EMPLOYEES MOTIVATION AND ORGANIZATIONAL SUCCESS Final Project Proposal

Subject: Research Methods and Techniques Teacher: Sir Dr. Naveed Group: Qasim Farooq Shaan Rasool

INTRODUCTION
Motivation is a process of an individual's experience of feeling enabled (Corsun and Enz 1999). Motivation can be operationally defined with the help of resembling variables such as motives, needs, values, and replacement (Hogan and Hogan, 1990). Motivating employees and training them is an essential source of firms' sustainable competitive advantage. Employees should be motivated to believe that they have organization support; it is the degree to which practices and norms make employees believe that their organization values their contributions and cares about their well-being (Eisenberger et al. 1986). Employees are extrinsically motivated if they are able to satisfy their needs indirectly, especially through monetary compensation. Money is a goal which provides satisfaction independent of the actual activity itself (Calder and Staw 1975). Organizations can boost employees motivation by supporting them with adequate resources, recognizing the significance of their work, and showing interest and respect for their efforts (Yoon, Han, and Seo 1996). In this challenging environment, empowerment has been proposed as a critical intervention program to boost motivation, proactively, and mental/physical health (Conger and Kanungo 1988) The results have showed that both promotion and wages positively effects the relation with employees work motivation. A comparison of the relative strengths of the effects reveals that a reasonable promotion was a more powerful motivator than wage level and wage increase. (Yoon and Lim 1999).

Motivation is a process of an individual's experience of feeling enabled (Corsun and Enz 1999). Motivation can be operationally defined with the help of resembling variables such as motives, needs, values, and replacement (Hogan and Hogan, 1990). Motivating employees and training them is an essential source of firms' sustainable competitive advantage. Employees should be motivated to believe that they have organization support; it is the degree to which practices and norms make employees believe that their organization values their contributions and cares about their well-being (Eisenberger et al. 1986). Employees are extrinsically motivated if they are able to satisfy their needs indirectly, especially through monetary compensation. Money is a goal which provides satisfaction independent of the actual activity itself (Calder and Staw 1975, p. 599).4

Motivating employees is necessary to enhance their autonomy (Kanter 1983), leadership skills (Burke 1986), team-building experiences (Neilsen 1986), intrinsic motivation or self determination (Deci 1980), internal locus of control (Rotter 1966), effectance motivation or competency (White 1959), sense of control (Lawler 1992), need for power (McClelland 1975), and self-efficacy (Bandura 1986). Organizations can gain beneficial outcomes by employees' motivation and thus enhancing their self-efficacy. Self-efficacy refers to belief in one's own ability to perform a specific task (Bandura 1982; Gecas 1989; Schwalbe 1985). According to Bandura (1986), it has nothing to do with opportunities and constraints, as such; it concerns judgments about what one can do with the existing opportunities and constraints. Studies have reported motivation as a significant predictor of high performance in a variety of organizational domains. (Bandura 1982, 1986). People with high levels of motivation consider themselves competent and able to influence their jobs and work environments in meaningful ways. They are more proactive than others in that they anticipate problems and act independently. They tend to engage actively in the creation of whatever is new and challenging (Spreitzer 1995). Also, they are less constrained by technical or rule-bound aspects of work. (Thomas and Velthouse 1990).

The idea of pay-for performance has been adapted by many public agencies as a new means of enhancing motivation and improving organizational performance in the public sector under the performance management and recognition system. (Brudney & Condrey, 1993). employees are provided with three types of opportunities: Promotion, Pay, Challenges at work in SMEs that also motivate the employee (Ospina, 1996). These three benefits, i.e. fast improvement in gaining higher positions, a high level of payment, and meeting interesting and challenging work, they all contribute to the improvement of workers motivation, job satisfaction and hence leading to organizational success. Practices of delay in promotions and low wage may be less beneficial to maximize employee interests; thus, they may de-motivate employees and reduce their commitment to the organization (Rosenbaum, 1984).

In the internal labor markets, employees are motivated by higher positions rather than higher wages to win the competition. An if the employees value higher positions then Promotion acts as an incentive mechanism, (Takeuchi 1995), the speed of advancement is lagged because slow promotion causes employees to stay in the competition of promotion for a long period, hence

sustaining a high level of motivation. It also avoids de-motivating those who were dropping from the fast track. Incentives are related to promotion. (Hackman and Oldham 1976) theory of job characteristics suggested that the nature of the job itself is an important source of motivation. This theory advocated that the nature of the job, rather than the pay and promotion, has mechanisms to motivate employees.

Incentives that are given along with promotions are relatively larger than wage increases. The competition which is observed between employees lasts all throughout their company career from entry to retirement. Employees work hard not only because they want higher wages but also because they do not want to lose to their rivals (Ishida, 1985). In co-operation, the manager and employee have a vested interest in each others success; they want each other to perform effectively because that helps them both succeed. With this orientation, they discuss issues and opposing ideas fully, communicate information accurately, and exchange resources and assistance (Deutsch, 1973, 1980; Johnson and Johnson, 1989; Johnson et al., 1983) Researchers have focused on the motivation of individual employees (McClelland, 1987), but managers can also affect motivation by structuring the interdependence and interaction between themselves and their employees (Leavitt and LipmanBlumen, 1995). Managers are being advised to motivate people through teamwork (Koch, 1995).

