YASHWANTRA YASHWANT RAO O CH CHAV AVAN AN MAH MAHAR ARAS ASHT HTRA RA OP OPEN EN UNIVERSITY NASHIK 422222
A Project Report On
STUDY OF EMPLOYEE MOTI MOTIV VATION AND PERFORMANCE Submitted ! " Pr#n#$ Do%&i MA II I I Ye Ye#r ' (RM)
*uided ! + De%&p#nde D,D, Re-ion#. Ser$ice M#n#-er "(R (DFC/ Mumb#i
For t&e Ac#demic Ye#r 0123"0124
CERTIFICATE
T&i% i% to certi5! t&#t Pr#n#$ Do%&i %tudent o5 M,,A, &#% %ucce%%5u..! comp.eted &er project in N#me o5 t&e topic 6STUDY OF EMPLOYEE MOTIVATION MOTIVATION AND PERFORMANCE7 PERFORMANC E7 It i% comp.eted #% per t&e re8uirement% o5 Y#%&9#ntr#o C&#$#n M#&#r#%&tr# Uni$er%it!/ Uni$er%it!/ N#%i:, N#%i:, In p#rti#. 5u.5i..ment o5 M#%ter o5 u%ine%% Admini%tr#tion %econd !e#r 5or t&e Ac#demic !e#r 0123"0124,
De%&p#nde D,D, Re-ion#. Ser$ice M#n#-er "(R (DFC/ Mumb#i 'Re%e#rc& *uide)
YASHWANTRAO YA SHWANTRAO CHAV C HAVAN AN MAHARASHT MAHA RASHTRA RA OPEN UNIVERSITY NASHIK 422222
A Project Report On
STUDY OF EMPLOYEE MOTI MOTIV VATION AND PERFORMANCE Submitted ! " Pr#n#$ Do%&i MA II Ye#r ' (RM)
*uided ! + De%&p#nde D,D, Re-ion#. Ser$ice M#n#-er "(R (DFC/ Mumb#i
For t&e Ac#demic Ye#r 0123"0124
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I #m #.%o t&#n:5u. to Project *uide < 5or &e.pin- me to comp comp.e .ete te m! pr proj ojec ectt 9or: 9or: %ucc %ucce% e%%5 %5u. u..! .!// 9it& 9it&ou outt &er -uid#nce it 9ou.d &#$e not been po%%ib.e,
P.#ce= Pune D#te=
N#me o5 t&e %tudent Pr#n#$ Do%&i MA II Ye#r ' (RM)
DECLARATION
I &ereb! dec.#re t&#t/ t&i% Project Report %ubmitted b! me in p#rti#. 5u.5i..ment o5 M#%ter o5 de-ree/ it i% # -enuine 9or: o5 mine, mine, It &#% not been %ubmitted %ubmitted eit&er 5u..! or p#rt.! to #n! ot&er in%titute prior/ in #n! ot&er connection,
N#me o5 t&e %tudent
Pr#n#$ Do%&i MA II Ye#r ' (RM)
Preface
The topic of this project is employee motivation related to
employee performance in the organisation. And aim of this thesis is to provide information on how employees can be intrinsically and/or etrinsically motivated to perform well in organisations.
!ince this "roject is a literat#re research and is th#s based on the research of others$ references are provided at res#lts$ statements and concl#sions of others. This has been done in order to prevent plagiarism.
Summary
This project is foc#sed on the relationship between intrinsic and etrinsic motivation and employee performance. The thesis is a literat#re research and th#s a review by the wor& of others.
'n earlier research on this topic cond#cted by (room was concl#ded that a positive correlation between motivation and performance did not eist. )owever$ later research proved that it is indeed possible to motivate employees intrinsically and etrinsically to perform well. 't appears that when the organisation provides certain job characteristics$ employees can be motivated to perform well in the organisation. And it also appeared that intrinsic factors have more e*ect on the relationship than etrinsic factors.
This project is divided in +ve chapters, an introd#ction to the problem$ a chapter abo#t employee motivation$ a chapter abo#t employee performance and one abo#t how both types of employee motivation have an e*ect on performance. At last$ in chapter +ve$ the concl#sion is presented$ together with a disc#ssion and managerial implications.
