Introduction

EMPLOYEE MOTIVATION

Introduction

Employee motivation shows a key part of all private and public organizations. The organization depends on employee performance. It also obtains an understanding of what motivates an employee to work better for the overall benefits of the organization. Some employees are money motivated while others find recognition and reward personally motivating. Motivation levels within the workplace have a direct impact on employee productivity. The workers who are motivated and excited about their jobs carry out their responsibilities to the best of their ability and job performance increases as a result.

Motivation is considered a key driver of performance because it is linked to numerous benefits at work (Pinder 2008). Motivated employees are more engaged in their work (Rich 2006), their performance is of higher quality (Cerasoli et al. 2014) and they profit more from occupational training (Massenberg et al. 2015). Additionally, they are more strongly committed to their work, work longer hours, pick more challenging goals to achieve (Becker et al. 2015), and are more willing to share knowledge at the workplace (Lin2007). Due to its positive consequences, motivation plays a central role in the field of management, both in theory and management practice.

Job performance is viewed as a function of three factors and is expressed with the equation (illustrated in figure 1.0). Below. (Mitchell, 1982). According to this equation, motivation, ability, and environment are the major influences over employee performance.

Figure 1.0 Performance is the function of the interaction between an individual’s motivation, ability, and environment.

(Source: Mitchell 1982).

Motivation is one of the forces that guide performance. Motivation is defined as the desire to achieve a goal or a specific performance level. Motivation is clearly important for someone to do well; however, that is not enough. Having the skills and knowledge needed to do the job is also important, and sometimes it is the main determinant of productivity. Finally, environmental factors such as obtaining the resources, information and support one needs to determine performance are critical. At different times, one of these three factors can be the key to high performance. For example, the most important factor that determines performance may be the motivation for an employee to wipe the floor.  In contrast, Even the most motivated person will not be able to successfully design a home without the skills needed to build quality homes. Motivation is not the same as high performance and is not the sole reason why people perform well, but it is nevertheless a key influence over our performance level

List of Reference:

Mitchell, T. R. (1982). Motivation: New directions for theory, research, and practice. Academy of Management Review, 7, 80–88

Rybnicek, R, Bergner, S. and, Gutschelhofer, A. (2017). How an individual needs to influence motivation effects: Department of Corporate Leadership and Entrepreneurship, University of Graz, Austria.

Maslow’s Hierarchy of Needs

Motivation Theories

  

Maslow’s Hierarchy of Needs

According to Smith & Cronje (1992), the way Maslow’s theory is explained relies on the fact that people want to increase what they want to achieve in life and their needs are prioritized according to their importance (illustrated in figure 1.0). Deriving from the hierarchy of needs by Maslow, content theories of job satisfaction revolve around employees’ needs and the factors that bring them a reasonable degree of satisfaction (Saif et al., 2012). Based on the basic physical, biological, social and psychological needs of human beings, Maslow came up with a five-stage theory that places the needs of the individual in different categories and prioritizes their attainment. (Jerome 2013).

Figure 1.0: Maslow’s hierarchy of needs

 (Source: Jerome 2013)

Implications of Maslow’s Hierarchy of Needs Theory for Managers

In the case of Physical Needs, managers should pay employees appropriate salaries to buy basic necessities of life. Leisure and dining opportunities should be provided to employees.

When it comes to Needs safety requirements, managers should provide employees with job security, a safe and hygienic work environment and retirement benefits. When it comes to respectful needs, managers can appreciate and reward employees for meeting and exceeding employee goals. A qualified employee can be given a higher job/position within the organization (Maslow, A. H. 2013). When it comes to self-verification requirements, managers can provide challenging job opportunities that take full advantage of the employees' skills and skills. Moreover, they can provide growth opportunities so that they can reach peak levels (Jerome 2013).

“I work for a leading bank, in the banking sector, In consideration of Maslow’s Hierarchy of Needs, of what motivates humans. The theory dictates that, once a person's basic psychological and safety needs are met, he or she will develop a need to belong, then get respect and then ultimately realize his or her full potential. That last stage has the potential to affect a bank's bottom line. For example, while senior managers are responsible for ensuring that a bank's process for opening current accounts is efficient utilizing up-to-date technology a bank employee will likely get involved at some point in the process.

