Evaluate The Effect Of Motivation On Employees Productivity Business Essay Example

the organization's longevity, and the significance of their role obligates the organization to motivate them in order to enhance their efficiency. Motivation is the process that determines an individual's stamina, direction, and persistence in their efforts to achieve goals. Motivation is the driving force behind behavior and the source of all actions. Hence, motivation is directly linked to productivity.

Productivity is the evaluation of employees' efficiency in performing job duties, which is determined by their effectiveness and significance. Moreover, motivation can be described as the willingness to exert a specific level of effort. In contemporary theories, motivation is believed to arise from individuals' needs, values, goals, intentions, and expectations. Since motivation originates internally, it becomes managers' responsibility to foster and direct employees' existing motivation. Individuals are regarded as one of the most valuable assets in business.

They possess endless potential for contributing to the achievement of goals. Their combined productivity drives the company's operations and influences overall performance, resulting in a compelling corporate culture. The managerial concern lies in the value of human resource productivity.

Motivating employees is essential and has been a common practice in both small and large companies for an extended period. It promotes mutual growth in the employer-employee relationship and improves productivity. Just as machines need fuel and operators, individuals also need motivation.

Ensuring that employees are always in their best working condition is essential for achieving maximum productivity. The issue of motivating employees can be resolved by utilizing two methods: extrinsic motivation, which includes tangible rewards, and intrinsic motivation, which involves intangible rewards. To achieve the desired result, it is crucial to have a balanced combination of these motivational tools.

Organizations often use extrinsic motivation

to enhance productivity by offering an appealing compensation and benefits package, which typically includes salary, health and personal insurance coverage, as well as bonuses.

In addition to quarterly bonuses, performance bonuses, gift cheques, and paid holidays are also given as forms of public recognition. Intrinsic motivation is a straightforward and useful method to bring out the potential in each employee. This can be achieved by providing effective systems for promotion, training and development, and acknowledgment.

Praising employees for their achievements is crucial for increasing motivation and job satisfaction. When workers feel a connection to their work, especially when it aligns with their interests, they become more motivated. This increased motivation leads to higher levels of productivity and job satisfaction. In contrast, unmotivated workers typically perform poorly and have lower job satisfaction. Therefore, consistently providing both external and internal rewards is essential to sustain consistent performance.

Extensive research has been conducted on the correlation between intrinsic and extrinsic motivation and productivity. Some studies indicate that employees perform well when they receive acknowledgment and promotion, driven by self-recognition. However, other researchers argue that although intrinsic motivation is significant, it may not fully satisfy all employee desires. In such instances, extrinsic motivation plays a vital role in boosting morale and productivity. This study aims to identify positive factors impacting productivity and determine their association with either intrinsic or extrinsic motivation. Moreover, we will explore the most effective approaches to implement these factors in order to motivate employees and achieve productivity goals in the 21st century.

Problem Statement

The aim of this study is to investigate the impact of motivation on employee productivity, particularly in relation to achieving optimal business

outcomes. Furthermore, the study seeks to determine whether intrinsic or extrinsic factors have a greater influence on motivating employees for high productivity.

Literature Review

Employee engagement is crucial for organizational success, and motivation plays a significant role in enhancing employees' productivity across different situations. According to Bob's research, boosting morale and providing advancement opportunities through motivation are important factors. The effects of monetary rewards and bonuses on employee engagement should also be taken into account. Several studies have examined how motivation affects productivity, knowledge sharing, and related aspects. Researchers argue that by fostering dedication to a cause (Thompson ; Bunderson, 2003), motivation improves productivity in various tasks, jobs, and additional work behaviors (Bing ; Burroughs, 2001; Brewer ; Selden, 1998; Grant et al., 2007; Korsgaard,Meglino,; Lester ,1997 ; Naff & Crum ,1999 ; Rioux & Penner ,2001 ; Ilies,R.).

, Scott, B.A., & Judge, T.A.

