Impact Of Motivation On Employee Performance: A Comprehensive Literature Review

Motivation Theories and their Impact on Performance Management

One of the most efficient methods of maximizing the performance of the employees of an organization or a group includes the process if increasing the motivation of the employees in various ways. There are multiple number of theories, ideas and proposed methods to increase the motivation of the employees in order to achieve the desired results the organization wants to achieve through its employees.

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The goal of every organization is to increase the productivity and maximize the revenue. This goal is to be monitored by the top management that the employees are working collectively in a way that the final goal of increased productivity and revenue generation can be achieved. Increased employee motivation is one of the primary reasons why the company may achieve a noticeable increase in performance. The total organization performance depends upon the individual employee performances. The collective performance of all the employees result in boosted organizational performance.

This paper mainly aims at understanding the relationship between motivation and employee performance and how various researches have highlighted the same issue. A number of research papers are sited so that the final result can be drawn.

All the important companies are trying their best to maximize employee motivation as much as they can, they are using various monetary and non-monetary benefits in this regards. This has led to the separate drafting of new HR policies that are dedicated towards employee motivation often in very unique ways.

There are two kinds of motivational theories, content motivation theories and process motivation theories. The content motivation theory depends upon what are the contents of the motivation theory and the process motivation theory depends upon the “How” factors, mainly about how the human beings can be motivated in their organizational context. These can be further explained by stating that the content theories mainly describe what are the ingredients and components that can be utilized within the organizational context so that the employees are motivated to come to the workplace and give their best and be more productive. This is the content theory of motivation that gives importance on the why factors of the motivation, why will a person be interested in coming to the workplace and what are the factors that will draw that particular person to the workplace and make him or her perform to the best of his productivity. The various content theories are Maslow’s needs hierarchy, McClelland’s achievement motivation, Alderfer’s ERG theory, and Herzberg’s two-factor theory.

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The other kind of motivational theory includes the process theory. The process theory is mainly how the employee may be motivated in various ways in the workplace setting. This is based on the process of motivation. The processes that may be followed in this regards are decided by the management by going through various case studies and by analyzing the need of the employees. The various kinds of process theories are Skinner’s reinforcement theory, Adam’s equity theory, Victor Vroom’s expectancy theory and Locke’s goal setting theory

It is a fact that a single motivation theory is not enough to explain the motivational needs of a person. There may be multiple number of complicated reasons that may lead to a person not being motivated enough in workplace or losing his or her productivity in the course of time.

Content Motivation Theories

One of the important aspects that the companies should keep in mind that money is not the only motivating factor that drives a person to work productively. There are various other factors that acts as important factors that motivate a person in a number of ways. These may include encouraging the employees through compliments, non-monetary perks, helping in boosting self-actualization, giving job security to the person, and making the person feel to be a part of the organization through love and warmth.   

The first among the content theory is the Maslow’s Hierarchy Needs. The Maslow’s hierarchy of needs, is one of the most established and famous theories of motivation (Robertson 2016). It was formulated in the 1950s. The main summary of this theory is to condense the various needs of motivation into five categories. These are categories into hierarchy, and according to the nature of needs. The first is the psychological needs which are the basic needs of a person that helps in the existence of the person. This includes the basic necessities like water, shelter, food and capacity to sleep. These are the basic necessities for the individuals to survive. It is stated that the normal activities of a person cannot be continued and the mind cannot function normally if any of the above factors are not available (Lester 2013). Therefore to motivate a person on a basic level it is important that these needs are taken care of. The next comes the factor of safety and security. This is a notch higher than the stage of psychological needs. These are the factors that ensure that a person lives a comfortable life (Jerome 2013). Constitutes of Income security, employment and a comfortable place to stay and support the family. Next comes the feeling of belongingness and love which is necessary for a person to thrive properly in a social setting. These are the motivating factors that helps a person properly develop and thrive. The next two factors in the Maslow’s hierarchy are Self-esteem and self-actualization. These are related to respect of the individual in the workplace and in the society at large and how the individuals are realizing their own potential and abilities supported by the workplace (Lazaroiu 2015).

