Factors Affect on Employee’s motivation

Abstract:

The present study aims to explain what are the factors affecting the employee’s motivation. Employee’s motivation plays a vital role in the prosperity of the employee’s of the organization. For this study, I took four independent variables salary, benefits, performance and training that are directly related with the employee’s motivation of the organization.

Different hypothesis are formed on the basis of dependent and independent variables. Then a survey will be conducted by using a questionnaire with the 200 respondent. The four independent variables have a great impact on dependent variable, employee’s motivation of the organization. All these four independent variables are almost positively related with employee’s motivation of the organization. They have some who directly linked with it.

 Salary is generally considered as a powerful tool in organization to work hard. Performance is one of the factor that the employee work good directly, as well as indirectly. Thus the training is also play a very important role in the company, if the good trainer and intellegent employees are in the company so company or organization get good and high result. In the company, if the management gave them different types of benefits so, the employees are happy and work hard to get good result.

Introduction

The main focus of the motivation is clearly about the people of the company and through different prospective. Actually the motivation may come from the internal aspect of the employee or being affected by the environment. Motivation affects the different aspects or factors of the employee’s. The main purpose of this study was to “factors affects on employee’s motivation” specially performance of the employee in the company. (Winston, 1997).

 Motivation plays a critical role on employee performance, employees training, employee’s benefits and salary and so many other factors. There are many factors that can affect this motivation, both positively and negatively. The purpose of this proposal that affect motivation and to through research provide evidence that will support and check the how more effective employee’s are if they have the right motivation to perform. Also showing how motivation can increase performance as well as so many other factors of employee’s. These things will be the key in management and the way they motivate their employee’s. (Rottenberg, 1956)

Many companies don’t see the need to recognize the factors that affect the motivation of their employees. They look at the employee’s the same as just another tool in the tool box for completing the product of their company. (Baldwin, 1984; Moe, 1984)

Motivation is defined as internalized to the extent that it is independent of externally mediated sanctions and is hypothesized to occur to the extent that role performance is relevant to the maintenance of an individual's self identity (Vroom, 1962, p, 161).

“While good people are hard to find, great people are much harder to replace.”

                                                                           (Michael Gold)

Purpose statement:

The purpose statement of this study is to examine those factors that are affecting the employee’s motivation of the organizations or companies. And also to see how these factors affecting the employee’s motivation, either it has positive effective or negative. It also aims to find out the relationship between these dependent variable (factors affecting the employee’s motivation) and independent variables (performance, benefit, salary, training).

Objective of the study:

The objectives of the study are given below:

Ø  To explain the factors affecting on employees motivation in context of selected variables.

Ø  To analyze how independent variables effecting dependent variable.

Ø  To know the reasons behind these effecting variables.

Ø  To study and analyze the problems of employees motivating.

Significance of the study:

·         The study will attempt to explain that how education, stock markets and financial development affecting the economic growth of Pakistan.

·         It will be helpful for policy makers to make such economic policies which are worth full for economy.

·         The Government can also take help by this research before making budgets.

·         Government can check and predict where the need is for improvement and which sector is requiring more attention regarding economic growth.

·         It will also helpful for future researchers to research in

·         required information from it.

·         The study has its own significance that how this research will apply practically and prove helpful for economists.

Deficiencies of the previous studies:

·          The previous studies are not done in the Lahore.

      ·         The variables which I have selected are not used in Lahore with the 300 respondents before.

Research Questions:

What are the factors affecting on the employee’s motivation?

Sub Questions:

1.      What is the affect of salary on the employee’s motivation?

2.      What is the affect of performance on the employee’s motivation?

3.      What is the affect of training on the employee’s motivation?

4.      What is the affect of benefits on the employee’s motivation?

Hypothesis:

Hypothesis of performance:

H_o:  There is no effect of performance on employee’s motivation

H₁:  There is an effect of performance on employee’s motivation.

Hypothesis of salary:

H_o:  There is no effect of salary on employee’s motivation.

H₁:  There is an effect of salary on employee’s motivation.

Hypothesis of benefits:

H_o:  There is no effect of benefits on employee’s motivation.

H₁:  There is an effect of benefits on employee’s motivation.

