Running Head: MOTIVATION

THE IMPACT OF EMPLOYEES MOTIVATION ON PERFORMANCE: A CASE

OF THE BANKING SECTOR IN UK.

Student’s Name: Olisa Chukwuka

Student number: A0162940

Postgraduate business research method

Teeside University, Middlesbrough

Business School

February 2021
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Table of Contents
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The Challenges the Hospitality Industry is facing due to Covid-19

CHAPTER I: INTRODUCTION

Background

Motivation at work is the key to success in the professional environment, both

individually and for the company. This is because it is directly related to satisfaction and

productivity, which affects the business in a holistic way. However, finding the fuel to stay

motivated on a day-to-day basis can be a challenge that employees are often unable to overcome

alone. Therefore, it is up to the company, represented by the HR team, to create actions that

promote the maintenance of motivation at work.

Motivation is, quite objectively, the set of individual and contextual factors that

determine the taking of a certain action. In other words, it is what moves us to perform a certain

task. Motivation is something inherent to the human being, after all, for us to perform any

minimal action in our daily lives, we need something that moves us to perform such action.

Overall, the dynamic is simple: if we feel hungry, we are motivated to eat, for example.

However, when it comes to more abstract issues—such as motivation at work—that go beyond

our physiological needs, finding these motivating factors is less instinctive and far more

challenging.

Banking work evidenced one of the most dramatic transformations with the technological

advance that occurred more specifically from 1995 onwards. The analysis of banking work in Brazil,

carried out by several authors (JINKINGS, 1995, GRISCI, 2000), points to a disqualification of the worker

due to technological development and changes in management methods. The authors show that the

domain of knowledge of the profession, existing before the 1930s, was degraded with the beginning of
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mechanization and intensifying with the introduction of computers, this process being closely linked to

the economic and economic configuration of the period.

Since the 1964 banking reform, the volume of services provided by banks has grown intensely,

due to economic growth and the diversification of services provided (MERLO, 2002). Banks started to

receive taxes and social security contributions, carry out collection operations, sell insurance, manage

different types of investments and offer credit lines, among other services.

The banking profession has long reflected the idea of repetitive activities and excessive

workload, expenditure of massive effort and available time. Despite the changes that have

occurred over time, with the new economic system and technological advances, bank workers

still have high rates of occupational diseases. In the 1980s, the banking sector was dependent on

the profitability of financial securities, which, in addition to having high operating costs, were not

always met.

Rationale

Work performance is the way that a worker develops in his workplace, emphasizing the

performance of the worker reviewed by factors such as: leadership ability, time management,

organizational skills and the productive level observed in each worker individually. On the other

hand, work motivation is the way to encourage the behavior of workers, maintain their

performance and direct it subjectively so that those involved are energized, directed and

sustained towards the achievement of the goal.

In this way, the present research determines the development opportunities that the

financial institution has for its collaborators, therefore, the research work aimed to determine

how work motivation impacts on the performance of the employees of a financial entity in UK.

Therefore, the research presents proposals that try to improve the policies of work motivation in
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the banking sector, in order to review and update the indicators of work performance. This could

be reflected with the increase in the profits of the financial institution, increase in productivity

and efficiency in the financial institution.

Likewise, the research provides concepts, theories and research regarding the variables

work performance and motivation, it can also be used as sources of bibliographic information for

the following investigations that seek to determine how work motivation improves the

performance of workers in an organization. On obtaining the results, a quantitative descriptive

correlational design has been used because it seeks to determine the degree of intensity between

the two variables: work motivation and work performance of the same sample.

From the company's point of view, unmotivated employees are synonymous not only

with low productivity, but also with a hostile work environment. This is because the lack of

motivation to perform the tasks directly affects professional self-esteem, who feel less valuable

to the company and, consequently, have their posture in their daily lives changed. Unmotivated

employees tend to procrastinate their obligations and perform their tasks with less attention,

making them more likely to make mistakes. Lack of motivation also affects your performance

and overall satisfaction with the company. In other words: motivation is directly related to

productivity. For this reason, maintaining the motivation of the entire team is important not only

for each member of the team, but also for the health of the business as a whole.

Research Problem

In organizations, the factor that adds added value to the service is human capital; in this

sense, various investigations have agreed that work motivation directly influences the

productivity and efficiency of employees. workers, in addition the new organizational forms
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place performance as a tool to promote the growth of human capital (Arce, 2017). According to

Astete, (2014) it is estimated that 4 out of 5 companies allocate resources in order to motivate

their collaborators, this figure reveals the importance that it has reached for organizations, even

the investment amounts earmarked for this purpose are very low and few companies have

decided to apply these policies in a sustained manner.

Likewise, the author points out that at the international level it is estimated that

organizations invest between 4% and 5% of the total cost of labor. British companies have a long

way to go to improve their competitiveness and productivity, considering that the retail, mass

consumption and banking sectors are the ones that spend the most money on providing training

and technical assistance to their employees.

The reasons that led to approach the research is that the subject of work motivation

constitutes an important tool for the achievement of institutional objectives and also for the

development of the collaborator. The importance of researching the work motivation of

employees in a financial institution is due to the fact that it reflects the needs that people have to

feel good in their workplace, to know that the functions they perform are being recognized by the

head of the area. The importance of human capital within the banking sector is relevant because

it allows, depending on the needs and interests, to plan and implement adequate work motivation

programs that manage to stimulate the workforce in order to obtain a favorable performance in

each employee within the company. organization.

This research is important because it allows to provide motivation and job performance

that serves as support to employees in the UK. On the other hand, this research is feasible

because it had the support and collaboration. Likewise, national research has been found on the
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subject, which has explained the importance of measuring productivity and efficiency indicators

in companies.

Research Question

Does motivation work as a driving factor in enhancing employee performance?

Aim and Objectives

The aim of this study is to investigate the impact of staff motivation on their

performance. Given this, the study will achieve the following objectives:

 To explore the motivational strategies and their impact on staff performance

especially in the banking sector.

