International Journal of Business Ethics Online ISSN: 2717-9923

and Governance (IJBEG)

https://ijbeg.com

The Link Between Motivation and Organizational Performance: An

Exploration of Factors Influencing Employee Motivation and its Impact
on Organizational Success
Olusegun Oladapo Akerele*
National School of Political and Administrative Studies SNSPA
E-mail: akeoluoladapo92@gmail.com
*Corresponding Author

Abstract:
This paper explores the intricate relationship between employee motivation and organizational performance,
with a focus on understanding the factors that influence employee motivation and its impact on achieving
organizational success. Drawing on a comprehensive theoretical framework and empirical evidence, the
study sheds light on the significance of cultivating employee motivation to enhance organizational
performance. The research contributes to the field of Human Resource Management by offering practical
recommendations to foster employee motivation and drive organizational success. The methodology
involves a mixed-methods approach, combining a structured survey questionnaire to collect quantitative
data and in-depth interviews/focus group discussions to gather qualitative insights. The findings provide
actionable insights for organizations across diverse industries to optimize their performance through
effective employee motivation strategies.

Keywords: Human Resource Management, Motivation, Organizational Performance, Employees.

Type: Research paper

This work is licensed under a Creative Commons Attribution 4.0 International License.
DOI: 10.51325/ijbeg.v6i1.118

1. Introduction

Organizational performance is a critical aspect that determines the success and

sustainability of companies. It encompasses various dimensions, including financial
results, productivity, customer satisfaction, and employee engagement. Executives need
to assess and understand their organization's performance to make informed decisions and
adapt to evolving corporate dynamics. However, it is essential to differentiate between
performance and productivity, as performance involves multiple factors such as
competence, reliability, efficacy, and readiness, in addition to productivity measures
(Mbah, 2019).
To enhance organizational performance, it is crucial to identify and comprehend
the factors that influence it. A seminal paper published in 2004 highlighted several key
elements that impact organizational performance, such as role descriptions, corporate
culture, management approaches, work environments, and personnel management
regulations (Kielbasa, 2021).
The measurement of performance can take different forms, capturing both the
"what" and the "how" of accomplishment. Different businesses in various countries
prioritize different performance indicators, with the economic viability and growth being
commonly used across nations. Key performance indicators (KPIs) are frequently
employed to assess the "what" aspect of performance, often linked to economic outcomes

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such as profit margins or efficiency. However, evaluating the "how" aspect, which relates
to organizational performance or competence, poses greater challenges, and relies heavily
on subjective evaluations within the specific organizational context (Nworgu, 2006).
While various definitions and measurement approaches exist, it is important to
recognize that no single definition of organizational performance is inherently superior.
The choice of definition should be guided by the ethical context of the research and the
specific objectives of the study. In today's competitive landscape, understanding the
factors that influence organizational performance is crucial for businesses striving to
achieve excellence. This article aims to explore the intricate relationship between
employee motivation and organizational performance by delving into the key motivational
theories that underpin this connection.
The primary objective of this study is to explore the factors influencing employee
motivation and examine their impact on organizational performance. By addressing the
following research questions, this study aims to enhance our understanding of the intricate
link between motivation and organizational performance:
- What are the key factors influencing employee motivation in the workplace?
- How does employee motivation contribute to organizational performance?
- What is the role of different motivational theories in understanding this
relationship?
- How do organizations' motivational strategies and practices affect employee
motivation and subsequently impact organizational success?
This study will provide a comprehensive theoretical framework, drawing on
empirical evidence, and present practical recommendations to assist managers and leaders
in fostering employee motivation and driving organizational success. By addressing gaps
in the literature and synthesizing current knowledge, this study aims to contribute to the
field of Human Resource Management and provide valuable insights for organizations
seeking to optimize their performance through effective employee motivation strategies.
In the following sections, we will present a theoretical review that delves into
motivational theories and their applicability in organizational settings. We will examine
relevant literature exploring the link between motivation and performance, considering
both monetary and non-monetary factors. Additionally, we will discuss the limitations of
existing research and highlight potential areas for future investigation. The findings of this
study will offer actionable insights for organizations to cultivate employee motivation and
improve overall performance.

2. Literature Review and Theoretical Background

The relationship between motivation and organizational performance has long

been a focal point of interest and research in the fields of organizational behavior and
human resource management. Understanding how motivation influences employee
performance is vital for organizations seeking to enhance their overall success. This
section provides a comprehensive theoretical review, drawing upon existing literature and
theories, to shed light on the key concepts and mechanisms underlying this relationship.
Motivation, as a fundamental psychological concept, propels individuals to
initiate, sustain, and direct their behavior towards achieving specific goals. Within
organizational contexts, employee motivation plays a pivotal role in shaping their
performance and, consequently, impacting organizational outcomes. Numerous theories
have been proposed to explain the intricate mechanisms through which motivation
influences organizational performance.

