Investigating the factors affecting employee motivation towards the - - PDF document

Investigating the factors affecting employee motivation towards the

• rganizational performance of ID’s Finance Company PLC, Sri - Lanka

Submitted in the partial fulfillment for the award of Graduate Diploma in Management Indika Dissanayake 422071423 Professional Project Module GDM 406 7976 words 25 July 2015

DECLARATION

I declare that this Professional Project is an original work carried out by me under the supervision of Dr. Bandara Wanninayake Module Tutor and submitted in the partial fulfillment

• f the requirement for the award of Graduate Diploma in Management.

Signature : ………………………….. Name : ……………………………

TABLE OF CONTENTS Page No Abstract ----------------------------------------------------------------------------------------------------1 1.0 Introduction -------------------------------------------------------------------------------------------2 1.1 Background to the organization------------------------------------------------------------2 1.2 Project Rationale-----------------------------------------------------------------------------3 1.3 Current Situation-----------------------------------------------------------------------------3 1.4 Research Problem----------------------------------------------------------------------------3 1.5 Research Questions--------------------------------------------------------------------------3 1.6 Project Objectives---------------------------------------------------------------------------4 1.7 Significance of the study-------------------------------------------------------------------4 2.0 Literature Review ------------------------------------------------------------------------------------5 2.1 Definition of Motivation--------------------------------------------------------------------5 2.2 Attitude towards employee Motivation---------------------------------------------------6 2.3 Employee motivation vs. Organizational performance---------------------------------6 2.4 Factors affecting Employee Motivation--------------------------------------------------7 2.4.1 Pay----------------------------------------------------------------------------------8 2.4.2 Rewards and Recognition-------------------------------------------------------9 2.4.3 Promotion and Growth ---------------------------------------------------------10 2.4.4 Appreciation----------------------------------------------------------------------12 2.4.5 Leadership-------------------------------------------------------------------------13 2.5 Chapter summary----------------------------------------------------------------------------14 3.0 Methodology ------------------------------------------------------------------------------------------15 3.1 Overview of the research-------------------------------------------------------------------15 3.2 Research philosophy and Objectives -----------------------------------------------------15 3.3 Research approach --------------------------------------------------------------------------17 3.4 Research strategy----------------------------------------------------------------------------18 3.5 Methodology choice-------------------------------------------------------------------------19 3.6 Research Instrument-------------------------------------------------------------------------20 3.7 Time horizon----------------------------------------------------------------------------------21

3.8 Data collection method-----------------------------------------------------------------------22 3.9 Population--------------------------------------------------------------------------------------23 3.10 Sampling methods---------------------------------------------------------------------------23 3.11 Sample size-----------------------------------------------------------------------------------23 3.12 Pilot Survey----------------------------------------------------------------------------------24 3.13 Limitations of research methodology-----------------------------------------------------25 3.14 Ethical approach to research---------------------------------------------------------------25 3.15 Chapter summary----------------------------------------------------------------------------25 4.0 Findings and Analysis---------------------------------------------------------------------------------26 4.1 Socio- Demographic Characteristics of the Respondents-------------------------------26 4.1.1General Question -1 --------------------------------------------------------------27 4.1.2 General Question -2 --------------------------------------------------------------28 4.1.3 General Question -3 --------------------------------------------------------------29 4.1.4 General Question - 4 -------------------------------------------------------------30 4.1.5 General Question -5 --------------------------------------------------------------31 4.1.6 General Question -6 --------------------------------------------------------------32 4.2 Motivational Factors for employees at ID’s Finance company PL--------------------33 4.2.1General Question -7 --------------------------------------------------------------33 4.2.2General Question -8 --------------------------------------------------------------35 4.2.3General Question -9 --------------------------------------------------------------36 4.2.4General Question -10 ------------------------------------------------------------37 4.2.5General Question -11 ------------------------------------------------------------38 4.2.6General Question -12 ------------------------------------------------------------39 4.2.7General Question -13 ------------------------------------------------------------40 4.2.8General Question -14 ------------------------------------------------------------41 4.2.9General Question -----------------------------------------------------------------43

5.0 Conclusion and Recommendations----------------------------------------------------------------47 5.1 Discussion of research questions ---------------------------------------------------------47 5.2 Discussion of research objectives--------------------------------------------------------48 5.3 Recommendations--------------------------------------------------------------------------49 5.4 Limitations----------------------------------------------------------------------------------51 5.5 Conclusion----------------------------------------------------------------------------------51 6.0 References -------------------------------------------------------------------------------------------52 7.0 Appendix(Time Schedule) -----------------------------------------------------------------------65 8.0 Appendix (Questionnaire)------------------------------------------------------------------------66 List of Figures Contents Page no Figure 1: Different research philosophies-----------------------------------------------------------16 Figure 2: Positivist Approach-------------------------------------------------------------------------17 Figure 3: Characteristics of deductive and inductive approach-----------------------------------18 Figure 4: Data collection methods--------------------------------------------------------------------19 Figure 5: Qualitative and Quantitative research-----------------------------------------------------20 Figure 6: Advantages and Disadvantages of Open and Closed Questions-----------------------21 Figure 7: Advantages and Disadvantages of using questionnaires--------------------------------22 Figure 8: Justification for random sampling method------------------------------------------------24 Figure 9: Representation of the branch----------------------------------------------------------------27 Figure 10: Representation of the designation---------------------------------------------------------28 Figure 11: Representation of department--------------------------------------------------------------29

Figure 12: Representation of the function------------------------------------------------------------30 Figure 13: Representation of the gender--------------------------------------------------------------31 Figure 14: Representation of the age group----------------------------------------------------------32 Figure 15: Representation of the service length------------------------------------------------------33 Figure 16: Representation of the positive feedback for question – 7------------------------------34 Figure 17: Representation of the negative feedback for question – 7-----------------------------34 Figure 18: Representation of the question – 8--------------------------------------------------------35 Figure 19: Representation of the question – 9--------------------------------------------------------36 Figure 20: Representation of the question – 10-------------------------------------------------------37 Figure 21: Representation of the question – 11-------------------------------------------------------39 Figure 22: Representation of the question – 12-------------------------------------------------------40 Figure 23: Representation of the question – 13-------------------------------------------------------41 Figure 24: Representation of the question – 14-------------------------------------------------------42 Figure 25: Representation of the question – 15 (1) --------------------------------------------------43 Figure 26: Representation of the question – 15 (2) --------------------------------------------------44 Figure 27: Representation of the question – 15 (3) --------------------------------------------------44 Figure 28: Representation of the question – 15 (4) --------------------------------------------------45 Figure 29: Representation of the question – 15 (5) --------------------------------------------------46 List of Tables Contents Page no Table 1: General Question – 1--------------------------------------------------------------------------27 Table2: General Question – 2 -------------------------------------------------------------------------28 Table 3: General Question – 3-------------------------------------------------------------------------29

Table 4: General Question – 4-------------------------------------------------------------------------30 Table 5: General Question – 5--------------------------------------------------------------------------31 Table 6: General Question – 6--------------------------------------------------------------------------32 Table 7: General Question – 7--------------------------------------------------------------------------33 Table 8: General Question – 8--------------------------------------------------------------------------35 Table 9: General Question – 9--------------------------------------------------------------------------36 Table 10: General Question – 10-----------------------------------------------------------------------37 Table 11: General Question – 11-----------------------------------------------------------------------38 Table 12: General Question – 12-----------------------------------------------------------------------39 Table 13: General Question – 13-----------------------------------------------------------------------40 Table 14: General Question – 14-----------------------------------------------------------------------41 Table 15: General Question – 15-----------------------------------------------------------------------43 Table 16: Discussion of research objectives----------------------------------------------------------48 Table 17: Recommendations----------------------------------------------------------------------------49 Table 18: Time Schedule--------------------------------------------------------------------------------65

Abstract

Employee motivation is a key element in every organization. Most employees are enthusiastic when they start a new job. But their morale often declines after their first six months and continues to deteriorate for years afterward. To maintain employee’s enthusiasm, managers must understand the thing employee seek from their work and then satisfy these needs depends on both organizational policies and managers' everyday actions. However, motivation of employees will contribute in a mass scale to any organization as long as the management treats their employees fairly. This research analyses the theoretical framework and models related to employee motivation and its impact on organizational performance of ID’s Finance Company

• Plc. The importance is to identify the factors affecting motivation and initiate strong
• recommendations. The following five practices will support employee motivation and high

performance: 1. Good pay. 2. Provide recognition. 3. Promotion and growth. 4. Appreciation. 5.

