A Study on Employee Motivation Effect on Organizational Performance

Because workers are always looking for new and better possibilities, it is now very necessary for an organisation to determine the factors that contribute to an employee's decision to remain with the organisation throughout their time there. According to Flowers and Hughes (1973), both job satisfaction and the atmosphere of the organisation have been highlighted as two of these factors. Employees have been put in situations where they are exposed to unfavourable work characteristics as a result of increased competition, globalisation, and the drive for efficiency. Within this framework, the study of organisational climate has become an extremely important field of research. The morale and well-being of employees are greatly affected by the work environment. The perspective of the working environment held by personnel who are employed by an organisation is sometimes referred to as the organisational climate. According to Schneider et al. (2011), the term "organisational climate" refers to the features of the environment that are consciously recognised by members of the organisation. In recent years, there has been a growing interest among researchers to investigate the connection between organisational climate and other organisational factors, such as work satisfaction and employee motivation. The establishment of a constructive organisational environment inside an organisation is of utmost significance since it contributes to the development of a workforce that is motivated to accomplish the objectives of the organisation.

According to Jyoti (2013), there is a theory that suggests that a more pleasant working environment would lead to increased levels of worker satisfaction. Pritchard and Karasick (1973) and Tripathi and Tripathi (2002) are only two of the many scholars that have backed up this thesis. "a pleasurable emotional state resulting from the appraisal of one's job or job experiences as achieving or facilitating the achievement of one's job values," according to Locke's definition from 1976, job satisfaction is described as "a pleasurable emotional state." By gaining an awareness of the elements that contribute to work satisfaction, it is possible to lower the expenses that are associated with employee turnover. A direct connection exists between job satisfaction and the motivation of workers. To encourage workers to work more effectively towards the achievement of organisational objectives is one of the most essential duties that management is responsible for having to do. The quantity of effort, the direction of that effort, and the tenacity with which it is directed towards a goal are all components that make up motivation. In order to improve the atmosphere of an organisation, it is necessary to have motivating work features such as autonomy, support, feedback, and effective leadership. There has been a favourable correlation between the environment of an organisation and the motivation of its employees (Tyagi, 1982; Mahal, 2009). When it comes to the performance of an organisation, motivation is an extremely important factor. The majority of workers throughout the globe believe that they are entitled to get fair treatment from their employers, that they should be shown care by management, and that they should be provided with a pleasant working environment. According to Hasham (2004), this will result in increased levels of satisfaction, which in turn will drive staff to function more efficiently. When it comes to understanding organisational behaviour, having a thorough awareness of the organisational environment, employee motivation, and job satisfaction, as well as their interrelationships, will give an insight.

When it comes to the management of human resources, one of the most essential KPIs is the rate at which employees are retained. Employees who are both knowledgeable and devoted to their profession are essential to the success of any organisation since they are the institution upon which the company is built. Because the process of training new workers requires a significant amount of time and resources, an organisation reaps the advantages of an employee's continuing loyalty for the longer they remain with the company.

The people who work for a company are its most valuable asset and its main source of energy, say Mohsen et al. (2004). Employees are anticipated to do their duties in line with the standards established and to provide the results demanded by the company. We need people who are highly driven to perform and who are also provided with the tools they need to succeed if we are to achieve our goals. Managers are primarily responsible for making sure their employees do their tasks, according to Tella et al. (2007).

Only a manager with extraordinary abilities to inspire employees from inside can pull this off, according to Geomani (2012). Intangible human resources, including the ambition, commitment, and drive of company owners and employees, are the bedrock upon which great companies are constructed. (Thomas et al., 2004) Companies go to great lengths to maximise the potential of their human resources since doing so guarantees their survival and prosperity. Achieving job satisfaction and worker engagement requires effective motivation at all levels of an organisation (Tella et al., 2007). Based on what we know from the research, this is the reality. Mohsen et al. (2004) found that an organization's total performance is significantly impacted by the amount of passion and commitment shown by its personnel. The people who work for a firm and are really committed to what they do make up its staff, which is its most precious asset (Denton, 1987).

Maintaining high levels of staff enthusiasm, dedication, and job engagement throughout operations is always desired for a corporation, according to Denton (1987). This is because output increases when people are enthusiastic and committed. Businesses with employees that love what they do and are committed to the company's success are more likely to have happy customers, say Mohsen et al. (2004). A great deal of study has focused on the connection between intrinsic motivation and employee loyalty in the workplace in recent years (Warsi et al., 2009). Geomani (2012) defines motivation as the urge to act in a way that helps one reach their objectives. He reasoned on the premise that being motivated is all about choosing choices. Modern businesses, say Mohsen et al. (2004), are continuously on the lookout for creative methods to motivate their employees so that they can meet the unpredictable and ever-evolving demands of their clients.

