Impacts of Employee Motivation on Organizational Performance and Employee Well Being

This essay analyzes the impacts of employee motivation on the organizational performance and employee well being. It discusses factors that benefit organizations from having motivated employees in place.

Running head: ORGANIZATIONAL BEHAVIOR
Organizational behavior
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Author note

1ORGANIZATIONAL BEHAVIOR
Introduction
The current business state of affairs demands effective and efficient internal business
management and processes. This is due to the reason that skill sets and expertise of the
employees create the differences among the organizations in the market and it determines the
organizational effectiveness and performance. However, in order to maximize the performance
and productivity of the employees, it is important for the business organizations to ensure that
their employees stay engaged and motivated in their workplace. This is important due to the fact
that motivated employees will only show the organizational citizenship and commitment and will
help in enhancing the organizational productivity. On the other hand, motivated employees will
also be mentally strong and happy in their workplace and that will help to maintain the positive
and favorable environment in the organization.
This essay will critically analyze the impacts of employee motivation on the
organizational performance and employee well being. In order to do so, opinion and views of
different authors and academic journals will be used and evaluated.
Lower average cost
One of the major impacts of the employee motivation is the reduction in the average cost
of operation for the organization. This is due to the reason that motivated employees will be
more productive and they will perform better with the given resources. Thus, the business
organizations will have enhanced level of productivity with the same amount of resources
required. According to Dobre (2013), the more will be the level of the motivation for the
employees, the more will their eagerness to perform better in their workplace. This will lead to

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the increase in the organizational productivity in the long term along with increase in the
profitability for them.
However, on the other hand there are some other views also being given by some other
authors. According to Wani (2013), another major impact of employee motivation is reduction of
the job stress from them. This is due to the reason that employees will get motivated only if they
are being treated well in their workplace along with proper fulfillment of their requirement and
expectations. Thus, according to the author, motivated employees will have reduced level of job
stress in their workplace and it is having direct and positive impact on the well being of the
employees. The author has also stated that if the employees are having lower level of job stress,
then they will mentally be more happy and satisfied and the level of well being of the employees
will be more.
Low level of employee turnover
Another major impact for the employee motivation is reduction in the employee turnover
and low level of absenteeism. According to Ertas (2015), employee turnover and employee
motivation are inversely related to each other. This is due to the reason that if the employees are
motivated enough in their workplace, then they will less tend to leave their organization.
According to the author, the more will be the level of motivation, the more will be their level of
satisfaction and engagement that in turn will reduce the level of employee turnover. This is also
to be noted that with the lower rate of absenteeism and employee turnover, loss for the
organization will be less because there are huge cost involved in selecting and providing training
to the new employees. Thus, according to the authors, the more will be the level of employee

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motivation, the less will be their rate of absenteeism and turnover and more will be the
organizational productivity and profitability.
Lower employee oriented issues
In the current business scenario, issues with the employees are one of the major critical
factors for the contemporary business organizations. This is mainly due to the intra-
organizational conflict between the managers and upper level of management. Thus, according to
Shahzadi, Javed, Pirzada, Nasreen and Khanam (2014), if the employees are motivated enough
in their workplace, then there is likely to have no issues or conflicts with the employees. The
authors have also stated that motivated employees are less likely to have issues with their
managers and supervisors. Rather they will follow their superiors effectively and properly. Thus,
the chance or probability of emergence of issues among the employees will get lowered.
This can be concluded that the less will be the issues with the employees, the more will
be the effectiveness and productivity of the internal management of the organization. On the
other hand, According to Van Scheers and Botha (2014), less amount of conflict with the
employees also lead to the well being of the employees. This is due to the reason that the less
will be the conflict in the internal management, the more motivated will be the employees to
communicate with the internal stakeholders. This will lead to the mental satisfaction and
happiness among the employees.
Generation of innovative ideas
According to Allen, Adomdza and Meyer (2015), high level of motivation among the
employees in the workplace helps in generating innovative and creative ideas. This is due to the
reason that if the employees are motivated enough then they will be more encouraged to come up

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with new ideas in the organization. This leads to the availability of more diverse and different
ideas that further helps in enhancing the organizational productivity. The authors have also stated
that motivated employees leverage their skill sets and expertise to generate innovative ideas. This
helps the business organizations to initiate new strategies in the market and stay ahead in the
competition. On the other hand, if the ideas of the employees are being considered in the
organization, then they will be more engaged in their workplace and well being will be
enhanced.
Conclusion
Thus, it can be concluded that employee motivation is having majorly positive impacts on
the organizational performance and employee well being. In this essay, there are number of
factors being discussed that can benefits the organizations from having motivated employees in
place. It is also concluded that motivated employees not only enhances the organizational
performances but also increases the effectiveness of the internal management.

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Reference
Allen, M.R., Adomdza, G.K. and Meyer, M.H., 2015. Managing for innovation: Managerial
control and employee level outcomes. Journal of Business Research, 68(2), pp.371-379.
Dobre, O.I., 2013. Employee motivation and organizational performance. Review of Applied
Socio-Economic Research, 5(1).
Ertas, N., 2015. Turnover intentions and work motivations of millennial employees in federal
service. Public Personnel Management, 44(3), pp.401-423.
Shahzadi, I., Javed, A., Pirzada, S.S., Nasreen, S. and Khanam, F., 2014. Impact of employee
motivation on employee performance. European Journal of Business and Management, 6(23),
pp.159-166.
Van Scheers, L. and Botha, J., 2014. Analysing relationship between employee job satisfaction
and motivation. Journal of Business and Retail Management Research, 9(1).
Wani, S.K., 2013. Job stress and its impact on employee motivation: a study of a select
commercial bank. International journal of business and management invention, 2(3), pp.13-18.