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Management and Human Resource Research Journal

Vol.11, No. 4, April-2022;


ISSN (4244 – 490X);
p –ISSN 3363 – 7036
Impact factor: 7.91

An Empirical Study of the Factors Effecting Motivation and their


Effectiveness on Employee Performance

Sachini Upathissa
Department of Economics, University of Colombo, Sri Lanka
Abstract: The study is on the factors of motivation and their effectiveness on employee performance. And it is emphasised
on the non-managerial staff of the tea factories in Pelmadulla divisional secretariat in Ratnapura district. The main objective
of this analysis is to identify the factors of motivation and their effectiveness in employee performances. Employee
performance is a vital factor in achieving organizational goals as well industrial goals. In the introduction, it explained the
identified problem of lack of motivation among employees in the tea factories. According to that most of the workers are
very stressed with the job environment and less morale among them. The present study carries out a detailed analysis on
identified motivation factors in the literature. Thereby motivation theories and the concept of employee performance were
also reviewed. A field survey with questionnaires for non-managerial staff is conducted by using simple random sampling
and snowball sampling method. Further conducted interviews with employees, tea factory managers, factory owners to
identify and collect data on the present status of employee performance. Further, the secondary data was collected through
reliable Books, websites, journal articles and company reports. According to the research findings that all the variables
analysed as per the developed hypothesis have a positive relationship to employee performance. The regression analysis
also proved the impact of independent variables on the dependent variable. Finally, the researcher has proposed possible
recommendations to enhance employee performance in the tea factories.
Keywords: Motivation, Employee Performance

1. Introduction programs that contribute to a person’s career development


and helps in the success and fulfilment of individual career
In the global context competitiveness is a very protruding
plans. Thus, in this framework formal approach that is used
indicator. Globalization, advancement in technology,
by the organization to ensure that people with proper
common markets have increased customers’ expectations.
qualification and experience are very important.
So, for revealing to a higher level of services and a higher
quality of products; it’s important to have a motivated In today’s highly competitive labour market, employee
workforce. Therefore, now the business entities are well performance is a noticeable indicator of achieving goals
focused on the development and investing much more than and objectives as well as remaining in the market. Hence,
ever before on peoples’ development. In that case, they it is essential to find ways in order to keep improving
were trying to build up a very effective and efficient employees’ performance in high standard. Here the term
workforce to achieve the organization goals and employee performance is defined according to the business
objectives. Here, a series of activities that can identify the dictionary, the job-related activities expected of a worker
potential of employees; training and development and how well those activities were executed. Many
Management and Human Resource Research Journal
An official Publication of Center for International Research Development
Double Blind Peer and Editorial Review International Referred Journal; Globally index
Available www.cirdjournal.com/index.php/mhrrj/index: E-mail: journals@cird.online
pg. 1
Management and Human Resource Research Journal
Vol.11, No. 4, April-2022;
ISSN (4244 – 490X);
p –ISSN 3363 – 7036
Impact factor: 7.91

business personnel directors assess the employee industry were in underperformance levels with their
performance of each staff member on an annual or workloads and not able to achieve their set targets and
quarterly basis in order to help them identify suggested working in the stressful working environment inside the
areas for improvement. Thus, still being a main agriculture factory with machines. So, the unhappiness and grievances
activity in the tea plantation, employee performance is a were among the workforces. Hence, it cannot expect high-
very important fact as it directly impacts the countries’ performance levels from a frustrated workforce. And the
production. Here, the researcher tries to conduct an employees were unable to do their assign task in expected
analysis of the effectiveness of motivation factors in standards. Hence, with the discussions having with several
improving non-managerial employees in tea factories. tea factory owners and the employees it can be able to
identify that there is a less morale among the employees.
The main purpose of this research is to study the main
factors affecting the motivation of the employees in tea According to the initial study in identifying the problem
factories. Further, ways and means of improving employee the researcher able to identify that lack of motivation
performance and enhancing employee motivation factors factors in factories may be impacted by the performance
to the industry. The current situation in the county in level of employees. Motivation factors are helping to
general as relates to the motivation of workers makes it develop a satisfied workforce and motivation includes a
necessary to speculate on the extent of achieving the group of closely related beliefs, perceptions, values,
factories’ goals. Thus, employees’ performance has a interests, and actions. The management has to identify the
direct impact on the output. In other words, employee need of employees in order to get the maximum output
performance indicates the effectiveness of the employee’s from the employees while motivating them with both
specific actions that contribute to attaining organizational internal and external factors. Thus, as a main human
goals. It is defined as the way to perform the job tasks resource approach motivating employees is a must. In
according to the prescribed job description. Performance is order to that and the evidence the researcher selected three
the art to complete the task within the defined boundaries. motivation factors as challenging and exciting works,
And in increasing the employee performance there are rewards and recognition and opportunities. Since to get
several external factors that need to be considered. morale, the exciting work force these factors are directly
influence employees’ performances levels too. Non-
To achieve the desired efficiency and productivity levels,
managerial employee performances in tea factories are
business establishments rely on a workforce that shares the
directly impacted on overall country production; here
vision and aspirations of the establishment. This study,
onwards researcher examines the methods to improve the
therefore, found out if workers, given the right incentives
employee performance through the factors of motivation.
can put in their best to contribute to the productivity and
Thus, the present study is done in a low country tea region
growth of the tea industry to achieve the following, among
which has the highest contribution to the country overall
others: increase and create the workers’ productivity
tea production. As mentioned earlier with statistics of the
culture, eliminate, or reduce industrial unrest and improve
region the researcher aims to examine the possibilities in
management and staff relationships in the factory. Hence,
improving the productivity on employee performance.
according to the pilot research, most employees in the tea
Management and Human Resource Research Journal
An official Publication of Center for International Research Development
Double Blind Peer and Editorial Review International Referred Journal; Globally index
Available www.cirdjournal.com/index.php/mhrrj/index: E-mail: journals@cird.online
pg. 2
Management and Human Resource Research Journal
Vol.11, No. 4, April-2022;
ISSN (4244 – 490X);
p –ISSN 3363 – 7036
Impact factor: 7.91

