Employee Motivation Theories and Practice

This assignment delves into the realm of employee motivation, examining a range of prominent theories such as Herzberg's two-factor theory, Maslow's hierarchy of needs, Goal-Setting Theory by Locke and Latham, Expectancy Theory, and Reinforcement Theory. It also analyzes the impact of organizational culture, leadership styles, and psychological contracts on employee motivation. Students are tasked with understanding the practical implications of these theories for fostering a motivated and engaged workforce.

Running head: BUSINESS RESEARCH
Business Research
[Literature Review]
Name of the Student
Name of the University
Author Note

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Table of Contents
Literature Review............................................................................................................................2
Rewards and motivation..............................................................................................................2
Organizational Culture and Motivation Factors..........................................................................3
Theories of Motivation and Employees’ Performance................................................................3
Hierarchy of needs theory by Maslow.........................................................................................4
Herzberg Two Factor Theory......................................................................................................6
Expectancy theory of Vroom.......................................................................................................8
Employee Performance, Employee Motivation and Organizational Culture............................10
Link between motivation, performance and rewards................................................................12
Reference List................................................................................................................................14

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Literature Review
A large number of researches followed by gathering evidences reading the diverse issues
related to organizational culture have been done. The literature review section includes all the
stages of maintaining a good organizational culture, the psychology of culture and impact created
by maintaining a good culture on the performances and motivation level of employees working
in supermarkets of Australia (Sheridan, 1992). In the previous years, researches have been done
though considering the importance of organizational culture and its impact on the performances
of employees; still it is considered as one f the most debated topic in researches. The researchers
have tried their level best to find out the link between culture and motivation, performances and
production of employees. The surveys are done along with distribution of survey questionnaires
to customers to gain their feedbacks and responses regarding the impact of culture of
organization on performances and motivation of employees. Here, Australian supermarkets have
been considered for conducting the research efficiently and understand the cultural impact on
enhancement of employee performance and motivation (Hartog and Verburg, 2004).
Rewards and motivation
The organizations are of the view that motivation can be provided to the employees based
on certain behaviors. The intention of the rewards is to motivate the employees so that they can
be efficient in achieving the goals of the organization. It plays an important role in uplifting the
commitment of the employees so that they can maintain a better rate of performance and ensure
stability within the work place.
The role of rewards is to motivate the particular behaviors within the employees so that it
helps them in increasing their productivity and eliminating the behaviors, which may prove

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detrimental for the growth of the organization. The employees will show those behaviors that
will help them in earning rewards within the organization, which can be explained through the
motivational theories in a better manner.
Organizational Culture and Motivation Factors
The culture maintained within organizations can help in maintaining common values and
beliefs that are needed to be followed by the employees to form their behavioral patterns. Gordon
and DiTomaso (1992) stated that the culture of organizations indicate the process of allowing
human mind to think for differentiating the members of one group from another group. The
factors of motivation are manageable through development of good organizational culture and
for accomplishing the desired goals and objectives with ease and effectiveness (Joo and Lim,
2009). The various motivational factors are appraisal, monetary and non-monetary rewards
provided to them, incentives, growth scopes social security as well as authoritative positions
offered. Previously, researches have been conducted considering the supermarkets in Australia
such as Woolworths and Aldi. Both these super markets have adopted good organizational
culture and thus the retention rate of employees have increased too with lesser turnover (Ismail
Al-Alawi, Yousif Al-Marzooqi and Fraidoon Mohammed, 2007). The presence of good culture
has increased the need for motivational factors to derive the performances of workers and satisfy
them too by fulfilling their needs and requirements. The paying of money based on the
performances of employees, appraisal of performances, providing them both monetary and non-
monetary rewards are other motivational factors followed within the Australian supermarkets to
improve the performances of workers and level of motivation (Pinder, 2014).

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Theories of Motivation and Employees’ Performance
The research is conducted to focus on the areas where motivational theories have been
applied. The Maslow’s hierarchy of needs theory, Hertzberg two factor motivation theory and
expectancy theory are few of the major theories that the researchers have focused on. These
theories can help in managing satisfaction of employees and drive their performances to
contribute efficiency to the company (Gagné and Deci, 2005).
Hierarchy of needs theory by Maslow
The Maslow’s hierarchy of needs theory consists of five different levels which can allow
for motivating the employees in an effective manner. The psychological needs of employees are
met to keep them motivated and remain involved with the organization for longer time. All the
levels are needed to be passed on by the employees for gaining satisfaction to the highest level
while the self actualization needs allow for creating highly motivated staffs who can accomplish
the goals and objectives of the organization easily (Ramlall, 2004).

