Wednesday, 4 November 2020

Importance of employee motivation

Importance 

The real assets of the organizations are employees and it’s considered the engine of any of its kind (Mohsen et al., 2004). In the current competitive market conditions, it is true with high job losses due to layoff and retrenchment to create a lean organization and it’s also important to reduce loosening of performing employees due to lack of job satisfaction and motivation to continue with the organization for a long time (Warma 2017). According to Manzoor (2012), most of the cooperates are facing challengers of employee retention regardless of their size, technology, and market forces following competitiveness in the current market condition. The challengers can be overcome through the adoption of strong bonding between employees and employers.  If the employee turnover is higher than the expected level, it will gain a big loss to the corporate in terms of lack of skilled staff, performance, productivity, and finally profits. All organizations are much more concerned to find ways through which high levels of employee performance and engagement can be achieved. Dr. Imran states that employee performance is positively correlated with motivational levels also affected by workplace environment and office design. According to Stanley (2012), de-motivation is a major factor that contributes to high employee turnover and disengagement.

The table given below (illustrate in figure 01) helps understand the employee engagement results among residents. Gullup, State that 67% of total employees are not engaged and 18% of total employees are actively disengaged in their employment worldwide.

Figure 01: Employee engagements results globally


                                                 Source: State of the global workplace, Gallup Press 2017, p. 24

In Sri Lankan content, 54% of total employees are not engaged and 8% of them are actively disengaged within the employment (Illustrate in Figure 02).

Figure 02: Employee engagement results Sri Lanka 

 

Engage %

Not Engage %

Actively disengage %

Sri Lanka

    38

     54

8

                                        Source: State of the global workplace, Gallup Press 2017, p. 198


Why employee engagement matters 


                                                           Source: Engage 2013 <https://www.youtube.com/watch?v=dSfDROxCuxI>

The consumer durable company which I work for is much keener on the employment practices that are premised on attracting and retaining human talents (Annual report 2017/2018). Each year the management decides on the requirement criteria, improve job satisfaction, employee benefits, and other aspects considering the previous year's profit margin and current year plan.  The table given below illustrates (Figure 03) the recruitments and resignation ratio in the year 2017/2018 and the company employed 2915 employees altogether in the same financial year.

Figure 03: Recruitments and resignation ratio

Source : Annual report 2017/2018

To overcome above negative factors, the cooperates must find solutions to improve the employee engagement and performance of their employees. As soon as employee satisfaction is fulfilled, they will tend to outline an independent relationship between their involuntary wish of performing the professional activities and it results to gain a major benefit from its employees (Achim et.al, 2013). The motivation will increase employee commitment that they will drive their best effort to the task and objective they are assigned for. By improving employee satisfaction through motivation will lead toward a positive growth in the organization in overall aspects. Motivation can also improve the ongoing employee development by achieving personal and career development goals.

Employee performance fundamentals depend on motivation, training, and development, performance appraisals, employee satisfaction, compensation, job security, organizational structure among others (Hussein & Simba 2017). Employee motivation determines any business factor's success and capability of drawing, holding, advancing talented employees are its main characteristics (Osabiya 2015). An organization to its growth, it considers the motivation is a significant factor in the achievement of its growth (Geomani 2012). A poorly motivated labor-force is costly in that it makes an organization realize lower production and performance.

The job of a manager or a supervisor is to get tasks done by employees and the management of people is an integral part of the management process. To achieve it, the manager should be able to motivate employees adequately (Geomani, 2012). Joseph (2015) Stated that the various needs to motivate employees can be separated into two major categories namely Extrinsic and Intrinsic motivation.

Extrinsic motivation is related to tangible rewards such as salary and fringe benefits, security, promotion, contract of service, work environment, and conditions of service, which will mainly be fulfilled by the top management of the cooperate. Intrinsic motivation is related to psychological rewards such as rewards, receiving appreciation, positive recognition, and being treated in a caring and considerate manner (Joseph 2015). Intrinsic motivation can be fulfilled by the immediate supervisor or manager of the employee and it can improve to a much larger perspective with the support of the cooperate to management. 

Figure 04: Needs and expectations of people at work

 


Source : Laurie J Mullins (2005). Management and Organisational Behaviour. Prentice hall. UK 7th Ed. pp. 1052-1058

As Mullins (2005) mentioned the needs and expectations at work can be categorized into three main aspects as intrinsic satisfaction, social relationship, and economic rewards. An employee’s motivational, job satisfaction and work performance is determined by the strength of these sets of needs and expectation and the extent to which they are fulfilled within the employment.

