Impact of Employee Motivation on Organizational Productivity

Running head: IMPACT OF EMPLOYEE MOTIVATION ON ORGANIZATIONAL
PRODUCTIVITY
Impact of Employee Motivation on Organizational Productivity
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IMPACT OF EMPLOYEE MOTIVATION ON ORGANIZATIONAL PRODUCTIVITY
Abstract
Employee motivation has been an essential component in improving organizational productivity.
Various studies have showed that positive change in employee motivation has affected
organizational performance. This study has attempted at drawing attention to the impact of
employee motivation on organizational performance. The degree and nature of relationship
between employee motivation and organizational productivity has been illustrated by critically
evaluating different motivation theories and their influence on organizational productivity. In this
study, positivism philosophy of research and deductive approach has been used for validating the
existing theories. Quantitative data has been used so that close ended questions are formulated
for the survey and the questionnaire. The study used randomization to select 50 samples that
represented the whole population. The study showed that there is positive correlation between
employee motivation and organizational productivity. It was also concluded that employee
engagement, compensation and performance management have an impact on the factors of
organizational productivity that are commitment, employee turnover rate and employee
productivity. In the end it is recommended that the managers will have to evaluate and identify
the different needs of the employees by conducting meetings so that the problems can be
identified.

IMPACT OF EMPLOYEE MOTIVATION ON ORGANIZATIONAL PRODUCTIVITY
Table of Contents
1.0 Introduction................................................................................................................................4
1.1 Background of the study........................................................................................................4
1.2 Research Aim and Objective.................................................................................................4
1.3 Research Hypothesis..............................................................................................................5
1.4 Research Question.................................................................................................................5
2.0 Literature Review......................................................................................................................6
2.1 Employee motivation.............................................................................................................6
2.1.1 Motivational theories......................................................................................................7
2.2 Elements of Employee Motivation........................................................................................8
2.3 Organizational productivity...................................................................................................9
2.4 Factors affecting Organizational productivity.....................................................................10
2.5 Relationship between employee motivation and organizational productivity.....................11
2.6 Conceptual framework.........................................................................................................13
2.7 Literature Gap......................................................................................................................13
3.0 Research methodology.............................................................................................................14
3.1 Research Philosophy............................................................................................................14
3.2 Research Approach..............................................................................................................14
3.3 Research Design..................................................................................................................15
3.5 Data Analysis Technique.....................................................................................................15

IMPACT OF EMPLOYEE MOTIVATION ON ORGANIZATIONAL PRODUCTIVITY
3.6 Sampling Technique............................................................................................................15
3.6.1 Sample size...................................................................................................................16
3.7 Research Ethics....................................................................................................................16
3.8 Research Limitation.............................................................................................................16
4.0 Findings and Analysis..............................................................................................................17
4.1 Quantitative Analysis...........................................................................................................17
5.0 Conclusion...............................................................................................................................25
5.1 Objective 1- To examine the impact of employee motivation on organizational
performance...............................................................................................................................25
5.2 Objective 2- To illustrate the different elements of organizational productivity and
employee motivation.................................................................................................................26
5.3 Objective 3- To recommend suitable strategies for improving organizational productivity
...................................................................................................................................................26
References......................................................................................................................................27
Appendix........................................................................................................................................30

IMPACT OF EMPLOYEE MOTIVATION ON ORGANIZATIONAL PRODUCTIVITY
Topic: Impact of employee motivation on organizational productivity
1.0 Introduction
This study will draw attention to the impact of employee motivation on organizational
performance. The degree and nature of relationship between employee motivation and
organizational productivity will be illustrated by critically evaluating different motivation
theories and their influence on organizational productivity.
1.1 Background of the study
Employee motivation has been essential component for improving organizational
productivity. Various studies have showed that positive change in employee motivation has
affected organizational performance. Recent studies suggest that majority of global managers
have been using outdated theories of motivation for managing their employees. The managers in
the modern organization to increase their organizational performance use process theories and
content theories (Lazaroiu, 2015). However, these theories such as Abraham Maslow’s hierarchy
of Needs does not relate to the modern needs of the employees. Therefore, the motivational
theories may not have similar impact on the organization if the existing theories are concerned.
The study will analyse the motivational theories to identify that are up to date and can be used in
affecting the factors of organizational productivity.
1.2 Research Aim and Objective
The research aims to identify the different elements of employee motivation and their
influence on the elements of organizational productivity. The study will aim to analyse critically
how the factors of employee motivation have influenced organizational productivity.

