2.0 LITERATURE REVIEW
2.1 Conceptual Definitions
The research presented is about the theories of motivation, which prove there is a need for motivation in all workplaces and effective ways of motivating the workforce. Motivation has become the main factor in the most researched part of management in today’s working environment. Many theories were designed which greatly influenced and still influence many organizational performance. According to Bulkus ; Green (2009), motivation come from the word “motivate”, which means a move, push or influence to continue for satisfying a want. In the view of Bedian (2003), motivation is an internal motivation to satisfy an unsatisfied need and the will to achieve it. In addition, motivation is an advancement of moving and supporting goal-directed behavior (chowdhury, M.S, 2006).
In the mid twentieth century were several motivational theories created by scientists and psychologists, namely Maslow’s hierarchy of needs (1943), Herzberg’s two-factor theory (1959) and Vroom’s expectancy theory (1964). Those researchers positioned main on employee motivation and in general particularly. In the previous year’s different definitions of motivation were defined, eg. Herzberg (1959) defined employee motivation as performing a work related action because you want to.
According to Mullin (1996), motivation is the force within an individual that influence his or her path, the passion and perseverance to perform well or not. On a further note, he also that motivated employees are willing to make an effort, toward incentive or reward value of the goal. The management of business organizations set this kind of strategy to fulfill their employees’ common tasks, objectives and goals. According to Warren (2010), the workforce motivation is an important concept in an organization. On the other hand, Wisconsin put forward that organizational goals help to focus our learning on the system’s highest priorities. In this way, professional development and organizational improvement are integrally related. The growth of professionals can contribute to the organization as a whole, but individual growth without the organizational context is not enough and inefficient in helping the organization to achieve its strategic goals. In addition, motivation is an evolution of supporting the goal-directed behavior (Chowdhury, M.S, 2006).
The first question that can arise is: “why management need to motivate employees?” (Herzberg, 1959). According to Smith (1994), it is because of the survival and success of the business. Amabile (1993) said that managers must know how to motivate and deal effectively with their employee’s motivation as a motivated workforce influence the success of an organization by achieving the organizational goals and objectives. Motivation is a decision making process, through which someone chooses the preferred outcomes and sets in motion the behavior appropriate to them. Motivation can therefore be thought of as the degree to which an individual WANTS and CHOOSES to engage in certain behavior (Matoka, 2011).
According to some researchers, there are many different theories motivation and have made remarkable development for explaining motivation that can be interpreted into the working environment. The following theories are still being used today. These include Maslow’s hierarchy of needs, Herzberg’s two-factor theory and different types of motivation, such as intrinsic and extrinsic.
2.3 Types of Motivation
There are two types of motivation at work are the Extrinsic and Intrinsic motivation:
Extrinsic outcomes however are what action is done to motivate employees. It is related with rewards such as pay, working conditions and fringe benefits, job security, promotion, the working environment, conditions, punishments such as disciplinary action, and these are done to motivate the employees (Armstrong, 2006). Extrinsic motivation are objects or actions that have immediate influence on employees but may not necessary last long.
In general sense, Intrinsic Motivation is actually originates from the content of the job the direct relationship between the employee and the task, own efforts from the employees. All the jobs have such potential opportunities where such outcomes engage the feeling of motivation of achievement, accomplishment, recognition, challenges and goals will be achieved.
2.4 Techniques of Motivation
According to Gupta, (2005), there are two main method of motivation as explained below:
2.4.1 Carrot and stick Approach to Motivation
The Carrot and the Stick is a motivation approach to motivation, which is used in order to encourage desired behavior such as rewards and punishment. Under the approach employee who perform well are given rewards in terms of monetary rewards, rewards capable of measurement in terms of money and non-monetary rewards. On the other hand, punishments are to be imposed on employees, for not acting in the desired way or avoiding work are given punishment in the form of non-monetary punishment, non-monetary rewards and monetary punishment. Carrot and stick approach is, therefore a reward and punishment system for motivating employees.
The following steps may be taken to make the carrot and stick, approach more effective:
Reward (carrot) is more effective motivator when it is connected with the performance. Accurate and unbiased appraisal of performance. Performance appraisal is an ongoing process of evaluating employee performance.
Punishment (stick) is applied at the time when the underperforming actually occurs such as non-monetary punishment, non-monetary rewards and monetary punishment.
2.4.2 Motivation through Job Enrichment
Job enrichment is a non-financial method of motivation from Herzberg’s’ two factor theory of motivation. Job enrichment is based on the assumption factors, which is closed to the work and are not effective motivators of performance. In order to motivate the staff the work itself must provide opportunities for achievement, recognition, responsibility, advancement and personal growth. Job enrichment is the way the job is design in order to build in the opportunities for professional development such as achievement, recognition, responsibility and personal growth. It provides greater opportunities in terms of decentralization of decision-making authority and responsibility by carrying out a given task and with timely feedback on the performance (Gupta, 2005). It is said that the Job enrichment is the key of higher motivation and productivity.