Table of Contents
hapter 1 'ntrod#ction..........................................................0 "roblem statement............................................................1 esearch #estions...........................................................11 ethodology......................................................................11 !tr#ct#re of the project.....................................................11 hapter 2 mployee otivation..........................................14 The concept motivation.....................................................14 )er6berg and aslow........................................................1% 'ntrinsic and etrinsic motivation......................................2 The relationship between intrinsic and etrinsic motivation21 oncl#sion.........................................................................22 hapter 3 mployee performance......................................24 "erformance in organisations............................................24 7ob performance................................................................25 eas#ring job performance...............................................2% 8ptions for meas#ring job performance objectively..........2hapter 4 mployee motivation and performance..............3 The relationship between employee motivation and job performance......................................................................3 otivating employees intrinsically to perform...................34 otivating employees etrinsically to perform..................35 hapter 5 oncl#sion..........................................................39 oncl#sion.........................................................................39 :isc#ssion.........................................................................4
anagerial implications.....................................................41 eferences...........................................................................43 ;oo&s$ Articles and 7o#rnals...............................................43
Chapter 1: Introduction otivation is a topic that is etensively researched. )alfway the twentieth cent#ry the +rst important motivational theories arose$ namely aslow=s hierarchy of needs >1043?$ )er6berg=s two@factor theory >1050? and (room=s epectancy theory >10%4?. Those researches foc#sed on motivation in general and employee motivation more speci+cally. 'n the past years vario#s de+nitions of motivation were de+ned$ e.g. )er6berg >1050? de+ned employee motivation once as performing a work related action because you want to.
't is commonly agreed that employee motivation can be separated in intrinsic and etrinsic motivation. 8ne of the +rst attempts to ma&e that distinction was in )er6berg=s Two@actor Theory. specially important is the disc#ssion abo#t how intrinsic and etrinsic motivation can contrib#te to employees= performances.
The
relationship
between
employee
motivation
and
job
performance has been st#died in the past >(room$ 10%4?. ;#t high correlations between the two were not established.
)owever$ later research concl#ded that employee motivation and job performance are indeed positively correlated. This relationship is st#died in this project and the aim is to provide managers #sef#l information how employees= performances can be increased by motivating them intrinsically and/or etrinsically.
Problem statement To what etent can the di*erent types of employee motivation inB#ence the performance of employees at the wor&placeC
Research Questions 1.
Methodology The aim of this project is to elaborate on the relationship between employee motivation and employee performance and
to
provide
organisations
and
managers
#sef#l
information on this topic. The answers to all research D#estions will be based on literat#re research.
Structure of the project 'n the net chapter$ chapter two$ the concept motivation is eplained. After some basic information and de+nitions two older motivational theories are eplained >)er6berg >1050? and aslow=s >1043? theory?. After that the distinction between intrinsic and etrinsic motivation is made. And at last$ the
relationship between both and their e*ects are clari+ed. hapter three will foc#s on the job performance of employees in the organisation, the importance of employee performance will be addressed and also meas#ring job performance is described. This will be the basis for chapter fo#r, the relationship between employee motivation and performance will be described in that chapter. #rther in chapter fo#r is eplained how people can motivate employees intrinsically and etrinsically. The implications of both types of motivation are clari+ed and in chapter +ve the concl#sion is provided together with a disc#ssion and the managerial implications.
! Chapter ": #mployee Moti$ation 5. %. 'n the following chapter the concept motivation is eplained. 't seems that motivation can be conceived in many di*erent ways, e.g. many researchers tried to form#late motivation b#t all proposed di*erent approimations. or eample )er6berg=s theory of motivation >1050? is still #sed nowadays. )er6berg was one of the +rst persons who disting#ished between intrinsic and etrinsic motivation. And that distinction co#ld clarify and therefore help motivating employees. 'n this chapter some de+nitions will be mentioned$ together with an introd#ction of the theories of aslow >1043? and )er6berg >1050?. ;#t more importantly a separation between intrinsic and etrinsic motivation is made. This separation is also helpf#l to clarify the relationship between employee motivation and performance. -.
%! The concept moti$ation 0.
The +rst D#estion that arises is Ewhy managers need
to motivate employeesCFAccording to !mith it is beca#se of the s#rvival of the company. 't is important that managers and organisational leaders learn to #nderstand and deal e*ectively with their employee=s motivation, since motivated employees are necessary to let the organisation being s#ccessf#l in the net cent#ry. !he also arg#es that #nmotivated employees are li&ely to epend little e*ort in their jobs$ avoid the wor&place as m#ch as possible$ eit the organisation and prod#ce low D#ality of wor&. 'n the case that employees are motivated, they help organisations s#rvive in rapidly changing. 1. 11.
The term motivation arose in the early 199=s,
before that time the term EwillF was #sed by philosophers as well as social theorists when disc#ssing e*ortf#l$ directed and motivated h#man behavio#r. According to them motivation #sed to be considered as an entity that compelled one to action.
Gately$
vario#s
researchers
proposed
di*erent
de+nitions of motivation. otivation has been de+ned as the psychological process that gives behaviour purpose and
direction, a pre disposition to behave in a purposive manner to achieve specic, unmet needs; an internal drive to satisfy an unsatised need, and the will to achieve. 12. 13.
't
is
also
said
that
altho#gh
there
is
some
disagreement abo#t the importance of di*erent aspects in the de+nition of motivation$ there is consens#s abo#t some #nderlying properties. Hamely$ that motivation is an individ#al phenomenon$ it is described as being intentional$ it is m#ltifaceted and that the p#rpose of motivational theories is to predict behavio#r. itchell >1092? also arg#es that motivation is concerned with action and the internal and eternal forces that inB#ence one=s choice of action. And that motivation is not the behavio#r itself$ and it certainly is not performance. 'n relation to this$ itchell >1092? proposes his own de+nition of motivation “motivation becomes the degree to which an individual wants and chooses to engage in certain specied behaviours” . 14. 15.
