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Employee Motivation and its Role in Improving the Productivity and


Organizational Commitment at Higher Education Institutions

Article · June 2018


DOI: 10.17687/JEB.0601.02

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Article

Employee Motivation and its Role


Journal of
in Improving the Productivity and Entrepreneurship and Business
Organizational Commitment at E-ISSN: 2289-8298

Vol. 6, Issue 1, pp. 17 - 28. June 2018


Higher Education Institutions
Faculty of Entrepreneurship and
Jalal Rajeh Hanaysha (Corresponding Author) Business, Universiti Malaysia Kelantan
Locked Bag 36, 16100 Pengkalan Chepa
Faculty of Business Management, DRB-HICOM University Kota Bharu, Kelantan, Malaysia
of Automotive Malaysia, 26607, Pekan, Pahang, Malaysia http://fkp.umk.edu.my/journal/index.html
Email: jalal.hanayshi@yahoo.com
Date Received: 20th September 2017
Muhammad Majid Date Accepted: 18th January 2018
Faculty of Business Management, DRB-HICOM University
DOI: 10.17687/JEB.0601.02
of Automotive Malaysia, 26607, Pekan, Pahang, Malaysia
Email: muhammad@dhu.edu.my

This work is licensed under a Creative


Commons Attribution 3.0 Unported
License

Abstract – This study investigates the impact of employee motivation on productivity and organizational
commitment in the higher education sector. The data is collected using an online survey from 242
employees from public universities in northern Malaysia. During the analysis of the data, SPSS and
structural equation modelling are used for generating the results. The findings show that employee
motivation has a significant positive effect on employee productivity. Additionally, the effect of
employee motivation on organizational commitment is positive and statistically significant. Finally, the
results prove that organizational commitment has a significant positive effect on employee productivity.
These results carry extreme significance to policy makers in the education sector with regards to the
importance of employee motivation if they intend to enhance organizational productivity and
competitiveness.

Keywords: Employee motivation; employee productivity; higher education sector; organizational


commitment.

1. Introduction

Nowadays, human resource management is regarded as one of the foremost significant


issues for any organization to stay competitive in business markets. Acquiring the right
employees and maintaining them represents the key challenge for organizations (Aktar,
Sachu, & Ali, 2012). That is, an organization’s employees are the most valuable assets, and
their management is considered to be the main challenging task. The main objective of
human resource management is to ensure greater employee productivity and long term
organizational performance. The improvement in productivity is indeed the main goal for
any firm where all units or departments work closely to increase its performance through
different management strategies (Bandara & Weligodapola, 2013). From the literature
review, it appears that employee productivity can be evaluated based on the amount of
products and services which are produced by an employee within a particular period of
time with emphasis on quality maintenance.

Journal of Entrepreneurship and Business 17


Hanaysha & Majid

Many organizations are concerned with what they should do to accomplish high levels of
performance through their human capital (Forson, 2012). For some of the organizations to
enhance their performance, they believe that the productivity of employees can be highly
affected by their motivation, attitude, and behaviour (Kawara, 2014). Forson (2012)
illustrated that adequate motivational incentives for employees are among the best ways to
manage as well as to reach organizational objective or mission with minimum resource
usage and available human capital. On the other hand, certain issues of less motivation
may arise as they affect certain workers who go to the workplace with different
expectation, behaviours and outlooks, and become less committed to the organization.

The motivation among employees plays an important role in transforming an organization.


Thus, it is necessary for both employers and decision makers to identify the needs and
concerns of their team members and further understand what drives them to be more
productive (Rodriguez, 2015). In the prior literature, it is evident that highly motivated
employees are perceived to be more performance oriented, satisfied, and highly committed
to their work and organizations for a long period of time (Singh, 2013). Unfortunately,
despite the significance of motivation and organizational commitment in influencing the
productivity of employees, empirical research on this link is scarce. According to Swart
(2010), to understand motivation building factors and the effect of motivation on employee
productivity, a further investigation is needed. Moreover, Salleh, Dzulkifli, Abdullah, and
Yaakob (2011) reported that there are few empirical researches which have examined the
impact of motivation on the productivity of employees in the government sector.

