RESEARCH ON EMPLOYEE

MOTIVATION

INTRODUCTION:
Managements basic job is the effective utilization of human resources for
achievements of organizational objectives. The personnel management is
concerned with organizing human resources in such a way to get
maximum output to the enterprise and to develop the talent of people at
work to the fullest satisfaction. Motivation implies that one person, in
organization context a manager, includes another, say an employee, to
engage in action by ensuring that a channel to satisfy those needs and
aspirations becomes available to the person. In addition to this, the strong
needs in a direction that is satisfying to the latent needs in employees and
harness them in a manner that would be functional for the organization.

Employee motivation is one of the major issues faced by every

organization. It is the major task of every manager to motivate his
subordinates or to create the will to work among the subordinates. It
should also be remembered that a worker may be immensely capable of
doing some work; nothing can be achieved if he is not willing to work. A
manager has to make appropriate use of motivation to enthuse the
employees to follow them.
The importance of employee motivation is now being recognized by all the
major organizations as it has a significant impact on the overall
performance of the organization. For any organization to achieve its goals
it is important to keep their employee motivated and satisfied. When
employees are motivated the individual quality and quantity of
performance increases which directly has a positive effect on the overall
performance of the organization. Employee motivation leads to job
satisfaction which also plays an important role inincreasing the overall
efficiency of the organization. The presence of these factors may not
bears important but the absence of these factors can have an adverse
effect on the organizational performance. One of the main jobs of a
manager is to motivate his or her employees.

BACKGROUND:
Researchers and managers have believed that organizational objectives
and goals are unachievable without enduring commitment of members
and employees of the organization. The world is going through an
enormous change. Globalization of businesses is increasing and
information technologies are advancing (DOCKEL, 2003). They lead to
changes in the way business is done, the way employees behave and the
way managers manage their employees. For companies to remain
successful, they are required to adapt to these changes (VERCUEIL, 2001).
The changes that are reshaping the world have altered the way
organizations operate and have also led to changes in employee
characteristics(ROBBINS, 2000).According to STONER ET-AL (2000),
Motivation is a human psychological characteristic that contributes to a
person degree of commitment in an individual behavior.
BALUNYWAS(2005), define employees motivation as identification of the
desires and needs of subordinates and creating an atmosphere to attain
organizational goals and objectives. The term motivation has been defined
variously by different authorities in the study of Psychology, Management
and allied disciplines. According to COLE (1995), motivation is essentially
about what drives a person to work in a particular way and with a given
amount of effort. To BUFORD ET AL (1995), motivation is a pre-disposition
to behave in a purposive manner to achieve specific needs. LINDNER

(2004) perceives motivation as a psychological process that gives

behavior purpose and direction. Obviously, there are divergences in these
definitions, though some common threads seem to exist. What is common
to the fore going definitions, among others, is that something has to
trigger an employee to perform in an exceptional way.
Motivation is operationally defined as a set of indefinite factors that cause
a person (an employee) to perform his or her duties in a special way. The
factors are described as indefinite because they constantly change with
time, as pointed out by KOVACH (1987).What is implicit in this definition is
that an employee will not work in that special way if he or she is not
encouraged (motivated) to do so. An understanding of this definition
depends on the appreciation of some existing theories of motivation.
According to GREENBERG AND BARON (2003, 2000) definition of
motivation could be divided into three main parts. The first part looks at
arousal that deals with the drive, or energy behind individual (s) action.
People turn to be guided by their interest in making a good impression on
others, doing interesting work and being successful in what they do. The
second part referring to the choice people make and the direction their
behavior takes. The last part deals with maintaining behavior clearly
defining how long people have to persist at attempting to meet their
goals.
Motivation can be intrinsic and extrinsic. Extrinsic motivation concerns
behavior influenced by obtaining external rewards (HITT, ESSER, &
MARRIOTT, 1992). Praise or positive feedback, money, and the absence of
punishment are examples of extrinsic or external rewards (DECI,
1980).Intrinsic motivation is the motivation to do something simply for the
pleasure of performing that particular activity (HAGEDOORN AND
VANYPEREN, 2003). Examples of intrinsic factors are interesting work,
recognition, growth, and achievement. Several studies have found there
to be a positive relationship between intrinsic motivation and job
performance as well as intrinsic motivation and job satisfaction (LINZ,
2003).
In today's highly competitive business environment intrinsically
motivated employees will perform better and, therefore, be more
productive, and also because satisfied employees will remain loyal to their
organization and feel no pressure or need to move to a different firm.