The overall s#ccess of the organi6ational project
depends on the project team=s commitment which is
directly related to their level of motivation. As employees are the main reso#rces for organi6ations= b#siness motivation
activities$ will
the
iss#es
critically
decide
of
employees=
organi6ations=
s#ccess. 't is evident that mangers need to motivate employees to obtain the desirable res#lts for the organisation. And it can be stated that there is consens#s abo#t the facts that motivation is an individ#al phenomenon$ it is described as being intentional$ it is m#ltifaceted and that the p#rpose of motivational theories is to predict behavio#r. 't seems that )er6berg and aslow were among the +rst researchers at this topic and their theories are still being #sed today. !ince these theories clarify the concept of motivation and they are #sef#l for the separation of motivation in intrinsic and etrinsic motivation$ they are eplained in the net paragraph. 1%.
1&!
'er(berg and Maslo)
19.
)er6berg
>1050?
developed
a
well@&nown
motivation theory$ namely the Two@actor Theory, he
disting#ishes in his theory between motivators and hygiene factors. 'mportant is that factors are either motivators or hygiene factors$ b#t never both. otivators are intrinsic motivational factors s#ch as challenging wor&$ recognition and responsibility. And hygiene factors are etrinsic motivational factors s#ch as stat#s$ job sec#rity and salary >intrinsic and etrinsic factors are f#rther described in the net paragraph?. otivating factors can$ when present$ lead to satisfaction and hygiene factors can$ when not present$ lead to dissatisfaction$ b#t the two factors cannot be treated as opposites from each other. )er6berg de+nes motivation in the wor&place as performing a work related action because you want to. 10. 2.
;elow
a
table
is
presented
with
)er6berg=s
motivators and hygienes. As seen in the +g#re$ motivators are intrinsic conditions to the wor& itself and hygienes etrinsic conditions to the wor&.
1.
otivators >leading 2.
to satisfaction? Achievement 3. 5. ecognition -. 0. 11.
)ygienes
to dissatisfaction? ompany policy 4. %. !#pervision 9. elationship with boss
1. 12. 14.
13.
Irowth 15.
>leading 21.
peers !ec#rity
1%.
22. 23.
The Two@actor Theory of )er6berg is related to
aslow=s theory of motivation$ named )ierarchy of Heeds. aslow >1043? states in his need@hierarchy that there are at least +ve sets of goals$ which are called the basic needs$ namely physiological$ safety$ love$ esteem and self@act#ali6ation. And Ewe are motivated by the desire to achieve or maintain the vario#s
conditions
#pon
which
these
basic
satisfactions rest and by certain more intellect#al desiresF
>aslow$
1043?.
the
+rst$
physiological$ need is satis+ed the net Ehigher@order needF has to be satis+ed. aslow disting#ishes between lower@ and higher@order needs, the lower@
order needs are physiological$ safety and love and the higher@order needs are the last two. Gower@order needs have to be satis+ed in order to p#rs#e higher@ level motivators along the lines of self@f#l+lment >aslow$ 1043?. )owever$ the +ve needs di*er in type of motivation$ e.g. self@act#ali6ation is intrinsic growth of what is already in the organism$ or more acc#rately of what is the organism itself. )e also arg#es
that
self@act#alisation
is
absol#tely
not
something etrinsic that an organism needs for health$ s#ch as e.g. Ea tree needs waterF. )ereby$ aslow refers to the lower order needs as being more etrinsic and the higher order needs more intrinsic. ;elow$ in +g#re 2.2$ a chart of aslow=s hierarchy of needs is presented. 24. 25. 2%.
2-.
'n fact$ )er6berg$ a#sner and !nyderman >1050?
rede+ned aslow=s >1043? )ierarchy of Heeds into their two categories named hygienes and motivators. This is one of the +rst attempts to ma&e #p the di*erence between intrinsic and
etrinsic motivation. And they emphasi6ed that satisfaction and dissatisfaction cannot be treated as opposites from each other. 't can even be stated$ that the motivator needs of )er6berg are very similar to the higher@order needs in aslow=s Theory of Heeds. 29. 20.
't can be stated that )er6berg=s Two@actor Theory
and aslow=s )ierarchy of Heeds are two related theories. And it seems that these two theories form the basis for later motivational distinction
theories$ between
since intrinsic
they and
ma&e
a
etrinsic
very
clear
motivation.
'ntrinsic and etrinsic motivation are eplained in the net paragraph.
*+! 31.
