Thesis Synopsis

University of Tartu

A Study on Impact of Motivation on Employee Performances in Service Sector

This study provides an understanding about the most important area in Human Resource Management (HRM) field. The study aims employees work motivation on performance in the service sector by taking psychological framework of goal setting theory into consideration. Also this study provides a framework which suggests that goal setting theory plays important roles for understanding the employee to independent contribution on assignments, tasks and service to employee work motivation and performance. The study is divided into two parts which consists of first literature review and research study in the second part. The literature review is later divided into Four Chapters. First chapter deals with the introduction, Objectives of the study and Research Methodology. Second chapter deals with Definitions, which provides details about different terminologies which are important for the research. Third Chapter concentrates on the Literature review, which provides an in-depth study of Motivation, and its theories. Chapter Four deal the Goal Setting Theory and its implications in the service sectors. In the Second Part of the study, provides an in-depth view about the research and its implications. The research is to be conducted within the service sector to find out work motivation which is based on the goal setting theory and its impact on employee performance in service sector. Moreover, this segment also provides the implications and suggestions of the study.

By Samir Halder

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By Samir Halder Page 2 . Later based on the gathered data and findings. this study will provide suggestions for improvement in work motivation which will help the professionals for improving their performances. This research is designed to evaluate the effectiveness of work motivation by the help of goal setting theory within service sector with the help of gathering data through questionnaires. the following are the objectives of the study: i) ii) To identify the importance of Goal Setting Theory in motivation for employee performance within service sector. In the world of globalization. Research Methodology The aim of the study is to find out the importance of Goal Setting Theory in the service sector. interviews and observations. Hence.Thesis Synopsis University of Tartu Objective of the Study Today. one of the greatest challenges that the organization is undergoing is particularly for the HR function. employees are not only motivated by the help of extrinsic rewards but also intrinsic rewards play an important role in increasing employee’s performances. is to create and maintain motivated workforce which helps to increase the performance. To identify the extrinsic and intrinsic motivators for motivating workforces in service sector.

Ivancevick. is energized. According to Amitai Etzioni.Thesis Synopsis University of Tartu Definitions Motivation Motivation can be defined as the activities that direct human behavior and how this behavior is sustain to achieve a particular goal. behavior. By Samir Halder Page 3 . Also performance can be understood as the difference in behavior of one group of people in a particular manner as compared to other groups of people. is sustained. direct and maintain human behavior toward attaining the goals (Peter Ebong Ajang. 2011). is directed. “Organization goals are desired states of affairs or preferred results that organizations attempts to realize and achieve (Ryszard Barnat. However. It can also be defined as a set of processes that arose. 2005). Organizations: process. Page 448) Organizational Goals Organizations goals are those ends for which the organization seeks to accompanies by its operational and existence. Donnelly. and is stopped and what kind of subjective reaction is present in the organization while all this is going on.”(Gibson. structure. (Ivancevick. Performance Performance can be understood as the act of performing or doing something differently. Jones (1995) argues that “Motivation is concerned with how behavior gets started. Page 214) Employee Satisfaction Employee satisfaction refers to the positive or negative aspect of employee’s attitude toward the jobs.

“Therefore motivation is the force within an individual that account for the level. and Kreitner (1995) all cited in Linder (1998. The second part consists of the alternative choice that an individual make and post behavior. Buford. “the psychological process that gives behavior purpose and direction.” According to Halepota (2005.” On the other hand. Halepota further proposed that the concept of the motivation is wide. commonly responds like “it’s what derives us” or “it’s what make us do the things we do”.Thesis Synopsis University of Tartu Efficiency Efficiency can be understood as the ratio of the input and the output of any system. page 1) had suggest that motivation can be defined in a variety of different ways. a predisposition to behave in a purposive manner to achieve specific unmet needs. Bedeian & Linder (1995). By Samir Halder Page 4 . where the first part consists of the arousal which deals in energy behind the individual actions.” However. It also helps to analysis the ability of the organization to produce maximum output by minimum input. page 16) motivation is “a person active participation and commitment to achieve the prescribed results. depending on the person you ask. Higgins (1994).” (Peter. Literature Review Motivation Greenberg and Baron (2000. 2011) Antomini (1999. “the amount of effort that people are willing to put in their work depend s on the degree to which they feel their motivational needs will be satisfied. page 3) states motivation as. page 29) defines motivation as. direction and persistence of effort expended at work. page 190). It can be used to analysis the waste of the resources within a process. an unsatisfied need and the will to achieve. Most of the time if you ask to any person about motivation. Young (2000. And the last part consists of how long the person has to maintain the behavior to persist at attempting to meet their goals. respectively. motivation can be divided into three parts.

