The Influence of Motivation on Employee Performance at BHP Billiton

This report examines the impact of motivation on employee performance and organizational effectiveness at BHP Billiton, a major mining company. It investigates the company's practices for measuring employee performance, the effects of salary increases, and motivational programs. The research addresses key questions regarding the influence of motivation on organizational effectiveness and provides recommendations for enhancing human resource management practices. The study reviews relevant literature, establishes a conceptual framework, and explores various motivation theories, including drive theory, incentive theory, Maslow's hierarchy of needs, Herzberg's motivation-hygiene theory, and Frederick Taylor's scientific management. The methodology employed is a positivism philosophy with an explorative research design. The report concludes with findings, recommendations, and references to support the analysis, aiming to provide valuable insights for researchers and organizations seeking to improve employee motivation and performance.

Running head: MANAGEMENT
PROFESSIONAL PROJECT
Name of the student:
Name of the university:
Author note:

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Executive summary
Employees are the assets of a company and organization. Their performance determines the
nature of the operations. Scoring the performance is a means for recognizing the talents.
Motivation and encouragement are crucial components for enhancing the standards and
quality of the employee performance. In case of BHP Billiton, mention can be made of
motivational programs, which generates interest within the employees to expose better
performance. Revision of the pay scale structure is one of the other initiatives from the
managers to lure the employees. Using performance management systems is beneficial in
terms of estimating the direction in which the business would head in the upcoming financial
years.

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Table of contents
Introduction................................................................................................................................3
Overview of the company......................................................................................................3
Problem statement..................................................................................................................3
Research aim..........................................................................................................................4
Research objectives................................................................................................................4
Research questions.................................................................................................................4
Significance of the study........................................................................................................5
Research hypothesis...............................................................................................................5
Literature review........................................................................................................................5
Conceptual framework...........................................................................................................6
Concept of motivation............................................................................................................6
Concept of organizational effectiveness................................................................................7
Impact of motivation on organizational effectiveness...........................................................8
Theories of motivation...........................................................................................................8
Drive theory.......................................................................................................................8
Incentive theory..................................................................................................................9
Maslow’s hierarchy of needs.............................................................................................9
Herzberg’s motivation-hygiene theory..............................................................................9
Frederick Taylor theory of scientific management............................................................9
Methodology............................................................................................................................10
Data analysis............................................................................................................................11
Secondary.............................................................................................................................11
Discussion................................................................................................................................17
Findings from the themes.....................................................................................................18
Conclusion and recommendation.............................................................................................18
References................................................................................................................................19
Appendices...............................................................................................................................22
Appendix 1...........................................................................................................................22
Appendix 2...........................................................................................................................22
Appendix 3...........................................................................................................................23
Appendix 4...........................................................................................................................24

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Appendix 5...........................................................................................................................24

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Introduction
Motivation is one of the agents, which helps the individuals to gain self-confidence
for performing the actions in an efficient and effective manner. Motivation proves to be
essential for recognizing the need for enhancing the personality. In case of the business
context, the managers assume the role of motivator, so that the employees get an urge to
expose better performance (Hu & Liden, 2015). Within this process, rationality and logical
reasoning is needed for improvising on the stability in the relationship between the managers
and the employees. This research aims to conduct research on the impact of motivation of
enhancing the organizational effectiveness of BHP Billiton.
Overview of the company
BHP Billiton achieves accolades and glory by emerging as one of the reputed Anglo-
Australian mining company in Melbourne, Australia. Operating under the metals and mining
industry, the company has been enlisted as LSE: BLT. Founded in 1860, the operations of the
company are spread worldwide, which reflects a stable and flexible supply chain network. As
a matter of specification, the company deals in the products of iron ore, coal, petroleum,
nickel, natural gas and uranium. According to the annual report of 2018, the annual revenue
of the company was US$ 43.638 billion (Bhp.com, 2019). The operating income as recorded
as US$ 17.561 billion and the net income was US$ 4.823 billion. The major drive behind this
is the skilled efforts of 62000+ employees.
Problem statement
Employees are considered to be the asset of a company and organization. The
business practices revolve around their satisfaction for increasing the sales revenue and profit
margin. Professional relationships are vital for exposing collaborative approach, which is
beneficial in terms of adding value to the productivity. In case of BHP Billiton, leadership
approaches are undertaken for motivating the employees to perform the tasks according to the

