The Herzbergs Two Factor Theory Business Essay
1.0 BACKGROUND TO THE RESEARCH
Motivation has been discovered in recent times to be very significant because of its impact on organisational success; this has made organisations to be able to meet up with the competitive advantage in the global market through increase in employee performance over time (Hitt et al. 2000). Chowdury (2007) describes motivation to be a way of picking out a need in employees and make it achievable in a systematic way. He went further to state that motivating employees is very important because it opens up their skill to meet the demands of the organisation, therefore it is important that organisations look out for the needs of their employees and marry it to the needs of the organisation. Motivation is been seen as a practice that gives rise to maintaining goal directed behaviour, it has also been noticed that both intrinsic and extrinsic motivation play vital roles in respect to work performance in organisations. Generally, it has been noticed in organisations that employees value motivation in which ever form (extrinsic or intrinsic) made available to them. This sets out as a challenge for management and staffs in the banking sector of Saudi Arabia considering the highly increasing multicultural workforce that possesses diverse views of realism, educational knowledge and experience, which are probable end results of societal norms, value and personal belief system (Hall 1995), according to Kunz and Pfaff (2002),it has also been noticed that self-motivated employees always put the organisation and its customers interest first to gain peer recognition which is in line with the organisational goals.
On the other hand, extrinsic motivators have been seen for a very long time to have an impact on employee motivation and performance at work which has made extrinsically motivated employees to be motivated by other forces other than internal like promotions and other forms of financial rewards or incentives(Kunz and Pfaff, 2002; Pullins, 2002). However, considering the high competitiveness in the global market, organisations have sort for motivation because of the impact it has on job performance which has made motivation very important in organisations today.
1.1 PROBLEM OF DISCUSSION
In organisations today, motivating employees has become very compulsory to help enhance the actualisation of organisational goals. Organisations now prepare packages and incentives for job well done and on the other hand punishments for non-performance. For a very long time now, there have been a lot of debates on the impact of motivation on job performance but this research will be going in debt to critically evaluate the impact of motivation on job performance using the banking sector of Saudi Arabia. Motivation brings about increase in output which is necessary for the actualisation of organisational goals.
This research will be looking at the motivation culture of the banking sector of Saudi Arabia which shows the existence of extrinsically based motivation like the allowances, loans, health care services and lots more. The comfort associated with jobs in this sector has made employees to do everything possible to protect their jobs which on the other hand kills employees desire to be self-motivated. It is generally argued that the tendency to work based on self-will is very important for mental, social and physical development because it is by doing what you love to do best that helps you increase your knowledge and skill in it.
It is rather rational to argue that all behaviours can be influenced by motivation (reward)(Skinner 1953, cited in Ryan and Deci 2000; p4), the extrinsically based motivation style been utilised in the banking sector of Saudi Arabia is in no doubt going to kill the rate at which employees will be self-motivated because extrinsic motivations are argued to have some kind of control over employees and makes them loose that free will of choice which intrinsic motivation offers (Ryan and Deci 2000; p5). This obviously shows that employees are strongly influenced by financial rewards and loose that grip on attaining perfection through self-will because they are no more curious to learn. However, (Ryan and Deci 2000, p6), believe that employees perform better through self-actualisation and achievements rather than through external factors and this raises an issue of how long this extrinsic motivation strategy of the banking sector of Saudi Arabia will last.
1.2 RESEARCH QUESTIONS
This research focuses on the impact motivation (intrinsic and extrinsic) has on job performance, the paper will be looking at motivating and demotivating factors on employees of the banking sector in Saudi Arabia and also relevant suggestions for organisations to put in place to be able to gain a competitive advantage in the global market.
The researcher has raised these four questions to be able to achieve the aim of the research
RQ 1: To understand the complexities, determinants and dynamics of, and between, intrinsic or extrinsic motivators?
Employee motivation in recent times has been noticed to be a very essential part of management which has made it really popular over the past decades both theoretically and practically. A lot of literature’s on employee motivation centres on areas like its concepts, theories, types and its impact on employee performance. This chapter will be making use of essential areas in the following subsections to prove its point.
2.1 CONCEPT OF MOTIVATION
The concept of work motivation play a vital role in the field of management, as it permeates many of the different fields that compose its study including leadership, performance management, organisational change, and Human Resources. Managers see the issue of motivation as an integral part of job performance improvement, while researchers see it as a crucial step in developing useful theories for effective management. Despite its obvious importance to work and organisations, the concept is however, a difficult one to properly define due to many philosophical orientations toward the nature of human beings and what can be known about people says Pinder (1998) cited in Meyer et al. (2004), and this led Kleinginna and Kleinginna (1981) cited in Meyer et al. (2004) to identify approximately 140 attempts to define the concept of motivation.
