Case Study: Motivation and Profitability at Barclays, UK Analysis

This case study investigates the impact of employee motivation on the profitability of Barclays, a British multinational financial service and investment bank. It begins with an introduction to the research topic, highlighting the importance of motivated employees in achieving organizational success. The study then outlines research questions and objectives focused on understanding the concept of motivation, analyzing factors affecting motivation at Barclays, assessing the relationship between motivation and profitability, and providing recommendations for improvement. The research methodology employs an objective ontological stance, positivism philosophy, and a deductive approach, utilizing an explanatory research design and simple random probability sampling to collect primary data from 100 Barclays employees. The study ensures reliability and validity by considering the entire employee population and collecting recent, updated data. The literature review delves into motivation theories, factors affecting motivation, and the concept of organizational profitability. It aims to identify gaps in existing research and provide a comprehensive analysis of the link between motivation and financial performance within Barclays.

Running head: IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
Impact of Motivation on Profitability of a Company: Case Study of Barclays
Name of the Student:
Name of the University:
Author’s Note:

1IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
Table of Contents
Submission 1.....................................................................................................................4
Chapter 1: Introduction......................................................................................................4
1.0 Research title and Introduction............................................................................4
1.1 Research question...................................................................................................5
1.2 Research objectives and framework........................................................................5
Chapter 2: Research methodology....................................................................................6
2.0 Research philosophy............................................................................................6
2.1 Research approach..................................................................................................6
2.2 Research design......................................................................................................7
2.3 Sampling technique and size...................................................................................8
2.4 Data collection process............................................................................................8
2.5 Reliability and validity...............................................................................................9
2.6 Gantt chart...............................................................................................................9
Chapter 3: Data analysis.................................................................................................12
Chapter 4: Ethics and values...........................................................................................12
Submission 2: Literature review......................................................................................13
Chapter 1: Introduction....................................................................................................13
Chapter 2: Motivation and organizational profitability.....................................................14
2.0 Conceptual framework...........................................................................................14
2.1 Concept of motivation............................................................................................14
2.2 Factors affecting motivation...................................................................................15
2.2.1 Intrinsic factors................................................................................................15
2.2.2 Extrinsic factors...............................................................................................15

2IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
2.3 Theories of motivation............................................................................................16
2.3.1 Maslow’s theory of motivation.........................................................................16
2.3.2 Herzberg’s two-factor theory of motivation.....................................................17
2.4 Concept of organizational profitability....................................................................18
2.5 Factors affecting organizational profitability..........................................................18
2.6 Benefits of motivating employees..........................................................................19
2.7 Challenges in motivating employees.....................................................................19
2.8 Impact of employee motivation on organizational profitability...............................20
2.9 Literature gap.........................................................................................................20
Chapter 3: Conclusion.....................................................................................................20
References.......................................................................................................................22

3IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
List of Figures
Figure 1: Explanatory research question...........................................................................5
Table 1: Timeline.............................................................................................................11
Figure 2: Gantt chart........................................................................................................11
Figure 3: Conceptual framework.....................................................................................14
Figure 4: Maslow’s theory of motivation..........................................................................17
Figure 5: Herzberg’s two-factor theory of motivation......................................................18

4IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
Submission 1
Chapter 1: Introduction
1.0 Research title and Introduction
The title of the research is “Impact of motivation on the profitability of the company:
Case Study of Barclays, UK.”
Employees are the key pillars that shape the organizations and determine the
success by giving their best for the company. As mentioned by Lazaroiu (2015), the
employees work hard, shows increased commitment and dedication towards their job
roles and responsibilities thereby, ensuring organizational profitability and success.
However, lack of motivation is often noticed that distracts and hampers the performance
of the employees. Employee demotivation is a common problem that business
organizations encounter at regular interval. Demotivation among the employees can
occur due to varied reasons such as work pressure, working environment, culture,
monotonous nature of the work and restricted learning and professional growth.
According to Ahmad et al. (2014), as the employees fail to fulfill their job roles and
responsibilities, the organization is unable to achieve their goals thereby, hampering the
success of the organization. Successful motivation helps in developing a highly
energized, dedicated and committed workforce that ensures organizational profitability.
Completion of individual roles and responsibilities increases productivity thereby,
ensuring organizational profitability. Having a motivated workforce is beneficial for the
business organizations, as the employees work hard, encourages innovation and put in
additional effort for organizational profitability (Njoroge and Yazdanifard 2014).
For this study, the impact of motivation on the organizational profitability will be
studied by taking into account Barclays Bank, UK. Barclays is a British multinational
financial service and investment bank and is headquartered in London with employee
strength of 79,000. Barclays offers personal banking, wealth management, corporate
banking and investment management (Home.barclays 2019).

5IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
Successful motivation (x)
Ensures profitability of a company
The research is significant, as this will help in investigating the impact of motivation
on profitability of the business organization. Additionally, the conduction of the research
will provide an opportunity to analyze the different motivational factors for the
employees on the banking sector and aligning it to the reason of lack of employee
motivation of Barclays. Furthermore, the research will help in assessing the relationship
between motivation and organizational profitability and its impact on the profitability of
Barclays.
1.1 Research question
The questions of the research are:
 What do you mean by motivation?
 What are the factors affecting motivation in Barclays?
 What is the relationship between motivation and profitability of Barclays?
 What are the suitable recommendations for improving motivation in Barclays?
The research question is explanatory type, as it is trying to investigate whether
motivation and profitability are related. Thus, (x) is termed as independent factor and (y)
is termed as dependent factor.
Figure 1: Explanatory research question
(Source: Created by Author)
1.2 Research objectives and framework
The objectives of the research are:
 To understand the concept of motivation
 To critically analyze the factors affecting motivation Barclays
 To assess the relationship between motivation and profitability of Barclays
 To provide suitable recommendations for improving motivation in Barclays

6IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
The objectives of the research were selected to test hypothesis that successful
motivation ensures organizational profitability for Barclays. The research objectives
and the hypothesis outlined follow the SMART framework.
Chapter 2: Research methodology
2.0 Research philosophy
For this study, an objective ontological stance will be used that will help on regarding
the social entity as the independent one signifying that it can be observed and
measured by making quantifiable observations. This will help in making inferences
based on the lack of motivation that has hampered the profitability of Barclays. The
employees of Barclays used for this study are subjected to the same working
environment that are explained in a collective agreement including both intrinsic and
extrinsic factors of motivation such as pay, rewards, promotion, recognition,
appreciation, career career, opportunity to learn new things and positive relationship
and working environment (Mackey and Gass 2015).
In accordance with epistemology, positivism philosophy will be used that is
justified with the philosophical stance of being a natural scientist, as it is the only
observable and tangible facts and data that are considered to be credible. The use of
positivism philosophy will help in proving the null or alternative hypothesis based on the
obtained p-value results. Additionally, the use of positivism philosophy will allow using
factual knowledge about the independent and dependent variables and will help in using
statistical approach for analyzing the data. This means profitability measurements will
be independent of the influence of the researcher and will be used for testing hypothesis
formulated in section 1.2 (Taylor, Bogdan and DeVault 2015).
2.1 Research approach
Two types of research approaches are used while conducting research that
includes inductive and deductive approaches. As mentioned by Lewis (2015), inductive
approach is defined as the approach of inducing new theories and concepts based on
the observations made. On the other hand, the concept of deductive approach
highlights making observations based on the previously existing theories and concepts

7IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
of the identified independent and dependent variables. For this study, deductive
approach will be used.
The use of deductive approach is favored for this research because this will allow
the researcher to refer to theories and concepts of motivation. Referring to previously
existing theories, concepts and pieces of literatures will help in developing a clear idea
and understanding about motivation and its impact on determining profitability for the
business organization. In addition to, the use of deductive approach will help in referring
to theories and models of motivation that act as guideline for the study as well as the
business organizations (Vaioleti 2016). Furthermore, the use of deductive approach will
help in analyzing the impact of each of the factors of motivation by critically analyzing
them from the past researches. As a result, correct observations will be made along
with supporting the observations with relevant information from past researches. The
use of deductive approach will ensure that the aim of the research remains in analyzing
the impact of motivation on profitability and does not shift towards formulating new
theories and models (Silverman 2016).
2.2 Research design
There are three types of research design that can be availed while conducting a
research. The research designs are explanatory, exploratory and descriptive research
designs. According to Flick (2015), descriptive research design consists the dual
characteristics of exploratory and explanatory research design allows exploring as well
as explaining the issues. On the other hand, exploratory research design allows
exploring the potential issue whereas explanatory research design allows explaining the
reason of the issues along with explaining the concepts and the impacts of the factors.
For this study, explanatory research design will used applied. The application of
explanatory research design will help in explaining whether motivation has an impact on
the profitability of the organization thereby, justifying whether motivation and
organizational profitability are related or not. The application of explanatory research
design will help in explaining the concept of motivation and profitability. In addition to,
explanatory research design will help in explaining both the intrinsic and extrinsic factors
of motivation along with highlighting their positives as well as negatives. Explanatory

8IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
research design will also help in comparing and contrasting the findings of the study by
explaining it with the information of the past researches (Smith 2015).
2.3 Sampling technique and size
Selection and implementation of appropriate sampling method is necessary, as
the samples are the main sources for collecting data that will help in fulfilling the
research aim and objectives and accept or reject the null hypothesis. Out of the several
sampling techniques, simple random probability sampling technique and non-probability
sampling technique are most commonly used. According to Bresler and Stake (2017),
simple random probability sampling technique provides equal chances for each of the
individuals within a selected population to be a part of the data collection process. On
the other hand, for non-probability sampling technique, the samples are selected by the
researcher, as this includes communicating personally.
For this study, simple random probability sampling technique will be used. The
use of simple random probability sampling technique is justified, as this will allow the
entire employee population of Barclays to participate in the data collection process. Out
of the entire employee population of Barclays, 100 employees will be selected randomly
whose data will be considered for analyzing the impact of motivation on the
organizational profitability of Barclays (Bauer 2014). The opinions and perspectives of
the employees of Barclays will be collected using the simple random probability
sampling technique that will help in understanding the current motivational issues and
its impact on their work efficiency that is affecting the profitability of the company
(Ledford and Gast 2018).
2.4 Data collection process
The only two data collection processes that are used while conducting research
are primary and secondary data collection processes. According to Choy (2014),
secondary data collection process highlights collection of data from various secondary
sources such as articles, journals, online newspapers, websites and other internet
facilities. On the other hand, primary data collection process highlights collection of
recent data from a selected population that are facing the problem mentioned in the
research.

9IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
As a result, primary data collection process will be used for this study, as this will
facilitate collection of data directly from the employees of Barclays those are suffering
motivational issues currently (Reynolds et al. 2014). Collecting data from the employees
of Barclays will ensure recent and updated data collection that will help in knowing the
current reasons that has resulted in the development of demotivated workforce and how
it is affecting their dedication, willingness and commitment towards their job roles and
responsibilities that is affecting the profitability of the company negatively. Additionally,
gathering primary data will also help in identifying the major factors that has resulted in
employee demotivation at Barclays so that the banking institution can develop
strategies for mitigating the motivational issues (Jamshed 2014).
2.5 Reliability and validity
Validity in the study is ensured by using the entire employee population of
Barclays. This will prevent the researcher from making generalized comments regarding
the impact of motivation on organizational profitability. Using the entire employee
population of Barclays will help the researcher in knowing from the employees itself the
current reason of demotivation for the employees at Barclays. As a result, the
researcher will be able to make suitable recommendations on improving motivation for
the employees of Barclays in accordance with the findings of the study. On the other
hand, reliability is not an issue, as the selected methodologies will restrict biasness and
error to the minimum (Dang and Pheng 2015).
2.6 Gantt chart
In order to increase the reliability and validity of the research, the proposed time
of the research is one year. This is important, as this will help in analyzing the constant
factors that are required for motivating the employees. Additionally, one year is also
considered, as it takes time for obtaining consent from the University, employees and
the selected business organization.

10IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
Timeline
Task Name Duration Start Finish
Project Research
proposal
365 days Fri
1/18/19
Thu
6/11/20
Selection of the
Research Topic
2 days Fri
1/18/19
Mon
1/21/19
Sending it to the
professor for
approval
1 day Tue
1/22/19
Tue
1/22/19
Approval of the
research topic
5 days Wed
1/23/19
Tue
1/29/19
Gathering a good
idea of the topic
40 days Wed
1/23/19
Tue
3/19/19
Reviewing of the
topic
60 days Wed
3/20/19
Tue
6/11/19
Assembling the first
draft
40 days Wed
6/12/19
Tue 8/6/19
Submission of the
first draft
1 day Wed
8/7/19
Wed
8/7/19
Approval of the
first draft
10 days Thu
8/8/19
Wed
8/21/19
Selection of the
research Process
5 days Thu
8/22/19
Wed
8/28/19
Marking out the
research participants
40 days Thu
8/29/19
Wed
10/23/19
Performing the
Primary Research
40 days Thu
10/24/19
Wed
12/18/19
Analysis of the data
obtained from the
primary research
50 days Thu
12/19/19
Wed
2/26/20
Thorough research 50 days Thu Wed

11IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
to discuss the data 2/27/20 5/6/20
Assembling the
final research copy
25 days Thu
5/7/20
Wed
6/10/20
Submission of the
final research
1 day Thu
6/11/20
Thu
6/11/20
Table 1: Timeline
Gantt chart
Figure 2: Gantt chart

12IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
Chapter 3: Data analysis
The demographic groups under the study will be age, gender, job position and
educational level or qualification. Using control factors for the research ensures that the
independent factor is the only variable that is having an impact on the profitability of the
organization. Co-relation and regression analysis will be conducted by using SPSS
software for analyzing the data. Co-relation will help in finding the strength of the
relationship between the factors of the independent variable and dependent variable
and regression will help in accepting and rejecting the null hypothesis if the p-value is
more and less than 0.05 respectively (Riedl, Davis and Hevner 2014).
Chapter 4: Ethics and values
Abiding by the research ethics and values are of utmost significance for
completion of the research work successfully. Data confidentiality is one of the
significant research ethics according to which the identity and the data provided by the
participants are kept confidential thereby, eradicating the chances of personal and
societal conflicts. Additionally, making the participants sign the consent form is also a
significant research ethics, as this ensures willing participation of the participants in the
data collection process. Collecting data from authentic resources, prohibition of data
manipulation, using the data only for academic purposes only and conducting research
without harming any one are other significant research ethics and values that needs to
be followed (Mukhopadhyay and Gupta 2014).

13IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
Submission 2: Literature review
Chapter 1: Introduction
Lack of motivation has been reported in various business sectors including the
banking sector around the world that has resulted in inefficient functioning of the banks
that has resulted in minimized capital for the banks. Such a problem has also been
noticed in Barclays Bank, UK that has compromised with the reputation of the bank.
United Kingdom has prominent banking organizations that work in fields such as wealth
management, inventory management, personal and corporate banking thereby, giving
rise to tough competition (Home.barclays 2019). Thus, surviving in the competitive
market has become a challenge for Barclays, as the employees are not performing their
best. Increased level of demotivation has been noticed among the all the employees
who has been working with the bank for more than 2 years. Lack of motivated
employees is affecting the profitability of the bank, as the employees are showing less
customer engagement, casualness towards their job roles and responsibilities and
failing to achieve their monthly targets (Leary and Baumeister 2017).
Reducing the rate of demotivation is important for the banking organizations, as it
has been seen that motivation ensures organizational profitability (Nicholls 2017). The
banking organizations will have to apply either proactive or reactive motivational
strategies for addressing motivational issues at Barclays. However, it has been seen
that proactive mechanisms such as job satisfaction, workplace independence and
workplace acceptance are more effective than reactive mechanisms. The literature
review section has identified motivation as the independent variable and profitability as
the dependent variable and has outlined the entire chapter by discussing and critically
analyzing the concepts, factors, impacts, benefits, challenges of motivation and
profitability along with mentioning the motivational theories.

14IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
Intrinsic
Acceptance
Satisfaction
Independence
Extrinsic
Rewards
Promotion
Increased salary
Employee motivation Organizational profitability
Chapter 2: Motivation and organizational profitability
2.0 Conceptual framework
Figure 3: Conceptual framework
(Source: Created by Author)
2.1 Concept of motivation
A motive is defined as an impulse that ensures that a person reacts to a
particular situation. As commented by Botvinick and Braver (2015), the concept of
motivation is said to be an internal process that pushes an individual to move towards
the goal. However, as argued by Grunert, Hieke and Wills (2014), motivation is termed
as a psychological aspect of the humans that inspires the individuals to ensure
increased effort for achieving organizational goals and objectives. Thus, it can be
inferred that motivation helps in initiating, guiding and maintaining goal-oriented
behaviors. For the business organizations, it is important to ensure employee
motivation, as this ensures increased productivity and profitability for the business
organizations.

15IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
2.2 Factors affecting motivation
The factors affecting motivation are divided into intrinsic and extrinsic factors that
encourages the employees to give their best for making the organization successful.
2.2.1 Intrinsic factors Acceptance: As mentioned by Cerasoli, Nicklin and Ford (2014), it is necessary
for the business organizations to accept the employees within the working culture
and environment. As a result, the employees feel motivated that makes them
comfortable and work at ease that facilitates bringing out the best out of them.
However, as argued by Mayer (2014), not only the business organizations but
the employees also need to accept the business organizations thereby, ensuring
successful motivation. Satisfaction: As commented by Jain and Kaur (2014), employees can be
motivated successfully if business organizations are able to ensure job
satisfaction. Job satisfaction can be achieved by providing suitable working
environment and culture for the employees. However, as criticized by Navimipour
and Zareie (2015), once achieved, the factors affecting job satisfaction keeps on
changing thereby, making it difficult to achieve employee motivation. Independence: According to Basilisco and Cha (2015), employee motivation can
be achieved if the employees are given the independence of working according
to their own convenience. As a result, the employees are able to concentrate
more thereby, increasing the productivity of the company. However, as criticized
by Long et al. (2014), some of the employees develops higher level of
casualness towards their job roles and responsibilities without being motivated in
respect to worktime independence.
Thus, it can be inferred that Barclays in the UK has been unable to implement intrinsic
motivational factors successfully that is hampering the profitability.
2.2.2 Extrinsic factors Rewards: As mentioned by Hennessey et al. (2015), rewards is an external
motivational factor that helps in employee motivation The business organizations
has to identify the great work of the individual employees and reward them for

16IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
their effort, hard work and time for the business organizations accordingly.
However, argued by Lepper and Greene (2015), rewards does not signify
employee motivation, as the factors of motivation for individual employee are
significantly different. Promotion: Promoting the employees ensure motivation, as they feel valued and
significant for the business organizations. As opined by Adinli, Bertini and
Lambrecht (2014), promoting the employees make them feel that their effort for
ensuring organizational profitability is acknowledged and appreciated. However,
as argued by Sarboini (2016), promotion comes with big responsibilities for the
employees that is often difficult for the employees. Increased salary: Increasing the salary for the employees influences motivation.
According to Kooij, Bal and Kanfer (2014), increased salary gives financial
security and improved standard of living for the employees thereby, motivating
them. The keenness of being paid more acts as a motivation thereby, giving their
best for ensuring organizational success. However, as argued by Nielsen et al.
(2014), increased salary distracts the employees thereby, hampering their ability
to stick to the organizational goal.
Thus, it can be inferred that Barclays in the UK has been unable to implement intrinsic
motivational factors successfully that is hampering the profitability.
2.3 Theories of motivation
2.3.1 Maslow’s theory of motivation
Maslow’s theory of motivation highlighted that all the employees have specific
needs to satisfy and that all work towards satisfying those needs. According to Ozguner
and Ozguner (2014), Maslow’s theory of motivation, needs is defined as what is needed
by the individuals. Maslow’s theory of motivation have divided individual needs into
psychological needs, safety and security, love and belongingness, self-esteem and self-
actualization. Individuals are motivated to work towards fulfilling their basic needs such
as hunger and trust. The individuals also work for feeling financially safe and secured
followed by having a good social company. The individuals also work for having a better

17IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
feeling within oneself by realizing own potential. Thus, the employees feel motivated for
fulfilling as well as satisfying their daily needs.
Figure 4: Maslow’s theory of motivation
(Source: Zameer et al. 2014)
2.3.2 Herzberg’s two-factor theory of motivation
Herzberg’s two-factor theory of motivation is based on the concept of satisfactory
and dissatisfactory factors. According to Kultalahti and Liisa Viitala (2014), fulfillment of
satisfactory factors results in motivation but unable to do so results in dissatisfaction
thereby, demotivating the employees. Therefore, the human resource management
need to take into account the satisfactory factors of the employees and develop
strategies for eradicating the dissatisfactory factors. Due to the distinctive nature of the
employees, the satisfactory and dissatisfactory factors vary accordingly. The
satisfactory factors of the employees can be job responsibility, advanced career
opportunities, secured job and suitable working conditions. However, the dissatisfactory
factors can occur due to salary, supervision, organizational policies and relationship
with co-workers. The employees feel highly motivated and achieve the desired results
successfully provided they are satisfied at job. However, satisfaction is not a constant
things and keeps on changing due to varied needs thereby, making employee
motivation difficult to achieve (Sanjeev and Surya 2016).

18IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
Figure 5: Herzberg’s two-factor theory of motivation
(Source: Purohit and Bandyopadhyay 2014)
2.4 Concept of organizational profitability
The principle aim for all the business organizations regardless of the size is to
generate profit. Profitability is defined as the remaining revenue for a business after
completing all revenue related functions. As mentioned by Folajin, Ibitoye and Dunsin
(2014), organizational profitability is defined as the ability of the business organizations
for generating money greater than the income. The business organizations need to
calculate their return on investment for determining whether profit has been made or
not. However, as argued by Lun et al. (2016), organizational profitability is also defined
as the technique that is undertaken by the business organizations for remaining
successful in business, attracting investors and analysts and surviving the tough and
competitive market.
2.5 Factors affecting organizational profitability Size: The size of the bank is a major factor that affects organizational
profitability. As mentioned by Kalkan, Bozkurt and Arman (2014), the large size
of the business organizations highlights the success rate of the companies. The
profitability of the business organizations provided an opportunity to increase the
size of the company over time. However, as argued by Khidmat and Rehman

19IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
(2014), size does not always signify organizational profitability, as smaller
organizations generate profits at a national level. Recession: Recession is a major factor that determines the profitability of the
banking institutions. Recession hits the economy of the country hard and the
inflation and the deflation rate affects the profitability negatively. It becomes
difficult for the banking organizations to cope up with the loss (Bamiatzi et al.
2016). Brand image: The image of the banking institutions also affect the organizational
profitability. The past decade has seen the rise of several banks that has resulted
in tough competition. Thus, the image of the bank in terms of secured deposit
and granting loans and giving suitable advices helps in improving the image of
the bank thereby, ensuring profitability (Saleem and Raja 2014).
Thus, for Barclays, the company has been unable to cope up with the recession that hit
UK in 2008 and have encountered some customer complaints that has hampered the
profitability of the organization.
2.6 Benefits of motivating employees
Employee motivation is a critical aspect and significant to achieve at workplace
and requires a regular routine as it keeps on changing. According to Abbah (2014),
employee motivation results in increased and improved employee commitment that
pushes them for giving their best effort for conducting and fulfilling the task allocated to
them. However, as argued by Shahzadi et al. (2014), motivated employees shows
improved employee efficiency that is expressed by their ability to perform task and their
willingness to perform task and this balance in the employees results in increased
productivity and profitability.
2.7 Challenges in motivating employees
Motivating the employees continuously and successfully is a difficult process and
requires continuous work and effort. According to Perry and Vandenabeele (2015), due
to the distinctive nature of each of the employees, implementing different strategy for
motivating each employees is difficult. It is time-consuming and impose additional
financial burden on the human resource management of the companies. However, as

20IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
argued by Bhuvanaiah and Raya (2015), the continuously changing needs makes it
difficult to motivate the employees. For instance, if the employee is motivated, as this
work has been appreciated on the other hand, demotivation may occur due to no salary
increment due to hard work and effort.
2.8 Impact of employee motivation on organizational profitability
Employee motivation affects organizational profitability both positively and
negatively. As mentioned by Bin (2015), having a motivated workforce provides an
opportunity for the business organizations to achieve organizational goals and
objectives by improving employee engagement, commitment and efficiency. As a result,
the business organizations are able to survive in the competitive market by gaining
competitive advantage. However, as argued by Dekoulou and Trivellas (2015), having a
motivated workforce but not strategically aligned hampers organizational profitability, as
the employees have separate agendas and objectives to fulfill.
2.9 Literature gap
After conducting the literature review, a potential gap has been identified.
Literature studying impact of employee motivation on profitability for banking sector is
comparatively studied less that resulted in old and outdated information and failed to
reflect the current scenario.
Chapter 3: Conclusion
Thus, in this chapter, it can be concluded that motivation is a subject of interest
and extensive researches have been conducted in the past taking this variable in
different context including banking sector. Rom the information provided in the literature
review, it can be said that motivation is one of the key determinant for organizational
profitability. Examples suggest that motivation helps in improved employee engagement
and satisfaction and influences the employees for better performance and dedication
towards their job roles and responsibilities. Both intrinsic and extrinsic factors results in
employee motivation that ensures organizational profitability of Barclays. Improved
employee motivation allows better customer engagement, achieving monthly and daily
targets and proactive attitude towards work that improves sales of the banking

21IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
organizations. The employees at the bank communicate effectively with the customers’
convincing them to purchase their baking products thereby, increasing the sales. Due to
the distinctive nature of the employee, identifying the motivational factors for each of the
employees is difficult as well as challenging. Motivational factors keep on changing
according to the changing needs of the employees thereby, making it difficult to achieve
employee motivation consistently and constantly. Thus, the banking organizations has
to keep on investigating the employee motivational factors for ensuring organizational
profitability.
Much of the evidence provided highlights that motivation is of utmost significance
for the profit of the business organizations. The research will emphasize on Barclays
bank that is one of the largest bank operating in the UK with employee strength of
79,000 across the various branches.

22IMPACT OF MOTIVATION ON PROFITABILITY OF A COMPANY
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