IMPACT OF EMPLOYEE MOTIVATION ON ORGANISATION PRODUCTIVITY

Motivation                                    

Motivation is a force within or outside of the body that energizes, directs and sustains human behavior. Within the body, examples might be needs, personal values and goals, while an incentive might be seen as a force outside of the body (openstax , 2019). Therefore, motivation arises as a consequence of a person's sire to fulfill unmet needs or resolve conflicting thoughts the produce angst (Armstrong and Taylor, 2014). According to Singh (2017) motivation is the force that initiates, guides and maintains goal-oriented behaviors. Physiological, behavioral, cognitive, and social are different approaches of motivation.

Devadas (2011) worked on employee motivational practices and found that how job characteristics, employee characteristic, management practices and broader environmental factors weight employees’ motivation and the motivation concepts are central to employees. Motivation is seen as ‘the heart of organizational behavior’ (Gagne, 2014, p.414), because employees’ motivation has a substantial impact on their performance and productivity (Cerasoli et al., 2014). Motivation guides the direction, effort, and persistence of performance behaviors and can be classified into intrinsic and extrinsic motivation (Deci, Olafsen and Ryan, 2017). 

 

Employee Motivation        

As per the article written by Dobre (2013), organizations will have to motivate employees, as it can have huge amount of impact on the sustainability of the organization. The article adds to the concept that a motivated employee helps the organization to utilize all its internal resources to its fullest. Furthermore, Frederiksen, Knudsen and Magnusson (2014) argue that unmotivated employees will focus very little on the quality of the work and will be very less concerned about the well-being of the company. Therefore, every organization will have to perform several duties in order to maintain the motivational level of the employees. As per the article by Chaudhary and Sharma (2012), several factors can have huge amount of impact on the motivational level of the employees. In fact, it actually varies from one individual to another. Therefore, different motivational factors can create different level of impact on employees. Lăzăroiu (2015) highlighted that organizations will have to be extremely careful before implementing any strategies regarding the enhancement of the motivational level of the employees. This blog post emphasis on the importance of motivation in the workplace, to improve the employee performance and productivity. And it presents the theories and techniques of the employee motivation in a workplace.

Best motivational practice ensures organization to sustain in a long-term (Cicolini, 2014). Companies use a lot of innovating tactics to keep their productivity at a maximum level. According to Bratton (1999), rewards refer to all forms of financial returns, tangible services and benefits an employee receives as part of an employment relationship. Bandura (1999) recognized that human behavior cannot be fully understood without considering the regulatory influences of rewards. Some of them imply material rewards, others imply psychological motivators (Weightman, 2008). In Banking organization where I’m employed at, they have various health benefits, discounts, child care benefits, insurance benefits and many other benefits. Such benefits are offered to the employees to encourage them to stay in the organization and to work hard with increased level of motivation (James and Mathew, 2012). 

                                                                     Figure 1: Starbucks Coffee.

                                                                        (Source- ISHN, 2020).

Starbucks can be tagged as one of the biggest success stories in American history. It started with smooth beginnings and managed to pin their image in the minds of people on the top of the priority. ‘Inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.’ (Lawrence, 2019). As the vision and mission have enabled it to prevail in a quick pace world, Starbuck's faithful clients have stuck by their most loved brand through everything. It has also bagged numerous awards at a global level such as ‘One of the world’s most admired companies by Fortune from the year 2009 to 2017’ (Fortune, 2019).               

As an example, Rossi Norman Dias - HRM Case Study of Starbucks cooperation shows that motivation is a vital factor for business in the production process. Employees are not machines, and cannot always do the same task with equal passion. The chief executive officer of Starbucks corporation, Howard Schultz, considers that the reason for success in Starbucks is not coffee but employees. He firmly believes that the spirit of Starbucks is employees and feels honored about the value of Starbucks employees. Starbucks offers an interactive structure that makes personnel throw themselves into their job. 

                                                       Figure 2: Starbucks Chairman, Howard Schultz.


                                                                              (Source- Aldoshik, 2013).  

