Organizational Effect on Employee Motivation
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Abstract: Employee motivation is a critical determinant of organizational success and long-term sustainability. This review explores the various dimensions of employee motivation, its underlying theories, and the impact it has on organizational performance. It synthesizes existing literature to highlight key motivational factors such as financial rewards, recognition, job security, career growth, and workplace relationships. The review further discusses the role of management practices and employee engagement in shaping motivation levels. Findings from multiple studies reveal that highly motivated employees contribute to enhanced productivity, job satisfaction, and reduced turnover rates. The article concludes by emphasizing the importance of adopting tailored motivational strategies that align with both organizational goals and employee expectations.
Keywords: Employee Motivation, Organizational Performance, Job Satisfaction, Incentives, Productivity, Employee Engagement, Workplace Environment, Human Resource Management
INTRODUCTION
Employee motivation is widely regarded as a driving force behind organizational growth and competitiveness. Motivation refers to the internal or external factors that stimulate an individual's enthusiasm and persistence in achieving work-related goals. Organizations today face dynamic challenges that necessitate the continuous engagement and commitment of their employees. Therefore, understanding the factors that motivate employees is essential for human resource managers and organizational leaders.
Theories such as Maslow’s Hierarchy of Needs, Herzberg’s Two-Factor Theory, and McGregor’s Theory X and Theory Y offer valuable insights into the psychological and environmental aspects that influence motivation. Numerous empirical studies indicate that motivated employees are more productive, loyal, and proactive in contributing to organizational objectives.
Employee motivation encompasses both intrinsic factors (such as recognition, achievement, and job satisfaction) and extrinsic factors (such as salary, promotion, and bonuses). The alignment of employee aspirations with organizational goals leads to improved performance, higher morale, and increased retention rates. Conversely, lack of motivation can result in absenteeism, low productivity, and high employee turnover, ultimately affecting organizational effectiveness.
This review aims to consolidate existing research findings on employee motivation and to explore its implications for organizational success. It provides a comprehensive understanding of how various motivational strategies can be employed to enhance employee performance and satisfaction.
MOTIVATION
The context of this phrase is something that has to be established before moving on to the discussion of the study. The word "motive" is where the phrase originates from. It is from the Latin word "movere," which meaning "to move," that the English word "motive" originates. In the event that a person has a need that is not being met, it generates a state of tension or disequilibrium inside that individual, which ultimately results in the activities that the individual will do in order to accomplish those objectives and lessen his level of discontent. Consequently, the first step is to take action for the reasons or the wants that are not being met, which are the causes of disequilibrium.
Motives may be categorised in a number of different ways. There are three different types of motivations: main motives, secondary motives, and general motives. The power motive, the connection motive, the accomplishment motive, the status motive, and the security motive are some other ways to categorise the individuals' motivations. All of these are examples of secondary motivations that may impact a person and cause them to take action. (P. Subba Rao)
CONCEPT AND CHARACTERISTICS OF MOTIVATION
The notion of motivation is quite all-encompassing, and it may be applied to every aspect of life as well as any kind of organisational setting. Consequently, it is of the utmost importance to cultivate a mental grasp of the phrase "motivation."
Personal motivation is a psychological process that may be thought of as an individual's internal state. Having a need is what drives people. It is only when a person is lacking something that they are able to be driven. This feeling of discontent serves as a source of motivation for the individual to take action in order to reach those objectives. Motivation is not a nebulous concept in origin. A specific objective serves as the impetus for our actions. Therefore, motivation is conduct that is aimed towards achieving a goal. It is possible for a person to be driven by non-financial factors in addition to money ones. In order to encourage employees to work more and produce more, financial incentives might be offered. Additionally, admiration, acknowledgement for effort, or the creation of improved working circumstances is all effective methods of motivation that do not include monetary compensation. In a general sense, motivation may be divided into two categories: positive motivation and negative motivation.
It is possible to have positive motivation when an activity is driven by the provision of incentives or advantages. It is possible for a person to be negatively motivated when they are forced to labour out of fear of being punished. The use of positive motivation is preferable to the use of negative motivation since, in the case of negative motivation, the individual is not trying the activity with excitement but rather with force. In light of this, the nature of this condition is ephemeral, but positive motivation demonstrates superior outcomes since it encourages people to put forth their efforts with complete dedication.