 To investigate the motivational strategies of the banking sector in the UK and

their impact on staff performance.

 To develop guidelines improving the motivational strategies in banking sector for

enhanced employee performance.

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CHAPTER II: LITERATURE REVIEW

Theoretical Framework

In this section, the main references on work motivation, organizational performance and

previous studies are presented, which are necessary for the theoretical basis of this research.

Motivation

There is no consensus on the concept of motivation. Despite the importance of the theme,

several authors do not have a definition for it, verifying several lines/attempts at

conceptualization. Robbins (2002) prefers to explain, initially, what motivation is not: according

to him, motivation is not a personal trait. Many believe that there are people who have

motivation and others who do not. This idea can harm many employees, making many

executives, as the author explains, label unmotivated employees, lazy, for example.

To avoid this type of error, it is necessary to better understand the subject. The word

'motivation' has its etymological origin in the Latin 'mo vere', meaning to move, that is, it is

related to movement. Therefore, it is clearer to understand the definition of Robbins (2002) as

being a process responsible for the intensity, direction and persistence of a person's efforts to

reach a certain goal, that is, it gives an idea of a set of factors that they propel an individual

towards a certain goal.

Chiavenato (2005) also uses the words intensity, direction and persistence in its concept.

It explains each of these items, namely: (a) Direction: is related to the focus of the objective.

Efforts must be directed towards achieving an objective, which may be an organizational or

individual objective; (b) Intensity: is the effort used by a person in the defined direction; (c)
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Persistence: it is the time in which the person is able to maintain the effort. The more motivation,

the more tendency to persist until the goal is reached.

Furthermore, Chiavento (2005) clarifies that motivation results from the person's

interaction with the situation that involves them, which may vary from person to person, or even

in the same person, at different times. The author also speaks of three underlying elements of

motivation theories. These elements, according to him, involve motivation, being interacting and

interdependent, namely:

Needs – They arise from an internal need, whether physiological, such as hunger and

thirst, for example, or psychological, such as insecurity, loneliness, among others. the organism

is characterized by a state of equilibrium that, when disrupted, a need arises, which is often the

case. When this need is not satisfied, a tension arises, stimulating the individual, through an

impulse, to seek to reduce this need.

Impulses – It is through them that needs are alleviated. The impulse provokes a behavior

seeking to satisfy the needs in order to reduce tension. The greater the tension, the greater the

effort. To achieve an incentive, physiological impulses arise. For example, a need for food or

water can be transformed into hunger or thirst, just as the need to have friends can drive

membership.

Incentives – Located at the end of the motivational cycle, they can alleviate a need or

reduce an impulse. Upon reaching an incentive, the individual's state of equilibrium is restored.

They also discuss the theme Godim and Silva (2004). In their attempt at

conceptualization, they clarify that motivation, in addition to being related to 'everything that can

make you move', is also associated with other concepts, such as satisfaction, desire, energy,

intrinsic and extrinsic rewards, performance, involvement, work adjustment, reinforcement,

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direction, need, job design, beliefs, values, goals, expectations, creativity, culture, affection and

teamwork. The authors state that the concepts that stand out the most, among those mentioned

above, are those of satisfaction, involvement and performance. in spite of them are related to the

theme of motivation, each one has its specificity, and job satisfaction is related to the level of

contentment in the relationships with the work team, with the system of rewards and

remuneration and work performed. Involvement, according to him, is related to the level of

identification and affinity with the work performed. Organizational performance, on the other

hand, refers to affects related to the organization, work or career.

Bergamini (1986, cited by Bueno, 2002), explains that when the origin is internal,

motivation exists, but when it is external, there is only a movement towards satisfaction. This is

due to the fact that, when a person wants something because of a reward or to avoid a

punishment, the factor influencing the movement is external, as that person would not pursue this

objective if it were not for the punishment or reward. When people want something for an inner

need, according to Bueno (2002) , they have their own will to reach the goal, then there is

motivation.

For this author, when the proposed objective is reached, there is a feeling of esteem and

self-fulfillment, which predisposes the individual to seek bolder goals. The next topic deals with

a brief background on the study of motivation at work that serves as a guide to the context in

which the aforementioned authors arrived at such definitions of motivation.

History of Motivation

Although motivation is a determining factor for individuals to go towards achieving

goals, research on this phenomenon in the organizational environment is recent. According to

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Steers and Porter (1975), before the Industrial Revolution, motivation it was worked through the

form of physical, financial or social punishment. With the development of industries, according

to Fleury et al (2002), the number of craft organizations was reduced, being replaced by large-

scale industries, with greater complexity and new forms of professional relations, as the

standards required for the efficiency and return on investment. In 1911, based on the Taylorist

study, punishment was replaced by the belief that money would be the main motivating factor for

workers, making people choose jobs by salary, and not by type of work.

However, all the advances in the industrial sector gave rise to a new management

philosophy, called Scientific Administration. Neves (1998) explains that Taylor and his

followers realized that only the wage incentive and work method would be insufficient in the

search for efficiency in productivity. They concluded that working conditions would be decisive

in increasing efficiency, making comfort and the improvement of the physical environment

objects of appreciation for the worker.

According to Tavares (2004), Elton Mayo further verified the importance of considering

the individual as a whole, assuming that the best way to motivate employees would be through

their social behavior. From there, managers and supervisors began to try to make their employees

feel useful and important at work. Authority should, according to Neves (1998), take into

account social skills to ensure workers' cooperation, and not only technical skills, as believed in

Scientific Administration.

Thus, it can be seen, as explained above, that there are several factors that influence the

motivation of employees, and not just punishment, as was believed before the Industrial

Revolution, or a set of rules for workers to follow or only remuneration, physical environment,
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employee appreciation or social relations. From this perspective, a new approach to human

motivation emerged, where, according to Fleury and cols (2002), fit some of the most recent

theories of motivation. It is called the human resources model, which deals with the various

factors that are interrelated in the motivational process, such as money, social aspects, the work

itself and the possibilities for growth. This model is also based on the fact that individuals can

have different motivational factors. The author adds that these individual differences make

different workers contribute differently to the organization, in addition to seeking satisfaction in

different ways.