Hypothesis of training:

H_o:  There is no effect of training on employee’s motivation.

H₁:  There is an effect of training on employee’s motivation.

Model:

Training

Salary

                                 Factors Affect on Employee’s motivation

Benefits

Performance

Theoretical framework:

Salary:

According to Dilbert’s theory:

Theorem on Salary states that engineers, programmers and scientists can never earn as much salary as business executives and sales people.

Benefit:

According to Adams equity theory:

Adams called personal efforts and rewards and other similar 'give and take' issues at work respectively 'inputs' and 'outputs'.

Training:

According to AAHC Authors:

The infrastructure required to support and sustain compliance education and training programs is often decentralized and under-resourced which can hamper program effectiveness within academic health centers.

Performance:

According to Robert Sutton:
"Beyond Performance is a gem it is evidence based, emotionally compelling, and relentlessly useful. If you want to create a team or organization that enjoys sustained financial performance and where people love to work this delightful book is for you."

Literature Review

Motivation and its application has been the center issue in the human resource department. The motivation and its different philosophical views create a link between the employee’s knowledge and skills and also the nature of their work. (Wright, 2001)

The employees to work can be based on the needs of security such as in the works of Maslow in the hierarchy of needs (Ryan and Deci, 2000b), or the theory between the person that is willing to work under pressure and to the one who is not (Winston, 1997).

Maslow (1943) stated that people and including employees at organization, are motivated by desire to achieve or maintain the various conditions upon which these basics satisfactions of wants. In the perspective of the human resource manager, the commitment of the employee to perform well is favorable in the organization. for some other researchers, Maslow believed that human beings aspire to become self actualization. Maslow believed that there are at least 5 set of goals which can be referred to as basic needs and are physiological, safety, love, esteem and self actualization the motivation is the kind of force that drives a person to do his best contribution in the organization and commitment comes next(meyer, becker,and vandenberghe,2004).

The productivity may appear in every employee and that is very beneficial in the organization .The decision for the promotion is very good for employee. In the continuous reflection of the organization towards the certain changes, the challenges that happen to effect the entire organization can be minimize (kreisman, 2002).

The employees that will create a great factor or contribution such as improvement in their field of work will definitely feel the job satisfaction and indeed,might reflect in their compensate (egan,yang, and Bartlett,2004).

Employee performance is described as function of ability and motivation, and one of the primary tasks facing a manager is motivating employees to perform to the best of their abilility. In fact, motivation has been described as “one of the most pivotal concern of modern organizational research” (Baron, 1991:1)

Organizational human resource management strategy.  A  number  of HRM  and  OB  scholars  have addressed  the  linkages  between  business  and  HRM strategy  and  performance  appraisal procedures  (e.g.,  Butler,  Ferris  &  Napier, 1991).

 Kerr  (1985)  identified  diversification  process  to  be  a  major  determinant of  managerial  appraisal  and  reward  systems.  In  perhaps  the  most  comprehensive analysis  of  business  strategy,  HRM  strategy,  and  HRM  policies  and  practices, Sonnenfeld  and Peiperl  (1988)  articulated  four  organizational  archetypes. Among  the  differences  between  these  archetypes  was  the  emphasis  on  internal staffing,  with  certain  types  of  organizations  placing  heavy  emphasis  (i.e.,  the academy)  and  other  types  of  organizations  (i.e.,  the  baseball  club)  placing  little or no  emphasis  on  such  practices.  Organizations  which  attach  a  high  priority to  internal  staffing  must  have  the  requisite  training  and  development  programs in  order  to  succeed,  and  effective  performance  evaluation  and  feedback mechanisms  are  a  necessary  component  (Hall,  1984).  Accordingly,  it is hypothesized  that  organizations  which  emphasize  internal  staffing  will  be  more likely  to  reward  performance  appraisal  activities  than  organizations  which  do not  emphasize  internal  staffing.

Four kinds of performance may be suggested: 

·         Economic (productivity, profitability, etc.),

·         Technological (development of new products, etc.),

·         Commercial (market share, a specific niche, etc.),

·         Social (effects on customers, suppliers and the public at large) (Bartram et al, 2002).