In 2006, Scott and Judge conducted a study on motivation theories and their impact on employee motivation. The study focused on various aspects such as measures of motivation, principles of motivation, ways to make a workplace more exciting, and how to motivate employees to perform better. The research also highlighted the importance of strategic performance and the disconnect between salary and motivation. Additionally, the study explored effective ways to reward employees and how motivation theories can be applied in practice. Self-theories and employee motivation were also discussed, along with the unsolved problem or untapped resource of worker motivation. The literature review of numerous studies in this field suggests that further research is needed in order to understand the relationship between motivation and productivity.

This will help directors and leaders understand

what employees want from employers for them to perform at their best. Starting with experiential research, it has been found that motivation can be divided into two factors: extrinsic motivation (expected organizational rewards and mutual benefits) and intrinsic motivation (knowledge self-efficacy and enjoyment in helping others) (Hsiu-Fen Lin, 2006). Extrinsic motivation, such as monetary incentives or praise, has been found to significantly impact employee contribution (R. Fenwick and J. Olson, 1986). On the other hand, increased intrinsic motivation has been associated with employees' willingness to maintain a positive attitude, leading to increased learning and willingness to participate in voluntary knowledge sharing (M. Osterloh and B. n.d.).

According to Frey (2000), motive factors are believed to significantly influence cognition sharing behaviours, as argued by several other researchers (E.L. Deci and R. Flaste, 1995; Hsiu-Fen Lin, 2006). This study aims to examine the impact of intrinsic and extrinsic motive factors on employee productivity. Elton Mayo's Hawthorne Studies also found a positive correlation between motivation and employee productivity. Mayo conducted an experiment to study how physical and environmental conditions affect productivity, which later expanded to include psychological factors. After applying these motivational factors, Mayo observed increased productivity and a sense of importance among employees (Mayo, 1978). One important factor that may influence the relationship between motivation and productivity is recognition. When employees' needs for self-esteem, appreciation, and safety are met, their productive achievements can lead to success.

(Wright, 2001). According to Bob Urichuck, motivating employees is not as easy as it may seem. There is a specific list of motivational factors that can be utilized to increase employee productivity. In order to achieve this, it is essential to systematically utilize

these factors. Recognition is considered the most effective motivational factor in this list.

If you want to increase employee productivity, you should give them the opportunity to be acknowledged publicly. This can be achieved by organizing meetings, events, partner dinners, staff acknowledgment awards, and a closing party. These initiatives help to create and maintain a progressive environment within the organization. Acknowledgment also has a positive impact on employees' self-esteem, self-assurance, and ego regard. Moreover, it enhances their willingness and ability to perform well (Urichuck, 2008). Recognition can be seen as an extrinsic motivator that has been proven to significantly affect worker performance (R. Fenwick and J.).

According to Olson (1986), Mayo also emphasized the importance of recognition, security, and belongingness in increasing employee productivity, rather than solely focusing on the physical conditions of the workplace. Mayo (1978) argued that organizations should make employees feel valued and recognize their presence in the organization. Additionally, an employee's sense of belonging in the workplace plays a significant role in recognizing productivity. Furthermore, Hackmam and Oldham (1980) suggest that when employees have autonomy, receive feedback on their performance, and are assigned meaningful and diverse tasks requiring expertise, they are more likely to experience happiness and intrinsic motivation to perform well. In German law, self-control is another means of employee ownership or granting employees full independence in their work. The distinction between employees and freelance workers has important implications for employment and labor laws and social security benefits (Jens Kirchner and Eva Mittelhamm, 2010). Furthermore, intrinsic motivation has been linked to employee willingness to contribute positively to productivity (M. Osterloh and B.).

According to Frey (2000) and E.L. Deci and R. Flaste (1995),

recognition can enhance employees' self-esteem, self-assurance, and ego regard. This, in turn, improves their willingness and ability to perform well (Urichuck, 2008).

