Motivation Leads To The Performance Commerce Essay Example

employees by conducting interviews, tests, and selecting the most suitable candidate. However, this task has become challenging as it is no longer based solely on employee referrals.

(Sims, 2007). HRM faces a significant challenge in enrolling qualified candidates for the organization. The decision of whom to choose and whom to reject must be made without discrimination, as it impacts the future performance of the organization. HRM not only develops the training process but also oversees the management process for the organization. HRM is responsible for directing and guiding employees, ensuring that their tasks are completed effectively and on time. Additionally, HRM is accountable for compensation plans, including salaries and wages.

Rewards and salary increases are based on employee performance, which is evaluated by their public presentation. HR functions are crucial in all organizations, as they create an environment where employees can utilize their capabilities for both their own benefit and the organization's. (Armstrong, 2006). Additionally, HR offers guidance and assistance to management in effectively engaging employees. In multinational corporations, HR plays a vital role in establishing strong relationships between management and the workforce by implementing effective HR policies and practices.

Laurie (2005) defines motivation as the degree to which an individual wants and chooses to engage in specific behavior. It is the internal drive that fulfills their needs and desires.

Performance = function (ability x motivation)

According to Kreitner, motivation is essential for job performance, along with ability. Motivation includes skill level, knowledge about task completion, feelings and emotions, and external factors that can impact performance (Laurie, 2005).

• Motivation also includes a combination of skill level
• knowledge about how to complete the task
• feelings and emotions
• and external factors beyond the individual's control (Laurie,

2005).

The equation above emphasizes the importance of motivating employees to achieve organizational goals. Motivating others influences individuals towards goal accomplishment.

On the one hand, motivating oneself is about staying on track towards achieving a goal that has been set (Laurie, 2005). According to Lincoln, motivation is an internal force that can be either conscious or subconscious and guides behavior towards a particular objective. It can also be described as a personal quality characterized by being willing to put in significant effort into completing assigned tasks in order to meet organizational goals and fulfill individual needs.

According to Biswatjeet (2005), motivation in organizations is driven by diverse factors that enhance job performance. Each employee has unique needs and sets individual goals to meet those needs. When an employee's personal objectives align with the organization's goals, it becomes easier to effectively motivate them. Various methods are employed to address these individual needs and goals.

It is not easy to fit motivation into one approach because it can be categorized into two types. Firstly, individuals can motivate themselves by finding work that fulfills their needs. Secondly, people can be motivated by management through rewards and incentives to get the job done. This refers to a psychological reward system determined by the actions and behavior of individual managers (Laurie, 2005).

According to Armstrong (2006) and John (2009), intrinsic motives include duty, act of freedom, range to utilize of accomplishment, abilities, and disputing work and chances. These motives are intangible rewards that come from within, providing a feeling of pride and exhilaration when performing a task that satisfies personal needs and promotes growth.

Intrinsic wages, also known as non-financial wages, refer to rewards such

as job satisfaction, assignments, and employee empowerment. These types of rewards are more effective in motivating employees within an organization compared to financial rewards (Biswatjeet, 2005). Intrinsic rewards include gestures such as praise, salary increments, and promotions (Armstrong M.).

, 2006 ). Touchable rewards, such as salary and benefits, publicity, and security, are referred to. These rewards are determined by the organizational level rather than individual managers (Laurie, 2005).

The company offers temporary wages that are intended to meet their specific needs. These wages, also called financial rewards, include salary, bonus, and promotions. They are most effective when the organization is stable in a specific environment (Hamidi, 2010; Biswatjeet, 2005). Using performance measures alone as a means of motivating employees is not considered effective.

It is important for organizations to closely monitor motivational tools, as they may need to change over time. Initially, intrinsic motivation is essential, but after a certain period, the organization should incorporate extrinsic tools to motivate employees. Motivation can be built upon both intrinsic and extrinsic factors. To improve intrinsic motivation in a Multinational Corporation, evaluating appropriate measures and comparing how both intrinsic and extrinsic motivations enhance employee performance can lead to a competitive advantage.

Today, many organizations have embraced various theoretical models of motivation. As a result, managers now make decisions based on these different models or theories of motivation (Laurie, 2005). Maslow's theory focuses on defining human needs and desires, which must be fulfilled for satisfaction. Motivation also drives the fulfillment of these needs. Maslow's Hierarchy comprises a pyramid of five distinct human needs, including psychological, social, safety, esteem, and self-actualization needs. Maslow categorizes human needs into two levels: lower-level external needs and

higher-level needs (Maslow, n.d.).

