Impact of Employee Motivation on Organizational Performance: A Case Study of ANZ Banking Group

This research proposal explores the impact of employee motivation on organizational performance using a case study of ANZ Banking Group. It examines the correlation between motivation and performance, and the role of incentives and rewards. The study aims to provide insights into strategies for enhancing organizational effectiveness.

Running head: MANAGEMENT
Impact of employee motivation on organization performance: A case study of ANZ Banking
Group
Name of the student:
Name of the university:
Author note:

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Abstract
The employees in an organization need motivation and encouragement for exposing better
performance. If the managers take initiatives to organize training and development programs,
the employees feel an urge to display performance as per the identified standards. Scoring the
performance of the employees is assistance for the managers to estimate the future progress.
This research proposal proposes to use quantitative method for gaining an insight into the
approaches of employees and managers about incentives and plans for enhancing the
organizational effectiveness. Literature review has been conducted for establishing essential
correlations between the dependent (motivation) and independent (organizational
performance) variables. The setting considered in this context is that of ANZ Banking Group,
Australia. The issue identified is that of the employability and personal skills, which is
getting obsolete under the craze of monetary rewards.

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Table of contents
Introduction................................................................................................................................3
Overview of the organization.................................................................................................3
Problem statement..................................................................................................................3
Literature review........................................................................................................................4
Conceptual framework...........................................................................................................4
Motivation..............................................................................................................................4
Organizational performance...................................................................................................6
Impact of motivation on organizational performance............................................................7
Drive theory of motivation.....................................................................................................7
Maslow’s Hierarchy of Needs................................................................................................8
Organizational performance framework................................................................................8
Hypothesis/ propositions development......................................................................................9
Theory X and Theory Y.........................................................................................................9
Research methodology.............................................................................................................10
Contributions............................................................................................................................12
References................................................................................................................................14
Appendices...............................................................................................................................16
Appendix 1...........................................................................................................................16

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Introduction
The employees expose different behaviours in the workplace for exposing better
performance. This performance adversely affects the productivity of the organizations. In this
context, the arguments of the psychologists seem to be effective in terms of motivation,
which is vital for enhancing the standards and quality of the performance. The motivational
factors, assisting the employees to expose better performance are rewards, recognition,
praises and incentives. On the contrary, hygienic factors generate dissatisfaction among the
workers, which affects the productivity (Imran, Rabia, Mehwish and Abida 2015). This
assignment would shed light on the impact of motivation on the organizational performance.
The setting in this case would be ANZ Banking Group.
Overview of the organization
ANZ Banking Group achieves accolades and glory by emerging as an Australian
multinational banking and financial services. The company has been enlisted in the
Australian Securities Exchange (ASX). The company operates under the Banking and
Financial Services Industry with the headquarters in Melbourne, Australia. As a matter of
specification, the bank deals in the services of corporate banking, institutional banking,
private banking, mobile banking and broker portal (Anz.com.au 2019). Innovation in these
services seems to be effective in influencing the purchasing power and decision of the clients
and the customers. According to the annual report of 2015, the annual revenue was A$
21.071 billion. The net income was recorded as A$ 7.493 billion. The total assets were
estimated as A$ 889.9 billion. The major drive behind this is the skilled efforts of 50,152
employees.
Problem statement
Motivation is a crucial factor for enhancing the standards and quality of the
performance in a company and organization. However, mostly it is seen that monetary
motivation is adopted, which affects the individual needs, demands and requirements of the
employees, especially their professional development. As a result of this issue, the employees
are looking for better employment options, which compel the Banking Group to encounter
decline in the sales revenue and profit margin (Selden, Sally and Jessica 2015). This research
aims to assess the impact of incentive plans on the performance of the employees. This
assessment would development strategic alignment with the business mechanisms in terms of

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accomplishing the goals and objectives of achieving sustainable development through
integrity, collaboration, accountability, respect and excellence.
Literature review
Conceptual framework
Fig: Components of organizational performance or effectiveness
(Source: Created by the researcher)
Motivation
Motivation is the process by which the individuals are assisted for performing the
necessary actions according to the requirements. Motivation and encouragement helps the
supervisors in monitoring the actions of the staffs, which proves beneficial in enhancing the
awareness about the mistakes. Nguyen (2017) states that, timely intimation about the
mistakes proves effective for improving their skills, abilities and competencies. The basis of
motivation is the goals, which is to be accomplished for standardizing the performance
according to the benchmark levels.