For example, the bank provides special loan schemes to its employees at low interest rates, such as Housing and repair loans, furniture loans, wedding loans, funeral loans, pilgrimage loans, educational loans, consumer loans, motor vehicle and repair loans, bicycle loans in order to uplift their employees and their family’s living standards. This satisfies the employee’s basic needs, wellbeing, security, love, and affection from their family’s and shelter and safety needs, which ticks the lower levels of the hierarchy of needs.

Further, in general, the employees receive their monthly salaries which align with the industrial benchmarks, and allowances which are considered as monetary such as cost of living allowances, medical reimbursements, traveling/food/lodging reimbursements, fuel allowances, gas allowances, spectacle, and hearing aide reimbursements, surgical and hospitalization reimbursements, Entertainment and holiday allowances, annual bonuses, servant and drivers allowances, risk allowances, telephone bill reimbursements, which varies between individuals rank and position in the bank.

The institution rewards with monetary and non-monetary rewards for the achievement of various targets and goals, such as party financing of staff annual trips, foreign tours. And even the institution rewards to the highest-ranked corporate personnel’s   with luxury vehicles such as Mercedes Benz’s and BMW which is borne by the bank for their esteem needs and self-actualization needs.

Therefore it is evident that the subject commercial bank in Sri Lanka clearly maintains an organizational culture where its employees are motivated and satisfied to a greater extent. Whereas the banking institution claims to be one of the leading banks in the island and been awarded in many esteem rewards from reputed bodies and sustains in the industry by its competitive advantages where “people” are being involved.

List of Reference

American Banker (2018) what banks can learn from Maslow’s hierarchy of needs,[online] Available from https://www.americanbanker.com/opinion/what-banks-can-learn-from-maslows-hierarchy-of-needs [Accessed 25 August 2019]. 

Jerome, N. (2013). Application of the Maslow’s Hierarchy of Need Theory; impacts and Implications on Organizational Culture, Human Resource and Employee’s Performance. International Journal of Business and Management, Volume 2 Issue 3, 41-42.

Maslow, A. H. (1987). Motivation and personality (3rd ed.). Delhi, India: Pearson Education

Maslow, A. H. (2013). Toward a psychology of being. Start Publishing LLC.

Alderfer –ERG Theory

Alderfer –ERG Theory

Alderfer (Farnham, 2008) distinguished three requirements: existence, relationship, and growth. Instead of the five needs outlined in Maslow's theory, this theory pushes it into three categories that may include all the needs of human experience

Existence Needs: These include basic material needs. In short, it involves a person's physical and physical safety needs (Song, Wang, and Wei 2007).

Relationship Needs: People need significant relationships (with family, peers or top executives), love and belonging and they seek to achieve public fame and recognition. This class of interests contains external elements of Maslow's social needs and dignified interests (Song, Wang, and Wei. 2007)

Growth Needs: This needs group brings together the needs of self-development, personal growth , and advancement. This set of needs includes Maslow's inherent component of self-authentication and respectability (Song, Wang, and V. 2007)  

Figure 1.2 Alderfer–ERG Theory

Source: (Alderfer1969).

At a work level, this means that managers must recognize their employees' multiple simultaneous needs. In Alderfer's ERG model, focusing exclusively on one need at a time will not motivate employees. The frustration-regression principle impacts workplace motivation. For example, if growth opportunities are not provided to employees, they may regress to relatedness needs, and socialize more with co-workers. If you can recognize these conditions early, steps can be taken to satisfy the frustrated needs until the employee is able to pursue growth again (Robbins and Judge, 2008).

I work for a leading bank and if the bank is highly controlled and position oriented and not too many opportunities exist for employee to communicate and interact among themselves or with senior managers and leaders. In such cases, the organizational culture is all about work and task and the only conversations people have in the workplace community is related to problems, issues, challenges, and transactions to achieve targets the relatedness need remains unfulfilled. So there exists a high probability that the employees or team can regress to lower level Existence needs and seek motivation through only salary and other benefits.