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A popular approach to categorizing motivation theories is by distinguishing

between content theories and process theories. Content theories primarily focus on
identifying "what" drives employees, often associated with the fulfillment of their needs,
while process theories delve into the understanding of "how" motivation develops and
manifests in individuals' workplace behavior (Karić, 2014).
One prominent content theory is Maslow's hierarchy of needs, which posits that
individuals have a hierarchical arrangement of needs that must be sequentially satisfied.
As employees fulfill their basic physiological needs, they progress towards higher-order
needs such as social belongingness, esteem, and self-actualization. Organizations that
provide opportunities for employees to fulfill these needs can positively influence their
motivation and subsequent performance (Nnabuo, Okorie, Nweededuh, & Uche, 2006)
Another influential content theory is Herzberg's two-factor theory, which
differentiates between motivators and hygiene factors. Motivators, such as challenging
work, recognition, and growth opportunities, directly enhance employee satisfaction and
intrinsic motivation. Conversely, hygiene factors, including salary, job security, and
working conditions, are essential for preventing dissatisfaction but do not necessarily
contribute to long-term motivation. Organizations must comprehend and address both
motivators and hygiene factors to foster employee motivation and improve overall
organizational performance (Basset-Jones & Lloyd, 2005)
Equity theory, proposed by Adams, highlights the significance of perceived
fairness in the workplace. According to this theory, employees compare their inputs (e.g.,
effort, skills) and outcomes (e.g., rewards, recognition) with those of others. When
individuals perceive inequity in the ratio of inputs and outcomes, it can lead to feelings of
demotivation and reduced performance. Ensuring that reward systems are perceived as
fair and equitable is crucial for maintaining employee motivation and enhancing
performance (Webb, Perry, & Fennelly, 2015)
Goal-setting theory, developed by Locke and Latham, suggests that setting
specific and challenging goals can motivate individuals to exert effort and enhance their
performance. Clear goals provide employees with a sense of direction and focus, thereby
positively influencing their motivation and subsequent performance. Effective goal
setting, complemented by regular feedback and support, is essential for harnessing
motivational power (Serhan, Al Achy, & Nicolas, 2018).
These examples represent only a fraction of the theoretical frameworks proposed
to comprehend the intricate link between motivation and organizational performance.
Theoretical perspectives from diverse disciplines, including psychology, sociology, and
organizational behavior, contribute to a comprehensive understanding of this relationship.
In the subsequent sections, we will delve deeper into the empirical evidence supporting
this link, considering the complexities and nuances that arise within real-world
organizational settings.
Overall, the theoretical review provides a solid foundation for comprehending how
motivation influences organizational performance. By synthesizing existing literature and
theories, we gain valuable insights into the underlying mechanisms and factors that drive
employee motivation and contribute to organizational success.

3. Methodology

This section presents the methodology employed in this study to examine the
relationship between employee motivation and organizational performance.

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The methodology employed in this study aims to examine the relationship between
employee motivation and organizational performance. Performance, in this context, refers
to the degree of work accomplishment after exerting effort. It is acknowledged that
organizational performance is influenced by various factors, including financial aspects,
personnel management, and external circumstances (Abioro, 2013). However, the study
recognizes that employees are a crucial resource for businesses, and their motivation plays
a significant role in determining organizational success or failure. The study emphasizes
that performance is a personal experience influenced by external factors that affect
individual variables such as aptitude and drive (Abioro, 2013) (Dobre, 2013)
To establish strong connections with their staff, businesses strive to understand the
diverse and often conflicting wants and needs of individuals. Effective leaders should
grasp what their employees seek from their work to comprehend, anticipate, and manage
their behavior (Dobre, 2013). However, relying solely on self-reporting from employees
may not provide an accurate assessment of their needs, as it can be biased or misrepresent
reality. Therefore, leaders must immerse themselves in the experiences of their workforce
to understand genuine demands and motivations. This understanding allows leaders to
have a more significant impact on organizational success by implementing strategies that
effectively inspire employees, such as bonuses, rewards, mentorship, recognition, and
career advancement while considering the integrative framework within which they
perform their tasks (Armstrong, 2006)
Motivational research delves into the underlying reasons for individual choices and
behaviors, exploring why individuals choose one course of action over others and why
they persist in their choices over time, even in the face of challenges and obstacles.
Motivation is at the core of how creative and effective activities are carried out within an
organization. It is essential to note that motivation can be categorized into two broad
categories: internal and external, each with distinct sources of compulsion and delight
(Mbah, 2019). External motivation is associated with material benefits, such as pay, perks,
job security, advancement opportunities, employment contracts, office culture, and
working conditions. Intrinsic motivation, on the other hand, is linked to cognitive rewards,
such as the opportunity to utilize one's talents. Intrinsic motivators address feelings of
challenge, accomplishment, gratitude, acknowledgment, and being treated with
consideration and care. As intrinsic motivators stem from an individual's innate desires
and are not enforced externally, they tend to have a more profound and lasting impact on
motivation (Mbah, 2019).
This study utilizes a mixed-methods research design to gain a comprehensive
understanding of the relationship between employee motivation and organizational
performance. Both quantitative and qualitative data will be collected to provide a rich and
nuanced analysis. To investigate the relationship between motivation and organizational
performance, we will employ a mixed-methods research design. This approach will enable
us to gather both quantitative and qualitative data to gain a comprehensive understanding.
To gather quantitative data, a structured survey questionnaire will be administered
online to a diverse sample of employees from different organizations. The questionnaire

