively.
The correlation between intrinsic motivation and performance is resulted to be
0.590, which means these two variables have a positive moderate linear correlation
between each other. Similarly, the correlation between extrinsic motivation and
performance is resulted to be 0.317, which means these two variables have a weak positive
linear correlation between each other.

Table 2.15 Result of Hypothesis testing

Hypothesis Statement Result
H1 There is significant relationship between intrinsic motivation Accepted
and performance of employees.
H2 There is significant relationship between extrinsic motivation Accepted
and performance of employees.

70% of the respondents agree that motivation influences them to early report to the
work assigned. Remaining 30% did not agree that motivation influences them to report to
the work early.
86.7% of the employees believed the motivation factors to influence them for
staying on the job while 13.3% did not agree that motivation factors influence them to stay
on their job.
70% of the employees believed the motivation factors to influence them for
remaining less absent at the work place while 30% did not agree that motivation factors
influence them to stay less absent at the work place.
90% of the employees believed the factors of motivation influence them for getting
committed towards their job while 10% did not agree that factors of motivation influence
them for getting committed towards their job.
60% of the employees go for exerting extra efforts to their work as a result of
motivation while 40% did not go for exerting extra efforts to their work as a result of
motivation.

26
 100% of the respondents agree that they serve their customers with delight if they
are provided with motivation.

2.6 Summary of Major Findings

This study showed that both intrinsic factors and extrinsic factors of motivation
were practiced by NMB Bank Limited. However, intrinsic factors like decision making
authority and recognition were not enough in comparison to relationships building and
offering of challenging tasks. While glancing towards the practice of extrinsic factors of
motivation, fringe benefits and annual bonus were given more priority while salary and
promotion were little lagged behind. Correlation analysis depicted that the relationship
between intrinsic motivation and employee performance is moderately positive. On the
other hand, the relationship between extrinsic motivation and employee performance did
not appear to be that strongly correlated showing a weak positive correlation between the
two. However, both the hypotheses were accepted. Majority of the employees also agreed
that the effects of motivation is positively seen on their performances like early reporting
to work, staying on the job, low absenteeism, job commitment, exertion of more efforts
and delight to customers.

27
 CHAPTER III
CONCLUSION AND ACTION IMPLICATIONS

The purpose of this research was to explore the effects of motivation on employee
performance so that the relationship of extrinsic and intrinsic factors with the performance
of employees could be properly examined. The purpose of this particular research serves to
provide me as a researcher, as well as related commercial banks of Kathmandu an insight
into the motivation culture and how it impacts the performance of the employees
associated. Different variables have been dealt with in this research report in order to
provide the balance required for this study. This research has tried to find out whether the
factors of motivation impact performance of employees more as generally assumed or not.

3.1. Conclusion

The commercial banks have been very important in both national and international
economies. Their employees are the fundamental sources of providing standard services to
their clients. Commercial banks are one of the most strong and globalized sectors because
they use wide varieties of advanced tools and techniques for their functioning. Although
information technology has become the primary pillar of commercial banks, human
resources are the perpetual running forces in this sector. The reason behind is the fact that
all the functions performed by financial institutions cannot be completed only with
information technologies and electronic devices.
The researcher has investigated upon the current intrinsic and extrinsic motivation
practices used in the commercial banks. As a result, it concluded that banks have been
providing their employees with various practices related to intrinsic motivation like
relationships building environment, trust upon ability, offering of decision making
authorities, recognition and challenging nature of assignments. Among these factors,
employer has mainly focused on providing relationship building environment and
assigning challenging tasks much adequately. But we cannot deny that bank has also
provided their employees with other intrinsic factors like recognition and decision making
authority and gradually improving on these factors too. The research has also concluded
that banks have been providing their employees with various practices of extrinsic
motivation like salary, annual bonus, promotion, allowances and other benefits. Among

28
these factors, employer has mainly focused on supplying their employees with appropriate
annual bonus and fringe benefits for their work. It has also been providing salary and
promoting the employees appropriately and timely but such kind of practices are low in
comparison to bonus and fringe benefits.
This study has also established the existence of a significant relationship between
intrinsic motivation factors and employees’ performance. The study concludes that
employees’ ability, manager’s trust in employees, recognition, challenging jobs,
relationships building environment and employees’ view of achievement significantly
enhances employees’ performance. This is because intrinsic motivation factors address
employees at the core of their needs, and as a result, form sufficient base that influences
and motivates the employees to higher standards of performance. These factors not only
motivate employees towards enhanced performance, but also build employees confidence
in themselves, and their organization.
Likewise, as established by the findings of this study, there exists somewhat
positive relationship between extrinsic rewards and employee performance. The study
concludes that salaries and wages, annual bonus, appropriate and timely promotion and
fringe benefits are essential components of extrinsic rewards that enhance employee
performance. When managers take time to invest in extrinsic rewards, employees feel
valued by their organization and perform better.
The test of hypothesis has reflected that employee performance is highly concerned
upon what sorts and extent of intrinsic motivation has been adopted as it has been
confirmed even at 1% significance level. The relationship between extrinsic motivation
and performance of employees was also reflected to be positive but supported by 10%
significance level. So, intrinsic motivation is ought to be given more concern than extrinsic
motivation while developing practices of motivation in commercial banks of Kathmandu.
This study has also assessed the ways in which employees are influenced by
motivation practices. The responses have helped the researcher to conclude that majority of
the employees are willing to report to their works early, stay on the job, remain less absent,
show their commitment towards job, exert extra efforts towards work and interact
delightfully with their customers. However, few respondents did not show their agreement
to accept that low absenteeism, exertion of more efforts, early reporting, job commitment
has been the ways in which their performance gets reflected as a result of motivation.