According to Steers et al (2004), the understanding of human motivation can be dated back as far as the time of the Greek philosophers during the era when their focus was on the concept of hedonism, when it was been seen as an influencer of human behaviour based on their assumption that individuals preferred to seek pleasure and avoid pain. Motivation at some time in the nineteenth century started to move from philosophy to psychology which was newly surfacing. Furthermore, According to Steers et al.(2004), scientist in the area of behavioural science started a search at that time for more empirically based models to explain motivation. In addition, Locke and Latham (2004) stated that the instinct theory actually came up during that time and lots of others like those proposed by James, Freud and McDougall. Then the Mayo’s, Roethlisberger and Dickson’s works came in the 1930s who all had the same view that performance of employees will drop if they are not treated fairly because their moral will be low. In the 1950s, a lot of new models on work motivation came up which was generally called the content theories because their ideas were all centred on identifying factors associated with motivation like the works of Maslow, Alderfer and McClelland which focussed on human needs with respect to motivation. The concept of motivation became really popular in the mid-1960s which brought rise to a lot of motivation concepts which were called to process theories because they viewed work motivation from a dynamic viewpoint and look for fundamental relationships across time and events as they relate to human behaviour in organisations and are also central to the process theories which is a series of cognitive theories of motivation that collectively attempt to understand the thought processes that people go through in determining how to behave in organisations.
Steers et al. (2004), after thus dubbed the theories generated on the concept of motivation during the 1960s and 1970s as something akin to the ‘‘golden age’’ of work motivation theories. They further added that this is made much so as judging from the decline of interest in the theory or concept of motivation since the 1990s going by the precipitously low journal publications on the topic since then, implying that while other fields of management research continue to develop conceptually, substantive theoretical developments focusing on work motivations have not kept pace. This view is based on reliance more on the theories developed in the 1960s and 1970s than on the 1990s.
However, going by available literature the concept of motivation according to Locke and Latham (2004) refers to internal factors that impel action and external factors that can act as inducements action. They further added that the three aspects of action that motivation can affect are direction (choice), intensity (effort) and duration (persistence).This will not only affect the achievement of necessary skills and ability but also affect the rate at which they utilise their skills and abilities (Wynn 1980; Locke and Latham 2004). Therefore it is defined as a self-built force in individuals that makes them focussed ,determined and persistent towards attaining certain set heights not as a result of just their own ability or environmental factors. (Hittet al. 2009:187), furthermore Currie (1997:45) described it as the preparedness to put in ones best towards attaining certain heights and also satisfying Individual needs. Michaelson (2005) suggest that motivating managers brings about increased individual and group performance in organisations while motivating researchers is for support for theories of effective management. (Currie 1997:45; Hittet al. 2009:187) went further to say that its theories are actually divided into two parts which are the content and process theories.
2.2 THEORIES OF MOTIVATION
Motivation theories have over time been divided into two parts with most of the theories from the 1950s to the 70s all falling into the two distinct parts. Researchers within these decades have produced at least two elementary motivational concepts. The first part advocates what the content theory is and the second part what the process theory is. The Content theories are all about the environmental factors that bring about that flare in individuals and they tend to describe and categorise the environment factors that generate ‘arousal’ in individuals, and they attempt to identify those specific needs that must be met to lead to individual satisfaction in the work place as stated these four. Maslow’s needs hierarchy and Herzberg’s two-factor, while there is also the Alderfer’s ERG theory and McClellands need theory. The Process theories are generally concerned with how these factors get to produce motivation even with the complexities of human motivation and it generally focuses on the cognitive processes in which people engage to influence that focus, passion and determination of their behaviours. They are of three types namely: Expectancy theory, Equity Theory and Goal-setting theory (Currie 1997:46; Udechukwu 2009; Hittet al. 2009:187-196).