At my workplace, the organization implements many strategies such as target base incentive scheme, continuous learning and development, yearly bonus program, awards for achievement, proper communication, reasonable employee remuneration to improve the motivation and morale to accomplish the organizational goals and objectives. The organization was able to achieve an 11% growth in profits after tax while sustaining its market leadership position and generating shared value across its supply chain. Also, the motivated employees help to achieve many awards such as the best brand of the year, the best consumer durable brand of the year in recent awarding ceremonies. Been more engaged with customers the motivations helps to make friendly relationships with them to provide an end solution and to retain customers which are more convenient in a competitive market. 

 Reference

Babatunde Joseph (2015), The effect of employees’ motivation on organizational performance, Journal of Public Administration and Policy Research , p. 65

                     Dr. Chandrkant Varma (2017), Importance of employee motivation & job satisfaction for organizational performance. International Journal of Social Science & Interdisciplinary Research, pp. 10-13.

Engage 2013 <https://www.youtube.com/watch?v=dSfDROxCuxI> accessed on 11/03/2020

Geomani (2012) Impact of Motivation on Employee Job Performance. p. 46.

            Hussein IA, Simba F (2017) Effect of Employee Motivation on Organizational Performance of Mogadishu Al Port in Somalia Strategic. Journal of Business and Change management

Ioan Moise Achim, Larisa Dragolea, George Bălan of The importance of employee motivation to increase organizational performance (2013), p.683

Laurie J Mullins (2005). Management and Organisational Behaviour. Prentice hall. UK 7th Ed. pp. 1052-1058.

Manzoor QA (2012) Impact of Employees Motivation on Organizational Effectiveness. Journal of Business Management and Strategy 3(3): pp. 36- 45

Mohsan, F., Nawaz, M. M., Khan, M., Shaukat, Z., & Aslam, N. (2004), Are Employee Motivation, Commitment and Job Involvement Inter-related: Evidence from Banking Sector of Pakistan. International Journal of Business and Social Science, 2, 17, 226-233.

Osabiya BJ (2015) The effect of employees’ motivation on organizational performance. Journal of Public Administration and Policy Research 7(4).

Stanley TL (2012) Motivation in today’s workplace Human Resource Journal. 55(7): pp. 1-9.

            State of the global workplace, Gallup Press 2017, pp. 24-198

24 comments:

  1. Employees are the main asset in any organization. For this reason, management has to implement different motivation factors to increase productivity (Dugguh, 2014). According to Manzoor (2012), a several organizations believe that the employees are its main asset and they will lead to organizational growth. Coyle-Shapiro and Shore (2007), stated organization has great relationship with employees further, the both parties exchange the benefits and they trust each other.

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    1. Appreciate your comments and organizations believe that the employees are their main and crucial assets, which can lead them to success until the employees of any are satisfied or motivated for the task attainment and achieving goals and objectives (Manzoor 2012). Motivated employees will more engaged with the managements and there will be more connection and proper communication link with them. Employee motivation determines any business factor's success and capability of drawing, holding, advancing talented employees are its main characteristics (Osabiya 2015).

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  2. Hi Dimuthu agree with you, people with good intentions behave according to the positive will that decides to make an effort. Such people may have self-motivation, which means that they are moving in the right direction to achieve what they have to achieve, then this is the best motivation. But the extra motivation provided by the work itself, the quality of leadership and the various recognitions and benefits, build on self-motivation and help people use their abilities to the fullest and function well. (Armstrong, 2014).

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    1. Self-motivation is a self-certain strength that drives the employees to move forward and achieve the objectives. It is an elemental means to comprehend any set goals and it creates imaginative in positioning the goals and objectives  and initiate the credence that the organization needs such skills and abilities to succeed (Manzoor 2012). Self-motivation helps improve and polish the abilities and skills of the employee by his own and it will help him or her to compete with this challenging and competitive market place. Motivation is a critical element in any workplace, and if employees are not motivated there is no job satisfaction and this leads to reduced production productivity (Varma, 2018).

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  3. Building a committed and motivated workforce is well-chosen as the main objective, and a key to success in the competitive environment (Mohsen et al. 2004). Engaged employees have a knowledge of energetic and successful connection with their work activities and see themselves as capable to deal well with the demands of their job (Schaufeli & Bakker, 2004). Moreover, employee engagement almost always advances to higher productivity and it is an umbrella that classify many different concepts like attitudes, behaviour, dispositions relevant to the performance of the individual or the organization as whole (Mone & London,2010). For that reason, organizations give more attention and resources into employee motivation.