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will measure various aspects of employee motivation and organizational performance

using established scales and validated instruments. Factors such as intrinsic and extrinsic
motivators, job satisfaction, work engagement, and organizational performance indicators
including financial performance, productivity metrics, and customer satisfaction will be
assessed.
Qualitative data will be obtained through in-depth interviews and focus group
discussions with a subset of participants selected purposively based on their survey
responses. These qualitative methods will allow for a deeper exploration of participants'
perceptions, experiences, and insights regarding employee motivation and its impact on
organizational performance. The qualitative phase will involve conducting interviews and
focus group discussions with select employees and managers. These qualitative data
collection methods will provide deeper insights into the experiences, perceptions, and
motivational factors that influence performance within the organization.
Quantitative data analysis will involve descriptive statistics, correlation analysis, and
regression analysis to examine the relationship between motivation factors and
organizational performance. The qualitative data collected from interviews and focus
group discussions will undergo thematic analysis to identify key themes, patterns, and
insights. In the quantitative phase, we will administer a structured survey questionnaire to
employees across various departments. The questionnaire will include scales and
instruments such as the Motivation Assessment Scale and Organizational Performance
Index to measure employee motivation and organizational performance, respectively. By
analyzing the survey responses, we can identify patterns and correlations between
motivation and performance metrics.
The findings from the quantitative and qualitative analyses will be integrated to
provide a comprehensive understanding of the relationship between employee motivation
and organizational performance. By triangulating the results from both data sources, a
more robust and nuanced understanding of the topic will be achieved.
Ethical considerations will be upheld throughout the study. Informed consent will be
obtained from all participants, and their confidentiality and anonymity will be maintained.
The study will adhere to relevant institutional review board (IRB) requirements and data
protection regulations.
Through this mixed-methods approach, this study aims to contribute valuable insights
to the existing knowledge on the influence of employee motivation on organizational
performance. By understanding the importance of fostering motivation in the workplace,
organizations can enhance overall performance and productivity.

4. Findings and Discussion

Motivation plays a crucial role in driving organizational performance, as supported

by extensive empirical evidence. This section presents a detailed exploration of findings
from relevant studies, shedding light on the impact of motivation on employee
engagement, satisfaction, and overall organizational success. It also critically analyses the
research, identifying contextual factors and limitations that influence this relationship.

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Findings A: Intrinsic and Extrinsic Motivation

Numerous empirical studies consistently demonstrate a positive relationship
between motivation and organizational performance. Intrinsic motivation, arising from an
individual's internal drive and enjoyment of the work itself, significantly influences
performance outcomes. When employees find their work meaningful and fulfilling, they
exhibit higher levels of job satisfaction, creativity, innovation, and overall job
performance. Intrinsic motivation encourages employees to exceed their job requirements,
contributing to enhanced productivity and organizational success.
Similarly, extrinsic motivation, involving external rewards such as financial
incentives, promotions, and recognition, also plays a significant role in driving
organizational performance. Offering competitive compensation packages and
recognition programs can increase employee motivation and job satisfaction, leading to
improved performance outcomes. Extrinsic motivators act as catalysts for performance
improvement and help attract and retain top talent within the organization.

