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 11

The Impact of Employees’ Motivation

on Performance: Findings from Karachi Based Service
Organization
Saleem Raza Bhatti
Sheema Haider

Abstract
Now a days most of the organizations around the corporate world are allocating more in their human resources
rather than capital structure, as they believe that employees are significant base for improving their profitability
and achieve success. Researchers have put their best into finding new avenues, where an organization can
improve its performance. Thus the purpose of this research is to empirically investigate the influence of
employee motivation on performance. In order to materialize the objective, researchers were required to get the
questionnaire filled from the employees working in two selected service based organizations. Once the data was
collected regression analysis was performed along with that, Cronbach’s alpha test was also performed to test
the reliability of the constructs. The constructs in this study were statistically significant, except empowerment.
The study also found a positive relation between motivation and performance indicating that the higher the
motivation the higher the performance. Thus, concluding that there were ample evidences that autonomy,
recognition have significant influence on motivation, which eventually impact on performance of the employees
of investigated service organizations based in Karachi, Pakistan. The study recommends that organizations
should formulate and implement the kind of policies that ensures the autonomy and due recognition of the
employees from time to time, which in turn could help organization to motivate their employees, so that the
organization performance can be fuelled.
Keywords: Performance; Autonomy; Indus University; Pakistan; Karachi.
1. Introduction
1.1. Background of the study
Fair emolument has been made key components of the organization policies over the years, which enabled
employees to put their best while on work and turn their efforts into organizational performance. The existing
global economic practices has also enabled most of the workers to understand the reality that their organization
should have to compete vigorously, hence the productivity of personnel keeps moving in long run to retain the
longevity of the organization. Moreover that efficiency of an employee in the association is vigorous not only
for the development of the association but also for the improvement of an employee in an organization.
Corporate sector are required to be conscious about the employees those are vivid and, need an outstanding
training, so that their energies can be utilized for efficiency and well being of an organization. According to
researchers the actual use of payments and employee efficiency to inspire them started in 1970s. May be in early
1970s, the organizational philosophy observed that boredom of hostile solicitation of payments to shake the
employee enactment to encourage the inspiration level between the employees. Meanwhile this approach related
with communal anxiety is important to determine and accomplished in industrial development context due to
unintended conduct of the executives to accomplish of their employees’ by given autonomy and empowerment
them to increase their performance. In view of this, study efforts have been made to classify the influence of the
motivation on individual effectiveness to compact with the hitches rising from motivational methodologies in
structural set up (Vroom, 1964). Supported the expectations that employees have a tendency to execute extra
professionally if their remunerations are linked with performance which is not established on individual
favoritism or bias some time according to the bases of the objectives and the assessment of an employee’s
excellence. However numerous methods of gauging job performing have been industrialized in overall the exact
method selected differences with the kind of efforts.

1.Department of Business Administration & Commerce, Indus University, Karachi, Pakistan

E-mail: saleem.bhatti@indus.edu.pk
2.Director,Quality Enhancement Control, Indus University, Karachi, Pakistan
E-mail: qec@indus.edu.pk