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    1. Thank you for your valuable comments and due to growing new trends and competition is challenging traditional supposition about how organizations can behave to successes and the creative and innovation is needed to devise and generate new operation procedure (Wenjing et.al, 2020).Motivated employee contributes to work more passionately, freely and delight on their day-to-day operations and it will influence to display better levels of creativity and imagination (Sabri 2017). Due to high motivation levels the employees tend to innovate cost-saving processors and products, which will reduce the operational cost within the organizations in these pandemic situations. A motivated workforce means highly fruitful staff, all of which will help overcome cooperation objective and goals and it will lead to better profits and outcomes of the organization (Sabri 2017).

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  4. Completely agree with you, to overcome the above negative factors, the cooperates must find solutions to improve the employee engagement and performance of their employees. A poorly motivated labour-force is costly in that it makes an organization realize lower production and performance. The job of a manager or a supervisor is to get tasks done by employees and the management of people is an integral part of the management process. Joseph (2015) Stated that the various needs to motivate employees can be separated into two major categories (Hussein & Simba 2017).

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    1. Due to low standard of motivation the employees tend to their minimal performance and will be a non-worker among others. Due to low motivation the organization looses on the productivity and performance and end with low revalue and profits. It will result the employees to powerless to overcome adversity, apathy for the job, poor customer service, lack of belief in oneself and leads to a minimum performance (Manzoor 2012).. Motivated employees will be more cost-effective in terms of training and skills and will invest more on work, innovate and to provide better outputs in all aspects and motivated employees are emotionally engaged with the organization and they will help increase awareness among the community (Omar et al, 2010).

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  5. According to Ganta (2014), most employees need motivation to feel good about their jobs and perform optimally. Some employees are money motivated while others find recognition and rewards personally motivating. Motivation levels within the workplace have a direct impact on employee productivity. Managers need to find creative ways in which to consistently keep their employees motivated as much as possible. Motivation is highly important for every company due to the benefits that it’sable to bring.Such benefits include
    (a) Human Capital Management
    (b) Meet Personal Goals and Help an Employee Stay Motivated
    (c) Greater Employee Satisfaction
    (d) Raising Employee Efficiency
    (e) A Higher Chance of Meeting the Company’s Goals
    (f) Better Team Harmony
    (g) Workforce Stability

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    1. Appreciate your comments and considering the salary and wagers the management must focus on major components of the structure of each and every employee, such as payments, which hearten the employees by rewarding them according to their performance, personal or special allowance on their skills, abilities, implementation and service period, additional wages, such as vacation with pay, pensions, bonuses (Al-Madi et al. 2017). Intrinsic rewards describe as intangible in nature and are appreciation, caring attitudes from employers and job rotation. These elements are within the job itself as satisfaction, contentment from fulfilling a task and admiration from employees (Zafar et al, 2014).

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  6. We understand and same is evident that humans are very complicated and are made up of a number of traits and with motivation, these influences are both inherited and acquired from our environment and influences(Lussier, 2013).

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    1. Appreciate your comments and in 1969 Clayton Alderfer, inflate the basic need of Maslow’s Hierarchy of Needs theory and refined them in to existence needs, relatedness needs, and growth needs which will describes the environmental and internal factors to be motivated (Yang et.al 2011). The theory is based on the relationship between satisfaction of needs and human desires. Existence needs describes the various forms of safety, physiological and material needs such as prevention of fear, anxiety, threat, danger, leisure, exercise, sleep, living, including food and clothing (Yang et.al 2011). Relatedness needs express as senses of security, belonging, and respect, such as trust of humanity, prevention from all forms of isolation, loneliness and love and caring from others, social status, superiority, importance and compliment (Yang et.al 2011). Growth needs outlines the needs for self-esteem and self-actualization, such as the ability to pursue, to seek knowledge, to achieve, to control, to build confidence and achieving individual’s goals and develop his or her personality (Yang et.al 2011).

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  7. The motivated employees surely are the ones who will take the organization right the top in today's competitive business world. Vanek (2012), explains that in the 21st Century, it is the Human resource, more or less the ones with knowledge and higher productivity are the biggest assets the organizations possess.

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    1. There is no uncertainty that the human asset is the key impalpable strength for any organization. In the current competitive and changing business environment, the employees are the core assets other than the tangible aspects that metamorphose an organization from its competitors (Sabri 2017). Organization tends to improve the ability and skills of their existing employees to motivate them to face the rapid changing factors and competition and it will be an added advanta

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  8. According to Yang (2008), on individual performance showed that performance of the individuals cannot be verified. Similarly he asserts that organizations can use direct bonuses and rewards based on individual performance if employee performance is noticeable.