The problems  associated with  basing pay  on objective measures  suggest that  subjective  performance  measures  should  be  utilized,  but  subjective  appraisal systems  are  unpopular  with  both  employees  and  supervisors.  Milkovich and Newman [33] (p. 334).

Public-private differences in work effort may exist because the sectors differ in the rewards they offer or the workers they attract. Private businesses may be better structured to link external motivators to individual productivity, but government work may be intrinsically more satisfying. Whether people perceive government jobs as safe havens for the lazy or as opportunities for public service may determine which sector attracts more motivated workers. A belief that extrinsic rewards and punishments are the primary sources of work motivation may underlie the popular perception of the lazy bureaucrat, as governments face more obstacles than businesses in using compensation or discipline to motivate managers and employees (Baldwin, 1984; Moe, 1984). Unlike some managers in private firms, public managers cannot share in profits if their agencies perform well, and they do not lose their jobs if their agencies fail. Consequently, governments have fewer material incentives to extract high performance (Johnson & Libecap, 1994).

An  important  determinant  of  almost  any  behavior  is  the  attainment  of  valued  rewards  (Kanfer,  1990).  In  the  performance  appraisal  context,  raters  are likely  to  consider  the  possibility  of  receiving  extrinsic  rewards,  such  as  raises and  promotions.  That  is,  it  is  possible  that  engaging  in  careful  information processing,  making  accurate  ratings  or  providing  feedback  to  subordinates  will be  directly  rewarded  by  the  organization.  Likewise,  the  rater  may  consider whether  engaging  in  performance  appraisal  activities  will  indirectly  result  in achievement  of  rewards. 

Participants in positive moods at the time of training have greater short-term intrinsic motivation and intentions to use a specific technology. However, these positive mood effects are short-lived and 6 weeks after training, intrinsic motivation and behavioral intentions are consistent with participants in neutral moods. Participants in negative moods at the time of training had immediate decreases in intrinsic motivation and intention to use technology, and these effects were persistent even 6 weeks after continued use of the system. This finding is particularly salient given that 6 weeks after training, participants were likely to have been influenced by additional exposure to and information about the technology from peers. These findings have important theoretical and practical implications for employee training and at the same time, contribute to the research stream assessing mood effects by examining their sustainability.

"To treat people fairly you have to treat people differently."

                                                                             (Quoted in Schlesinger [39].)

Rewards, according to most motivational psychologists, have a central role in guiding behavior (Weiner 1980). Rewards related to a work environment often are conceptualized as being of two types, intrinsic and extrinsic (Lawler 1973).  On  the  basis  of  a  survey  of industrial and  organizational psychologists,  Dyer  and Parker  (1975)  concluded  that  a  generally  accepted  definition of  intrinsic rewards is  "rewards  derived  directly  from  or  inherent  in  the  task  or job  itself associated with  the content of  the  task or job"

The results of this study show that the external benefits of certification in this study are, in order of importance:                             

·         Better response to customers’ requirements                         

·         Improved customer relations              

·         Improvement in customer services                     

      ·         Reduction of customer audits (Lloyds Register Quality Assurance c e Ltd, 1994).       

Three points of influence of the standard on the company’s external customers can be          emphasized:                                              

·         The increased customer satisfaction        

·         The drop in the number of complaints       

·         The rise in repeat purchasing

A study of 160 Australian companies (Br own and VanderWiele, 1995) found the following benefits from certification :          

·         increase in company quality awareness;

·         increase in product quality awareness ;

·         improvement in management;

·         improvement t of customer relations;

·         improvements in the products and services offered;

·         improved relationship with the organization ;

      ·         greater customer satisfaction;

·         Increased respect from competitors.

However, another study, carried out in the UK (Lloyd’s Register Quality Assurance Ltd, 1994), summarized the benefits of certification as follows:

·         An important marketing too l which helps market relations.

·         Increases the chances of winning new contracts.

·         Decreases the number of customer audits.

      ·         Helps penetration o f international markets considerably.

Job impact on beneficiaries is the degree to which a job provides opportunities for employees to affect the lives of beneficiaries. I assume that opportunities for impact are motivating at the level of the job  how employees experience their collections of tasks rather than at the level of the single task (Wong & Campion, 1991).