RESEARCH PROBLEM

The research problem in this study is associated with the motivation of

employees of NATIONAL BANK OF PAKISTAN. There are a variety of factors
that influence a person's level of motivation. Some of these factors
include.

The pay and benefits

The perceived fairness of promotion system within a company
Quality of the working conditions
Leadership and social relationships
Career development opportunities etc.

motivated employees are a great asset to any organization. It is because

the motivation and Job Satisfaction is clearly linked. Hence this study is
focusing on the employee motivation in the organization.
What are the factors which help to motivate the employees?

DEFINING EMPLOYEE MOTIVATION:

Motivation is an employee's intrinsic enthusiasm about and drives to
accomplish activities related to work. Motivation is that internal drive that
causes an employee to decide to take action.
Every employee has activities, events, people, and goals in his or her life
that he or she finds motivating. So, motivation about some aspect of life
exists in each person's consciousness and actions.
The trick for employers is to figure out how to inspire employee motivation
at work. To create a work environment in which an employee is motivated
about work, involves both intrinsically satisfying and extrinsically
encouraging factors. Employee motivation is the combination of fulfilling

the employee's needs and expectations from work and the workplace
factors that enable employee motivation - or not. These variables make
motivating employees challenging.

OBJECTIVES OF THE STUDY:

PRIMARY OBJECTIVE
To study the important factors which are needed to motivate the
employees.

SECONDARY OBJECTIVE
To study the effect of monetary and non-monetary benefits provided
by the organization on the employees performance.
To study the effect of job promotions on employees.
To learn the employees satisfaction on the interpersonal
relationship exists in the organization.
To provide the practical suggestion for the improvement of
organizations performance.

PURPOSE:
The purpose of this study was to describe the importance of certain
factors in motivating employees.

RATIONALE:
Motivation is an important tool in the hands of the manager for inspiring
the work force and making them to do work with enthusiasm and
willingness .If it's an important function of the management to motivate
the people working in the organization to perform the work assigned to
them effectively and efficiently. The management has to understand the
Human behavior if it has to provide maximum motivation to the
personnel. Motivation is something that moves a person into action and
continues him in the course of action enthusiastically. The role of
Motivation is to develop and intensify the desire in every member of
organization to work effectively and efficiently in his position. Motivation is
an important factor which increases the desire willingness and enthusiasm
in workers, to apply their great potentialities for the achievement of
common goals.

LITERATURE REVIEW:
What is motivation?
The word motivation has been derived from motive which means any idea,
need or emotion that prompts a man in to action. Whatever may be the
behavior of man, there is some stimulus behind it .Stimulus is dependent
upon the motive of the person concerned. Motive can be known by
studying his needs and desires. There is no universal theory that can
explain the factors influencing motives which control mans behavior at
any particular point of time. In general, the different motives operate at
different times among different people and influence their behaviors. The
process of motivation studies the motives of individuals which cause
different type of behavior.
Motivation is the core of management. Motivation is an effective
instrument in the hands of the management in inspiring the workforce .It
is the major task of every manager to motivate his subordinate or to
create the will to work among the subordinates. It should also be
remembered that the worker may be immensely capable of doing some
work, nothing can be achieved if he is not willing to work creation of a will
to work is motivation in simple but true sense of term. Motivation is an
important function which very manager performs for actuating the people
to work for accomplishment of objectives of the organization .Issuance of
well-conceived instructions and orders does not mean that they will be
followed.
A manager has to make appropriate use of motivation to enthuse the
employees to follow them. Effective motivation succeeds not only in
having an order accepted but also in gaining a determination to see that it
is executed efficiently and effectively. In order to motivate workers to work
for the organizational goals, the managers must determine the motives or
needs of the workers and provide an environment in which appropriate
incentives are available for their satisfaction. If the management is
successful in doing so; it will also be successful in increasing the
willingness of the workers to work. This will increase efficiency and
effectiveness of the organization .There will be better utilization of
resources and workers abilities and capacities.

EMPLOYEE MOTIVATION:
In order to achieve the goal of strategically solving organizational
problems, it is very important for the managers to adopt various
approaches to make sure that the employee performance is consistently
getting better. The reason why researchers and investigators have been
stressing on the selection of appropriate leadership style is because

effective leadership and right style of leadership can help in motivating

employees (GOLEMAN 2010).

MOTIVATION THEORIES
Understanding what motivated employees and how they were motivated
was the focus of many researchers following the publication of the Haw
throne study results (TERPSTRA, 1979). SIX MAJOR APPROACHES that
have led to our understanding of motivation are MCCLELLANDS
ACHIEVEMENT NEED THEORY, BEHAVIOR MODIFICATION THEORY;
ABRAHAM H MALLOWS NEED HIERARCHY ORDEFICIENT THEORY OF
MOTIVATION. J.S. ADAMS EQUITY THEORY, VROOM SEXPECTATION
THEORY, TWO FACTOR THEORY.
1. MCCLELLANDS ACHIEVEMENT NEED THEORY.