Similarly if growth needs are not being fulfilled and employees do not seem to find meaning in their work they believe that they are considered just as tools or resources to meet the organizational goals and objectives, an insignificant cog in the wheel, it is again possible that the members can regress to the existential need centering on the money. Hence it's important that all the three needs are balanced and focused attention is given to fulfillment of all three needs. It is a key role of managers, leaders and HR community to ensure that opportunities exist at all levels within the group, team or organization to fulfill the relatedness and growth needs through structured or unstructured processes and interventions.

List of References:

Arnolds, C. & Boshoff, B. (2002). Compensation, esteem valence and job performance: an empirical assessment of Alderfer's ERG theory, The International Journal of Human Resource Management.

Baldoni, J., (2005). Motivation Secrets. Great Motivation Secrets of Great Leaders. [Online] http://govleaders.org/motivation_secrets.htm.

Liang YC, MarkH, Chien C. (2011). - An empirical study of the existence, relatedness, and growth (ERG) theory in consumer's selection of mobile value-added services. Vol 5. African journal of business management

McClelland’s Need Theory

McClelland’s Need Theory

Contrary to the hierarchy of satisfaction-dissatisfaction needs, another well-known needs-based motivational theory is developed by McClelland and his colleagues. McClelland developed his theory based on the long-term motives and expressive needs used in the early studies of Henry Murray's personality (Hentry 1988). There are three basic desires that affect everyone’s motivation. A person is motivated by a desire for power, achievement, and affiliation. Individuals have a mix of these desires, with one trait generally more dominant than the other two (McClelland, 1965).

McClelland’s work was primarily concerned with human motivation, but he also studied personalities in a broader sense (Harvard University Library, 2016).McClelland is best known for his motivational theory often referred to as the Three Needs Theory. Over the course of his career, McClelland developed several tools to measure and better understand human characteristics. Outside of academia, McClelland created and helped run several management training programs with the goal of improving work performance (McClelland & Burnham, 2008). McClelland’s theory has a significant overlap with other foundational theories of motivation. Maslow’s self-actualization and Herzberg’s thoughts on high-achievers and low achievers can both be seen in McClelland’s achievement model (Pardee, 1990). His research often used his Three Needs Theory to conceptualize other thoughts besides simple employee's work performance, such as how each motivation affects health: making claims that some motives lead to things like high blood pressure, stress, and abnormal testosterone levels (McClelland 1980). Although these assertions remain dubious, much of McClelland’s study regarding human motivation has helped create a foundation for future researchers to build off.

Figure 1.4 McClelland’s Need Theory

(McClelland & Burnham, 2008)

McClelland’s work has helped to create personality tests to gauge employee potential and ability (McClelland & Burnham, 2008). It can also serve as a tool to better understand a group of individuals and their needs so that actions can be taken to ensure individual needs are being met. For example; an achievement motivated person may need constant challenges, an affiliation motivated person may need regular appraisal and feedback, and a power motivated person may need a clear path for advancement. McClelland & Burnham (2008) used questionnaires along with having participants write stories to test their motivation types and levels. Sokolowski (2000) developed a test to identify a person’s motivation paradigm called The Multi-Motive Grid (MMC). This test showed subjects several photos along with corresponding statements. Their reactions could then be used to measure whether they were more power, achievement, or affiliation based. Several workshops and training courses have been developed for improving managerial skills based on McClelland’s Three Needs Theory. McClelland & Burnham (2008) recount three specific success stories thanks to their workshops. These three cases represent unique outcomes that can happen after identifying a poorly performing manager’s motivation. One subject who put too much weight on affiliation dramatically improved his department’s effectiveness by switching to a power-based mindset. Another individual was too focused with achievement to be an effective manager, so he decided to switch roles within the company and become a highly successful salesman. The last one had the right combination of traits but had an authoritarian style. After realizing his counterproductive attitude, he easily fixed the problem and soon became a Vice President of the company.