• Leadership. Each of these factors are discussed and analyzed with recommendations linking to

authors opinions mentioned in the literature review. The research contains of an introductory section which provides a brief overview pertaining to the importance of the employee motivation and its impact of on the organizational performance. Secondly, analyses of the views and studies of the past researchers related to the subject will be

• discussed. Though the financial side of motivation is widely preferred and known by the both

parts employer and employee, in the present study we shall insist the non-financial motivation factors climate the lasting performance of the organization and the comparisons reveal that employee motivational preferences vary over time. Questionnaire is used for data collection to quantify the variables of interest. Target population consists of the employees of head office and selected branches in ID’s Finance company PLC. 150 questionnaires were sent through courier and emails out of which 90 were returned with 60% response rate. Finally the recommendations related to the findings will be present with the results show that employee motivation affects employee performance.

1.0 Introduction

Employee motivation is a reflection of the level of energy, commitment and creativity that a company's workers bring to their jobs. Employees who are motivated with their jobs they have strong and pleasant feeling as compared to those who are not satisfied with their job Agho Price and Mueller (1992). Such kinds of employees are always loyal to their jobs Herzberg (2003). Allen and Keaveny (1985) state that high job satisfaction always creates a grievance feeling that eventually becomes the cause to increase the overall performance. The only way to get people to like working hard is to motivate them. Today, employees must understand why they are working

• hard. Every individual in an organization is motivated by something different. The cooperation
• f the employees is possible only when they are satisfied and motivated with their employers and

no breach in with the conditions of the job. In past the industrialists believed that only duty towards their employees was to pay them satisfactory wages. In course of time however researches convinced that the employees required something more important, i.e. human treatment which is very essential to seek the co-operation to the employees. Simmons and McNeil (2004) demonstrate how a company could achieve its

• bjectives is through a way of using the financial, physical and human resources that it has. He

further explains that these resources will motivate the employees to achieve their duties in line with the organisations goals.

1.1 Background to the organization

ID’s Finance Company PLC is one of the Sri Lanka’s leading financial service providers offering solutions ranging from leasing, fixed deposits, savings, loans to factoring. The Company has shown a remarkable growth in terms of its business volumes through an impeccable 26 years of service excellence. Currently ID’s Finance Company PLC has expanded its branch network to 59 and increased the work force to over 650. ID’s Finance company PLC continued to be a key contributor to LOLC Group’s performance, accounting for 28% of the Group’s PBT and 28% of its revenue whilst the contribution in terms of asset was 19% (ID Finance company PLC, 2014).

A majority of the customer base is drawn from the SME Micro sectors of the country and has become a trusted brand, synonymous with stability, dependability and superior customer service. It is very important that the company carries its day to day operations smoothly by motivating its employees towards achieving the company’s objectives and to avoid the employees from job dissatisfaction.

1.2 Project Rationale

The employees at the ID’s Finance company PLC play a major role in accomplishing the goals and objectives of the company. However, it was noted that the lack of motivation at the employee level is an intense problem faced by the management. This research is conducted to examine whether the employees at ID’s Finance company PLC are motivated under the present situation and if there is a link between the motivation factor and the company performance.

1.3 Current Situation

Swanson (2001) emphasized that theory is required to be both scholarly in itself and validated in practice, and can be the basis of significant advances. Given the large investments in efforts within organizations, it is rational to identify, analyze and critique the motivation theories and factors underlying employee motivation and performance in organizations. An understanding of the factors motivating employees can allow a company to maximize its workforce productivity which in turn leads to financial and operational gains Armstrong (2004). It is hoped that this study will provide additional insights into methods to enhance employee motivation and performance in ID’s Finance Company PLC.

1.4 Research Problem

The primary aim of this study is to investigate the key motivational factors that influence employees at ID’s Finance Company PLC and how it could have an impact on the organizational performance.

1.5 Research Questions

This study is driven by the following research questions;

• 1. What are the factors that influence the employee motivation?
• 2. What would be the outcome of the company of highly motivated employees?

1.6 Project Objectives

The main objective of the study is to analyze the impact of employee motivation on

• rganizational performance. The sub-objectives of the study are:
• To define the concept of employee motivation and organizational performance through

comprehensively analyzing the literature.

• To identify whether there is a relationship between employee motivation and
• rganizational performance through comprehensive academic literature.
• To determine the factors that increase employee motivation through analyzing the

questionnaire findings.

• To explain the importance of employee motivation to ID’s Finance company PLC.
• Finally to analyze and recommend solutions based on the findings how well the company

can motivate its employees to deliver the best services to their customers.

1.7 Significance of the study

“Motivation is purely and simply a leadership behavior. It stems from wanting to do what is right for people as well as for the organization. Leadership and motivation are active” Baldoni (2005, p 34). Employee motivation plays a key role in any organization since only highly motivated employees can deliver superior customer service which contributes to corporate growth and

• profitability. Under such conditions it is important for the company to understand the factors that

can motivate their employees to higher levels of performance and action upon the findings

• sooner. The Literature review will provide a glimpse what is expected from the employee

motivational factors and how those will have an impact to the employee performance.

Chapter 02: Literature Review 2.0 Introduction

Taylor (1970) describe a literature review is a report which has been published on a topic by accredited researcher and it is a part of the introduction to a report defined by a guided concept. Baumeister and Leary (1997) emphasize the literature review should consist of a set of goals such as develop or evaluate a theory, summarize the historical or existing state of a research topic and identify problem in a field of research. Boote and Beile (2005) state purpose of the literature review should give a theoretical basis to justify the research.The study focuses on the practice and observance of the two central factors, motivation and employee performance which leads to organizational effectiveness.

2.1 Definition of Motivation

Motivation is the process that creates intensity and direction for the individual to help him/her in achieving goal Herzberg (2003). According to Mitchell (1982) motivation means to move, push

• r influence to proceed for fulfilling a want. Honold (1997) supports the view of Mitchell (1982)
• n motivation as a power that strengthens behavior, gives route to behavior, and triggers the

tendency to continue. In view of Chowdhury (2007) it is an internal drive to satisfy an unsatisfied need and the will to accomplish that drives individuals to pull off personal and

• rganizational goals. According to Koch (1995) it is an accrual of diverse routes which

manipulate and express activities to attain some particular ambitions. McClelland (1987, p. 81) state motivation as "those psychological processes that cause the arousal, direction, and persistence of voluntary actions that are goal directed" the study of motivation is the "study of direction and persistence" Krech, Crutchfield and Ballachey (1962, p.69). The idea of motivational theorists and academics may vary from one another in the particular

need an individual wants to satisfy. Nevertheless, one important study by Cunliffe (2008) looks closely at the motivation is the outcome of individuals need in case of achieving ones exact destination.