To better understand the new approach to human motivation mentioned above, some of

the main theories of motivation will be explained below. The first are the so-called classical

theories, as they serve as a basis for the so-called contemporary theories, which will be dealt with

in the sequel. Classical theories, despite not having withstood a more detailed analysis, are still

widely used to explain employee motivation. Contemporary theories, on the other hand, have a

reasonable degree of validity.

Motivation for Work

Motivation for work is not synonymous with worker behavior. Motivation is a factor that

determines an individual's behavior. What determines workers' motivation are their needs,

expectations and desires (Maslow, 1943). The biggest obstacle in the organization s focuses on

understanding the behavior of workers (Alberton & Beuren, 2003).

Motivation at work has generated interest in academia and business, considering that

factors related to workers' motivation can interfere with the behavior of individuals in business

situations. A stimulating and productive work climate favors the organization, as well as the
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well-being of its members. In this way, motivating workers allows them to increase their

satisfaction, performance, and productivity (Pérez-Ramos, 1990).

According to Tamayo and Paschoal (2003), changes in motivational strategies used by

organizations are being carried out in order to value and create favorable conditions for

maximizing the performance and satisfaction of workers. Competitiveness in the market and the

complexity of working in companies has reported an emphasis on worker motivation, in order to

leverage their performance and, consequently, the company's performance as well.

The reasons that lead individuals to achieve their goals, which are intrinsic to the

personality, should be verified in order to understand motivational behavior, since individuals

can act in the same way, but for different reasons (Bergamini, 2002). Motivation, according to

Ferreira (2006), stems from psychological factors, which are conscious or unconscious to human

beings, of a physiological, intellectual or affective order, which determine the individual's

behavior. The effort of an individual to achieve a given goal conceptualizes its motivation

(Robbins, 2002).

Worker motivation has been analyzed according to content theories and process

theories. According to Pérez-Ramos (1990), content theories determine human needs in order to

explain the motivation of individuals. A motivated and satisfied employee is a productive

employee. Process theories, on the other hand, verify motivation from the perspective of goals,

personal objectives and individuals' conscious mechanisms for decision making. Motivational

theories aim to identify sources of worker pleasure, which can be found intrinsically in the

worker himself, extrinsically in the work environment and/or in the interaction between them

(Tamayo & Paschoal, 2003).

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Motivation at work occurs due to internal factors that drive the worker's action and

external factors that encourage his/her action (Locke & Latham, 2004). Intrinsic motivation,

which arises from the worker's internal factors, is related to the individual's spontaneous

satisfaction in performing a certain activity. Extrinsic motivation, on the other hand, resulting

from external factors, is not related to the satisfaction of carrying out the activity, but rather to

the consequences or tangible or verbal rewards that originate from the activity performed (Gagné

& Deci, 2005).

In addition to motivation by intrinsic and extrinsic factors, there is also internalized

motivation. The internalized is the motivation resulting from the worker's willingness to perform

a certain task, due to the appreciation of their personal values, caused by the extrinsic factors of

the activity. The internalized motivation differs from the intrinsic one, since in the intrinsic one

the worker is motivated to perform the task and in the internalized one, the worker is willing to

carry out his activities, by meeting his personal values, made possible by the task (Moraes,

2005).

According to Moynihan and Pandey, (2007) and Bedran Júnior and Oliveira (2009),

intrinsic, extrinsic or internalized motivation is related to the beliefs that human beings have,

what they attribute as important in their lives, as well as their social and cultural values.

Intrinsic motivation refers to the individual having recognition at work, the possibility of

personal development, opportunities for promotion, greater responsibilities, among

others. Extrinsic motivation, on the other hand, is generated in individuals due to remuneration,

organizational security, interpersonal relationships, that is, external factors (Herzberg, 1997).

Westover, Westover and Westover (2010) contribute by saying that the intrinsic factors

of the individual refer to the feeling of satisfaction in carrying out their professional activities,
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feeling proud in carrying out their activities, while the extrinsic factors relate to power, status

and position that an individual possesses and can motivate them.

In addition to these two motivational factors, as highlighted, there is the internalized one,

which differs in that it mentions the meeting of the individual's personal values with the

organization in which he works (Godoi, 2002). In other words, individuals with motivation

internalize even when they are not assisted by their bosses, they carry out activities in a

motivated way, due to the meeting of their values with the organization (Gagné & Deci, 2005).

Knowledge of the factors that motivate workers is an opportunity for organizations to

intervene in the personnel management process, with the aim of making workers' productivity

compatible with the company's scope. Motivated workers tend to be more committed to the

organization (Bedran Júnior & Oliveira, 2009).

The human being works in an organization to satisfy his personal needs first and

secondarily to increase the company's profit. Thus, if the individual does not find ways to meet

their expectations at work, they will not feel motivated, and will report in a relationship of

exploitation rather than exchange. Motivation at work is directly related to individual and

organizational productivity. There must be interaction between the interests of the organization

and the interests of the employee, in order to solve motivation problems at work (Tamayo &

Paschoal, 2003).

The success of companies depends on their workforce, since in the competitive business

market, the companies' differential is the attraction and retention of talented workers, who can

leverage the organization's performance. Therefore, organizational, and human resource

managers must define actions so that they keep qualified, loyal, motivated and committed
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workers in the company with the organization's success (Alniaçik et al., 2012), so that they can

maximize their performance.

Relationship between Types of Motivation and Organizational Performance

This section presents the main previous studies, which describe the relationship between

types of motivation and organizational performance in different contexts, as well as personal

characteristics that impacted this relationship.