List of References:

Arnolds, C. A., & Boshoff, C. (2003). The influence of McClelland's need satisfaction theory on employee job performance: A causal study. Journal of African business.

Harvard University Library. (2016). McClelland, David C. (David Clarence) Papers of David McClelland, 1900-1998: an inventory

Joy, J., Marthaly, I. Nhu, N. and Peter. (2018). Foundational Theories of Human Motivation  Maloney University of Central Florida.

Pardee, R. L. (1990). Motivation Theories of Maslow, Herzberg, McGregor & McClelland. A Literature Review of Selected Theories Dealing with Job Satisfaction and Motivation.

Herzberg – Two factor theory

Herzberg – Two factor theory

Herzberg (1987) referred to those things that influenced job satisfaction as 'Motivating Factors,' whilst he called those that influenced dissatisfaction at work 'Hygiene Factors

Figure 1.3

(Source:Herzberg 1987)

The hygiene factors include; company policy and administration, technical supervision, interpersonal relations with supervisor, interpersonal relations with peers and subordinates, salary, job security, personal life, work conditions and status (Herzberg 1987). These factors are not directly related to the job but the conditions that surround doing the job.  However, the presence of such conditions does not necessarily build strong motivation, (Gibson 2000).

Herzberg hygiene factors, since they are necessary to maintain a reasonable level of satisfaction and can also cause dissatisfaction. The hygiene factors are not direct motivators but are necessary to prevent dissatisfaction and at the same time serve as a starting point for motivation. However, improvements in these conditions do not create motivation, (Hulling 2003).

In contrast, motivators are factors that are intrinsic to the job, such as achievement, recognition, interesting work, increased responsibilities, advancement, and growth opportunities. According to Herzberg’s research, motivators are the conditions that truly encourage employees to try harder. Motivational factors, on the other hand, can increase job satisfaction, and motivation is based on an individual's need for personal growth Herzberg (1987). If these elements are effective, then they can motivate an individual to achieve above-average performance and effort. For example, having responsibility or achievement can cause satisfaction (human characteristics) (Dartey-Baah, 2011).

These two factors apply to workplace comprehensive pay and benefit programs, developing team building workshops, and creating ways to identify good performance. Be competitive in recruiting, and people will motivate you to stay and stay loyal (George 2005).

In the banking sector, high level management has to manage hygiene and motivator factors. To eliminate the job dissatisfaction the banks are doing the following:

·       Fix poor and obstructive company policies.

·        Provide effective, supportive and non-intrusive supervision.
·        Create and support the culture of respect and dignity for all team members.
·        Ensure that wages and salaries are competitive.
·        Provide job security.
·        Build job status by providing meaningful work for all positions.

The above actions help in eliminating job dissatisfaction in organizations and there is no point trying to motivate people or employees until these issues are addressed. Addressing the above issues should not be an end in itself but rather managers are to be aware that just because someone is not dissatisfied does not mean one is satisfied either. It is crucial in the work environment to identify conditions for job satisfaction (Dartey 2011).

 In other hands to motivate the employees, mangers need to consider the following:

·        Providing opportunities for achievement;
·        Recognizing workers contributions;
·        Creating work that is rewarding and that matches the skills and abilities of the employee;
·        Giving as much responsibility to each team member as possible;

·        Providing opportunities to advance in the company through internal promotions;
·        Offering training and development opportunities so that people can pursue the positions they want.

Motivation and job satisfaction is not overly complex. The problem is many employers and managers look at the hygiene factors as a way to motivate when in fact, beyond the very short term, they do very little to motivate (Hayday (2003).

 List of References:

Dartey, B. (2011), Application of Frederick Herzberg’s Two-Factor theory in assessing and understanding employee motivation at work,Vol 3. European Journal of Business and Management.

George, J. M. & Jones, G. R. (2005), “Understanding and managing organisational behavior”, (4th ed.). Upper Saddle River, NJ, Pearson Prentice, New York: McGraw-Hill.