BENEFITS TO THE EMPLOYEE AND THE EMPLOYEER
Enhanced productivity, which refers to the quantity of output generated by each one worker. It is possible that this may result in reduced unit costs of manufacturing, which will allow a company to offer its product at a cheaper price range.
If workers are happy with their working life, there will be less instances of absenteeism. Additionally, there will be fewer instances of staff turnover, which refers to the number of employees that leave the company. This may result in reduced expenses associated with recruiting and training.
EMPLOYEE MOTIVATION
The Latin word "movere," which meaning to move, is where the concept of motivation originates from. It entails repositioning all of the elements that are responsible for activating human behaviour (Steers and Porter, 1987). One of the most essential responsibilities of management is to inspire personnel to work towards the accomplishment of organisational objectives. Reward programs are provided by management to workers who have shown good performance. Ability, motivation, and the environment in which employees do their jobs are the three most essential factors that affect employee behaviour. In order to obtain high levels of performance, the working environment might be modified. If there is a problem with the employee's abilities, the remedy may be to either train them or replace them. As Hasham (2004) points out, if motivation is a problem area, then it is a tough assignment for managers to deal with. An unfulfilled need is the source of motivation, which is a behaviour that is aimed towards achieving a goal. People make efforts to meet their unfilled wants, and when they get feedback in the form of fulfilled requirements, they proceed to the next unfulfilled need in their list of priorities. Every employee has their own unique set of requirements. When it comes to gaining visibility in the eyes of their superiors, some workers may opt to put in lengthy hours of labour because they are motivated by the desire to experience acknowledgement. Others who are governed by the requirements for growth and development may pick difficult tasks at their place of employment. There is a correlation between motivated workers actively seeking out new and alternative methods to accomplish things, which may result in improved performance at work. There are two types of elements that might drive employees: extrinsic factors and internal ones. Examples of extrinsic influences include monetary awards, promotions, and other forms of extrinsic reinforcement from the external environment. An person's need for recognition, development, autonomy, and other such things are examples of intrinsic variables that originate from inside the individual. Intrinsically driven workers are more likely to take responsibility for their own education and development.
EMPLOYEE MOTIVATION IN ORGANIZATIONS
Individual qualities, job characteristics, and work environment characteristics are the three sets of factors that are responsible for the development of motivation in organisations (Steers and Porter, 1987). Employees that perform exceptionally well may have a significant impact on the expansion and development of an organisation. The direction, power, and perseverance of an individual's behaviour are all aspects that are referred to as motivation. As stated by Steers and Porter (1987), it is the responsibility of management to ensure that employees are satisfied with their social requirements and that they feel valued in their employment. Although money is often considered to be the most important motivator, Hasham (2004) found that giving workers with a sense of identity, self-esteem, and the opportunity to actualise their potential may be more motivating.
DIMENSIONS OF EMPLOYEE MOTIVATION
According to Maslow's Hierarchy of Needs and Herzberg's Two Factor Theory, the most extensively researched aspects of motivation are based on these two theories. The five levels of needs that Maslow outlined are as follows: physiological needs, safety needs, social needs, esteem needs, and self-actualization requirements. The two sets of elements that Herzberg discovered are the extrinsic factors, also known as hygienic factors, which include things like working environment and income, and the internal factors, also known as motivators, which include things like recognition and progress. The variables that are most often explored under the category of motivation may be classified as either extrinsic or intrinsic. A poll conducted by Wiley (1992) found that the five most significant variables that contribute to motivation are as follows: decent pay, recognition for the work that is done, job stability, opportunities for advancement and development within the organisation, and work that is fascinating. Opportunities for advancement, the work environment, autonomy, feedback, and support from supervisors are some of the elements that have been examined in this particular research.