In January 2005,when Fortune magazine placed Starbucks Coffee Company second among the largest companies for "Best Companies to Work For", it had been expected by those, who were familiar with the company's human resource management policies and work culture. One of Starbucks competitive advantage is its employee-friendly policies and supportive work culture. As pointed out by IBS Center for Management Research (2005) Starbucks cared about its employees and was one of the few companies in the retail sector to provide generous benefits to both full time workers as well as part timers. This practice shows employees are the company’s most important asset. As a result, employees remain motivated and committed to the organization as they are treated fairly, given freedom to grow, engaged and empowered to contribute in the company’s growth.

The equity theory of motivation supports this practice since  people are strongly motivated when they perceive fair treatment in the amount of rewards an employer allocates, and it also resulted in lower rate of turnovers (Dessler, 2013). Furthermore, (Noe et al, 2010) argued that, to increase  competitiveness, companies must invest not only in new technology and promoting quality throughout the organization but also invest in state-of-the-art staffing, training, and compensation practices.

In Video 01 illustrates the meaning of motivation, the author’s definition of motivation, and the nature of motivation. Then review the best methods that, the importance of motivation in an organization and  the ways to motivate employees in an organization.        

                     Video 01:  Motivation, Meaning Definition, Nature, Scope, Importance and ways to                                                                      motivate employee.


Source: (ManagementAdda, 2018)

               

Reference
                                                             

   Aldoshik, (2013),Motivation in practice- Starbucks corporation case study, digital image   [online].Available From: <https://aldoshik.wordpress.com/2013/06/27/motivation-in-practice-     starbucks-corporation-case-study/>. [Accessed on 09 April 2021].

 Armstrong, M. and Taylor, S. 2014. Armstrong’s Handbook of Human Resource Management   Practice. 13th ed. London: Kogan page, pp.169-70. 

       Bandura, A.(1999), Social foundation of Thought and action, NJ: Prentice Hall.

    Bratton and Gold, (1999), Human Resources Management Theory and Practice, 2nd(ed). London: Macmillan Business.

     Cerasoli, C., Nicklin, J. and Ford, M., 2014, Intrinsic motivation and extrinsic incentives jointly predict performance: a 40-year meta-analysis. Psychological Bulletin, [online] 140(4), pp. 980–1008. Available From: <https://pdfs.semanticscholar.org/3f44/f35d1779ea91896c9f443904aab90c2d9511.pdf> [Accessed on 11 April 2021]. 

  Chaudhary, N & Sharma, B.,(2012), ‘Impact of employee motivation on performance (productivity) in private organization’, International Journal of Business Trends and Technology, 2(4), pp. 29-35.  

    Cicolini, G., Comparcini, D & Simonetti, V.,(2014), ‘Workplace empowerment and nurses' job satisfaction: A systematic literature review’, Journal of nursing management, 7,[online]. Available     From: <https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.473.4070&rep=rep1&type=pdf#page=53> [Accessed on 11 April  2021]

     Deci, E., Olafsen, A. and Ryan, R., 2017. Self-determination theory in work organizations: The state of a science. Annual Review of Organizational Psychology and Organizational Behavior, [online] 4(1), pp. 19-43. Available From: <https://www.annualreviews.org/doi/10.1146/annurev-orgpsych-032516-113108> [Accessed on 10 April 2021].

     Dessler, G., (2013), Human resource management, 13th(ed), Prentice Hall, U.S.A.

Devadass, R., 2011. Employees motivation in organizations: An integrative literature review. In: International Conference on Sociality and Economics Development. [online] Singapore: IACSITPress, pp. 566-70. Available From: <https://www.ipedr.com/vol10/106-S10089.pdf> [Accessed On  9 April 2021].

Dobre, OI.,(2013), Employee motivation and organizational performance, Table of Contents.

  Fortune, (2019), World's Most Admired Companies 2019 [online]. Available From: <https://www.rankingthebrands.com/The-Brand-Rankings.aspx?rankingID=118&year=1251> . [Accessed on 16  April  2021].

    Frederiksen, MH., Knudsen, MP & Magnusson, M.,(2014), Expectations and Collectiveness: Two Main Drivers of Employee Motivation for Engaging Collaborative Ideation Communities, In Proceedings of the 15th International Cinet Conference. Continuous Innovation Network (CINet).

Gagne, M., 2014. The Oxford Handbook of Work engagement, Motivation, and self-determination Theory. New York: Oxford University Press, p. 414.  

Greenberg, J., Baron, RA.,(2003), Behavior in Organizations, p. 41.

