Case Study on Impact of Employee Motivation on Employee Retention

Running head: IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
Impact of Employee Motivation on Employee Retention: A Case Study of Honey Well Fire
Systems
Name of the Student:
Name of the University:
Author’s Note:

1IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
Abstract
The aim of the research is to understand and investigate the impact of employee motivation for
retaining the employees for the business organizations successfully. Therefore, it is essential for
the human resources management of the business organizations to motivate the employees
appropriately so that they can be retained. Increased employee turnover rate results in losing
highly qualified, experiences and skilful employees for the business organizations thereby,
hampering the overall organizational performance. Therefore, the research is significant as this
helps in understanding the importance of employee motivation for employee retention, factors
affecting employee motivation and retention and suitable recommendations that Honeywell Fire
Systems can undertake for improving their employee motivation techniques thereby, increasing
employee retention. In the literature review chapter, the researcher has analysed various
secondary resources that compares and contrasts the opinions and viewpoints of different
authors. In this chapter, the researcher has also used relevant theories and models along with
discussing the successful application of them for the business organizations. Additionally, the
researcher has also highlighted the probable literature gaps that were identified while conducting
the research that somewhat compromised with the quality of the research work. The researcher
has used positivism philosophy, descriptive design and deductive approach for gathering data for
this researcher. The researcher has used random sampling technique for surveying 151
employees of Honeywell Fire Systems and has analysed the collected survey results using SPSS.
From the above research and data analysis, it can be concluded that employee motivation is
extremely crucial for retaining the employees. The human resource management needs to
consider the distinctive nature and individuality of the employees. Thus, the human resource
management needs to consider the individual needs to the employees and aim towards fulfilling

2IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
them. For instance, the motivating factors differ from individual to individual. As a result, the
human resource management cannot use similar motivating factors for all the employees. It is
essential for the business organizations to identify the individual needs of the employees and
develop strategies for fulfilling them. Thus, it can be concluded that the human resource
management needs to identify the individual motivational factors of the employees and aim
towards fulfilling them.

3IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ......................... whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the............... [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

4IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
Table of Contents
Chapter 1: Introduction..................................................................................................................10
1.0 Overview.........................................................................................................................10
1.1 Background of the Research................................................................................................10
1.2 Rationale of the Research....................................................................................................11
1.3 Background of the Organization..........................................................................................11
1.4 Research Aim.......................................................................................................................12
1.5 Research Objectives.............................................................................................................12
1.6 Research Questions..............................................................................................................12
1.7 Significance of the Research...............................................................................................13
1.8 Structure of the Dissertation................................................................................................13
1.9 Summary..............................................................................................................................14
Chapter 2: Literature Review.........................................................................................................15
2.0 Overview.........................................................................................................................15
2.1 Conceptual Framework........................................................................................................16
2.2 Concept of employee motivation.........................................................................................16
2.3 Factors affecting employee motivation...............................................................................17
2.4 Concept of employee retention............................................................................................19
2.5 Factors affecting employee retention...................................................................................20

5IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
2.6 Theory of employee motivation...............................................................................................21
2.7 Model of employee motivation................................................................................................22
2.7.1 4-drive model of employee motivation.............................................................................22
2.8 Theory of employee retention..................................................................................................24
2.8.1 Job embeddedness theory of employee retention.............................................................24
2.9 Model of employee retention...................................................................................................26
2.9.1 Ohio employee retention model........................................................................................26
2.10 Role of HRM on employee motivation and retention.......................................................27
2.11 Impact of motivation on employee retention.....................................................................28
2.12 Gaps in the literature..........................................................................................................29
2.13 Summary............................................................................................................................29
Chapter 3: Research Methodology................................................................................................30
3.0 Introduction.....................................................................................................................30
3.1 Research Outline..................................................................................................................30
3.2 Research Philosophy............................................................................................................30
3.2.1 Justifying the selection of positivism philosophy.............................................................31
3.3 Research Approach..............................................................................................................31
3.3.1 Justifying the selection of deductive approach.................................................................32
3.4 Research Design..................................................................................................................32
3.4.1 Justifying the selection of descriptive design...................................................................32

6IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
3.5 Research Strategy................................................................................................................33
3.5.1 Justifying the selection of survey research strategy.........................................................33
3.6 Sampling Technique and Sampling Size.............................................................................33
3.6.1 Justifying the selection of probability sampling technique..............................................34
3.7 Data Collection Technique..................................................................................................34
3.7.1 Justifying the selection of primary data collection technique..........................................34
3.8 Data Analysis Technique.....................................................................................................35
3.8.1 Justifying the selection of SPSS.......................................................................................35
3.9 Ethical Considerations.........................................................................................................35
3.10 Summary............................................................................................................................36
Chapter 4: Data Analysis...............................................................................................................37
Chapter 5: Conclusion and Recommendations..............................................................................58
5.0 Conclusion...........................................................................................................................58
5.1 Linking with objectives.......................................................................................................59
5.2 Recommendations................................................................................................................62
References......................................................................................................................................64
Appendix 1.....................................................................................................................................72
Survey Questionnaire.................................................................................................................72

7IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
List of Tables
Table 1: Hertzberg’s two-factor motivational theory....................................................................21
Table 2: Research Outline.............................................................................................................29