Another motivational theory in this regards is the Alderfer- ERG theory. The ERG refers to the Existence needs, relatedness needs and the growth needs. The three classes of needs are existence, relatedness and growth (Turabik and Baskan 2015). The class of existence can be related to Maslow’s psychological and safety needs. Relatedness is alike the belongingness of Maslow’s model and growth is alike the self-esteem and self-actualization of Maslow.

Another important theory in this regard is the McClelland- Need for achievement, affiliation and power theory which was formulated in the 1960s. The researcher mainly described the human motivators (Wahba, M.A. and Bridwell 1976). McClelland argued that the human beings are driven by some motivation factors and these factors are acquired and learned over time, therefore this is also known as “Learned Needs Theory”. The three motivating factors discussed in this context do not have dependence on gender, age or any other physiological factors (McClelland 2015). The difference between Maslow’s model and McClelland’s theory is that Maslow gives emphasis on satisfying the existing needs however on the other hand McClelland’s theory depends on the experiences, education and culture. The three motivators in the case of McClelland are achievement, affiliation and power. Achievement is the desire to accomplish or get some mastery and competence. Affiliation is the desire of a person to be loved and belonged. Power is the desire of a person to have some control on the work that a particular person himself or herself doing. Hertzberg has formulated his two factor theory (Uduji and Ankeli 2013). This theory states that some factors are there, which are the motivating factors that causes satisfaction in the workplace and there are various factors which are the causes for dissatisfaction in the workplace. The theory argues that the opposite idea of satisfaction is not dissatisfaction but no satisfaction. Remuneration, environment of the work, working conditions and job security which are also known as hygiene factors, and when these are unsuitable the employees will become demotivated. Motivating factors on the other hand are those which increase the satisfaction of job. The motivational factors are helpful in increase the level of performance of the employees. Therefore it can be stated that Herzberg’s theory has two factors, the Hyegine factor and the Motivating factor. The hygiene factor has two levels, dissatisfaction and no dissatisfaction. On the other hand the motivating factors also has two levels, no satisfaction and satisfaction. The five motivating factors or factors of job satisfaction are achievement, work, recognition, advancement and responsibility. On the other hand the 5 hygiene factors or factors of job dissatisfaction are company policy and administration, salary, supervision, interpersonal relationships and working conditions. These are the various factors that has been used by Herzberg.

Process Motivation Theories

The other set of motivational theories that can be used in this regards is the process theory of motivation. The process theory of motivation consists of the various factors such as the Skinners reinforcement theory, Vrooms expectancy theory, Adam’s equity theory, and Locke’s goal setting theory. The Reinforcement theory which is composed by Skinner states that the consequences can from behavior (Skinner 2014). It is often more obvious that the employees would endeavor in performing well when they get rewarded. It is the natural consequence that a person is more interested in repeating their successes when they are getting rewarded. Rewards ensure that the successful activities are repeated. One example can be given of the students who get good results or who are rewarded, this is a common trend that has been seen to be happening all over world. On the off chance that an understudy gets positive verbal criticism and a decent evaluation for his test, this fortification supports the execution of the conduct to repeat. On the off chance that the educator doesn’t tell definitely what he expects, the encouraging comments can drive the conduct nearer to the favored. For instance, when an understudy who is typically late to class gets positive input when he touches base on time, the understudy turns out to be increasingly prompt. Encouraging feedback rouses to get the foreseen support of required behavior. Punishment can be undesired fortification, or fortify undesired conduct. For instance, if an understudy is in every case late to class and subsequently he gets negative verbal input and furthermore dependably needs to clean up the classroom toward the day’s end, for this situation the unfortunate conduct is strengthened with a bothersome reinforce. The discipline decreases the inclination to be late. As evident from the hypothesis, uplifting feedback is comparatively more improved a persuasive strategy as compared to discipline. It is because discipline attempts to discourage the unwanted conduct. It also does not offer an elective conduct. On contrary to this, it makes terrible sentiments. It also produces a mind with pessimistic frames toward the movement. In addition, those who gives the discipline do stifles the conduct. However, they do not dispense with it for a longer period of time. It is to be noted that when certain conduct is put to dreary support, it helps in the disposal of the fortification. This will hamper the inspiration needed to deal with such conduct. Therefore, this can be said that it is much better not to give away a reward inevitably. Notably, protection at the work place often happens on an unpredictable or incomplete support plan. This takes place when reactions are not rewarded with compensation. The support hypothesis has also been found to be incorporated with many other inspiration speculations also. Most importantly, reward must be addressing to somebody’s desires, and issues. It must also be connected impartially to make it a reliable approach.