29
 The result is consistent with Muchiri (2016) that there exists a significant
relationship between extrinsic and intrinsic motivation and employee performance.
The result is partially consistent with Swart (2010) that there is a direct link
between motivation, commitment and productivity based on like training, experience, work
knowledge and leadership styles.
The result contrast findings with Ndungu (2017) that the employees in educational
institutions are less motivated by financial and recognition rewards and the variables
contribute to a small extent in improving job performance.
3.2. Action Implications

From this research project, we have seen that factors of motivation have a significant effect
on the performance of employees. Data collection and analysis has properly addressed this
fact that employees, being valuable assets of any organization should be adequately
motivated in order to enhance their performance.
Implications for Managers

This study has implied managers in the organizations to be well conscious that cash and
financial allowances could motivate their employees to some level. But if they want their
employees them to be motivated and satisfied in the long run, they have to largely
consider intrinsic motivation approaches and factors like appraisal, recognition,
challenging tasks, trust, decision making authority, relationship building and management
support. This results in the improvement of the productivity of the entire organization. In
addition, managers should begin with choosing the most appropriate approach to
motivation by properly studying their employees and the nature of the organization.
Implications for Decision makers

This research has implied the decision makers that it requires greater level of concern
while selecting suitable motivation approach in any organization. This is the responsibility
of the decision to give high priority on selecting motivational tools and also recalling the
employees that they have been treated with good motivational factors timely. The decision
makers should approve new and innovative motivational tools which highly influence
performance of the employees at the bank. While making decisions, innovations,
creativity, potentials and abilities of employees must be accepted and articulated in order to
enhance motivation which significantly improves performance.

30
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Muchiri, H. (2016). Effects of rewards on employee performance in the hospitality
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 APPENDICES

Effects of Motivation on Employee Performance: A case of NMB Bank Limited

Dear Respondent,
I am currently pursuing Bachelors in Business Administration and in partial fulfillment of
my degree; I am required to conduct research in the area of my study. The study will look
at how intrinsic factors and extrinsic factors of motivation influence employee
performances at the bank you are working with. The information you provide in this study
will be treated with high confidentiality and only aggregate results are reported. Your name
will not appear anywhere in the report. Kindly spare a few minutes of your time to
complete the questionnaire.

Researcher,
Pragya Khanal
BBA (7th Sem)
Shanker Dev Campus

Kindly respond to the following questions by ticking in the appropriate box ( )

1. Gender: i. ( ) Male ii. ( ) Female
2. Age: i. ( ) 18-25 ii. ( ) 26-34 iii. ( ) 35-45 iv. ( ) 46-55 v. ( ) 56 and above
3. Marital Status: i. ( ) Single ii.( ) Married iii.( ) Others
4. Qualification: i. ( ) High School ii. ( ) College iii. ( ) Bachelors iv. ( ) Masters v.
( ) Others
5. Employment Level: i.( ) Managerial Employee ii.( ) Non-managerial Employee
6. How long have you been working with NMB?
i. ( ) Under one year ii. ( ) 1-3 years iii.( ) 3-5 years iv. ( ) 5-10 years v. ( ) 10+ years

33
Please specify your opinion by marking tick in the space.
1: Strongly Disagree 2: Disagree 3: Neutral 4: Agree 5: Strongly Agree

Code Variables 1 2 3 4 5
Intrinsic Motivation (Independent Variable)
IM1 I have good relationships with my superiors.
IM2 The management believes on my ability and
grants me the some decision making
authorities.
IM3 I receive recognition for my work.
IM4 My manager offers me with challenging
tasks.
Extrinsic Motivation (Independent Variable)
EM1 I receive salary equivalent to the work done.
EM2 I receive an annual bonus based on my
performance.
EM3 I am promoted timely and appropriately.
EM4 NMB offers me fringe benefits.

Performance (Dependent Variable)

P1 Relationships building helps me to perform
better.
P2 Getting involved in decision making
enhances my performance.
P3 Recognition works as a source of motivation
for performing better.

P4 Challenges motivates me to enhance my

performance.
P5 My performance would go up if my salary
was increased.

P6 The anticipation of the bonus enhances my

34
 performance.
P7 Promotion provides me with great
motivation to perform better.
P8 Fringe benefits have positive relationship
with my performance improvement.

Effect of Motivational Packages on Employee Performance

In what ways do the motivation packages influence you?
i. Early reporting to work Yes [ ] No [ ]
ii. Staying on the job Yes [ ] No [ ]
iii. Low Absenteeism Yes [ ] No [ ]
iv. Job Commitment Yes [ ] No [ ]
v. Exertion of more efforts Yes [ ] No [ ]
vi. Delight to customers Yes [ ] No [ ]
Thank you for your response.

35