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Figure 1: Maslows's theory on Hierarchy of Needs
(Source: Taormina and Gao 2013)
The self-actualization is the need that of the topmost priority, which helps in satisfying
the employees. This need is open in nature, which suggests that it cannot be fulfilled at all times.
The theory states that only a part of the entire employee population can be satisfied with the level
of self-actualization. This motivation helps in offering the employees an opportunity to be
involved in activities such as innovating and creating new development in the work process
(Cherry 2014).
The needs of the employees also need to be heard within the organization so that they can
get a sense of belongingness within the organization. The esteemed needs are presented in two

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ways within the organization; firstly it helps the employees in being satisfied externally and
secondly being satisfied internally. The motivations that are included in esteem needs are the
realization of accomplishment and self-respect by the employees within the organization, which
helps them in earning reputation and recognition (Jerome 2013).
The social needs as suggested in the theory states that it helps the employees in getting
involved in the social activities such as friendship with the other employees and groups.
The physiological needs help in driving the employees forward so that they can fulfill
their basic needs, which will help them in sustaining their lives. These needs are inclusive of the
food, water and sleep that is required by the employees so that they can live in a proper manner
(Taormina and Gao 2013).
Herzberg Two Factor Theory
The Hertzberg two factor theories also create a positive impact on performances of
employees and achievement of higher production level. The motivational factors of this theory
can be useful to keep the needs and requirements of employees fulfilled and ensure satisfaction,
which has direct connection with the enhancement of employee performance (Lindner, 1998). If
the factors of motivation are absent, the employees will not be satisfied that can further lead to
degraded performances and lack of productivity within the supermarkets of Australia (Herzberg,
1968).
To oppose this fact, researchers have determined the negative impact that can be brought
upon the performances of employees due to the theories of motivation. They proposed that if the
employees are unable to pass through all the levels of the motivational theories, there their
performances would not improve and it might even pose some serious threats on the organization

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(Weiner, 1972). This would lead to creation of an ineffective workforce that would lack focus on
the organizational activities, goals and objectives that were needed to be accomplished. In case
the security needs are not fulfilled by employees, then their mind will get diverted from the
business activities rather than committing to the achievement of goals and objectives of the
organization (Latham and Pinder, 2005).
Figure 2: Hertzberg Two-factor theory
(Source: Lin et al. 2015)
The researchers have considered the hygiene factors to determine the negative relation
between the theories of motivation and performances of employees within the supermarkets
based on the Hertzberg two-factor motivational theory. The hygiene factors included wages paid
to workers, link between managers and co-workers, benefits such as growth opportunities and
incentives along with policies of the company (Locke and Latham, 2004). The workers get
money for their performance and so it is important to provide them with sufficient amount of
wages, promotions, incentives and growth opportunities, otherwise it can result in de-motivating

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them and thus create lesser productivity and lack of performances of workers too (Alshmemri,
Shahwan-Akl and Maude 2017).
Thus, the arguments relating to the positive and negative impacts of motivational theories
on employee performance have been illustrated here. The various theories can not only help in
motivating the employees in an effective manner but also will enhance their performances
overall. In any other cases, it can result in declining their performances abilities too due to the
lack of fulfillment of motivational needs too (Lin et al. 2015).
Expectancy theory of Vroom
Figure 3: Expectancy Theory
(Source: Miner 2015)
The theory of Victor Vroom was based on a paradigm shift, as it provided a different
perspective than the existing theories. The expectancy theory was based on the desirability
function, which helped in assessing the outcome of the behavior of the employees. This theory is
also known as the path-goal theory, which helps in highlighting the rewards that are given to the
employees based on particular behaviors of them within the organization. The employees will be
of the belief that a particular behavior attributed by them will help them in earning rewards,
which will act as motivation for them (Kiatkawsin and Han 2017). The theory also states that the

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factors of performance and efforts help the employees in getting motivated within the
organization. The theory stresses on three factors, which are as follows:
 Expectancy- It helps in dealing with the level of profitability that can be achieved
if the effort of the employees is put in the right manner, which will increase the
chance of getting rewarded. It is also affected by the following factors:
a. The availability of the right resources, which may include time and raw materials
b. The right kind of skills that the employees need to have for performing the job
c. The support that the employees will receive for performing the job such as the support of
the supervisor, which will help in efficiently performing the job
 Instrumentality- This deals with the delivery that the employees provide with the
materials that they get within the organization. The factor of instrumentality is
affected by the following things:
a. There has to be a clear understanding in the relationship between outcome and
performance such as the rules need to be established for the reward system
b. The people needs to be trusted so that the decisions can be based on the outcomes of their
performance
c. The process needs to be transparent so that the employees can be aware of the rewards
that they are getting from the organization
 Valence- It is an important value, which helps the employees in placing their
outcomes. If the valence of the individual turns out to be positive, it would help in
achieving the outcome. A negative valence will show that the employees will
avoid the work within the organization. The employees need to put value over the
outcome, which will help in changing their efforts. Therefore, it can be said that