However, in emphasizing the importance of pay as a motivator, we are not saying that pay is the only important motivator. Indeed, it is clear that many of the other factors mentioned by researchers such as Maslow and Herzberg (for example, interest in work and participation in decision making) are also important motivators to many People, as confirmed in the empirical results Shown in both columns of Table I. Thus, we recommend that  multiple  motivators for example, performance-based pay and challenging work be used in conjunction with one another as they are in such successful firms as Microsoft and General Electric, or firms that use open book management practices (a combination of complete financial information  sharing,  companywide  performance based  pay,  and  high  levels  of  employee involvement in decision making; see  Case, 1998).

In addition, we are not saying that pay is always the most important motivator or that pay is equally important in all situations. Although Meta analytic results can tell us about motivational effects “on average,” they cannot tell us what is appropriate for a particular manager to do in a given situation. Most managers (correctly) believe that the importance of pay depends on a number of variables, both situational (e.g., what others are paying) and individual (e.g., personality or performance level). This same point has also been made by academics. For example, economists have emphasized that attribute importance can only be determined in concrete choice situations where various  job characteristics are assumed to be traded off against each other to reach the highest over-all utility (Rottenberg, 1956). Similarly, psychologists have noted that individual differences in personality and performance also influence the attention given to pay in behaviors and decisions (e.g., Trank et al., 2002; Trevor, Gerhart, & Boudreau, 1997).

“I am the better off if the poor the better off; I am better off still if you are the one who makes them so.” Gassler(1998,p. 3)

If employees in the same job at the same company all receive highly similar “merit” increases despite noticeable differences in performance (a rather com-mon situation, by most accounts), managers will similarly conclude that pay is not effective in motivating people. However, it is important to recognize that in these examples, pay is not motivating because it is not being used in a way that would be expected to produce motivation. In both  scenarios,  pay  would  be  expected  to play an important role if opportunities for pay varied significantly across employers, or across  individuals  of  varying performance levels within the same employer. The importance of pay variability in influencing pay importance has been demonstrated empirically under carefully controlled conditions. For ex-ample, Rynes et al. (1983) showed that pay explained an average of 65% of the variance in subjects’ overall evaluations of job attractiveness when presented with jobs having a wide  range  of  salary  alternatives,  as  com-pared to only 40% when presented with a pay range half as great. The  fact  that  the  importance  of  pay changes with variability in pay alternatives can also be seen by contrasting the effects of pay  in  vibrant  versus  stagnant  economies. During the late 1990s, for example, the importance of pay in shaping behavior could easily be observed as many of the most marketable employees bailed out of large, relatively  stable  employers  to  pursue  much higher  upside  earnings  opportunities  (via stock options and grants) at smaller, high growth companies. pay level will clearly be-come “important” and affect employee behaviors if it is cut, particularly if employers do not communicate a convincing reason for the change (e.g., Greenberg, 1990). In-deed, most managers have at least an implicit understanding of this psychological dynamic in that they appreciate the extreme sensitivity of the decisions they make concerning pay and how it is communicated. Unfortunately,  awareness  of  employees’ sensitivity to pay often causes managers to shrink from openly communicating about it (Lawler, 1981), despite the fact that direct communication  can  be  very important  in terms of making employees feel that decisions were fairly arrived at and in motivating  future  performance  (e.g.,  Greenberg, 1990; Prince & Lawler, 1986).

The aspect of pay that will most directly motivate performance will be the extent to which pay is contingent on performance. Thus, if raises are barely differentiated on the basis of performance, then it should not be at all surprising to find little influence of pay on motivation. One of the most important suggestions to emerge from the reviewed research is that one needs to track employee behaviors as well as employee attitudes. Every time employers make pay changes, employees are on “high alert” for changes that might signal differences in how they are regarded by the employer, particularly in relation to peers or to their own past relationship with the employer. Research suggests that individual pay-for-performance schemes (e.g., merit pay, individual incentives, or bonuses) are most important to high academic achievers, high-performing employees, and individuals with high self-efficacy and high needs for achievement just the types of people most employers claim to be looking for! The systematic underestimation of pay’s importance, both by managers and employees, is a puzzle that merits examination.  

