Motivation Theories Employee motivation is an intricate and sophisticated subject; however, modern managers must face and deal with this topic to obtain organizational success. To enhance understanding of employee motivation, managers must recognize the requirements of employee motivation, its concepts, and differences in individual needs. According to Kim et al.
Therefore, employee input must be valued and included throughout this process Maslow was a psychologist who proposed that within every person is a hierarchy of five needs Coulter, He is best known for proposing two assumptions about human nature.
Very simply, Theory X is a negative view of people that assumes workers have little ambition, dislike work, want to avoid responsibility, and need to be closely controlled to work effectively.
Theory Y is a positive view that assumes employees enjoy work, seek out and accept responsibility, and exercise self-direction. McGregor believed that Theory Y assumptions should guide management practice and proposed that participation in decision making; responsibility and challenging jobs and good group relations would maximize employee motivation.
Coulter et al. On the other hand, when they were dissatisfied, they tended to cite extrinsic factors arising from the job context, such as company policy and administration, supervision, interpersonal relationships, and working conditions. Intrinsic motivation can be This work is licensed under a Creative Commons Attribution 4. According to Katz, the job itself must provide sufficient variety, sufficient complexity, sufficient challenge, and sufficient skill to engage the abilities of the worker Extrinsic Motivation Extrinsic motivation occurs when things are done to or for people to motivate them.
These include rewards, such as incentives, increased pay, praise, or promotion; and punishments, such as disciplinary action, withholding pay, or criticism. Extrinsic motivators could have an immediate and powerful effect but will not necessarily last long. The intrinsic motivators, which are concerned with the quality of working life a phrase and movement that emerged from this concept are likely to have a deeper and longer-term effect because they are inherent in individuals and their work and not imposed from outside in such forms as incentive pay and summarized in Table below The most significant ones are those concerned with expectancy, goal setting and equity, which are classified as process or cognitive theories Armstrong Salary is very important for everyone.
Wages must first be received fairly Wheelhouse, As Bohlander, Snell and Sherman, , cited in Petcharak, , p. However, the consensus is that motivation ends in growth of productiveness in the long run. According to Sara, Dessler presented that promotion is said to be came about employee makes a shift inside the upward direction within organizational hierarchy and movements to a place of more duty and responsibility.
Armstrong et al. According to Milkovich High-performance teams are characterized by a deep sense of commitment to their growth and success Armstrong et al. Thus, teamwork plays a vital role on employee performance and organization productivity. As many researches additionally suggest those elements have significant effect on the task performance of employees. According to Negash, Zewude, Megersa, Inconclusion different variable and statistical measurements had been applied and tested by several researchers.
Conceptual Framework From the literature collected for the study the factors that increases employee performance are training, promotion, employee benefits, teamwork and working environment which leads to better organization productivity. The Researcher was provided detailed information on the application and results of motivational factors, so that it can justify the association or the connection of outcomes of employee motivation on organization performances.
The below Conceptual model was used in this study. Research Methods This study was employed descriptive and exploratory. It is descriptive since descriptive data were collected through a questionnaire and it is also exploratory because the researcher would explore the effects of motivation on organization performance so as to meet the research objective. Both primary and secondary types of data were collected. The primary data was collected by using structured questionnaires. The Secondary data was collected from published journal articles, human resource books, organizational manuals, and any relevant secondary sources.
The populations of the study were the entire region professional employee starting from regional management level to lower level employees of the company. Currently, there were total of employees in the region based on data taken form the regional human resource department from the total of employees samples were drawn based on Taro Yamane formula. In order to analyze the data gathered and come up with answers to the question raised exploratory methods was employed. The collected questionnaires were analyzed statistically with the help of SPSS statistical package for social science version Moreover, it was summarized by frequencies, percentages, means, and standard deviations.
Determination of the relationship between the identified independent and dependent variables, the researcher This work is licensed under a Creative Commons Attribution 4.
According to Creswell criteria for choosing statistical testes when the number of independent variable would be more than two and dependent variable is one multiple regression was statistically tested.
Result Descriptive Statistics of Employee Motivation and Organization Performance As described in the research methodology, Likert scale was used to measure the effect of motivational factors for increasing organizational performance. Table 1. This indicates that employee benefit has impact employee performance. This indicates that the working environment has an effect on employee performances. From this we deduce that promotion is the most important factor that motivates and affects the employees of the company.