George (1991) suggests that job security contributes to employees' willingness to work. Furthermore, Herzberg (1966) states that challenging occupations can have an impact on productivity, with motivator factors including responsible work, independence, and satisfaction from completing challenging tasks. The description of a challenging work environment as overwhelming, ambiguous, and politicized is influenced by the strategic decision-making literature, which emphasizes limited rationality, avoidable errors, and politics and power (Eisenhardt and Zbaracki, 1992). The benefits of knowledge accumulation in challenging work environments depend on the extent to which teams are able to effectively utilize this knowledge (Haas, 2006).

Martine R. Haas (2006) argues that the ability to effectively utilize collective knowledge in challenging work environments adds complexity to the already difficult task of capturing the value of knowledge gathering. Intrinsic and extrinsic motivational factors, such as compensation, rewards, and performance assessments, can significantly impact productivity. Therefore, compensation is an important factor in increasing employee productivity.

It is evident that by offering employees financial benefits based on their performance and achievement of goals, they will perform well to meet organizational objectives. According to Hunter (2010), Miller argues that only productivity-based incentives can truly achieve the goals of academic anesthesia departments and medical centers and improve the relationship between the anesthesia module and other specialties. These incentives can reduce salary expenses, increase individual module clinical productivity and efficiency, and enhance cost-effectiveness through the accuracy and completeness of anesthesia records (Miller, 2005). Rewards In the early 20th century, scholars and practitioners believed that external controls, incentives, penalties, and rewards

were necessary to motivate continuity, performance, and productivity (Heath, 1999; Steers, Mowday, & Shapiro, 2004).

Hsiu-Fen Lin (2006) stated that expected organizational wages did not have a significant impact on employee attitudes and behavioral intentions regarding knowledge sharing. However, it has been shown that wages significantly influence worker engagement (Fenwick & Olson, 1986). Wages or benefits are earned when performing an activity (Deci & Ryan).

Ryan (1985) stated that the main goals of extrinsically motivated behaviors are to obtain organizational rewards or mutual benefits (Vallerand, Deci, and Ryan, 2000; Kowal and Fortier, 1999). Organizational rewards are effective in motivating individuals to engage in desired behaviors (Bartol and Fortier, 1999).

Organizational rewards, as discussed by K.M. Bartol and E.A. Locke (2000) and T. Davenport and L., can consist of both monetary incentives, such as increased wages and bonuses, as well as non-monetary benefits like promotions and job security.

According to Prusak (1998), if employees believe they can receive organizational rewards by sharing their knowledge, they will develop more positive attitudes and intentions towards knowledge sharing (Hsiu-Fen Lin, 2006). Performance Appraisal, also known as a performance assessment, employee evaluation, performance review, or career development discussion, is a method used to evaluate an employee's job performance (usually in terms of quality, quantity, cost, and time) by their respective manager or supervisor. With increased competitive pressures, employers have become more interested in distinguishing employee performance levels, addressing poor performance, and using performance appraisals as constructively as possible (Terrence H. Murphy et al., 2004). George Terry defines performance appraisal as the periodic evaluation of an employee's performance measured against the stated or presumed requirements of the job (George Terry, Stephen G.).

According to Franklin (2003),

one way to evaluate staff performance is through a system of performance assessment. It is important for members of the organization to know exactly what is expected of them and the criteria by which their performance will be measured. Ayaz Khan adds that an effective assessment strategy can identify an individual's strengths and weaknesses and indicate how these strengths can be best utilized while overcoming weaknesses (Laurie J. Mullins, 1996). Additionally, intrinsic and extrinsic motivational factors can impact employee productivity. By considering these factors, new approaches and strategies can be implemented to benefit both the organization and the well-being of the employees. A survey comparing employee and supervisor rankings on motivational factors influencing productivity found that supervisors prioritize factors such as high rewards, job security, promotion opportunities, good working conditions, interesting work, personal loyalty of supervisor, tactful discipline, recognition of work, assistance with personal issues, and a sense of inclusion.

According to the employees, the factors ranked as important are: having a full grasp of the work done, feeling included, receiving help with personal tasks, job security, high rewards, interesting work, promotion within the organization, personal loyalty from supervisors, good working conditions, and tactful discipline. The discrepancy between employee and supervisor perspectives is evident in the top three motivating factors for employees, which are the least important to their supervisors. These top three factors indicate that employees want recognition in their workplace. Employee motivation involves constructive support that influences productivity. Positive support is what enhances our self-esteem.