According to Biswatjeet (2005), the rewards of achieving personal satisfaction are greater for individuals who strive to meet their higher internal demands. Maslow's hierarchy of needs begins with satisfying lower-level psychological needs, which are considered essential and fundamental.

This paragraph discusses various demands that employees have in the workplace. These demands include wage, work status, and benefits, which satisfy their basic psychological needs. The next level of demand is safety, which includes pensions, medical compensation, job stability, and organizational stability. Fulfilling these needs ensures the safety of employees. Another level of demand is social needs, which involve interaction with others, love, affection, and friendship. Managers support these needs by promoting teamwork. The second-to-last demand is esteem, which includes recognition from peers or coworkers, success, and appreciation.

The Self-actualization demand is the highest level of demand in the hierarchy and it involves personal growth and fulfillment. Individuals at higher levels of authority have more challenging job opportunities, making it easier for them to satisfy higher-level demands such as respect and self-actualization, rather than lower-level demands. (Hellriegel, 2007). Managers should ensure that meeting one employee's demand does not necessarily motivate all employees.

It is essential to keep in mind the concept of failure size, as it allows directors to easily create strategies that address the declining demand for growth (Ahmed & Gilkar, 2008). The Herzberg motivation theory, also referred to as the two-factor theory, is based on the distinction between motivational factors and hygiene factors. The theory suggests that factors leading to satisfaction are different from those causing dissatisfaction.

The theory of employee satisfaction varies from person to person, as each individual has different needs and demands. According

to Kondalkar (2000), if an employee's intrinsic needs are fulfilled, they will have a higher level of motivation. The hygiene factor prevents dissatisfaction, while factors such as motivation and growth contribute to job satisfaction and encourage employees to perform better (Laurie, 2005).

According to Saiyadain (2009), motivator factors are the internal factors that enable individuals to feel a sense of responsibility, interest, and accomplishment in their work, leading to personal growth. On the other hand, hygiene factors can cause dissatisfaction, such as low wages in an organization. Other factors that can contribute to dissatisfaction include status, job position, job compatibility, and workplace conditions. Herzberg suggests that eliminating dissatisfaction factors may result in job satisfaction and peace, but it does not necessarily lead to motivation. He refers to motivator factors as the ones that create job satisfaction.

According to Biswatjeet (2005), occupation enrichment involves incorporating elements such as individuality, fulfillment, feedback, and liberty. These accomplishments can help prevent demotivation. John also suggests that job enrichment entails allowing individuals to have self direction in their work and providing opportunities for planning and controlling tasks, which can motivate employees. In order to motivate employees, it is important for managers to consider hygiene factors before offering incentives, as employees who are dissatisfied cannot be motivated.

Directors must ensure a strong alignment between individuals' needs and their capacity to effectively execute a project (Laurie, 2005). The anticipated outcomes and rewards for accomplishing these goals are contingent upon the level of effort and performance exerted. Individuals' perceived expectations play a significant role in shaping their performance, serving as motivation towards achieving their objectives. For example, the aspiration for career advancement incentivizes individuals to enhance

their job performance, resulting in favorable outcomes such as being promoted. Vroom's theory offers a comprehensive elucidation of motivation.

Vroom's theory suggests that motivation is influenced by three variables: Valence, instrumentality, and anticipation. Valence pertains to an individual's inclination towards achieving positive or negative outcomes. Instrumentality refers to the belief that specific actions will result in desired outcomes. Anticipation involves perceiving a chance or driving force that propels one towards achieving a desired outcome (Coetsee, 2003).

Motivation refers to the cognitive process that drives an individual's behavior towards achieving perceived rewards (Spector, 2000). An employee's motivation is determined by their belief that their efforts will lead to desired outcomes. If employees do not have this belief, their performance will be negatively impacted. The alignment between the organization's goals and the efforts employees put in to achieve those goals is what leads to high performance and rewards. This also helps differentiate between organizational and employee motivation.

According to Bose (2004), various theories have been researched to identify important factors that motivate employees in the workplace. Factors such as sexual harassment, racism based on cultural groups, and controversial performance assessments can all influence employee performance and motivation. These issues are largely caused by mismanagement of human resources. It is suggested that employee performance should be measured using technology or by independent parties, as these factors not only motivate employees but also impact the organization's performance and capital.