IIBS Center for Management Research, (2005), ‘Starbucks’ human resource management policies and the growth challenge’. [online]. Available From: <https://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and%20Organization%20Behavior/HROB068.htm>. [Accessed on 17 April  2021].

ISHN,(2020), Starbucks taking steps to protect workers from sharps injuries, digital image [online]. Available From: < https://www.ishn.com/articles/110650-starbucks-taking-steps-to-protect-workers-from-sharps-injuries >. [Accessed on 17 April 2021].

    James, L & Mathew, L.,(2012), ‘Employee retention strategies’: IT industry, SCMS Journal of Indian Management, 9(3), p. 79.

   Lăzăroiu, G.,(2015), Employee Motivation and Job Performance, Linguistic and Philosophical Investigations,14, pp. 97-102.

    Lawrence, G.,(2019),  Starbucks  Coffee’s  Mission  Statement  &  Vision  Statement  (An  Analysis) [online]. Available From:<http://panmore.com/starbucks-coffee-vision-statement-mission-statement>. [Accessed on 18th  Aril 2021].

ManagementAdda, 2018. What is motivation, meaning definition, nature, scope, importance and ways to motivate employee. [Online]
Available From:
 https://www.youtube.com/watch?v=BWOhi4BCGWY
[Accessed 20 April 2021].

   Nayeem, A., (2018), How to Treat your Employees for Better Productivity,[online].Available From:<https://elextensions.com/treat-your-employees-for-better-productivity/>. Accessed on 18 April 2021].

     Noe, RA at el., (2011), Fundamentals of human resource management, 4th(ed), McGraw-Hill, New York. 

     Rheinberg, F.,(2006), Psychology of motivation, WAM, Krakow. WAM, Kraków. 

    Rossi Norman Dias, (2013), HRM Case Study of starbucks cooperation, p. 4, [online].Available From:<http://www.freeonlineresearchpapers.com/starbuckscasestudy>.[Accessed on 15 April  2021].

Singh, A., 2017. Employee Motivation: A Study on Modern Workplace Motivation. International Journal of Engineering Sciences & Management Research, [online] 4(4), pp. 68-74. Available From: <https://www.academia.edu/32407094/EMPLOYEE_MOTIVATION_A_STUDY_ON_MODERN_WORKPLACE_MOTIVATION> [Accessed 10 April 2021]. 

   Steven Pressfield, the War of Art, (2012), Break Through the Blocks and Win Your Inner Creative Battles, January 11.

     Weightman, J. (2008), ‘The Employee Motivation Audit’, Cambridge Strategy Publications, C    m   Cambridge.

Comments

  1. I agreed with the point discussed on the relationship between the motivation and performances. Employee motivation is very important for organizations as every concern requires physical, financial and human resources to accomplish the organizational/business goals. It is an important factor for the maximum utilization of human resources by developing the willingness in employees to work. While securing best possible utilization of resources, the motivation positively impact on increase in productivity, reducing cost of operations, and improving overall efficiency. (Shahzadi et al. 2014)

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    1. A valid point Pernalla, Thank you. Organizations today have realized the importance of motivated and satisfied employees as important contributors towards long term objectives. It has made organizations to cater to the expectations and needs of the employees and could expect the similar response. Motivation also positively influences performance at individual and group level ultimately affecting the organizational performance. (Risambessy et al., 2012).

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  2. I agree with the points. A satisfied, delighted and motivated employee is a productive employee in an organization who contributes to the efficiency and effectiveness of the organization which leads to maximization of profits (Matthew et al., 2009).

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    1. Yes Nivethini ,To maintain organization performance motivation is key and also a powerful tool. Motivation is a driver for employee performance. Motivation come from internally (Through employee itself or from inside the organization) Bartol and Martin (1998).

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  3. I agree Eranga, motivation is the key factor of the most successful organizations. As employees are the main resources for organizations’ business activities, the issues of employees’ motivation will critically decide organizations’ success (Yusoff, et.al, 2013). However, in understanding that human needs and preferences will not be the same among each other’s, one set of motivation package designed for an individual or group may not turn up a same effect on others. With statement supported by Burke (2007), what makes individual do something is not necessarily the same for another individual. Moreover, Saraswathi (2011) also commented individuals are showing a discrepancy on their basic motivation drive. As a result, refer to Bourgault et al.