Considering the gaps mentioned above, this study is designed to empirically test the impact
of motivation on employee productivity at public universities in Malaysia. The education
sector in Malaysia is rated as one of the main sectors that significantly contributes to the
development of the national economy. Additionally, there are few empirical studies which
have intended to test employee motivation and productivity in higher education
institutions, particularly in Malaysia. Prior researches also reveal that organizations may
achieve their goals when their employees understand their roles and responsibilities
towards the organization, and there should be continuous communication between
management, leader, and employee to set performance expectations, monitor programs,
and achieve good results. Today's economy demands organizations to invest in human
capital as they are the most valuable assets for them. Additionally, the motivation among
employees plays an important role in transforming an organization. The next section
presents the literature review about employee productivity, employee motivation, and
organizational commitment.

2. Literature Review

2.1 Employee Productivity


Aiyetan and Olotuah (2006) described productivity as the amount and quality of output
that an individual generates using certain inputs. The normal measures for productivity are
evaluated according to the outcomes or tasks accomplished based on the hours worked. A
similar definition of employee productivity was suggested by Syverson (2011) as the
aggregate output that is achieved by an employee within a particular period of time and is
evaluated according to its efficiency and effectiveness in reaching the desired objectives
and job requirements. Ferreira and Du Plessis (2009) illustrated that the productivity of
employees can be evaluated based on the ability to achieve certain desired outcomes that
are in line with the job description of an employee in a particular period of time. Literarily,

Journal of Entrepreneurship and Business 18


Hanaysha & Majid

employee productivity refers to the capability of making significant achievements which


are determined by comparing the total outcomes with the expectations (Srivastava &
Barmola, 2012). Overall, employee productivity can be described as the total output that an
employee produces within a specific period of time.

The degree of an employee’s productivity that ultimately leads to favorable organizational


performance is a key indicator of organizational success that should be given greater
emphasis as it measures the competitive power of an organization (Hanaysha, 2016;
Soltani, 2016). Productivity is also one of the important factors that indicate the profits and
possible opportunities for an organization’s success in business, a benchmark for
employee’s reward, and a means of recognizing and pleasing the hard work. Productivity
measures the efficiency of employing organizational resources to attain certain outcomes
(Aiyetan & Olotuah, 2006). Other views about employee productivity were directed
toward measuring it based on the amount of products or services that are produced by an
employee within a specific period of time taking into consideration the used resources
(Singh, 2009). Cohen, Fink, Gadon, and Willitts (1995) demonstrated that productivity
comprises both economic and group performance that come from the ability to fulfill
customers’ needs and expectations. In short, the productivity of employees emphasizes on
two main dimensions, namely work efficiency and work effectiveness.

Over the past years, several organizations have been trying to enhance employee
productivity using different strategic techniques. Many scholars noted that the motivation
of employees and effective management play significant roles in boosting their
productivity and organizational performance (Aktar et al., 2012; Kawara, 2014; Scott,
2015; Swart, 2010). For this reason, organizational and employee’s performance have
received wide interests and captured the attentions of various scholars recently. The ability
of the management to motivate employees in an attempt to successfully reach their future
goals is fundamental (Nizam & Shah, 2015). Particularly, employees serving in both
private and public sectors need frequent motivations in order to boost their productivity
levels and accomplish their tasks as desired (Muogbo, 2013). As the performance of
employees is comprised of both motivation and capability, therefore, it is the responsibility
of the management to ensure favorable employee motivation and provide the necessary
resources for supporting this motivation (Katou, 2017; Moorhead & Griffin, 1998).

2.2 Employee Motivation


The word motivation originated from the concept of motive which describes an
individual’s drives and needs that are essential to achieve certain desires (Chaudhary &
Sharma, 2012). Several definitions of motivation were seen in previous researches.
According to Maduka and Okafor (2014), motivation refers to the willingness of an
individual to put greater efforts to attain particular goals. Therefore, the concept of
motivation stresses on an individual’s feeling of enthusiasm and attentiveness to be able to
achieve his or her goals in an effective manner. Correspondingly, Robbins (2001) reported
that the motivation of an individual represents the energies that could inspire, direct, and
maintain or enhance his/ her efforts. Motivation was also previously expressed as an
internal inner wish that exists within an employee to accomplish his or her tasks
successfully, because such tasks are exciting and match his or her interests (Gouws, 1995).
Employee motivation can be expressed according to the inner desire of an individual to
exemplify his or her capabilities to achieve certain goals for an expected reward.
Motivation is an art with a purpose to get individuals to work willingly, and influencing
them to behave in a certain manner to accomplish their tasks (Maduka & Okafor, 2014).

