66th International Scientific Conference on Economic and Social Development – Rabat, 26-27 March, 2021

WORK ENVIRONMENT AS AN IMPORTANT MOTIVATION

FACTOR FOR EMPLOYEES
Andreja Rudancic
Assistant Professor at Libertas International University, Trg J.F.Kennedya 6b, Croatia
arudancic@hotmail.com; arudancic@libertas.hr

Sandra Sokcevic
Associate Professor at Libertas International University, Trg J.F.Kennedya 6b, Croatia
sokcevic@net.hr; ssokcevic@libertas.hr

Simo Maric
Libertas International University, Trg J.F.Kennedya 6b, Croatia
simo.maric98@gmail.com

ABSTRACT
The paper focuses on surveying employee satisfaction with workplace conditions. Given the
importance of employee retention, achieving a high level of satisfaction is necessary for
companies in order to have highly productive and satisfied workers, who can consequently
contribute even more to the improvement of business operations. Employees’ work satisfaction
is a crucial determinant in the performance of work tasks since it directly affects the
productivity of employees and the quality of work processes. The authors conducted empirical
research on the business model of a company involving its employees. The following hypothesis
was set and tested: “The work environment and relations in a company are an important factor
of employee satisfaction.” Methods of descriptive and inferential statistics are used in the
presentation of research results. The general conclusion of the research is that work
environment has an important impact on increasing the level of workplace satisfaction, which
directly affects the increase in employee productivity.
Keywords: motivation theories, human resources, work environment, job satisfaction

1. INTRODUCTION
Job satisfaction is extremely important, both for the benefit of each individual and for
companies, given that satisfied employees contribute more to improving company performance.
Therefore, companies must continuously work on monitoring the level of satisfaction of their
employees and try to raise their level of satisfaction. To gain insight into key determinants of
job satisfaction, the paper will further analyze the way attitudes are formed in people and certain
theories that define employee motivation, as well as the impact of job satisfaction on
productivity and work performance of employees.

1.1. The process of forming individuals’ attitudes

The starting premise in the process forming people’s attitudes and preferences is that each
human being is somewhat different, i.e., has different motivators and demotivators that, to
various extent, influence the perception of certain phenomena and events, and, consequently,
the formation of attitudes about these phenomena and events. Therefore, it can be concluded
that it is not possible to define universal factors that influence the formation of positive or
negative views; however, it is possible to identify key aspects that affect the formation of
individuals’ attitudes. Attitudes are formed by processing information that an individual
receives from his/her environment. These information may be manifested through direct
experience of an individual or dissemination through the media or other individuals in his/her
environment.

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It can therefore be concluded that individuals form their views based on direct and indirect
information they receive (Zyga, 2008). It should also be noted that attitudes are usually formed
over a certain period, which means that it is necessary to continuously encourage or discourage
certain beliefs, to say that an individual has formed an attitude on something. Also, some
individuals can form very firm attitudes, while others are more susceptible to changing their
attitudes (Psychology, 2020).

Figure 1: The Process of Forming Individuals’ Attitudes

Source: Authors’ processing according to Cai, et al. (2016). Skinner operant conditioning
model and robot bionic self-learning control, Technical Gazette, 23 (1): 68 and Psychology
(2020), Attitude Formation, available at http://psychology.iresearchnet.com/social-
psychology/attitudes/attitude-formation/, accessed: 24 January 2021

By reviewing the key elements influencing the processing of stimuli from the environment and
the formation of attitudes, it can be concluded that the formation of individuals’ attitudes is a
complex psychological process that is not only influenced by one, but by many different factors
and stimuli, and that formation of attitudes does not only depend on the actions of the individual,
but also on the activities of the environment in which the individual is situated.