2. Literature Review Employee performance involves the quality and quantity


of output, presence at work, accommodative and helpful
The term “employee performance” signifies individual’s
nature and timeliness of output. Further, the individual
work achievement after using essential energy on the job
performance showed that the performance of the
which is linked through getting a meaningful work,
individuals cannot be verified. Similarly, it asserts that
engaged profile, and compassionate colleagues/employers
organizations can use direct bonuses and rewards based on
around (Pradhan & Jena, 2017). Organisational
individual performance if employee performance is
performance is a sign of the capacity of a company to
noticeable. (Shahzadi & Javedi, 2014). Further researchers
efficiently achieve independent goals (Muda, Rafiki, &
proved that employee performance is actually influenced
Harahap, 2014). Job performance as in the form of
by motivation because if employees are motivated then
performance assessment and management is an essential
they will do work with more effort and by which
part of effective HR management and it is a most sought-
performance will ultimately improve (Shahzadi & Javedi,
after developmental intervention in the HR portfolio
2014).
(Pradhan & Jena, 2017) Within the framework of the
professionals, good employee performance mirrors the In the context shortage of labour skills and retaining top
ability to contribute through their works leading to performing employees is a huge challenge to the industry.
behavioural achievement that is in accordance with the Oroni, Iravo, & Elijah (2014) argues that motivation is
goals of the company (Muda, Rafiki, & Harahap, 2014). important for enhancing the high level of performance of
The logic in favour of bundling is straightforward… Since workers, which invariably leads to a higher productivity of
employee performance is a function of both ability and the workers. The term motivation derived from the Latin
motivation, it makes sense to have practices aimed at word ‘movere’, meaning to move and Motivation
enhancing both.’ Thus, there are several ways in which represents “those psychological processes that cause the
employees can acquire needed skills (such as careful arousal, direction, and persistence of voluntary actions that
selection and training) and multiple incentives to enhance are goal oriented (Ramlal, 2004). According to Richard &
motivation (different forms of financial and nonfinancial Edward, (2000) “Motivation concerns energy, direction,
rewards) (Armstrong, 2010). persistence and equifinality—all aspects of activation and
intention. Motivation has been a central and perennial issue
A study was done to find the effect of employee motivation
in the field of psychology, for it is at the core of biological,
on employee performance in which it was concluded that
cognitive, and social regulation. Perhaps more important,
if employees are more motivated then their performance
in the real world, motivation is highly valued because of its
will increase (Shahzadi, Javed, Pirzada, Nasreen, &
consequences: Motivation produces. It is therefore of
Khanam, 2014). Thus, as a motivator for employees
preeminent concern to those in roles such as manager,
managers and human resource department to optimize
teacher, religious leader, coach, health care provider, and
employee performance within a company or organisation,
parent that involve mobilizing others to act.”
it is important to use the monetary incentives alongside the
other incentives (both financial and non-financial) Improving productivity is one big challenge that engages
(William, 2010) . the attention of employers, whether private or public by
Management and Human Resource Research Journal
An official Publication of Center for International Research Development
Double Blind Peer and Editorial Review International Referred Journal; Globally index
Available www.cirdjournal.com/index.php/mhrrj/index: E-mail: journals@cird.online
pg. 3
Management and Human Resource Research Journal
Vol.11, No. 4, April-2022;
ISSN (4244 – 490X);
p –ISSN 3363 – 7036
Impact factor: 7.91

