Employee Motivation: Literature Review Dissertation

This literature review dissertation explores the concept of employee motivation in a business context, types of motivation theories used within a workplace, non-financial benefits that help in motivating employees, and the importance of self-recognition in improving employee motivation at the workplace.

Literature Review Dissertation
(Employee Motivation)
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Contents
Contents...........................................................................................................................................2
What is the concept of Employee motivation in business context?.................................................3
What are the types of motivation theories used within a workplace of an organisation?................4
What are the Non-financial benefits that help an organisation in motivating of employees within
a workplace?....................................................................................................................................7
What is the importance of Self-recognition in improvement of employee motivation at
workplace?.......................................................................................................................................9
What are the benefits of giving power and authority to employees?..............................................9
REFERENCES..............................................................................................................................11
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What is the concept of Employee motivation in business context?
According to the Amin and et. al., (2021), employee motivation is an energy level,
commitment, enthusiasm and the amount of creativity and inspiration that an employee brings to
the business on a daily basis. It is a psychological process that gives behavior purpose and
direction to employees to work towards achievement of an organizational goals and objectives.
According to the Michal, J. Jucius, motivation refers to the act of stimulating employee to get a
wanted course of action and to push the right bottom to acquire a desired reaction. Motivation is
an effective process of inducting, emerging and inspiring employee to work willingly with
satisfaction, confidence, initiative, zeal and an integrated way to accomplish desired goals. In
simple word, motivation is an art through which manger of an organisation is responsible in
promoting of productivity among employees. It is an internal factor that inspires desired energy
in employee to be continually committed and interested to a job or to make their full efforts in
attainment of goals of an organisation.
There are various characteristics of motivation that are explained as below:
Motivation is a psychological process: Motivation is an internal feeling that means, it
cannot be emphasized on employee. Internal feeling includes need, aspiration, desire, etc. All
these feelings have direct influence on human behavior to behave within a specific ways.
Motivation produce goal directed behavior: Motivation includes employee to behave
in positive manner with purpose of achieving goals and objectives. Motivated employees within
a workplace need no direction and supervision (Budzanowska-Drzewiecka and Tutko, 2021).
Motivated workers at workplace facilitate an organisation in achievement of long term goals and
objectives within a minimum time and successful manner.
Motivation is a complex process: Motivation in a workplace is difficult and complex
task for business manager.in order to motivate employee, business manager should know various
types of employee needs. There are two ways that will help an organisation in increasing of
motivation among employees i.e. monetary and non-monetary benefits.
There are various important of employee motivation that helps an organisation in
improvement of its business performance (Astuti, 2021). These importance are; change negative
attitude of employee in positive attitude, improve level of employee performance, facilitate in
accomplishment of organizational goals, develops supportive work environment, helps in
reduction of high employee turnover etc. All these are major benefits of employee motivation
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that turn to impact in improvement of organizational as well as employee performance in
positive manner.
All these benefits of employee motivation are explained as below:
Change negative attitude to positive attitude: Motivation is important for an organisation
in changing the negative behavior of employees in positive manner. Motivated employees
complete all activities of business in minimum time period and effective manner (Mnykh and et.
al., 2021). Motivated employee increase motivation among other employees that turn to impact
in increment of positive behavior in workforce.
Improve performance level of employees: This is another benefit of employee motivation
that facilitates an organisation in achievement of all tasks and activities in systematic manner.
The motivation enhances the employee’s efficiency that means the workers start doing the job in
effective manner.
Facilitate in achievement of organizational goals: Motivated employees work towards
attainment of business goals and objectives (Musoga, 2021). They are able in completing of all
activities within less period of time and in successful manner. Therefore, it is one of the main
advantages of employee motivation within a workplace.
What are the types of motivation theories used within a workplace of an
organisation?
According to the Augustinus and Halim (2021), there are different types of motivation
theories i.e. Maslow's Need Hierarchy Theory, Herzberg's Motivation Hygiene Theory,
McGregor's Participation Theory, McClelland's Need Theory, Argyris's Theory, Urwick's Theory
Z, Vroom's Expectancy Theory and Porter and Lawler's Expectancy Theory. All these are main
theories of motivations but today’s in workplace, Maslow's Need Hierarchy Theory is a common
theory that used by each and every organisation for motivating their employee within a working
environment.
Maslow's Need Hierarchy Theory: This is an important theory of motivation because it
supports an organisation in fulfilling of all types of employee’s needs (Mani and Mishra, 2021).
This theory of motivation includes five steps i.e. physiological needs, safety needs, belongings
and love needs, esteem needs and self-actualization.