Methodology:

Data collection & Research design:

In that research study we will use Quantitative (Positivism) approach. To handle our defined research easily. A structured questionnaire would be made to collect data from respondent. This study will be cross sectional in nature. A survey will be conducted from different companies to generalize who the selected variables are related with each other. The reason to choose questionnaire is that it will describe a population by providing a quantitative or numeric description of some fraction of population (the sample) through the data collection process of asking questions of employees. This will enable to generalize the finding from a sample of responses to a population.

Sampling Techniques:

Stratified random sampling technique will be used, to generalize the finding and to ensure equal representation of both the genders i.e. males and females and also because of different companies in service industry sector.

Target population:

The target population for this study will be the companies (as mentioned above in literature review) and organizations from both public and private sector of Pakistan from the city of Lahore. The respondent will be the employees, management and businessmen of organizations with the age of 25-45.

Sample Unit:

A sample of 200 employees from different organizations will be used to collect the information. Male respondents are 140 and Female respondents are 60.

Analysis of data:

SPSS software would be used to analyze the data in addition to other suitable statistical techniques. Then data will be collected quantitatively .And then data will be coded and finally results will be generated through SPSS software to analyze data. This approach is chosen for two reasons:

–        It is closer to the way in which quantitative data analysis is carried out in real research these days.

–        It helps to equip the researcher with useful transferable skills.

At least 200 questionnaires will be conducted from different service industry organization’s employees and businessmen.

Validity:

The Validity is an important element for the readers that gives proof of the study more confidently and in a trusty way. Validity of the study increases the authenticity of the entire research. It gives the proof of research that it based on true findings and conclusions. We will use face validity to measure the right thing. The face validity along with concurrent validity will be second-hand in the quantitative phase that emphasizes on what we will see regarding the answers specified by the respondents at the present time.

Reliability:

The reliability is an important element to increase the authenticity of the research. The consistency of the respondents answers will provide that the data collected will be reliable. For reliability we will use Parallel-form reliability to check the accuracy of the measurement by using two different instruments to get the same result which we want and make the personal data of respondents in confidential from others.

Limitations and Delimitations:

Limitations:

Due to limited availability of resources our research is limited to limited population size. This will limit the findings to be applied to other cities. Due to limited resources we have selected only 200 respondents for this study. It also limits the findings to be applied to other industries and organizations.

Delimitations:

It is a voluntarily research. Any of the general public and employee’s can be a part of this project. The scope of the study may focus on specific variables such as performance, salary, training and benefits described in the proposal.

Ethical consideration:

Ethics are considered as the most important element while collecting data from the respondents. Developing this proposal as well as during the complete research process, ethical issue will be deeply and wholly kept in consideration since the introduction of research problem statement till Writing and disseminating the whole research. The individuals, from whom the data will be collected, will be well briefed about the research topic and its implementation on real time basis. Their identities will be kept secret from the others and it will ensured to them that the information collected from them will only be used for the research purpose. A consent form will be sent to the respondents that will encourage them to provide accurate and appropriate information regarding the proposed research topic, on which the signatures of both the researchers and the respondents will be given, kept secret. The respondents will feel themselves confident and protected in giving their opinions. That will be the basis of the authentic findings. Signatures and data which provided by respondents will be kept confidential. Elements of consent form include the following:

v  The right to participate voluntarily and the right to withdraw at any time.

v  The purpose of research, so that individual understands the nature of research and its likely impact on them.

v  Signatures of respondent’s researchers agreeing to these provisions.

v  Permission to come will be taken.

v  Respondents will be informed about research.

v  Researcher will leave research sites undisturbed.

v  All the information provided by the respondent will kept in strict confidence.

v  All the information provided would be held in strict confidence.

v  Individual will not be coerced into participation.

Discussion:

This study is to discuss about the factors affecting the employee motivation. Employee motivation plays a vital role in the company or organization. This study I used four independent variables salary, performance, training and benefits of the employee’s. These independent directly related with the employee motivation. Different hypothesis are formed on the basis of dependent and independent variables and also conducted a survey by using questionnaire.

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