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requirements (Bhp.com, 2019). Corporate Charter is an essential doctrine for the organization
in terms of improvising on the operational excellence through the means of sustainable
development. This research attempts to investigate the impact of salary hikes, motivational
lectures and seminars on the performance of the employees at BHP Billiton.
Research aim
The aim of this research is to assess the impact of motivation on the performance of
the employees at BHP Billiton.
Research objectives
 To investigate the methods used by BHP Billiton for measuring the performance of
the employees
 To analyse the benefits of the salary hikes on the performance of the employees at
BHP Billiton
 To excavate the impact of motivation on enhancing the organizational effectiveness of
BHP Billiton
 To suggest recommendations for upgrading the standards and quality of the human
resource practices of BHP Billiton
Research questions
 What impact does motivation create on enhancing the organizational effectiveness of
BHP Billiton?
 What recommendations can be suggested for uplifting the standards and quality of the
human resource management practices in BHP Billiton.
Significance of the study
This research acts as a secondary source of information for the researchers intending
to conduct further research on human resource management practices in different business
settings. Along with this, the research is also helpful in terms of mapping the feasibility of

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salary hikes and motivational programs in the current workplace scenario of organizations
like BHP Billiton. Apart from this, the research is also an agent in terms of gaining awareness
about the ways in which the employees can be motivated for performing the activities
according to the plans and requirements. Moreover, the research is an important means of
information for the research to improvise on standardizing the internal environment.
Research hypothesis
H0: Motivation does not impact the organizational effectiveness of BHP Billiton
H1: Motivation heavily impacts the organizational effectiveness of BHP Billiton
Literature review
This segment discusses the scholarly reviews on the subject matter of the research.
Conceptual framework summarises the crucial concepts or variables establishing crucial
linkages between the dependent and the independent variables. Theories and models are
incorporated for adding justification towards making the propositions about the impact of
motivation on enhancing the organizational effectiveness of BHP Billiton.

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Conceptual framework
Fig: Conceptual framework
(Source: Created by the researcher)
Concept of motivation
Motivation shapes the behaviour of individuals. Encouraging the employees help in
realizing the potentials and capabilities for executing the responsibilities. According to
Navimipour and Zareie, (2015), gaining motivation from the external sources is the extrinsic
motivation. If the encouragement is achieved from the internal sources, it is known as the
intrinsic motivation. Motivation and encouragement are the agents, which drives the
individuals towards their goals and objectives. In the business context like the fashion retail
industries, employees are motivated by involving them into the lectures, programs and others,
which are essential for disseminating essential information regarding improvising the
standards and quality of performance.
Monetary
incentives
Employee
well being
Non-monetary
incentives
Organizatio
nal
programs
and policies
Herzberg’s two
factor
motivation
theory,
Maslow’s
hierarchy of
needs
Improved
productivity

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Motivation is based on motives and goals. The methods adopted by the managers for
motivating the employees affect their attitudes towards performing the tasks according to the
requirements. As stated by Mohrman and Lawler, (2017), satisfaction is an essential
component in this context, which assesses the extent of motivation. This provision of
motivation is a complex process, which needs logical reasoning and rationality for gaining
respect, trust and dependence from the clients and the customers.
Concept of organizational effectiveness
Effectiveness in an organization is related with adopting the right practices for
accomplishing the identified and the specified objectives. On the contrary, efficiency
signifies the adoption of relevant resources for developing the best practices. Considering
social parameter in the business practices aligns the practices with the expectations of the
clients and the customers. In the electrical industries, evaluation of the practices is assistance
for mapping the feasibility of the practices in terms of achieving sustainable development.
As per the arguments of Posey, Roberts and Lowry, (2015), there are several
approaches to organizational effectiveness- goal attainment, system approach, strategic
constituencies and competing value approach. Goals are primary agents for an organization
in terms of upgrading the standards and quality of the performance. These goals need to be
realistic and achievable, which reflects the measurability. Allotting time helps in evaluating
the time and resources, which can be beneficial for carrying out the tasks. In this context,
mention can be made of the capability analysis, which is beneficial for the food and beverage
industries for measuring the extent to which the performance aligns with the elements and the
criteria. System models are used for enhancing the sustenance factors.
In case of the constituencies approach, Dunne et al., (2016) states that effectiveness of
construction industries is calculated in accordance to the ability to fulfil the strategic goals