Therefore, from the above paragraphs one can reveal that predictor variables such as employee benefit, working environment, promotion, training and teamwork could have averagely affects the dependent variable that is organizational performance. Correlation Analysis In this section, the direction and degree of the strength of the relationship among the variables were examined, it is possible to determine the correlation among all scopes of the independent variables Employee benefits, working environment, promotion, training and teamwork and the dependent variables organization performance were used to analyze the strength, direction and statistical significance of the relationship as indicated table 2 below.
Table 2. Correlation is significant at the 0. Regression Analysis Regression analysis supports in order to measure the relative strength of the independent variable on the dependent variable. Thus, in order to examine the statistically significant effect of the independent variables on the dependent variable, multiple regression analysis was used.
According to Kothari , multiple regression analysis applied when the researcher has one dependent variable, which is supposed to be a function of two or more independent variables.
The objective of this exploration is to make a prophecy about the dependent variable based on its covariance with all the concerned independent variables.
Diagnosis Test Before applying regression analysis to assess the effect of employee motivation on organization performance, some tests were determined in order to confirm the appropriateness of data to assumptions of regression analysis as follows: Multicollinearity Test According to Andy field one way of identifying multicollinearity is by scanning a correlation matrix of the predictor variables. The VIF shows whether a predictor has a strong linear relationship with the other predictor and tolerance statistics which is the reciprocal of VIF.
Tolerance below 0. As indicated in the table 3 below tolerance value of all variables were above 0. Table 3. Dependent Variable: Organization Performance Linearity Test Linearity refers to the degree to which the variation in the dependent variable is related to the variation in the independent variables. To determine whether the relationship between the This work is licensed under a Creative Commons Attribution 4.
Figure 1. Normal P-P Plots of regression Source: Own field survey and SPSS output The scatter plot of residuals shows no more variation in the spread of the residuals as you can see from left to right on figure 1 above.
This result suggests the relationship we are trying to predict is linear. As a result, the above figure shows the normal distribution of residuals around its mean of zero.
Hence the normality assumption is fulfilled as required based on the above figure, it is possible to conclude that the inferences that the researchers would made about the population parameter from the sample were valid. Normality Test Figure 2 shows the frequency distribution of the standardized residuals compared to a normal distribution. As you can see, although there were some residuals e. Moreover, the histogram is bell shaped which lead to deduce that the residual disturbance or errors are normally distributed.
Thus, there is no violation of the assumption normally distributed error term. Error of the Estimate 1. Dependent Variable: Organization performance Source: SPSS Regression results output, Multiple regression result in the above table 4 indicates that employee motivation constructs Employee benefit, working environment, Promotion, Training and Teamwork have significant influence on the performance of the organization.
The adjusted R2 tells us how much change in the outcome would be accounted for if the model had been derived from the population from which the sample was taken Field, In addition, the adjusted R 2 gives us the percentage of variation explained by only the independent variables that actually affect the dependent variable.
As a result, the adjusted R 2 0. Regression Dependent Variable: Organization performance b. Coefficients B Std. Error Beta Constant Dependent Variable: Organization Performance Source: SPSS Regression results output, Referenced table 6 shows that standardize beta coefficient, which tell us the unique involvement of each factor to the model.
The relative importance of effects of employee motivation independent variables in contributing to the variance of the organizational performance dependent variable is described by the standardized beta coefficient. Among the independent variables, promotion is more significant and statistically sound and expression.
This can be interpreted as every single unit improvement in the promotion will increase organizational performance by Therefore, the promotion has a greater amount of impact than other predictors On the other hand, the working environment has less contribution which is 6.
From the analysis the co-efficient value of promotion in the organization was 0. This means that all things being equal, when the other independent variables employee benefit, teamwork, training and working environments are held constant, organization performance would increase by From the analysis the co-efficient value of employee benefit was 0.
This means that all things being equal, when the other independent variables promotion, teamwork, training and working conditions are held constant, organization performance would increase by This was statistically significant 0. Indicated from the analysis the co-efficient value of training was 0. This means that all things being equal, when the other independent variables promotion, employee benefit, teamwork and working conditions are held constant, performance would increase by As shown from the analysis the co-efficient value of teamwork was 0.