According to McClellands there are three types of needs1. Need for Achievement

This need is the strongest and lasting motivating factor. Particularly in

case of persons who satisfy the other needs. They are constantly preoccupied with a desire for improvement and lack for situation in which
successful outcomes are directly correlated with their efforts. They set

more difficult but achievable goals for themselves because success with
easily achievable goals hardly provides a sense of achievement.
2. Need for Power

It is the desire to control the behavior of the other people and to

manipulate the surroundings. Power motivations positive applications
results in domestic leadership style, while it negative application tends
autocratic style.
3. Need for affiliation

It is the related to social needs and creates friendship. This results in

formation of informal groups or social circle.
2. BEHAVIOR MODIFICATION THEORY;

According to this theory people behavior is the outcome of favorable and

unfavorable past circumstances. This theory is based on learning theory.
Skinner conducted his researches among rats and school children. He
found that stimulus for desirable behavior could be strengthened by
rewarding it at the earliest. In the industrial situation, the relevance of this
theory may be found in the installation of financial and non-financial
incentives. More immediate is the reward and stimulation or it motivates.
Withdrawal of reward incase of low standard work may also produce the
desired result. However, researches show that it is generally more
effective to reward desired behavior than to punish undesired behavior.
3. ABRAHAM H MASLOW NEED HIERARCHY OR DEFICIENT THEORY OF
MOTIVATION

The intellectual basis for most of motivation thinking has been provided
by behavioral scientists, A.H Maslow and Frederick Herzberg, whose
published works are the Bible of Motivation.
Although Maslow himself did not apply his theory to industrial situation, it
has wide impact for beyond academic circles. DOUGLOUS MAC GREGOR
has used Maslows theory to interpret specific problems in personnel
administration and industrial relations. The crux of Maslows theory is that
human needs are arranged in hierarchy composed of five categories. The
lowest level needs are physiological and the highest levels are the selfactualization needs.
Maslow starts with the formation that man is a wanting animal with a
hierarchy of needs of which some are lower in scale and some are in a
higher scale or system of values. As the lower needs are satisfied, higher
needs emerge. Higher needs cannot be satisfied unless lower needs are
fulfilled. A satisfied need is not a motivator. This resembles the standard
economic theory of diminishing returns. The hierarchy of needs at work in
the individual is today a routine tool of personnel trade and when these

needs are active, they act as powerful conditioners of behavior- as

Motivators.
Hierarchy of needs; the main needs of men are five. They are
physiological needs, safety needs, social needs, ego needs and selfactualization needs, as shown in order of their importance.

1. Physiological or Body Needs: -

The individual move up the ladder responding first to the physiological

needs for nourishment, clothing and shelter. These physical needs must
be equated with pay rate, pay practices and to an extent with physical
condition of the job.
2. Safety: -

The next in order of needs is safety needs, the need to be free from
danger, either from other people or from environment. The individual want
to assured, once his bodily needs are satisfied, that they are secure and
will continue to be satisfied for fore seeable feature. The safety needs may
take the form of job security, security against disease, misfortune, old
agate as also against industrial injury. Such needs are generally met by
safety laws, measure of social security, protective labor laws and
collective agreements

3. Social needs: -

Going up the scale of needs the individual feels the desire to work in a
cohesive group and develop a sense of belonging and identification with a
group. He feels the need to love and be loved and the need to belong and
be identified with a group. In a large organization it is not easy to build up
social relations. However close relationship can be built up with at least
some fellow workers. Every employee wants to feel that he is wanted or
accepted and that he is not an alien facing a hostile group.
4. Ego or Esteem Needs: -

These needs are reflected in our desire for status and recognition, respect
and prestige in the work group or work place such as is conferred by the
recognition of one merit by promotion, by participation in management
and by fulfillment of workers urge for self-expression. Some of the needs
relate to ones esteemed. need for achievement, self-confidence,
knowledge, competence etc. On the job, this means praise for a job but
more important it means a feeling by employee that at all times he has
the respect of his supervisor as a person and as a contributor to the
organizational goals.
5. Self-realization or Actualization needs: -