2.2.1 MASLOW NEEDS HIEARCHY
In 1954, after the Second World War Abraham Maslow came out with a theory of growth motivation of people within organisations and in the larger society after studying several organisations. Maslow stated that individuals are all motivated by the desire to satisfy specific needs which are arranged in a scale of preference (Hittet al.2009:188). The theory states that we are motivated by Physiological needs like those basic needs which affect our day to day activities like shelter, food, water. When all these needs are met , our attention is now diverted into other needs like social, security etc and later goes beyond that to esteem needs. The desire for recognition, achievement, status, and power fits in this category. according to Hittset al. (2009:188) Money and financial rewards they also added may also help satisfy esteem needs, because they provide signals of people’s ‘worth’ to the organisation. Finally, we try to satisfy our need for self-actualisation equated with self-fulfilment. According to Hittset al. (2009:188) self-actualisation needs represents the need for people at this Maslow’s hierarchical level of need to maximise their skills and abilities to the fullest. They accept their own successes and sort for new avenues to utilise their skills and talents. They are usually highly motivated by organisational task because it sets out as a challenge for them and they might even reject monetary rewards so it doesn’t distract them from utilising their skills to the fullest (Currie 1997:47-48). Thus Maslow’s theory can be summarised thus for an employee in an organisation as starting off with motivation with pay, once that is satisfied substantially, worker requires a level of safety, then they need a sense of belonging and connection within the organisation, they then need to feel valued by the organisation to fulfil their esteem needs. Once all these needs are met, organisations then need to add incentives that lead to satisfaction of the highest need on Maslow’s hierarchy, the need for self-actualisation (Sadri and Bowen 2011).
The theory has however been criticised by several academicians. Currie (1997:148) states based on the arguments against the theory that it didn’t put individual’s perception of what is satisfying or not into consideration, and also the individual differences in terms of satisfaction because they have got different needs. Iguisi (2009) and Hitts et al. (2009:191) also argued that researchers generally haven’t accepted the theory; Maslow also went further to say that the theory didn’t provide enough empirical substance and moreover latter studies which sought to validate it found no support. Sledge et al. (2008) also explained why the theory is useful in other contexts; it is not geared really towards job-related motivation.
2.2.2 HERZBERG’S TWO-FACTOR THEORY
This theory is called the content theory which was developed in 1962 by Fredrick Herzberg and it focuses on the differences between the hygiene and motivating factors. Its focus is basically on job satisfaction (Currie, 1997:49). In his theory, he categorised motivator’s to be factors that bring about satisfaction and hygiene dissatisfaction. According to (Hittset al. 2009:194), It is actually similar to that of the need theories proposed by Maslow and Alderfer , but the focus in this one is on motivations or performance outcomes that meets the needs of individuals.. Hygiene factors have to do with the environment in which employees are placed like the salaries, policies and administration, relationships within organisation, job security, working environment and conditions while they further stated the Motivator factors to be nature of the job itself, acknowledgement, achievements, and accountability Herzberg in his theory also went further to argue that people get more motivated by self-achievements rather than that of Maslow’s hierarchy of needs, which relies more on self-actualisation opportunities for workers (Currie 1997:49-50; Fisher 2009).
In addition, Sledge et al. (2008) supported Herzberg’s theory when they said that the theory carried different categories of analysis that makes cultural evaluation easy and it was fashioned basically for the workplace and it puts into consideration both individual and group motivation but they also confirmed that not all the test of the theory has been confirmed. However results gotten from the test done by Timmreck (2001) using samples in America showed mixed results while Ruthankoon and Ogulana (2003) in their evaluation of the Thai construction industry using Herzberg’s theory found partial support for the theory. Hitts et al. (2009:195) stated that Herzberg’s two-factor theory was not generally accepted and they went further to state that the key reason for this is that the theory is kind of ethnocentric in nature because support can only be gotten when Herzberg’s methodology is in use and other researchers that used other methods to test the theory did not find support as well. Furthermore, the theory was also criticised that it raise some confusion between job satisfaction and motivation. Iguisi (2009) in his own criticism of the theory says an organisation may have a good working condition, with adequate provision of hygiene factors, which are only job context, and workers may not be motivated. However if adequate attention are paid to the motivators, which are job content related, workers may be motivated to work harder and produce more.
2.2.3 ALDERFER’S ERG THEORY
This is another form of content theory and this one was proposed in 1960 by Clayton Alderfer which is kind of similar to that of maslow’s hierarchy of needs but in this one he was trying to resolve the issues in maslow’s own as it proposes need categories. Furthermore he tried to align needs hierarchy with empirical research when he stated that human beings are been motivated by these three major needs which are Existence, Relatedness and Growth needs which brought about the name ERG theory (Hittset al.2009:190; Arnolds and Boschoff 2002). The existence needs comprises of human necessities for existence which according to Maslow are the psychological and safety while the relatedness needs can be described as the desire by human beings to refer to sustain important interpersonal relationships which are social acceptance, belongingness and status desires. Then lastly the growth needs which are human’s desires for self-growth, fulfilment and actualisation like maslow’s hierarchy of needs.. This theory assumes that employees are motivated to improve their job performance by their individual striving to satisfy some needs. According to Hittset al. (2009:190) the theory though similar to Maslow’s hierarchy of needs still hits back on it in two ways, considering the view of prepotency not being fixed, it says that existence needs do not really need to be met before one can apply or utilise his/her capabilities or relate with people around. Then secondly, it contrasts to that of Maslow as to when a need is considered as satisfied, it may remain the dominant motivator if the next need in the hierarchy cannot be satisfied. For example consider someone who has satisfied his relatedness needs but is unfulfilled in terms of trying to satisfy his growth needs, his desire for relatedness needs again becomes stronger.