This means that all things being equal, when the other independent variables promotion, employee benefit, training and working conditions are held constant, performance would increase by Furthermore, from the findings of this study, researchers found out that not all of the variables selected by the researchers have significant effects on organization performances.
From the analysis the co-efficient value of working environment was 0. This means that all things being equal, when the other independent variables promotion, employee benefit teamwork, and training are held constant, performance would increase by 7. This was statistically insignificant because it has value more than 0. From total of five selected variables employee benefit, promotion, training, and teamwork have positive unique contribution to organizational performance.
Among this promotion has the most unique contributor of all, this supports Vrooms expectancy theory of motivation that argues, an employee will be motivated to exert a high level of effort that leads to good performance appraisal followed by organization rewards such as promotion which later meets personal goal. On the contrary, the working environment has no significant unique contribution to company performance.
Regarding to this it is possible to deduce that promotion and employee benefit contribute more for organizational performance and would be focusing area for the company to inspire its workforce. Conclusion and Suggestion Depending on the outcome of this study the following conclusions were made. The purpose of this study was to examine the effect of employee motivation on company performance.
For This work is licensed under a Creative Commons Attribution 4. Since organizations will be efficient if and only if their employees are motivated and this could happen among others through having an effective motivation of employees assured by the company. On employee motivation, it can also be concluded that promotion, employee benefit package, training, teamwork and working environment have an impact on organization performance that also leads to increase productivity and performance of employees of the company.
Similarly, promotion, employee benefit, training and teamwork have unique and significant contribution to company performance based on the result of this study. Furthermore, the result shows that employees of the company were averagely agreed with the employee benefit currently provided by the company.
Likewise, the result of this study concludes that employee motivation is very important factors that the region managements needs to focus on to achieve region target or goal as well as to contribute more to company performance. Ignoring this factor could cause to build demotivated employees, which are subject to reduce performance, lower commitment, and lower motivation or even contribute to the lesser productivity of the company. In contrast working environment has least unique effects on company performance in this investigation result which shows that the working environment has an insignificant impact on company performance.
In summary, the major finding of this study implies that employee motivation has a positive effect on the Ethio telecom company performance. To browse Academia. Log in with Facebook Log in with Google. Remember me on this computer. Enter the email address you signed up with and we'll email you a reset link. Need an account? Click here to sign up. Download Free PDF. A short summary of this paper.
Download Download PDF. Translate PDF. In most cases motivation comes from some need that leads to behavior that results in some type of reward when the need is fulfilled. This definition raises a couple of basic questions. The performance that employers look for in individuals rests on ability, motivation, and the support individuals receive; however, motivation is often the missing variable.
Motivation is the desire within a person causing that person to act. People usually act for one reason: to reach a goal. Thus, motivation is a goal directed drive, and it seldom occurs in a void. The words need, want, desire, and drive are all similar to motive, from which the word motivation is derived. Understanding motivation is important because performance, reaction to compensation, and other HR concerns are related to motivation. The modern workforce now includes employees spanning three distinct generations.
While all employees are inherently different despite age, differences between these generations do follow common themes— each has its own knowledge, strengths and weaknesses. Managers must know how to work with them all to maintain a successful business.
If you understand a little bit about each group you will appreciate what motivates them to maximize their output, leading to fulfilling opportunities for everyone. The answer to the frequently asked question of how to motivate employees has two parts. First use short term techniques to warm up your employees. Then move on to putting bigger programs in place for long term effects. Short term techniques and ideas work and should be used at every opportunity. Even if a long term motivation plan doesn't exist.
They are great ways to inject some short bursts of excitement into the workplace. Just keep in mind that they will be less and less effective over time. This is why it is so important to use them in conjunction with long term programs. By observing what someone says or does in a given situation, one can draw reasonable inferences about his or her underlying motivation. As it is used here, the term motivation refers to the psychological process that gives behavior purpose and direction.
By appealing to this process, managers motivators attempt to get individuals to willingly pursue organizational objectives. Motivation is a psychological force within an individual that sets him in motion for achievement of certain goals or satisfaction of certain needs. Psychologists believe that if we can identify what motivates a person, we can understand the person.