This upper level need is one which when satisfied provide insights to
support future research regarding strategic guidance for organization that
are both providing and using reward/recognition programs makes the
employee give up the dependence on others or on the environment. He
becomes growth oriented, self-oriented, directed, detached and creative.
This need reflects a state defined in terms of the extent to which an
individual attains his personnel goal. This is the need which totally lies
within oneself and there is no demand from any external situation or
person.
4. J.S ADAMS EQUITY THEORY

Employee compares her/his job inputs outcome ratio with that of

reference. If the employee perceives inequity, she/he will act to correct
the inequity: lower productivity, reduced quality, increased absenteeism,
voluntary resignation.
5. VROOMS EXPECTATION THEORY

Vrooms theory is based on the belief that employee effort will lead to
performance and performance will lead to rewards(Vroom, 1964). Reward
may be either positive or negative. The more positive the reward the more
likely the employee will be highly motivated. Conversely, the more
negative the reward the less likely the employee will be motivated.

6. TWO FACTOR THEORY

Douglas McGregor introduced the theory with the help of two views; X
assumptions are conservative in style Assumptions are modern in style.
X Theory

Individuals inherently dislike work. People must be coerced or controlled to

do work to achieve the objectives. People prefer to be directed
Y Theory

People view work as being as natural as play and rest People will exercise
self-direction and control towards achieving objectives they are committed
to People learn to accept and seek responsibility.

TYPES OF MOTIVATION:
1. Intrinsic motivation occurs when people are internally motivated to
do something because it either brings them pleasure, they think it is
important, or they feel that what they are learning is morally
significant .
2. Extrinsic motivation comes into play when a student is compelled to
do something or act a certain way because of factors external to
him or her (like money or good grades)

THE PROCESS OF EMPLOYEE MOTIVATION

FINANCIAL INCENTIVES:
Incentive is an act or promise for greater action. It is also called as a
stimulus to greater action. Incentives are something which are given in
addition to wagers. It means additional remuneration or benefit to an
employee in recognition of achievement or better work. Incentives provide
a spur or zeal in the employees for better performance. It is a natural
thing that nobody acts without a purpose behind. Therefore, a hope for
are ward is a powerful incentive to motivate employees. Besides monetary
incentive, there are some other stimuli which can drive a person to better.
This will include job satisfaction, job security, job promotion, and pride for
accomplishment. Therefore, incentives really can sometimes work to
accomplish the goals of a concern. The need of incentives can be many: To
increase productivity, To drive or arouse a stimulus work, To enhance
commitment in work performance, To psychologically satisfy a person
which leads to job satisfaction, To shape the behavior or outlook of
subordinate towards work, To inculcate zeal and enthusiasm towards work,
To get the maximum of their capabilities so that they are exploited and
utilized maximally.

 JOB ENLARGEMENT:
Job enlargement (sometimes also referred to as horizontal
loading)involves the addition of extra, similar, tasks to a job. In job
enlargement, the job itself remains essentially unchanged. However, by
widening the range of tasks that need to be performed, hopefully the
employee will experience less repetition and monotony that are common
on production lines which rely upon the division of labor.
With job enlargement, the employee rarely needs to acquire new skills to
carry out the additional task, and the motivational benefits of job
enrichment are not usually experienced. One important negative aspect is
that job enlargement is sometimes viewed by employees as a requirement
to carry out more work for the same amount of pay.

JOB ENRICHMENTJob enrichment is connected to the concept of job enlargement. Job

enrichment is the process of "improving work processes and environments
so they are more satisfying for employees". Many jobs are monotonous
and unrewarding - particularly in the primary and secondary production
industries. Workers can feel dissatisfied in their position due to a lack of a
challenge, repetitive procedures, or an over-controlled authority structure.
Job enrichment tries to eliminate these problems, and bring better
performance to the workplace.

JOB ROTATION:
It refers to shifting an employee from one job to another. Such job rotation
doesnt mean hanging of their job but only the employees are rotated. By
this it helps to develop the competency in several job which helps in
development of employees.

PARTICIPATION
Participation refers to involvement of employee in planning and decision
making .it helps the employees feel that they are an asset of the
organization which helps in developing ideas to solve the problems.

DELEGATION OF AUTHORITY
Delegation of authority is concerned with the granting of authority to the
subordinates which helps in developing a feeling of dedication to work in
an organization because it provides the employees high morale to perform
any task

 QUALITY OF WORK LIFE

It is the relationship between employees and the total working
environment of organization. It integrates employee needs and well-being
with improves productivity, higher job satisfaction and great employee
involvement. It ensures higher level of satisfaction.

MANAGEMENT BY OBJECTIVES:
It is used as a motivation and technique for self-control of performance. By
this technique superior and subordinates set goals and each individual
subordinates responsibilities clearly defined which help to explore the sill
and use in the organization effectively.