MOTIVATIONAL TOOLS PRACTICED BY ORGANIZATIONS:
Clear definition of jobs as a motivational tool
Notifying an employee of the outline of the tasks that have been assigned to him is of utmost importance since it allows the employee to take responsibility of the job that has been assigned to him. It becomes more challenging for the individual to advance in their career when there is a lack of a clear description of their work. JM Lacey's 2016 book.
Employees have a better understanding of how their work contributes to the overall performance of the organisation when the duties assigned to them are clearly defined. Additionally, there is an increase in the likelihood that the task will be finished on time. Employees are able to become more productive as a result of clearly defined roles and duties, which in turn motivates them to accomplish their objectives.
Employee suggestion system as a motivational tool
It has been shown via research that the employee recommendation system is an effective means of motivating workers. The employee suggestion systems may be seen of as a sort of indirect engagement in the decision-making process of an organisation, which ultimately contributes to the enhancement of the performance of the organisation. The workers are persuaded that their perspectives and suggestions are taken into consideration. It is possible for the ideas of employees to contribute to the growth of revenues, the reduction of expenses, and the production of goods and services of higher quality. In addition, this causes the workers to develop a management instinct, which causes them to begin thinking beyond their own individual duties. In the event that the firm maintains an open connection with its workers, the recommendations will naturally come in without the employees having to be specifically asked for them. For a recommendation system to be considered optimal, it is necessary to have management support that enables employees to freely express their opinions and comments without any fear or reluctance. Additionally, the recommendation system need to be formalised in a suitable structure that is in accordance with their principles. It is important that these rules be conveyed to workers so that they can evaluate and reward their performance properly. In order to inspire the staff, an appropriate compensation system is necessary. Additionally, as the level of employee participation in the organisation improves, it pushes the employee to provide his or her best ability.
Sufficient resources at work as a motivational tool
It is extremely vital to provide the workers with the needed resources they need in order to complete the job. This is one of the factors that contributes to a contented and motivated workforce. There is a possibility that the workers may experience an unneeded delay in the fulfilment of their objectives if they are unable to access the resources. Employees may get frustrated as a result, and the employee's enthusiasm for his job may decrease as a result of this. In the event that the work process is streamlined and there are sufficient financial, human, and physical resources available to complete the assignment, the motivation of the employees will increase.
Job security as a motivational tool
The results of empirical investigations demonstrate that there is a beneficial connection between job security and the performance of individual employees. According to the findings of Arabi et al. (2013), job security was shown to be the most significant predictor of work performance among all of the characteristics that were investigated. A substantial association between job security and employee motivation was also discovered by Senol (2011), who noted that job security is a highly effective and crucial component for motivating workers. Senol's findings were published in 2011. As stated by Graham Povey (2004), job stability is a more powerful motivating force than other variables that are intrinsically motivated. In addition, the importance of work security is reaffirmed by both traditional and contemporary management theories, such as the Abraham Maslow hypothesis, which takes into account the desire for safety.
Having a secure job is beneficial to guaranteeing success in the workplace. When workers are no longer concerned about the possibility of losing their jobs, they are better able to concentrate on the tasks at hand and the progress of their careers. It is possible to minimise the degree of tension when the income is guaranteed. In addition to contributing to a reduction in employee absenteeism and attrition, an employee who is experiencing distress will demonstrate increased levels of productivity. The employees will acquire a feeling of long-term commitment to the workplace, as well as a sense of belonging to the organisation they work for. There is also a reduction in the costs associated with personnel recruiting and training. The enhancement of job security promotes the image of the organisation and contributes to the recruitment of a more skilled personnel.
Flexible working hours as a motivational tool
The ability to concentrate on numerous rows in a competitive work environment is facilitated by flexible working hours, and there is a strong association between the two qualities. (Abd, Rahman, et al., 2013) Because to flexible arrangements, employees have the ability to choose where they work, when they work, and how much time they put in at work (Khan, 2018).