devising an appropriate mechanism for motivating their helplessness and weakness. The highest level of Maslow’s
workers. The seriousness of this challenge can be hierarchy of needs is the need for Self-actualization. The
understood from the management’s perception of the development of this need is based on the satisfaction at the
strong functional correlation between employee other four lower levels. It refers to the need of self-
motivation and organizational productivity (Haque, fulfilment and to the tendency to become actualized in
Haque, & Islam, 2014). Thus, reviewing the literature on what a person has potential (Haque, et al., 2014).
motivation, the researcher finds the theories of motivation
as Maslow’s hierarchy of needs, Herzberg Herzberg’s Two- Factor Theory
Motivation/Hygiene theory, Job characteristic theory, According to the two-factor theory which also called the
McClelland’s Achievement motivation theory, Vroom’s motivation-hygiene theory, it was gained wide acceptance
Expectancy theory, Equity theory, Goal Setting theory, in management circles and has had a major impact on job
Reinforcement theory, Clayton Alderfer’s ERG theory and design. And introduce two factors which make workers
Theory X and Theory Y which are described as motivation motivate, The Motivators and Hygiene Factors. Motivators
in advance. are higher needs for achievement. This involved the factors
that involved the feelings of achievement, professional
Maslow’s Needs Hierarchy Theory
growth, and recognition that a particular job brings out.
Maslow proposed that there are five different levels of Hygiene Factors are lower order needs that are met by pay,
needs people have to seek for the satisfaction of their basic working conditions, inter-personnel relations, supervision,
needs. The first or lowest level is Physiological needs. Company policy and administration. Herzberg argued that
Before these needs which include for example food, water, these factors do not motivate themselves but can prevent
shelter and clothing are fulfilled a person doesn’t have any motivation from occurring. Traditionally managers
other needs. When people don’t feel hunger, thirst or cold, regarded job satisfaction & job dissatisfaction as opposite
their needs are going to a second level. The second lowest ends of the same continuum. Herzberg’s two-factor theory
level is Security needs. In that level, a person needs to feel challenged this notion. Factors that produce job
secure in his/her family and in a society, and feel protected satisfaction are true motivators and are directly related to
against violence. The need for safety is manifested in job job content. A factor leading to dissatisfaction, according
security, savings and for insurances of health, mental to the theory, is hygiene or maintenance factors.
health, old age and disability. Love and belonging needs
are the third levels of Maslow’s hierarchy. After feeling Job Characteristic Theory
secure, people need to feel that they receive and give love, The Job characteristic theory is a more sophisticated
they are appreciated and they have good friendships. The development in relating the nature of the job to perform.
fourth level is Esteem needs. It is the need to be unique The argument, as with Herzberg’s theory, is that
with self-respect and to enjoy esteem from other employees are motivated by the intrinsic nature of the job.
individuals. People want to evaluate themselves highly and According to job characteristics theory, five core
based on their achievement receive appreciation from other characteristics of a job (Skill variety, Task identity, Task
people. Lack of these needs may cause inferiority, significance, Autonomy & Feedback) significantly affect
Management and Human Resource Research Journal
An official Publication of Center for International Research Development
Double Blind Peer and Editorial Review International Referred Journal; Globally index
Available www.cirdjournal.com/index.php/mhrrj/index: E-mail: journals@cird.online
pg. 4
Management and Human Resource Research Journal
Vol.11, No. 4, April-2022;
ISSN (4244 – 490X);
p –ISSN 3363 – 7036
Impact factor: 7.91

the levels of employee motivation & satisfaction problems, Need for Power
it is generally regarded as useful. Nurmi & Hinds (2016)
The need to make others behave in a way that they would
recognized that not all employees will respond positively
not have behaved otherwise or in other words, the need for
to a job high in motivating potential. There are three
Power as “the desire to influence or control others, be
characteristics of people which are especially important in
responsible for others and have authority over others
moderating both the job characteristics - psychological
(Moore, grabsch, & Rotter, 2010).
states relationship, as well as the psychological states
outcome relationship (Nurmi & Hinds, 2016). Need for Affiliation

McClelland’s Achievement Motivation Theory The desire for friendly and close interpersonal relationship.
Therefore, “the need for affiliation is the unconscious
McClelland’s theory of needs developed by David
concern for developing, maintaining, and restoring close
McClelland and associates. The theory focuses on three
personal relationships (Moore, grabsch, & Rotter, 2010).
needs. “Achievement Motivation Theory attempts to
explain and predict behaviour and performance based on a Vroom’s Expectancy Theory
person’s need for achievement, power, and affiliation”
(Lussier & Achua, 2007). Expectancy theory relates to choice behaviour and is based
on the logic that employees will do what they can when
Need for Achievement they want to. It assumes that employees are thinking,
reasoning people who have belief and anticipations about
The drive to excel, to achieve in relation to a set of
future events. Expectancy theory argues that an
standards, to strive to succeed. That is, the goal of some
employee’s choice of behaviour depends on the likelihood
individual in the story is to be successful in terms of
that their actions will bring a specific result that is
competition with some standard of excellence. The
attractive to them. To better understand this process,
individual may fail to achieve this goal, but the concern
vroom suggests that managers know the following three
over the competition with a standard of excellence still
factors.
enables one to identify the goal sought as an achievement
goal (Moore, grabsch, & Rotter, 2010).

Figure 2.1 Vroom’s Expectancy Theory

Source: Lunenburg, 2011

Management and Human Resource Research Journal


An official Publication of Center for International Research Development
Double Blind Peer and Editorial Review International Referred Journal; Globally index
Available www.cirdjournal.com/index.php/mhrrj/index: E-mail: journals@cird.online
pg. 5
Management and Human Resource Research Journal
Vol.11, No. 4, April-2022;
ISSN (4244 – 490X);
p –ISSN 3363 – 7036
Impact factor: 7.91