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Figure 1: Maslow's Need Hierarchy Theory
Source: (Changedynamics, 2021)
From the above mentioned image of Maslow's Need Hierarchy Theory of motivation, it has
been interpreted that all five steps are important in incraesing of employee motivation within a
workplace. All these stesp of Maslow's Need Hierarchy Theory are explined as below in detailed
manner:
Physiological needs: This type of needs includes job opportunity, working hours, faire
benefits, faire compensation etc. All these are physiological needs that require by all employees
within a workplace. This is important for an organisation to fill all physiological needs of their
employees because it increases motivation among them. This is beneficial for company because
it increase efficiency and productivity level among workers that turn to impact in improvement
of business performance. There is requirement for providing fair compensation to their
employees because discrimination decreased employee motivation that direct have negative
impact on business image by increasing high employee turnover (Bhavikatti and Hiremath,
2021). There is also a responsibility of manager to facility of reasonable working hour because it
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increased employee efficiency and productivity towards work. Therefore, fulfillment of all
employees’ physiological needs, help business organisation in increment of motivation level
among workforce. For example: M&S is a multinational retailer that helps their employees by
increasing their motivation level through providing compensation, faire benefits, reasonable
working hour etc.
Safety needs: This is a second step of Maslow's Need Hierarchy Theory that includes some
main types of safety needs i.e. fair treatment, workers right, medical insurance, safe working
environment etc. These are main safety needs that are needed by employee within a workplace.
This is the role of business manager to fulfill all safety needs of their employees effectively. This
will help them in increasing of motivation among workforce. For this needs, an organisation is to
follow health and safety at work act 1974. This act helps them protecting of their employees
from any type of health issues. For example: COVID 19 is a pandemic situation and has negative
impact on all workplace. In this situation, it is the role of each and every organisation to provide
facility of medical insurance to their all employees (Herawati and et. al., 2021). For fulfilling the
fair treatment need of safety, there is the main role of business manager to adopt equality act
2010. This is an act that helps an organisation in protecting of their employees from any type of
discrimination i.e. age, gender etc. Thus, it is necessary for company to fulfill safety and security
needs of their employees. For example: H&M is an international clothing retailer that supports
their employees from any type of decimation.
Belongings and love needs: This is third step of Maslow's Need Hierarchy Theory that
conver different types of belongings and love needs. These are includes inclusiveness,
collaborative culture, minimum office politics and many more. All these are main belongings
and love needs that must be following by researcher because it facilitates them in increment of
motivation level among workforce. According to the Oktari (2021), there is requirement for
creating inclusive work environment because it will help business organisation in improving
employee motivation towards the job. There are different advantages of inclusive working
environment such as higher job satisfaction, higher employee morale, improved problem solving
etc. These are major benefits of developing inclusive work environment for an organisation that
is only possible with employee motivation. For example: Amazon UK facilitates their employees
by fulfilling all types of belongings and love needs that helped them result improved business
performance, increased sales etc.
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Esteem needs: This is a fourth stage of Maslow's Need Hierarchy Theory that is essential
for reseracher to increase motivation by fulfiling esteem needs. Under this need, different types
of needs are included i.e. respect og management and colleges, appropriarte level of decision
making independence, faire performance mangement system, personal development and carrer
group. In order to fulfil all these needs, there are various intiavtes that must be taken by business
manager. These are; recognition and reword, role design, job rotation, flexibility, self-
motivation, providing development opportunities, training and development, sucession planning
and many others. All these are more effective and useful intiatives in increseaing employee
motivation towards the job. As per the opinion of Osarenmwinda (2021), this is only possible by
fulfiling each and every esteem needs of employees. There is also responsibility of top autherity
to involve employees in all decision making process and provide right to give their own decision
about business activities. This will help employees by increasing their motivation that result in
improved productivity and efficiency towards business activity. Waitrose is a best example that
fulfiled all types of esteem needs of their employees. One of the main reason that waitrose is a
multinational sucesfull organisation that is motivated employees.
Self-actualization: This is a last stage of Maslow's Need Hierarchy Theory that helps an
organisation in enhnacement of employee’s motivation toawrds the job. This type of need
includes self-fulfilemt, sekking personal growth and peak experience etc. These are major needs
that are usefuk for an employes in increasing their motivation towards the job role. This is a role
and responsibility of company to communicate all information about the business to theie
employees because it helps in enhnacement of employee motivation (Fathonah and Kasmir,
2021). It is important for company to provide opportunity related to the personal develoment and
growth to their employees. As it fulfil employee’s self-actualisation need that result in improved
business productivity and performance. There is responsibility of company to provide
empowerment to their employees about job. Therefore, fulfiment of self-actualisation need,
company can increase motovation level of employees. For example:
What are the Non-financial benefits that help an organisation in motivating of
employees within a workplace?
