Significance of Employee Motivation to Organizations
Introduction
to Motivation
Motivation
is the strength that boosts and directs the behavior of a person sustainably.
The word ‘Motivation’ is derived from a Latin word for movement (movere)
(Armstrong, 2010). People are motivated when a series of
actions occur which will achieve their goals coupled with valued and expected
rewards which satisfy their needs and wants (Kaur, 2013). Further, motivation
is also based on the set of goals of an individual and the avenues/ways where external
parties try to change their behavior. The concept of motivation refers to
internal factors that impel action and to external factors that can act as
inducements to action. (Locke and Latham, 2004:388).
Motivation is segregated in to 3 components according to Arnold et al 1991 cited in Armstrong, 2006
1)
Direction – what the individual attempts to do to attain
the goal.
2)
Effort – the extent that the
individual is trying to attain the goal.
3)
Persistence – the tenor that a person
keeps on trying.
Types
of Motivation
Intrinsic Motivation
When individuals feel that their work
is important, with positive discretionary behavior, autonomy, where they decide
to make an effort with opportunities for achievement and advance is Intrinsic
motivation. It is not created by external factors such as monitory benefits (Sandel, 2012). Following are five core
characteristics of task that result in intrinsic motivation, skill variety,
task identity, task significance, autonomy and feedback (Armstrong, 2006).
Extrinsic Motivation
Extrinsic motivation is the process
of actions taken by the organization to motivate people/employees (Oduka, 2016). These actions are Rewards by way of
incentives, increase of salary praise and promotions as well as punishments by
way of reduction / withholding of salary, criticism and disciplinary action. Above
motivators could achieve immediate and powerful results, however, will be short
term (Armstrong, 2006).
Theories of Motivation
Theories were built to identify/understand
the processes that affect Motivation. These Theories are segregated in to three
main areas namely Instrumentality, Content and Process. Instrumentality theory is
a basic explanation on how motivation works whilst Content (Needs) and Process
theories are well elaborated and detailed (Joseph, 2015), however which carry
their limitations. Following are some of
the popular theories (Armstrong and Taylor 2014).
Maslow’s Hierarchy of Needs
Based on the basic human behavior on
unlimited needs, once a lower need is satisfied the next highest becomes most
wanted need and the individual’s attention is turned towards satisfying the
next higher need (Armstrong and Taylor 2014).
Given below are five main need categories that apply to people/employees
in general as per above theory.
- Physiological needs.
- Safety needs
- Love and belonging
- Esteem needs
- Self actualization
Figure 1.0 : Maslow’s hierarchy of
needs
Source: Adopted from Joseph,
(2015)
This model could be applied to the organization
that I work for (A leading Commercial Bank in Sri Lanka) and each stage is
further elaborated on how the organization motivates its employees;
Physiological needs
These needs are the basic and initial
needs of the employees (Jerome, 2013). The organization provides a salary which
is adequate to fulfill the basic needs. This is the main factor which motivates
the employees to stick to the organization as it is a decent salary when
compared to the industry norms. Apart from the above it is followed by numerous
allowances such as, cost of living allowance for lowest level coupled with
housing loans, furniture loans, festival advances and hospital insurance cover to
upgrade the living standards. Further, for the middle level staff is provided
with fuel allowance, telephone allowance, entertainment allowance.
Safety needs
These needs refer to the secondary
needs once the basic needs are met (Joseph, 2015). These needs are mainly on
job security and training needs. Due to the continuous change in technology and
upgrading of operational standards the staff will be on continuous learning and
development process. Bank will identify the skill level and the experience and
will provide the required level of training and development for their personal
and career development. These training processes are on the job training, in
house training programs done by the experienced staff within the organization as
well as outsourced personnel in order to continue upgrade the levels of staff
in all grades.
Love and belonging
When the safety needs are met, the
staff member will feel confident to move forward with the assigned work and
feel as a part of the team of the organization (Jerome, 2013). It is further
elaborated by good relationship with the staff and superiors and the staff
member is accepted by the team. In this connection, the bank arranges
gatherings, social events to improve the cohesiveness among the staff. Some of
these events are annual sports day, children’s party held at the end of the
year for the whole family of the staff, bank’s annual quiz programme.
Esteem needs
Once love and belonging need is
fulfilled the staff member participates in decision making and requires self-respect
(Mansoor, 2012). In this connection, the bank recognizes the staff member for
promotions with more benefits and will delegate autonomy. Hence, staff member
will be categorized as a member of the Corporate Management Team and will be
overlooking on a major segment of the organization and will be able to
influence the subordinates at a larger scale.