There are many factors such as working environment, finance and human resources influences the performance of an organization. However, employees are the most important resources for nearly all organization. The workforce have a direct influence on the organization’s continuous success and ultimately its stability (Milliman et al., 2008). Coulter (2006) defines employee performance as the entire productivity of an employee activities and actions in an organization. She has also been said that the level of employee performance may be described as low, moderate and high performance levels as employee performance is usually measured by using effectiveness, efficiency, quality, innovation, creativity, commitments, satisfaction, cohesiveness, flexibility, customer relations, communication patterns and employee efforts towardsthe organizational goals (Robbins, 2003)
2.4.3 Job Performance
According to Daniel et, al. (2002), job performance can be defined as employees performance contribute to organizational goals. The Performance can be viewed as an individual or organizational task performance. Firms needs to know how to improve employee’s performance, and therefore they have to find out why employees fail to perform (Muchinsky, 1993). Employee performance can be defined as an employee ability to accomplish tasks assigned to them in an organizational context (Arverty& Murphy, 1998). There are several causes that can affect the level of performance of employees and according to Korman (1971), there are some internal factors, which are very important factors that affect job performance. The internal factors can be divided into two main aspects that is the skills and abilities for a given job task that employee has and which can influence the work performance. In addition to the internal factors that affect employee, performance can be communication that is very important among employees and managers. Motivation is essential for performance and this push employee to perform well and also reduces the rate of absenteeism and encourage stability and loyalty with the firm.
2.3 Theoretical Literature Review
This part focused on various theories of motivation
2.3.1 The Hierarchy of Need Theory
Different researchers have shown different description on how motivation can have great influence within a firm. The famous amongst them is Abraham Maslow with the theory of “Maslow’s Hierarchy of needs”. In Maslow’s Hierarchy, there are five different levels of needs and it is shown in a pyramid shape (Maslow, 1954) with the most essential needs at the bottom and at the top with the need for self-actualization. According to Maslow, people are motivated to satisfy the lower level needs before moving to the next level to satisfy the higher need, which start with the ascending order with the lower needs; the needs are psychological, safety needs, social, esteem needs and self-actualization needs. Firstly, individuals are motivated by Psychological needs: are basic life needs require for human survival such as the air, food and water. These needs are satisfied through an income from employment high enough to meet essential needs and their needs tend to move to the second level needs. It also include good working conditions, which is important for every job in the banking sector. The second level is the security needs: which is the most essential need for people as it expressed with some job security in banks and by providing some generous benefits include health insurance and company sponsored retirement plans for the employee. The third level of needs by Maslow was the social needs. After having a job security, the social needs may be satisfied by having a friendly working environment, build up good working relationship and provide a good workplace to collaborate and communicate with others. The fourth level of Esteem needs which is the recognition where the person must have feelings of self-respect and the need for respect from others, status and recognition of achievement. The last level of the hierarchy of needs is self-actualization. In this particular stage, the person’s always strive to be better and use their talents in new ways. Maslow believes that no one is ever completely self-actualized and this is important to motivate someone in order to fulfill their needs and strive for the next level until they reach self-actualization and this will give a sense of achievement for opportunities to develop and apply new skills will increase their potential. The Figure 1 illustrates Maslow’s five hierarchy of needs.
Figure 1 Maslow´s five hierarchy of needs
2.3.2 Herzberg Two Factor Theory
Frederick Herzberg (1959) a behavioral scientist who introduced the two-factor theory, two-factor theory is based on need achievement because of their interest in how to satisfy employees. According to the study of Herzberg, two-factor theory are the motivators and hygiene factors which influence employees and he suggested that the job itself could be the source of job satisfaction. This theory is very important to current understanding of employer and employee relationship, mutual understanding and alignment within the psychological contract. On the researcher theoretical framework, as shown in Figure 3, there are six motivational factors that may motivate staff in the banking sector in achieving organizational goals. The six motivational goals are recognition, employee empowerment, career progression, personal growth, sense of achievement and, interesting and challenging work. The researcher’s defined that recognition means appreciating the efforts of employee through giving rewards, promotion or show appreciation. Employee empowerment means authorizing employee by means of allowing them to make their own decision in a specific work related situation. Career progression is one of the motivational factors, which mean to grow in terms of career development in. Then next motivational factor is personal growth, which can be defined as improvement in personal development such as talents potential and improvement on employee’s personality. Lastly, interesting and challenging work, encouraging employees to use their full potential when assigning a work to them. On the other hand, the hygiene factors are extrinsic variables, remuneration and benefits is receiving compensation in exchange of showing efforts, sacrifices, leadership and hard work. Working conditions refer to the working environment. Job security is the assurance that an employee are on a permanent basis and there will be continuity of employment for their work life. Relationships with immediate the supervisor or Branch manager have a direct impact the engagement level of the staff. A strong connection existed between an employee’s level of satisfaction and dissatisfaction. Relationship with colleagues at work make the environment more productive and more motivated team. Organization values and policies is about the organizational missions and directions, which help in keeping the employee loyalty. The researcher’s states that the theory for people who are working in a bank specifically in rank-and-file employees and they are the essence of organizational success and rank-and-file employees represent the bank to the customers. However, even by eliminating the poor hygiene factors does not prove that will solve the motivation problem. Similarly, when employees have job satisfaction, motivators are present, but by eliminating the motivators does not automatically lead to dissatisfaction. He advised, there are three ways in which this could be done which are through job enrichment, job rotation and job enlargement.
Figure 2. Frederick Herzberg Motivational Theory