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effort is directly proportional to the outcome. It is also based on the following
factors that depends on the perception of the employees:
a. Increasing the performance of the employees will not depend on an increased effort put
by them
b. The rise in the effort put in by the employees will not help in increasing their rewards
(Miner 2015)
Employee Performance, Employee Motivation and Organizational Culture
(Source: plankcenter, n.d.)
A wide range of research activities have been managed for expanding the literature
review section as well as establish a relation between the culture of organization and
performances and motivation of employees. The three major aspects, i.e., the organizational
culture, performances of employees and motivation are linked with each other and can create
impact on each other. By keeping the employees motivated and encouraged, their performances
would improve and this would result in enhancing the production level and furthermore create a
robust culture consisting of integrated sets of behaviors along with the values and beliefs that are

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needed to be maintained by the employees while working within the supermarkets of Australia.
By following a good organizational culture, the employees would remain focused on their
individual goals and objectives and achieve those with ease (Ivancevich, Matteson and
Konopaske, 1990). The researchers have also formed an interconnection between the employee
performance and organizational culture and this is directly related to the organizational
efficiency. The individual factors play a major role in developing efforts, skills and knowledge
for creating a relationship between the culture, motivation and performances of the employees.
One of the major sources of managing coordination and integral integration could be the culture
of the organization, because it facilitates the commitment of employees towards the organization
and ensures social interaction between the new and existing employees. The string culture helps
in allowing for the growth and development of employees and furthermore motivates them to
contribute their best. This enables motivating and encouraging them to work harder through
integration of organizational policies with the factors and theories of motivation (Egan, Yang and
Bartlett, 2004).
By improving the organizational culture, the motivational factors can be adapted quite
conveniently and this will create more scopes and opportunities for motivating the employees to
work harder and gain satisfaction too. The supportive organizational culture will allow the
organization to provide necessary support to them for enabling increased motivation and
encouragement all throughout. It can be understood by the positive outcomes that will be derived
based on their performances. The organizational culture that is string can create string values and
beliefs that are needed to be maintained by the employees for influencing their potential
performances within the workplace. The organizations have different culture and thus unique set
of cultural values must be maintained within the organizations for enabling diverse, varied

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motivational factors, and enhance the level of employee performances (Lok and Crawford,
2004).
Link between motivation, performance and rewards
The motivation process needs to build up a partnership between the employees and the
management. The managers play an important role, as they have an understanding of the
relationship between motivation, performance and rewards so that the employees can remain
motivated in the work place. The important elements that help in creating a link are as follows:
Creation of an enable environment- The managers in an organization needs to motivate
the employees so that the employees can overlook the situations under which they are working in
the organization. The environment needs to be conducive if any negative attitude is present
within the organization, which may make it difficult to provide motivation to the employees. The
managers need to ensure that they reward or punish the employees with positive or negative
behavior within the organization so that it helps in bringing out the maximum effect within the
organization (Lepper and Greene 2015).
Communication- It is an important part in the process of organization so that it helps in
motivating the employees within the organization. The managers need to take note of the regular
appraisals that may be crucial in motivating the employees and articulating the business
objectives. The process of communication helps the employees in getting the information in a
clear manner within the organization (Shields et al. 2015).
Clarification of the role- The clarity of the role that the employees carry out in the
organization depends on the information that is provided to the employees and the outcome that
is expected from the roles. The clarification of the roles helps the employees to perform better

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and be committed towards the job, which helps them in receiving motivation. These employees
are more likely to be motivated and committed towards the work process when they are clarified
about the job or role that they will be carrying within the organization (McDermott et al. 2013).
Coaching- It helps in raising the level of motivation among the employees when properly
carried out within the organization. The styles of management have taken note that with the help
of coaching it helps the employees in taking a paradigm shift from the management style that is
traditional in nature so that they can be productive within the organization.
Feedbacks- The feedbacks that are provided by the employees to the managers help in
providing motivation. It helps the employees in getting recognized and praised from the
superiors for the services that they have delivered within the organization. Feedback acts as an
intrinsic tool in motivating the employees and allows the management in focusing on the area
that may need improvement within the organization (Lepper and Greene 2015).

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Ivancevich, J.M., Matteson, M.T. and Konopaske, R., 1990. Organizational behavior and
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