IJMS Volume 2 Issue 1 2014

 12

Finger counted firms believes, human resources are happened to be their strategic assets this has potential to
uphold the performance. Therefore the contentment and persuasion of the employees in work environment are
precursors to achieve organizational goals and objectives. Altogether these problems request for investigation
energies so as emphasis in what way properly motivated can applaud or affect the work forces to shape up
constructive assertiveness towards their job and for the enchantment of their efficiency.
1.2. Statement of the problem
The efficiency of an organization and worker inspiration has a pivotal point of laborious research efforts in up to
date. In what way how much smooth an organization encourages its employee to accomplish their task and
apparition is of vigorous apprehension. Individuals in civic and private regions organization are appropriate
gradually more attentive that motivation improves the proficiency of an employee. Since the past and watching
at present line of work and occupational development here after it is exciting that the speediness of alteration in
our occupation trope domain existing innovative tasks are day to day even but there is no investigation work has
plagued to inspect the effect of an individual’s inspiration and organizational efficiency the outcome of leaders
and clean lines on job performance. In practice identical some organizations check the intensity of an employee
motivation on organizational efficacy on the service. So for the outcome of this research attempts theoretically
to explore how motivational instruments can be used by service organization.
1.3. Objectives of the Study
The overall Objectives of this study are to scrutinize the significance of performance in service organizations.
The explicit goals are as:
To explore the consequence of an individual inspiration on managerial efficiency
To explore the elements that enhances the performance of an employee.
To review an organization among employees performance in service organization
1.4. Research Questions
Is employee motivation distress performance enactment?
Does motivation tool increase effectiveness of employee performance in an organization?
Does employee motivation associated with performance?
1.5. Hypotheses
H1: Motivation of employees’ has no effect on performance
H2: There is no impact of autonomy on performance
H3: There is no influence of employees’ motivation on performance
H4: Empowerment does not have any impact on performance
2. Literature Review
Motivation has been defined as a mean to move forward for the attainment of desires, and wants. According to
Bartol and Martin (1998) motivation is an influence that powers the conduct and gives track to the performance
and motivate the understanding to carry on. This definition determines that in directive to attain certain goals
than employee should be content and keen and remain vibrant regarding goals and aims.
Motivation can also be referred as an inner encouragement to content a hopeless and unwanted needs and
boldness to achieve the motivation. This is an effort of heartwarming and nourishing goal oriented conduct
(Chowdhury, 2007). It is an inner most influence that impulses employees to straining off individual and
organizational objectives (Ali & Ahmed, 2009). Inspiration has a traditional arrangements linked a kind of
influence which increase the efficiency and to enhance and achieve positive goals and objects (Kamalian,
Yaghoubi, & Moloudi, 2010).
In human resources employee motivation is the newest and more vital and has the expertise to provide an
enterprise with workable force as connected for others (Danish & Usman, 2010). An individual effectiveness
mainly be determined by several motives e. g., performance assessments, individual inspiration and satisfaction,
compensation, training and enhancement, job security, performance, organizational philosophy and
environment. However the extent of research is concentrated purely with the individual motivation the nature of
this cause has a great impact on the performance of an employees.