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  9. Building a committed and motivated workforce is well-chosen as the main objective, and a key to success in the competitive environment (Mohsen et al., 2004). Engaged employees have a knowledge of energetic and successful connection with their work activities and see themselves as capable to deal well with the demands of their job (Schaufeli & Bakker, 2004).

    ReplyDelete
    Replies
    1. A motivated workforce means highly fruitful staff, all of which will help overcome cooperation objective and goals and it will lead to better profits and outcomes of the organization (Sabri 2017). Motivated employees create a bond and connection with the management to improve the abilities and performance on bough parties. The connection will help  identify the needs and wants in bough parties and will help to build a win situation within organizations. ). According to Manzoor (2012), most of the cooperates are facing challengers of employee retention, regardless of their size, technology, and market forces following competitiveness in the current market conditions. The challengers can be overcome through the adoption of strong bonding between employees and employers.  If the employee turnover is higher than the expected level, it will gain a big loss to the corporate in terms of lack of skilled staff, performance, productivity, and finally profits.

      Delete
  10. While the two-factor theory has many practical implications, it is not without its flaws. For example, as mentioned by Kunchala (2017) an inexperienced employee could perceive job security as a hygiene factor, whereas a more experienced employee would see it as a motivator. Hence, factors that motivate can change during an individual's lifetime. Moreover, the theory overlooks situational variables.

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    1. Herzber’g, Mausner and Snyderman published the two factor theory in 1959 and the theory was influenced by Maslow’s hierarchy of needs theory (Alshmemri 2017). The theory states that there are two factors which influence the motivation in a workplace.
      • Motivation – which can influence the employee to work hard and to improve productivity
      • Hygiene factors – which will not influnace the employee to work hard of improve productivity but will influence to become unmotivated
      Motivation Factors are Intrinsic Factors that will increase employees’ job satisfaction; while Hygiene Factors are Extrinsic Factors to prevent any employees’ dissatisfaction (Kian et.al 2013). Motivation factors included achievement, recognition, the work itself, responsibility, advancement and the possibility for growth, while hygiene factors included company policies and administration, relationship with supervisors, interpersonal relations, working conditions and salary (Alshmemri 2017).

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  11. Maximizing performance in every organization expectation when it comes to profit earning. To compete with this evolving competitive market, companies have to build up a workforce with high morale. Motivating employees by rewarding according to a proper system will result in a positive attitude among employees towards work. So that it will lead the organization to earn more profit and stay in the competitive market. It is the leader's responsibility to develop proper systems to reward employees in both monetary and non-monetary ways (Dessler, 2013)

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  12. The biggest challenge facing organizations today is how to manage the labor force turnover that may result from the migration of large numbers of industrial workers. This may be due to their lack of motivation and commitment to the organization. Therefor, Motivating employees in the right way helps to avoid other negative effects of democratization and dissatisfaction, such as absenteeism, low activity, low morale, less team contribution, less coordination, less orientation towards organizational goals.(Varma,C.2018)

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  13. Adelenwa (2013) stated that motivation can be defined by using two interdependent dimension which are energy and direction and the energy dimension is the driving force behind one's effort and determination while engaging in an activity and the direction dimension determines the field in which the effort is projected.

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  14. Motivation is fundamentally meant to facilitate behavioral alteration. It is a force that enables an individual to act in the direction of a particular objective. According to the study of Grant (2008) held on employee motivation; motivation forced such result as productivity, performance and persistence (Grant, 2008). According to the studies of (Ryan and Deci, 2000; Thomas, 2002, as cited in Grant, 2008); motivated employees are more oriented towards autonomy and freedom and are more self driven as compared to less motivated employees which lead to availing developmental opportunities more correctly. Similarly employee commitment with their
    work and jobs is more, if they are motivated as compared to less motivated employees (Guay et al., 2000; Vansteenkiste et al., 2007).

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  15. Many scholars have argued that employees who are motivated highly normally are characterized by high productivity. Nevertheless, Mosley (2012), contended that good performance does not only emanate from motivation but also other factors such as employee’s ability and skills, supplies, equipment, and time.

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Limitations to employee motivation due to leadership styles in consumer durable industry

  The word “motivation” came to light from a Latin word “movere” that means to move. Thus, it generates a reflection of uplifting the employ...