Journal of Entrepreneurship and Business 19


Hanaysha & Majid

Certain scholars (Coetsee, 2002; Robbins, Judge, Odendaal, & Roodt, 2009) demonstrated
that employees’ motivation at the work place appears through their willingness to
effectively use their knowledge and skills to achieve the desired organizational objectives
in relation to their satisfaction and needs. Motivation is one of the key issues for any
organization either public or private (Muogbo, 2013; Zameer, Ali, Nisar, & Amir, 2014).
Particularly, in order to drive the success of an organization, motivation has a significant
role. Chintallo and Mahadeo (2013) revealed that all organizations, including the public or
private sector encounter the issue of employee motivation.

In the previous literature, it was reported that there are several key elements which can
enhance the commitment of employees towards an organization. The factors included
salaries and wages, job security, promotion, and bonus (Zameer et al., 2014). Rewards are
also some of the key strategies to reinforce employees’ motivation to utilize their best
capabilities to come up with innovative ideas that could improve the functionality of
business and further increase organizational performance either financially or non-
financially (Aktar et al., 2012; Kawara, 2014; Roos, 2005). As a result, employees will
exert high levels of efforts and are likely to devote their full energies to accomplish given
tasks when they feel that such efforts will be given rewards by the management.

The concern towards finding what motivates an employee has several implications for both
the theory and practice, and it has been noted in the literature over the past few years
(Haslam, Powell, & Turner, 2000). This is because the effectiveness of skilled employees
in most cases tend to be limited if they experience less motivation to perform their work
(Aktar et al., 2012). Among the key business strategies that employers can implement to
increase the productivity and motivation of their employees is to focus on a reward system
on a continuous basis (Delaney & Huselid, 1996). Basically, this system was emphasized
in the expectancy theory which states that employees usually tend to develop higher levels
of motivation to accomplish their work duties well when they are assured that there is a
positive association between their achievements and the received rewards (Aktar et al.,
2012). According to Rodriguez (2015), rewards and incentives add value to employees’
achievements, motivate them, and energize their progress by making them realize that they
have to earn for what they accomplish. The motivation will further encourage employees’
creativity and ensure their high quality of work performance (Kuranchie-Mensah &
AmponsahTawiah, 2016; Osabiya, 2015).

Previous researches showed that employee motivation was one of the key factors which
influences employee productivity (Naomi, 2011; Osabiya, 2015; Singh, 2013; Zameer et
al., 2014). Ramdhani (2008) examined the relationship between motivation and employee
productivity in higher education context and found a positive link between both of them.
They further indicated that employees’ motivation is highly correlated with the level of
productivity. Moreover, Srivastava and Barmola (2012) demonstrated that motivation is
very important for improving organizational commitment among workers, which
resultantly leads to higher levels of productivity. In other words, committed employees
tend to receive motivation at the workplace and be rewarded for good achievements.
Therefore, motivation can be considered as the driver of employee’s productivity and
organizational commitment (Al-Madi, Assal, Shrafat, & Zeglat, 2017; Bloisi, Cook, &
Hunsaker, 2007). With reference to the literature review presented above, the following
hypotheses are proposed:
H1: Employee motivation has a positive effect on employee productivity.
H2: Employee motivation has a positive effect on organizational commitment.

Journal of Entrepreneurship and Business 20


Hanaysha & Majid

2.3 Organizational Commitment


Organizational commitment has gained significant research attention in past literature
where various studies have emphasized on its consequences that include work behaviour
and job performance (Hager & Seibt, 2018). According to Huselid and Day (1991), when
an employee is engaged and involved in his or her work, this indicates that this employee
is strongly affiliated to his or her job and feels satisfied about working in that organization.
A number of behavioural symptoms such as learning, thinking, perception, motivation, and
organizational commitment have been regarded as the foremost significant criteria to
assess the behaviour of employees in an organization (Sohail, Saleem, Ansar, & Azeem,
2014). Luthans (2006) demonstrated that employee’s commitment towards an organization
can be reflected through a positive desire to stay as an active member in it, a willingness to
make sacrifices for doing the responsibilities and duties in the best way that they could be
done, and accepting the values of organizational goals.