2.2 Attitude towards employee Motivation

Employee motivation has been proven to be a long term success factor in many organizations Koch (1995). Simon (1970) state employee motivation as a force that pushes people to make a particular job choice, remains at the job and put effort. Jibowo (2007) define employee motivation as positive emotion and experiences of an employee. Maslow (1943) state that employees at an organization is motivated by desire to achieve or maintain the various conditions upon basics satisfactions of wants. Myers (1970) drew from Maslow and state that the level of need satisfaction is equal to the degree of motivation. Whilst Zammuto (1982) explain that employee motivation is one of the policies to increase effectual job management amongst employees in organizations. Matthew, Grawhich and Barber (2009) reports that motivated employees can formulate an organization more successful because provoked employees are constantly looking for improved practices to do a work, so it is essential for organizations to persuade motivation of their employees. Motivated employees are the cornerstones of any

• rganization and help organizations to survive Smith (1994). Oluseyi and Ayo (2009) assert that

levels of employee performance rely not only on the employee’s actual skills, but also on the level of motivation they exhibit. Therefore, productivity of employees are considered as functions of employee motivation Lord (2002).

2.3 Employee motivation vs. Organizational performance

Yuchtman and Seashore (1987) perceive organizational effectiveness is the extent to which an

• rganization, by the use of certain resources, fulfills its objectives without depleting its resources

and without placing undue strain on its members. Organizational effective performance is the notion of how effectual an organization is in accomplishing the results the organization aims to generate Rukhmani, Ramesh and Jayakrishnan (2010). Further Roy and Dugal (2005) state that Organizational effective performance plays an important role in accelerating organizational development in the process of gathering and transforming inputs into output in an efficient

• manner. Matthew, Grawhich, and Barber, (2009) having agreed with Roy and Dugal (2005) state

that job motivation and job performance has very strong relation. Latt (2008) in his various research findings indicate that there is a relationship between motivated employees, and overall performance of the organization.The study is aimed to determine the factors that increase employee motivation and the relationship of organizational effectiveness with employee motivation.

2.4 Factors affecting Employee Motivation

Vroom (1995) state that exploring the attitudes that employees hold concerning factors that motivate them to work is important to creating an environment that fosters employee motivation. Schneider et al. (1996) report that direct approach to finding out what employees perceive as job- related motivational factors is that employee attitude surveys. Griffin (1990) cites that employees must be asked on a regular basis what sparks and sustains their desire to work. Watson (1994) stress that motivation is the number one problem facing business today. By the 1990s, after the acquisitions and mergers of the previous decades in response to intensified competition, the importance placed on various motivational factors had changed Chandler (1992). An understanding of employee motivation has become even more critical due to the rapidly changing nature of organizations Erez and Den (2001). For many years researchers such as Hersey and Blanchard (1969) and Kovach (1980) administered employee surveys in order to address the challenge of factors affecting employee

• motivation. In 1986, Kovach (1987) conducted a study with 1,000 industrial employees were

asked to rank ten "job reward" factors in terms of personal preference. Kovach (1987) found that employees ranked good wages as the most important motivational factor, while some employees placed it at number five at later time. This phenomenon is also supported by Wiley (1997), who asserts that although there are certain motivators that employee’s value over time, their most preferred motivators can change. Managers may build costly compensation packages and incentive programs around these misconceptions Jurkiewicz (1998). Therefore it is critical to understand what really motivates employees.

Moreover, individuals at different organization levels, with different earning power, may have different motivational values Ismail (2008). In addition to comparing the employees factor rankings the underlying assumption was that the motivational potency of the factors might vary according to gender, age, income level, job type and/or organizational level Kovach (1987). Berg (1970) and Raudseff (1978) identified additional factors motivating employees. These included career value, challenging and stimulating work, opportunities for responsibility and achievement, identification with company goals and objectives, recognition, and confidence and trust in self and company. Different writers have explored different definitions and dimensions of employee motivation. Employee performance fundamentally depend on many factors like performance appraisals, compensation, training, job security, and other, but the area of study is focused only on main factors affecting employee motivation as this factors highly influence the performance of employees.

2.4.1 Pay

Houran (2010) state that employees want to earn a reasonable salary and payment, and desire their workers to feel that is what they are getting. Money is generally the underlying factor that drives most workers to work , Maslow (1954).Parvin and Kabir (2011) reveal that salary is the paramount motivational factor for job satisfaction for employees. Griffin (1990) note that primacy was accorded to compensation for both job satisfaction and motivation, salary increase according to performance ranked at the top. On other hand Pauline (2013) state the cause of dissatisfaction and demotivation stem from a number of factors which are outside of the control

• f the employees such as salary.

Salary is an extensively researched extrinsic motivator. Since it is labeled as an extrinsic factor, it is not perceived as causing motivation in the workplace Herzberg (1959). However recent research of Ansar, Cantor and Sparks (1997) resulted in considerable evidence that higher wages directly affect job performance. Rynes and Minette (2004) argue that pay is probably the most important motivational factor. And Jurgensen (1978) conclude that job applicants seemed to believe that pay is the most important attribute to everyone except themselves. Ansar (1997) also argue that lowering wage levels to market parity can even reduce worker productivity. However, Deci (1972) argues that pay can decrease intrinsic motivation and if payments are

noncontingently presented it decreases intrinsic motivation and it does not if payments are contingently presented. However, in emphasizing the importance of pay as a motivator, it is not the only important motivator Drexler (1977). At one time, employees were considered just another input into the production of goods and services; this way of thinking about employees was referred to as the Hawthorne Studies, conducted by Elton Mayo from 1924 to 1932 Dicksonn (1973). This study found employees are not motivated solely by money and employee behavior is linked to their attitudes and performance Dickson (1973). Indeed, it is clear that many of the other factors mentioned by researchers such as Maslow and Herzberg, interest in work and participation in decision making are also important motivators to many People. Thus, recommendations go to all the multiple motivators, performance-based pay and challenging work is used in conjunction with one another Kovach (1987)

2.4.2 Rewards and Recognition

An important determinant of almost any behavior is the attainment of valued rewards Kanfer (1992). According to Wayne et al (2002) rewards and recognition are essential factors in enhancing employee job satisfaction and work motivation which is directly associated to

• rganizational achievement. According to Leibman and Weinstein (1990) rewards have a central

role in guiding behavior. Agarwal (1998) explain the term reward as something that the

• rganization offers to the employees in response of the work as well as performance and

something which is desired by the employees. According to Walker (2001) recognition includes from bosses, team members, coworkers and enhances customer loyalty. Rewards related to a work environment often are conceptualized as being of two types, intrinsic and extrinsic Stephen (1993). On the basis of a survey of industrial and organizational psychologists, Rousseau (1995, p.45) conclude that a generally accepted definition of intrinsic rewards is "rewards derived directly from or inherent in the task or job itself associated with the content of the task or job" According to the research done by Dyer and Parker (1975) suggest that reward now cause satisfaction of the employee which directly influence performance of the employee. Morrison

and Robinson (1997) indicate rewards are management tools that hopefully contribute to firm’s effectiveness by influencing individual or group behavior. All businesses use pay, promotion, bonuses or other types of rewards to motivate and encourage high level performances of employees Millward and Hopkins (1998). McGill and Slocum (1995), in a similar study explained that many present day organizations reward employees with gifts and prizes as a way to increase motivation. Lee and Allan (2002) found the increase in company quality awareness, increase in product quality awareness, improvement of customer relations, and improved relationship with the organization and increased respect from competitors as rewards bring benefits in a study of 160 Australian companies. However, another study, carried out by Kram and Isabella (1985) summarize the benefits as, increases the chances of winning new contracts, decreases the number of customer audits and helps penetration of international markets considerably. Levesque (1987) state that managers must realize that reward for work done can have positive motivational effects for all employees and that all employees should be recognized for the work they do. Silbert, (2005) forward the view that reward is important because it has a lasting impression on employees which in turn gives the employees an impression that they are valued in the organization. The concept is that motivated employees make motivational organizations.