The study by Moraes (2005) investigated the possibilities of articulation between the

motivational phenomenon and the dimensions of performance in an organizational environment

of Brazilian higher education. The results showed that extrinsic motivation is related to

instrumental performance and that intrinsic motivation is related to affective performance. In this

case, when workers are motivated by the benefits of carrying out their activity, they tend to be

committed to the organization based mainly on the aversion to the costs arising from the

exchange of work. When workers present motivation caused by the satisfaction of carrying out

their activities, they present an affective performance, which is related to the worker's

involvement with the company.

In an analysis of a public organization in England, Vandenabeele (2009) analyzed the

influence of the organization's culture on worker performance. They observed that satisfaction

and organizational performance act as mediators in the relationship between organizational

culture and individual performance of workers. In this way, human resource managers working

to improve workers' motivation and performance will also be able to influence the organization's

culture, which will favor their individual performance.

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Westover et al.  (2010) explored the impact that motivation and job satisfaction generate

on organizational performance, long-term company productivity, and performance. The sample

investigated by the authors consists of a social work organization in the western United

States. The results found showed that organizational performance is related to job satisfaction.

Focusing on workers from banking institutions in Greece, Trivellas (2011) analyzed the

relationship between motivation and work performance, mediated by organizational

performance. They showed that organizational performance acts as a mediator in the relationship

between motivation and performance. Thus, the worker's motivation can influence the increase

of his performance, as long as he is also compromised.

Alniaçik et al. (2012), when examining the relationships between motivation, affective

performance and job satisfaction, with a sample of workers from industrial, education, higher

education, services, financial, automotive and construction companies in Turkey, found that

motivation is related to if positively with the worker's performance and with the worker's

satisfaction. According to the authors, improving workers' motivational levels tends to influence

the increase in job satisfaction and their performance to the company.

When analyzing workers at a public hospital in Brazil, Grohmann et al. (2013)

investigated how work motivation interferes with workers' performance, satisfaction and

performance. They observed that motivation, performance and job satisfaction moderately

influence the worker's professional performance. Also, they observed that there is no direct

relationship between motivation and performance. Thus, in order to increase professional

performance, workers, in addition to being motivated, must be satisfied and committed to their

work.
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Bang et al. (2013) verified the mediation of job satisfaction in the relationship between

motivation and affective performance of workers in nonprofit organizations in the US. The

results showed that worker satisfaction partially mediates the effect of voluntary work motivation

on affective performance. It was suggested that the motivation of volunteer work partially

influences the level of organizational performance, and that workers who are motivated by their

personal values would be more satisfied with their volunteer experience, consequently impacting

greater performance to the organization.

In general, it is observed that several studies have been dedicated to investigating the

relationships between motivation, performance, job satisfaction and performance. In this sense,

the evidence found in this literature has suggested that motivation influences the levels of

organizational performance, determining the individual's performance at work.

However, it is not observed in these studies the analysis of the existing relationships

between the types of motivation and types of organizational performance, as well as the

influence of individual variables and work characteristics on such relationships, which indicates

that the effects of group diversity do not come being observed in some studies developed under

the theme, which stimulates this study.

Motivation at work is linked to the desire to keep that job, but more than that, it is the

feeling that drives all your actions in the work environment. In short, it is the desire to meet goals

and achieve good results, both for internal reasons and for external stimuli. It is a very important

component of organizational dynamics, but it is often rare in many companies. It directly

influences the behavior of the individual at work, being deeply related to the employees'

performance to work. So, the more motivated a professional is, the better he will perform his

functions and the higher his productivity will be.

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Main Theories

Theory of the Hierarchy of Needs

Abraham Maslow's Hierarchy of Needs Theory is one of the best-known theories of

motivation. Robbins (2002) clarifies that, according to this theory, each individual has a

hierarchy of five categories of needs:

(a) Physiological – related to primary physiological needs such as hunger, thirst,

shelter, sex and other bodily needs; (b) Security – related to the need for security and protection

from physical and emotional harm; (c) Social – related to affection, acceptance, friendship and

the feeling of belonging to a group; (d) Esteem – related to internal factors of esteem, such as

self-respect, achievement and autonomy, and external factors, such as status, recognition and

attention; (e) Self-realization – related to the intention to become and all that one is capable of

being, including growth, reaching one's own potential and self-development.

Maslow considers that a new need arises when an inferior one is satisfied, respecting two

basic principles of value or emergency character: (a) Dominance – if a basic need is not satisfied,

the others do not acquire strength to organize the behavior; (b) Emergence – when a need is

satisfied, a higher need arises towards the top of the hierarchy. In other words, whenever a need

is satisfied, the immediately superior need becomes dominant, making it move, according to the

individual, to the top of the hierarchy (Robbins, 2002). And, still, according to Chiavenato

(2005), when a low need is not satisfied, it becomes dominant, and the behavior starts to

predominate, until it is partially or completely satisfied.

Hierarchies are presented by Maslow in pyramid form. Robbins (2002) explains that,

according to this theory, to motivate someone, it is necessary to know at what level within the
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pyramid the person is and focus on this level of satisfaction and the level immediately above. It

should be noted that a need can never be completely satisfied, however, a substantially satisfied

need extinguishes the motivation. (Robbins, 2002). Despite the relevance of this theory, there is

no empirical proof of its assumptions, undermining its validity.

Theory X and Theory Y

Two other older theories of motivation are Theory X and Theory Y, both developed by

Douglas McGregor. According to Robbins (2002), these theories were built from the observation

of how executives treated their employees, reaching the conclusion that executives behaved

towards their employees, according to certain groupings of premises.

According to the author, in theory X, there are four negative assumptions of executives:

1-Employees, by nature, do not like to work and, whenever possible, will try to avoid

work.

2-Since they do not like to work, they need to be coerced, controlled or threatened with

punishment, in order to achieve their goals.

3-Employees avoid responsibility and seek formal guidance whenever possible.

4-Most workers place safety above all factors associated with work and show little

ambition.

The positive assumptions of the executives in MacGregor's Theory Y are still:

1-Employees may find work as natural as resting or having fun.