Expectancy theory says that an employee will be motivated behaviour is purposeful. It is regulated by the individual’s
to exert a high level of effort when he or she believes that goals. Goal-directedness, however, characterizes the
effort will lead to a good performance appraisal; that a actions of all living organisms including those of plants.
good appraisal will lead to an organizational reward such Thus, the principle of goal-directed action is not restricted
as bonus, a salary increase, or a promotion; and that the to conscious action (Hodgkinson & Ford, 2009). When an
rewards will satisfy the employee’s personal goals. employee does not perform as a manager expects, it is
often because the employee really doesn’t know what is
Equity Theory expected. Employees may think that they are performing
Equity theory, developed in the early 1960s by behavioural well, and then be shocked to discover that the performance
psychologist John S. Adams, is concerned with defining is not what the manager wants. This theory says the
and measuring the relational satisfaction of employees. following conditions are needed for goal setting to be an
Adams suggested that employees try to maintain a balance effective manager.
between what they give to an organization against what ❖ Managers must set clear & specific goals
they receive, and base satisfaction with their own balance ❖ Employees must accept the goals as their own
on perceptions of the same balance in colleagues (Kaur, ❖ Goals must be difficult but not impossible to
Aggarwal, & Khaitan, 2014). Employees want to be treated achieve
fairly. Equity theory states that if an employee sees a ❖ Managers must give the employee frequent
discrepancy between the outcomes they receive and their feedback on performance
input, compared with those of other employees, that
Reinforcement Theory
employee will be motivated to do more (or less) work.
Learning by reinforcement is not strictly a theory of
An employee’s point of view of fair monetary and non-
motivation. Unlike the theories discussed above,
monetary compensation is obviously subjective, yet it is
reinforcement theory is not concerned with the individual
critical in determining their behaviour. Equity theory is
thought process. It does not try to explain employees’
important to HR managers to ensure that organizational
behaviour in terms of needs satisfaction or expectation.
rewards are equitably allocated both in absolute and
Rather it focuses on rewards and punishments and the
relative terms. In business psychology, equity theory
effect they have on behaviour.
comes under the umbrella of organizational justice, which
is concerned with employee perceptions of a company's Clayton Alderfer’s ERG Theory
internal and external behaviour and how these perceptions
fuel or change their own attitudes and behaviour (Kaur, To align more closely to empirical research Clayton
Aggarwal, & Khaitan, 2014). Alderfer reworked the Maslow’s need hierarchy. His
revised need hierarchy is labelled ERG theory. Alderfer
Goal Setting Theory argued that there are three groups of core needs.

Goal setting theory is based on the simplest of • Existence Needs


introspective observations, namely, that conscious human • Relatedness Needs
Management and Human Resource Research Journal
An official Publication of Center for International Research Development
Double Blind Peer and Editorial Review International Referred Journal; Globally index
Available www.cirdjournal.com/index.php/mhrrj/index: E-mail: journals@cird.online
pg. 6
Management and Human Resource Research Journal
Vol.11, No. 4, April-2022;
ISSN (4244 – 490X);
p –ISSN 3363 – 7036
Impact factor: 7.91

• Growth needs action. This theory was based on two assumptions what he
Existence Needs called Theory ‘X’ and Theory ‘Y’. Theory ‘X’ was more
traditional and Theory ‘Y’ was more human-related
The existence group is concerned with providing our basic
oriented.
material existence requirements. They include the items
that Maslow considered to be physiological & safety Theory ‘X’
needs. • Employees inherently dislike work and,
whenever possible, will attempt to avoid it.
Relatedness Needs
• Since employees’ dislike work, they must be
The second group of needs is those of relatedness-the coerced, controlled, or threatened with
desire we have for maintaining important interpersonal Punishments to achieve goals.
relationships. These social and status desires require • Employees will avoid responsibilities and
interaction with others if they are to be satisfied and they seek formal direction whenever possible.
align with Maslow’s social need the external component of • Most workers place security above all other
Maslow’s esteem classification. factors associated with work and will
display little ambition.
Growth Needs
Theory ‘Y’
Finally, Alderfer isolates growth needs – an intrinsic desire
• Employees can view work as being as
for personal development. These include the intrinsic
natural as rest or play.
component from Maslow’s esteem category and the
• People will exercise self-direction and self-
characteristics included under self- Actualization
control if they are committed to the
ERG theory does not assume that a rigid hierarchy exists objectives.
where lower needs must be satisfied before the person can • The average person can learn to accept, even
move on or move up or down the hierarchy of needs. ERG seek, responsibility.
also demonstrates that more than one need may be • The ability to make an innovative decision
operative at the same time and if the gratification of a is widely dispersed throughout the
higher-level need is stifled, the desire to satisfy a lower- population and is not necessarily the sole
level need increases (Roberts, 2005). province of those
Theory X and Theory Y Factors of Motivation

All managers have their favourite theories about what Employers are faced with the task of motivating employees
motivates employees. In reality, these are not always stated and creating high job satisfaction among their staff.
or even recognized. They often operate as hidden policies. Developing programs and policies that embrace job
McGregor argued that some of these are remarkably satisfaction and serve to motivate employees takes time
pervasive and influence every managerial decision or and money. When the employer understands the benefits
of motivation in the workplace, then the investment in
Management and Human Resource Research Journal
An official Publication of Center for International Research Development
Double Blind Peer and Editorial Review International Referred Journal; Globally index
Available www.cirdjournal.com/index.php/mhrrj/index: E-mail: journals@cird.online
pg. 7
Management and Human Resource Research Journal
Vol.11, No. 4, April-2022;
ISSN (4244 – 490X);
p –ISSN 3363 – 7036
Impact factor: 7.91

