Impact of Employee Motivation on Organizational Performance in McDonalds

Running head: EMPLOYEE MOTIVATION ON ORGANIZATIONAL
PERFORMANCE
An Analytical study to understand the impact of employee motivation on the
organizational performance in the context of McDonalds
Name of the student
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1EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
Abstract
Introduction
In the competitive business environment, the food industry in US is dealing with the
various challenges for sustaining in the market. Analysing the current scenario in the
food industry, it has been identified that with increasing opportunities in the food
market, numbers of problems have been increased.
Due to increasing competition in the market, sustaining in the commercial level has
become major concern for the organizations.

2EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
Acknowledgement:
I will thank to my supervisor for providing me the opportunity to work on the research
study. I would like to thank my friends and family members, who have helped me
while conducting the research. I will thank my parents for their moral and financial
support..
Thanking you,
Yours Sincerely,

3EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
Table of contents
Chapter 1: Introduction................................................................................................6
1.1 Introduction........................................................................................................6
1.2 Background of the study....................................................................................6
1.3 Background of the company..............................................................................7
1.4 Rational of the study..........................................................................................8
1.5 Problem statement............................................................................................ 8
1.6 Research aim.................................................................................................... 9
1.7 Research objectives..........................................................................................9
1.8 Research questions...........................................................................................9
1.10 Significance of the study................................................................................10
1.11 Structure of the research study......................................................................10
1.12 Conclusion.....................................................................................................11
Chapter 2: Literature Review.................................................................................... 12
2.1 Introduction:.....................................................................................................12
2.2 Theoretical aspects of employee motivation....................................................12
2.2 Concept A: Organizational performance..........................................................17
2.4 Concept B Employee motivation......................................................................19
Different employee motivational strategies and its major impacts:........................20
Inter-relation between organizational performances and employee motivation.....22
2.5 Relationship between Concept A and Control variable...................................22
2.6 Conclusion:......................................................................................................25
2.7 Conceptual framework.....................................................................................26
2.8 Hypothesis.......................................................................................................26
2.8 Summary......................................................................................................... 26
Chapter 3: Research Methodology............................................................................28

4EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
3.0 Introduction:.....................................................................................................28
3.1 Research method outline:................................................................................28
3.2 Research Onion:..............................................................................................28
Figure 8: Research onion......................................................................................29
3.3 Research Philosophy:......................................................................................29
3.3.1 Justification for the chosen research philosophy:.....................................29
3.4 Research Approach:........................................................................................30
3.4.1 Justification for the chosen research approach:........................................30
3.5 Research Design:............................................................................................30
3.5.1 Justification for the chosen research design:............................................30
3.6 Research strategy:.......................................................................................... 31
3.6.1 Justification for the selection of Research Strategy..................................31
3.7 Selection of Sampling Methods and Sample size:...........................................31
3.8 Data collection method:...................................................................................31
3.8.1 Primary Research:....................................................................................32
3.9 Data analysis:..................................................................................................32
3.10 Research ethical consideration:.....................................................................32
3.11. Research limitation:......................................................................................32
3.12 Summary:...................................................................................................... 33
Chapter 4: Findings...................................................................................................33
4.0 Introduction......................................................................................................33
4.1 Reliability analysis...............................................................................................33
4.2 Quantitative analysis....................................................................................... 35
4.2.1 Demographic Questions............................................................................35
4.2.2 Employee motivation.................................................................................39
4.2.3 Organizational performance......................................................................49
4.4 Regression..........................................................................................................60

5EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
Chapter 5: Analysis...................................................................................................61
5.0 Introduction......................................................................................................... 61
5.1 Reliability analysis...............................................................................................62
5.2 Quantitative analysis....................................................................................... 63
5.2.1 Demographic Questions............................................................................63
4.2.2 Employee motivation.................................................................................63
4.2.3 Organizational performance......................................................................66
5.3 Correlation.......................................................................................................70
5.4 Regression..........................................................................................................72
Chapter 6: Conclusion and recommendation............................................................73
6.1 Conclusion:......................................................................................................73
6.2 Recommendations:..........................................................................................75
6.3 Objective linking:............................................................................................. 76
6.4 Future scope of the study:...............................................................................78
Reference list and bibliography.................................................................................79
Appendices............................................................................................................85
Appendix 1.............................................................................................................85
Appendix 2.............................................................................................................88
Appendix 3...............................................................................................................1

6EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
Chapter 1: Introduction
1.1 Introduction
In the changing market trend, the fastfood industry has become an important
contributor in Us economy (Belasco, 2014). Kuranchie-Mensah & Amponsah-
Tawiah, 2016It cannot be denied that through the employee motivation initiatives, not
only the employee engagement but also the financial as well as cultural stability in
the workplace can be increased. On the other hand, employee motivation is also
important for increasing the employee engagement towards achieving the
organizational goals and objectives. In this research, the importance of employee
motivation in the context of McDonalds has been discussed.
1.2 Background of the study
Analysing the current scenario in the food industry, it has been identified that
with increasing opportunities in the food market, numbers of problems have been
increased. Due to increasing competition in the market, sustaining in the commercial
level has become major concern for the organizations (Menges et al., 2017). On the
other hand, it cannot be denied that increasing competition and job pressure on the
employees, the rate of employee turnover has been increased. In this situation, it
has become necessary for the organizations to identify essential key influencing
factors that can help to overcome the situation. The purpose of this study is to
highlight motivation as an essential factor for driving organizational performance.
The research has also identified different motivational techniques that can be applied
in the workplace for improving organizational performance in McDonald’s.
Productivity is something that indicates the achievements of every organization. The
productivity in an organization is highly dependent on the process of employee
satisfaction. In order to provide the job satisfaction to the employees, motivational
initiatives are very important. Through this study, the researched has given the
analytical view of motivational techniques and those impact on the organizational
performance.
1.3 Background of the company
McDonald’s is a popular food chain in America, which was established in the year
1948 by Richard McDonalds and Maurice McDonald (Mcdonalds.com, 2018). In the
initial stage, the application for opening a small hamburger shop was collected by

7EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
the brothers from the salesman namely Ray Kons In the current scenerio,
MCDonald’s has become the popular food chain in the world with the numbers of
36000 restaurents uin all over 100 countries (Mcdonalds.com, 2018). McDonalds is
being considered as the world’s most democretic and unoversal brands. The aim of
the company is to be nutrationally mindful for sustiniong in the industry. Analyzibng
the vision of the cpmpany, it has been identifoed that Mcdolass wants to become the
favourite place for the customers for having food and drink. It always aims to meet
the the expectations of the customers. In the uear 1962, the company has
ibcorporated its Logo for creating iots unique brand identity in the market. Bu folloing
the ‘plan and win’ strategy, it aims to maibtain its worldwide operations smoothly. It is
true that in order to promote the standarlized and uunified tem in the workplace, the
company hire the qualified and experienced people for meeting its goals and
objectives. It can not be denied that the company is hoghly commited with its
customers.
Within few years, the compny has established itself as world’s largest food
chain with the revenue of 22.820 billion US dollar in the year 2017. By adopting the
marge and acquisition strategy, the company owened the share of Aroma café and
Donatos pizza. Abnalyzing the Us market, it has been identifioed that in the year
2018, the company provides its servoce through 14146 restaurents in US market. it
is true that in the year 2018, the sales rate of the company aroused 27% durng the
second quarter. Due to sudden jump in the interntiponal sales arte, the reevenue in
the US market tumbled 12% (Mcdonalds.com, 2018).
1.4 Rational of the study
The issue, which has been identified in the research is about the impact of
employee motivation in organizational performance in the context of McDonalds.
Employee motivation has become an integrated part in analysing the organizational
growth for the long term. Analysing the current situation in the workplace, it has been
identified that employee turnover has become the important issue in McDonalds,
which has creased difficulties for implementing business initiatives. As its result, the
overall organizational performance is getting hampered. Therefore, it can be said
that lack of employee motivation has become the issue in the current fast-food
industry.