The ERG theory according to Hittset al. (2009:191) has more research support than Maslow’s hierarchy of needs as research has found proof of the relevance of the three categories of needs. Alderfer’s basic propositions was also admired and supported like that of the concept that a satisfied need may remain a motivator but they also went further to advice that the validity of the ERG theory should also be tested under different conditions Sledge et al. (2008) also supported the theory for not being as rigid as that of Maslow but however still criticised the wide categories which will lead to a generalised assessment of motivation, while Arnolds and Boschoff (2002) though commended the theory for how specific and focused it is but still criticised it for its lack of conclusive evidence with regards the impact of motivation on job performance.
2.2.4 McCLELLAND’S NEEDS THEORY
David McClelland in the 1940s through the 60s also proposed another type of content theory and also recognised three sets of needs for humans in an organisational context which he called the theory of affiliation, power and achievement. In this theory, he assumed that humans are motivated by three needs for the purpose of power, affiliation and achievements. He went further to say that employees are usually constrained to one of any of the three needs. For instance employees who are crazy about power will get motivated if given leadership role while the ones who like to be appreciated will be easily motivated when they feel accepted and recognised and they are usually very friendly and unassuming and always appreciate been included in social functions. These sets of workers with affiliation needs are usually motivated by prospects of success and always fear to fail (Fisher 2009).
Sledge et al. (2008) after accepting and recognising the three needs of McClelland’s theory for job performance, consequently relating employee motivation with job outcomes still criticised the theory laying focus on just individual levels and forgetting the group level of motivation
2.2.5 EXPECTANCY THEORY
Victor Vroom in his expectancy theory defined the root of motivation through the expectancy of the effort or behaviour an individual puts in for a desired result. According to Chun-Fang et al. (2008) suggest that the motivation that drives a behaviour, action or task is a function of three distinct perceptions: expectancy, instrumentality and valence. Expectancy can be explained to be the likelihood that determination will yield a favourable performance, instrumentality is possibility of good performance yielding an anticipated result while valence can be described as the importance the employee attaches to rewards. The theory according to Chen and Lou (2002) provides a general framework for assessing, interpreting, and evaluating employee behaviour in learning, decision-making, attitude formation, and motivation. Central to the whole theory is individual’s selective perception of the relationship between his or her own effort, performance and rewards. Employees vary in the kinds of things that motivate them because of their differences in terms of needs (Currie 1997:56).
Hitts et al. (2009:198) agree that research generally supported it but also went further to criticise the way the components of the expectancy theory was measured and how they ought to be combined and the impact of individual differences.
2.2.6 EQUITY-INEQUITY THEORY
This theory was proposed by Adams Stacey, the theory tries to link individual motivations to the rate of work employed compared to the associated outcome gained. According to Fisher (2009) equity theory states that employees always tend to compare themselves with others to derive motivation, they will always want to find out about the performance and reward of others to find out if it equals theirs and if it doesn’t it might demotivate them (Hitts et al. 2009:198). Currie (1997:58-59) went further to explain that the theory tends to see employees wanting to get rewards they think is measureable to their performance or position at work and in a case where the motivation is more than their performance or position at work it will motivate them to match the inequity, then if it is the other way round they will be demotivated and even be willing to resign from the job. Hitts et al. (2009:199) further classified them into Sensitives, benevolents and entitleds. Sensitives are those who are more concerned or rather motivated by the input-output ratio and always try to make sure that there is a balance while the Benevolents are those who actually manage the inequity in as much as they are not comfortable with it then finally the entitleds are the set of employees will not tolerate unfavourable inequity but are fine if it’s to their favour at the expense of some others. Sledge et al. (2008) also criticised the theory that it didn’t lay emphasis on the actual motivators that cause individuals to act the way they do in their organisations.