Gibson, J., Ivanevich, L., John, M. & Donnelly, J. H. (2000), “Organisations-Behaviour- StructureProcesses”’ 10th Edition. Boston. McGraw-Hill.

Herzberg, F. (2005). Motivation-hygiene theory Organizational behavior one: Essential theories of motivation and leadership, eds JB Miner, ME Sharpe Inc, New York, 61-74.

Other Methods of Motivation

Other Methods of Motivation

There are two main methods of motivating employees: financial motivation and non-financial motivation. A quarterly study by McKinsey found that seventy percent of organizations plan to use or plan a motivational program (Dewhurst, Gutridge and Mohr, 2009). Many managers still believe that money is everything. Through research most people except non-financial gifts or recognition have been shown to serve as a better motivator than money (Dewhurst, Gutridge and Mohr, 2009) Gifts can be obtained either financially or non-financially, independently or group.

There are positive and negative aspects to workplace groups. Group benefits can be positive because employees have a common bond, and groups are more effective and increased communication between employees and top management due to team environment. Some examples are given below for financial and non-financial rewards (Dewhurst, Gutridge and Mohr, 2009).

•     Create a friendly work environment

Employees spend a large amount of time of their lives for working in the office. (Graham, 1999).Therefore, need to make the office environment as look like friendly and appealing as possible.

•     Acknowledge  employees’ achievement

Everyone wants to be recognized for something they have done; be it for work or personal achievement. Accepting a job from top management means more to an employee (Graham, 1999).

• Rewarding employees

The rewards must be meaningful and be given for an action that the manager wants repeated by other employees. To make a reward meaningful, it should be specific to the person receiving it, and it should have thought put into it. It will mean more to a person if they know the reward is sentimental and meant for them. Employees should not be given a reward for a good effort, but instead on a stellar job on a project or action. It is also important to recognize the employees that are behind the scenes and doing the background work. Without these people, the organization would not stay afloat (Graham, 1999).

·        Positive communication is the key

Everyone communicates on the job and it can be the easiest thing management can do with employees sometime each day to speak a word with your employees and discussions from concerns to comments (Graham, 1999).This will not only make employees happy, but will also give employees the essential insight into your business.

·        Encourage friendly competition

A little competition among the employees is healthy (Graham, 1999). A competitive environment is a productive environment. Encourage employees to participate in competitions or challenges as it is healthy and may actually lead to increased camaraderie. Friendly competition amongst teams helps with employee engagement and employee participation.

·        Encourage creativity

A new generation employees have innovative techniques and it will encourage to make creativity of work environment with effective and efficiency (Barbuto, 2007).

·        Encourage teamwork

Teamwork is a main way to achieve the goals of an organization it would encourage/motivate by the top management the organization will achieve goals in the target time period easily (Barbuto, 2007).

·        Welcome all ideas

According to the ideas of an employee’s it will create the new opportunity/diversity for the institution in future/present. Since management would encourage/welcome the ideas to improve the business or something it will motivate the employees (Barbuto, 2007).

Financial rewards are short-term motivation for employees and then forgotten in the career of the employee. This method does not take much time to manage, but it does not have a lasting impact on employees

The most common financial reward is a monetary bonus or salary increase. More than half of the employees surveyed in 2009 by the Human Resources Management Society states benefits and compensation were important ("2009 employee job satisfaction"). With the recent economy, compensation may be more important, but it will not serve as a strong motivator for everyone. A cash bonus is a permanent salary to encourage employees to work hard and meet company goals additional payment on top (Hodder Education, 2009). A bonus, motivates the employee to understand exactly what the corporate objectives are, as well as being a profitable employee and making sure the goals are met.

Another form of financial motivation is organizations that offer employees to participate in a profit sharing program. Profit sharing, as its name implies, allows employees to get a share of their profits above their regular wages. This type of motivation is commonly used in the service sector because it is difficult to calculate the employee's profit contribution to the company (Hodder Education, 2009).All organizations are following above mentioned motivation techniques to satisfy the employees and to achieve the organization's goals.