Intrinsic and e,trinsic moti$ation
As described earlier$ motivation can be separated
in intrinsic and etrinsic motivation. 't is eplained as follows 32. J 'ndivid#als are intrinsically motivated when they see& enjoyment$
interest$
satisfaction
of
c#riosity$
self@
epression$ or personal challenge in the wor&. J 'ndivid#als are etrinsically motivated when they engage
in the wor& in order to obtain some goal that is apart from the wor& itself. 33. 34.
8ften etrinsic motivation is de+ned as$ money and
verbal reinforcement$ mediated o#tside of the person$ whereas intrinsic motivation is mediated within the person. And a person is intrinsically motivated to perform an activity if there is no apparent reward ecept the activity itself or the feelings which res#lt from the activity. Amabile >1003? arg#es that employees can be either intrinsically or etrinsically motivated or even both. 35. 3%.
't seems that intrinsic and etrinsic motivators
apply di*erently to persons. (room >10%4? arg#es that some employees foc#s on intrinsic o#tcomes whereas others are foc#sed on etrinsic o#tcomes. 'ndivid#als high in intrinsic motivation seem to prefer challenging cognitive tas&s and can self@reg#late their behavio#rs$ so o*ering rewards$ setting eternal goals$ or deadlines$ will do little for them$ #nless they are also high inetrinsic motivation. or employees
high in intrinsic motivation$ emphasis co#ld be placed on engaging nat#re of the tas& and enco#ragement of self@set goals and deadlines >!tory et al.$ 20?. )ac&man and 8ldham >10-%? even arg#e that people have individ#al di*erences in response to the same wor&, they di*erentiate between employees high and low in growth need strength. "eople high in growth need strength are most li&ely to be motivated by jobs with high s&ill variety$ tas& identity$ tas& signi+cance$ a#tonomy and feedbac&. And people low in strength are relatively insensitive for these factors according to them. This statement is s#pported by #rnham et al. >1009?, they arg#e that introverts are more etrinsically
motivated
and
etraverts
more
intrinsically motivated. )owever$ it not only seems that persons are di*erently motivated b#t intrinsic and etrinsic motivation also have e*ect on each other. 3-.
*%!
The relationship bet)een intrinsic and
e,trinsic moti$ation 30.
The
distinction
between
intrinsic
and
etrinsic
motivation is evident$ however researchers arg#e that intrinsic and etrinsic motivation also have an e*ect on each other. 'n some
cases
motivation.
etrinsic )e
arg#es
motivators that
if
can money
decrease is
intrinsic
administered
contingently$ it decreases intrinsic motivation. ;#t this event will not occ#r if the money is non@contingently distrib#ted. Amabile >1003? reacts to this disc#ssion by stating that altho#gh etrinsic motivation can wor& in opposition to intrinsic motivation$ it can also have a reinforcing e*ect Eonce the sca*olding of etrinsic motivation is ta&en care of$ intrinsic motivation can lead to high levels of satisfaction and performanceF. !he also states in her research that both intrinsic and etrinsic val#es can motivate employees to do their wor&$ however intrinsic and etrinsic motivation can have very di*erent e*ects on employees. 4. 41.
'n concl#sion can be stated that employees can be
intrinsically and/or etrinsically motivated$ to perform a certain
tas&. And that etrinsic and intrinsic motivation can reinforce each other$ b#t in some cases etrinsic motivators can also decrease intrinsic motivation. #rthermore$ researchers arg#e that not all people are eD#ally motivated, some employees are more intrinsically and others more etrinsically motivated. 42.
*! 44.
Conclusion
otivation in the wor&place is a broadly researched
topic. arlier research has been cond#cted by aslow >1043? and )er6berg >1050?$ who were pioneers at their s#bject. Gots of de+nitions have been composed$ e.g. )er6berg=s de+nition of motivation in the wor&place is performing a work related action because you want to >)er6berg$ 1050?. And some disagreements too& place abo#t the importance of certain aspects$ b#t consens#s is in the factsthat motivation is an individ#al phenomenon$ it is described as being intentional$ it is m#ltifaceted and that the p#rpose of motivational theories is to predict behavio#r >itchell$ 1092?. 45.
The
motivation
is
distinction also
between
eplained.
intrinsic
Hamely$
and
etrinsic
individ#als
are
intrinsically motivated when they see& enjoyment$ interest$
satisfaction of c#riosity$ self@epression$ or personal challenge in the wor&. And individ#als are etrinsically motivated when they engage in the wor& in order to obtain some goal that is apart from the wor& itself >Amabile$ 1003?. ;oth intrinsic and etrinsic motivators are important in motivating employees >)er6berg$ 1050?. 't m#st be arg#ed that managers m#st not foc#s on the most important factors solely. !ince$ according to )er6berg >1050? managers need to address all hygiene and motivator factors to motivate employees. 4%.
'n the net chapter$ employee performance is
eplained$ since the scope of this thesis lies in inB#encing employee performance by intrinsic and etrinsic motivation. 4-.
%!
Chapter *: #mployee performance
40. 5.
