Employee Motivation Report: ANZ Bank, MGT210, Semester 2, CSU

This report delves into the critical aspect of employee motivation within ANZ Bank, particularly in the wake of the Royal Commission's findings. It explores the importance of employee motivation in enhancing organizational performance and creating a positive work environment. The report examines the employee psychological contract, its disruption by the Royal Commission, and the shift towards prioritizing employee needs. It analyzes the impact of the commission's findings on employee motivation, highlighting the role of factors like job security, remuneration, and working conditions. Theories such as Herzberg's two-factor theory and Vroom's expectancy theory are applied to understand and address motivational challenges. The report also investigates the relationship between employee motivation and performance, and offers recommendations to improve employee satisfaction and engagement, including clear job descriptions, conflict resolution, and effective reward systems. Overall, the report emphasizes the need for ANZ Bank to foster a learning environment and design strategies to align employee behavior with organizational goals, ultimately improving productivity and responsiveness to the changing business landscape.

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Employee Motivation
Student’s Name
9/12/2019

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Executive Summary
The increasing competition and complexities in the business environment has developed the
need to recruit and retain the best employees and develop positive working culture. The
employee motivation shows the major part in efficiency of organization performance and
enhancement in employee productivity. However the organizations must focus on providing
intrinsic and extrinsic motivation to the employees and embracing the changes for further
growth of the business.
This report will reflect upon the factors that affects the employee motivation and the impact
of royal commission findings on employee motivation at ANZ bank. It will include the
relevant theories and models that support employee motivation and develop positive working
culture.

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Contents
Introduction................................................................................................................................3
Employee Psychological Contract.............................................................................................4
Impact of the Royal Commission’s findings on employee motivation......................................6
Relationship between employee motivation and performance..................................................9
Factors affecting the employee motivation..............................................................................10
Recommendations....................................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

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Introduction
Employee Motivation has become the critical aspect at the workplace. It allows the
organization to increase its productivity and create positive working environment by making
the employees more committed and satisfied (Lazaroiu, 2015). The further paragraphs of the
report will focus upon the employee motivation in ANZ Bank based upon the findings from
the royal commission. The purpose of the report is to work closely with the HR Executive to
design strategies that motivate personnel (both intrinsically and extrinsically), that will result
in a corporate culture that is less dependent on financial remuneration and a culture of greed.
The additional paragraphs of the report will reflect upon the impression of royal
commission findings on employee’s psychological contract and employee motivation. It will
also highlight the association between employee motivation and performance. The further
paragraphs will include the factors that distress the motivation of employees and the
recommendations to improve it.
Employee Psychological Contract
The psychological contract was developed by behavioural theorists Chris Argyris and
Edgar Schein in the year 1960. This contract defines the association between an employee
and employer which mainly centres on mutual beliefs of inputs and outcomes. It is an
progressively pertinent aspect of workplace relationships and broader human behaviour. The
contract focuses on creating balance between the way the employer gives its employees and
what the employee places in job. This contract includes the characteristics such as Respect,
kindness, trust, understanding, fairness, impartiality. This contract is tacit and inclines to be
unseen, artificial, tacit, and informal or at best only partially vocalised (Kiazad, Kraimer &
Seibert, 2019).

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It is analysed that the results of royal commission has created destructive impact on
the employee psychological contract because the expectations of the workforces are violated
and has led to increased dissatisfaction among employees. It has also impacted the goodwill
of the organization. The organization focused on financial risk and was not concerned for the
non-financial risk. The role commission findings has enable to shift the focus on employer on
the needs of employees and is reflected through the designing of new remuneration system
and streamlined focus of HR on non-financial risk (Hargovan, 2018).
Considering the findings of the royal commission, the company has begun to shift its
focus from financial risk to non-financial risk. The employers have become more transparent
and have addressed the issues faced by the employees. It has allowed the company to design
the remuneration and incentive policy according to the actual job role implemented by the
employees (Laurin & Milligan, 2017).
The regulation and the compliance pressures have forced the employers to focus on
creation of job designs that allows the employees to showcase their talent and reach the full
potential. The employers have laid clear policies and offer positive employees benefits which
include confidential counselling and employee assistance programmes. The concern of
managers is also addressed by providing them the time and the training to prevent the mental
health issues at the workplace (Wishart & Wardrop, 2018).
The employees also require positive leadership in the organization to understand the
trends which are imposed after royal commission and effectively direct the actions of the
employees to improve the image of the bank in front of stakeholders. It was analysed that
prior to royal commission the workforce were less inclined in their departments and did not
actively respond to the needs of the customers. It leads to the creation of organization culture