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Motivation of an employee is one of the policies of leaders to raise the efficiency work handling among the
employees in an organization. Motivated employees actually become more enthusisastic for aceheiving desired
objective. According to some researchers inspiration articulates and has a great impact to make an organization
more effective mean while motivated employees are continually watching in the developed prospective to
perform their jobs. Attainment employee’s to ensure the best efforts in any difficult conditions, is one of the
employee’s greatest safe and creepy tasks and could be done conceivable increasing the level of motivation of
the employees.
Performance of an organization, configuration of an employee which develop occupational exceptionality for
some definite purpose is remarkably accepted. Organizational performance is theoretical concepts and how an
organization is accomplishing outcomes and goals (Abadi et al., 2011).
This delivers a vital role and has a significant purpose in harnesting organizational advancement (Aydin &
Ceylan, 2009). This is an entire obligation for the whole parts and in the system for gathering all kind of
resource and transforming into output in a proficient system (Roy & Dugal, 2005). The firm’s efficacy has been
well define like volume that has a company by the use of definite resources, to accomplish its goals exclusive
utilization of their assets and required to lock unnecessary damage for the employees. Organizations need to
determine that the employee working with them receive a suitable pay cause them motivation employee (Houran
& Kefgen, 2010). Monetory rewards are basic motivational tool and technic; and no any kind of incentives and
emotional methods could not be nearer to it, in response to its impact (Rynes, Gerhart, & Minette, 2004).
This takes superiority and creates a center of attention, sustain and motivate employee towards superior concert
Frederick Taylor and his systematic administration correlated describe money is greatest essential element in
inspiring of an employee and achieve large production (Tella, Ayeni, & Popoola, 2007). Investigation devises
and recommends motivation to day become basis of fulfillment of the individuals that has impact straight on the
performance (Khan, Farooq, & Ullah, 2010). The payroll system and monetoty rewarding mechanism of the
organizations can induce the efficient work behavior among employees. In service organizations motivation, pay
and encouragement, reward and another sorts of remunerations to motivate and inspire the great level of an
employee motivation (Ali & Ahmed, 2009). By applying wages a tool of motivation efficiently, leaders should
reflect pay structure which should consist the status of an organization attachment to all tasks, compensation
rendering for the betterment of an individual or distinct pay and marginal pay, backs, allowances and carry on.
(Tella, Ayeni, & Popoola, 2007), what organization need is for employees to develop interest in their work, and
this trust is only made possible through motivation of employees done by managers (Baldoni, 2004). Motivating
and persuading employees for organizational productivity remained effective issue on the agenda of mangment
researchers. Hence the separate entities have been developed within the organization to conduct motivational
speeches from time to time. Some of the organizational used to outsource such speakers to develop enthusiasm
among the employees (Vroom, 1964).
When an organization need to increase performance, in which faith has a vital role and must be constantly can
be preserved for the confirmation of a firm survival try to improve employees’ inspiration (Annamalai,
Abdullah, & Alazidiyeen, 2010) however this can make intrapersonal and interactive impact and has the effect
on the organizations out and inside of the organization (Fard, Ghatari, & Asad, 2010).
2.1. Theoretical Frame Work
The empirical association among motivation and organizational productivity, have been studied a lot.
Motivation theories used to focus on inspiration of the subject. Such insipiration is translated into organiztional
productivity, and help the organization to gain competitive advantages. In order to retain competitive adavantage
and prosper in motivated employees the organaniztion tend to put maximum so that employee performance may
be improved and keep such momentum going (Harder, 1991;Robbins & Judge, 2014). An expectancy theory,
Goal setting theory for example can be quoted here (Austin & Bobko, 1985). One thing which is mutual for
humans is to relate themselves employees with each other’s, the concepts which derives since it is, assessing of
one’s-self and each other is an even handed philosophy. Whereas some researchers showed that many
philosopher conferring the even handedness concept has one and two fundamental facts. An employee observe
an impartial reoccurrence for what they are contributing to their jobs secondly employees then work some kind
of what their compensation should be with their coworkers. In the last each employee that recognizes himself to
be in a biased position s/he will attempt to minimize this unfairness. Robbins and Judge (2014) describes that
the motivation theory is a midpoint on observed impartiality of an employee. An employee reveals on how
ample efforts s/he has depleted and matches this, to what s/he has acquired after it. After this employee assess,
what is the ratio of employee’s efforts and performance s/he will match his/her ratio with the others, particularly