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    1. yes gagana. I would like to add more to this. Some statements about employee assets have been published in the websites of firms we examined, all of which are
      using the term Employee assets concept. For an example, an interest-free bank states that their human assets policy is based on creating a healthy workplace environment, developing team work, enabling personnel to develop with training programs, applying a system of fair wage and employing qualified and productive personnel in every position (Albaraka, 2016). So employees become main asset when the managers motivate the employees by using motivational theories and it will lead to get company achievements.

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  4. Agree with you. A motivated and qualified workforce is essential for any company that wants to increase productivity and customer satisfaction. In this context, motivation means the willingness of an individual to do efforts and take action towards organizational goals. The challenge for any manager is to find the means to create and sustain employee motivation (Dobre, 2013).

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    1. Yes Chamara i agree with you. Self motivation for achievement or achievement motivation of employees is generally assumed to have important impact on their performance and satisfaction. It is deep rooted in human nature. Self motivation for achievement has to do with how inspired people are to pursue and accomplish their goals. Abdel-Halim (1980) analyzed the moderating effect of employees higher order need on job performance and job satisfaction relationship.

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  5. Exactly Uddika motivation will have direct impact on organizational productivity. Organization should reward the effort and commitment of employees through financial and non-financial methods in result they motivate to improve the performance (Ahmad, Mukaddes, Rashed, & Samad, 2010).

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    1. Agreed, indeed. The motivation of employees in the organization still remains one of the sensitive subjects that determine the stage of input that employees will place in the organization to commit to good performance. This means that motivation also intrinsic or extrinsic contribute to employee satisfaction and therefore improves performance and productivity (Bhattacharyya, 2007).

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  6. Agreed with you Uddika, Organizational success is dependent upon members being motivated to use their full talents and abilities and directed to perform well in the right areas. The most important reason for productivity loss was poor working morale. This includes absence of positive team spirit, low motivation, and poor sense of belonging, people feeling undervalued and poorly rewarded (Osabiya & Joseph, 2015).

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    1. Yes Sachinth,further,Singh (2017) says, modern workforce is belonging to different generations and age categories which has huge differences in knowledge, dreams, strengths and weaknesses, therefore, making the selection of right motivational factors for the organization a challenging job for HRM.

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  7. Agreed with you. when comes to employees' motivation to participate in job-related training and career development programs creates a subcategory of work motivation. The organization also has indirectly get the benefit of providing training to employees. (Kanfer, Chen, and Pritchard, 2012).

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    1. Exactly Harsha, Tahir et al., (2014) suggested that, employee training and development is a systemic process of capacity building of human capital in any organization to improve staff performance in order to achieve organizational objectives. Organization use training and development as a tool of employee stimulation to improve work engagement expecting enhanced results (Sendawula, 2018).

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  8. Agree with you. Reward system is an important tool that management can use to channel employee motivation in desired ways. In other words, reward systems seek to attract people to joint the organization to keep them coming to work, and motivate them to perform to high levels(Pratheepkanth,P. 2011).

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    1. Yes Wasantha, to find the right reward for each performance level, the performance management system, compensation & benefits and personnel development should go hand in hand and all together support the overall business strategy. Performance management should comprise at least the following components: goal setting, performance evaluation, performance appreciation and development measures (Kuba, 2011)

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  9. True. Brooks (2007) says, it is essential for the employee to have a clear understanding on the expectations of the job to be executed, what are the job delivery targets, the level of skills required for the job, whether the management is willing to provide the necessary trainings to fill any skill gaps, what are the plans of the company to let the employee learn and grow, the entrustment of granting the job responsibilities by the management to an individual, will significantly affect the motivation of an individual to perform his/her duties.

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    1. Agree and adding more to the content ,The Empowering provides significant pride in the work force. Employees execute new ideas to improve productivity and feel they are also responsible for any decision (Yazdani, Yaghoubi and Giri, 2011). Trust is defined as the understanding each other’s. If and organization wants to achieve goals, trust and relationship plays a major role. Trusting employees increase productivity and never leave the company because employees are motivated (Hassan, Dollard and Winefield, 2010). Training is necessary tactic for motivating employees. An organization has to carryout training related to new process, technologies (Tella, Ayeni and Popoola, 2007).

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