Impact of Employee Motivation on Organizational Performance: A Case Study of Woolworths, Australia

This research paper explores the impact of employee motivation on organizational performance using Woolworths, Australia as a case study. It discusses different motivational strategies that can be used to improve productivity and provides a literature review on intrinsic and extrinsic motivation.

Running head: BUSINESS RESEARCH

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TABLE OF CONTENTS
Introduction................................................................................................................................................................................ 3
Project objectives...................................................................................................................................................................... 3
Project scope.............................................................................................................................................................................. 3
Literature review....................................................................................................................................................................... 4
Conclusion.................................................................................................................................................................................. 8
References................................................................................................................................................................................ 10

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INTRODUCTION
In the competitive business scenario, retail companies facing challenges to gain profitability,
perform better and improves the effectiveness and productivity at the workplace. Hence, there is
need to clearly define the objective and to understand how to do well with available resources. It
is evaluated that human resources enables an organization to get success by managing the
organizational resources. Furthermore, human resource is an individual, who use their skills and
understanding to sustain the corporation in competitive market. It is a significant way to attain
the goal and objectives (Arifin, 2014). Employee motivation plays vital role for enhancing the
organizational performance. Hence, Woolworth should use different motivational strategy to
motivate the employees as it will directly impact on their productivity.
PROJECT OBJECTIVES
Following are the objective of research:
RO1: To develop the conceptual understanding regarding employee’s motivation: A case study
of Woolworths, Australia
RO2: To analyze the impact of motivation on organizational performance: A case study of
Woolworths, Australia
RO3: To evaluate the strategy to motivate the employees in the organization: A case study of
Woolworths, Australia
PROJECT SCOPE
This project has a wider scope for readers to build the conceptual understanding regarding
employee’s motivation. It is also beneficial for retail companies to comprehend the impact of
motivation on organizational performance as they can use motivational strategy in the workplace
to improve the organizational performance. It is also significant for Woolworths to develop the

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knowledge about different strategy to motivate the employees in the organization as it would be
appropriate for improving productivity (Barrick, Thurgood, Smith, and Courtright, 2015).
LITERATURE REVIEW
RO1: ‘To develop the conceptual understanding regarding employee’s motivation: A case
study of Woolworths, Australia’
According to Bottomley Mostafa Gould‐Williams and León‐Cázares (2016), the term motivation
is defined as the factor that leads, activate and sustain the goal-directed behavior. Further,
motivation is a psychological process, which assesses the direction of person’s attitude at the
workplace, and also evaluates the level of persistence and efforts of employees. The concept of
motivation is broader but, there are three elements, which are mainly entailed in the motivation
such as intensity, direction, and persistence. Motivation can be categorized into two parts named
intrinsic (internal) motivation and extrinsic (external) motivation.
(Sources: Cascio, 2018).

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In support of this, Fu and Deshpande (2014) evaluated that the intrinsic motivation generated
from self-desire of an individual to identify new things and to confront oneself. It is the
keenness to develop understanding, to learn and to discover competencies and self-values. When
people have intrinsic motivation, which means they do their job with enjoyment and interest.
These people have the extent to engage in their job, do their task with enthusiasm and keenness,
desires for obtaining favorable outcomes and self-rewards and continuously enhancing their
skills and competencies.
In opposed to this, Lazaroiu (2015) discussed that extrinsic motivation is the performance of
practices to attain the targeted results. Extrinsic motivation could arise from both internal and
external factors. But, most of the time, it comes from the impact of an external factor as
compared to internal factor i.e. individual itself. There is a certain factor, which generates
extrinsic motivation. For instance, appraisal, external rewards, punishment, and competitions are
the external factor of motivation.
Lazaroiu (2015) evaluated the expectancy theory of motivation in which, a person will
encourage for performing two expectancies. The expectation is the chances of obtaining desired
performance by putting efforts. The second expectancy is the chances that particular activities
will lead to attaining the result. When the chances of some efforts will not be rewarded then
workforces will not be highly encouraged to attain the particular task. Expectancy theory highly
relied on the motivators to spell out causes for behavior implemented in the workplace. External
rewards are demonstrated as inducing motivational, which assesses the behavior in against of
intrinsic motivator. Further, internal forces are derived from work itself but it is interesting for an
individual.