The degree of job satisfaction may be increased by providing employees with more autonomy, which can be accomplished via the provision of flexible work arrangements. Employees who are happy with their jobs are less likely to be absent from work and to leave their jobs, which results in a reduction in the amount of money spent on training new workers. The demand for flexible work arrangements has also grown urgent as a result of a number of factors, including the increasing diversity of the workforce and the spread of globalisation. In addition, because of the increasing workload, it is possible that the workers would deliver greater performance if they are given the option to choose the schedule that is most suitable for them. Women will also benefit from flexible work arrangements because they will have a better work-life balance, which will help them manage their job in a more creative and productive manner. This will lower the amount of stress they experience. The availability of limited infrastructure and an increased number of workers has led to the adoption of flexible work arrangements by a significant number of businesses. There is a link between flexible work arrangements and high levels of job motivation and performance, as shown by the fact that an increasing number of businesses are adopting flexible work policies.
Good and comfortable working conditions as a motivational tool
According to Freedman (2020), having a nice work environment helps improve employee morale, which in turn boosts productivity and increases the likelihood that employees will remain with the company. Workplaces are a significant factor in the achievement of positive outcomes by workers. The provision of sufficient space for the completion of tasks, the provision of them, and the maintenance of a balance between transparency in the workplace and the protection of privacy are all examples of comfortable working circumstances in the organisation. Providing workers with enough natural lighting conditions in the office has been shown to boost their ability to concentrate, as well as their mental health and bring about an overall improvement in their mood. The workers' productivity is increased as a result of this. The working environment may be enhanced by providing comfortable seats and a work space that can be customised to the employee's preferences. In addition, the layout must to be carried out in such a way that it does not impede the communication between the employees. Given that workers spend a significant portion of their day at their place of employment, it is of utmost importance to ensure that they have access to bathroom facilities and kitchens that are both clean and in excellent shape. It is also possible for businesses to prioritise health in the workplace by providing employees with a nutritious breakfast and by organising additional events that are focused on health. It is important to promote environmentally friendly workplaces. The workers' levels of motivation are increased as a result of these variables, which also assist them in performing in an effective and efficient manner.
Cordial Peer relationship as a motivational tool
It has been shown by a great number of academics that having positive coworkers helps employees remain motivated and results in better quality work. One of the factors that contributes to a rise in the happiness index of workers is the presence of positive peer interactions. It is well known that happy employees are more productive in the job. Additionally, they help to the improvement of staff retention and the maintenance of a high level of team spirit. Employees' job happiness may be improved via the development of friendships and the quality of their work. An employee's ability to motivate themselves to do better both individually and collectively is aided by having positive relationships with their peers. It improves the overall experience of working for the company and makes the workplace more pleasant. It satisfies the social requirements that workers have. It provides the workers with emotional support and offers them the strength to handle the obstacles that they experience at work. Additionally, when workers accomplish something, it is more significant to them when they have someone to share it with; hence, having positive connections with their peers is an important factor in this regard. Consequently, the firm need to take care to link efforts such as corporate-sponsored outings and social outings in order to enhance the degree of employee motivation and, consequently, the level of peer connections.
Providing break in midst of work as a motivational tool
Employees need breaks at work when the task is hard because, if they burn out, it will diminish their production. Employees need breaks because they need to breathe. In many different ways, it is beneficial to provide breaks in the midst of the working hours. Workers who are continuously on the job do not have the chance to examine their work from a different point of view since they are continually working. However, when people take a break from their job for a period of time, it stimulates the development of new thoughts and views in their minds. When people labour over their shifts, it creates disruptions in the workplace. It also has a negative impact on the emotional and physical well-being of employees. There is an increase in stress levels, an increase in eye strain, and a decrease in productivity. In addition to this, it lowers the degree of motivation that the workers have. The workers are given the opportunity to recharge themselves during the pauses that are in between the job, and they are also given the opportunity to speak and seek advice from other people. It was Eisenhower.
Grievance handling as a motivational tool
A sense of discontent that workers have at their place of employment is referred to as a grievance. During the course of her study article titled "Grievance handling: A motivational tool for employees," Garima (2017) said that if employee complaints are not addressed in a timely manner, they have the potential to develop into a dispute. A dissatisfied worker will be unable to perform their duties in an efficient manner inside the organisation. The impression that the organisation is unjust and does not care about the problems that the workers are facing is created as a result of this. The workers may experience a decrease in their sense of belonging to the organisation as a result of this, which may also contribute to a decrease in their motivation.