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and objectives. Balance between the internal and external environment is considered to be a
vital aspect for developing best practices.
Impact of motivation on organizational effectiveness
Motivation and organizational effectiveness are directly proportional to each other. In
most of the cases, the industries focus on monetary rewards for motivating the employees. In
this case, it can be established that employees are not motivated only through the means of
monetary rewards. Their approaches towards the execution of the allocated tasks also hold
equal significance in terms of calculating the capability. Motivation makes the employees
realize their potentials, which helps them to gain awareness about the skills, competencies
and capabilities. As per the assumptions of Argyris, (2017), this awareness is further
assistance for assessing the decision making skills, abilities and competencies towards
fulfilling the goals and objectives.
Workplace environment and relationship with the top level managers are crucial
factors influencing the performance of the employees in the industries of food and beverage.
These factors generate satisfaction in the minds of the employees, generating the urge for
exposing productive performance. Motivation is considered to be an important source for
preparing the employees for handling the competitive environment of the market. Lăzăroiu,
(2015) is of the view that the managers motivating the employees reflect the use of cultural
elements and resources, diversifying the scope and arena of the business operations.
Theories of motivation
Drive theory
This theory relates with the push and pulls factors of motivation. In this theory,
behaviour exposed by the employees is considered to be the push factor, driving towards the
goals and objectives identified by the organization. Internal driving state relates with the
arousal, depicting the intensity.

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Incentive theory
According to the essence of this theory, incentives are considered to be an agent,
which generates an urge within the employees to display better performance. According to
Lloyd et al., (2015), incentives are considered to be an agent, attracting the employees
towards accomplishing the goals and objectives.
Maslow’s hierarchy of needs
Each individual has certain needs, which is recognized through the means of
motivation and self awareness. According to this theory, hierarchy of needs reflects the
means of satisfaction, which is crucial for fulfilment of the needs, demands and requirements.
In business context, needs of the employees are safe and congenial working environment,
safety and motivation, which enhances their social status. Along with this, mention can be
made of the need of self actualization, which enhances the professionalism.
Herzberg’s motivation-hygiene theory
According to Herzberg, the motivators are achievement, recognition, responsibilities,
which generates satisfaction within the employees for exposing better performance. On the
contrary, Li et al., (2015) states that hygienic factors like supervision, relationship issues,
poor working conditions, adversely affects the performance of the employees.
Frederick Taylor theory of scientific management
The aim of this theory is to improve the economic efficiency and productivity,
contradicting the efforts of the employees towards accomplishing the goals and objectives.
On the contrary, Taylor is of the view that money is the primary agent, which generates
interest within the employees to work. Counter arguing this statement, monetary rewards like
incentives lure the employees towards a brand, where their talents are exploited. Jiang and
Liu, (2015) is of the view that in the modern business context, differential piece rate systems
have found their applicability for attaching proper valuation to the efforts of the employees.

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Methodology
For conducting the research, positivism philosophy has been adopted for developing
scientific, real and objective knowledge regarding the impact of motivation on the
performance of BHP Billiton. In the process of designing the research, the researcher felt that
explorative design is beneficial in terms of exploring the unexplored realms of motivation
and its impact on the overall productivity of BHP Billiton. Mackey and Gass, (2015) is of the
view that Deductive approach seemed to be effective in terms of deducing relevant
conclusions and recommendations regarding the role of motivation in upgrading the
productivity of BHP Billiton. For collecting necessary data, the researcher has mostly focused
on secondary data. However, this data has been supported by qualitative data.
Quinlan, Babin, Carr and Griffin, (2019) makes mention that various themes related
to the impact of motivation on productivity of BHP Billiton have been developed for
evaluating the approaches of the employees and managers. Apart from this, the researcher
adheres to the standards and protocols of Data Protection Act (1998) for protecting the
responses from commercialization (McCusker & Gunaydin, 2015). The researcher has duly
acknowledged the sources considered, which helps in averting the instances of plagiarism and
collusion. These aspects reflect the ethical consideration, which has helped in conducting the
research in an efficient and effective manner.
Data analysis
Secondary
RQ1. What impact does motivation create on enhancing the organizational effectiveness
of BHP Billiton?
Theme 1: High customer satisfaction enhances the workplace culture