Perception, character, outlook, and education are all psychological processes that are just as important as motivation (Tella et al., 2007). All of these things are important for conduct, but what really matters is motivation. The level of employee motivation is the most important factor in an organization's success, claims Geomani (2012). Research by George and Sabapathy (2011) indicates that driven individuals are more inclined to take the necessary steps to accomplish their goals and satisfy their psychological needs. Tella et al. (2007) found that financial incentives aren't the only effective way to motivate people to do what you want them to do. Raj and Sci (2009) state that a manager's ability to inspire their team members to give their all at work is a key component of motivation. Mohsen et al. (2004) states that in today's cutthroat business climate, nothing is more important than a dedicated and passionate team if one wants to succeed. Allen and Meyer (2000) and Warsi et al. (2009) state that there has been a substantial amount of study on the idea of organisational commitment, which is considered a crucial attitude in the area of organisational behaviour and management. Following the groundbreaking work of Cho and Faerman (2010), a great deal of research in the field of human resource management has focused on the concept of organisational commitment. "The psychological state that is concerned about how individuals feel about their organisational engagement, as well as the desire to remain and continue with the organisation" is the official description of organisational commitment (Meyer and Allen, 1997). The three components of a commitment—the emotional, the continuance, and the normative—are defined by Meyer and Allen (1987).

Choong et al. (2011) states that an organization's success is proportionate to the degree to which its members have shown dedication. A person's level of professional dedication is positively correlated with their level of intrinsic motivation, according to research by Warsi et al. (2009). The person may benefit from this connection.

A quantitative research strategy is used in the investigation. To find trends, patterns, and correlations among variables, quantitative research is great for collecting numerical data that can be statistically analysed. This method is ideal for the study since it provides a quantitative way to quantify employee motivation and evaluate its effects on organisational performance. The use of structured questionnaires, statistical tools, and inferential analysis aligns with the quantitative methodology and supports the objective evaluation of the research problem.

This study is both descriptive and analytical in nature. Descriptive research is employed to gather detailed, factual information regarding the present state of employee motivation within the organization.

Primary data was collected directly from employees through the distribution of structured questionnaires. These first-hand responses form the core of the empirical analysis.

Secondary data was gathered from published research papers, books, industry reports, organizational documents, magazines, government publications, and reliable online sources. These sources provided a solid theoretical foundation and supported the interpretation of primary data findings.

The primary data for this study was collected using a structured questionnaire distributed to employees across various departments. The questionnaire was designed to collect demographic details as well as employee opinions on motivational factors. A five-point Likert scale was employed to measure the level of agreement or disagreement with various motivational statements. The questionnaire was administered both in printed form and electronically to ensure accessibility.

The study employed the simple random sampling technique, ensuring that each employee in the target population had an equal and independent chance of being selected. This technique was chosen to minimize sampling bias and ensure that the collected data accurately represented the diverse employee base of the organization.

The sample size for this research was 100 employees. The respondents were selected from various departments and hierarchical levels within the organization to capture diverse perspectives.

Used for initial data entry, organizing responses, creating tables, and generating visual representations such as charts and graphs.

Used for advanced statistical analysis, including descriptive statistics, correlation analysis, and reliability testing. SPSS was selected for its efficiency and accuracy in handling complex data sets.

The data collected through the questionnaires were systematically coded and analyzed using descriptive statistics and basic inferential techniques. Statistical tools such as percentages, mean scores, and frequency distributions were used to summarize the responses and identify trends. In addition, correlation analysis was conducted to explore the relationship between different motivational factors and organizational outcomes such as employee satisfaction and performance. The analysis was carried out using SPSS software to ensure accuracy and reliability in data processing and interpretation.

Types of Approaches That Motivate You More

The distribution of respondents based on the motivational approaches that influence them the most is presented in the table below:

Table 1: Types of Approaches That Motivate You More

Figure 1: Types of Approaches That Motivate You More

The above table shows that behavioral approaches are the most preferred, with 29% of respondents indicating that behavioral factors, such as supportive leadership, clear communication, and positive reinforcement, motivate them the most. This is closely followed by cognitive approaches (28%), which involve individual understanding, goal-setting, and problem-solving. Physiological (19%) and social factors (18%) also play significant roles in motivating employees.

Meanwhile, fewer respondents are motivated by promotions (4%) and job security (2%), while no respondents selected career as their primary motivational approach.

It can be inferred that behavioral approaches (29%) are the most effective motivators for employees in this study.

Are You Motivated by the Officers

The responses regarding whether employees feel motivated by their officers are presented in the table below:

Table 2: Motivated by the Officers

Figure 2: Motivated by the Officers

The table indicates that 86% of the respondents answered "Yes", meaning the majority of employees feel motivated by their officers or superiors. On the other hand, 14% of the respondents answered "No", indicating they do not feel motivated by their officers.

It can be inferred that the majority of employees are positively influenced and motivated by their officers. Effective leadership and supportive officer-employee relationships appear to be key contributors to the motivational environment within the organization.