"erformances
can
be
separated
in
organisational and employee performance. mployee performance is also &nown as job performance. )owever$ it seems that job performance is mostly s#bjectively meas#red in organisations and it will appear that there are few alternative options. 'n this chapter$
at
+rst
the
distinction
between
organisational and job performance is made. After that the concept job performance is highlighted$ together with meas#ring it and its implications. 51.
-"! 53.
Performance in organisations
"erformance in organisations can be separated in
organisational performance and job performance. According to 8tley in 1000$ the performance of organisations is dependent #pon the performance of employees >job performance? and other factors s#ch as the environment of the organisation. The distinction between organisational and job performance is
evident, an organisation that is performing well is one that is s#ccessf#lly attaining its objectives$ in other words one that is e*ectively implementing an appropriate strategy >8tley$ 1000? and job performance is the single res#lt of an employee=s wor& >)#nter$ 109%?. !ince the aim of this project is to provide a lin& between
motivating
employees
and
their
performance$
organisational performance lies o#tside the scope of this research and only job performance is addressed. 54.
--! 5%.
.ob performance
A good employee performance is necessary for the
organisation$ since an organisation=s s#ccess is dependent #pon the employee=s creativity$ innovation and commitment. 5-. 59.
mployee prod#ction and employee job performance
seems to be related, e.g. performance in some cases meas#red as the n#mber and val#e of goods prod#ced. )owever$ in general prod#ctivity tends to be associated with prod#ction@ oriented terms >e.g. pro+t and t#rnover? and performance is lin&ed
to
eKciency
or
perception@oriented
s#pervisory ratings and goal accomplishments?.
terms
>e.g.
50. %.
According to )#nter and )#nter >1094? cr#cial in a
high job performance is the ability of the employee himself. The employee m#st be able to deliver good res#lts and have a high prod#ctivity. )#nter and )#nter >1094? also arg#e that this is something the organisation can &now at forehand, they can select employees with the reD#ired abilities or they can recr#it those employees themselves. 8f co#rse the latter is more time cons#ming$ b#t can obtain better res#lts in the end. %1. %2.
)owever$ job performance is more than the
ability of the employee alone. According to (room >10%4? an employee=s performance is based on individ#al &nowledge$
factors$
namely
eperience
and
personality$ abilities.
s&ills$ !ome
researchers even arg#e that a person=s personality has a more speci+c role in job performance. )owever$ according to vario#s researchers$ it is not what performance eactly means$ b#t how it is composed and how it is meas#red. %3.
%4.
(room=s >10%4?$ )#nter L )#nter=s >1094?$ )#nter=s
>109%?$ etc. res#lts are evident. Hamely$ 7ob performance can be divided in personality$ s&ills$ &nowledge$ eperience and abilities. !ome researchers even arg#e that personality has a more speci+c role in job performance. )owever$ according to ;ishop >1090? and others$ job performance contains a problem, namely the meas#rement of performance. %5.
//! %-.
Measuring job performance
'n most organisations performance is meas#red by
s#pervisory ratings$ however these data are not very #sef#l since they are highly s#bjective. 'n most jobs an objective meas#re of prod#ctivity does not eist. This ma&es it even harder to meas#re performances objectively. According to "erry
and
"orter
>1092?$
the
performance
of
many
employees probably will be meas#red despite the lac& of availability of generally accepted criteria. %9.
't is stated before that some researchers arg#e that
a person=s personality plays a more speci+c role in job performance. 't can be stated that job performance contains a problem, the meas#rement of it. 7ob performances are
commonly meas#red by s#pervisory ratings and those ratings are not perceived as objective. )owever$ it seems that there are alternative options to meas#re job performance, these are addresses in the net paragraph. %0.
&+!
0ptions for measuring job performance
objecti$ely -1.
;rea#gh >1091? states in his research that there
are fo#r di*erent performance dimensions on which employees are meas#red$ named D#ality$ D#antity$ dependability
and
job
&nowledge.
This
theory
combined with (room=s theory res#lts. )e designed the ro#te in which most employers can rate their employee=s prod#ctivity. )is theory is presented in +g#re. -2. -3. -4. -5. -%. --.
-9. -0. 9. 91. 92. 93. 94. 95. 9%. 9-. 99. 90.
0.
)#nters 7ob "erformance !cheme
01. 02.
According to )#nter learning the job is the &ey to job
performance$ and general cognitive ability predicts learning. Therefore general cognitive ability is the &ey predictor of job performance. Ieneral cognitive ability together with job &nowledge
indicates
job
performance
and
allows
the
employee=s s#pervisor to rate performance. According to )#nter this is a simpli+ed b#t an e*ective and objective way to meas#re employee performance. Mosti#& and ollmann >1090? add to the statement of )#nter that employees with good abilities in combination with s#Kcient eperience are twice as prod#ctive after two years and therefore learning the job is
indeed a &ey to performance. 03.