Findings B: The Circular Relationship between Performance, Satisfaction, and

Motivation
Research suggests a self-rewarding circular relationship between employee
performance, satisfaction, and motivation. When employees perform well, they
experience intrinsic satisfaction, which is reflected in their behavior and further drives
their motivation. This intrinsic satisfaction becomes a driving force for long-term
achievement, ultimately improving organizational performance. Furthermore,
establishing specific employment criteria can help achieve superior results. As
organizational performance improves, employees can be provided with additional
incentives, serving as propellants for motivation.
The conceptual framework, depicted in Figure 1, illustrates this relationship,
providing insights into the reciprocal nature of motivation and its impact on performance.

Figure 1: Hypothetical Model of the Relationship between Employee Motivation,

Employees Outcome, and Organization Performance

Note. Depicted in grey surrounding employees’ outcomes are examples of positive

resultant employee characters (i.e., what happens to a motivated employee). While
represented by the dashed arrow is feedback from organizational performance to the

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product of Employees Motivation i.e., a Motivated Employee before exhibiting the

resultant employee characters. The figure created is an adaption by the author from select
sources (Bakotić, 2016) (Mosadeghrad, Ferlie, & Rosenberg, 2008) (Bhavikatti &
Hiremath, 2021) (PG, 2021).

Findings C: Contextual Factors and Limitations

Recognizing the influence of contextual factors is essential in understanding the
relationship between motivation and organizational performance. Different industries,
organizational cultures, and job roles may require tailored approaches to motivation. For
example, financial incentives may be effective in sales-driven industries, while intrinsic
motivators like autonomy and mastery may be more relevant in creative fields.
Organizations must adopt customized approaches to motivation that align with their
specific circumstances and workforce characteristics.
Despite the extensive evidence supporting the positive relationship between
motivation and organizational performance, challenges and limitations exist. External
factors, such as excessive workload, lack of resources, and organizational politics, can
undermine motivation. Additionally, individual differences in motivation and the complex
interplay between various motivational factors make it challenging to generalize findings
across different contexts.

Discussion
The empirical evidence strongly supports the link between motivation and
organizational performance. Both intrinsic and extrinsic motivation, along with a positive
work environment, contribute to enhanced employee engagement, satisfaction, and
overall performance outcomes. Organizations that prioritize and foster employee
motivation are likely to experience improved productivity, innovation, and competitive
advantage.
However, the complexities of motivation and its contextual nature require
organizations to adopt a nuanced and tailored approach to effectively harness the
motivational drivers for optimal performance. Understanding the unique needs and
preferences of employees in specific industries and job roles is crucial for designing
effective motivational strategies.
While the findings indicate a positive relationship between motivation and
organizational performance, it is important to consider the limitations and challenges in
applying these findings universally. Factors such as resource constraints, organizational
dynamics, and individual differences can influence the effectiveness of motivation
strategies.

5. Practical Applications

Based on the empirical evidence and findings discussed, organizations can

consider the following recommendations to cultivate employee motivation and improve
performance:
- Foster a positive work environment: Create a supportive workplace culture that
values and recognizes employee contributions. Encourage open communication,
collaboration, and trust within the organization. This can be achieved through
regular team-building activities, fostering a culture of appreciation, and providing
opportunities for employees to voice their opinions and ideas.

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- Provide growth opportunities: Offer employees opportunities for skill

development, career advancement, and personal growth. Implement training
programs, mentorship initiatives, and clear career progression paths to motivate
employees and enhance their performance. Additionally, consider providing cross-
functional projects and job rotations to broaden employees' skills and experiences.
- Design effective reward systems: Implement a balanced approach to motivation
by considering both financial incentives and non-monetary factors. Offer
competitive compensation packages, performance-based bonuses, and recognition
programs. Additionally, consider non-monetary rewards such as meaningful work
assignments, opportunities for self-directed projects, and public acknowledgment
of achievements.
- Empower employees: Foster a sense of autonomy and decision-making authority
among employees. Provide opportunities for them to take ownership of their work
and make meaningful contributions. Encourage innovation, creativity, and
problem-solving by creating a safe space for employees to experiment and share
their ideas. Empowerment can also be enhanced by delegating authority and
encouraging employee involvement in decision-making processes.
- Tailor motivation strategies to specific contexts: Recognize that different
industries, organizational cultures, and job roles may require different approaches
to motivation. Conduct regular surveys or feedback sessions to understand the
specific needs and preferences of employees. Use this information to customize
motivation strategies that align with the unique characteristics of the organization
and its workforce.
- Promote work-life balance: Recognize the importance of work-life balance and its
impact on employee motivation and well-being. Implement policies and initiatives
that support flexible work arrangements, such as remote work options, flexible
scheduling, and family-friendly policies. Encourage employees to maintain a
healthy work-life balance and provide resources for stress management and
employee well-being.