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2-People will demonstrate self-orientation and self-control if they are committed to the

goals.

3-People, on average, can learn to accept, or even seek, responsibility.

4-The ability to make innovative decisions can be in any person, not being the exclusive

privilege of those in higher hierarchical positions.

These theories are also not valid because they are not proven. However, Godim and Silva

(2004) clarify that Theory Y brought to light the recognition that the performance of men at work

is more managerial than motivational, since work can be a source of satisfaction or punishment,

depending on the context.

Two Factor Theory

Also known as Bifactorial Theory or Hygiene-Motivation Theory, this theory was

developed by psychologist Frederick Herzberg. According to Soto (2002), Herzerberg developed

this theory by studying the relationship between job satisfaction and productivity of 200

accountants and engineers. In this research, participants were asked to describe experiences at

work that produced pleasant and unpleasant sensations.

As a result, the theorist observed that job satisfaction and dissatisfaction were the product

of two factors, namely: Factors associated with pleasant sensations at work are called motivation

factors: warnings, responsibilities, recognition, results, advances and growth (Soto, 2002).

Factors associated with feelings of dissatisfaction are called the factors of hygiene. They

are working conditions, company policies, supervision, co-workers, salary, prestige and safety at

work. According to Mullins (2004), hygienic factors are related to the treatment of individuals in

the organization, and should be maintained to avoid worker dissatisfaction. However, this theory
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of satisfaction versus dissatisfaction at work, according to Spector (2006), has not been

supported by research. This is probably due to the fact that Herzberg's conclusions are related to

job satisfaction, enabling a bias of self-convenience of workers, who can attribute their reason

for dissatisfaction to external factors, and often, dissatisfaction at work it may have an intrinsic

origin. Or that is, workers can attribute their dissatisfaction to problems in the organization, and

their dissatisfaction can be linked to their relationship with the work they perform.

UK Banking Sector

The UK banking sector is dominated by a few very large banks, including the Lloyds Group,
Barclays, the Royal Bank of Scotland (RBS), and HSBC. In term of market shares for all categories of
business, the market is clearly oligopolistic. In response to the financial crisis, the UK banking sector
went through a process of consolidation. In January 2009 the Halifax Bank of Scotland (HBOS) merged
with Lloyds TBS to create the single biggested banking group, the Lloyds Group. By 2015 the market
share of Lloyds Group in terms of personal currrent accounts had risen to 27%.

As early as 2002 the Competition Commission (now replaced by the Competition and Markets
Authority – CMA) concluded that a number of the largest banks operated a complex monopoly in the
supply of services to small and medium sized enterprises (SMEs) which resulted in reduced competition
to the detriment of the customers. For example, customers were reluctant to switch banks because they
all offered very similar benefits. Following the financial crisis the banking industry increased its level of
concentration. The banking H-H Index rose from 1401 in 2007 to 1736 in 2010.

As with US and EU banks, UK banks are now subject to much tighter regulation. Regulators must
balance the need for financial stability and for ensuring that banks can pass any stress test they are
faced with, as well as ensure that financial markets remain competitive. In the UK, the Financial Conduct
Authority (FCA) is responsible for ensuring that financial markets work fairly. Banking has been subject
to several competition reviews over the last 10 years, with most concluding that the market is
excessively concentrated, with considerable barriers to entry. In 2014 the CMA launched the latest
investigation into the personal current account (PCA) customers and to small and medium-sized
enterprises (SMEs).

Impact of Motivation on Performance in Banking Sector

It is believed that there is a relationship between motivation and effort, in the sense that

motivation can improve performance, productivity and efficiency in the search for results. Fleury
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et al (2002) even say that motivation can serve to improve health at work and worker

satisfaction, which can also be considered relevant for performance.

2020 saw massive challenges for the UK financial services sector, including banking. The

new working environment that we had to adopt in March 2020, meant that bank staff had to

adapt almost overnight, including remote work and branch COVID-19 safety measures, as well

as disruption to outsourced service providers in both the UK and overseas. As we go through

2021, the detailed economic impacts of COVID-19 on businesses and individuals will become

clearer. There is still enormous uncertainty over the benefits to come from vaccines and

government economic measures. The details of the recovery process for loans made under

government-backed lending schemes have yet to work through. At the same time, the impacts of

Brexit and a new administration in the US have still to work through on trade and geopolitics. In

this first quarter of 2021 the enduring feature is the new uncertainty facing the banking sector.

The current circumstances have put strain on the financial sector, but banks have been

well-prepared to manage the situation and weather the economic shock. Post-2008 regulatory

reforms established robust capital and liquidity buffers to cushion the impact of shock events,

and regulators have taken steps to help protect those buffers as COVID-19-related disruption

continues into the long term. One of the biggest challenges for the UK banking sector is

balancing their losses, while continuing to provide loans, debt-moratoria, and intervention

schemes to support financial stability. Under IFRS 9, loans that look more likely to default will

trigger loss provisioning upfront, potentially reducing the ability to offer credit.

Godim and Silva (2004) clarify that the relationship between motivation and performance

occurs according to the various factors that serve as a source of mediation at work. Thus, to

better understand this relationship, it is necessary, first, to identify these factors. From the
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analysis of the interaction between motivation and performance and the identification of these

factors, it is possible to reach relevant levels of satisfaction, quality and productivity at work.

I.e., achieving organizational goals depends on satisfactory performance at the individual, group

and organizational levels.

Regarding the motivation theory proposed for the study in question, Expectation Theory,

Mullins (2004) highlights that the team manager must take into account the following factors to

improve the motivation and performance of their employees:

-Attempts to establish clear relationships and strong links between effort and

performance, and between performance and rewards.

- Review the adequacy of bonuses, prioritizing individual performance. High valence

results for the individual should be used as an incentive to improve performance.

-Ensure that subordinates have the necessary understanding, knowledge and skill to

achieve a high level of performance.

-Carefully evaluate variables such as business policies and organizational procedures, and

provide advantages that, although not direct motivational factors, can still be reflected in

performance.