It is the energy that gives them the strength to get up and keep going even when things are not going their way. Motivation is a term that refers to a process that elicits, controls, and sustains certain behaviors. It is a group phenomenon which affects the nature of an individual's behavior, the strength of the behavior, and the persistence of the behavior. For instance: an individual has not eaten, so he or she feels hungry, and as a response he or she eats and diminishes feelings of hunger.
There are many approaches to motivation: physiological, behavioral, cognitive, and social. It is the crucial element in setting and attaining goals—and research shows you can influence your own levels of motivation and self-control.
According to various theories, motivation may be rooted in a basic need to minimize physical pain and maximize pleasure; or it may include specific needs such as eating and resting; or a desired object, goal, state of being, or ideal; or it may be attributed to less-apparent reasons such as altruism, selfishness, morality, or avoiding mortality. Conceptually, motivation should not be confused with either volition or optimism. Motivation is related to, but distinct from, emotion.
The objective of this research is to understand the employee motivation in the new framework. Data collection methods are an integral part of research design Sekaran, The selection of an appropriate method depends on the nature of the problems.
However, data collection method for this study is based on secondary documents study. This paper has illustrated the importance of motivation in an organisation and has made it clear that it is advisable for any organization to develop new perspectives for motivating employees : the notion that successful organisations are those that best deploy their human resource in the way that they would deploy any other resource.
As such, motivating factors inside humans must be recognized in order to enhance efficiency and productivity and then embark on satisfying their needs to improve their efficiency. In addition, all authorities in the filed of management regard motivation as a complex behavior and thus with a multidimensional nature.
As a result, the understanding and the application of motivation is dependent on the knowledge and skills needed to apply it. The exploration of motivation provide answers to questions dealing with human behavior: Why humans working organizations?
Therefore, mangers can take easily some actions to fulfill organizational goals in cooperation with the employees and successfully perform their other roles by gaining a mastery of how to motivate employees. Accordingly, making employees satisfied and getting them more interested in their jobs as well as the fulfilment or organizational goals is of vital importance.
Abzare et al. The population under study included all employees working in major public and private hospitals in Isfahan in all job levels such as including medicine, paramedicine, nursing, and administrative- logistic positions. The sample size was determined using limited sample size formula and employees were selected through simple random sampling and included in the research sample. The instrument used to collect the dat was a item questionnaire with three scales of material, spiritual, and organizational factors.
The validity of the questionnaire was confirmed by face validity and its reliability was estimated as equal to 0. The results indicated that there was a significant different between the mean scores of occupational level, employment status, and education level. Employees in the public and private hospital under study had different motivational priorities so that spiritual factors were considered more important in the public hospitals than in the private hospitals.
Ostovar et al. The results indicated that the managers and the employees held consistent views about the hierarchy of needs. In other words, there was no significant difference between motivational factors in the views of the managers and the employees. Bakhshi Ali Abadi et al. The most important extrinsic factors affecting job motivation were salary, job security, workplace conditions, the quality of communication with others, supervision, and policies governing the workplace and the most significant intrinsic factors were the nature of job, appreciating employees, job development, and job success, respectively.
It was also noted that salary and job security are the most important predictors of job motivation. Rezaie et al. Age, participation in promotion activities, interest in farming and ranching activities were entered into the regression equation in three steps. Vioasami et al. Wangi et al. However, personal characteristics such as age, gender, marital status, education level, and job experience are less associated with employee motivation.
Similarly, factors such as financial and nonfinancial rewards were also found to be significant in this regard. In another study done by Timreck , participants considered factors such as the feeling of success, recognition, responsibility, and getting promotion as important motivational factors while feeling guilty and threat were seen as negative factors.
For success in today's difficult workplace environment. You better have a strong understanding of how to create long lasting performance and morale. Many leaders think they understand how to create motivation in the workplace. The problem here is that they think we have an idea of how it works. But actually they just don't have a strong enough understanding. Leaders who do understand will not make the following types of statements.
These statements may have worked in the past. Employees constantly hear of cost cutting tactics like payroll, benefits, and layoffs. Not to mention a bad economy.
So you shouldn't be to surprised that morale is low. To make matters worse many leaders increase employees responsibilities with little or no pay increases. Never has there been a more important time to invest in their employees. It's a priority to look more closely at building positive motivation in the workplace. These employees are the engine that drives the car. Employee motivation ideas can range from simple to extravagant.