The expectancy theory says that an individual acts in a certain way and select the specific behavior over the many others. This behavior carry an unexpected result attached to it. Therefore, Victor Vroom’s (1964) expectancy theory communicates how individuals normally look over different activities (Parijat and Bagga 2014). Vroom defines inspiration as a process, which administers decision making and considers it a willful conduct of elective types. The fundamental basis of this hypothesis conveys that inspiration comes from the beliefs. It further adds to it by saying that choices will expectedly have their desired outcomes. Three elements (SUCIU, Mortan and LAZ?R 2013) can be evaluated to dictate the inspiration needed to take part in a movement. These three variables are Expectancy, Valence, and Instrumentality. Expectancy, – it communicates a man’s conviction about the results and says that these will be obtained highly by giving the task a hard work. In the event that one who works harder, will have the better execution. Instrumentality – it says that that there is an association between movement and objective. It means those who perform well will be rewarded. Valence – it calculates the value, which people give to their rewards.  These rewards are the consequences of their achievement.    

Factors Affecting Employee Motivation

The equity theory says that individuals should be dealt with impartiality, and that they should get what they deserve for their efforts and contribution (Tseng and Kuo 2014). Adams (1965) recommended this theory that depends on the Social Exchange theory. The theory says that individuals contrast their commitment against different variables such as work, the advantages, and activities’ expenses.  These advantages are related with individuals’ contribution to it. According to this theory, the moment individuals observe that there are unjust between data of different individuals, they can opt to diminish the inequity. It further says that at the work place, the laborers contribute with different activities. For example, encounter, instruction, vitality, exertion, and hope to get a few results. Results for example include remunerate, compensation, verbal acknowledgment, advancement, and intriguing and testing work.  These all be in equivalent sums. The equity theory is suitable to both schools and the work place. For instance, inequity exists there when similar oral test rewards two understudies with the distinctive credits. Considering this to be the situation, it can be said that the understudy that who is wrongly rewarded may lose his/her inspiration to learn. The individual may also create a necessity for the instructor to give him/her a superior check. They can also impact on the observation made by the reference individual’s execution. At the school level, it can be demotivating for other students if understudies are given the undue leverage. It is never ethical that somebody who hardly studies or performs is superior to many others in regards to checking of their works. Inequity can be considered to be in direct proportion with the pain felt by individuals who are not blessed with partiality. Indeed, the rate of inequity will result in more pains to the disadvantaged group of students. This will also affect the overall result of the institution.

Conclusion

It can be stated from the above discussion that motivation is very important to manage performance in the organizational context. Performance management is a key to an improved performance in organizations that a particular organization endeavors to achieve to maximize the productivity of the individual employees. And motivation is very important in this regards. Motivation is increasingly becoming a part of various performance management practices in organizations. It is, therefore, important to take the help of theoretical fundamentals to be able to appropriately deal with the range of motivating factors. The different motivational theories are formulated to achieve similar or different goals. This is the reason that the organizations must have a separate body to understand and apply the motivational theories in the organizational context and to make it a successful venture.