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the straight aristocrat.When an employee sees his/her input-output ratio to be equivalent to the ratios of others
related workers, a state of equity occurs the employee feel that he is dealing honestly.
In this condition the person is apparently relaxed and will not have to imbalance the situation (Cosier & Dalton,
1983). In fact when an employee observes in adequate ratios among him and his colleagues, there will be a
situation of injustice. Exterior equity rises while individual apply the contrasts on coworkers because of the have
same job however they are working in various firms, interior equity happens when employees match themselves
to others.
The evenhandedness philosophy is determined for the investigation since it is remarkable to see in what way
workers associate with each other and everyone. This lead to job turnover when few employees observe that
they are not to be treated honestly. The Significance is that equity theory shows that faith, and observations and
approaches effect of motivation. If the employees are motivated and powerful for the current condition when
there is a discrimination in equality present on the other hand, expectancy theory denotes to a conventional
decision theories of work and motivation and performance (Vroom, 1964). Observations play a vital role in the
center of expectancy theory since it stresses intellectual capability to expected significances of conduct .As
conferring by (Vroom, 1964) the expectancy philosophy has two main expectations. The first hypothesis show
an employee have observation about the magnitude of the results from his/her behavior and activities the pivotal
association with those consequences, these observations, are motivation and denoted as either beliefs or
instrumentalities. Secondly suppose that employee has active responses to definite outcomes. Effective
responses reveal the value of positive or negative out comes of consequences. As the expectancy theory, explain
that an employee become much inspired and accomplish two possibilities (Isaac, Zerbe, and Pitt ,2001),
expectancy is the possibility that the efforts put forth will enhance for required efficiency, expectations can be
shown with the possibility of a specific proficiency can move towards positive desired results. If the possibility
of few work could not be compensated, the individual could not be significantly inspired to work for the definite
job. Expectancy theory fundamentally depend upon the motivators to simplify the reason for performance
demonstrated at the place of job (Leonard, Beauvais, & Scholl, 1999). An external remunerations can be
watched for persuading inspiration conditions and work as a fuels conducts, as conflicting to inherent
instigators, the conducts are derived from an inside services such as the satisfaction of the employee and
himself since this is inspiring, and exciting (Isaac, Zerbe, & Pitt, 2001). In other words the Goal setting theory
(Locke et al., 1981) clears objectives as what an employee tries to achieve it is the aim or object of certain
activities. The basic supposition of goal-setting is that goals are instant controllers of human activities (Locke et
al., 1981). Results shows the outcome of goal setting study specifies that precise objectives increase and to rise
incompetence and that kind of problematic objectives, once employee have acknowledged them, consequences
in advanced effectiveness objectives come very easy (Locke,1968; Austin & Bobko, 1985). This goal setting
philosophy has various inspirational mechanisms (Locke & Latham, 1984).
The paramount of motivational instrument is that goals are in the researchers opinion significant and attract
viable focal point an employee attention is vital and what is related. Another instrument is that objectives have a
bracing purpose. It has been clear that if the objects are higher than the efforts also higher if the goals are less
than the efforts are also less. Third method may be goal disturbs perseverance, determination is the struggle
finished with in the precise job above on definite amount of period. Usually the extra tricky is to achieve goals,
the high the determination, and the last inspirational instrument clamps that objectives upsets accomplishment
ultimately by leading to the provocation finding and use of information and plans , on subject the effect of goal
setting models on native inspirations.
2.2. Variables
Since study has made focus on the influence of employee motivation on their performance while on job,
therefore the employee motivation along with its dimensions namely autonomy, recognition and empowerment
is independent variable whereas performance is dependent variable.
2.3. Autonomy and Empowerment
According to different research articles autonomy and authorization is explained by way of a bottom line for
leadership, that empowerment is a core constituent of management and managerial efficacy (Honold, 1997) ;
(Bowen & Lawler, 1992). Thus empowerment could be considered as a permit of an individual to devise
decision. (Kamalian, Yaghoubi, & Moloudi, 2010) . The main authority of empowerment is to better organize
over 'how' jobs are completed and developed (Smith,1997) . Rappaport (1987) explain that autonomy and
empowerment enable employees of the organization to get a graspe on the complications of the organization and
societies. Further it make employee believe that their organization is not only paying attention but at the

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sametime have esteemed them for making it successful lasting and constructive comeback.
2.4. Motivation and Performance
Motivation can be defined as a mean to move forward for the attainment of desires, and wants. Bartol and
Martin (1998) define motivation as an influence that powers the conduct and gives track to the performance and
motivate the empathy to take on. This definition determines that in order to attain certain goals employees
should be content and keen and remain vibrant regarding goals and aims.
It can also be referred as an inner encouragement to content a hopeless want to boldness to achieve and the
motivation is an effort of heartwarming and nourishing goal-oriented conduct. (Chowdhury, 2007); It is an inner
most influence that impulses employees to straining off individual and organizational objectives. Inspiration has
a traditional arrangements linked a kind of influence which escalation the efficiency and to enhance and achieve
positive goals and objects (Khan, Farooq, & Ullah, 2010).
In human resources employee motivation is an expertise to provide an enterprise with workable force as
connected for others (Danish & Usman, 2010) . An individual effectiveness mainly be determined by several
motives for e.g performance assessments, individual inspiration and satisfaction, compensation, training,
enhancement, job security, performance, organizational philosophy and environment but the extent of research is
concerned purely with the individual motivation the nature of this cause has a great impact on the performance
of an employees.
Motivation plays a significant role in improving organizational performance and for the attainment of
organizational goals and objective. Various studies shows that a positive relationship among performance and
motivation. A prominent model put forth by Spreitzer (2007) who recommended the two modules of controller
organisms that affect employee approaches of authorization and performance. This investigational research
gives a direction for the social behavioral investigation works by exploring how explicit kind of performance
response and performance grounded recompenses put effect one motional extents of authorization and
performance. Similarly we can apply a comparatively clear framework to determine whether forecasts
authenticated on investigations of leaders also embrace for front line employees.
3. Methodology
In this research primary data was collected for the analysis for the accomplishment of results for this research. In
this respect hypothetical framework was studied to calculate the gap where this research is exceptional of its
type.
3.1. Data
A structured questionnaire has been incorporated as an instrument for data collection, a Five levels Likert scale
has been used, adopted from (Saunders, Lewis, & Thornhill, 2009) .
For the measurement of variables, the data was acquired through close ended questionaire, the questionnaire
were distributed to 200 employees working in Karachi Water & Sewerage Board & Indus University the
questionnaire, out of which 100 were duly filled by the respondent .
3.2. Variables