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Fig: Turnover rates of BHP Billiton in 2009
(Source: Bhp.com, 2019)
In 2009, the revenue of BHP Billiton was US$ 44 billion. The operating income was
US$ 12 billion, which acted assistance in increasing the profit margin to 6 billion US$. In
terms of the products, the turnover rates, stands as follows:
The highest percentage is accounted by steel, which is 45.80%. In order to reduce the
turnover rate, the employees were encouraged to participate in the Fatal Risk Control
Program Awareness. The main focus was on increasing the efficiency in the production of the
base metals. Motivational videos were circulated among the staffs, which expanded the scope
and arena of the supply chain network. Mention can be made of the communication plans,

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which were accommodated with the videos. An important aspect in this context is ensuring
that the employees participate in these awareness programs. The aim here is not the
achievement of monetary benefits, on the contrary, the aim is to ensure that the skills,
expertise and knowledge of the employees are enhanced. This approach adds value to the
workplace culture.
Fig: Geographical distribution of the turnover (in percentage)
(Source: Bhp.com, 2019)
Mention can also be made of the geographical distribution of the turnover. Among the
countries enlisted, Australia accounts for 18.50% followed by Japan. The highest percentage
is achieved by Europe, indicating tough completion in the labour market. This competition
aggravates the complexities in motivating the employees for extracting productive labour.
RQ2. What recommendations can be suggested for uplifting the standards and quality
of the human resource management practices in BHP Billiton?
Theme 2: Recognition of the individual performances increases the stability in the
professional relationships

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5% salary bonus Above and beyond
performance
recognition
Ongoing effort
recognition
0%
10%
20%
30%
40%
50%
60%
Improvement of
professional relationships by
performance recogniti on
Fig: Improvement of professional relationships by performance recognition
(Source: Dabke, 2016)
The above figure sheds light on the fact that the more the efforts of the employees are
recognized, the more stable is the relationship between the managers and the employees.
According to the results of Gallup tests, 70% of the variance is found in the employee
engagement scores. According to the statements of the Harvard Business Review,
communication and focus on the employees’ strengths shapes the engagement of the
employees and performance level. Evidences reveal that 69% of the managers feel
uncomfortable in communicating with the employees. As per the arguments of Dunne et al.,
(2016), this result contradicts the aspect of motivation through communication. The Board
and Committee members of BHP Billiton are involved in the formulation of policies. The
outcome of these policies has been reflected in the nomination of the personnel in the Annual
General Meetings (AGM). The talented executives are provided with lucrative salary
benefits, which is a means for retaining them.
Theme 4: Good remuneration packages motivates the employees to expose better
performance

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Fig: Impact of remuneration on employee motivation
(Source: Hu & Liden, 2015)
The above figure displays the impact of remuneration on employee motivation. The factors
related to motivation are good salary, congenial working environment, job enrichment, bonus,
benefits and advancements. All of these factors lead to motivation. Here, Herzberg’s theory of
motivation can be linked, as monetary rewards are accounted as an integral motivational factors
generating an urge within the employees to expose better performance. Along with this, congenial
working environment and job satisfaction shapes the professional growth of the employees. As
argued by Jiang and Liu, (2015), these factors helps the employees in achieving job satisfaction,
which is a crucial factor, justifying the employment.
Remuneration
Sound salary
Good working environment
Job enrichment
Bonus
Benefits

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Result
To achieve
Feedback which provide
Fig: Basic motivation model
(Source: Lăzăroiu, 2015)
The above figure provides an insight into the basic motivation model. The important
components in this model are needs or expectation, driving force, desired goals, which results in
the fulfilment of the basic needs, demands and requirements. Identification of the needs and
expectations is done through the means of Maslow’s Hierarchy of Needs, which assists the
managers of BHP Billiton to make the employees aware of the goals and objectives. This action
fulfils the criteria for increasing the sales revenue and profit margin. Feedbacks in this context
results in the gaining an insight into the actions needed for increasing the standards to that of the
benchmark level. Li, Wei, Ren and Di, (2015) highlights that on the basis of the provided feedback,
plans for training and motivation is constructed for encouraging the employees to upgrade the
standards and quality of their performance.
Theme 5: Employee motivation is directly proportional to employee motivation
Needs or expectations Driving force Desired goals
Fulfilment