There are numerous motivation theory such as those mentioned in the “Part A” of this assignment. These theories are significantly different to each other in regards to their approach to create motivation into employees. These theories can potentially influence the workplace behaviour provided that it is implemented thoroughly in organizations. This is one of those things that organizations can utilize to differentiate their products and services from their competitors.

Critically Analyzing the Role of Motivation in Strategic HRM

The main purpose of this part of the assignment is to analyze how motivation theory or theories are being applied in Primark. Primark is an Irish fast fashion retailer founded in 1969. Primark has constantly been winning the employer of choice recognition (Primark 2018). An organization carrying such reputation in market is certain to face the heat in its HR related services. It is, therefore, of key importance to know whether Primark has managed it well or it needs some improvements.

Motivation theory seems to have had a good association with the HRM at Primark. Primark understands that its mounting reputation is also creating future challenges for the HRM. The HRM at Primark faces the pressure to keep its reputation fly high as that of present. This is why the company has so far been able to attract and retain talents with its superior HRM strategies. The HRM strategy at Primark is underpinned from Hertzberg’s Two-Factor Theory. To understand whether this is true, understanding what the theory says is of primary importance. The theory identifies two factors such as “Motivator” and “Hygiene” factors. Motivator factors when supplied will yield motivation into employees. Similarly, Hygiene factors when inadequately supplied will lead to dissatisfaction in employees (Alshmemri, Shahwan-Akl and Maude 2017).

In context to Primark, the company strives to provide the best culture to its employees. This is also one of the future goals of the HRM at Primark. With the future workforce going to be largely participated by Millennials, this is indeed a good move to ensure that bench strength is adequately occupied (Latkovikj, Popovska and Popovski 2016). In addition, the HRM has planned to work collaboratively with the marketing team to promote the organizational culture. In doing so, the company will brand itself as an employer providing best workplace culture to employees of all generation. This is a good move considering that generation gap also contribute to cultural conflicts at workplace (Yi et al. 2015).

Other than these, HRM at Primark offers salaries that are best in industry. Salaries are subject to annual review. Employees are provided with structured training programs. Every single employee gest a promotional opportunity. The HRM also offers a contributory pension scheme. In addition, it also matches the industry’s standards for providing leave, and health benefits. Importantly, operations at Primark are conducted over flexible shift timings. This is good to suit the lifestyle of innumerous people working for this company (Primark 2018).  

From the above discussion, it is evident that the company strives to meet Hertzberg’s Two-Factor Theory. The HRM in this company is able to supply the motivator factor in the form of career progression programs, and flexible shift timings. It is also being able to supply the hygiene factors by offering the industry’s best salary structure, and also meeting the industry’s standard for leave policy, health benefits, work-life balance, and others.

Strategic Human Resource Management at Primark is challenged from rising needs for using emerging technologies to address to several of HRM works like recruitment and selection, employee rights and ethics, training and development, knowledge management, and communication (Nasir 2017). The HRM has been superior so far in terms of appraising its contribution to the company’s success. However, it now faces the challenge from the changing dimension of the global HRM. The changing workforce and its culture are the additional pressure on the HRM. They have now the expanded duties where they will be needed to establish their collaboration with the operations, and marketing teams. Primark already follows the e-recruitment system (Primark 2018). Now, there is a need to look towards more such options to take the leverage from opportunities. The HRM should also look for decentralized work sites. However, it becomes difficult then to brief and train the managers in decentralized system. On the other hand, a decentralized work site helps to communicate much faster with managers and employees at the different decentralized stores than a centralized (Nurmandi and Kim 2015). The HRM at Primark will have a task to promote a decentralized work system. Additionally, the HRM team at Primark will be needed to identify and design strategies to deal with the challenge to communicate with managers in a decentralized work system.

Conclusion

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