;#t
today
companies
don=t
depend
on
the
s#pervisory ratings alone$ they have started to implement the 3% degree feedbac& mechanism. 3% :egree eedbac& is a system or process in which employees receive con+dential$ anonymo#s feedbac& from the people who wor& aro#nd them. This typically incl#desthe employeeNs manager$ peers$ and direct reports.
04. 05.
/!
Chapter : #mployee moti$ation and
performance 0-. 09.
't is already arg#ed that managers need to motivate
employees to perform well in the +rm$ since the organisation=s s#ccess is dependent #pon them. )owever$ it is only later research that s#cceeded in establishing a positive correlation between employee motivation and job performance. 'n this chapter$ at +rst the relationship between employee motivation and performance will be eplained. After that$ it will be described
how
employees
can
be
intrinsically
and/or
etrinsically motivated to perform well. 't will appear that there are several options for intrinsic motivation and etrinsic motivation$ b#t etrinsic factors alone will not lead to an increase in employee motivation. 00.
1++!
The relationship bet)een employee
moti$ation and job performance 11.
The
viewpoint
that
motivation
ca#ses
performance comes from h#man relations theory. The
relationship between employee motivation and job performance has been st#died for a long period. )owever$ earlier research co#ld not s#cceed in establishing a direct relationship between the two. Oet it seems that that the factors do inB#ence each other. The res#lts of their research indicate that the relationship
between
individ#al$
overall
job
satisfaction and individ#al job performance is more consistent than reported in previo#s researches >e.g. (room$ 10%4?. And )ac&man and 8ldham >10-%? arg#e that when employee satisfaction is added$ a circ#lar relationship is formed with performance$ satisfaction and motivation. The term satisfaction is also #sed by )er6berg >1050?, he arg#es that when intrinsic factors >motivators? are present at the job$ satisfaction is li&ely to occ#r as well as an increase in employee motivation. 't is also stated that wor& performances are dependent #pon the individ#al=s level
of
motivation,
the
individ#al=s
level
of
motivation can be intrinsically and/or etrinsically based.
't
is
also
arg#ed
that
certain
job
characteristics are necessary in establishing the relationship
between
employee
motivation
and
performance. 12. 13.
)ac&man and 8ldham >10-%? de+ned +ve job
characteristics$ which are based on the Two@actor Theory from )er6berg >1050?. Those characteristics are s&ill variety$ tas& identity$tas& signi+cance$ a#tonomy and feedbac&. The res#lts of their st#dy indicate that employees who wor& on jobs scoring high on the +ve characteristics$ show high wor& motivation$ satisfaction
and
performance >;rass$
1091?. )ac&man and 8ldham >10-%? concl#de that employees can be motivated thro#gh the design of their wor&, they arg#e that by providing certain intrinsic and etrinsic factors an employee can be motivated to perform well. 14. 15.
The
+ve
job
characteristics
>s&ill
variety$
tas&
identity$ tas& signi+cance$ a#tonomy and feedbac&? can bring the employee to three Ecritical psychological statesF$ namely
>1? eperienced meaningf#lness of the wor&$ >2? eperienced responsibility for o#tcomes of the wor& and >3? &nowledge of the act#al res#lts of the wor& activities.
And according to
)ac&man and 8ldham$ the three critical psychological states will lead to high motivation$ satisfaction and performance. 1%. 1-.
)ac&man and 8ldham >10-%? also arg#e that the
growth need strength of the employee has a role in the relationship, employees who have a high need for personal growth and development will respond more positively to a job high in motivating potential than employees with a lower need for growth strength. According to them$ growth need strength has a moderating e*ect on the relationship. They state that personality di*ers in etent to how employees react to intrinsic and
etrinsic
val#es. Their
research
concl#des
that
for
introverts etrinsic factors are more important$ and etraverts are more intrinsically motivated. Therefore introverts are less satis+ed than stable individ#als and perform to a lesser etent. This concl#des that there pres#mably also a relationship between personality and performance eists. 19.
10.
)owever$ the eact relation among
motivation$
satisfaction and performance is not yet de+ned. "etty et al. >1094? arg#e that the relationship is circ#lar and starts by a high performance ca#sing satisfaction. According to them$ when the employee performs well on a partic#lar tas&$ satisfaction will occ#r. ;eca#se of the internal satisfaction of the employee$ the employee is motivated to try to perform well in the f#t#re. The circ#lar relationship between performance$ satisfaction and motivation is shown in +g#re below. 11. 111. 112. 113. 114. 115. 11%. 11-.
119.
According to )ac&man and 8ldham >10-%? the res#lt
is Ea self@reinforcing cycle of wor& motivation$ powered by self@ generated rewards >satisfaction?$ that will contin#e #ntil one of the three psychological stages is no longer present$ or #ntil the employee no longer val#es the internal rewards >satisfaction no longer occ#rs? form his/her good performanceF. )owever$ )ac&man and 8ldham=s >10-%? theory is based on intrinsic
factors beca#se they arg#e that an increase in etrinsic factors does not lead to an increase in performance. )owever$ other research s#ggests that the self@reinforcing circle also co#ld wor& for etrinsic motivators. 110.