2.4.3 Promotion and Growth

Maslow (1959, p. 122) allude the importance of employee promotions and growth to say, “Capacities are needs, and therefore are intrinsic values as well. Maslow's humanistic principles laid the foundation and influenced the practice of promotions and development evident in the 1980's Bazigos and Burke (1997). McCauley and Hexlett (2005, p.314 ) note, "In other words, an instance of individual development is an intra-individual change that results in better work performance, today and in the future" . In an organization incentives can be used as a promotion Maslow (1959). It is a way of rewarding the employees for meeting the organizational goals thus it can serves a mean to achieve personal goals and with organizational goals Lazear and Rosen (1981). According to Rosen (1982) the deciding factor for the position of any individual in the hierarchy is his talent, higher the level of talent in any individual higher will be his position in the hierarchy. Promotion has its importance due to the fact that it carries with it a significant change in the wage package of an employee Murphy (1985).

Thus, a raise in salary indicates the value of promotion Baker (1994). For promotion in an

• rganization an employee bond is prepared by employer and is signed by an employee at the

time of employment with a defined set pattern Doeringer and Piore (1971). In this extremely competitive corporate world, promotion can be used as one of the tools for competing firms in Tracing the most productive participant of one organization to be worth hiring for other different

• rganization Bernhardt and Scoones (1993). In such a way the promotion highlights an

employee in the external environment and realizes his worth in the internal environment. According to Carmichael (1983) promotion enhances the yield of an organization when an employee climbs a promotion ladder on the basis of his seniority and resultantly he gets an increased wage rate. However, according to Baker (1988), promotion does not consider to be an incentive device, thus the optimal results cannot be generated by promoting the employee in the

• rganization. There is a more failure rate when the employees are hired externally than when

they are promoted internally Kelly (2001). The impact of wage raise, a result of promotion, is found to be more significant than fixed income on job satisfaction Clark and Oswald (1996). According to Begley and Cross (1993) the employees who are dissatisfied with the opportunity available for promotion show a greater intention to leave the organization. Pergamit and Veum (1989) establish that greater the chances

• f promotion higher will be the job satisfaction of employees. Apart from employee’s

satisfaction in job, promotion can be one of the factors that an employee can see as an aspect of job satisfaction. When employees perceive that there are golden chances for promotion they feel satisfied for the respective place in the organization De Souza (2002). Promotions particularly management promotions play an important role in organizations. They are a way of rewarding employees and keeping them committed to the company Markham, Harlan and Hackett (1987),In fact they are one of the more significant rewards an employee can receive Rosenbaum (1994).

2.4.4 Appreciation

Employee not only wants to know how well he performed but also desires the feeling that his effort is appreciated Luthans and Stajkovic (2000). There are several ways in which appreciation can occur. It can be a verbal or written praise, formal or informal, administrated on public or privately Armstrong and Murlis (2004). Sonawane (2008) state full appreciation of work done, feeling of being in on things and interesting work as the most important motivators for

• employees. Herzberg (1968) suggests that the order for crucial factors in employee motivation is

Interesting work and appreciation. Another example comes from Harpaz (1990) research appreciation on the first position and was followed by Pride in organization.Kovach (1980 ) in his surveys found that the response from 1000 participants Interesting work and full appreciation

• f work done was ranked at the top of the list. Being appreciated through praise helps, develop a

positive self-concept and it meets their needs for esteem, self-actualization, growth and achievement Allender (1998). Appreciation at work could lead to motivation and especially if recognition given for a longer period Carrel and Dittrich (1978). This does not mean that the employees should always be given cash awards but importantly noncash incentive awards should support the business goals and objectives Bjorklund (2001).Reif (1975) further explains that often managers merely forget to appreciate employee performance. Getting use to the habit of appreciation will make the work flow more efficient by making people more productive Miles (1996). Therefore, employers should show appreciation and give employees credit for their work Lindner (1998). Praise for a job well done is probably the most powerful, yet least costly and most underused, motivational tool.

2.4.5 Leadership

Leadership is about getting things done the right way, to do that you need people to follow you, you need to have them trust you and if you want them to trust you and do things for you and the

• rganization, they need to be motivated Higgnis (1994). It resulted in a number of possible

suggestions about motivators that could play a crucial role in increasing employee’s

• performance. Roche and MacKinnon (1970). Mayfield and Kopf (1998) suggest that leadership

style and freedom given to employees are crucial in motivating employees. As some authors suggest Allender (1998) leadership style of managers should be matched with a proper style of

• teams. Rawung (2012) on her research finding that leadership has significant impact to work
• motivation. Leadership can be a powerful contextual factor Harrell (2008) .Yukl (2002, p 67)

adds that “the definition of leadership is arbitrary and very subjective. Some definitions are more useful than others, but there is no correct definition”. However, based on opinion of Messick and Kramer (2004, p 45) that the degree to which individuals exhibits leadership depends on the characteristics and personal abilities, characteristics of the location and environment in which he finds himself. Motivation to work is a major influenced by employee itself, make high achiever employees Rawung (2012). If leaders wish to improve outcomes, they should enhance the motivation of their followers Harrell (2008). Based on Wagimo and Ancok (2005) essentially says that the leadership to employees will result in increased motivation to employee work. So it can be stated that the onset of the motivation, a key condition for the achievement of organization Ariyani (2011). Based theoretical concepts above, it can be expected there is a positive leadership indirectly influence the work motivation. Leadership affects employee work motivation Prasastono (2012) Leadership provides benefits to organizations and makes sense of belonging and pride in the workforce George and Zhou (2007). In fact, it builds a Win - Win connection among organizations and employees; which is considered an ideal environment in numerous

• rganizations and their employees Dickson (1973).

2.5 Chapter Summary

These studies indicate that motivational factors could be different from one person to another. Thus in this viewpoint it is ideal to conduct a research in identifying factors affecting the motivation for the employees at an organization and how it relates to Company’s growth. Taking the above context into to a summarized forum based on the study of employee motivation at ID’s Finance company Plc; the critical issues the employees face will justify the importance of the employee motivation.

Chapter 03: Methodology 3.0 Introduction

Kothari (2004) present that the key aim of the research is to understand about the truth which is unseen and which has not been discovered at present. The purpose of the research is to discover answers to questions through the application of scientific procedures and to elaborate on the relationship between employee motivation and employee performance. The answers to all research questions will be based on literature research.

3.1 Overview of the research

Beasley and Jones (1986) state a research is a logical and systematic search for new and useful information on a particular topic. According to Kothari (1985) the use of the words how and what essentially summarizes what research it is. Saravanavel (1987) direct a research is an investigation of finding solutions to scientific and social problems through objective and systematic analysis. Moreover, Phillips and Pugh (1993) mention a research is a search for knowledge, that is a discovery of hidden truths. A research can lead to new contributions to the existing knowledge.

3.2 Research philosophy and Objectives

The nature and development of knowledge are interrelated by research philosophy Rayan and Jones (2012). According to Kodz (2002) research philosophy is significant for creating assumption that plays a vital role in researching method and strategy therefore, the initial duty of a research is usually to collect data and analyze them and come to a conclusion while operating a research.

Figure 1: Different research philosophies. Source : Tashakkori (1998, p. 56 ) Research philosophy adopted by this study deals with the positivist approach as state by Kothari (2004) which inquires the effect that several facts have impact on the motivation of employees at ID’s Finance Company PLC. The prime objectives of a research are to discover, verify and test important facts, to analyze, to identify the cause and to find solutions to overcome the problems

• ccurringSpangenburg and Moser, (1999).