Many of these employee motivation tips show you how to increase employee motivation in the workplace. But where do you actually start the process of motivating. There are basically two ways to look at motivating in the workplace.
One way is developing short term motivation. This type is essential a quick boost to morale. The second way is to build long lasting motivation. Building sustainable employee motivation takes quite a while and is a constant work in progress.
This is not to say that gift cards and recognition awards simply don't work. The truth being is that they are quite effective. Employees are the heart and soul of every organization. Without them you have nothing. This is the answer to the question why is employee motivation important? And yet, it still surprises me to see how many companies still choose against trying to build long lasting employee motivation.
Deciding which employee motivation ideas to take on vary from company to company. What works for one company may not work for another. This is part of the reason why motivating employees is challenging and a constant work in progress. The overall goal should be to developed a positive workplace environment with the constant focus on motivating and retaining employees Multi-generational Employee Motivation The modern workforce now includes employees spanning three distinct generations.
Baby Boomers Baby boomer is a term referring to a person who was born between and Economists predicted that this period would be partly defined by baby boomers retiring en masse. However, as a result of the recession, many have either elected or been forced to extend their careers. Their concerns about their financial future and desire to retire, therefore, should not be taken lightly. Although they are loyal, if you want to keep hold of them make them feel valued.
Their experience is invaluable, especially when you have a workforce full of enthusiastic, but often erratic millennials. Facilitate the passing of knowledge between generations, but remember that baby boomers tend to be independent, so let them do so as they feel comfortable.
Generation X Gen X employees are technologically and internet-savvy, having seen modern technology introduced during their youth. Many of this generation grew up without heavy parent supervision so as a result, also tend to be unafraid of working independently and taking risks. However, GenX is the generation of instant gratification and they believe in a good work-life balance, so make sure they have the freedom to strike that balance or they will seek it elsewhere.
Generation Y Apart from the baby boomers, GenY has been affected most by the recession. They are pragmatic and hard-working, but they are jaded by the recent economic downturn and its effect on their job-search. Provide ample opportunities in-house to progress or to further their education to avoid losing staff to your competitors. In addition to personality differences, managers may have issues with the generational spread because they feel that this generation simply does not have the same set of skills as previous generations.
Maslow acknowledged that people really have many needs and they vary in strength. He arranged all needs in pyramid shape. Those basic need like shelter, food and needs for daily survival comes at the bottom, while needs which is less important to staying alive are higher on the pyramid. We must meet needs in lower level before we move onto the next level. Physiological Needs These are the needs which are required for the survival and maintenance of human life, such as — air, water, food, drink, shelter, etc.
Social Needs When a person has met all his lower level physiological and safety needs then his higher level needs become important, the first of which are social needs. Social needs are those which are related to interaction with other people and may include i need for friends ii need for belongingness, etc. Maslow said that love involves a healthy relationship between two people, which includes mutual respect, admiration and trust.
These needs are concerned with prestige and respect of the individual such as competence, achievements, knowledge, initiative and success. These needs are generally found in persons whose first four needs have already been fulfilled. This theory is based on the research carried out by Herzberg and his associates on a group of employees of a paint company. It was found that factors that caused satisfaction were different from those that caused dissatisfaction.
So, he divided those responses in two general categories: -- 1. However, if these conditions are not present, they do not cause dissatisfaction. Maintenance Factors There are some conditions of a job which operate primarily to dissatisfy employees when they are not present.
Herzberg called these factors maintenance or hygiene factors, since they are necessary to maintain current status, i. The importance of these needs will vary from one person to another. If one can determine the importance of these needs to an individual, it will in deciding how to influence that individual. Need for Achievement nAch It is the drive to excel and achieve with respect to a predefined set of standards.
Succeeding at a task is important for achievers. High achievers prefer immediate feedback on their performance and they generally undertake tasks of moderate difficulty.
They neither go for very difficult tasks nor for a very easy one because in the former case they get no achievement satisfaction from accidental successes, and in the later case there is no challenge for their skills.
Need for Affiliation nAff It is the desire for friendly and close interpersonal relationships. If asked to choose between working at a task with those who are technically competent and those who are their friend, high nAff individuals will choose their friends.
People dominated by the affiliation need would be attracted to jobs that have a considerable social interaction.
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