According to Landry and et. al, (2017), there are many employees in organizations who
prefer non-financial benefits over financial benefits because they do not get motivated with
financial benefits as compared to non-financial benefits. In simple language non-financial
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benefits refers to those benefits that assist in satisfying emotional, social and psychological needs
of employees. By non-financial benefits there are monetary benefits that are also gained because
it increases salary and pay of an individual. There are many non-financial benefits that are used
by organization for motivating employees within the workplace some of the non-financial
benefits used by organizations are:
Status
It refers to the position an individual always wants in an organization. It is one of the
most impactful non-financial benefits that motivate employees to work harder. Status provides
higher responsibility, authority, recognition, prestige and rewards.
Career opportunity
Every employee working in an organization wants development in their career.
Promotion plays critical role in empowering employees towards improving their performance,
higher managers keep their eyes on employees so that they can provide opportunity according to
their performance in assigned job role and responsibility (Fathonah and Kasmir, 2021).
Security Of job
Job security and continuous income are the factors that motivates individual to work with
enthusiasm and zeal. Job security creates mentality among employees that they need to work
hard for the company so that company can achieve its objectives and fulfill objectives of
workforce.
Programmes for employee recognition
As per the opinion of Robescu and Iancu (2016), Recognition refers to the
acknowledgement of work done by employees. An employee always wants recognition for the
work they have done because it encourages them to work more effectively and efficiently and it
brings positivity between their supervisor and them. Recognition provides appreciation in front
of other people that boost up the confidence of employees.
Participation of employees
It refers to the process in which employees are involved in every decision making in the
organization related to every issue, innovation and new product development. When organization
increases participation of employees it assist in developing feeling in the mind of employees that
they are important for the organization and their decision matters in the success of organization.
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Different committees are formed like joint committee, purchase committee to encourage and
empower employees so that they can show their participation.
What is the importance of Self-recognition in improvement of employee
motivation at workplace?
According to Andriotis (2018), it is not possible to measure the importance of self-
recognition. It is considered as tool that is powerful for creating team and great environment.
Recognition empowers and encourages individuals towards high retention rates, great
performance, increased productivity and decreased expenses because of in attentiveness while
working security issues or time issues. Recognition of employees for the activities they do only
cost some effort and time in the organization. Recognition is defined as activity or work that pay
back company as an employer because employees would work hard for the company. Some of
the importance of self-recognition in improving employee motivation at workplace is:
Increase productivity
Productivity of employees enhances and increases because of self-recognition as they
understand their value and efforts. Employees become more enthusiasts towards their job
responsibility and work and focus on achieving targets before deadline.
Decreased rework
As per the opinion of Clarke and Mahadi (2017), increased efforts of employees and their
selfless recognition assist in reducing errors at work that ultimately decreases the chances of
working the same work again and again. This improves the productivity of employees and
increases high performance the way they deliver their work in the organization.
Retentively of employees
Retentively increases and improves as individuals move towards self-recognition and
they start performing better and motivated to do their work. At this stage employees stick to their
job and do not remain job hoppers and remove the thought of leaving the job or switching the job
from one company to another.
Improved rating of performance
With the assistance of self-recognition employees improve their performance in the
company. Company gets great returns and that makes managers happy with the performance of
employees and they give increased and higher ratings to employees at the time of appreciations
and appraisals.
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What are the benefits of giving power and authority to employees?
According to Ponomareva (2016), in an organization providing authority and responsibilities
is an great initiative by superiors or employers to their subordinates because it encourages and
motivates employees as it increases their responsibility towards their work as they become more
accountable to their activities in the organization. Giving authority and responsibility is defined
as critical skill for employers of any level because it is the case of showing confidence in the
ability and capability of other employees. Some of the benefits of giving power and authority to
employees are:
Development of team
Involving members of team in particular task this helps in developing their abilities and
teaching them new knowledge and skills. The delegation of power and authority becomes great
benefit to the employees because it makes them more employable and versatile. They also get
more importance in the team by providing new task and activity as job of employees become
more enjoyable and challenging.
Creating trust culture
Delegation of power and authority to subordinates or employees automatically assist in
establishing trust culture in the workplace. Getting power and authority employees develop the
feeling of being important for organization as well as for their supervisors. This ultimately boosts
up the self-esteem of employees and performs their responsibility more effectively and
efficiently.