Figure 2: Positivist Approach Source: Kodz (2002, p. 22)

3.3 Research approach

According to Johnson (1989), research approach means the manner in which research is to be carried out. It should keep the researcher on the right track and make him complete the planned work successfully. The approach adopted for this research is the deductive approach which is based on the empirical evidence of past researchers and research methods utilized to investigate the aims and objectives outlined at the introduction chapter. Beiske (2007) informs that deductive research approach explores a known theory or phenomenon and tests if that theory is valid in a given circumstances. The deductive approach follows the path

• f logic most closely Snieder and Larner (2009).

Figure 3: Characteristics of deductive and inductive approach Source: Gulati (2009, p.78)

3.4 Research strategy

The initial strategy of research that has been adopted for its very study includes a questionnaire. Krippendorff (1980) state that questionnaire are really useful ways of performing the deductive inquiry in business matters. This study faces a problem in drawing a concussion and that is, it needs a huge amount of data to come to a satisfactory conclusion Saleem et.el (2012) For having a large population, it becomes excessively tough to gather authentic data. With the help of a questionnaire, it is possible to minimize the population to a short statistical sample that enables the data collection being efficient. Nevertheless, to inquire the relationship between motivation and effectiveness and also the progress concerning conclusive and descriptive statistical model, a case study lets a researcher collect a quantitative data.

Figure 4: Data collection methods Source: Russ and Preskill (2001, p. 67)

3.5 Methodology Choice

Research methodology normally labels data in to two categories, qualitative and quantitative. Quantitative data indicates methods that produce or make use of data based on numbers and qualitative data indicates methods that utilize data those are not based on numbers Pelissier (2008).This study has been done based on the quantitative data in since the questionnaire direct for closed ended questions.

Figure 5: Qualitative and Quantitative research Source: Lichtman (2006) and Johnson (2008).

3.6 Research Instrument

Miles and Huberman (1994) state that whatever procedure one uses to collect data must be critically examined to check the extent to which it is likely to give expected results. Cooper and Hedges (1994) define a questioner is a form that contains a set of questions on a topic designed to be answered by the respondent. In compiling the questionnaire, there were five major factors presented to identify the link between employee motivation and performance. A structured questionnaire with close ended questions was prepared to address all the defined objectives of the research Hennessy (1998) State that questions that require yes or no answers are termed as closed form whilst Shefer, Briss and Rodewald (1999) define open ended questions as free response in the respondent own words. The questionnaire was carried out in only English language; adhering to the group policies; been a leading financial institute.

Figure 6: Advantages and Disadvantages of Open and Closed Questions Source: Couper (2001,p 43)

3.7 Time horizon

Creswell (2007) articulate that time taken to research the phenomena is independent of which research methodology you have chosen or choice of research technique method. This study was subjected to cross-sectional as the research was conducted through data which were collected

• ver a period of 2 weeks which enabled to compare many different variables. Saunders et.al

(2009) defines cross sectional studies collecting data on more than one case at a single point of time.

3.8 Data collection method

According to Kothari (1985) primary data is original information collected for the first time. On the other hand secondary data is information that has been collected previously and that has been put through the statistical process. Both Miles and Huberman (1994) and Kothari (1985) regard questionnaires as the most important method as primary data collection. The measuring instrument used in this research is in the form of a questionnaire. The reason for using a questionnaire is that the opinions of respondents can be obtained in a structured manner. Questionnaire consists of two sections. In the first section it analyze on the personal details such as age, gender, civil status etc. Whereas the second section consisted of questions that the participants required to express their agreement with the five motivational factors. Figure 7: Advantages and Disadvantages of using questionnaires Source: Oppenheim (1992, p. 52)

3.9 Population

Polit and Hungler (1999) refer to the population as an aggregate or totality of all the objects, subjects or members that conform to a set of specifications. In this study the population consists

• f all the 650 employees at ID’s Finance company PLC.

3.10 Sampling methods

The process of selecting a portion of the population to represent the entire population is known as sampling Polit and Hungler (1999). Obtaining data from the population of all the employees as well as analyzing and interpreting vast amounts of data would have been impossible to accomplish within the time constraints and with the limited financial resources. It is easier to contact a smaller part of the population for data collection. It can be done within a limited time, efforts and with minimum cost. For this research study purpose out of different sampling methods the stratified random sampling has been selected.

3.11 Sample size

The study is limited only to the Head office employees and some selected branches in ID’s Finance company PLC who are in permanent cadre so that the sample will represent the direct contacted employees who experience all of the factors so that their motivation could impact on company’s performance. Stratified random sampling technique was used to select the employees. In first, total number of employees in the organization has identified and then 25% of the samples are selected for the study. Thus 45 front end employees and 30 back end employees of both the genders out of 125 employees at Head Office and 25 employees from some selected branches were used for the questionnaire. Branches were selected based on high contribution for

• rganizational performance. It was decided to distribute the questionnaire among them assuming

that the sample would represent the entire organization as a whole.

Figure 8: Justification for random sampling method. Source: Johnson & Christensen (2008, p.71).

3.12 Pilot survey

According to Polit, Beck and Hungler (2001) a pilot survey can be used as a small scale version

• r trial run in preparation for a major study. Baker (1994) note that a pilot study is often used to

pre-test or try out as a research instrument. Baker (1994) also states that sample size of 10-20%

• f the sample size of the actual study is reasonable to consider in a pilot. The first group of

potential participants consisted of assistant and executive level employees. The second group consisted of officer & manager level employees at head office, finally the branch employees were contacted to secure participants for the pilot portion of this study.

3.13 Limitations of research methodology

The major limitation of this study is the short allocated time. It means this time is not sufficient to analyze the connection between motivation and its impact on the performance in proper way. Nevertheless, for this time limit used for this study may not be appropriate to all the finance service industry come to a conclusion in Sri Lanka based companies.

3.14 Ethical approach to research

Alderson and Morrow (2004) define an ethical research is the view that research is not just amatter of collecting information, but is concerned with the dignity, rights, safety and well-being

• f those who take part in research. The final moral concern is to make sure the privacy of the

data that has been collected on the employees of ID’s Finance company PLC. A secured file and laptop that are highly protected by password should be used in ensuring the protection of the data

3.15 Chapter summary

This paper ultimately focuses on inquiring the relation between employee motivation and its impact to overall performance. In order to attain this goal, both statistical analysis and approach based on questionnaire method are applied. It is a deductive research that has quantitative analysis of high level. Still, simultaneously, there are also factors of qualitative analysis and induction in case of both conclusion and data analysis. The following chapter presents the analysis and discussion of the data obtained from conducting 90 questioners with employees at ID’s Finance Company PLC.

Chapter 04: Findings and Analysis 4.0 Introduction

The questionnaire was prepared based on the factors affecting employee motivation breaking down to questions making it more organized to analyze. The Results have been analyzed against the views of the authors which have been presented in the literature review linking the research questions and the problem statement. The Summary of the key findings of each question has been demonstrated inline or contradicting the views presented in the literature review. The information obtained from the respondents show the sample of the analysis. The population of the analysis was about 650 employees at ID’s Finance Company, and also the sample responded

• f 125 employees at Head Office and 25 employees from some selected branches.

4.1 Socio- Demographic Characteristics of the Respondents

According to many researchers mentioned in the literature review demographic differences in gender, age, income, culture and how these may affect or influence employee work does affect motivation comprehensively. The similarity of each research conducted is in agreement that certain factors are more important than the others but that these factors may vary from one individual to another.

4.1.1 General Question - 1

Main Aim Among the total number of 650 employees at ID's Finance Company PLC, Thus 45 front end employees and 30 back end employees of both the genders out of 125 employees at Head Office and 25 employees from some selected branches were used assuming that the sample would represent the entire organization as a whole. Question no.1 Rationale (LR) Name of the Branch Kovach (1987) state that motivational potency of the factors might vary according to gender, age, income level, job type and/or

• rganizational level

Table 1: General Question – 1 Figure 9: Representation of the branch

83% 17%

No of Employees = 150

Head Office Branches

4.1.2 General Question - 2

Main Aim The prime objective is to find out how each motivating factor could impact the employees based

• n their designation level. Lower level management and middle level management are targeted

in which rank from Assistant, Executives to Manager in order to ensure maximum representation

• f all level of employees.