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Discussion
Motivation and employee performance are directly linked with each other. The more
the employees are motivation; the more the standards and quality of their performance is
enhanced. One of the relevant aspects in this direction is organizational performance, which
is simultaneously enhanced with the performance of the employees. These aspects seem to be
true for every company and organization, including BHP Billiton. On the contrary, Yahaya
and Ebrahim, (2016) assumes that if the employees do not get proper motivation, their
performance is adversely affected, compelling the company to suffer from severe losses.
Meetings assist the managers of BHP Billiton to audit and review the effectiveness of
the practices. Involvement of the board panel in the meetings is crucial for adding
authenticity into the decisions for improvising on factors like employee performance. Balance
scorecards are used for measuring the performance, which is effective for estimating about
the performance in the upcoming financial years. Revising the pay scales is a planned action
and reasoned behaviour for achieving satisfaction from the employees. In return, they are
Employee
motivation
Work environment
Pay and benefits
Management systems
Organizational vision
Customer
satisfaction

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provided with safe and congenial working environment. According to Alagaraja and Shuck,
(2015), appraisals are a means for evaluating the performance in accordance with the
identified and the specified objectives. This appraisal also helps the managers to assess the
issues, which the employees are facing while carrying out the allocated task. Assurance in
this process enhances the stability in the relationship between the managers and the
employees. These aspects can be correlated with the Herzberg’s two factor theory of
motivation.
On the other hand, Mayfield, Mayfield and Sharbrough, (2015) states that Maslow’s
hierarchy of Needs is also relevant in terms of making the employees acquainted with their
needs, which are self-actualization, enhancing the professionalism. For this realization, the
means of monetary and non-monetary rewards are taken, which highlights the incentive
theory and drive theory. In some of the cases, it is seen that the talents of the employees are
extracted. This approach adds to the economic growth, which subsides the aspect of skill
development of the employees. Differential piece rate systems are beneficial in terms of
providing equal and exact value of the efforts exposed by the employees.
Findings from the themes
Motivation relates to the leadership trait, which is important for the managers to
become approachable to the employees. The more the employees are trained about the ways
of achieving customer satisfaction, the more they are lured towards the services. Countering
this, prospective salary packages are an agent for the employees to make better performances.
Recognizing the individual performance of the employees makes them feel that they are an
important asset for the organization.
Conclusion and recommendation
Motivation upgrades the standards and quality of the employee performance in BHP
Billiton. Agents like monetary and non-monetary rewards lure the employees to make better

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performance, beneficial for the company to expand the profit margin. Recognition of the
skills and efforts of the employees results in their professional development. This is a fact,
which has been suppressed under the demands of monetary rewards, the only source for
gaining job satisfaction. However, most of the organizations conduct motivation programs
and seminars, which bring significant changes in the performance of the employees.
Performance appraisal is one of the means through which evaluation is done for the employee
performance.

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References
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Lăzăroiu, G. (2015). Work motivation and organizational behavior. Contemporary Readings
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Li, Y., Wei, F., Ren, S., & Di, Y. (2015). Locus of control, psychological empowerment and
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Psychology, 30(4), 422-438.
Lloyd, K. J., Boer, D., Keller, J. W., & Voelpel, S. (2015). Is my boss really listening to me?
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Quinlan, C., Babin, B., Carr, J., & Griffin, M. (2019). Business research methods. South
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Wha.net.au (2019). How to Increase Motivation in The Workplace. Retrieved 5th Oct 2019
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Appendices
Appendix 1
Fig: Global Workplace Gallup Report
(Source: Wha.net.au, 2019)
Appendix 2
Fig : Stately conditions according to Global Workplace Gallup Report

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(Source: Wha.net.au, 2019)
Appendix 3
Fig: Stages of motivation in BHP Billiton
(Source: Bhp.com 2019)

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Appendix 4
Fig: Strategic profit development of BHP Billiton
(Source: Bhp.com 2019)
Appendix 5
Fig: Form 20F in BHP Billiton
(Source: Bhp.com 2019)