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Fig: Intrinsic and extrinsic motivation
(Source: Nguyen 2017)
Motivation can be divided into intrinsic and extrinsic. Intrinsic motivation is the
stage, where inquisitive nature is exposed by the individuals to learn new things for
expanding the knowledge horizons. On the contrary, extrinsic motivation is the desire to
upgrade the standards and quality of the performance through internal attempts (refer to
Appendix 1).
In the current business context, motivation is provided through hygienic and
motivational factors, which are incentives and rewards. Mention can be made of the incentive
plans, which are formulated and revised in the form of meetings, audits and reviews.
Revision of the plan helps in introducing effective services for the staffs, addressing the
issues of turnover. As per the arguments of Dobre (2013), involvement of the staffs in
meetings is assistance in terms of gaining feedbacks regarding the effectiveness of the
delivered services.
Extrinsic motivation
External
regulation Introjection Identification
Integration
Intrinsic motivation
Interest
Enjoyment, inherent satisfaction

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Organizational performance
Strategies are developed for enhancing the standards and quality of the organizational
performance. The strategies are an effective means for supporting the mission. Allocation of
the roles and responsibilities is assistance for measuring the extent to which the performance
aligns with the mission statement. Mention can be made of Departmental Strategies and
Programs (SDBIP), which is a slow and gradual process to standardize the business
processes. Along with this, Faisal et al. (2015) highlights Integrated Development Plans
(IDP) also proves beneficial for achieving growth and development in the mechanisms.
Within these plans, short and long term goals are developed for adding focus into the
business. Summarization of the aspects stands as follows:
Fig: Organizational performance mechanisms
(Source: Singh 2016)
Mapping is one of the important aspect in the organizational performance. In this
context, the parameters considered are customer satisfaction. The key performance indicators
Values
Customer
requirements
Mission
Vision
Business
strategy Operations Organizational
results
Cluster Departments Support
units
Teams and
individuals

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are service quality, customer confidence, customer satisfaction and program effectiveness.
The means through which these indicators are measured are training, information technology
and leadership.
Fig: Key performance indicators leading to successful strategy execution
(Source: Nguyen 2017)
Impact of motivation on organizational performance
In the current business scenario, strategies, goals and objectives are needed for
enhancing the standards and quality of the operations. In this context, mention can be made
of the capability analysis, which helps in mapping the scope and arena to which the
operations can be expanded. The employees are considered to be a valuable asset for the
organization in terms of accomplishing the identified and specified goals. As per the
arguments of Dobre (2013), reference can be cited of the issues of turnover, which adversely
affects the productivity. Motivation finds its applicability in this stage through the plans of
creating a supportive workplace environment. Creative learning environment is created for
enhancing the awareness of the employees about the basics of the business mechanisms.
Drive theory of motivation
These theories comprise of push and pull factors to provide an insight into the
behavioural changes, which are related to motivation. As a matter of specification, behaviour
Training
Information
technology
Leadership
Service quality Customer
confidence
Customer
satisfaction
Program
effectiveness

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is perceived as a push factor, invoking significant changes in the behaviour of the employees.
Selden, Sally and Jessica (2015) proposes that arousal of the internal driving states assists the
employees to indulge in the activity of the goal setting, which leads to personality
development.
Maslow’s Hierarchy of Needs
The main essence of this theory is that needs are placed in the lower level for
controlling the motivation in case of dissatisfaction. As a matter of specification, the needs of
self-actualization, ego and belongingness are crucial in terms of motivating the employees for
extracting better performance. On the contrary, Singh (2016) is of the view that safety and
physiological needs are the components invoking dissatisfaction within the employees.
Motivation helps the staffs to realize their potentials and capabilities. In this process, they
gain self awareness, which is crucial for bringing noticeable transformations in the
approaches to work. If the employees are involved in the mainstream activities and are
motivated, they are acquainted with the need of belonging. Herein lays the aspect of
“employees being an asset for the companies and organization to attain their goals.
Organizational performance framework
Fig: Organizational performance framework
(Source: Faisal et al. 2015)