IMPACT OF EMPLOYEE MOTIVATION ON ORGANIZATIONAL PRODUCTIVITY
Research objectives
 To examine the impact of employee motivation on organizational performance
 To illustrate the different elements of organizational productivity and employee
motivation
 To recommend suitable strategies for improving organizational productivity
1.3 Research Hypothesis
H0 – Employee motivation has no impact on organizational productivity
H1 – Employee motivation has impact on organizational productivity
1.4 Research Question
 What is the impact of employee motivation on organizational productivity?
 What are the different elements of organizational productivity?
 What are the different elements of employee motivation?

IMPACT OF EMPLOYEE MOTIVATION ON ORGANIZATIONAL PRODUCTIVITY
2.0 Literature Review
2.1 Employee motivation
According to Lachowycz and Jones (2013), motivation is a psychological force that
determines the effort level of the employees while facing various obstacles in the organization.
Cerasoli and Ford (2014) defined motivation as cognitive process related to decision making,
which provides strength to improve the behaviour. Motivation is an internal state, which helps
the individuals to behave in a well-specified way to accomplish their goals and objectives. As per
Fransen et al. (2017), motivation related to performing task is ascertained to identify the order,
which attains complete targets. Motivation is the key element required for the growth and
progress of an organization.
Commented that motivation as the vital power required by the individuals that facilitates
strengths in their behaviour and triggers efficient tendency and will to continue smoothly. On the
other hand, Gerhart and Fang (2015) demonstrated that motivation is the major drive required to
satisfy various requirements and needs of the people to satisfy them. In an organization, the
employees are motivated by the extrinsic and intrinsic motivational factors. The intrinsic factors
facilitate in fulfilling the employee’s internal desires in such a way that is self-applied to the
employees. The workers in various organizations self-direct themselves that would help in
generating productivity. Hanus and Fox (2015) commented extrinsic motivation is wherein the
work performed to gain material and social rewards so that punishment should be avoided.
Howard et al. (2016) stated extrinsic motivation leads to anxiety and low self-esteem due to
intense pressure within the organization. This includes tangible rewards like promotions, bonuses
and various kinds of pays.

IMPACT OF EMPLOYEE MOTIVATION ON ORGANIZATIONAL PRODUCTIVITY
2.1.1 Motivational theories
There are various theories related to motivations that influence various factors
responsible for contributing towards job performance and job satisfactions. Both the intrinsic and
extrinsic factors of motivation are considered in such a way that influences the employee’s
behaviour. This can be proved through the application of various motivational theories in an
efficient way. The theories of Herzberg and Maslow are the two distinct content theories, which
stress on the various needs related to employee satisfaction and motivation.
Abraham Maslow: Hierarchy of Needs
Maslow (1943) initiated the theory of needs to be included in motivational theory for
individuals within the organization. The vital five needs of Maslow’s motivational theory are
demonstrated as follows:
Physiological Needs includes food, sleep and water
Self-actualization Needs are related to highest priority that involves the potential to accomplish
goals after fulfilling all other basic goals.
Safety Needs involves safety and security of the individuals like job, property and protection
against various kind of emotional harm.
Esteem Needs includes satisfaction of power besides autonomy and self-respect. Moreover, it
includes self-recognition and attention.
Social Needs includes cooperation and interaction related to different leaders and co-workers.
The above-mentioned different needs related to Maslow’s theory, when adopted by the
organization helps the employees to perform effectively and in a better manner. According to