BEHAVIOR MODIFICATION:
The work in desired behavior in order to modify behavior the last
technique of motivation is behavior modification. It develops positive
motivation to the workers to do.

RESEARCH HYPOTHESIS:
"A hypothesis is a preliminary or tentative explanation by the
researcher of what the researcher considers the outcome of an
investigation will be".
It is an informed/educated guess. It indicates the expectations of the
researcher regarding certain variables. It is the most specific way in which
an answer to a problem can be stated. Research hypotheses are the
specific testable predictions made about the independent and dependent
variables in the study. Hypotheses are couched in terms of the particular
independent and dependent variables that are going to be used in the
study. The research hypothesis of this study is as follows.
Ho: There is no significant relationship between incentives and
employees performance.
Ho: There is no significant relationship between career development
opportunities and the extent of employee motivation
Ho: There is no significant relationship between performance
appraisal system and the extent of motivation.
Ho: There is no significant relationship between interpersonal
relationship in the organization and extent of motivation.

RESEARCH DESIGN:
PURPOSE OF STUDY:
The study made by us is descriptive in nature. It is made to know the
characteristics of the variable selected by us. It is also made to check the
hypothesis.

TYPE OF INVESTIGATION:
Investigation conducted by us is correlation one. Because we identified
and discussed the variable dependent as well as independent.

STUDY SETTING:
The study we made in NATIONAL BANK OF PAKISTAN is field study because
it is done in natural environment. Nothing is hidden or ignored in it. All the
points are discussed clearly.

UNIT OF ANALYSIS:
Unit of analysis taken by us for the analysis of our project are
employees. Because all the questionnaires are filled by them and their
problems will leave impact on it. So individual person is unit of analysis.

TIME HORIZON:
Study is cross sectional as the data is only being collected once.

SAMPLING SIZE:
Random sampling method is used by us. The sample size taken by us is of
25 employees among them 15 were male and 10 were female.

DATA COLLECTION METHOD:

The primary method of data collection adopted by us is questionnaire. A
detailed questionnaire about motivational incentives has been made to
found the required result. For evaluation and getting information, different
types of information are used like liked scale and ratio scale.

SECONDARY DATA
Different websites, journal articles, and books is used to collect the
secondary data for the report on the basis of which primary data is
collected.

PRIMARY DATE
Employees of NATIONAL BANK OF PAKISTAN were interviewed for the
collection of primary data. The employees were requested to fill out a
detailed questionnaire which can be viewed in Appendix II

FIELD WORK:
Data was collected through questionnaire by personally visiting the
NATIONAL BANK OF PAKISTAN.

RESEARCH METHODOLOGY:
The study conducted is descriptive in nature. It is also hypothesis testing
because we are testing certain relationship as well. It is undertaken in
order to establish and be able to designate the characteristics of variables
of attention in situation.

THEORETICAL FRAMEWORK:
Monetary
incentive
Motivation

Non-monetary
incentives

Value of Incentive

VARIABLES OF INTEREST:
DEPENDENT VARIABLE
PRODUCTIVITY OF EMPLOYEES

INDEPENDENT VARIABLE
MONETARY AND NON-MONETARY INCENTIVES

Productivity of
Employees

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CONCEPTUALIZATION:

Internal and external factors that stimulate desire and energy in

people to be continually interested and committed to a job, role or
subject, or to make an effort to attain a goal.
Business
Dictionary

Employee motivation is the "psychological forces that determine the

direction of a person's behavior in an organization, a person's level
of effort and a person's level of persistence"
Gareth Jones, Jennifer George and Charles Hill
(2000: 427)

Motivation is a need or desire that serves to energize behavior and

to direct it towards a goal.

David Myers (1996:

297)

OPERATIONAL DEFINITION:

Motivation is a need or desire that motivates employee to perform

his/her job in a more efficient manner.

DIMENSIONS:

An employee motivation about work, involves both intrinsically satisfying

and extrinsically encouraging factors. Employee motivation is the
combination of fulfilling the employee's needs and expectations from work
and the workplace factors that enable employee motivation - or not.

Dimensions:
Intrinsic & Extrinsic Motivation
--appreciation
--healthy relations with employer
--reward on good performance
Workplace Factors
--work environment
--flexible working hours

References:
Books:

Research methodology, C R Kothari from New Age Publication

Human Resources Management, K. Ashwathappa 4Th edition.
Human Resources Management, V.S.P.Rao from Excel New
Publication, New Delhi.

Website:

www.google.com
www.humanresources.hrvinet.com
www.scribd.com
www.wikipedia.com
www.igp-group.com