't can be concl#ded that the relationship between
employee motivation and performance seems to be circ#lar. !tarting by a high performance ca#sing satisfaction$ this increases the employee=s motivation to try to perform well in the f#t#re. This circ#lar relationship can be ca#sed by providing opport#nities for high scores on the +ve job characteristics, s&ill variety$ tas& identity$ tas& signi+cance$ a#tonomy and feedbac&.
And
according to
other
research the circ#lar
relationship can also ca#se by certain etrinsic factors. )owever$ as described in chapter three$ the employee m#st also have the abilities to perform well. 'n the net paragraphs it is eplained how
employees
can
be intrinsically and/or
etrinsically motivated to perform. At forehand m#stbe stated that in organisations it is li&ely that both intrinsic and etrinsic motivators are present for most tas&s that people do in their wor& 12.
1"1! 1""!
Moti$ating employees intrinsically to
perform 123.
An organisation has to be able to provide high
scores on the +ve job characteristics. 'n case the organisation does
not
s#cceed
in
this$
the
cycle
of
performance$
satisfaction and motivation will no longer be a reinforcing b#t a downward cycle.
)owever the type of personality of an employee
also has a role in the employee=s level of intrinsic motivation, this seems to be related to the level of commitment of an employee. 12%. 12-.
'n
concl#sion$
it
can
be
arg#ed
that
organisations need to score high on the +ve job characteristics
>s&ill
variety$
tas&
identity$
tas&
signi+cance$ a#tonomy and feedbac&?. This is order to
intrinsically
motivate
their
employees
for
generating a high performance. )owever$ it also seems
that
employee
the
have
personality a
and
moderating
ability e*ect
of on
an the
relationship.
1"%!
Moti$ating employees e,trinsically to
perform 120.
't is arg#ed by Amabile >1003? that there eist
n#mero#s jobs which are p#rely etrinsic motivated. )owever$ when ta&ing )er6berg=s >1050? Two@actor theory into acco#nt$ it is arg#ed that etrinsic factors >or hygiene factors? cannot ca#se motivation or satisfaction$ so it is li&ely that those factors are not ca#sing high performances. )ac&man and 8ldham >10-%? arg#e that an ecl#sively increase in etrinsic factors will not lead to an increase in performance. )owever$ it seems that there are some etrinsic factors which can >in combination with intrinsic factors? lead to higher performances. 13. 131.
trinsic motivators are not a logically inherent part
of the wor&. !he states that they are intended to control the performance of the wor&. amples are promised rewards$ praises$
critical
feedbac&$
deadlines$
s#rveillance
and
speci+cations on how the wor& needs to be done. An eample of a p#rely etrinsic tas& is doing formal performance reviews ofemployees, that=s a
tas& which
is barely
intrinsically
motivated. A person who is etrinsically motivated can be described as an employee who perceives his wor& orientation as Ea jobF, this &ind of wor&er performs his job for the pay at the end of the month. 132. 133.
!alary is an etensively researched etrinsic
motivator. !ince it is labeled as an etrinsic factor$ it is not perceived as
ca#sing motivation in the
wor&place by )er6berg. )owever recent research of Ansar$
antor
L
!par&s
>100-?
res#lted
in
considerable evidence that higher wages directly a*ect job performance. They also arg#e that in the case that labo#r t#rnover is costly for an organisation >beca#se of severance$ training and hiring costs?$ +rms co#ld pay higher wages to decrease D#it rates and save on t#rnover costs. They arg#e that pay is probably the most important motivational factor. )owever it is arg#ed that pay can decrease intrinsic
motivation. ample is HI8
't is arg#ed by researchers that etrinsic factors
do not contrib#te to an increase in performance. )owever$ it seems that for some forms of etrinsic factors the opposite is tr#e. 't is stated that salary$ commitment to s#pervisors
and
peers and job
sec#rity can increase job performances. Thro#gh providing one or more of these factors a higher performance is established$ therefore the employee gains eternal satisfaction and is motivated to perform well in the f#t#re. ;#t managers sho#ld be caref#l with etrinsic motivational factors$ since in some cases they can decrease intrinsic motivational factors. 13%. 13-. 139. 130. 14. 141.
142. 143. 144. 145. 14%. 14-. 149. 140. 15. 151.
ig#re 'ntrinsic and etrinsic factors leading to a high performanc
152.
1-*!
Chapter -: Conclusion
154. 155.
This chapter will give an answer to the problem
statement of this thesis. The problem statement is &nown as to what extent can the dierent types of employee motivation inuence theperformance of employees at the workplaceC 'n the +rst paragraph the concl#sions of the literat#re research will be provided$ after that the disc#ssion points are described and in the last paragraph some managerial implications will be given. 15%.