employee-related policies can be easily justified. If the chance to influence the way in which they relate to work
employees are not satisfied with their jobs and not and environment.
motivated to fulfil their tasks and achieve their goals, the
Most of the time employees do not develop to maturity due
organization cannot attain success (Njambi, 2014). Thus,
to management practices that give them minimal control
in gaining high performance it’s important to identify the
and independence, rather than because they are lazy or lack
factors of motivation.
self-awareness. Usually, organizations are created to
Challenging and Exciting Works achieve certain objectives, so employees are fitted to the
job. Moreover, the management of these organizations
Challenging work can be a great motivator, as it can retain tries to increase organizational and administrative
employees with engaged and attentive in their role. For efficiency by transforming the workers into
many people, having to overcome some level of difficulty interchangeable parts. Decision-making is held by several
in their work is much preferable to the boredom of an easy, persons from top management and the rest of the members
unchallenging job. The challenges of a particular job are are strictly controlled through budgets, incentive systems
likely to be intrinsic to the role, but an employer should or standard operating procedures. The jobs are designed in
ensure that all staff knows how to access training and such a way that makes work unchallenging and repetitive
support when faced with the more difficult tasks. (Dobre, 2013). Thus, according to the literature it’s very
According to William (2010), moving employees through essential for creating and challenging and exciting working
a diversity of jobs, departments or functions is particularly environment for enhancing employee motivation.
an excellent approach to expose the employees to a
challenging task. This is very suitable for employees who Recognition and Rewards
have been on a job for a long time and are no longer
Reward system is an important tool that management can
challenged by the job but rather who have a strong need for
use to channel employee motivation in desired ways. In
activities or change. Moving employees through a
other words, reward systems seek to attract people to join
diversity of jobs, departments or functions is particularly
the organization to keep them coming to work and
an excellent approach to expose the employees to a
motivate them to perform to high levels (Pratheepkanth,
challenging task.
2011). According to Ehun & Duah (2011) explains rewards
According to Dobre (2013), if management emphasizes as ‘all forms of financial return, tangible services and
humanistic and democratic values, authentic relationships benefits an employee receives as part of an employment
developed on trust will develop among people, leading to relationship’. It is without a doubt that every employee
higher interpersonal competence and organizational expects some level of reward after delivering a function or
competence. In such an environment, people are given the task. Employees expect employers to deliver or execute
opportunity to develop to their full potential and designated duties to their satisfaction whilst employees
management strives to create an exciting and challenging also expect their employers to assure them of adequate
environment. The members of the organizations are treated wages and salaries (rewards) after they dutifully deliver
as persons with a complex set of needs and are given the what is expected of them.

Management and Human Resource Research Journal


An official Publication of Center for International Research Development
Double Blind Peer and Editorial Review International Referred Journal; Globally index
Available www.cirdjournal.com/index.php/mhrrj/index: E-mail: journals@cird.online
pg. 8
Management and Human Resource Research Journal
Vol.11, No. 4, April-2022;
ISSN (4244 – 490X);
p –ISSN 3363 – 7036
Impact factor: 7.91

Figure 2.2 Needs-related Model

Source: Armstrong, 2010

A needs-related model of the process of motivation is the company's reward philosophy, strategies and policy.
shown in Figure 2.2. This suggests that motivation is However, it might be challenging to find the right way to
initiated by the conscious or unconscious recognition of combine the company’s integrated policies and practices
unsatisfied needs. These needs create wants, which are together with the employee’s contribution, skill and
desires to achieve or obtain something. Goals are then competence (Mikander, 2010). Total reward describes a
established which it is believed will satisfy these needs and reward strategy that brings components such as learning
wants and a behaviour pathway is selected which it is and development together with aspects of the work
expected will achieve the goal. If the goal is achieved, the environment, into the benefits package. In the total reward
need will be satisfied, and the behaviour is likely to be system, both tangible and intangible rewards are
repeated the next time a similar need emerges. If the goal considered valuable. Tangible rewards arise from
is not achieved, the same action is less likely to be transactions between the employer and employee and
repeated. This process of repeating successful behaviour or include rewards such as pay, personal bonuses and other
actions is called reinforcement or the law of effect benefits. Intangible rewards have to do with learning,
(Armstrong, 2010). development, and work experience (Armstrong, 2010).

A well designed and functional reward system is an Recognition, whether it is cash or non-cash has an
efficient way to increase employee work motivation. The advantage over base pay and variable pay because it can be
appropriate type of reward is developed in accordance with used at any time. The company can immediately reward
Management and Human Resource Research Journal
An official Publication of Center for International Research Development
Double Blind Peer and Editorial Review International Referred Journal; Globally index
Available www.cirdjournal.com/index.php/mhrrj/index: E-mail: journals@cird.online
pg. 9
Management and Human Resource Research Journal
Vol.11, No. 4, April-2022;
ISSN (4244 – 490X);
p –ISSN 3363 – 7036
Impact factor: 7.91

and acknowledge something of importance that was not financial rewards. A further aim could be to use other
necessarily planned, such as unexpected and outstanding approaches to the development of the employment
achievements of individuals and teams. Non-cash relationship and the work environment, which will
recognition can be especially meaningful to the recipient enhance commitment and engagement and provide more
since it can be customized or personalized. Non-cash opportunities for the contribution of people to be valued
recognition also gives the company a possibility to and recognized (Armstrong, 2010). Further Eshun & Duah
distinguish themselves from other employers due to the (2011), found that the ideas and opinions with colleagues
fact that this type of recognition cannot be imitated by or management could trigger their inward abilities, and if
other companies (Mikander, 2010). Rewards may or may given the opportunity to make a certain decision in the
not enhance the employee’s financial well-being. If they workplace, they could improve performance.
do, they can do this directly through wages, bonuses or
There is a logical sense, where longer employment leads to
profit sharing or indirectly, through employer-subsidized
a prioritisation of motivational factors that are more
benefits such as retirement plans, paid vacations, paid sick
concerned with future opportunities, as their commitment
leaves and purchase discounts. Non-financial rewards do
to the workplace also increases with years of employment.
not directly increase the employee’s financial position but
(Bernotaite, 2013) Further according to the Armstrong
emphasize making life on the job more attractive. Rewards
(2010), the equal opportunity policy should spell out the
and recognition programs honour both individuals and
organization’s determination to give equal opportunities to
teams who go the extra mile to service their organizations
all, irrespective of sex, race, creed, disability, age, or
(Safiullah, 2014) Effective recognition enhances employee
marital status. The policy should also deal with the extent
motivation and increases employee productivity all of
to which the organization wants to take ‘affirmative action’
which contribute to improved organisational performance
to redress imbalances between numbers employed
(Roberts, 2005).
according to sex or race or to differences in the levels of
Opportunities qualifications and skills they have achieved.