Motivated employees
With the view of Lipnowski and Ramos (2020), providing authority and power to
employees make them more responsible towards their job responsibility. Workforce feels
encouraged and empowered because of getting great authority with their great performance. This
improves the relationship between employer and their subordinates as employees know that their
supervisors are showing trust over them by delegating power and authority.
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REFERENCES
Books and Journals
Amin, M. and et. al., 2021. Employee Motivation to Co-Create Value (EMCCV): Construction
and Validation of Scale. Journal of Retailing and Consumer Services, 58, p.102334.
Andriotis, N., 2018. Employee Recognition in the Workplace: the Why and How.
Astuti, A .S., 2021. The Role of Teamwork, Work Environment, Compensation System in an
Effort to Increase Employee Extrinsic Motivation at the Dompet Dhuafa Integrated
Health Hospital. European Journal of Business and Management Research. 6(1).
pp.182-188.
Augustinus, D. C. and Halim, C.F., 2021. THE EFFECT OF MOTIVATION TOWARDS
EMPLOYEE PERFORMANCE FOR CAFE WORKERS IN MEDAN. Journal of
Accounting and Management Innovation. 5(1). pp.44-56.
Bhavikatti, V. I. and Hiremath, S., 2021. EMPLOYEE MOTIVATION AND WORK
PEFORMANCE IN ORGANIZATION.
Budzanowska-Drzewiecka, M. and Tutko, M., 2021. The impact of individual motivation on
employee voluntary pro-environmental behaviours: the motivation towards the
environment of Polish employees. Management of Environmental Quality: An
International Journal.
Clarke, N. and Mahadi, N., 2017. The significance of mutual recognition respect in mediating the
relationships between trait emotional intelligence, affective commitment and job
satisfaction. Personality and Individual Differences. 105. pp.129-134.
Fathonah, S. M. and Kasmir, K., 2021. THE AFFECT OF PERSONAL CHARACTERISTICS,
MOTIVATION AND WORK DISCIPLINE AGAINST EMPLOYEE
PERFORMANCE. Dinasti International Journal of Education Management And Social
Science. 2(3). pp.527-534.
Herawati, E. and et. al., 2021. The Role of Employee Performance Meditation on Organizational
Performance at BPSMB. Jurnal Perspektif Pembiayaan dan Pembangunan Daerah.
8(6). pp.585-594.
Landry and et. al, 2017. The relation between financial incentives, motivation, and
performance. Journal of Personnel Psychology.
Lees, D. and Dhanpat, N., 2021. Relationship between manager credibility, strategic alignment
and employee motivation. SA Journal of Human Resource Management, 19, p.11.
Lipnowski, E. and Ramos, J., 2020. Repeated delegation. Journal of Economic
Theory. 188. p.105040.
Long, L. R. and et. al., 2021. The Content of the Threat Matters: the Differential Effects of
Quantitative and Qualitative Job Insecurity on Different Types of Employee
Motivation. Journal of Business and Psychology, pp.1-14.
Mani, S. and Mishra, M., 2021. Are your employees getting their daily dose of DOSE?–A
neuroscience perspective to enhance employee engagement. Development and Learning
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Mnykh, O. and et. al., 2021. The role of personnel motivation in the risk management system of
energy companies with employee stock ownership. In IOP Conference Series: Earth
and Environmental Science (Vol. 628, No. 1, p. 012038). IOP Publishing.
Musoga, H., 2021. Employee motivation, employee engagement and performance among
employees at Safe Drive Uganda (Doctoral dissertation, Makerere University).
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Oktari, S. D., 2021. Work Motivation And Compensation To Support Employee Performance At
PT. A. Turkish Journal of Computer and Mathematics Education (TURCOMAT). 12(8).
pp.705-710.
Osarenmwinda, S., 2021. Determinants of employee motivation in the nigerian institute for oil
palm research [nifor]: herzberg's hygiene factor approach. ACADEMICIA: AN
INTERNATIONAL MULTIDISCIPLINARY RESEARCH JOURNAL. 11(2). pp.435-452.
Ponomareva, Y., 2016. Costs and Benefits of Delegation: Managerial Discretion as a Bridge
between Strategic Management and Corporate Governance (Doctoral dissertation,
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Robescu, O. and Iancu, A. G., 2016. The effects of motivation on employees performance in
organizations. Valahian Journal of Economic Studies. 7(2). pp.49-56.
Tumi, N. S., Hasan, A.N. and Khalid, J., 2021. Impact of Compensation, Job Enrichment and
Enlargement, and Training on Employee Motivation. Business Perspectives and
Research, p.2278533721995353.
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