1-&! 159.
Conclusion
At +rst it can be concl#ded that it is indeed possible
to motivate employees to perform well for an organisation and that is a critical tas& for mangers. 't seems that there eists a self@reinforcing circ#lar relationship between the performance$ satisfaction and motivation of an employee, an employee achieves a high performance$ therefore internal satisfaction arises and the employee is motivated to perform well in the f#t#re. 't is stated that a high performance can be reached
when the organisation provides certain job characteristics. 150. 1%.
!econdly$ it is stated that employees can be
both intrinsically
and
etrinsically
motivated
to
perform well. ost jobs are even both intrinsically and etrinsically motivated >Amabile$ 1003?. 't can also be concl#ded that intrinsic factors can contrib#te in a greater etent to employee motivation than etrinsic factors. !ome researchers even arg#e that an increase in etrinsic factors solely does not lead to an increase in performance. esearch proved that to intrinsically motivate employees$ the organisation needs to score high on +ve job characteristics s&ill variety$ tas& identity$ tas& signi+cance$ a#tonomy and
feedbac&.
And
to
etrinsically
motivate
employees$ the organisation needs to score high on salary$ commitment to s#pervisors and peers and job sec#rity. These job characteristics together with the ability of the employee provide the opport#nity for a high performance$ which is the start of the self@ reinforcing circle >)ac&man L 8ldham$ 10-%?. 't is
important
that
managers
provide
all
job
characteristics$ since that will lead to the highest employee performance. )owever$ it m#st be arg#ed that this relationship is not in+nite, it co#ld be that the employee does not longer derive satisfaction from his performance or that one of the three psychological stages is no longer present. Therefore organisations m#st ma&e s#re that performances can be contin#o#sly improved. 1%1. 1%2.
At last$
it can
be arg#ed that there
are
n#mero#s other ways to increase the performance of employees
in
organisations
>e.g.
diversity$
leadership$ etc.?$ th#s management sho#ld not foc#s on motivation solely. ;#t it can be concl#ded that partic#larly intrinsic factors can greatly contrib#te in increasing employee prod#ctivity. 1%3.
1/! 1%5.
2iscussion
)owever$ not all +ndings in the available literat#re
were complementary. !ome researchers made contradictory
statements on the fact how etrinsic motivators can contrib#te to motivation and performance. .g. on the topic of how salary inB#ences employee motivation, some researchers arg#e that salary does not increase and others arg#e that it is the most inB#encing motivator for employees. An eplanation co#ld be that not all researchers follow )er6berg=s >1050? theory of motivation
or
that
researchers
conf#se
satisfaction
and
dissatisfaction. 1%%. 1%-.
There also is some conf#sion noticeable at the topic
of how motivation inB#ences performance. arlier research cond#cted by (room >10%4? res#lted in the concl#sion that employee motivation and performance were #ncorrelated. )owever$ later research by "etty et al. >1094? concl#ded that there indeed is a relationship$ by #sing the 15 researches (room >10%4? #sed and 2 more recent researches. According to "etty et al.>1094? the di*erentiated res#lts were possibly d#e to the fact that in (room=s research 4P of the variance of correlations across the st#dy was d#e to sampling error and the other %P to a combination of error of meas#rement$ restriction in range$ other artifacts$ or real di*erences between
some of the st#dies. "etty et al. >1094? overcome these problems by cond#cting their research in a more scienti+c manner. 1%9.
1/! 1-.
Managerial implications
'ntrinsic factors can lead to motivation when they
are present in the organisation. )owever$ etrinsic motivators$ when they are not present in the organisation$ can lead to de@ motivation of employees. Therefore it is important that managers address both intrinsic and etrinsic motivational factors. anagers sho#ld not ma&e a selection of etrinsic motivational factors$ since a single etrinsic factor can ca#se dissatisfaction. And managers also need to ta&e into acco#nt the e*ects etrinsic factors can have on intrinsic motivation. 1-1. 1-2.
!econdly$
it
is
arg#ed
by
researchers
that
personalities of employees react di*erently to motivational factors. !ome persons are more intrinsically and others are more
etrinsically
motivated
and
this
ca#ses
di*erent
performances among employees. 't is generally accepted that an employee=s performance is based on individ#al factors$
namely
personality$
s&ills$
&nowledge$eperience
and
abilities. anagers need to ta&e these di*erences into acco#nt when hiring and motivating employees. 1-3. 1-4.
At last$ managers sho#ld be caref#l when
meas#ring employees= job performances. 'n most organisations job performances are meas#red by s#pervisory ratings$ however these ratings are highly s#bjective. 8bjective meas#rements do eist$ b#t they are scarce. Therefore it co#ld be diKc#lt for managers to see the act#al res#lt of their attempts to motivate
employees
to
perform.
:esigning
an
objective way to meas#re job performance is also an option for f#t#re research$ since it co#ld be very helpf#l for organisations.