Thus, motivation theories further discussed this aspect. Methodology


According to Armstrong (2010), Herzberg had an immense
The present study effort is to evaluate the relationship
influence on the job enrichment movement, which sought
between motivation and employee performance through
to design jobs in a way that would maximize the
testing the developed hypothesized relationships.
opportunities to obtain intrinsic satisfaction from work and
Qualitative research is a vital method to Human Resource
thus improve the quality of working life. His emphasis on
Management in contrast to quantitative research as HRM
the distinction between intrinsic and extrinsic motivation
mainly pacts with human attributes, quality and
is also important. In explaining opportunities in an
behaviours. However, for this study, mix methodology has
organisation, it can be identified in several ways. Such as
been used in which both qualitative and quantitative
learning opportunities, career advancement opportunities,
philosophies are used which helps to expresses the findings
training opportunities and so on. The basic aim might be to
in a well-explained manner. Qualitative information
achieve an appropriate balance between financial and non-
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required was collected through discussions, observations introductory study and findings in the literature review,
and secondary data collection methods whereas employee motivation has an impact on employee
quantitative information was demonstrated by the SPSS performance has been further analyzed. Thus according to
software in which data gathered through a questionnaire the study, the main two variables are employee motivation
has been analyzed methodically. and employee performance. And there are three attributes
in the independent variable as challenging and exciting
In the study, the dependent and independent variables
works, Recognition and rewards and the opportunities. The
which are identified by the researcher were include and
study is move with analyzing the effectiveness of these
developed the conceptual framework. Based on the
three attributes on employee performance.

Figure 3.1: Conceptual Framework

Independent Variable (X) Dependent Variable (Y)

Challenging and exciting works

Recognition and rewards Employee Performance

Opportunities
Source: Researcher’s work, 2018

Based on the above conceptual framework, the following hypothesis, are developed to test the relationship between
independent and dependent variables.

Table 3.1: Hypothesis

Ho1 There is no relationship between motivation and employee performance


H1
Ha1 There is a relationship between motivation and employee performance
There is no relationship between challenging and exciting works and employee
Ho2
performance
H2
There is a relationship between challenging and exciting works and employee
Ha2
performance

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Ho3 There is no relationship between recognition and rewards and employee performance
H3
Ha3 There is a relationship between recognition and rewards and employee performance

Ho4 There is no relationship between Opportunities and employee performance


H4
Ha4 There is a relationship between Opportunities and employee performance
Source: Compiled by the author, 2018

To achieve the objectives which are derived from the sampling method also be used since the sample is quite
identified research problems the design is organized by the larger. The non-managerial population can be divided into
researcher. The conceptual framework is used to evaluate roles like drivers, tea collectors, labourers and so on. Thus,
the correlation between the independent and dependent sample size 336 is arrived by the researcher since it’s
variables. To assess the relationship between dependent difficult to count all employees within the area and then the
and independent variables the hypothesis was developed. results also easily can be related to the country level too.
To measure the indicator of each variable a questionnaire
In this present study, questionnaires will be developed
is developed using the operationalization. The primary and
considering the main and specific objectives of the study.
secondary data collection was based on the majority of
Here distributing questionnaires and interviewing methods
quantitative data but also includes a qualitative data
are used to collect primary data. Generally, to identify the
collection method through in-depth interviews.
real situation of the area by collect data for the study while
In this examine, Pelmadulla divisional secretariat in there is not having secondary data for this kind of research.
Ratnapura district was taken where the distribution of tea This helps to collect the data on the dependent and
factories is thirteen. The main agricultural activity of the independent variables of the study. And the Likert-scale
area and primary income generator in agriculture is from approach is used to identifying and analysing the
smallholder tea plantations. Some people were doing this independent and dependent variables as mentioned in
as a secondary income generator. Thus, tea factories in the testing the hypothesis. Secondary data also used for the
area are diverse to collect and to do the manufacturing completion of the research. The focus of this study is to
process. Accordingly, the employees of these factories are examine the impact of motivation on employee
from the above-mentioned area as well residing in outside performance. Regarding secondary data was collected
too. So, in completing this research the sample of non- from journals, publications, periodicals, central bank
managerial employees was chosen considering with only reports and websites which includes local and global
the factor of the workplace. Following is the ward map of details on employee performance on tea plantation were
Pelmadulla divisional secretariat. In this study, a simple studied.
random sampling technique would be used as the whole
population is in factories in the area. Further, Snowball
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In analysing of data Social Package for Social Sciences employees in tea industry this can be varied with many
(SPSS) will be used for conducting descriptive analysis. In factors in different regions so in generalizing the outcome
this study, considered an independent variable is may not be the real situation in the country. And with the
motivation and attributes which are taken is challenging management of factories and since these are with personal
and exciting works, recognition and rewards and attributes situation in the factories also be different.
opportunities for employees. Employee performance got as Further, the data collections of the study were based on the
the dependent variable for the study. Further, in expressing responses of respondents, so personal biases and the
the conclusion and recommendation it considered details respondent’s perception may be involved. However, the
which were collected while interviewing people in maximum effort was taken to minimize such errors.
collecting questionnaires and to compare the status in Sri
Results and discussion
Lanka with world context. Additionally, the future
prospectus can be taken to improving employee To analysis, the researcher developed the Likert scale data
performance in tea plantation for achieving higher to a scale which gathered through the questionnaire and
productivity. The limitation of the study can be identified used for SPSS calculations and performed the hypothesis
as when getting a look on the motivation factors of the testing.