Question no.2 Rationale (LR) What is your designation at ID's Finance company PLC Ismail (2008) state that individuals at different organization levels, with different earning power may have different motivational values. Table2: General Question – 2 Figure 10: Representation of the designation

56% 23% 12% 9%

Designation % Assistant Executive Officer Manager

4.1.3 General Question - 3

Main Aim In order to identify the front end and back end employees at ID's Finance Company PLC and their view on each motivating factor. It is important to analyze to investigate the understanding employee deeper thinking about their skills and abilities. Question no.3 Rationale (LR) What is your present department? Kovach (1987) state that motivational potency of the factors might vary according to gender, age, income level, job type and/or organizational level. Table 3: General Question – 3 Figure 11: Representation of department 10 20 30 40 50 HR Finance Operati

• ns

Custom er Service Recove ries Marketi ng No of Employees 6 16 38 9 43 38

• No. Of Employees

Representation of Departments

Figure 12: Representation of the function Purpose of the Question -In order to identify the front end employees and the back end employees of ID’s Finance Company PLC, representation of the department is necessary to understand their views. The above figure will give a glimpse of the representatives.

4.1.4 General Question - 4

Main Aim ID's Finance Company PLC believes that equal rights should be given for both female and male employees to express their views. Out of total number of 150 employees chosen from both front and back end functions, male employees and female employees participated. Question no.4 Rationale (LR) Gender Kovach (1987) state that motivational potency of the factors might vary according to gender, age, income level, job type and/or organizational level Table 4: General Question – 4 Front End 60% Back End 40%

Representation of the Function

Figure 13: Representation of the gender Purpose of the Question - Company believes in equal rights should be given for both male and female employees to express their views. Out of the total number of 150 employees chosen from both backend and front end functions, 93 Male employees and 57 Female employees participated for the research and the percentage is shown in the below pie chart.

4.1.5 General Question - 5

Main Aim It is important to analyze the thinking pattern of each employee under different age group acts upon the motivational factors against the overall performance. Question no.5 Rationale (LR) Age Category Kovach (1987) state that motivational potency of the factors might vary according to gender, age, income level, job type and/or organizational level Table 5: General Question – 5

38% 62% Gender % Female Male

Figure 14: Representation of the age group

4.1.6 General Question - 6

Main Aim The behavior of each employee will differ based on the service period and experience. Therefore it is essential to analyze the impact of motivational factors against each employee’s performance. Question no.6 Rationale (LR) Length of Service Kovach (1987) state that motivational potency of the factors might vary according to gender, age, income level, job type and/or

• rganizational level

Table 6: General Question – 6 18 - 25 26 - 35 36 - 45 46 - 60 No of Employees 30 66 28 26 10 20 30 40 50 60 70

Age Group

Figure 15: Representation of the service length

4.2 Motivational Factors for employees at ID’s Finance company PLC 4.2.1 General Question - 7

Main Aim To Identify the factors employees select as a motivational tool. Question no.7 Rationale (LR) Please indicate three factors of the following is a motivational tool for employees at ID’s Finance Company PLC Kovach (1987) conducted a study with 1,000 industrial employees were asked to rank ten "job reward" factors in terms of personal preference Table 7: General Question – 7

29% 26% 35% 10% Service Length %

0 - 2 years 3 - 5 years 6 - 10 years

• ver 10 years

Figure 16: Representation of the positive feedback for question - 7 Figure 17: Representation of the negative feedback for question - 7 The second element of the study recognition is one of the main factors employees have identified as a motivational tool. As shown in Figure 16, the result indicates that the 75% of the employees view for salary and 80% on promotions and 81% on Recognition have been included as the motivational tools out of all the other factors. According to Wayne et al (2002) rewards and recognition are essential factors in enhancing employee job satisfaction and work motivation which is directly associated to organizational achievement having agreed with the research done

5 10 15 20 25 30 35 40 45 50

Yes Male Yes Female

5 10 15 20 25 30 35 40

No Male No Female

by Dickson (1973) that employees are not motivated solely by money and employee behavior is linked to their attitudes and performance.

4.2.2 General Question - 8

Main Aim To Identify the most important motivational factor employees rank in order to enhance the performance. Question no.8 Rationale (LR) By ranking them in order of priority which package is most important to you? Kovach (1987) found that employees ranked good wages as the most important motivational factor, while some employees placed it at number five at later time. Table 8: General Question – 8 Figure 18: Representation of the question - 8 As shown in figure 18, 33% respondents agree with Parvin and Kabir (2011) that salary is the paramount motivational factor for job satisfaction for employees. 26% agree with Murphy(1985) that promotion has its importance due to the fact that it carries with it a significant change in the

• 1. Salary
• 2. Promotions
• 3. Recognition
• 4. Appreciation for wok
• 5. Leadership

30 24 19 12 5

wage package of an employee. Whilst 21% of the respondents rank recognition as the third important motivational factor in accordance with Kanfer (1992) an important determinant of almost any behavior is the attainment of valued recognition.

4.2.3 General Question - 9

Main Aim To identify the most effective motivation factor in order to enhance individual performance. Question no.9 Rationale (LR) What is the effect of these packages

• n your work output?

Murphy (1985) stated that promotion has its importance due to the fact that it carries with it a significant change in the wage package of an employee Table 9: General Question – 9 Figure 19: Representation of the question - 9

10 20 30 40 50 60 70 Excellent Very High High Cannot Tell

As reveled in the investigation out of 90 respondents 59 employees claimed to be that promotions have a major impact on the work output. As stated by Clark and Oswald (1996) the impact of wage raise, a result of promotion is found to be more significant than fixed income on job satisfaction and they are a way of rewarding employees and keeping them committed to the company.

4.2.4 General Question - 10

Main Aim To identify the relationship of employee motivation and performance. Question no.10. Rationale (LR) Would you be able to achieve the same level out if these packages were not introduced or were withdrawn by management? Latt (2008) in his various research findings indicate that there is a relationship between motivated employees, and overall performance of the

• rganization.

Table 10: General Question – 10 Figure 20: Representation of the question - 10

22% 78% Yes No

As seen in the figure 20, 70% of the employees say that motivational factors are needed to achieve the certain goals and maintain the same level or achieve a higher level. Simon (1970) stated employee motivation as a force that pushes people to make a particular job choice, remains at the job and put effort. In contradictory 20 % of the employees argue that they can achieve the work output without any of the motivational factors.Myers (1970) drew from Simon (1970) and stated that the level of need satisfaction is equal to the degree of motivation.

4.2.5 General Question - 11

Main Aim To identify the relationship between the motivated employee and his/her performance towards the organization overall performance. Question no.11 Rationale (LR) In your view what is the effect of these packages on ID’s Finance company’s performance in the following areas Latt (2008) in his various research findings indicate that there is a relationship between motivated employees, and

• verall performance of the organization.

Table 11: General Question – 11

Figure 21: Representation of the question - 11 As stated by Grawhich and Barber (2009) motivated employees can formulate an organization more successful because provoked employees are constantly looking for improved practices to do a work.40% of the respondents believe motivated employees could lead the organization for more profits and 25% say that it could lead to high efficiency level. Whilst 14% mentioned staff retention could be high if you can retain the talented employees not to leave.