PROBLEM STATEMENT
With every job there is one common problem that people face, which is getting stuck in the machine of time and routine. This leads to, and is known to be a de-motivator by the experts. It is for this reason that human resource managers are asked to ensure that there are activities and varied ways and means to keep employees well motivated from time to time. The importance of motivation multiplies at the workplace. This is because an adult spends most of his or her hours in the office. Targets and goals have to be met. As long as employees are motivated, it would benefit the organization in a number of ways, for instance increase in productivity, improved performance, etc., which would further lead to organizational success. A growing demotivated work-force marks a pervasive problem for organizations today and could determine the context of the future economies. Demotivated employees do not identify with their jobs but often see themselves as having to do what they are told and feel that there is little point in doing more than the minimum to get by. If employees are not motivated or if the top-level management fails to do so the organization would face downfall. Hence employee motivation is essential for the organization to do its best.

RATIONALE OF THE STUDY

Many times businesses and organizations have policies that negatively affect the performance of their customers as well as their employees. These policies or even lack of policies and subsequent enforcement do as much if not more damage to the organization's overall work productivity than anything else. If an organization truly wants to master success by increasing work productivity, before attempting to motivate its employees, all demotivating obstacles must be identified and removed. Most people want to do a good job. However when there is no course (strategic plan), no identification of acceptable behaviors (values statement) and no consistently communicated goals (mission statement), the crew begins the trip already behind. And this demotivation is supported by business productivity research. Many people do not actually realize this, but the fact is that most human beings spend a maximum number of waking hours at the workplace. This is one place that gives the means for

survival in the form of monetary returns. And in spite of this, there are various situations and circumstances that occur at the workplace that lead one downhill - down the path of demotivation; which could prove harmful for the organization. Motivation has a strong relationship with organizations success and it is necessary to maintain this relationship and help grow it stronger with every day. And it is through the organizations employees it could be achieved. Top-level management plays the vital role in motivating the employees and driving organization towards success.

OBJECTIVES OF THE STUDY

The main purpose of this study is to examine the relevance of employee motivation to organizational success. The objectives of this study would be:

To identify all the possible key factors influencing an employee to work as a diversified force towards organizational success.

To improve employee performance for better productivity levels.

To make the employees work as a team for the betterment of the organization.

LITERATURE REVIEW
Human motivation and organizational success are subjects that command the interest of multiple disciplines. Motivation is one of the focal research interests to many public administration scholars (Crewson, 1997). Responding to the concerns about the decline of morale and motivation of public employees, many scholars began to pay close attention to motivational issues, job satisfaction, and organizational success in different organizations. (Volcker Commission, 1989). Motivated employees are needed in our rapidly changing workplaces. Motivated employees help organizations survive. Motivated employees are more productive. The significance of employee motivation, influencing the behaviors of their employees to behave in certain ways, can ultimately decide the success or failure of an organization (Crewson, 1997).

Kovach (1987) suggests that if a company knows why its employees come to work on time, stay with the company for their full working lives, and are productive, then the company may be able to ensure that all of their employees behave in that way. Such a company would have a decided marketplace advantage over competitors suffering from absenteeism, costly re-training programs, and production slowdowns.

Moreover, Wiley (1997) also suggests ensuring the success of a company, employers must understand what motivates their employees, and such understanding is essential to improving productivity.

Despite the multiplicity of meanings and apparent ambiguity of the concept of employee motivation, it has been argued that employee motivation is a better measurement of human behavior in organizations than some other related measures including job satisfaction and job involvement (Steers & Porter, 1983). Crewson also summarized that motivation has been operationalized as a combination of three distinct factors: a strong belief and acceptance of the organization's goals and values, eagerness to work hard for the organization, and a desire to remain a member of the organization" (1997).

Classical motivation theories generally suggest that there are two qualitatively different motivation dimensions-extrinsic factors and intrinsic factors. The two factors jointly affect human behaviors (i.e., organizational commitment or job satisfaction) in work organizations, but these researchers differ on how motivation factors actually contribute to organizational success (Herzberg, Mausner, & Snyderman, 1959).

Some studies even explore the relationship between organizational success and employee motivation. Angle and Perry studied organizational success as an independent variable to

explain multiple dimensions of employee motivation (1981). Balfour and Wechsler's (1991) study provided an interesting observation: that organizational success tends to have a positive association with motivation of employees and their desire to stay at a job but not necessarily with their willingness to put forth extra effort for the organization. They attempted to verify a theoretical construct and measures of organizational success by developing a causal model of employee motivation in organizations. This model posits the causal relationships among motivation antecedents, organizational out-come (turnover) and organizational success. Balfour and Wechsler's (1996) study found that individual and organizational characteristics (working experiences, organizational arrangement, and job nature) jointly affect the degree of organizational success. One of their most insightful findings is that the willingness to do extra work for the organization is closely associated with internal motivation factors.

Motivation refers to the forces either within or external to a person that arouse enthusiasm and persistence to pursue a certain course of action. These concepts of motivation suggest that motivation has something to do with a persons behavior, a cause of behavior, or the reasons of individual behavior, and the causes of individual behaviors may differ because of different individual needs. The intuition of these concepts to managers is that they must first understand and discover these individual differences and their needs, and develop proper models to motivate employees by fulfilling these different needs toward common organizational objectives ( Daft and Marcic,2004 ).

Variables
There are two kinds of variables used in this study:

Independent variables: Performance Productivity Turnover Organization commitment Job satisfaction Employee motivation

Dependent variables: Organization success

Theoretical Framework

Organizational Success

Employees Motivation

PRODUCTIVITY

PERFORMANCE

JOB SATISFACTION

ORGANIZATIONAL COMMITMENT

RESEARCH DESIGN

A survey based primary data will be used to examine relationship between employees motivation and organization success. It will also examine the moderating impact of motivation towards women participation in SMEs.