List of References:

Baldoni, J., (2005). Motivation Secrets. Great Motivation Secrets of Great Leaders. [Online] http://govleaders.org/motivation_secrets.htm.

Burton,K.,(2012). A Study of Motivation., Indiana University.

Graham ,S(1999) what employers must do to Motivation. in African Americans

Homans, G.C. (1958) Social Behavior as Exchange the American Journal of Sociology, Vol. 63, No.6, Emile.

Kamalian, A. R., Yaghoubi, N. M., & Moloudi, J., (2010) Survey of Relationship between Organizational Justice and Empowerment (A Case Study). European Journal of Economics, Finance and Administrative Sciences.

Benefits of motivation

Benefits of motivation

Motivation satisfies the needs of individuals as well as groups. Every individual or group of individuals join an organization to fulfill certain personal needs. The motivation function of the manager serves to help such fulfillment. Motivation also promotes job satisfaction. When an employee’s needs are sufficiently fulfilled, he/she is on the whole happy. His/her job satisfaction is more direct concern. It is the key factor in other important consequences. Managers, in general, are satisfied with jobs which are challenging in character and involve some creative thinking. An individual’s contribution to output is the resultant of two variables-his/her capacity for work and his/her willingness to work.

Deploy human resources into action

Every concern requires physical, financial and human resources to accomplish the goals. It is through the motivation that human resources can be utilized by making full use of it. This can be done by building a willingness in employees to work. This will help the enterprise in securing the best possible utilization of resources (Solomon, R. L. 1980).

Improves level of efficiency of employees

The level of a subordinate or an employee does not only depend upon their qualifications and abilities. For getting the best of their work performance, the gap between ability and willingness has to be filled which helps in improving the level of performance of subordinates Solomon, R. L. (1980). This will result into-

·        Increase in productivity

·        Reducing cost of operations

·        Improving overall efficiency

Leads to the achievement of organizational goals

According to (Faisal 2017).the goals of an enterprise can be achieved only when the following factors take place:-

·        There is the best possible utilization of resources

·        There is a co-operative work environment

·        The whole employees are goal-directed and they act in a purposive manner

·  Goals can be achieved if co-ordination and co-operation takes place simultaneously which can be effectively done through motivation.

Builds friendly relationship

Motivation is an important factor which brings employees satisfaction. This can be done by keeping into mind and framing an incentive plan for the benefit of the employees. This could initiate the following things (Faisal 2017):

·        Monetary and non-monetary incentives

·        Promotion opportunities for employees

·        Disincentives for inefficient employees

According to (Faisal 2017).In order to build a cordial, friendly atmosphere in a concern, the above steps should be taken by a manager. This would help in:

·        Effective co-operation which brings stability,

·        Industrial dispute and unrest in employees will reduce,

·    The employees will be adaptable to the changes and there will be no resistance to the change,

·        This will help in providing a smooth and sound concern in which individual interests will coincide with the organizational interests,

·        This will result in profit maximization through increased productivity.

Leads to the stability of workforce

Stability of workforce is very important from the point of view of reputation and goodwill of a concern. The employees can remain loyal to the enterprise only when they have a feeling of participation in the management. The skills and efficiency of employees will always be of advantage to employees as well as employees  (Faisal 2017). This will lead to a good public image in the market which will attract competent and qualified people into a concern. As it is said, “Old is gold” which suffices with the role of motivation here, the older the people, more the experience and their adjustment into a concern which can be of benefit to the enterprise (Faisal 2017).

List of References:

Faisal,A,(2017). - The Impact of Employee Motivation on Organizational Commitmen European Journal of Business and Management.

Hong, J., Yang, S., Wang, L., Chiou, E., Su, F. and Huang, s. (1995), "Impact of employee benefits on work motivation and productivity", International Journal of Career Management, Vol. 7 No. 6, pp. 10-14. https://doi.org/10.1108/0955621951009806

Kamalian, A. R., Yaghoubi, N. M., & Moloudi, J., (2010) Survey of Relationship between Organizational Justice and Empowerment (A Case Study). European Journal of Economics, Finance and Administrative Sciences.