4.2.6 General Question - 12

Main Aim To understand whether promotions and career growth flows in correct way. Question no.12 Rationale (LR) Do you think your company practices fairness and transparency in accessing the promotion / growth opportunities? Rosen (1982) the deciding factor for the position of any individual in the hierarchy is his talent, higher the level of talent in any individual higher will be his position in the hierarchy. Table 12: General Question – 12

10 20 30 40 Profitability Staff retention Customer base Efficiency Profitability Staff retention Customer base Efficiency High 36 13 18 23

Figure 22: Representation of the question - 12 As mentioned in the figure 22, when 32% says promotions happen smoothly another 32% argues that promotion process happens without fairness. The most common feedback received from the employees is to eliminate the favoritism and promote internally. According to Kelly (2001) there is a more failure rate when the employees are hired externally than when they are promoted internally.

4.2.7 General Question - 13

Main Aim To identify how well the superiors monitor subordinates work. Question no.13 Rationale (LR) Do you think recognition and rewards are based on performance in your company? Levesque (1987) stated that all employees should be recognized for the work they do. Table 13: General Question – 13

Yes, always 32% Yes, sometimes 20% Yes, rarely 32% Never 16%

Figure 23: Representation of the question - 13 The figure 23, gives a picture that 29% of the employees think they are recognized for their hard work and whilst 11 employees argue that they do not get recognized for their hard work. Silbert, (2005) forward the view that reward is important because it has a lasting impression on employees which in turn gives the employees an impression that they are valued in the

• rganization.

4.2.8 General Question - 14

Main Aim Superiors must encourage their employees often. In order to understand the frequency of how

• ften they motivate their assistants.

Question no.14 Rationale (LR) How often do you get recognized by your boss? Griffin (1990) cites that employees must be asked on a regular basis what sparks and sustains their desire to work. Table 14: General Question – 14

31% 19% 41% 9% Yes, always Yes, sometimes Yes, rarely Never

Figure 24: Representation of the question - 14 As shown in the figure 24, the result indicates that 15% of the combination of both Male and Female employees confirms that they are not being recognized by their superiors and where else

• nly a combination of both males and females of 36% have confirmed that they are being

recognized always for the duties they perform . As explained in the Literature review, Levesque (1987) state that managers must realize that reward for work done can have positive motivational effects for all employees and that all employees should be recognized for the work they do.

5 10 15 20 25 Always Sometimes Rarely Never Male Female

4.2.9 General Question - 15

Main Aim To identify the employees view on each factor as a summary. Question no.15 Rationale (LR) Read the statements below and choose the option which you think best describe what your feel on Salary,rewards,leadership, Appreciation Parvin and Kabir (2011) reveal that salary is the paramount motivational factor for job satisfaction for employees. Lindner (1998) Praise for a job well done is probably the most powerful, yet least costly and most underused, motivational tool. Ariyani (2011) it can be expected there is a positive leadership indirectly influence the work motivation. Matthew, Grawhich and Barber (2009) reports that motivated employees can formulate an organization more successful. Table 15: General Question – 15 Figure 25: Representation of the question – 15 (1)

9 12 30 39 5 10 15 20 25 30 35 40 45 Strongly Disagree Disagree Agree Strongly Agree

Do you trust that money plays the key role of motivational factors?

Figure 26: Representation of the question – 15 (2) Figure 27: Representation of the question – 15 (3)

3 32 55 10 20 30 40 50 60 Strongly Disagree Disagree Agree Strongly Agree

Rewarding for the best performance can contribute to more excellence and perfect competition?

1 24 65 10 20 30 40 50 60 70 Strongly Disagree Disagree Agree Strongly Agree

Adequate appreciation encourages staff to work more efficiently?

Figure 28: Representation of the question – 15 (4) Figure 29: Representation of the question – 15 (5) As in the figure 25 , 39 respondents out of 90 employees strongly agree that money plays the key role of motivation. As mentioned by Ansar, Cantor and Sparks (1997) resulted in considerable evidence that higher wages directly affect job performance, moreover 55 respondents revealed that rewarding the best performance can contribute to more excellence and perfect competition as stated by Lee and Allan (2002) the increase in company quality awareness, increase in product

4 8 39 39 5 10 15 20 25 30 35 40 45 Strongly Disagree Disagree Agree Strongly Agree

Providing chances for leadership would enhance motivation?

2 29 59 10 20 30 40 50 60 70 Strongly Disagree Disagree Agree Strongly Agree

Well motivated staff has a positive attitude towards work?

quality awareness, improvement of customer relations, and improved relationship with the

• rganization and increased respect from competitors will be affected through rewarding the best
• performance. Whilst 65 respondents argue adequate appreciation encourages employees to work

more efficiently proving the fact of Lindner (1998) praise for a job well done is probably the most powerful appreciation receives from superiors would enhance efficiency level of

• employees. Furthermore, 39 employees added their view on leadership would enhance

productivity as Wagimo and Ancok (2005) essentially says that the leadership to employees will result in increased motivation to employee work. Finally the last most important question on well-motivated employees has a positive attitude towards work was endorsed by 59 respondents having agreed with Roy and Dugal (2005) stated that job motivation and job performance has very strong relation. As almost every author has demonstrated the importance of employee motivation in the literature review, it is important ID’s Finance Company PLC to analyze these factors and take immediate corrective measurements to eliminate the negative thinking of some of the areas.

Chapter 05: Conclusion and Recommendations 5.0 Introduction

This research is divided into five major chapters. The first chapter is an introduction which includes the back ground of the study, research aims and objectives. The second chapter contains with the definition of motivation, employee motivation, organizational performance and the factors affecting employee motivation. The next chapter is research methodology which covers research philosophy, design, sampling, research limitations and ethical considerations. Chapter four focused on data-analysis with the questionnaire and chapter five includes discussion of the research question and objectives, limitations of the studies, finally the recommendations.

5.1 Discussion of research questions

From the first research question we can find out that different variable such as experience, age, gender could impact the employee’s behavior and affect their performance in accordance with the motivation level. For supporting question 2 different factors of motivations were discussed to identify the most important factor to enhance productivity and efficiency level. On this matter, the findings say that there is a major relation between motivational factors and general attitude to

• work. It is required to understand that each employee has his own characteristics and different

motivational needs. It should also be taken into consideration that employees do not just work for financial incentives, but rather such as supporting environment should be created where employees love to come to work and enjoy their job. From the results of this question, it is clearly noted that well motivated employees have a positive attitude to work.

5.2 Discussion of research objectives

Objective Achievement To define the concept of employee motivation and

• rganizational performance

through comprehensively analyzing the literature. Objective was achieved through using a wide range of literature and critically discussing the models and characteristics of employee motivation and organizational performance. To identify whether there is a relationship between employee motivation and

• rganizational performance

through comprehensive academic literature. Objective was achieved by conducting a detailed critical review of motivational theories to identify the relationship between employee motivation and organizational performance. To determine the factors that increase employee motivation through analyzing the questionnaire findings. The third objective was accomplished by employing a questionnaire and statistical analysis on ID’s Finance Company PLC employees to assess which identified factors are relevant to motivational levels amongst the company's employees. Finally to analyze and recommend solutions based

• n the findings how well the

company can motivate its employees to deliver the best services to their customers. The last objective was achieved by providing recommendations to the management team to increase motivational levels and thus enhance overall productivity. Table 16: Discussion of research objectives.

