Analyzing Employee Motivation's Impact on Organizational Performance

This report presents an analytical study on the impact of employee motivation on organizational performance, specifically within the context of McDonald's. The research delves into the challenges faced by the fast-food industry, including high employee turnover and its effects on customer satisfaction and brand reputation. The study examines the importance of employee motivation as a key factor in driving organizational success, exploring different motivational techniques and their impact on performance. It includes a literature review on employee motivation and organizational performance, a research methodology outlining the approach, design, and data analysis methods, and findings from quantitative analysis. The report aims to identify factors affecting employee motivation, suggest strategies for improvement, and provide recommendations for enhancing employee engagement and organizational performance within McDonald's. The study also includes analysis, conclusions, and recommendations, along with future scopes of the study.

Running head: EMPLOYEE MOTIVATION ON ORGANIZATIONAL
PERFORMANCE
An Analytical study to understand the impact of employee motivation on the
organizational performance in the context of McDonalds
Name of the student
Name of the university
Author note

1EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
Abstract
Introduction
In the competitive business environment, the food industry in US is dealing with the
various challenges for sustaining in the market. Analysing the current scenario in the
food industry, it has been identified that with increasing opportunities in the food
market, numbers of problems have been increased.
Due to increasing competition in the market, sustaining in the commercial level has
become major concern for the organizations.

2EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
Acknowledgement:
I will thank to my supervisor for providing me the opportunity to work on the research
study. I would like to thank my friends and family members, who have helped me
while conducting the research. I will thank my parents for their moral and financial
support..
Thanking you,
Yours Sincerely,

3EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
Table of contents
Chapter 1: Introduction.................................................................................................6
1.1 Introduction.........................................................................................................6
1.2 Background of the study.....................................................................................6
1.3 Background of the company...............................................................................7
1.4 Rational of the study...........................................................................................8
1.5 Problem statement..............................................................................................8
1.6 Research aim......................................................................................................9
1.7 Research objectives............................................................................................9
1.8 Research questions............................................................................................9
1.10 Significance of the study.................................................................................10
1.11 Structure of the research study.......................................................................10
1.12 Conclusion......................................................................................................11
Chapter 2: Literature Review......................................................................................12
2.1 Introduction:......................................................................................................12
2.2 Theoretical aspects of employee motivation....................................................12
2.2 Concept A: Organizational performance..........................................................17
2.4 Concept B Employee motivation.......................................................................19
Different employee motivational strategies and its major impacts:........................20
Inter-relation between organizational performances and employee motivation.....22
2.5 Relationship between Concept A and Control variable....................................22
2.6 Conclusion:.......................................................................................................25
2.7 Conceptual framework......................................................................................26
2.8 Hypothesis........................................................................................................26
2.8 Summary...........................................................................................................26
Chapter 3: Research Methodology.............................................................................28

4EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
3.0 Introduction:......................................................................................................28
3.1 Research method outline:.................................................................................28
3.2 Research Onion:...............................................................................................28
Figure 8: Research onion........................................................................................29
3.3 Research Philosophy:.......................................................................................29
3.3.1 Justification for the chosen research philosophy:......................................29
3.4 Research Approach:.........................................................................................30
3.4.1 Justification for the chosen research approach:........................................30
3.5 Research Design:.............................................................................................30
3.5.1 Justification for the chosen research design:.............................................30
3.6 Research strategy:............................................................................................31
3.6.1 Justification for the selection of Research Strategy...................................31
3.7 Selection of Sampling Methods and Sample size:...........................................31
3.8 Data collection method:....................................................................................31
3.8.1 Primary Research:......................................................................................32
3.9 Data analysis:....................................................................................................32
3.10 Research ethical consideration:......................................................................32
3.11. Research limitation:.......................................................................................32
3.12 Summary:........................................................................................................33
Chapter 4: Findings....................................................................................................33
4.0 Introduction.......................................................................................................33
4.1 Reliability analysis................................................................................................33
4.2 Quantitative analysis.........................................................................................35
4.2.1 Demographic Questions.............................................................................35
4.2.2 Employee motivation..................................................................................39
4.2.3 Organizational performance.......................................................................49
4.4 Regression............................................................................................................60

5EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
Chapter 5: Analysis.....................................................................................................61
5.0 Introduction...........................................................................................................61
5.1 Reliability analysis................................................................................................62
5.2 Quantitative analysis.........................................................................................63
5.2.1 Demographic Questions.............................................................................63
4.2.2 Employee motivation..................................................................................63
4.2.3 Organizational performance.......................................................................66
5.3 Correlation.........................................................................................................70
5.4 Regression............................................................................................................72
Chapter 6: Conclusion and recommendation.............................................................73
6.1 Conclusion:.......................................................................................................73
6.2 Recommendations:...........................................................................................75
6.3 Objective linking:...............................................................................................76
6.4 Future scope of the study:................................................................................78
Reference list and bibliography..................................................................................79
Appendices.............................................................................................................85
Appendix 1..............................................................................................................85
Appendix 2..............................................................................................................88
Appendix 3................................................................................................................1

6EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
Chapter 1: Introduction
1.1 Introduction
In the changing market trend, the fastfood industry has become an important
contributor in Us economy (Belasco, 2014). Kuranchie-Mensah & Amponsah-
Tawiah, 2016
It cannot be denied that through the employee motivation initiatives, not only
the employee engagement but also the financial as well as cultural stability in the
workplace can be increased. On the other hand, employee motivation is also
important for increasing the employee engagement towards achieving the
organizational goals and objectives. In this research, the importance of employee
motivation in the context of McDonalds has been discussed.
1.2 Background of the study
Analysing the current scenario in the food industry, it has been identified that
with increasing opportunities in the food market, numbers of problems have been
increased. Due to increasing competition in the market, sustaining in the commercial
level has become major concern for the organizations (Menges et al., 2017). On the
other hand, it cannot be denied that increasing competition and job pressure on the
employees, the rate of employee turnover has been increased. In this situation, it
has become necessary for the organizations to identify essential key influencing
factors that can help to overcome the situation. The purpose of this study is to
highlight motivation as an essential factor for driving organizational performance.
The research has also identified different motivational techniques that can be applied
in the workplace for improving organizational performance in McDonald’s.
Productivity is something that indicates the achievements of every organization. The
productivity in an organization is highly dependent on the process of employee
satisfaction. In order to provide the job satisfaction to the employees, motivational
initiatives are very important. Through this study, the researched has given the
analytical view of motivational techniques and those impact on the organizational
performance.

7EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
1.3 Background of the company
McDonald’s is a popular food chain in America, which was established in the year
1948 by Richard McDonalds and Maurice McDonald (Mcdonalds.com, 2018). In the
initial stage, the application for opening a small hamburger shop was collected by
the brothers from the salesman namely Ray Kons In the current scenerio,
MCDonald’s has become the popular food chain in the world with the numbers of
36000 restaurents uin all over 100 countries (Mcdonalds.com, 2018). McDonalds is
being considered as the world’s most democretic and unoversal brands. The aim of
the company is to be nutrationally mindful for sustiniong in the industry. Analyzibng
the vision of the cpmpany, it has been identifoed that Mcdolass wants to become the
favourite place for the customers for having food and drink. It always aims to meet
the the expectations of the customers. In the uear 1962, the company has
ibcorporated its Logo for creating iots unique brand identity in the market. Bu folloing
the ‘plan and win’ strategy, it aims to maibtain its worldwide operations smoothly. It is
true that in order to promote the standarlized and uunified tem in the workplace, the
company hire the qualified and experienced people for meeting its goals and
objectives. It can not be denied that the company is hoghly commited with its
customers.
Within few years, the compny has established itself as world’s largest food
chain with the revenue of 22.820 billion US dollar in the year 2017. By adopting the
marge and acquisition strategy, the company owened the share of Aroma café and
Donatos pizza. Abnalyzing the Us market, it has been identifioed that in the year
2018, the company provides its servoce through 14146 restaurents in US market. it
is true that in the year 2018, the sales rate of the company aroused 27% durng the
second quarter. Due to sudden jump in the interntiponal sales arte, the reevenue in
the US market tumbled 12% (Mcdonalds.com, 2018).
1.4 Rational of the study
The issue, which has been identified in the research is about the impact of
employee motivation in organizational performance in the context of McDonalds.
Employee motivation has become an integrated part in analysing the organizational
growth for the long term. Analysing the current situation in the workplace, it has been
identified that employee turnover has become the important issue in McDonalds,
which has creased difficulties for implementing business initiatives. As its result, the

8EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
overall organizational performance is getting hampered. Therefore, it can be said
that lack of employee motivation has become the issue in the current fast-food
industry.
Lack of employee motivation has become major issue as it influenced the
individuals’ performance in the workplace. It creating employee motivation for
increasing employee engagement is very important for every organizations as these
factors are required or sustaining in the competitive business environment. It cannot
be denied that in the current situation, with increasing business opportunities,
numbers of competitors in the US market have been increased. In this situation lack
of efficiency in the organizational performance can also create negative brand image
in the market.
Due to increasing rate of employee turnover, the rate of employee turnover
has been increased in the current situation. On the other hand, it is also true that
lack of motivation in the workplace has influenced the employee conflict in the
workplace. It is true that depending on the current situation in the workplace. As its
result, the increasing rate of customer complaints, organizational performance has
become big concern for the organization.
The researcher has shed light on the impact of employee motivation in case
of driving the organizational performance. Through this study, the impact of
employee motivation in case of engaging the employees towards achieving their
goals and objectives have been discussed. It has been discussed in this research
that the employee motivation can help to attract large number of customers for
sustaining in the competitive market.
1.5 Problem statement
In the competitive business environment, the food industry in US is dealing
with the various challenges for sustaining in the market. It cannot be denied that the
food industry has major contribution in the US economy (Belasco, 2014). As the
industry has various opportunities in the market, it has also brought various
challenges which are making difficulties for the food organizations like McDonalds.
Due to increasing competition in the market, pressure on the employees has been
increased, which has created dissatisfaction among the employees. In a recent
article, it has been published that due to massive employee turnover in the

9EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
workplace, stressful situation has been occurred in the workplace (Inc.com, 2018).
With the increasing employee turnover, it has become tough for the rest of the
employees to deliver standard quality of service within the expected time, which has
also created dissatisfaction among the customers. Due to increasing customer
complaints, the brand reputation of the company in now in a danger situation. If the
20 years of employee turnover rate can be analysed, it will be identified that
employee turnover has become a common issue in this organization. In this
situation, it has become necessary for the company to focus on employee
motivation.
1.6 Research aim
The aim of this research is to analyse the key factors that influence the
employee motivation process as well as organizational performance in McDonalds.
The study has also aimed to introduce the measurable techniques so that the
employee motivational techniques can be improved in the workplace.
1.7 Research objectives
 To critically identify the impact of employee motivation in improving
organizational performance in the context of McDonalds
 To evaluate the factors that affect employee motivation that improves
organizational performance in the recent context
 To suggest measurable strategies to motivate their employees in the
organization: in the context of McDonalds
1.8 Research questions
 What are the impacts of employee motivation in improving organizational
performance in the context of McDonalds?
 What are the factors that affect employee motivation that improves
organizational performance in the rent context?
 Which strategies can be implemented by McDonalds to motivate their
employees?
1.10 Significance of the study
In the current competitive market, it has become necessary for increasing
customers’ engagement in achieving the goals and objectives in the workplace.
Analysing the current organizational situation in McDonalds, it has been identified

10EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
that due to lack of employee motivation initiatives, the employee relation in the
workplace is getting hampered. On the other hand, it is true that due to increasing
internal conflicts, the internal organizational culture in McDonalds is getting affected.
The significance of this study is it has shed light on the emerging situation in
McDonalds. It cannot be denied that increasing rate of employee turnover in
McDonalds, has ruined the initiatives of the company. By highlighting different
influential factors that have impacted on the lack of employee involvement in
organizational functions, the study has suggested different recommendations so that
the employee involvement can be increased in the workplace.
1.11 Structure of the research study
Figure 1: Dissertation Structure
(Source: Created by the author)
Chapter 1: Introduction
In this chapter the aim, objectives of the research and problem has been discussed.
By providing the brief introduction of the organization, the study has shed light on the
emerging issue in the company.
Chapter2: Literature review
This chapter is being considered as the vital chapter ion the entire dissertation. In
this chapter different models and theories related to the topic is being discussed.
IntroductionChapter 1
Literature reviewChapter 2
Research MethodologyChapter 3
FindingsChapter 4
AnalysisChapter 5
Conclusion and RecommendationsChapter 6

11EMPLOYEE MOTIVATION ON ORGANIZATIONAL PERFORMANCE
Chapter 3: Research methodology
In this research methodology chapter research approach and methods are
being discussed depending on which the entire research has been conducted. The
chapter introduces the data collection, data analysis and sampling method.
Chapter 4: Findings
The collected data has been presented in this chapter through table and
graphs. In this chapter the researcher provides the clear understanding of the
collected information for reaching at the research objectives.
Chapter 5: Analysis
In this chapter, the information which has been collected by the researcher
will be analysed.
Chapter 6: Conclusion and Recommendations
In this chapter the objectives of the dissertation are being linked with the
findings. Various recommendations will be provided depending on the findings.
1.12 Conclusion
In the first chapter research aim and objectives have been clarified. By
providing brief description of the company McDonalds, the problems have been
identified in this chapter.