-Minimize undesirable outcomes that can be perceived from a high level of performance,

for example, accidents, peer sanctions, or stricter target impositions. It also minimizes

undesirable outcomes that occur despite the high level of performance, such as a reduction in

bonus payments (Mullins, 2004, p. 185).

Still in relation to performance, Herzberg (1982) Maus ner Snyderman (1959) cited by

Borges and Alves-Filho (2001) consider that, from the perspective of Bifactorial Theory,
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working conditions and economic rewards, although they do not generate greater motivation in

the employees, help to improve performance.

Difference with organizational motivation

Different from work motivation, organizational motivation is much more related to a

business structure than to the employee itself. That's because it refers to the company's set of

responsibilities to keep employees' motivation high to generate good returns. This type of

motivation is very important in the work environment, as a unmotivated professional produces

less, really pays and even can lead his colleagues to be less productive as well, which can be

extremely harmful to the company.

Benefit that Motivation in Banking Sector

The more motivated the employee and the team are, the better the work will be

performed. But this is not the only benefit that motivation can bring to the work environment, the

benefits are diverse, such as:

Improves employees' self-esteem

One of the greatest benefits of motivation at work is the increase in self-esteem and

confidence of employees, which applies both in the professional and personal spheres.

Motivated, they start to see themselves positively and also to behave more proactively. This

makes them feel good about themselves and also transmits this energy to other employees, thus

improving the organizational climate. This improvement in self-esteem is reflected not only in
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the work environment, but also in the productivity of employees, who are able to produce more

on their own and even have more innovative practices.

Optimizes the use of time

This is one of the main points when talking about the benefits of motivation at work, as it

will make the most difference in the company's routine in general. That's because, when an

employee is motivated, he works faster and better. In this way, the company is able to save a lot

of resources and even accelerate its internal growth, as it will not waste time needlessly. Also,

with the optimization of time. the employee gains a better quality of life and there is also a

reduction in stress in the work environment.

The organizational motivation process is intended to make the goals of an organization

defined and achieved. In order to achieve this goal, it is essential that companies motivate their

employees through stimuli and incentives so that they are satisfied and consequently productive.

For basic needs to be met, the employee must be motivated both in their personal and

professional lives, that is, internal and external motivation. Both take the person to the same

place; the difference is the way they are stimulated.

Characteristics of Internal and External Motivations

Internal motivation – when the employee mobilizes to change his behavior in order to

achieve some goal. It is too difficult an attitude to take, it is individual and requires

determination and self-reliance to make your own choices. However, both in personal life and at

work, internal motivation helps a person to have self-control and set their own goals.
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External motivation – Part of the environment in which the employee is inserted.

Different from internal motivation, where the individual needs a meaning in life to feel

motivated, while externally he needs an environment that encourages motivation to face

challenges and achieve his goals.

The Impact of Motivation on Organizations

Over the years and the increase in competitiveness in the labor market in all areas, it has

become mandatory for organizations to discuss and implement processes that motivate their

employees. Organizations are made up of employees and they are the ones who act for the

company to operate generating results. This motivation can impact the organization and its

business in a very positive and assertive way. The creation of a healthy professional

environment, in which everyone has a role and works productively, is directly related to the way

the organization works and the motivation of the teams.

To satisfactorily build this climate of motivation and cooperation, there must be

transparency between leaders and the entire team. Everyone must be able to communicate and

discuss issues relevant to the company's development. In this way, employees are sure that their

opinions are evaluated and their professional needs are met. Attitudes like this lead to self-

confidence, an understanding of the relevance of each professional in the organization's

processes and increased productivity.

Another aspect that contributes significantly to employee motivation is the real

perspective of professional development. That's because, when a person feels he can take bigger

steps in his career, he is hardly accommodated. A career plan inhibits accommodation as it

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demonstrates to employees that there are still goals to be pursued. Thus, good professionals will

always work towards the best performance, obtaining results above expectations.

Keep Employees Motivated

Promote socializing activities: These activities will give the professionals the opportunity

to get to know each other on a more human level, it is also of great value for an organization.

That's because when people work with people they care about, the activity gains value that goes

beyond financial.

Respect and cordiality: it is important that there is respect and cordiality among everyone,

regardless of the position that the person holds in the company. Valuing personal relationships

within the company makes employees feel comfortable to carry out their tasks. To be valued by

the market, it is first important to be valued by your employees. Do like the big organizations,

pay attention to those little details that make all the difference. After all, your first customer is

your employee.

Identify strengths: Encourage your team to identify their strengths and discover their

abilities. This will make them feel recognized and motivated.

Value creativity: offer tools that motivate and encourage creativity. This attitude helps

create the process of belonging for the employee and the entire team, stimulates thinking,

validates the work developed, making them believe in themselves.

Encourage teamwork: Feeling that they are part of a group and that they are important to

the company will make each employee feel comfortable helping the colleague within the team's

purpose. Motivation will be a spontaneous routine within the company if he feels important.
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Rewards: Establish a reward system that encourages team motivation, allowing for a

pleasant and dynamic environment.

Establish Feedback: It is important to carry out a survey (survey) about employee

satisfaction and their suggestions. Find out if they are satisfied, if they suggest changes.

Healthy environment: The work climate directly reflects on the motivation of the

company's employees. To find out how the team is relating, it is important to do research and act

on the problem's focus, when there is. A good organizational climate benefits everyone,

employees and the company.

Factors Affecting the Organizational Motivation

Here are some of these causes that happen in most organizations:

Lack of support - Some employees feel unmotivated due to the lack of attention from

their superiors, and this occurs very often in many companies, because in many cases employees

need help and cannot find the people trained to help them and then it happens the lack of

motivation at work.

No growth expectation – The lack of results for the company occurs when it does not pay

attention to the employee's growth. The consequence of this is an unmotivated and

accommodated employee, without worrying about generating company results.