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where the employees were not happy and were less efficient towards their responsibilities
(Mostafa, Gould‐Williams & Bottomley, 2015).
In response to above organization culture, the HR has streamlined its process of
scrutinising and has designed the performance based rewards for the employees to create
fairness and develop the culture where the employees feel motivated and satisfied. The HR
focuses on delegating the equal responsibilities and designs training programmes for the
employees to provide the opportunity of career development. The clarity of policies has
allowed improving the employee psychological contract by developing mutual expectations
among employee and employer (Sheedy, Griffin, & Barbour, 2017).
Impact of the Royal Commission’s findings on employee motivation
Employee motivation is the level of energy, commitment and originality of the
employees in working in organization. It is analysed that the finding of the royal commission
created undesirable impact upon the motivation of the employee because the finding reflected
that ANZ was involved in misconduct and concern for shareholders and employee was just a
friction. The bank preferred to involve in actions that pursuit profits to the company. It is
recorded that the expectations of the employees were violated. The job security of employees
turned into the major stress. It is analysed that the employees were rewarded for building
profits for the company not on the basis of service provided to the customer. The company
focused on providing short-term incentives. Such conditions lead to negative influence on the
enthusiasm of personnel and is reflected in their behaviours (Hargovan, 2019).
In response to above scenario, it is analysed that the motivation of employees plays
the major role in the success of the organization. It is reflected under the Herzberg two factor
theory. This theory was developed by Frederick Herzberg in the year 1959. This theory is

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based upon two factors which include hygiene and motivating factors. The hygiene factors
are the one that are essential at the workplace and absence of them creates dissatisfaction. It
includes remuneration, security, salary, working conditions, company policies and
relationships. On the other side the motivating factors include that factors that allows the
employees to be more responsive and allows them to work harder (Eisenberger, Malone &
Presson, 2016).
It was analysed from the findings of royal commission that ANZ bank does not
focused on maintaining the hygiene and motivating factors at the workplace and were not
concerned about the care of employees. The employees feel insecure about their job security
and do not receive fair rewards and remuneration. The working conditions were not
favourable and the company majorly focuses on profit rather than non-financial risk. The
reliability of this theory is uncertain and it overlooks situational variables. I have applied
Herzberg Two factor theory because it majorly reflects upon the factors that motivate the
employees and help in analysing the current level of motivation among the employees. It
focuses on job enrichment (Alshmemri, Shahwan-Akl & Maude, 2017).
The Vroom expectancy theory also suggests that the motivation describes the
expected behaviour of employees. It reflects that the behaviour of the employees is reflected
through the reward they expect from the organization. It states that the employee select
behaviour based upon he outcome it expects. This theory is based upon three factors which
include expectancy, instrumentality and valence. Here expectancy describes the expectation
that the employee has for the outcome in response to selected behaviour. The instrumentality
describes the tangible motivation that allows the employees to hit the goals and the last
represents the valence which states that the rewards designed must have value in the eyes of
employees (Kiatkawsin & Han, 2017).

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This theory is used to inspire the employees because the expectations of the workers
are stated in the form of employee psychological contract and the organization designs the
rewards and remuneration for the achievement of the goals. It also allows the organization to
determine the factors that will motivate the employees and will make them more committed
towards the goals of the organization (Quratulain & Khan, 2015).
The employee psychological contract is placed on the highest priority because it
describes the expectation of the employees and also laid down the value the employee
receives in the organization. It is best applied to the above described theory because the
employee psychological contract describes the instrumentality and specifies the rewards the
employees will receive.
It is analysed that the royal commission findings has created negative impact upon
employee psychological contract because the expectations of the employees were not met.
Through the findings it was recorded that the main focus of the bank was on the financial risk
and considered profit as the main objective. The employee’s expectations and rewards did not
show any valence to employees and however created higher level of dissatisfaction
(Quratulain & Khan, 2015).
Therefore in order to increase the level of employee satisfaction the organization must
focus on designing the effective reward system that lets the employees to be more committed
towards organization goals. It must be transparent with the employees and provide them the
job security and the opportunity of growth.
It is analysed that the behaviour of employees is designed through the culture, structure of the
organization. However the ANZ bank must focus on creating the learning environment by
designing efficient rewards for the employees who are involved in continuous learning and
shaping their behaviour. Effective reward system will raise the stimulus of the employees and