2.2.7 GOAL-SETTING THEORY
This theory was developed by Edwin Locke and its focus is on the relationship between the conscious goals and task performance and it has become very popular in recent years because it has become one of most widely used motivational tool in organisational behaviour and managerial tools like Management By Objectives (MBO). According to Latham and Yukl (1975) the basis of this theory is that an employee’s conscious intentions determine his/her actions. Hittset al. (2009:201) went further to say that challenges and set goals tend to increase employee performance because of the way its impact on attention, effort, and persistence. Due to how employees can be seen, they went further to say that employees are probably going to be motivated only when goals have already been set and that will now push them to put in the desired effort. Seijts (2001) states that goals can affect employee job performance through these three motivational tools: choice, effort and persistence. When you aim at a desired goal it motivates you to make the right choices that are geared towards achieving the set goal they also tend to effortlessly carry on until they have achieved it and it also influences A specific goal when set facilitates choice by encouraging activities that are relevant to achieving a goal and by discouraging those that are not goal-relevant. When individuals set a specific goal according to the theory they tend to persist in their efforts until they reach their goal. Goal-setting theory also influences cognitive processing in that having a goal stimulates the development of specific strategies to attain it.
In addition, Schweitzer et al. (2002) however criticised the theory by saying that setting of goals would not only bring about desired behaviour but also unethical behaviours as well. They found out that employees who have goals might end up losing grip of every other thing because their focus is just on the goal that was set and this is likely to affect their performance on other organisational task. The Alderfer’s ERG theory will fit better into motivational tools than can be used to increase employee performance in organisations due to their job-related specificity and content in understanding employee’s needs and process of understanding their cognitive behaviour towards motivating factors.
2.3 INDIVIDUAL DIFFERENCES
The notion accepts that every individual is special and unique in their own way and for this reason it isn’t possible for a particular motivational tool to suit everyone because they all have different needs and so is the motivation tool that will work for them (Fincham and Rhodes 1992:58; Armstrong 2009:300). For this reason, according to Greenberg and Baron (2008:134) because of the way individuals vary in terms of their needs and desires, these differences make up their personality and goes further to affect how they think and behave. This can actually be evidenced in terms of personality, interaction perspective, abilities and skills. Greenberg and Baron (2008:135) explains the interactionist to be a case were the situational factors of an individual affects his/her behaviours The Person-job fit is the extent to which the traits and abilities of individuals match in the requirements of the jobs they perform (Greenberg and Baron 2008:136).
Moreover, in recent years, lots of focus has been put on personality because of the way personality tends to affect the way people think and interact. Greenberg and Baron (2008:135) defined it as the unique and relatively stable patterns of behaviour, thoughts and emotions exhibited by individuals which can be evidenced to why some people tolerate some working conditions and others can’t. Stable individual differences like people with personality traits like being optimistic, confident, and friendly play an important role in job satisfaction. Griffin (2001), attempts to study in what manner an individual’s personality could predict his performance at work. This can be demonstrated based on individual level that can affect work negatively, job satisfaction were all significantly predicted by neuroticism and extraversion; furthering the belief that personality traits can affect performance at work seriously (Delcampo 2007; Dunkel and Weber (2010) went on to mention the three ‘Big Five’ personality traits as: Openness to experience; Conscientiousness; Extraversion; Agreeableness; and Emotional stability. Funder (1999) cited in Christiansen et al. (2005) proposed that individuals vary in terms of the way they see social information and motivation. In addition, some seek out social interactions, why others prefer to spend their time alone. Furthermore, Christiansen et al. (2005) went further to say that people who have this interactive way of life are the ones who get to enjoy social gatherings and interactions while the more agreeable ones tend to be concerned about others but on the other hand are more concerned about their own feelings. Conscientiousness can be associated to motivation in a lot of ways and this can be justified with the way people tend to succeed in significant social relationships. They are known for greater attention to detail and tend to have an orientation centred on others. Individuals low in emotional stability is less self-conscious and is more likely to see out social relationships (Christiansen et al. 2005). This therefore makes it really necessary to always consider individual differences when preparing motivation packages in organisations
2.4 IMPACT OF CULTURE ON MOTIVATION
Boltanski and The’venot (1999) describes culture to be the norms and values that affect the choices of individuals. Sekar and Narayanan (2007) however, noted that though many authors have quoted the part culture plays in deciding motivation level of employees in an organisation, a few have done empirical work and established the link between culture and motivation. This thus signifies that the cultural understanding of the topic with regards to National and Regional level culture is important in the course of motivation research. As mentioned by Iguisi (2009) everyone belongs to a number of different groups and categories at the same time, corresponding to different levels of culture. He went on to list the levels as: national, regional and/or ethnic and/or religious and/or linguistic, gender, social class, and generational level. Brislinet al. (2005) also went further to say that culture is one of the several components that is capable of influencing motivation at work and they further argue that organisations should try and study the culture and psychology of their employees because it will have an impact on the motivational strategy. A trichotomous model called the dynamic triangle of motivation which was developed by Ostertaker (1999) says that culture is a foundational component dynamically relating to both organisational culture and individual tendencies in building up employees perspective on aspects of motivation.