2. EMPLOYEE MOTIVATION THEORIES

To gain a better understanding of the formation of attitudes in a work environment, some
theories that explain the formation of attitudes and the relationship between employees’
attitudes and motivation will be considered. Maslow's Theory of the Hierarchy of Needs is one
of the most famous behaviorist theories, considering its simplicity and applicability in practical
life. The basic assumption of Maslow's theory is that an individual is constantly motivated
through efforts to reach the next level of the pyramid, i.e. to satisfy the needs that are above the
needs that are currently met. Therefore, it can be concluded that human beings try to meet their
needs according to their necessity, before moving to meet their needs at the next level only after
they had met a lower level of needs (Zagreb Psychological Association, 2018). Although many
aspects of business life, such as salaries and promotions, can be linked to elementary needs to
provide food and accommodation, it should be noted that compensation is usually not a variable
of existential needs, but of an increase in purchasing power and the living standard. Herzberg's
Motivation Theory or Two Factor Theory, unlike Maslow's theory, which focuses on a general
description of motivation and classification of human needs, is focused on motivation in work
environment, i.e. factors influencing employee motivation (Expert Program Management,
2020).

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Figure 2: The Matrix of Combinations of Hygiene and Motivation Factors

Source: Authors’ processing according to Value-Based Management (2019), Summary of

Herzberg's Motivation and Hygiene Factors, available at
https://www.valuebasedmanagement.net/methods_herzberg_two_factor_theory.html,
accessed: 21 January 2021

By reviewing the matrix of combinations of hygiene and motivation factors, it can be concluded
that it is no longer sufficient for companies to focus on fulfilling only one category, but rather
to work on simultaneous fulfillment of both categories, to maximize productivity and employee
satisfaction. Furthermore, the X and Y theory is based on the approach of managers motivating
employees depending on the management’s perception of the employee. McGregor (Kopelman,
2013:875) states that managers can advocate two contradicting views. Namely, the X theory
focuses on the development of a work environment in which employees are constantly
monitored, and it is considered that they will not be able to do their job well if the management
does not daily control the work of every employee. Contrary to the X theory, it is evident in the
Y theory that the approach to employees is completely opposite, i.e. that employees are
considered highly motivated and capable, which means that the management controls their
work to a lesser extent. It should be noted that neither of these two theories functions as an ideal
model in practice because people cannot be parameterized based on several fixed assumptions
(people have different character traits, skills, and abilities, and change each day). Therefore,
taking firm stances within the X and Y theory is not the best solution in the contemporary
business world; employees should be approached individually.

2.1. The impact of job satisfaction on productivity and work performance

To investigate the impact of job satisfaction on productivity and business performance, it is first
important to understand the very concept of job satisfaction. According to Mallick (2020), in
the simplest of terms, job satisfaction can be defined as the level of satisfaction employees feel
as a result of their work. Therefore, job satisfaction is directly related to various aspects of work
performed by employees. Furthermore, although satisfaction is often not expressed in absolute
terms, Supriyanto and Darma (2013:70) state that employees can be satisfied or dissatisfied
with the work they perform, and that satisfaction level is directly correlated with their work
performance, i.e. the quality of their work.

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Regarding the relationship between job satisfaction and productivity and work performance, it
should be pointed out that companies must have a clearly defined metrics by which they
measure productivity, as well as the parameters by which performance is measured and
assessed. It is also necessary to parameterise and monitor employee satisfaction to establish the
correlation between changes in these factors. The impact of increasing employee satisfaction
on work efficiency has also been empirically proven. A survey conducted in 2016 on a sample
of 5806 employees of large and medium-sized enterprises in the Republic of Croatia showed
that there is a strong correlation between high level of motivation and productivity of employees
(Bakotić, 2016:121).

2.2. The importance of employees’ workplace conditions

Workplace conditions relate to the organisation of work, work activities, training and education
of employees, and workplace safety. When it comes to working conditions, they are in most
cases clearly defined by the contract of employment between the employer and the employee,
and as a rule, cannot be changed without the consent of both parties. Although minimum
technical requirements in the workplace, such as the scope of work, responsibilities in the
workplace, workplace temperature, and safety requirements are prescribed by national
regulatory authorities, merely meeting the minimum technical requirements is not enough to
motivate employees; it is necessary to provide employees with better conditions, to increase
their satisfaction at work and thus their level of productivity (EurWork, 2011). Petersen (2018)
states work conditions may have a significant impact on the morale and productivity of
employees. Furthermore, high-quality working conditions promote the well-being of
employees, reducing the chances of workplace injuries, as well as financial obligations arising
therefrom, and the need for rest. Company owners who invest in workplace improvements and
nurture a positive work culture are often rewarded with better employee performance and higher
profit. Therefore, it can be concluded that work conditions are really important for achieving
an adequate level of employee satisfaction and productivity. However, it is important to note
that the development of work conditions requires continuous investment, which means that
work conditions must improve over time to meet the wishes and needs of employees. The
importance of work conditions and business satisfaction was confirmed empirically, in a survey
conducted in 2013 on a sample of 60 employees in a Croatian shipyard (Bakotić and Babić,
2013). Results of the conducted research have shown that employees working in a more
comfortable work environment (administrative activities) are more satisfied than employees
working in a production plant, which is why it can be concluded that workplace conditions have
a direct impact on job satisfaction.