5.3 Recommendation

Factor Recommendation Pay The first element of the study is Pay. As shown in Figure 18, the result indicates that 33% of the combination of both Male and Female employees confirms that they require increase in salary as number one need to motivate themselves. As explained in the Literature review, Parvin and Kabir (2011), Kanfer (1992), highlights the importance of pay as a motivator as it may satisfy several needs of a human. Recommendation goes to that employee salary should be revised in accordance with the current economic situation. Promotions As shown in Figure 18,24 of the respondents of both Male and Female employees requestPromotions as a motivational factor. Therationale behind the answer is that there is a link between promotions and the pay where the policy of ID’s Finance Company PLC is when the employees get promoted their salary would be enhanced with many other facilities. Although it may have been the right thing to do in the view of the strategic management, they should understand the fact that long time waiting for promotions could lead talented employees to leave.Therefore the recommendation is to take immediate action when the management identifies that there is a link between promotions and employee

• motivation. Furthermore, the policies, procedures of Human resources should be

well structuredwhen considering employees to promote. Rewards and Recognition As shown in the Figure 24, 15% of both Male and Female employees confirms that they are not being recognized by their superiors and where else only a combination of both males and females of 36% have confirmed that they are being recognized always for the duties they perform .As mentioned in the literature review Sandler and Levesque (1987) state that managers must realize that reward for work done can have positive motivational effects for all employees and that all employees should be recognized for the work they do. Although the employees of ID’s Finance Company PLC may not 100% agree with current practice, a minor portion who would get disappointed may disagree with policy commenting unfair. Therefore the recommendation is to review the

appraisals system and implement the “360 degree appraisal system” with employees hard work and extra activities could be recognized and rewarded. Appreciation The Figure 27, indicates that 65 employees of both Male and Female employees have confirmed that appreciation is also another important aspect for employee

• motivation. As stated byCarrel and Dittrich (1978) Appreciation at work could

lead to motivation and especially if recognition given for a longer period. Lindner (1998) stated that praise for a job well done is probably the most powerful, yet least costly and most underused, motivational tool. The recommendation is for the strategic or tactical level superiors to provide sufficient appreciation for the tasks employees accomplish and make them understand that they are valued all the times. Leadership As stated in the Figure 28, 39 employees of both Male and Female employees agrees with that leadership will enhance productivity. Wagimo and Ancok (2005) stated that proper leadership to employees will result in increased motivation to employee work. The recommendation is to provide sufficient trainings on leadership qualities to employees who are lacking in certain skills and it is also the responsibilities of the superiors to groom the employees to take the next leadership. Table 17: Recommendations The most striking result of the current research is the clear indication of money and promotions as motivators. Overall employees expressed the importance of pay as a motivator. On the other hand managers must realize that recognition and appreciation for work done can have positive motivational effects for all employees and that all employees should be recognized for the work they do. However the organization can arrange and improve the viable motivational techniques that can upgrade and impact the employee’s inspiration in the work and efficiency level which would ultimately result successful overall performance.

5.4 Limitations

This research was used among 650 employees from ID’s Finance Company and 150 employees were selected as a sample to identify the link between motivation and employee efficiency. But this sample is just highlighting the fact if the ID’s Finance Company PLC efficiency is triggered by the motivational factors or not, it is not representing the whole company background. It is not possible to gain the accurate information or whole picture of the company by distributing a questionnaire among 150 employees. Short limit allocation was another big obstacle of this research, due to the time limit, only 90 questionnaires were received and it was not possible to conduct wide ranging analysis of the relationship between employee motivation and efficiency. The link between employee motivation and organizational performance is a wide ranging topic, which can’t be analyzed by only 15 questions. If more questions could have been added then it would more reflective, but because of short time limit it was not possible to ask more questions.

5.5 Conclusion

Motivation is the number one problem facing business today. In order to attain high levels of performance, employers depend on their employees to perform at levels that positively affect the bottom line. Thus, they must understand what motivates employees. Such an understanding is essential to improve productivity and ultimately to ensuring the success of the company. If managers adequately and regularly administer the factors affecting employee motivation

• rganization would gain a competitive advantage while employees would gain the work-related

rewards they value. The main objective of this research was to identify the factors of motivation at increase employee efficiency. The summary of the above findings would be helped to increase employee motivation. Additional research should be done to gain a continuous view of what motivates employees to do their best work due to rapid changes in technology and globalization, A motivated workforce can make powerful contributions to the profits of an organization.

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7.0 Appendix Time Schedule

Task Duration W 1 W 2 W 3 W 4 W 5 W 6 W 7 W 8 W 9 W 10 Prepare the Introduction & Establish

• bjectives/Research Questions.

Develop the strategies and Data Collection in line with the research topic. Prepare the Literature review Set up the Methodology Prepare the Questioners based on the literature and set up the survey Analyze the Findings from the data Collection Preparing the Conclusion and Recommendations Submission of the report Table 18: Time Schedule

8.0 Appendix

QUESTIONNAIRE IN ENGLISH Dear Respondent, The research is undertaking as a part of full filling my Graduate Diploma in Management. The questionnaire is designed to obtain employee’s view on the factors affecting employee motivation towards organization performance at ID’s Finance Company PLC. Your valuable response will assure the reliability of the research findings and it will also enhance my knowledge about the research area. The questionnaire will take only 10 minutes to complete. The information gathered from you will be treated with confidential and will use only for academic purpose only. Thank you for your kind cooperation. Indika.

* Required *SECTION 01 : Socio- Demographic Characteristics

• 1. Name of the Branch ………………………………………………………….
• 2. What is your designation category at ID’s Finance company PLC?

[ ] Assistant [ ] Executive [ ] Officer [ ] Manager

• 3. What is your present department? ....................................................

• 4. Gender

Male [ ] Female [ ]

• 5. Age Category

[ ] 18 - 25 [ ] 26 - 35 [ ] 36 - 45 [ ] 46 - 60

• 6. Length of Service

[ ] 0 - 2 years [ ] 3 - 5 years [ ] 6 - 10 years [ ] Over 10 years

*SECTION 02: Motivational Factors for employees at ID’s Finance company PLC

• 7. Please indicate three factors of the following is a motivational tool for employees at ID’s

Finance Company PLC. (Yes No) I. Enhance Salaries to employees [ ] [ ] II. Promotions and career growth [ ] [ ] III. Recognition [ ] [ ] IV. Appreciation for wok [ ] [ ] V. Leadership [ ] [ ]

• 8. By ranking them in order of priority which package is most important to you? (Please begin

with the most from 1 to 5) I. Enhance Salaries to employees [ ] II. Promotions and career growth [ ] III. Recognition [ ] IV. Appreciation for wok [ ] V. Leadership [ ]

• 9. What is the effect of these packages on your work output? Excellent [ E ] Very High [ V] High

[H ] Cannot tell [C ] I. Enhance Salaries to employees [ ] II. Promotions and career growth [ ] III. Recognition [ ] IV. Appreciation for wok [ ] V. Leadership [ ]

• 10. Would you be able to achieve the same level out if these packages were not introduced or

were withdrawn by management? Yes [ ] No [ ]

• 11. In your view what is the effect of these packages on ID’s Finance company’s performance in

the following areas High [H] (Select the two most) I. Profitability [ ] II. Staff retention [ ] III. Customer base [ ] IV. Efficiency [ ]

• 12. Do you think your company practices fairness and transparency in accessing the promotion /

growth opportunities? I. [ ] Yes, always II. [ ] Yes, sometimes III. [ ] Yes, rarely IV. [ ] Never

• 13. Do you think recognition and rewards are based on performance in your company?

I. [ ] Yes, always II. [ ] Yes, sometimes III. [ ] Yes, but rarely IV. [ ] Practically never

• 14. How often do you get recognized by your boss?

I. [ ] Always II. [ ] Sometimes III. [ ] Rarely IV. [ ] Never

• 15. Read the statements below and choose the option which you think best describe what you

feel Strongly Disagree Disagree Agree Strongly Agree Do you trust that money plays the key role of motivational factors? Rewarding for the best performance can contribute to more excellence and perfect competition? Adequate appreciation encourages employees to work more efficiently? Providing chances for leadership would enhance motivation? Well motivated employees has a positive attitude towards work?