strength etc. However. mostly formed while achieving common purpose as a group or team. job satisfaction. On the other hands. Social motivators originate when an individual interact with people. pay increase. Theorists of work motivation distinguish between intrinsic and extrinsic and social motivators. However. acknowledgement from employers/supervisors at work. belief. There is no universally acceptable theory of motivation By Samir Halder Page 5 . bonuses and other rewards. 2008). ideal self identifies the desire of an individual which is difference from their actual self. It is been defined that intrinsic motivators is more of psychological in nature. Social motivators are mostly psychological in nature (Bratton. personal development. extrinsic motivators are beyond individual‘s control and they are tangible in nature i. Intrinsic motivators are concerns to the individual and originates from the nature of the job that one performs i. a separation has to be created to explain the different types of motivators. Moreover the difference between ideal self and actual self can be regarded as needs (Rollinson. 2007). Intrinsic Motivators Ideal Self Extrinsic Motivators Need and Expectation at work Social motivators Behavior Actual Self Motivation Process (Adapted from Rollinson. Every individual has a self-identity which consists of abilities.e.Thesis Synopsis University of Tartu Motivation process is guided by individual’s perception of ideal self and ideal self.e. feelings. 2008: 197) Influencing the behavior of employees can be possible if we understand the process of motivation and what motivates them.

Traylor believed that if management transforms ideas into practice.) at work (Mayo. This experiment suggests that the employee’s surrounding environment and their relation with each other is one of the important factor that increase the performance at work. Also he believed that it is the best practice by which employee should take into consideration for accomplish the task in most efficient as possible. love etc. He was mostly interested in the areas of planning and performances. layout etc. there are some popular motivation theories which aim in motivating the employees in workplace. work would be more simple and satisfying for the employees. 1933).Thesis Synopsis University of Tartu within the workplace due to complexity in nature. A series of experiments at Hawthorne plant in 1930s. which has the objective to provide greater control to the management over the labor process by exchanging work/job for rewards. However. Hawthorne experiments focused on four key areas: lighting. the employee needs to work more by most productive and efficient way as possible. layout of the rooms and social relations at work. employee’s perception about the supervisors. Mayo’s contribution on Hawthorne experiments leads to interest in human behavior. named Hawthorne Experiments had proved the importance of people in the organization.) and also social relations played more important role than surrounding environment conditions (furniture. the ideas of Traylor are challenged by criticism on workplace where there are heavy pressures on employees. On the other hand. which leads to the creation of Human Relations approach. By Samir Halder Page 6 . The summary of the experiments was people’s satisfaction at work mostly depends on the social relations with other (friends. According to Traylor management plays superior to employees and argues that management should play an important role as a brain of the organization. Contribution in Theory of Motivation Theory of motivation can be tracked by the ideas of Taylor (1911) who had contributed and came up with the principles of Scientific Management. however. He further suggested that instruction and other feedback are to be provided to the employee to improve the process of work. Also he further suggested that to achieve more.

food. The next or the top level is self-actualization needs.e. order etc. Maslow argues that the first two basic levels of intrinsic motivators can be satisfied by increasing incomes. Alderfer’s ECG (Existence.e. the second level consists of safety needs i. After the first level is satisfied. The following are Content Theories: • • • • Maslow’s Hierarchy of Needs. 1943). Relatedness and Growth) Theory. friends. self-respect etc. specific needs and explore the situations where these impact the behavior. where the employees are in there full potential (Maslow.e. The theories of motivation aim to motivate the workforce of the organization. Herzberg’s two factors theory. shelter etc. sense of belonging etc. It states that employees will be better motivated if they form friendship or groups at workplace. The basic or first level is psychological needs i. security. The theories of motivation can be further grouped into two categories: Content theories of Motivation and Process theories of Motivation. The next level consists of esteem needs where the ego has to be satisfied by recognition. McGregor’s Theory X and Theory Y Maslow’s Hierarchy of Needs According to Maslow people are motivated by built in intrinsic motivators that are arranged in hierarchical order. Maslow also states that one level must be satisfied before the need for the next level emerges.Thesis Synopsis University of Tartu Theories of Motivation Motivation is one of the main concerns of the HRM department in organizations. water. The next level consists of the social needs i. Content Theories of Motivation Content Theories of Motivation aims on individual’s goals. By Samir Halder Page 7 .