By implementing these improved practical recommendations, organizations can

create a motivating work environment that empowers employees, promotes growth and
development, and enhances overall performance and productivity. Continuous evaluation
and feedback will be essential to ensure the effectiveness of these strategies and make
necessary adjustments to meet evolving employee needs.

6. Limitations and Future Research

Despite the wealth of empirical evidence supporting the relationship between

motivation and organizational performance, it is important to acknowledge the existing
limitations and identify areas for further research. The following points outline these
limitations and suggest avenues for future investigation:
- Contextual Factors: The relationship between motivation and performance may be
influenced by various contextual factors, such as cultural differences, industry-
specific characteristics, and organizational structures. Future research should aim
to examine how these contextual factors interact with motivation to shape
performance outcomes. Understanding the contextual nuances will allow for the

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development of tailored motivational strategies that align with specific

organizational contexts.
- Mediating and Moderating Variables: The complex nature of the motivation-
performance relationship necessitates the identification and exploration of
mediating and moderating variables. For instance, the role of leadership styles, job
design, team dynamics, and organizational culture in influencing the relationship
between motivation and performance requires further investigation. By
understanding these underlying mechanisms, organizations can optimize their
motivational interventions and practices.
- Multidimensional Measurement: The measurement of motivation and its impact
on performance can be challenging due to its multidimensional nature. Future
research should focus on developing comprehensive and validated measurement
tools that capture various dimensions of motivation, such as intrinsic and extrinsic
motivators, goal orientation, and self-efficacy. Additionally, incorporating
objective performance metrics alongside self-reported measures can provide a
more accurate assessment of the motivation-performance relationship.
- Long-Term Effects: Most studies have primarily focused on short-term outcomes,
such as immediate performance improvements. However, understanding the long-
term effects of motivation on sustained organizational performance is crucial.
Future research should explore the durability and persistence of motivation's
impact over time and its influence on employee well-being and organizational
success in the long run.
- Cross-Cultural Studies: While there is evidence supporting the relationship
between motivation and performance in various cultural contexts, more research
is needed to enhance generalizability. Conducting cross-cultural studies that
compare different cultural contexts can provide insights into how cultural values
and norms shape the motivation-performance relationship. Such studies would
contribute to the development of culturally sensitive motivational strategies.
- Intervention and Application Studies: To bridge the gap between theory and
practice, future research should focus on evaluating the effectiveness of specific
motivational interventions and strategies in real-world organizational settings.
Conducting intervention studies that assess the impact of motivational
interventions on performance outcomes and employee well-being can offer
practical insights for organizations seeking to enhance motivation and
performance.
By addressing these limitations and pursuing further research in these areas, we can
deepen our understanding of the motivation-performance relationship, refine motivational
theories and frameworks, and develop evidence-based strategies to foster motivation and
improve organizational performance.

7. Conclusion

In conclusion, this study underscores the critical role of employee motivation in

driving organizational performance and success. By implementing effective governance
strategies, including fair compensation systems, rewards, and a positive work
environment, organizations can cultivate a motivated workforce that is engaged,
productive, and committed to achieving organizational goals.

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While financial incentives are important motivators, it is essential to recognize the

multifaceted nature of motivation. Organizations should also consider non-monetary
factors such as growth opportunities, empowerment, and work-life balance to foster
employee motivation. A comprehensive approach that combines both financial and non-
financial incentives will yield the most significant impact on performance outcomes.
However, it is important to acknowledge the limitations of the existing research and
the need for future investigations. Research should explore the long-term effects of
motivation on sustained organizational performance and employee well-being.
Additionally, understanding the mediating and moderating factors that shape the
motivation-performance relationship, such as leadership styles and individual differences,
will provide valuable insights for designing effective motivational strategies.
By continually striving to improve our understanding of employee motivation and its
implications for organizational performance, organizations can create a work environment
that attracts, retains, and inspires top talent. Cultivating employee motivation not only
enhances individual job satisfaction and well-being but also contributes to overall
organizational productivity, innovation, and competitive advantage.
In summary, by recognizing the importance of employee motivation, organizations
can unlock the full potential of their workforce and achieve long-term success. Continued
research and a holistic approach to motivation will help organizations navigate the
complexities of the modern workplace and maintain a motivated workforce that drives
organizational performance in a rapidly changing business landscape.

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