S.N Variables Source of Items

Bennis,(1989),(Kanter,1977) , McClelland,(1975) , Smith (1997)
1 Autonomy
Honold (1997), Bowen & Lawler (1992) ,Smith (1997).
2 Empowerment

3 Recognition (Graham & Unruh, 1990), Jeffries,(1997), Stajkovic & Luthans,

1997)

4 Motivation (Judge,et al 2001 and Luthans,2002 ). Locke,(2008).

5 Performance (Abadi et.al, 2011)

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3.3. Population and Sample Frame

The population for this study include employees working in Karachi Water & Sewerage Board and Indus
University Karachi.
3.4. Sampling Technique
Since population for this study was unknown therefore this study fall in the category of nonprobability sampling
and in this nonprobability sampling types, convenient sampling method was used to collect response from the
respondent as it was difficult to gather data.
3.5. Data Collection Tool
A close ended Questionnaire consisting of 20 statements was established to find out the opinion of the
employees about how motivation effect their performance which covers four dimension each with four items
based on likert scale with options ranging from strongly agree, to strongly disagree ; Further demographic
questions regarding Age, Education, Work Experience, Gender etc were also included.
4. Result and Discussion
4.1. Reliability Statistics
Table.1

Variables No of Items Α
Autonomy 4 0.829
Empowerment 4 0.416
Recognition 4 0.681
Motivation 4 0.726
Performance 4 0.533
The reliability test has been carried out to determine the internal consistency among items to define constructs of
this study. The table 1 shows that the crobach’s alpha reliability for most of the items of this study was close to
1, hence the variables along with items reasonably defines the related constructs indicating high reliability.
4.2. Descriptive Statistics
Table .2 Demographics

Variable N Percentage
Age 18 to 35 46 46
35 to 45 47 47
Gender Male 69 69
Female 31 31
Academic Graduate 80 80
Masters 20 20

Work experience 5 years 61 61

10 Years 32 32
Above 10 Years 7 7
The descriptive statistics shows that 46% respondent who filled the questionnaire belong to the age group of 18
to 35, where as 47% belong to the age group of 35 to 45, as the total percentage of the respondents answereing
Age total 93% indicating that 7% were missing values. Similarly respondents who filled the questionnaire
among them 69 were male were as 31% were female. Among all the respondents 804 were graduated on the
otherhand 20% were masters. Lastly the work experience shows that 61% of the respondents were employed for
the period of 5 years, 32% for the period of 10 years & 7% for 10 years and above.

IJMS Volume 2 Issue 1 2014

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4.3. Regression Analysis

To analyze the impact of all fore said variables Karachi based service organizations KW&SB and Indus
University. On Performance multiple regression analysis has carried out for this research.
Table 3

Model R R Square Adjusted R Std. Error of the

Square Estimate
1 .677a .458 .436 .18774
a: Predictors: Constant, recognition, motivation, performance, autonomy

As the difference between R Square and Ajusted R Square is less than 5% which indicate a significant

regression. Further 45.8% variation dependent variable in is explained by recognition, motivation, performance,

autonomy

4.4. Hypotheses Assessment Summary

Determinants of Performance: Regression Estimates

(Dependent variable: Performance)
Model Coefficients
Ind: Variable Beta T. Value Sig Remarks
Autonomy .110 4.728 .000 Fail to Reject
Empowerment .038 .713 .477 Substantiated
Recognition .129 3.217 .002 Fail to Reject
Motivation .309 7.872 .000 Fail to Reject
R-square.458 F-Statistic-20.106P-value-0.05