2.5 INTRINSIC AND EXTRINSIC MOTIVATION
Motivations can be classified into two types which is intrinsic and extrinsic motivation, researches which have been done over the past decades are evidence to the fact that the type of motivation that motivates an employee is what tends to affect his/or her performance at work which makes it very important to study the type of motivational behaviours in employees in organisations. Prendergast (2008) is of the view that employees are actually constrained to the goals of their organisations for a lot of reasons, either for financial or non-financial reasons maybe just for the love for what they are doing. According to Ryan and Deci (2000) the main things that helps in distinguishing what motivates workers behaviour is between intrinsic and extrinsic motivation. They went further to define intrinsic motivation to be the pleasure derived from doing something that interest you and extrinsic motivation to be the joy derived from doing something because it leads to a separable outcome like money, promotion, or some other incentives. People who are intrinsically motivated tend to act more on challenges and self-achievements rather than for some other reasons as stated earlier, this kind of motivation actually come from the inside and it lasts longer (Ryan and Deci 2000b). Extrinsic motivation according to Ryan and Deci (2000a) is a case were tasks are been carried out because of the benefits to be achieved on completion of the task and this kind of motivation wouldn’t last mostly in a case when those benefits are not attached to it. Mundhra (2010) went further to add that motivating people is not constant because it varies with respect to age, education, experience, aspirations, background of people, and position in an organisation. Therefore it is very necessary for organisations to try and find out what intrinsically motivates its employees and if it does, is it to all of them.
It is always an issue in making up your mind on what motivation approach to follow. That’s why Decktopet al. (1999) suggests that extrinsic motivation, intrinsic motivation motivates employees to improve their performance to a large extent. Biswas and Verma (2007) are of the view that organisations should count it necessary to use both motivations as they state that extrinsic factors as level of pay and job security are fundamentally critical for an employee to perform well at work. However, organisations must create an environment whereby employees derive intrinsic and social satisfaction to extract optimal performance from their employees.
2.6 PERFORMANCE MANAGEMENT
Performance management has turned out to be a very important part of organisations today because of the impact it has had on production and this is why organisations find one way or the other to build up systems to manage the performance of their employees Armstrong (2009:618) describes performance management as a systematic process for improving organisational performance by developing the performance of individuals and teams. It can be seen to be a way of producing better results in the work place today. Performance management is a process of continuously identifying, measuring, and developing the performance of employees and bringing together performance with the strategic goals of the organisation (Aguinis 2009:2; Armstrong 2009:618; Aguiniset al. 2011). The major aim of this is to align employee performance with organisational performance which actually raises different types of perceptions from employees. In organisations, a process like this starts from top management and it involves them developing performance management policies which managers will use in controlling performance through feedbacks provided from outputs. According to Seiden and Sowa (2011) performance management can be described to be a set of activities been used by an organisation to increase the performance of its employees. In addition they said they stated that organisations usually build these processes to help motivate staffs by building up expectations and providing feedback on an employee’s progress geared towards actualising the desired goals. Seiden and Sowa (2011) conclude that the management of performance in organisations results in increased employee satisfaction which also increases output.
2.7 IMPACT OF MOTIVATION ON JOB PERFORMANCE
Due to the fact that individuals vary in thoughts, needs, behaviours and lots more, it is therefore very necessary to find out the various ways that can motivate them so as to increase their performance at work. Hogan and Shelton (1998) are of the view that these differences are tied to their various interest and needs for example some employees are more interested in been appreciated by their boss so whenever they appreciated it motivates them to do more while some others are quite different in the sense that they can only be motivated by monetary rewards, promotion, incentives and lots more, it is going to be very hard to motivate this kind of people with verbal praise because it might not work. According to Manolopoulos (2008) lots of empirical studies done in the past raised a lot of support for the view that relevant self-motivation and increase in employees job satisfaction will bring about increased performance. Bono and Judge (2003) in their work studied impact of motivation on job performance along personality traits of self-esteem, locus of control, neuroticism, and generalised self-efficacy which they tagged core-self evaluations in explaining the motivation’s impact on job performance. They argued that people who rate themselves really high in terms of competence tend to be highly motivated when doing their jobs.. Bono and Judge (2003) are of the view that motivation has a greater role to play in terms of impacting on job performance.. Erez and Judge (2001) cited in Bono and Judge (2003) conclude that in both laboratory and field studies they carried out- core self-evaluations were linked to motivation and that motivation mediated much of the relationship between core self-evaluations and job performance.