Several definitions of organizational commitment were presented in the literature. Becker,


Randal, and Riegel (1995) illustrated that organizational commitment reflects the strong
desire in an employee to stay a member of a certain organization. Similarly, Northcraft and
Neale (1996) thought about organizational commitment as the attitude of an employee
which can be reflected through his or her loyalty towards an organization. They further
indicated that commitment is a continuous process where organizational members reveal
their interests for an organization and work hard to ensure its success and well-being.
Colquitt, Lepine, and Wesson (2009) indicated that organizational commitment can be
observed through the willingness of an employee to show his or her positive intention for
maintaining the relationship with the organization. From the above definitions, it can be
concluded that organizational commitment emphasizes on the personal motives of an
employee to maintain the membership with an organization in an attempt to enhance its
overall performance.

Creating organizational commitment depends on several factors such as: communication,


training programs, education, and reward management systems (Raina & Roebuck, 2016).
Previous studies revealed that organizational commitment plays an important role in
affecting employees’ productivity. Certain scholars (Atmojo, 2015; Buttner, Buttner,
Lowe, & Lowe, 2017; Khan, Ziauddin, & Ramay, 2011) examined the link between
organizational commitment and the performance of employees and found a significant
positive association between both variables. Furthermore, Rizal, Idrus, Djumahir, and
Mintarti (2014) confirmed that organizational commitment had a significant positive effect
on employee performance. From the above discussion, it can be suggested that
organizational commitment is a very important theme of research that reflects the strength
of an organization through its human resources. High levels of organizational commitment
prove the success of an organization in managing its human resources, and this ultimately
would result in improved performance and high productivity of employees. Consequently,
the following hypothesis is postulated:
H3: Organizational commitment has a positive effect on employee productivity.

3. Methodology

This study adopted the quantitative methodology in which the data were gathered through
an online survey method. The participants of this study included administrative as well as
academic staff of public universities in northern Malaysia. A total of 870 questionnaires

Journal of Entrepreneurship and Business 21


Hanaysha & Majid

were administered to the employees through email. To ensure that the minimum required
sample size is obtained, the questionnaires were administered to several employees after
obtaining the lists of their emails. This process was done to obtain the required sample
size. According to Yoldas (2012), using the survey technique to collect information from
larger samples is more appropriate and robust than adopting the interviews. Since the
questionnaire instrument allows for reaching a big number of populations, the online
surveys allow the researcher to reach them at a minimum cost.

The constructs of this study were measured using scales adapted from previous literature.
Specifically, a seven-item scale to measure employee motivation was taken from Curtis
and Severt (2009). To measure employee productivity, a four-item scale was taken from
the study of Lee and Brand (2010). The aforementioned scales were selected due to their
acceptable Cronbach’s alpha reliability that was more than 0.70. Finally, a five-item scale
was used to measure organizational commitment and it was taken from the study of
Mowday, Steers, and Porter (1979). All of the items were measured using the five-point
Likert scale which ranges between strongly disagree and strongly agree. After designing
the final questionnaire, three experts from higher education institutions were asked to
check and validate it before the initial distribution took place.

The responses from all participants were inserted into the SPSS after being received and
then analyzed through the structural equation modelling (SEM) using AMOS 18. Several
tests such as reliability, factor analysis, validity, and regression analysis were conducted to
generate the results of this study and to test the hypotheses. During data analysis using
AMOS, the measurement model incorporating all items was drawn to test the factor
loadings using the confirmatory factor analysis. Subsequently, the structural model was
developed to ensure the goodness of model fit and verify the presented hypotheses. The
advantages of using the structural equation modelling include the possibility to generate
greater accuracy and reliability for the results. As stated by Chin (1998), SEM is one of the
powerful statistical methods and is characterized by flexibility in modelling the
associations between a set of variables.