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will encourage them to perform the complex job roles that in turn will help the organization
to increase its productivity and be responsive towards the changing business environment
(Quratulain & Khan, 2015).
The main issues that created lack of employee motivation were unclear job
descriptions and workplace conflicts. There was open disagreement and negative publicity of
the company after the results of the royal commission. The company was involved in
misconduct and focused on financial risk rather than non-financial risk. Such issues create the
resistance of the employees and leads to negative working environment (Eisenberger, Malone
& Presson, 2016).
The company did not focused on setting the personal goals for the employees and
absence of conducting regular performance evaluations and feedback. This reflects the lack
of interest of the company towards its employees and in turn reduces the satisfaction of the
employees (Eisenberger, Malone & Presson, 2016).
The employees loose the trust on the company and created complexity in regaining
the brand image and achieving long term projects. It does not designed effective cross
training programmes which created loss of growth opportunity and thus reduces the
motivation among the employees. It leads to the violation of the employee psychological
contract and created negative impact upon the public image of ANZ Bank (Eisenberger,
Malone & Presson, 2016).
Relationship between employee motivation and performance
In accordance to the views of Eisenberger, Malone & Presson (2016), employee
motivation has the undeviating impact on gainfulness and development. If the employees are
highly motivated they become more committed towards carrying out the organization

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activities and increases the employee productivity which in turn directly increases the
effectiveness of organization. It is analysed that the employees feel motivated when their
personal needs are satisfied and they receive positive working environment. It allows them to
embrace changes and perform the complex job roles that help in grabbing the growth
opportunities and allows improvement of employees.
Supporting the above views, the monetary and non-monetary incentives helps in
maintain consistency in the job performance of employees and provides them a sense of
ownership. It directly helps in increasing the profitability of business due to improved job
performance.
In contrast to the above views Mikkelsen, Jacobsen & Andersen (2017), states that
employee motivation can also lead to workplace conflicts and may distress the routine of the
other members. It is analysed that all the workers in the organization are not equally
motivated and such partial decisions reduces the interest of the less motivated employees and
directly affects their performance in the organization.
The monetary and non-monetary incentive shifts the focus of employees towards the
incentives and does not focus on the performance with the clients and customers. This
reflects that employee motivation has two side effects on job performance (Kuvaas et al,
2017).
Factors affecting the employee motivation
It is analysed that the behaviour of the employees is shaped according to the
expectations they have from the company and the valance they receive from the existing
rewards. The employees in the banking sectors gets highly motivated from the hygiene and

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the motivating factors which includes positive working environment and ensuring of job
security to employees (Aguenza & Som, 2018).
The increased responsibility also affects their motivation as they feel that performing
of complex job roles will provide them the opportunity of growth and advancement. The
banking sector employees get the intrinsic motivation when they have interesting task and
fulfilment of the task provides the happiness and sense of accomplishment. The job design
affects the motivation of employees and influences their actions towards organization goals
(Chumg, Seaton, Cooke & Ding, 2016).
The monetary incentives i.e. good pay creates greater level of motivation and makes
the workforces more dedicated towards the goals of organization. The recognition and praise
boost the morale of employees as they receive recognition in front of all employees and
further develop the zeal to reach to higher goals. The financial rewards increase the employee
motivation and make them loyal towards organization goals (Singh, Singh & Khan, 2016).
The quality of supervision also affects the employee motivation. If the higher level
authorities supervises friendly and with positive attitude the employees feel motivated and
gained the positive result. The personal traits of employees also develop the willingness to
work and put the energy forward towards the organisational goals. However the behaviour of
the employees is designed by the amount of extrinsic and intrinsic motivation they receive
(Mohrman & Lawler, 2017).
Recommendations
 To increase the employee motivation the organization must focus on adjusting the job
characteristics that provides meaningful works and must also provide enough
autonomy and feedback to make the continuous changes and achieve efficiency in

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performance. The organization must focus on setting the goals that are measurable
and specific and boost the confidence of employees. Accomplishment of goals will
provide a sense of achievement and will help in increasing employee motivation
(Senko, 2016).
 The organization must focus on job enrichment and must change the working
environment. It must provide flexible working arrangements so that the stress of
employees can be reduces and in turn provides the work life balance. It will improve
the employee psychological capital and will result into better outcomes (Osabiya,
2015).
 The organization must focus on adopting the learning theory and must focus positive
reinforcement. The company must use extrinsic rewards which include praise, pay,
higher job roles and positive working conditions. The fear of punishment and negative
reinforcement may decrease the level of employee motivation and in turn distresses
the enactment of the organization. However the changes in the job characteristic
model will boost the employee confidence and will help them in achieving
organization goals (Quratulain & Khan, 2015).
Conclusion
From the above discussion it is critical to note that employee motivation theatres the
crucial part in effectiveness of organization. However it is analysed that the royal commission
findings has created negative impact on employee motivation and therefore it becomes the
emerging need for ANZ bank to provide intrinsic and extrinsic motivation and makes the
changes in job characteristics to create positive working environment and increase
organization efficiency.

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