3.2 ETHICAL CONSIDERATION
In the cause of doing any research there need to be ethical considerations which can be divided into three which are harm to participants, lack of informed consent, invasion of privacy, deception involved (Diener and Crandall (1978) in Bryman and Bell (2007:132-133), furthermore, a lot of things will have to be considered during the course of the research to avoid harm to the participants both physically and mentally. In addition it should also be noted that it is the duty of the researcher to carefully assess the possibility of harm to research participants in any form or way in the AoM code of ethical conduct. The researcher should try as much as possible to reduce it to the merest minimum because sometimes it is inevitable.
Brewerton and Millward (2003:61) are of the view that researchers should always try as much as possible to always put probable ethical considerations into consideration. Most professional bodies representing the social sciences publish specific codes of practice and ethics for the treatment of those participating in the research. Creswell (2009:89) also mentions that dishonesty has been an ethical problem in most research today because in most cases the results from participants might just be different from the researchers anticipated result so he then chooses to forge something else but which is quite different from this one because the questionnaires didn’t need to have their names on it so it made it easier and better for them to err their own views without fear of any sort from higher authorities around them (Bryman and Bell ,2007:132-133). the researcher tried as much as possible to make sure that the results gotten from the questionnaires wouldn’t yield anything negative both to the participants and the organisation. (Creswell 2009:89).
RESULTS, ANALYSIS AND FINDINGS
This chapter will be making use of the results from the questionnaires which were given out to address the research questions raised.
DISCUSSIONS AND CONCLUSIONS
In this chapter, we will be discussing on the significant effects for theory for managers gotten from the results of this study and also make recommendations and suggestions to the banking sector of Saudi Arabia, the research will also be looking at the limitations during the course of the research and further suggestions for future research.
This research was done to find out the impact of motivation on employee job performance in the banking sector of Saudi Arabia. Its aim is to find out the impact and factors (intrinsic and extrinsic) that motivate employees to increase their performance and also what motivation instruments suit them as not the same motivation can suit all. The results of the research showed that more of the employees were more motivated intrinsically than extrinsically but still preferred that both types of motivations be used for them. The research also showed that there is some kind of change for what motivates the employees during the course of their career because their needs change over time which means they will be better motivated based on their individual differences. This part of the research further debates the implications of the results of the research on theory as well as on managers in the sector and elao made significant recommendations in the sub-sections below.
5.1.1 IMPLICATIONS FOR THEORY
The field of management has been found out to have benefited a lot from the presence of motivation. Results from the research showed that more of the employees in this sector were more motivated intrinsically than extrinsically which means that they enjoyed the work they do which is in line with Prendergast (2008) who stated that employees act in the interest of their employer for lots of reasons, maybe for the pay or just for the love of the job which is why Ryan and Deci (2000b) argued that intrinsically motivated employees are more about a long lasting motivation than for the extrinsic (financial) which doesn’t last. This also is in line with Biswas and Verma (2007) argument which supports that both forms of motivation be used for employees in organisations in as much as they rate the intrinsic type more than the extrinsic but employee motivations vary and change during the course of their career which is why Mundhra (2010) state that motivation of people is not constant as it varies with age, education, experience, aspirations, background of people, and level in an organisation. This is why it is very important for organisations to study what motivates their employees. Considering the fact that there is change in what motivates employees during the course of their career, Maslow’s Hierarchy of needs cited in according to Sadri and Bowen (2011) states that when employees newly start their jobs most of them are more motivated by the pay but after some time it changes and they now start looking for more like job safety and security, before the need for sense of belonging and connections within the sector, and that stage they now want to feel valued by their organisations to satisfy their esteem needs before finally reaching for the need for self actualisation. This theory was however criticise by several academics like Currie (1997) who argued that the theory does not take cognisance of individual perceptions of what satisfies them and what doesn’t and also to what extent does it. Furthermore, Iguisi (2009) and Hitts et al. (2009:191) also argued that the research does not generally validate the theory; they also stated that Maslow did not provide empirical substantiation for the theory and several other studies latter which sought to validate it found no support. Armstrong (2009:300) also argued that the concept of individual differences assumes that every individual is unique in their own way and that it is impossible to have a one cap fit all motivational tool that would apply to every individual in an organisation is supported by findings in the study which shows that employees within the studied organisation agree that their individual differences should be considered by the organisation in the motivational tool they apply to each and every staff of the organisation as they believe individuals do differ in what motivates them. The research further showed that most of the respondents strongly agreed that motivation impacts on job performance which means in essence that an increase in any type of motivation will reflect positively on their job performance which according to Manolopoulos (2008) past empirical studies have provided support for the assertion that appropriate internal motivation and increases in employees’ job satisfaction lead to higher performance.