Hypothesis I

Ho1 There is no relationship between motivation and employee performance

Ha1 There is a relationship between motivation and employee performance

Figure 4.1 – Relationship between motivation and employee performance

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Source: Survey Data, 2018

Test Statistic

R = 0.597, P= 0.000

Decision Rule

If P <  = 0.05 → Reject Null Hypothesis

Conclusion

It can be concluded that the null hypothesis is rejected when the P-value for the correlation between motivation and
employee performance is 0.000 which is less than 0.05, with a 95% confidence level. Further there is a significant positive
relationship between motivation and employee performance with a correlation coefficient of 0.597.

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Hypothesis II

There is no relationship between challenging and exciting works and employee


Ho2
performance
There is a relationship between challenging and exciting works and employee
Ha2
performance
Figure 4.2 – Relationship between challenging and exciting works and employee performance

Source: Survey Data, 2018

Test Statistic

R = 0.553, P= 0.000

Decision Rule

If P <  = 0.05 → Reject Null Hypothesis

Conclusion

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It can be concluded that the null hypothesis is rejected when the P-value for the correlation between motivation and
employee performance is 0.000 which is less than 0.05, with a 95% confidence level. Further there is a significant positive
relationship between challenging and exciting works and employee performance with a correlation coefficient of 0.553.

Hypothesis III

Ho3 There is no relationship between recognition and rewards and employee performance

Ha3 There is a relationship between recognition and rewards and employee performance

Figure 4.3 – Relationship between recognition and rewards and employee performance

Source: Survey Data, 2018

Test Statistic

R = 0.564, P= 0.000
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Decision Rule

If P <  = 0.05 → Reject Null Hypothesis

Conclusion

It can be concluded that the null hypothesis is rejected when the P-value for the correlation between motivation and
employee performance is 0.000 which is less than 0.05, with a 95% confidence level. Further there is a significant positive
relationship between recognition and rewards and employee performance with a correlation coefficient of 0.564.

Hypothesis IV

Ho4 There is no relationship between Opportunities and employee performance

Ha4 There is a relationship between Opportunities and employee performance

Figure 4.5 – Relationship between Opportunities and employee performance

Source: Survey Data, 2018 Test Statistic


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R = 0.501, P= 0.000 Thus, based on these statistical evidence to increase the


employee performance of the non-managerial staff in the
Decision Rule
tea factories in the subject area, the factors of motivation
If P <  = 0.05 → Reject Null Hypothesis have a direct impact. Hence, motivation has to be increased
within the factories. Since the non-managerial staff
Conclusion members are persons who directly involved in the
It can be concluded that the null hypothesis is rejected manufacturing process. Hence, the management of the
when the P-value for the correlation between motivation factories has to look at the matter which is also important
and employee performance is 0.000 which is less than in achieving their organizational goals as well in
0.05, with a 95% confidence level. Further there is a maintaining the country standards with the competitive
significant positive relationship between Opportunities world market.
and employee performance with a correlation coefficient 3. Conclusion
of 0.501.
According to the information unfolding from this research,
Thus, with these analyses, it can conclude the strength the present context, motivation is highly associated with
between the independent and dependent variables. So, employee performance and that there remains significant
there is an impact on motivation factors on employee scope in production too. Thus, according to the above
performance. According to the above hypothesis analysis, analysis, it is proved that there is an impact of motivation
it’s proven that there is a positive relationship between the factors in employee performance. Because of the
above motivation attributes and employee performance. complexity and dynamism of this academic discipline,
Further researcher conducted a regression analysis to researchers have attempted to give a theoretical
check the relationship of the independent variable versus explanation on how best employees can be motivated
the dependent variable. which have been mentioned in the second chapter on
Based on the result of R2 value 35.7% of motivation motivation attributes and how this can lead to higher
determined by employee performance. Accordingly, performance. In the present research researcher able to
30.6% of challenging and exciting works, 31.8% of prove the literature based on the analysis. And it has been
recognition and rewards and 25.1% of opportunities are proved in by rejecting the hypothesis I. Thus, the
determined by employee performance which is observed researcher able to achieve the objectives of the study by
from the present study. As previously proved in the determining the factors effect on performance. Here by the
literature, the present study also proved the effectiveness researcher gave the conclusion for the motivation attributes
of identified motivation factors to the employee based on the present research whereas the attributes have a
performance. Further according to the graphs, it is significant impact on the employee performance.
graphically proved with the hypothesis test that without When carefully analysing the relationship between
having the motivation that employee performances are at a challenging and exciting works, there is a positively
very low level. correlated relationship and if the value gets near to 0