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RO2: ‘To analyze the impact of motivation on organizational performance: A case study of
Woolworths, Australia’
As per the view of Lee and Steers (2017), employees enter into the workplace with the purpose
of working hard and do a better job. Hence, the manager should work to decline the demotivation
among employees at the workplace. Woolworths should provide clear direction, resources and
personal respect to their employees. It is stated that company should include financial
compensation, recognition of formalized motivation plan and prevents from demotivation as it
would be beneficial to retain the employeesin the workplace.
In opposed to this, Mone and London (2018) evaluated that motivated workforces can mitigate
the need for company in terms of managing the day to day activities. As a result, the manager
would be free to think strategically regarding the direction of the corporation and make a higher
level judgment. Less encouraged employees can do damage to business by not offering the
quality services required to retain the customer and does not produce a quality product as per the
customer’s expectation. An encouraged employee can be trusted to sustain the business to a high
extent.
Mostafa Gould‐William and Bottomley (2015) stated that motivated employees work in a
manner that offers the greatest value to companies. Disinterest in daily project and feeling of
separateness from overall objective of the company could lead to a reduction in work quality.
The employee will want to perform their task to remain employed instead of practicing best
work. Thus, it can be stated that the company success relies on the level of employee’s
competencies.
In contrast to this, Nyberg Pieper and Trevor (2016) stated that employee’s creativity and
imagination could lead the innovation into the business. Woolworths should evolve to gain

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competitive benefit by motivating the employees. Because, if employees will not be motivated
then they will cease to share new idea regarding maintaining the market share and increase
potential customers. Less motivated employees show their less energy and time towards the job.
RO3: ‘To evaluate the strategy to motivate the employees in the organization: A case study
of Woolworths, Australia’
As per the view of Zameer Ali Nisar and Amir (2014), empowerment is an intrinsic factor, which
is used by the company to empower the employees by assigning them individual accountabilities
and right to make the best judgment. Woolworths can encourage the employees to make creative
and innovative ideas by empowering the employees at the workplace. This strategy permits the
workforces to feel like active personnel at the workplace who are competent to contribute
something meaningful. When workforces feel that they are part of the corporation then they are
more likely to move towards the objective of the corporation.
In support of this, Nyberg Pieper and Trevor (2016) described that self-improvement permits
workforce to get the training as per their requirement to improve their projects. It could motivate
the personnel in a different manner. For instance, Firstly, it makes feel to employees that
organization believe they are competent to attain the additional skills and information. Secondly,
it facilitates those facts that can inspire new concept or develop a new product within an
organization. The less common technique of self-improvement could provide the opportunity
regarding physical exercise and meditation. These both strategies make an individual feel more
mentally aware and prepared. It is assessed that some workforces underperform and resist the
company change and instruction due to demotivation at the workplace. Thus, Woolworths should
appreciate the work of employees to decline their stress as it would be beneficial to get better
work result.

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Mostafa Gould‐William and Bottomley (2015) stated that company should use flexible time
strategy to motivate the employees in the workplace. In the current scenario, people give value to
personal time due to their family requirements. A traditional nine to five workday may not
effective for a large number of people. Hence, flexible time permits the workforces to set and
control their own work hours. It is a great way that organizations are accommodating to meet the
need of employees. There is a certain option in which company can motivate the employees
towards their work such as job sharing, telecommuting, and compressed workweek.
Lee and Steers (2017) explained that there is a large number of people go to work each day and
act same as they do unenthusiastic activities to perform their project. These individual faces
condition as burnout. However, the smart manager can perform something to enhance the
condition before a workforce becomes bored and loses motivation. The aspect of job redesign
requires knowledge in the workplace. This strategy would be beneficial to enhance the job
quality of people. The company can also use motivational theories in working structure to
enhance the satisfaction and productivity of employees. When redesigning jobs then managers
should focus on job scope and depth. Redesign strategy could be performed in different ways
such as job enrichment, job enlargement, and job rotation.
In support of this, Mostafa Gould‐William and Bottomley (2015) discussed that job rotation
practice means assign different jobs and task to employees on a temporary basis. The key
purpose of using this strategy is to add a wide category of job and expose independence to
employees that one job has on other tasks. Job rotation could lead the higher extent of
contributions and renew enthusiasm and interest. A company can obtain benefit from cross-
trained employees at the workplace.
CONCLUSION

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As per the above interpretation, it can be concluded that motivation is a psychological procedure
to assess the direction of people’s attitude and also assess the level of persistence and efforts of
workforces. Motivation can be classified into two parts such as intrinsic (internal) motivation and
extrinsic (external) motivation. It could be summarized that the employee’s motivation can
positively impact on the organizational performance such as increase employee retention,
improve work quality and aids to get innovative ideas from employees. It can be concluded that
there is a different strategy to motivate the employees in an organization such as flexible time,
employee empowerment, rewards, and job redesign.

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REFERENCES
Arifin, H. M. (2014). The influence of competence, motivation, and organizational culture to
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of transformational leadership on organizational citizenship behaviors: The contingent
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organizational commitment on the job performance of employees in a China’s insurance
company. Journal of Business Ethics, 124(2), 339-349.
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theory (pp. 75-93). UK: Routledge.
Mone, E. M., & London, M. (2018). Employee engagement through effective performance
management: A practical guide for managers. UK: Routledge.

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Mostafa, A. M. S., Gould‐Williams, J. S., & Bottomley, P. (2015). High‐performance human
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