5.1.2 IMPLICATIONS FOR MANAGERS
The results from the research showed that the employees strongly disagreed that as they go on in their organisation that their organisations introduce motivational tools that will suit all hierarchy and levels of employees in the organisation which gives rise to an implication for the managers in this sector as they need to know that motivation levels of employees change over the course of their careers due to age, education, level within the organisation etc. This makes it very necessary for them to introduce motivational tools that would suit all levels of employees. It also showed that individual differences exist and should be considered when introducing a motivational tool because most of the respondents agreed that they differ as to what motivates them. The organisational culture also influences the kind of motivation adopted by the organisation which respondents sampled agreed and which means that organisations should be aware and put in the right culture because the impact of motivation on job performance is very vital as respondents mostly agreed, hence there is the need to have the organisation’s management take the issue of staff motivation of paramount importance.
The research recommends these to the banking sector of Saudi Arabia whose employees were anonymously sampled.
The sector should put into consideration the working environment of their employees and also manage a high and effective motivational system as a better part of their employees agreed that they rather be motivated by the work they do rather by the reward they may get.
The sector should always put into consideration the existence of individual differences when formulating any motivation strategy due to the fact that employees motivational needs differ.
The sector should consider the fact that as motivational levels and needs of employees change over the course of their career, they should make sure that they vary their motivational tools to suit the different hierarchy, classes and levels of their employees.
The sector should also take issues of motivation of paramount importance because of the important role it plays in increasing the performance of its employees
This study investigated the impact of motivation on employee job performance using the banking sector of Saudi Arabia as a case study. It made use of self completing questionnaires with purposive sampling strategy which enabled the researcher through the help of her brother who works in the sector choose the eventual sampled respondents that they felt were suitable in answering the questions in the questionnaire to help meet the aims and objectives of the research.
The questionnaires were returned and computed into the quantitative analysis software (SPSS) and subsequent analysis carried out on it with results in the research revealing facts which led to the conclusion of the research. A major fact from the research was that an increase in the motivation of employees would give rise to an improvement in employee job performance and invariably their satisfaction with the job and thus motivation is a strong organisational strategy that should always be counted as important in organisation today. The research showed that employees in this sector were more motivated by the love for their jobs rather than reward type of motivation but they however agreed that it is better for their sector to adopt both motivation types.
The research also showed that the employers are aware of the presence of individual differences and how it affects what motivates them and will be happier if their sector puts into consideration these individual differences in adopting motivational strategies. Efforts should however also be made by the studied sector to vary the motivational tools they use on every employee as their levels of motivation and needs change and vary over time during the course of their career within the sector as this will ensure that employees stay motivated. The fact that an increase in any of the types of motivation will increase employee performance then organisations should count it as important..
5.3 LIMITATIONS OF THE RESEARCH
This research was carried out taking into considerations likely problems involved with research of this type and efforts were made to ensure validity and reliability of the data obtained particularly the primary data. The research was however kept to one sector (the banking sector of Saudi Arabia) which makes it uneasy to ascertain if the conditions apply to every other sector or organisation in Saudi Arabia. The confidence of the researcher however lies in the reliability of the findings from the single sector used in ensuring that the results can be tested by any other researcher should they choose to do so as the results also aligned with reviewed literature in the research and the recommendations given would surely benefit any other organisations that are interested in such issues and not just the sector used in the research. The sampling strategy is employed for this research which is the purposive sampling strategy could also be considered a limitation for the research, due to the fact that it was open bias as to the respondents chosen for it by the researchers’’ contacts in Saudi Arabia who is also an employee in the sector. This meant that the sampling strategy was non-probability based and thus was not scientific in its choice of respondents opening it up for the problem of bias and also making the study almost difficult to generalise its results.
5.4 AREA OF FURTHER RESEARCH
This research covered only the banking sector of Saudi Arabia and there is adequate opportunity for any future research wanting to be done in this regard to expand its scope of study and increase the area to be covered to many organisations within Saudi Arabia or it could be narrowed down to more sectors within the country. This also is an opportunity for further research to be done on how motivation can be used as an effective organisational strategy to aid performance as this research has shown that an increase in motivation would improve job performance but the research did not look into how organisations can use it as an effective organisational strategic tool to aid its performance.