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employee performances get 0. So in enhancing employee perception and according to the others’ perceptions, 39%
performance, it has to be diverting employees within the of employees were given negative feedback to the current
job and given different tasks to complete. Then it will help compensation package. But 47% of employees were
to improve the performance among employees. In agreed with the retirement and other benefits. In that sense,
checking the employees’ responds to the questionnaire it can be concluded that in the factories there is a proper
most of the employees were agreed with statements mechanism in retirement package but not in the
provided by the researcher. These statements were compensation package. Appreciation for employees in the
developed based on the literature to get the real scenario. working environment is being agreed by 33% of
Thus, 40% of employees were agreeing with the nature of employees and 59% agreed that they were getting
the workplace and to the working conditions. And 53% recognition from the workplace. But only 25% of
were agreeing with the work environment while 34.3% of employees were agreed with monetary incentives.
employees were agreeing with that, they were getting Whereas 68% of employees were expressing neutral
support from the other employees. In that scenario, by feedback. So, in developing recognition and reward
agreeing to the above statement by around the same packages for employees, it’s clear that including both
percentage of employees it can be concluded that the same tangible and intangible factors is a must. Further,
employee was in the categories. according to the literature also it found that both intrinsic
and extrinsic factors, as well as tangible and intangible
Further, based on the survey data to concluding the
motivation factors, are vital in improving employee
categories of employees who are disagreed to the above-
performances in the workplace. Hence, management has to
mentioned areas there were 20% or 30%. And in the
be aware with the scenario in order to enhance the
decision-making process, this has to be thoroughly
employee performance.
analysed in order to reduce these levels. After the analysis
of these perceptions of employees finally, the researcher As explaining the motivation attributes in the scenario
proved the relationship between the challenging and opportunities also has a significant impact on employee
exciting works and employee performance by analysing of performance. The scholar proved the relationship in
hypothesis II. And in the present study also it is proved that hypothesis IV and by enhancing opportunities like job
there is a significant relationship between two variables. training, career advancements, promotions it will help in
enhancing employee performance as well as achieving the
In analysing the hypothesis III, the researcher proved the
organizational goals. Therefore, the researcher able prove
relationship between recognition and rewards and
the relationship in the present study as same as found in the
employee performance. As significantly proved the
literature. Further, in concluding the researcher’s findings
relationship giving incentives and rewards for employees
on the survey 55% of employees were agreed that they
will help to motivate them in the workplace. Thus, it
were having opportunities to the growth of employee
proves the literature in the existent world statistically by
living standards while 39% were agreeing with that they
collecting the employees’ perception from the
have opportunities for advancement of their career. And
questionnaires. According to the survey data in recognition
only 24% of employees agreed to the promotions in the
and rewards around 1/3 of employees were given moderate
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organization. Thus, it’s clear that the job in the factory is Thus, on the other hand, giving challenging and exciting
helping them to increase their living standards but after that works to the employees will help in the developing of the
when they enter into the job, they were remaining on the industry too. As an example, if the management introduced
job for long times with not being able to be promoted. In new machines to the workplace, it would motivate
the other hand 44% of employees were disagreeing to that employees as well develop the factory environment too.
they were having regular on the job training. Only 20% of Then, it will lead to increase employee performances as
employees were only agreed that they were having the well the industry standards too. So, as identified in the pilot
training. In according to the findings, the scholar gives the research since the factories in the area currently in under
following recommendations to enhance employee performances level giving these tasks to employees will
performance by the present study. And if the present study help to overcome the issues. Hence, when the management
will help to identify the issues and to enhancing employee takes decisions, they must be aware of these approaches to
performance within the non-managerial staff of the subject engage employees with full potential levels. And giving
area besides to use as a tool in decision making to the responsibilities for employees to complete their tasks may
relevant bodies. help in enhancing performances as most employees were
given positive feedback on taking responsibilities. Further,
4. Recommendations
giving right supervisions to employees and making mutual
According to the research conducted and academic understanding among employees can be used to enhance
concepts developed by previous researchers in the theme employee self-confidence among employees.
following recommendations are developed to enhance the
When it comes to managing recognition and rewards in the
employee performance in the area. Providing these
study environment; it would be beneficial to introduce an
recommendations for each attribute the researcher intends
attractive remuneration system where all the employees
to propose practices to enhance performances in order to
can harvest as they plant. This should go hand in hand with
increase employee performance and to increase the
transparency in order to minimize the issues related to the
industry standards when relating to the country. As a main
reward system. Further, equal opportunities should be
identified attribute, challenging and exciting works have to
available without any biases or favouritisms. Not only is
be managed in appropriate methods. According to the
that, enhancing career progression paths another well-
literature as a great motivator for employees challenging
recognized method in managing recognition and rewards.
and exciting works has to be introduced. These tasks
This can improve employee motivation and employee
should not be repetitive tasks which lead them to be bored.
satisfaction as well. Finally, that can grow employee
Then it would enhance the work capacity and improve the
motivation and will pave the way to achieve organizational
effectiveness and efficiency of their works by changing the
goals while achieving the personal goals of the employees
nature of the job. Thus, organizations must be created to
as well. Since, as found by the researcher in the factories
achieve certain objectives, for employees and which also
they were not having a good compensation package for
help to achieve organizational objectives and personal
employees. Developing a compensation package which is
goals.
specifying to each job is a must. As in the non-management

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staff, there are machine operators, drivers, field officers, To enhance the industry standards, it has to be clearly
labourers, clerks and so on. looking at the HR approaches also in the tea factories.
Hence, the present study also only covers 3 attributes of
Additionally, according to the present research non-
motivation and it’s better to cover other attributes in the
tangible incentives are very important in enhancing
motivation. As it is important to find the effectiveness of
employee performances and there can be identified up to
other motivation factors too. Further, a researcher could
some extent it is being practised. But not like that there is
not be able to find out researches which are related to
a moderate response for monetary incentives. So,
human resources management in the tea industry in the
developing a performance-based incentive system will
area. So, it’s better that if further research is done on the
help to get the full potential levels of employees’ and then
human resource management approaches which are related
it directly led in achieving factory targets and finally the
to the industry. Thus, it will be helpful in addressing the
productivity of the industry.
issues of the local tea industry as well.
In managing opportunities, offering equal opportunities for
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