3. METHODOLOGY
The research in this paper was conducted using the methodological tool of a questionnaire in
the period 20 September 2020 to 20 October 2020.The survey was carried out on a sample of a
business organisation in different activity departments. Participation in the survey was
completely anonymous and respondents' turnout was 70%. The questionnaire included 44
questions in ten key categories such as engagement and commitment to work, work
environment, managers’ efficiency, accountability and business performance management,
cooperation, company management, business organization, clarity of business objectives and
directions, speed of change, integrity, salaries/benefits. Due to the above-mentioned topic of
the paper, the focus in the presented research results will be on the criterion of the employees’
work environment set in the criterion ‘company business organization’. The company business
organization criterion had set research variables such as employees' work activities, training
and education of employees, and workplace safety.

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Within the set variables, the 5-point Likert scale was used to obtain a response, where for each
selection criterion I disagree - I agree the respondents could circle one answer on the scale from
1 to 5. Scores 1-5 are expressed as follows:
• 1 - Strongly Disagree
• 2 - Disagree
• 3 - Neutral
• 4 - Agree
• 5 - Strongly agree.

3.1. Research results and discussion

The respondents were posed 7 parametric questions related to sex, work experience, and
workplace in order to gain a better understanding of the structure of the sample analyzed
through the questionnaire. An overview of the respondents' response structure shows that
significantly more men than women work in the selected business organisation. It was noted
that the majority of respondents are in the 30-50 age group, while employees under 30 years of
age are relatively underrepresented in the structure of respondents (with 12% share), which
means that the company employs more experienced employees and that employees usually stay
in the workplace for a long time. Furthermore, in terms of education, it was clear that the
categories of secondary and tertiary education were predominantly represented, while higher
education was significantly less represented. Also, the vast majority of employees (80%) are
employed for an indefinite period. In the criterion of the questionnaire relating to engagement
and commitment to work (the set variables: “I am going to work satisfied and I am coming back
from work satisfied.”, “I would recommend working for my company-”, “I would continue to
work in the current company.”, “I am a proud employee of this company.”), the following
responses of the respondents were received.

Graph 1: The structure of respondents' responses regarding engagement and commitment to

work

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

0% 5% 10% 15% 20% 25% 30% 35% 40%

Strongly Agree Agree Neutral Disagree Strongly Disagree

I am a proud employee of this company 16% 18% 8% 36% 22%
I would continue to work in the current company 24% 8% 26% 8% 34%
I would recommend working for my company 14% 18% 28% 12% 28%
I am going to work satisfied and I am coming back
14% 22% 18% 30% 16%
from work satisfied

Source: Authors' processing according to filled-in questionnaires

By reviewing the respondents' replies, it can be observed that most of them agree or strongly
agree with the statement that they are proud of their employment in the company. Furthermore,
most employees strongly agree with the statement that they would stay employed in the current

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company if they were offered a similar job. It is interesting to note that there is a certain gap
between the first two and the last two statements in this category. As part of the statement of
the willingness to make a recommendation, the most frequent categories of answers are
“Strongly Agree” and “Neutral”, which means that the employee's pride in working in the
company is not fully correlated with the willingness to make a recommendation. Finally, in the
structure of respondents' responses to the variable “I am a proud employee of this company.”,
it can be concluded that most employees are mostly or fully satisfied, but the level of
satisfaction is lower than the level of satisfaction regarding pride in working for the company.
The following responses were obtained in the questionnaire in relation to the question on the
opinion about company management.