4. Result

The findings indicate that out of 870 online questionnaires that were administered to the
participants, only 242 were received from them. The descriptive analysis indicated that 65
(26.9%) of the respondents are male, whereas females accounted for 177 (73.1%). It also
showed that the majority of respondents (50%) represented the age cluster of 26 - 35 years
old, 7 (2.9%) came under the age cluster which ranged from 18 to 25 years, while 40.5%
are aged between 36 and 45 years old. Additionally, those whose ages ranged from 46
years old or more represented 6.6% of the overall response. On education profile, this
study has 36 (14.9%) participants who hold a diploma certificate, 79 (32.6%) have an
undergraduate certificate, 125 (51.7%) have certificates of a postgraduate degree, and 2
(0.8%) have other categories of professional certificates. It was also found that most of the
participants (69%) have a work experience of more than 5 years in their workplaces.

Testing the reliability of instrument is very important in order to confirm the internal
consistency among items. However, in this study, Cronbach’s alpha was employed because
it is the most commonly used method for calculating the reliability of constructs using a set
of items. The results revealed that all values of Cronbach’s alpha were acceptable as they

Journal of Entrepreneurship and Business 22


Hanaysha & Majid

ranged from 0.774 to 0.871. Specifically, the construct of employee motivation achieved a
Cronbach’s alpha of 0.774. Moreover, organizational commitment and employee
productivity achieved high Cronbach’s alpha values of 0.871 and 0.748, respectively.
According to these findings, it can be said that the assumptions of reliability on all
constructs are fulfilled as the Cronbach’s alpha values are greater than 0.70 based on the
suggestions of Pallant (2010).

To ensure the existence of convergent validity among items, factor analyses were
examined using AMOS 18. This process was done to confirm that each unit of items are in
fact measuring the constructs that represents them. Furthermore, factor analyses were
conducted to confirm content validity. Since the measurement scales for the variables were
taken from past researches, confirmatory factor analysis is more favored than exploratory
factor analysis (EFA). The process for testing and executing factor analysis was completed
on AMOS through the measurement model which included the measurement items of all
constructs. The results showed that the loadings of all items ranged between 0.48 and 0.92
(details are shown in Appendix A). From these findings, it can be concluded that most of
the selected items surpassed the minimum required value of 0.5 in line with the
recommendations of Hair el al. (2010). Overall, the results of factor analysis are
satisfactory for all of the constructs.

After achieving a reasonable fit for factor loadings on all items which was confirmed using
the measurement model, the next step was to draw and estimate the final structural model.
This process was done to ensure an acceptable model fit through several fit values.
Overall, the findings showed that the final structural model established a reasonable fit to
the current data as p-value is significant (p=0.000). Moreover, other fit indicators (CMIN =
138.404, AGFI = 0.885, df = 62, GFI = 0.922, CFI = 0.935, TLI = 0.918, and RMSEA =
0.072) were employed in order to ascertain model fit assumptions. To verify the
hypotheses which were presented earlier, the results were then generated from the
regression table of the structural model’s output. The results presented in Table 1 indicate
that employee motivation has a positive effect on employee productivity (β = 0.772, t-
value = 8.056, p < 0.05), thus, the first hypothesis is confirmed. Moreover, the findings
supported the second hypothesis which stated that employee motivation has a positive
effect on organizational commitment (β = 0.479, t-value = 4.952, p < 0.05). Finally, the
findings revealed that organizational commitment has a significant positive effect on
employee productivity (β = 0.296, t-value = 2.146, p < 0.05), therefore, the third
hypothesis is supported.

Table 1. Results of the Hypotheses Testing

Std.
Hypothesized Effect S.E. C.R. P Support
Estimate
H1: Employee motivation has a positive effect 0.772 0.069 8.056 *** Yes
on employee productivity.