(Buchanan and Huczynski. By Samir Halder Page 8 . self-managing teams. as a result. Relatedness needs consists of Maslow’s social and esteem needs and Growth needs consists of Maslow’s self-actualization needs. total quality management (TQM) etc.Thesis Synopsis University of Tartu Maslow’s Hierarchy of Need Self-actualization needs Esteem needs Social needs Safety needs Psychological needs Maslow’s Theory of motivation has been criticized for being broad and vague. 2004) Alderfer’s ECG Theory Maslow’s theory of motivation has been criticized. the theory mostly applies to social and psychological behavior rather than organizational behavior.e. 1976). also. Maslow’s theory remains influential and relevant for management studies and behavior of employees. however they can be categorized into two needs: deficiency and growth needs (Wahba and Bridwell. Critics argues that its impossible to predict human behavior as a result motivators cannot be categorized. Relatedness and Growth or ECG Theory. recently in researches it had been proved that there is no evidence that proved that human needs can be categorized into five levels in hierarchal order. Existence needs considers Maslow’s psychological and safety needs. Moreover. Apart from critics. Where. Business Process Reengineering (BEP). Alderfer (1969) had argued that Maslow’s theory of motivation can be modified to overcome the critics and can be classified into three needs: Existence. as this theory is the root of many management practices i.

It is been a mystery that Alderfer’s ECG Theory is applicable to the workplace or organizations or individual as this theory is not tested empirically beyond its own efforts. if these factors are absent. these employees are not much interested in content of job. where. As a result.) emerge on a continuum. One importance of hypothesis in ERG theory is the frustration regression hypothesis. proposed two factors: Hygiene and motivator factors for motivation. Hygiene factors are extrinsic and they determine the environment of the workplace. job security etc. Alderfer suggest the increase of importance of other individual need can cause by the failure to satisfy a particular level of need. However. 1996). they lead to determine whether the employees are satisfied or they are dissatisfied at the workplace (McLean et al. Herzberg’s motivation theory had also been criticized as being confusing. Alderfer believes that it is not necessary to satisfy one level of needs before there is an emergence for the other need. status. Also he suggested that different needs can emerge simultaneously as the complex nature of the individual. development. The other set of criticism is the outcome of the experiment influenced by the good or bad events. he doesn’t believe in the nature of hierarchy of needs according to importance as compared to Maslow’s Theory of need. By Samir Halder Page 9 . Hygienic factors doesn’t provide job satisfaction. recognition.Thesis Synopsis University of Tartu However. however. absent of motivational factors and present of hygienic factors caused neither satisfaction nor dissatisfaction but simply no satisfaction. One set of criticism is that the Herzberg motivation theory is not applied to unskilled/manual labor where work is repetitive and dull and apart from engineers or accountants who take an active role in research. Absent of hygienic factors caused dissatisfaction and when motivational factors are present it provides satisfaction. Herzberg’s Two Factors Theory Herzberg (1966) based on his own idea and study conducted on many accountants and engineers.) which are associated with work. employees are not necessarily dissatisfied but they are no satisfaction (Rollinson. acknowledgement etc. rather they only produce good working conditions. where he asked them about the factors that felt them good or bad at workplace. 2008). motivational factors are intrinsic and thus they are different from individual to individual (e.g. On the other hand. Absence of these factors at work results unsatisfactory and when they are present then it results satisfactory. When these factors (condition of the workplace.

Expectancy Theory Vroom (1964) and Porter and Lawler (1968) had contributed to Expectancy Theories where Vroom had made a set of assumptions and claimed that the forces of motivation can be calculated if the values are known• Expectancy – it perceive that there is a connection between performance and effort e. if an employee work hare. McGregor also claims that Theory Y represents set of assumptions of employees who are motivated for growth and contributing to organizational goals.Thesis Synopsis University of Tartu McGregor’s Theory X and Theory Y McGregor was motivated by Maslow’s need theory to generate his ideas on motivating of employees by two set assumptions (Theory X and Theory Y) suggests that the manager’s way of managing depends on their opinion about the people.g. His aim of study highlighted the management’s stereotypical views rather providing empirical evidences. On the other hand. Theory X represents set of assumptions of the employees who are motivated to satisfy only basic needs but not interested to contribute to organizational needs. punishments and control. Process Theory of Motivation Goals are one of the important criteria in Process Theory of Motivation. McGregor argues that when certain situation occur when the staff has to change the behavior to fit the needs. By Samir Halder Page 10 . Equity Theory and Goal setting Theory. redesigning work design and job tasks etc. Further these theories can be sub divided into three theories: Expectancy Theory. However. this theories concentrate on the choices that person makes to achieve their goals. This set of assumptions stated that it’s the management’s responsibility to provide employee development and growth by providing healthy work environment by offering training and development. According to McGregor. can be achieved through rewards. he will be promoted. It also suggests that employees only work for money and they prefer little work and are unreliable.