The objective of placing these factors is to measure the importance and evaluate the motivation level in MNC's employees. The following factors will be used to measure motivation tools in an MNC's and also to measure performance accordingly.

• Performance

management is an organization essential tool that improves employee motivation and leads them to high performance. (Cokins, 2009)

Performance management helps employees within and for the organization. The manager ensures that effective performance measures will have a greater impact on overall performance. Performance management is a connection between employees and the organization that gives employees an opportunity to enhance their performance to satisfy organizational goals. (Charles, 2000).

Rather than simply monitoring employee performance, performance management allows directors to delegate tasks to employees and empower them to manage their own performance. It also facilitates continuous improvement and growth in performance. Activity-based management provides a clear understanding of the organization's processes, enabling the generation of activities at each level of the hierarchy. On the other hand, balanced scorecard measures performance from top to bottom, incorporating customer service, internal processes, innovation, and learning. Performance management, as defined by Armstrong and Baron, is a strategic and integrated approach that fosters sustained organizational success by enhancing the performance of individuals and teams while developing their capabilities. It consists of reviewing past performance and setting objectives for the future (McKenna & Beech).

The organization's wage system encompasses the policies, practices, and procedures for rewarding employees based on their achievements and performance. Reward systems are established

based on the organization's principles, policies, and procedures that provide and maintain the basic level of rewards such as pay benefits and other forms of compensation for employees (Armstrong, 2002). The reward system is crucial for achieving high levels of performance as it is considered a significant motivating factor that enhances motivation, job satisfaction, positive attitudes towards work, and commitment. Managers need to ensure a balance between employee compensation, benefits, and other external rewards in order to improve performance levels and achieve organizational goals.

(Armstrong, 2007) Managing employee motivation in the organization through a rewards system is considered the most important tool. This system helps define, evaluate, and reward employee performance, while also greatly enhancing actual performance and motivation (Ricky, 2011). Managers always value their clients by encouraging them to perform better, as this benefits both employees and the organization. It is crucial for every manager to promote employees' intrinsic need to learn from various sources.

The primary focus is on both learning and working as a team, also known as team learning. Prioritizing learning ensures that the necessary actions are taken in a given project. It is the responsibility of the manager to provide employees with the opportunity to learn from their knowledge by facilitating internal communication among them, fostering strong relationships. Companies incentivize this by offering rewards, such as quick support or assistance, for completing tasks or projects.

Immediate fiscal incentives, such as performance-based bonuses, are determined based on the company's budget. Many companies also use cash incentives as a form of reward to increase employee motivation (Ulrich, 1990). Extrinsic rewards are important for motivating employees and are ultimately seen as a tool for motivation. The

organization's results, including pay structure, bonuses, and incentives, help create the best understanding of motivation (Herzberg and Kohn). Motivation is a driving force that motivates and encourages individuals to establish an empowering relationship with their work, giving employees a sense of pride and accomplishment.

Authenticating individuals and providing direct feedback broaden the range of individuals. It is not just monetary compensation and bonuses that can increase external motivation; by offering feedback and recognition, the desire to excel in work can be further cultivated. According to Herzberg's theory, it is not managers who inspire employees through salary, bonuses, and other incentives. Rather, employees are motivated by their own personal investment that develops after successfully completing challenging tasks. In every organization, the ability to accomplish tasks correctly and achieve future goals depends on managers motivating employees to offer opportunities and enhance their capabilities to achieve the job at hand.

(Marchington; A; Wilkinson, 2005) In every organization, intrinsic rewards are based on employee status and value perception. Managers ensure that the dislike for intrinsic needs does not surpass the external form of incentives. Knowledge is crucial for all employees; when it comes to acquiring knowledge, it gives individuals a sense of satisfaction. Managers make sure that the intrinsic element is not neglected in learning, as negligence undermines motivation.

Furthermore, when an employee understands their intrinsic cognition and skills are developing, they become easily motivated. For example, every manager motivates employees by recognizing the intrinsic value of training within an organization, which leads to extrinsic rewards in the form of financial recognition. Developing the intrinsic motivation that drives employees at work is important. Many organizations can achieve high levels of motivation by

offering non-financial rewards. These non-financial rewards include opportunities for learning and development.

According to Michael (2008), in addition to personal motivation, accomplishment also plays a crucial role in maintaining their motivation and achieving the best performance.