Bias free working environment as a motivational tool
Workplaces that are free of bias are those that provide workers with honest evaluations of their performance and guarantee that they are treated fairly. It is easier for workers to feel secure in their employment when they are treated fairly while they are on the job. Furthermore, it enhances the level of contentment experienced by workers, as well as their overall performance. When they feel like they belong to the organisation, the workers create a sense of belonging. In addition, workplace policies are beneficial to the organisation since they lead to a reduction in the number of legal claims and an improvement in the organization's reputation. The process of recruiting new talent becomes less difficult. Discrimination in the workplace may be either deliberate or unintentional.
When we purposefully classify individuals according to specific characteristics or features, we are engaging in the practice of accidental prejudice. This unintentional prejudice has the potential to have negative effects on the morale of the workforce. detrimental bias may have a demotivating effect on an employee, which can have a detrimental influence on his productivity. Commitment may be affected, and strain at work may be increased as a result. Intentional bias, which manifests itself in the form of delivering biassed perks and privileges to workers, is another factor that contributes to increased division and conflict among these individuals. As a result, the hostile environment at work is exacerbated. As a result, having a workplace that is free from prejudice has the potential to boost dedication and serve as a highly powerful motivating element in the workplace.
Respectful treatment at work
A sense of respect is described by Sadd Ali Khan (2020) as the experience of treating someone properly because of the traits they possess. A further interpretation of it is that it is a demonstration of decency towards individuals. When managers and their teams respect one another, it brings about a positive atmosphere in the workplace and also contributes to an increase in the productivity of workforce members. It is possible for respect to serve as a signal of the attributes of a person, as well as his position and classification. On top of that, when an employee is appreciated, he or she is more likely to respect others in the workplace. There is a reduction in stress levels in the workplace when people are treated with respect.
There is a greater sense of ease among the workers when it comes to discussing their thoughts and work with their bosses and coworkers. The employees begin to develop positive relationships with their coworkers, they begin to work together, and informal learning begins to take place in the workplace. Employees report feeling joyful at their place of employment, which contributes to better employee satisfaction. They act in a manner that is reciprocal to their subordinates when they are pleased and when they experience or experience a culture that is respectful. Employees that work in disrespectful environments get upset, and this frustration is observed to be passed to the customers. The result is a decrease in production, and a significant amount of time is spent resolving disagreements and complaints caused by employees. In addition to this, it may occasionally hasten the pace of employee turnover within the organisation.
Appreciation and Recognition at work as a motivational tool
It is possible to describe employee recognition as the act of recognising performance that exceeds the typical expectation or standard within the organisation. When it comes to fundamental human needs, appreciation is among the most essential. Employees are able to comprehend the value of their work and efforts when they are praised for their efforts. Additionally, it helps to fulfil the emotional needs of the staff members. They are motivated to deliver better performance, employee engagement is improved, and organisational performance is enhanced as a result of this behaviour. Continued efforts are made by workers to accomplish both their personal and organisational objectives. One may also consider it to be an essential component of a contented workforce.
A study conducted by Gallup in 2016 found that in order for workers to effectively execute their jobs, they need be recognised and appreciated on a weekly basis. This should be done to employees who are worthy of such acknowledgement. It not only helps the individual understand the significance of their accomplishments, but it also allows the firm to reinforce its core principles.
Participation in decision making process as a motivational tool
Employees are the ones who provide the groundwork for a firm at the beginning of its existence. When employees are used and motivated, they not only carry out their assigned tasks, but they also have the potential to be a source of ideas and expertise for the organisation. This results in a reduction in manufacturing costs as well as a time savings (Anderson 2019).