it will satisfy his self-actualization needs. if an employee is acknowledged by the management. however. other benefits etc. employee’s performances is often evaluated and compared with other.g.g.g. On the other hand. if a person want to find hoe fairly he is getting paid. however. forces of motivation alone cannot determine performance but also other values are to be considered. Despite of the simplicity in nature of the equity theory. it will result in value related outcome e. Porter and Lawler also proposed that ‘value of reward’ is the value of a person. he will compare his salary with his other colleagues. Porter and Lawler had added and took it in bit further where they had introduced ‘value of reward’ with the equations.g.Thesis Synopsis University of Tartu • • Instrumentality – it perceive that if there is a performance related outcome. However. time.g. Equity Theory Adam (1965) had proposed equity theory. effort etc. If they think that input (e. Adam also suggested that the employees place values for input and output. They also argued that performance is shaped by the person’s perception of their role at workplace and their personality and performances is not the result of forces of motivation. as to avoid dissatisfaction and conflicts among the employees. Literature provides various calculations and formulas for the calculating of the forces of motivation if these values are known. Valance – expected worth of outcome e. Hence. these theories in practical consumes a lot of time and it’s not possible for the management for calculating the numbers. where he assumes that individual’s perception of how fairly they are treated when compared to other will determine their motivation e. Adam argues that person can only be satisfied at workplace only if they believe that others are sharing the same conditions. Today it’s irrelevant for HRM to practice these theories. By Samir Halder Page 11 . places on the outcome of a performance and every person will value the outcome differently and they are mostly influenced by previous work experiences. salary.) exceed output (e. if an employee will increase the quality of work. it is also tested and proved that it is very useful for the organization to understand the employee’s satisfactions and dissatisfactions. he will receive bonus.) they will by dissatisfied and will be motivated to change the situation by raise in pay or working less. This theory is also very useful for HR practitioners in the areas of designing job and reward system. it’s useful to know the formulas that shape the forces of motivation.

Also. the more productive the performance is.Thesis Synopsis University of Tartu Goal Setting Theory Locke (1968) assumes that employee’s goals are determined by their behavior and decisions at work. Also. Employees can be motivated by allowing employees to participate in goal setting and it result sense of involvement in the task to employees. this study is considered only with Goal Setting Theory apart from other theories. On the other hand. It’s obvious that there is no universal accepted theory to motivate employees also no single motivation theory can contribute to the behavior of the employees at work. However. will result more satisfaction when they achieve them. an individual will perform better if the outcome of the task is clearly explained and known to the individual. He further argues that if employees will achieve their goals they will be satisfied and the more difficult these goals are to achieve. high performance can be achieved if the outcomes of the goals are clear and explicates i. goals are to set with employees.e. It’s always helpful to consider more than one motivation theories in workplace to motivate employees as every individual are different from one another and they will be motivated differently. in addition it’s argues that effective feedback will lead to higher performances among employees. Also. this study will concentrate only to find out the importance/need of goal setting theory within the service sector. Studies showed that the greater the employee involvement in goal setting. that it should follow top down approach. By Samir Halder Page 12 .

“Organization Behaviors”. (1964) Work and Motivation. Cost Engineering.24xls. 47. Vol. Harlow: Pearson Education Ltd. (1969) An empirical test of a new theory of human needs. and Huczynski. Robbins. In L. No 6. (2005) “Motivational Theories and their application in construction”. Basingstoke: Palgrave McMillan. Bunchanan. Organizational Behavior and Human Performance. Ed. D(2008) Organization Behavior and Analysis: An Integrated Approach. (2004) Organizational Behavior: An Introduction Text.H. A. : 678-730. By Samir Halder Page 13 . Prentice Hall. “What motivates middle managers”? Industrial Management.W. Assessing the role of work motivation on employee performance. Maslow. D. Greenberg J &Baron A. Vol. JS (1965) Inequality in social exchange. New York: Macmillan. Advances in Experimental Social Psychology.155-190. pp. 3 pp. Alderfer. F. 188-215 Stephen P. Vroom.P. Antomioni. C. ed..5. Ed. 14-35. Harlow Prentice Hall. D. A. 2011. Seema Sanghi 2009. F. H. Nov.140-175. Cleveland.95-370 Mayo. 13th Ed. (1999). Organizational Behavior and Human Performance. (1966) Work and Nature of Man.A. pp. Timothy A. Ryszard Barnat. (2007) Work and Organization Behavior. Berkowitz. (1943) A theory of Motivation. New York: Academic Press. (1968) Toward a theory of task motivation and incentives.Thesis Synopsis University of Tartu References • • • • • • • • • • • • • • • • • Rollinson. No.R (2003) “Behavior in Organizations”. Vol. 41. 2005. E. V. Pages. New York: John Wiley. Bratton. 4. (1933) The Human Problems of Industrial Civilization.H. J. (1911) Scientific Management. pp.introduction-to-management. Psychological Review. E. 8.Dec. Herzberg. pp. Organizations Goals: Assessed Online on Dec 2011 at Helepota. Adams. USA: World Locke.. Taylor.A. New York: Wiley. Judge. 27-30 Peter Ebong Ajang. OH.