Incentives for Employee Performance: Salary

The responses regarding whether salary acts as a motivational factor influencing employee performance are presented in the table below:

Table 3: Incentives for Employee Performance: Salary

Figure 3: Incentives for Employee Performance: Salary

The table shows that the majority of respondents, 59%, agree that salary is a significant motivational factor in improving employee performance. Additionally, 19% strongly agree with this view, reinforcing the importance of salary in influencing motivation. Only 3% of respondents disagree, and no respondents strongly disagreed with the statement. Meanwhile, 19% of respondents remained neutral, indicating that they may see salary as only one of several motivating factors.

It can be inferred that salary is widely recognized by employees as a key motivator that impacts their performance. The combined 78% (agree + strongly agree) clearly shows that most employees are driven by financial rewards. The low level of disagreement suggests that salary is a fundamental element in any motivational strategy. However, the presence of neutral responses indicates that while salary is important, some employees may also value other non-financial motivational factors.

Working Condition as the Motivational Factor to Employees’ Performance

The responses regarding whether working conditions act as a motivational factor influencing employee performance are presented in the table below:

Table 4: Working Condition as the Motivational Factor to Employees’ Performance

Figure 4: Working Condition as the Motivational Factor to Employees’ Performance

The table shows that the majority of respondents (69%) agree that working conditions are a significant motivational factor influencing their performance. Additionally, 9% strongly agree with this view. Only 2% of respondents disagree, and no respondents strongly disagreed with the statement. A portion of 20% of the respondents remained neutral, which may indicate that while working conditions are important, they may not be the sole factor affecting motivation for some employees.

It can be inferred that working conditions are a critical factor in motivating employees, as indicated by the combined 78% (agree + strongly agree) of respondents. Favorable working environments contribute positively to employee satisfaction, performance, and retention. The low percentage of disagreement and the absence of strong disagreement suggest that almost all employees recognize the value of good working conditions. However, the neutral responses highlight that for some employees, other factors like salary, growth opportunities, or recognition might also play a significant role.

Appreciation for the Work Performed as the Motivational Factor to Employees’ Performance

The responses regarding whether appreciation for the work performed serves as a motivational factor influencing employee performance are presented in the table below:

Table 5: Appreciation for the Work Performed as the Motivational Factor to Employees’ Performance

Figure 5: Appreciation for the Work Performed as the Motivational Factor to Employees’ Performance

The table shows that 60% of respondents agree that appreciation for the work performed is a significant motivational factor that enhances their performance. An additional 16% strongly agree, indicating a strong positive perception towards the role of appreciation in boosting motivation. There were no respondents who disagreed or strongly disagreed, while 24% of respondents remained neutral, which may suggest that some employees might require other motivational drivers in addition to appreciation.

It can be inferred that appreciation is an essential motivational factor for employees, as indicated by the combined 76% (agree + strongly agree) who acknowledge its positive impact on their performance. The absence of disagreement signifies a strong consensus on the importance of recognizing employee efforts. However, the 24% neutral responses imply that appreciation alone may not fully satisfy or motivate all employees, highlighting the need to combine it with other motivational strategies such as promotions, salary increments, or flexible working conditions.

Are You Satisfied with the Company Management

The responses regarding the level of employee satisfaction with the company’s management are presented in the table below:

Table 6: Satisfied with the Company Management

Figure 6: Satisfied with the Company Management

The table shows that 51% of respondents chose Neutral, indicating that a significant portion of employees neither agree nor disagree about being satisfied with company management. 36% of respondents expressed satisfaction, and 9% reported being highly satisfied. Only 4% of respondents were dissatisfied, and no respondents reported being highly dissatisfied.

It can be inferred that while a reasonable percentage of employees (45% combined) are satisfied or highly satisfied with the management, the highest proportion (51%) remains neutral, which may reflect uncertainty or mixed feelings about the company’s management practices. This suggests that while there are no severe dissatisfaction levels, there is an opportunity for management to further engage employees and address potential concerns to convert neutral sentiments into positive satisfaction.

The study concluded that employee motivation is an essential determinant of organizational performance. The analysis indicated that the majority of employees are motivated by intrinsic and extrinsic factors such as salary increments, favorable working conditions, appreciation for work performed, and effective leadership. The findings emphasized that salary is not the sole driver of motivation; appreciation, participation in decision-making, and supportive management also significantly impact employee satisfaction and performance. Although the majority of employees expressed satisfaction with their officers and agreed that workplace motivation improves their performance, a notable portion of respondents remained neutral about their satisfaction with company management. This suggests potential areas for organizational improvement in leadership engagement and management transparency. It was also evident that behavioral approaches to motivation, such as recognition and leadership support, are the most effective in this organization. The study highlights that motivated employees not only perform better but also show higher levels of organizational commitment, which ultimately contributes to organizational success. Organizations should, therefore, focus on providing both financial and non-financial incentives, fostering a positive organizational climate, and encouraging employee participation in decision-making processes to enhance motivation levels and drive performance.