Our self-pride is the perception we have of ourselves, whether it is influenced by our own beliefs or the beliefs of others. When we have a positive self-perception and believe

that others also perceive us positively, we tend to perform better. Employee motivation originates from within, as people's actions align with their conceptual self-image. Therefore, it is crucial to support individuals in building their self-pride, as it forms the basis for employee productivity through motivation.

(Urichuck 2008.) Multiple productivity studies and case studies suggest that increasing worker motivation and satisfaction can lead to higher worker output. Modern, innovative managers are now using human resource management techniques that surpass mere monetary incentives to achieve productivity gains. This study explores how motivational factors can enhance worker output, based on motivational theories.

According to Maslow, organizations can improve productivity and advancement by motivating employees through five needs: physiological needs, security needs, belongingness needs, esteem needs, and self-realization. The motivation and productivity of employees depend on effective management of these issues, such as providing a conducive work environment, to achieve organizational goals. To achieve high productivity, it is important to offer employees opportunities for personal growth, achievement, responsibility, recognition, and rewards. In the 1950s, Frederick Herzberg, a distinguished professor of Management at the University of Utah and behavioral theorist, conducted studies on worker motivation.

The Motivation-Hygiene theory of worker satisfaction and dissatisfaction was developed by Abraham Maslow. According to this theory, hygiene factors such as salary, fringe benefits, and working conditions can prevent dissatisfaction but do not motivate workers. On the other hand, motivator factors such as achievement, recognition, responsibility, and advancement increase satisfaction and motivate people to put in more effort and perform better at work. Herzberg and other behavioral theorists were influenced by Maslow's writings on what human beings seek in life and his development of the Needs-Hierarchy concept. Among

the various theories of work motivation, Herzberg's motivator-hygiene theory from 1966 has been particularly influential in recent decades. Essentially, this theory categorizes motivating factors into two groups: motivator factors related to the work itself and hygiene factors related to the surrounding context.

There are still unresolved questions about the need-achievement theory of motivation, and not all research has been supportive. This theory is considered to be highly scientifically valid and useful in its application to the world of work. According to Maslow, most of our understanding of human motivation comes from clinical psychologists who treat patients. He explains that these patients are both a source of error and useful information because they represent a poor sample of the population. The motivational experiences of neurotic patients should not be considered a model for healthy motivation.

According to this psychologist, it is important for any theory of motive to encompass the abilities and traits of mentally and physically well adult men. Additionally, he emphasizes the significance of studying both unhealthy individuals and those who are in good health. Nonetheless, Dr. Maslow's theory lacks substantial research evidence and is considered to have low scientific validity and limited practicality.

The theory remains popular among directors and executives who recognize the importance of self-actualization in the workplace. One of the biggest challenges facing American businesses today is low employee productivity. While America's industrial gains have historically been high, our productivity growth has recently declined, especially when compared to other industrial competitors. The decrease in employee motivation and commitment to high-quality work performance may be a significant factor contributing to this productivity shortfall. Productivity is defined as using resources efficiently and effectively, minimizing waste

and effort in order to achieve results.

Many companies cannot afford a decrease in productivity, especially in the United States with its high standard of living. Increased competition from foreign markets has already led to significant problems and failures for many businesses. According to Maslow, motivation relies on individuals responding and behaving according to various personal circumstances. People are motivated by their needs and sometimes by the challenges they face in their work environment.

The motivation to excel in one's field and the values placed on work often drive people to undertake certain tasks. The actions and behaviors of employees often reflect the culture they are a part of (Ryan and Deci, 2000). Motivation can manifest in various ways, such as power, curiosity, expectancy, courage, and confidence, which in turn can enhance performance, consistency, and creativity. Consistent application of motivational approaches can lead individuals to achieve great success. Motivation is especially valuable in the workplace as it can bring out the best in employees. Additionally, utilizing motivation can be advantageous in fostering positive interaction among employees and creating a conducive working environment.