Self actualization
This is the last level of need could
be achieved and the topmost need of the hierarchy. This refers that the
staff member is self driven and is capable in molding up to fullest potential
with steady improvement of soft skills (Kaur, 2013). These employees are valuable
resources to human capital of the organization. Hence, bank will invest more on
these types of employees and will be deployed as advisors of the organization.
Herzberg’s Two Factor Model
According to Two Factor Model, it is
based on job satisfaction and dissatisfaction (Omollo, 2015). In this
connection, the wants of the employees segregate in two components. First
component is about developing an employees’ career as well as the personal
growth. These factors are known as ‘Motivational Factors’ such as, Recognition,
Achievement, Advancement, Career growth, Responsibility, Job challenge (Dobre,
2013). Second component resembles the basic needs to fulfill the Motivational
Factors. These factors are known as ‘Hygiene Factors’ such as, Working Conditions,
Salary and Benefits, Supervision, Job Security (Asim, 2013). These factors do not boost the individual to
attain high level of job satisfaction and extra performance of the job.
However, these factors prevent dissatisfaction and poor job performance (Armstrong
and Taylor 2014).
Benefits of Employee Motivation to
the Organizations
A motivated employee is an asset to
the Organization based on their higher level of performance and contributes the
following benefits to an organization (Armstrong, 2008);
Improvement/increasing of the efficiency
levels of employees
The standard of an employee does not
depend merely on qualifications and abilities. Hence, the employee should fill
the gap between ability and willingness in order to attain the best of their
work performance. This position will lead to increase in productivity, reduction
in cost of operations and improving overall efficiency levels in the work place.
Transformation of human
resources into action
Human resources could be utilized to
its maximum, through Motivation. Any Organization requires physical, financial
and human resources to achieve the set goals. The resources could be utilized
to the maximum by building willingness within the employee to accomplish the
goals. Hence, it is evident that
motivation helps organizations in capturing the best possible utilization of
resources.
Motivation is the main factor that
leads to employee satisfaction. This could be directly coupled with incentive rewards
plan which is elaborated by monetary and non-monetary incentives, Promotion
opportunities for employees, disincentives for inefficient employees. Reduction
of industrial dispute and reduction of unrest in employees, thereby embracing
the change without much resistance.
The goals of an organization can be
achieved only when the maximum utilization of resources, a co-operative work
environment and all employees work towards a given goal (Goal driven). Further,
goals could be achieved based on co-ordination and co-operation, which could be
obtained through motivation.
A stable work force is essential to
the organization in terms of maintaining an unblemished reputation and goodwill.
The loyalty will remain with the employees when they are considered / accepted
as a part of the team as they are the main asset to the organization.
Steps that Organizations could
contemplate to increase motivation (practical approach)
As discussed above, well motivated
staff will lead the organization to greater heights. The organization that I
work for is a leading commercial bank in Sri Lanka. It is observed that the
organization has adopted Needs theory and two factor theory and the following
steps have been taken to motivate the staff (Source - Annual Report - HNB PLC, 2017);
-
Nurturing a happy and engaged team
Strong HR policy frame work and well governed systems and
processors are in place to create an inspiring and motivated team by providing
salary and allowances to meet the Physiological needs.
-
Strategic talent management
Delivering training programmes by covering 100% of the
employees by providing 27.7 training hours per employee as an average. Diverse
long term engagement of training sessions to take up various roles which will
meet the safety needs of the employees.
-
Creating an inclusive work place
Introducing survey on employee satisfaction by external
parties (unbiased) and appointing of exclusive management teams to resolve employee
concerns. Hence, love and belonging of the employees will be met. On the other hand the two factors of
satisfaction and dissatisfaction of the staff will be addressed.
-
Rewarding excellence
The organization has adopted strong
performance management systems to measure the extent of employee performance
and there-by to reward and for recognition of employees. These measures will
meet the Esteem needs of the hierarchy which is the highest attainable need for
a working employee of the organization.
Conclusion
Motivation is a key factor which to
leads job satisfaction in an organization. However, people will be motivated
due to fear of punishments as well (Armstrong, 2006). Hence, motivation could
be a two process. In today’s context
most of the organizations adopt high performance concept by having the
foundation for an open and creative culture which is a people-centered and
inclusive, where decision making is transparent (communicated and shared among
the organization), investing in human capital by training and development,
integrity and acceptance with flexible working environment (Vance, 2006).
Nevertheless, measurable performance driven by targets, may lead to motivation
through fear, unless same is benchmarked and the processes to be under best practice
and best fit (Armstrong, 2008).
List
of References
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