Low salaries – A fair salary is the minimum that a company can offer its employees so

that they feel valued in what they do and motivated. Keeping these payments up to date is also a

company obligation. Working and not getting paid is not very motivating. Of course, motivation

is not just for the money, but not having a remuneration compatible with the performance and
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qualification of the employee makes them lose motivation and work concerned with their

financial performances.

Lack of recognition – Without a doubt, recognition is one of the main factors that

contribute or not to the motivation of professionals. Employees who deservedly receive

recognition, both professionally and financially, work more satisfied and, consequently, produce

more results as well.

Accumulation of functions – Another factor that contributes to the demotivation of

professionals is the accumulation of functions and the “fair” remuneration for this. Many

employees, when starting a new job, may take, in addition to the compatible tasks they are

responsible for, other additional ones, either due to lack of people or because of the many

demands that need to be met, among other things, which cannot happen. Ideally, when hiring an

employee, make it clear what their activities will be and pay them accordingly. If you need to

demand other tasks, remember the “overtime”.

Off-hour’s work – Performing tasks outside working hours, in addition to being “wrong”

under the labor laws, can cause demotivation in professionals if not done correctly. Ideally, if

there is a need to carry out activities after work, pay the professional separately or add positive

extra hours to him.

Many people are motivated by the possibility of seeing their dreams come true. These

dreams are shaped in the most diverse ways. They can be in words or gestures, in the recognition

of a job well done, in a compliment, in the possibility of growth, in a demonstration of

understanding and affection, in the importance of the team, amongst others (Shah and Asad,

2018). From there arises the need to present some of the most popular motivational theories.
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To do so, this study will start from the assumptions of some authors such as Maslow and

McGregor, who dedicated themselves to discovering ways to motivate people. Thus, this article,

through a bibliographic search, aims to identify how motivation influences professional and

organisational performance nowadays, in which great efforts and persistence are required from

professionals and the organisation itself in order to achieve the desired results (Paais and

Pattiruhu, 2020). It then presents how motivation can influence organisational performance, thus

identifying individual needs that must be better addressed, allowing to seek productivity gains.

From then on, the influence of motivation on professional and organisational performance in the

UK’s banking sector nowadays is understood, aiming at greater developments and satisfactions,

both organisational and professional. To do this, it is necessary to first conceptualise motivation,

as will be discussed in this study.

CHAPTER III: METHODOLOGY

This study aims to investigate the impact of motivation on employee performance. The

methodology and procedures for reaching the stated objectives of this study are described in this

chapter. It examines in full philosophy and design of research, populations, and sampling,

research tools, research ethical methods and tools for data analysis. Before generating data based

on characteristics, purposes and goals of research, the option of methods used for conducting

research is normally decided. There will be a need to explain and evaluate the philosophical

process underlying it, which will include epistemological and ontological considerations. This

assessment should demonstrate the importance or appropriateness of the particular stance for this

research and how it informs the character and quality of the findings.
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Research philosophy

The use of the philosophy of interpretivism is appropriate for this study as it emphasizes

the importance of understanding each viewpoint in terms of situation and context (Birim, 2016).

Interpretivism research philosophy indicates that the investigator can interpret and analyse

obtained data in a way that qualitatively as opposed to statistically reaches conclusions. On the

other hand, a positivist research philosophy cannot respond to the problems highlighted by this

study since the positivist does not emphasize qualitative analysis necessary to explore the

innovative application of social media to supply chain management in Great Britain.

Research paradigms

There have been discussions amongst researchers of administration over epistemological

paragigms. It is usual to find scholars who defend what they think is the best technique to

produce knowledge in a given field of study in heated arguments. The essential presumption of

the interpretive paradigm is that it is only through a social construction, such as language,

consciousness, or shared meanings, that access to a reality is provided or socially built. From an

interpretative point of view, emphasis is placed on the perceptions of the subjects and the

significance of these phenomena for these persons, i.e., the meaning they are given. Dependent

and independent variables are not predefined by interpretive research, with a focus on the

intricacy of human significance formation as things arise. This paradigmatic method to inquiry

might also be called phenomenology.

Research approaches
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This study adopted the inductive research approach. Inductive approach, known also by

inductive reasoning, starts at the end of the research process by observations and theories are

suggested (Sasankan et al., 2019). Inductive research "is to look for patterns of observation and

construct explains - theories – through a sequence of hypotheses for these patterns." At the

beginning of the investigation no theories and hypotheses apply in inductive studies and the

scientist is allowed to change the course of the investigation once the investigation has begun.

It is crucial to clarify that an inductive method does not mean that theories are ignored

when research issues and goals are formulated. This strategy seeks to create meanings from the

acquired data set in order to uncover patterns and relationships for the construction of a theory;

yet inductive technique does not preclude the scientist from using the existing theories to outline

the study issue.

Research design (qualitative/quantitative)

The research design is defined as the researchers’ methods and approaches, which are

designed to effectively address the study topic in combination with them in a reasonably logical

manner (Serumena et al., 2019). It is also a guidance to how a survey is conducted using a

certain method. Each researcher has a list of issues to be assessed and can do so by designing

market research. The design of a research subject is used to describe the research type and its

subtype.

A researcher must have a clear understanding of the various types of research design to

select which one to implement in the study. Research design can be broadly classified into

quantitative and qualitative research design. Each qualitative study is already a research design.

In the qualitative approach, the design represents the general approach that we will use in the
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research process. Qualitative research is carried out in cases where the relationship between data

and collected observations, based on mathematical calculations, is established. Theories related

to a natural phenomenon can be tested using mathematical calculations. Researchers rely on the

qualitative design of the survey expecting it to be completed.

Data sources (primary/secondary)

The researcher in this study were opt for primary data collection. The primary data

collection is not chosen randomly for this work, since it is articulated with the proposed general

objective, where it is intended to analyse and verify the effects of motivation on employee

performance. Peoples working in different departments of the company will be the potential

participants. Primary data, sometimes referred to as raw data, are directly gathered by the

scientist using his own instruments and knowledge. These are achieved in order to address the

phenomenon of the study. They are generally expensive because firms need employees and

considerable investment to conduct the research process. They are acquired using several ways,

including questions and interviews.