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These aspects are governed by the parameters of assessment, evaluation, cascade,
automation, initiatives, performance measures, strategic map, objectives and strategy.
Performance management systems are the means through which standardization is added into
the business mechanisms and processes. Assessment and evaluations help in measuring the
effectiveness, appropriateness and feasibility of the plans, policies and programs planned for
enhancing the productivity (Imran, Rabia, Mehwish and Abida 2015).
Hypothesis/ propositions development
H0- Motivation does not have any impact on organizational performance of ANZ Banking
group
H1- Motivation has an impact on the organizational performance of ANZ Banking Group
Motivation and organizational performance are interrelated between each other.
Provision of motivation and encouragement to the employees generates within them an urge
to expose better performance. This performance, further, is assistance for enhancing the
standards and quality of the performance. Incentives, rewards and recognition are the means
for luring the clients and the customers. On the other hand, Valmohammadi, Changiz, and
Mohsen (2015) states that non-monetary rewards help the managers in upgrading the
preconceived skills, expertise and knowledge of the staffs. This approach is apt in terms of
enhancing the awareness about the current trends, which governs the business. If negative
outcomes are detected, then motivation is needed for making the necessary improvisations.
Incentives are one of the basic ways in which the staffs of ANZ Banking Group can
be motivated for exposing better performance. In this context, mention can be made of the
incentive plans, which aligns with the strategic management. Audits, meetings and reviews of
the plans are conducted for revising the plans according to the latest trends. These audits and
reviews are essential for assessing the effectiveness of the plans, policies and programs.
However, Singh et al (2016) is of the view that consistency in the assessments is beneficial
for the Bank in terms of detecting the additional measures, which are needed for upgrading
the standards and quality of the performance.
Theory X and Theory Y
Every personnel in the workplace possess certain assumptions for the workplace
issues. Specific mention can be made of the assumptions related to the behavioural changes
towards motivation. Mostly, it is observed that if motivation is provided to the staffs, they get

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the urge for exposing better performance. Alagaraja, Meera, and Brad (2015) opine that this
motivation is vital for bridging the gaps, which persist in the approaches towards fulfilling
the duties and responsibilities according to the requirements. According to some of the
tendencies, some of the staffs prefer to work under leaders and avoid extra initiatives and
responsibilities. According to the perceptions of McGregory, Theory X is not an effective
option, as it generates inaccurate results in calculating the benefits on the productivity of the
ANZ banking Group.
Research methodology
Quantitative method would be followed for conducting research on the impact of
motivation on organizational performance of ANZ Banking Group. Positivism philosophy
would be adopted for gaining an insight into the scientific, real and objective knowledge
related to motivation and organizational performance (Quinlan et al. 2019). The research
design in this context would be explorative in terms of excavating the factors, which
motivates the staffs to expose better performance. The approach would be deductive in terms
of deducing the relevant aspects for the impact of motivation on organizational performance.
For collecting data, primary quantitative data would be used. As a matter of
specification, surveys and interviews would be considered. Surveys would be conducted on
50 employees of ANZ Banking Group. Analysis of the data would be done through the
formation of survey questionnaire forms, which would be distributed to the staffs. Along with
this, tables, charts and graphs would be prepared for conducting statistical analysis of the
responses (Bryman 2017).
The population indirectly possesses relationship with the research. However, in order
to cope up with the time and the financial constraints, the researcher would select 50
employees of the ANZ Banking Group. These samples would be selected on a probability
basis, bearing in mind the awareness about the incentive plans and the revisions and updates.
Using primary means of data collection would be assistance for enhancing the
knowledge regarding the impact of motivation on organizational performance. Surveying the
staffs would help the researcher to gain an insight into the approaches of the employees
towards enabling the Bank to accomplish the identified and specified objectives. As a matter
of specification, 50 employees of ANZ Banking Group would be asked questions on the
rewards, incentives and bonus introduced (Almalki 2016). Apart from this, the questions

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would also be directed towards assessing the impact of the incentive plans on the upgradation
of the standards and quality of their performance. 3 managers of the Bank would be
interviewed for gaining an insight into the plans, policies and programs introduced and the
future plans.
Ethical considerations are one of the important aspects for conducting research.
Within this, mention can be made of averting the instances of plagiarism and collusion. As a
matter of specification, not acknowledging the considered sources would be harmful for the
researcher to avert the illegal instances. Along with this, the researcher would adopt liberal
approach towards collecting essential data on the impact of motivation on organizational
performance (Holton, Judith and Isabelle 2016). If the samples feel uncomfortable in the
process, they would be allowed to withdraw from the process. Mention can be made of the
Ethical Consent forms, which the researcher would execute prior to type initiation of the data
collection process. This activity would assist the researcher to avoid the cases of biases and
misunderstanding.
Activities Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week
8
Topic
selection
Gaining
information
on the topic
Formulatio
n of the
aims and
objectives
Literature
review
Data
collection
Data
analysis
Findings
and results
Conclusion

