To study on employee motivation and its impact on performance

Abstract

The motivational level of an employee is the most significant predictor of the success of an organisation and on the performance level of an employee as well. As businesses continue to compete in a highly competitive and challenging market, businesses focus their initiatives on increasing productivity levels (output), increasing employee engagement, and attempting to reduce turnover rates. However, motivation levels among employees continue to be low, which are affecting all employee performance levels negatively. Therefore this research aims to understand the relationship between employee motivation and the performance level of an employee and what organisations can do to implement successful motivation strategies that will increase the productivity/growth of an employee and organisation over time.To analyse the link between employee motivation, performance and organisation's ability to use motivational strategies effectively, the research was conducted using a quantitative design which was based entirely on data sourced from secondary means (i.e., academic journals, books, research papers, industry reports). In addition to analysing the aforementioned psychological and behavioural motivation factors that were used to evaluate employee performance, the research also evaluated the four key (main) motivational theories (i.e., Maslow's Hierarchy of Needs, Herzberg's Two-Factor Theory, McClelland's Need Theory, Self-Determination Theory) to assist organisations in understanding the psychological and behavioural motivation factors affecting employee performance and productivity. The theoretical concepts from each of the four motivational theory methodologies are integrated with real-world organisational approaches and practices so that businesses will be able to evaluate how employee motivation impacts how efficiently employees perform and how committed they are to an organisation, and how well they perform in their job.

The results indicate that both intrinsic factors (such as recognition, achievement, responsibility, and opportunities for personal development) and extrinsic factors (such as pay, incentive programs, job security, and employee benefits) are very influential in impacting employees' productivity levels as well as their job satisfaction levels. Well-designed motivation programs will provide an organization with higher levels of employee engagement, lower levels of absenteeism, and an overall increase in the organization's performance. Conversely, a lack of motivation among employees will result in lower morale, lesser quality of work performed by those employees, and increased turnover of employees.

The research shows that motivation is more than a basic function of human resources; it is also critical to an organization's long-term success. An organization can create sustainable growth and maintain its competitive edge by having a balanced motivational program that contains both monetary and non-monetary rewards.