Data collection approach (survey/interviews)

For data collection, survey was used. Kumar, (2019) states that the survey as a method,

carefully chooses a particular object to be studied, whether it be a single case or multiple cases in

which the phenomenon itself is little known, it may be one or more procedures, events,

individuals, institutions, or social groups. According to Humphries, (2017) the survey can be

applied in the scope of quantitative investigations. As mentioned above, the data were collected

using surveys. The survey questionnaire will be formulated with closed ended questions. The
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questionnaire will be developed with the help of existing literature and based on Likert Scale of

one to five.

Data collection tool

As a research tool for addressing the aims of this study, a structured questionnaire and

semi structured interview guide were employed.

Questionnaire’s Survey

In such a way that the study information was analysed by means of proper data

analysation technology, the questionnaire was structured. Two components of the questionnaire

were created. Section A sought information about the respondent’s personal data, age, marital

situation, quality, years of experience. Section B addressed the issues of Likert’s current role in

promoting motivation for employee performance; Section C focused on issues of use relating to

the impact of motivation on employee performance in UK. Section C addressed issues of the

British companies relating to impact of motivation and employee performance (Grant, 2017).

Development of research tool

When collecting qualitative data, it is preferable to use more than one data collection

method. Obtaining information on the same phenomena in a variety of ways allows the

researcher to triangulate the data, adding rigour to the research. By nature, qualitative data

collection is emergent and the design is intentionally flexible to enable the researcher investigate

themes (findings) in more detail as they emerge.

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When formulating the questions, the researcher will take care to have an informal

conversation with the respondents, in order to check the consistency of the questions to ensure,

as far as possible, that they had the same meaning for the parties, avoiding them. The delivery

was made to the respondents’ universe, without any distinction, with personal delivery of the

surveys in an envelope that was sealed, by themselves, after filling in, with the objective of

keeping the data anonymous. The finding also has implication to employers that they must know

what motivates their employee. This is because the personality of employees reacts differently to

variable motivational factors. Some employees are more intrinsically and others are more

extrinsically motivated.

Reliability and validity of research tool

Reliability:

If an investigation is conducted regularly, the researcher involved expects similar results to be calculated
each time. The survey design must indicate how the questions should be formulated to ensure the
standard of results obtained and this can only occur when the survey design is reliable. This research is
designed considering the standards established by the University. Using the SPSS statistical software,
Cronbach's Alpha analysis was applied to validate the survey and determine that the reliability is greater

Validity:

There are several measurement tools available for the research project, but valid measurement tools
are those that help the researcher to measure the results according to the research objective. The
questionnaire developed from this research design will then be valid. This research work cites all the
sources that have been used in the writing of the report, in accordance with the requirements
established by the university, the authors are also cited, in all the parts of the corresponding reference,
even in the paraphrased texts.

Sampling technique

According to Mohajan, (2018) the concept of universe refers to the whole population.

With regards to the sample, it is a small group to be studied that has been appropriately removed
 Hospitality 37

from the universe, thus constituting a subset of the universe. Convenience and snowball

sampling will be used in this study to recruit the participants. At the initial point convenience

sampling would help to contact peoples in personal contacts. In the second phase those who

already contacted will be requested to refer more friends working in the banking sector, thus the

required number of samples will be achieved. The contact will be made with the participants via

emails.

Sample size

The set of respondents to the questionnaire in this paper were composed of 150 people

who will be approached by a link sent to their emails. We employed a self-administered

questionnaire of descriptive type to collect primary data before analyzing. This questionnaire is

convenient in many ways. Firstly, the respondents answer at their convenience. Secondly, there

is no need to set up interview appointments. Furthermore, no interviewer is present to inject bias

in the way of questions asked. Moreover, the low cost-per-completion makes it an economical

method of surveying large sample.

Data collection process

Mohajan, (2018) refers that the data collection consists of a methodology that is based on

the investigation of a contemporary phenomenon in the context of an organisation’s real

situation. The researchers must apply the primary and secondary data to the purpose of the study

that they propose to carry out. Primary data collection takes resources including time, work, and

money. Secondary data, on the other hand, may be collected faster and is very cheap and freely

available. The primary data is always designed to be particular and to cover each and every

needs of the scientist responsible for his assessment and quality.

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Data analysis technique

In order to meet the purpose of the study, the information collected on all factors in the
questionnaires will be analysed. Data from the structured survey will be investigated using
SPSS’s suitable descriptive analysis tools. Calculated statistics such as average, standard
deviation and percentages were conducted. The researcher could interpret the original data
collected by this analysis. For the information processing and quantitative data tabulation, the Excel
software was used, after obtaining the tabulated information, the SPSS statistical software was used for
the analysis of the results, finally, to determine the reliability of the information, the value was applied
Cronbach's alpha through SPSS statistical software.

Data analysis process

The treatment and analysis of the responses to the questionnaires will be done in a

Microsoft Excel spread sheet, where dynamic tables and graphs were also generated. SPSS V.20

will also be used to make the descriptive statistics of the items and dimensions, for the

calculation for statistical inference. The Questionnaire will be composed of several

subcomponents, namely: Work Motivation, Rewards, Work Performance and Global

Performance.

Ethical considerations

The personal information of the participants will be kept anonymous. No participant will

be forced to participate in the study. All of them will be volunteering. Moreover, the participants

will be able to withdraw from the study at any time without giving any reason or prior

information about it. before the commencement of the study, every participant will be given

participant information sheet and consent forms. The information sheet will inform the

participants about the purpose of the study and what their contribution will be. The consent form

will be used to collect written consent of participants. The consent form will also contain the
 Hospitality 39

rights of the participants with a clause on withdrawal from the study. The personal data of

participants such as name, age and demographics will be kept anonymous to protect the privacy

of participants.