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Evaluation
Making
necessary
changes
Final
evaluation
and sub-
mission
Table: Action plan for the research proposal
(Source: Created by the author)
Contributions
Discussing the significance of the research, two perspectives need to be applied.
These two perspectives are industry and academic.
 Real world- The managers in the current context motivate the staffs by organizing
quality training and development programs. Motivational programs are conducted for
encouraging the staffs to expose better performance. Revision of the policies,
practices and programs help in formulating effective motivational programs for the
staffs. Typical evidence of this lies in structuring the incentive plans, conducting
feedback sessions and signing the ethical consent forms, which aligns with the ethical
considerations. Alagaraja, Meera, and Brad (2015) proposes that in order to cope up
with the financial and time constraints. Incentive plans can be beneficial for the policy
makers to formulate effective policies for luring the staffs of the Bank towards the
mainstream business activities. On the contrary, if the managers revise the incentive
plans, they can detect the areas, in which improvisations are needed for the upgrading
the standards and quality of the performance. Typical example can be cited of the
seminars, lectures and TED talks, which are conducted for inspiring the staffs to
expose better performance. Revision of the incentive structures and disseminating it to
the staffs is beneficial in terms of enhancing the standards and quality of the
professional communication. Feedbacks on the incentive structures are apt in terms of
gaining an insight into the approaches of the staffs towards the incentive policies,
practices and programs (Singh 2016).

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 Academic- Career development plans are conducted by the managers for ensuring
their professional development. This is conducted through the means of involving
them into the mainstream business activities. Action plans seem to be beneficial for
calculating the utility value, which is assistance for mapping the journey into which
the bank would head in the upcoming financial years. In this context, the main aim is
on the ultimate benefit of the staffs. Sponsoring with the brands would be an effective
step in terms of ensuring proper career establishment of the staffs. This is through the
means of offering lucrative opportunities for giving presentations. Systematic
approach in this aspect would be effective for enhancing the communication skills of
the staffs. Within this, Valmohammadi, Changiz, and Mohsen (2015) assumes that
consciousness needs to be attached to the issues of language barriers, which can make
the staffs from different socio-cultural background neglected. Therefore, inclusive
work practices are needed for gaining large scale customer satisfaction.

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References
Alagaraja, Meera, and Brad Shuck. "Exploring organizational alignment-employee
engagement linkages and impact on individual performance: A conceptual model." Human
Resource Development Review 14, no. 1 (2015): 17-37.
Almalki, Sami. "Integrating Quantitative and Qualitative Data in Mixed Methods Research--
Challenges and Benefits." Journal of Education and Learning 5, no. 3 (2016): 288-296.
Anz.com.au(2019). About us. Available at: https://www.anz.com.au/personal/ [Accessed on
25th September 2019]
Bryman, Alan. "Quantitative and qualitative research: further reflections on their integration."
In Mixing methods: Qualitative and quantitative research, pp. 57-78. Routledge, 2017.
Dobre, Ovidiu-Iliuta. "Employee motivation and organizational performance." Review of
applied socio-economic research 5, no. 1 (2013).
Faisal Ahammad, Mohammad, Sang Mook Lee, Miki Malul, and Amir Shoham. "Behavioral
ambidexterity: The impact of incentive schemes on productivity, motivation, and
performance of employees in commercial banks." Human Resource Management 54, no. S1
(2015): s45-s62.
Holton, Judith A., and Isabelle Walsh. Classic grounded theory: Applications with qualitative
and quantitative data. Sage Publications, 2016.
Imran, Rabia, Mehwish Majeed, and Abida Ayub. "Impact of organizational justice, job
security and job satisfaction on organizational productivity." Journal of Economics, Business
and Management 3, no. 9 (2015): 840-845.
Nguyen My, Linh. "The Impact of Employees Motivation on Organizational Effectiveness."
(2017).
Quinlan, Christina, Barry Babin, Jon Carr, and Mitch Griffin. Business research methods.
South Western Cengage, 2019.
Selden, Sally Coleman, and Jessica E. Sowa. "Voluntary turnover in nonprofit human service
organizations: The impact of high performance work practices." Human Service
Organizations: Management, Leadership & Governance 39, no. 3 (2015): 182-207.

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Singh, Rajesh. "The impact of intrinsic and extrinsic motivators on employee engagement in
information organizations." Journal of Education for Library and Information Science 57, no.
2 (2016): 197-206.
Singh, Sanjay Kumar, Thomas F. Burgess, John Heap, Bashaer Almatrooshi, and Sherine
Farouk. "Determinants of organizational performance: a proposed framework." International
Journal of Productivity and Performance Management (2016).
Valmohammadi, Changiz, and Mohsen Ahmadi. "The impact of knowledge management
practices on organizational performance: A balanced scorecard approach." Journal of
Enterprise Information Management 28, no. 1 (2015): 131-159.

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Appendices
Appendix 1
Fig: Detailed explanation of the intrinsic and extrinsic motivation
(Source: Singh 2016)