The long-term use of this achievement and its political orientation ultimately has a positive impact on achieving high job performance. It is important to first meet satisfaction in order to understand the improvement in one's job. Satisfaction involves meeting the individual's needs, and as an employee, the organization should plan various strategies. Employee performance is influenced by both the set goal to achieve the desired outcome and the level of effort. Satisfaction stimulates interesting thoughts regarding employee motivation and job skill engagement.

The satisfaction of employees can lead to a happy temperament, which is desired by most

companies and can result in increased productivity. Employee dedication involves their attempt to maintain control of their occupation within the organization. Job satisfaction and performance can be achieved through effective job design and employee engagement, as well as aligning the employee's educational background with the nature of their work. This can lead to improved execution of their specific job.

Justification and Likely Benefits

Employees play a critical role in an organization's development. However, many employees are currently unmotivated, which negatively impacts productivity. This research is important for both employees and organizations as it will provide guidelines on how to address and manage employee motivation issues, resulting in increased productivity.

Research Aims

• The research objectives of this study are:
• To identify the factors that impact employee motivation.
• To examine the relationship between motivation and employee productivity.
• To determine the extent to which motivation affects employee productivity.

Plan of Work and Methodology

The plan of work provides the basic structure for the research project. The methodology will outline the specific steps and procedures that will be followed during the research process.

Type of Research

The type of research being conducted is a causal research, specifically examining the impact of motivation on employee productivity. This research uses a qualitative approach to establish the relationship between motivation and employee productivity.

Data Collection

The data collection plan for this research involves the use of both primary and secondary data. Primary data will be collected through questionnaires, while secondary data will be gathered from relevant published sources such as books and academic journals from both local and foreign universities.

Sampling Unit of measurement

The methodological attacks to garnering informations include obtaining

it from various concern proprietors, executive directors, and employees in different organisations in the metropolis. This diverse group allows for testing hypotheses related to motivation and employee productivity.

Sampling Size

The proposed sample size is 150 respondents, but 50 were dropped due to false or incomplete information. Therefore, data were collected from 100 employees to meet the research objectives.

Sampling Method

The sampling method used for this research is Non Probability trying.

In my chosen method of Convenience sampling, I collect information from convenient locations.

Location and Facilities

This research will be conducted in Karachi, Pakistan in the year 2010. The Federal Urdu University, Gulshan campus in Karachi provides facilities for the research work. I have access to Published Articles, websites, L.E.J digital Lab (University of Karachi), Maulvi Abdul Haq Library (Federal Urdu University of Science and Technology, Gulshan Campus, Karachi), and also secondary data from Karachi University.

Hypothesis

Hypothesis testing is an important part of research and a valuable application of statistics. It involves making a statement about the result of an experiment and then testing it.

So, in order to conduct my research, I have made two statements and performed trials based on primary data. The primary data that I have collected through study has Cronbach's Alpha (±) = 0.777, indicating that my data is 78% reliable.

• Holmium: High motivation leads to low productivity.
• H1: High motivation leads to high productivity.

Scope of Study

The main focus of this study is to determine or highlight the impact of major motivational factors on employee productivity in organizations - whether the factor with more influence is related to intrinsic or extrinsic motivation. It also aims

to evaluate the significance of motivation from the perspective of employees to perform well and be aware of its application in the organization. This proposed research is necessary to enhance employee performance, retain employees, and help companies establish a positive reputation. If a company's employees do not receive this motivation, the company could suffer significant financial losses, lose customers, or even go out of business.

On the other hand, if a company's employees are well trained and motivated by their employers, it could have great income potential, retain loyal clients, and gain a lot of market share. This study, which evaluates the effect of motivation on employee productivity, helps firms and organizations improve their motivation plans. This will open new dimensions for increasing employee productivity and enhancing organizational progress. It will also help reduce competition by understanding employees' needs and issues, such as:

1. How