H2: Employee motivation has a positive effect 0.479 0.097 4.952 *** Yes
on organizational commitment

H3: Organizational commitment has a positive 0.319 0.138 2.146 0.032 Yes
effect on employee productivity

Journal of Entrepreneurship and Business 23


Hanaysha & Majid

5. Conclusion and Discussion

The main objective of this paper was to investigate the effect of employee motivation on
productivity and organizational commitment in the higher education sector. The results
revealed that employee motivation has a significant positive effect on employee
productivity. This finding was confirmed by certain researchers who established that
motivation was a significant factor for predicting employee productivity (Korir &
Kipkebut, 2016). Masoud and Camal (2010) studied the effect of motivation on employee
productivity and reported that motivation was one of the key contributors to the
productivity of employees. Srivastava and Barmola (2012) and Emeka, Amaka, and Ejim
(2015) added that when an employee is highly motivated, his work outcomes would result
in increasing organizational productivity, effectiveness, and efficiency. Similarly, Kawara
(2014) declared that motivational rewards provide a feeling of motivation among
employees, and thus, increase their productivity levels, which provide further implications
for organizational growth and competitiveness. The practical implications from this finding
suggests that the decision makers in higher learning institutions should give a prime
attention to employees’ issues and ensure their work effectiveness by providing incentives
and rewards for good achievements. This as a result will encourage them to become more
productive and creative in doing their jobs.

Furthermore, the findings of this study provide empirical evidence that motivation has a
significant positive effect on organizational commitment and match with several previous
researches which confirmed employee motivation as a key predictor of organizational
commitment (Rafique, Tayyab, Kamran, & Ahmed, 2014; Rizal et al., 2014; Siburian,
2013). According to Alhaji and Yusoff (2012), there are different ways for enhancing
employees’ work motivation and organizational commitment, and the effectiveness of such
ways may differ according to the nature of the job, organization, and from one employee to
another. They further indicated that increased commitment depends on the efficiency of the
management in handling human resource issues at the workplace. The outcomes of this
study also showed that organizational commitment has a significant positive effect on
employee productivity. The result was confirmed by past literature (Khan et al., 2011;
Rizal et al., 2014) which reported similar conclusions. Therefore, organizations should
establish reward systems for productive employees either financially or non-financially in
order to stimulate employees’ productivity and enhance their loyalty and commitment to
the organization. Overall, the results of this paper reveal that human resource managers
should put prime emphasis towards increasing work motivation of employees and ensuring
their job satisfaction (Farouk, Abu Elanain, Obeidat, & Al-Nahyan, 2016).

Certain limitations exist in this paper which would open some avenues for future
researches. First, the data in this study were only collected from the employees of public
universities in the northern part of Malaysia. Thus, future researches should examine the
constructs used in this study in different types and contexts of industries to gain better
insights on the role of motivation in affecting employee productivity and organizational
commitment. Second, this study investigated only one predictor of employee productivity
and organizational commitment; therefore, future studies may test other variables such as
career development and work environment. Moreover, future research should seek to
develop more complete measures of employee motivation and ways to enhance employees’
motivation by tapping multiple dimensions of their job quality. Finally, this study was
conducted using a quantitative survey; thus, future researches may utilize qualitative
methods that would provide further confidence to the generalizability of the results.

Journal of Entrepreneurship and Business 24


Hanaysha & Majid

Appendix A: Measurement Scales of Final Items

Factor
Code Construct/ Item
Loading
Employee Motivation (Cronbach’s Alpha = 0.774)
MOT1 My institution provides me with job security. 0.69
MOT2 I receive supervisor’s help with my personal problems. 0.65
MOT3 In my institution, I get good wages. 0.56
MOT4 Working in this institution is interesting. 0.60
MOT6 The management of the institution shows gratitude for a job well done. 0.69
MOT7 I receive monetary incentives for a job well done. 0.75
Organizational Commitment (Cronbach’s Alpha = 0.871)
OC2 I talk positively about this institution to others. 0.77
OC3 I am proud to tell others that I am part of this institution. 0.90
OC4 I really care about the status of this institution. 0.73
OC5 For me, this is one of the best institutions for which to work. 0.77
Employee Productivity (Cronbach’s Alpha = 0.748)
PROD2 I accomplish tasks quickly and efficiently. 0.72
PROD3 I have a high standard of task accomplishment. 0.82
PROD4 My work outcomes are of high quality. 0.68

Disclosure Statement
No potential conflict of interest was reported by the authors.

Funding
No Funding

Acknowledgement
N/A

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