Results show that as the sig value of variables which include Autonomy, Recognition, Performance and
Motivation is less than 0.05 thus we reject Ho concluding that these variable have an impact on performance,
therefore the result shows that 1% increase in autonomy will cause performance to increase by .110, similarly
that 1% increase in Recognition will increase the Performance by .129, were as if motivation is increase by 1%
it will cause performance to increase by .309.On the other hand as the significance value of empowerment is
greater than 0.05 thus it could be councluded from the result that empowernment does not have an impact on
Performance.
4.5. Discussion
The research result are based on the data analysis and the four hypothesis tested the aim of this study is to
determine the impact among the employees motivation and performance in service organizations in Karachi
Pakistan. Hypothesis shows that there is a significance impact on the employee motivation and organizational
performance.
This means that if the employees are more and more motivated they become very productive and work hard
with zeal for the organization and this put a good impact directly on the organizational performance results
The findings of second hypothesis shows, increase in motivation has a positive impact on employee
performance. Though this study is a unique of its kind has demonstrated the importance of motivation as a

IJMS Volume 2 Issue 1 2014

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workable predictor of organizational performance therefore employee motivation has a great influence on the
performance.
Results shows in hypothesis three that recognition play a vital role in the performance of the organization if the
employees are respected and appreciated they become motivated and it is a positive impact on organizational
performance.
The results of hypothesis four shows that there is a negative impact on organizational performance and need to
improve the empowerment of the employee.
5. Conclusions and Recommendation
5.1. Conclusion
Autonomy and empowerment play a vital role and improving employee motivation towards organizational
performance and jobs. With encouraging the employees for their job complete and giving them involvement in
decision making, and satisfying them by their job, with organizational environment. Therefore their eagerness
and motivation for the achievement of odd jobs increase.
Employee autonomy and employee motivation towards performance and tasks have productive relationship.
Motivated employee work most exceptional in the interest of the organizational performance which leads them
towards growth, success and productivity. As a result the employee motivation and organizational efficiency are
straight related with employee motivation. Hence the organizations must work out and construct such policies
and organizational structure that support employee recognition, acknowledgment and autonomy for the
attainment of organizational goals and objective in a best and better way.
5.2. Recommendations
The following are few suggestions for the organizational performance the important and more significance role
of employee motivation is for the attainment of organizational goals and objectives those organizations
achieving succession for their better productive out comes in the work place trying to striving for the
accomplishment of excellence the employees should be better motivated and organizations frame such type of
policies and strategies to mitigate the employees motivation to wards the organizational performance.
The study recommend that the organizations should maintained and incorporate such types of policies like
salary and other firing benefits for the employees many other remunerations are al so given for better motivation
of the employees motivated employee become very productive for the organization, this put a positive impact
directly on the organizational performance their efforts should be recognized and acknowledge motivated
employees are the wealth of an organization.
Empowering employee will play a significant role for the outstanding performance as well as recognition is
concern if the organizations recognize and appreciate the work of an employee the feel very much content and
satisfied that the organization is acknowledging their efforts and we are respected by the organization in this
regard the confidence level of the employee become higher and higher and this will lead to positive work
attitude.
5.3. Limitations
The limitation of this is study is sample size the size of the sample was so lesser to simplify the whole study the
findings may be implicit with attention and may be limit to the Institutional dangers environment, limitations as
far as the research strategy is concerned in terms of questionnaire used in this study to apprehension the
employee motivation.
Nearby 139 constructs of motivation has been already been developed by researchers but only four dimensions
has been incorporated instead of others which limits this research to capture most of the other dimensions of
motivation. Meanwhile research can be done on the basis of this study comparison of employee motivation and
organizational performance. Since this study does not reveal that how various employees of various
organizations in different departments shows their motivational level and have relationship with organizational
performance. Various approaches and many opportunities are available for the academic as well as managerial
research in the area of organizational performance. The only requirement is the understanding of the contextual
variables of organizational performance takes into consideration for the further study i.e. how organizational
performance has been affected by other variables such as empowerment, recognition and performance,
motivation.

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