The participation of workers in the decision-making process of the organisation is associated with a multitude of benefits. When workers are given the opportunity to participate in decision-making, they develop a sense of responsibility related to the task in which their input was taken into consideration. Consequently, this growing responsibility contributes to the expansion of the skill set of the personnel. Additionally, when management gets ideas from inside sources, they are required to become less reliant on the services provided by outsourcing companies. When workers are given the chance to talk about their thoughts and feelings, it not only strengthens their relationships with one another inside the organisation, but it also demonstrates improved collaboration. According to Kappel (2018), when employees are given the opportunity to participate in decision-making, it give them the impression that their bosses trust them. It is possible to involve employees by implementing the following strategies, such as the creation of physical and digital suggestion boxes, the conduct of regular surveys to learn about employee feedback, and the formation of employee committees, with the representative speaking on behalf of the team, if the number of employees is large. Therefore, if workers are involved in this process, it serves as a motivating factor for employees to perform to the best of their abilities for the organisation.
Support from superiors as a motivational tool
It was reported in the Harvard Business Review by Myers (1996) that the manner in which supervisors led employees had a direct influence on their level of motivation. In order to motivate workers, it is important to offer them with enough support and allow them to have faith in their choices. Internal motivation and self-direction are two qualities that should be had by them in order to maximise their output. The involvement of workers will increase, and their commitment to the organisation will grow as a result. Employees' confidence is developed and boosted when they are supported by their superiors in making choices that are in their best interests while they are working. It instills a greater sense of responsibility in their workers for the actions and choices they make. The Centre for Creative Leadership in the Year 2020
Training and development as a motivational tool
In her 2017 article, Joan Tanner discusses the psychological strategies that may be used to motivate workers via training and development. When it comes to increasing the value of workers in the workplace, he brings up the fact that encouraging employees is an essential component. During training, workers are guided through the process of determining how their work aligns with the organization's goal and objectives. When workers are made aware of the significance of their work, they are more likely to feel driven to do their jobs. In his article from 2020, Feigenbaum makes the point that training is a promising opportunity for everyone who participates in it. At both the organisational and individual levels, training and development activities communicate the presence of a modern organisation. This, in turn, generates further excitement and loyalty among workers. This ultimately results in a high degree of motivation. An investigation into the "Impact of training on employee motivation in Human Resource Management" was carried out by Baner Ozkeser in the year 2019. According to the findings of the research, training may be regarded as a significant factor in enhancing the motivation of workplace employees.
Promotion and advancement opportunities as a motivational tool
For workers, promotions serve as a career anchor that motivates them to work hard. As a result of promotions, workers are given greater responsibility and power, which ultimately leads to increased job satisfaction. Additionally, promotions result in increased salary, as well as financial advantages and other extra perks. In this way, it contributes to the improvement of the workers' quality of life. By appealing to the workers' feeling of aspiration and improving management competency, it ultimately results in a more positive and satisfying experience for the employees in their place of employment. The nature of the concepts of promotion opportunities, employee motivation, work happiness, and employee feedback is cyclical in nature. When taken together, they result in an improvement in employee performance, and the prospects for promotion and progress make it possible to decrease staff turnover and absenteeism.
Additionally, it is an essential component of the rewards and recognition program that an organisation has in place. In the event that workers are being considered for promotions, it is essential that measures be made to enhance their understanding of the sector, as well as to implement and perfect the abilities that are necessary for the subsequent level. As a result, promotion and career development are beneficial to the organisation and boost productivity when the appropriate personnel are promoted and when the necessary procedures are done to conduct background checks. It is a motivating factor for workers to contribute to the growth of the organisation when they see that the organisation is concerned about their personal development.
CONCLUSION
The review highlights that employee motivation plays a pivotal role in driving organizational performance. Motivated employees exhibit higher levels of job satisfaction, productivity, and loyalty, which directly contribute to the achievement of organizational goals. The literature consistently supports the view that both monetary and non-monetary factors significantly influence employee motivation.
Financial incentives such as salaries, bonuses, and promotions are strong motivators, especially for employees in the early stages of their careers. However, non-financial motivators like recognition, meaningful work, flexible working conditions, and participative decision-making become increasingly important as employees progress within the organization.
It is crucial for organizations to adopt a balanced approach that integrates both intrinsic and extrinsic motivational strategies tailored to their unique workforce. Effective communication, fair policies, and supportive leadership are essential in fostering a motivating work environment.
Future studies should continue to explore motivation across different industries, cultures, and demographic profiles to develop more targeted strategies that can sustainably improve employee engagement and organizational success.