Graph 2: The structure of respondents' responses regarding company management

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

0% 5% 10% 15% 20% 25% 30% 35%

Strongly Agree Agree Neutral Disagree Strongly Disagree

I use all of my knowledge and skills 30% 16% 22% 14% 18%
Education programs prepare me well for my job 20% 12% 14% 22% 32%
There are enough opportunities for participation
18% 14% 22% 26% 20%
in education programs
I believe that there is an opportunity for my
personal development and growth in the 26% 16% 10% 26% 22%
company
I have a clearly set career development path in
16% 22% 18% 18% 26%
the company

Source: Authors' processing according to filled-in questionnaires

The structure of respondents' responses made it clear that the level of satisfaction with company
management is relatively high. As for the possibility of using knowledge and skills in the
workplace, it is evident that most respondents disagree with the statement (30%), based on
which it is concluded that the employees’ potential has not been sufficiently used. Next, in
relation to the adequacy of education programs for doing their job, most respondents answered
that they strongly agree with this statement (30%), while few employees stated they disagreed
with the statement. Regarding the existence of an adequate number of opportunities for
participation in the company’s education programs, most respondents stated they agreed with
the statement (26%), while few employees (like in the previous statement) stated they disagreed
with the statement (16%). Finally, regarding the clear path to career development in the
company, most employees stated they strongly agreed with the statement (26%), while few
employees, or 16%, stated they strongly disagreed with the statement. The question about the
adequacy of the company business organization and the structure of respondents' responses
show that most employees are relatively satisfied with the company’s business organization
(most of the respondents agree or strongly agree with the statements in this research criterion).
In relation to access to the necessary information, most respondents stated that they strongly
agreed with this statement (22%), while few respondents stated they strongly disagreed (10%).
As for the possibility of making changes, most respondents stated they strongly agreed with the
statement (30%), but it is interesting to note that the same number of respondents claimed to be

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neutral towards this statement. Regarding the issue of adequacy of employees in the
departments in which they work, most respondents stated they agreed with that statement
(28%), while few respondents stated they strongly disagreed. (14%). In terms of workplace
safety, most respondents strongly agree with this statement (30%), while few respondents
strongly disagreed with this statement (10%).

Graph 3: The structure of respondents' responses regarding the opinion on the adequacy of
company business organization

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

0% 5% 10% 15% 20% 25% 30% 35%

Strongly Agree Agree Neutral Disagree Strongly Disagree

I have access to the necessary resources for my
24% 20% 24% 18% 14%
job.
I can make changes 25% 16% 25% 12% 22%
My department has adequate employees for
24% 26% 18% 18% 14%
work performance
In my department, decisions are made on time 18% 12% 28% 20% 22%
I feel safe from workplace-related accidents or
30% 26% 16% 18% 10%
injuries
I am satisfied with the work environment 18% 22% 22% 16% 22%
The work schedule is communicated on time 16% 26% 12% 26% 20%

Source: Authors' processing according to filled-in questionnaires

Consequently, it can be concluded that most positive responses (“agree” or “strongly agree”
with these statements) were recorded in the above mentioned observed criteria, which indicates
a relatively high level of employees’ work satisfaction in the selected business entity.

4. CONCLUSION
Based on the research carried out in this paper, in connection with the examined criterion of the
“the impact of work environment on employee motivation”, using variables such as engagement
and commitment to work, opinion on company management, and adequacy of business
organization, the following conclusions can be drawn:
a) In terms of engagement and commitment to work, the best results are recorded in the aspect
of staying in the current company, even in the case of receiving an adequate offer from
another employer. This will certainly keep the company's best employees in the company
for a longer period.
b) In terms of company management, the best results are recorded in the aspect of clear career
development path in the company. This means that company management transparently
directs employees' careers in accordance with their knowledge, skills, and aspirations.
c) In terms of company business organization, the best results are recorded in the aspect of the
feeling of safety from work-related accidents or injuries. This means that the company has
been working on maintaining an adequate level of safety, especially taking into account the
relatively high risk of the occurrence of an adverse event in the activity it is operating in.

In general, it can be concluded that relatively favorable results were recorded in the structure
of respondents' responses to the questions and variables.

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This confirms the tested hypothesis set up in this paper. Limitations resulting from this research
are primarily the intentionally selected business entity, i.e. the size of the sample and the short
period of the conducted research. Given these limitations, more detailed and comprehensive
research are recommended on a larger representative sample of all business entities operating
in the Republic of Croatia over a longer period.

LITERATURE:
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