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Project is employee motivation related to employee performance in the organisation. And this thesis aims to provide information on how employees can be intrinsically and extrinsically motivated to perform well in organisations.
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STUDY OF EMPLOYEE MOTIVATION AND PERFORMANCE
Acknowledgement
DECLARATION
Name of the student
Preface
This project is focused on the relationship between intrinsic and extrinsic motivation and employee performance. The thesis is a literature research and thus a review by the work of others. In earlier research on this topic conducted by Vroom was concluded that a positive correlation between motivation and performance did not exist. However, later research proved that it is indeed possible to motivate employees intrinsically and extrinsically to perform well. It appears that when the organisation provides certain job characteristics, employees can be motivated to perform well in the organisation. And it also appeared that intrinsic factors have more effect on the relationship than extrinsic factors. This project is divided in five chapters; an introduction to the problem, a chapter about employee motivation, a chapter about employee performance and one about how both types of employee motivation have an effect on performance. At last, in chapter five, the conclusion is presented, together with a discussion and managerial implications.
intrinsically and/or extrinsically. Problem statement To what extent can the different types of employee motivation influence the performance of employees at the workplace?
Research Questions
Chapter 2: Employee Motivation
Chapter 2: Employee Motivation In the following chapter the concept motivation is explained. It seems that motivation can be conceived in many different ways; e.g. many researchers tried to formulate motivation but all proposed different approximations. For example Herzberg’s theory of motivation (1959) is still used nowadays. Herzberg was one of the first persons who distinguished between intrinsic and extrinsic motivation. And that distinction could clarify and therefore help motivating employees. In this chapter some definitions will be mentioned, together with an introduction of the theories of Maslow (1943) and Herzberg (1959). But more importantly a separation between intrinsic and extrinsic motivation is made. This separation is also helpful to clarify the relationship between employee motivation and performance. The concept motivation The first question that arises is: “why managers need to motivate employees?”According to Smith it is because of the survival of the company. It is important that managers and organisational leaders learn to understand and deal effectively with their employee’s motivation; since motivated employees are necessary to let the organisation being successful in the next century. She also argues that unmotivated employees are likely to expend little effort in their
his own definition of motivation: “motivation becomes the degree to which an individual wants and chooses to engage in certain specified behaviours”. The overall success of the organizational project depends on the project team’s commitment which is directly related to their level of motivation. As employees are the main resources for organizations’ business activities, the issues of employees’ motivation will critically decide organizations’ success. It is evident that mangers need to motivate employees to obtain the desirable results for the organisation. And it can be stated that there is consensus about the facts that motivation is an individual phenomenon, it is described as being intentional, it is multifaceted and that the purpose of motivational theories is to predict behaviour. It seems that Herzberg and Maslow were among the first researchers at this topic and their theories are still being used today. Since these theories clarify the concept of motivation and they are useful for the separation of motivation in intrinsic and extrinsic motivation, they are explained in the next paragraph. Herzberg and Maslow Herzberg (1959) developed a well-known motivation theory, namely the Two- Factor Theory; he distinguishes in his theory between motivators and hygiene factors. Important is that factors are either motivators or hygiene factors, but
never both. Motivators are intrinsic motivational factors such as challenging work, recognition and responsibility. And hygiene factors are extrinsic motivational factors such as status, job security and salary (intrinsic and extrinsic factors are further described in the next paragraph). Motivating factors can, when present, lead to satisfaction and hygiene factors can, when not present, lead to dissatisfaction, but the two factors cannot be treated as opposites from each other. Herzberg defines motivation in the workplace as: performing a work related action because you want to. Below a table is presented with Herzberg’s motivators and hygienes. As seen in the figure, motivators are intrinsic conditions to the work itself and hygienes extrinsic conditions to the work. Motivators (leading to satisfaction) Hygienes (leading to dissatisfaction) Achievement Company policy Recognition Supervision Work itself Relationship with boss Responsibility Work conditions Advancement Salary Growth Relationship with peers Security The Two-Factor Theory of Herzberg is related to Maslow’s theory of motivation, named Hierarchy of Needs. Maslow (1943) states in his need- hierarchy that there are at least five sets of goals, which are called the basic needs, namely: physiological, safety, love, esteem and self-actualization. And
In fact, Herzberg, Mausner and Snyderman (1959) redefined Maslow’s (1943) Hierarchy of Needs into their two categories named: hygienes and motivators. This is one of the first attempts to make up the difference between intrinsic and extrinsic motivation. And they emphasized that satisfaction and dissatisfaction cannot be treated as opposites from each other. It can even be stated, that the motivator needs of Herzberg are very similar to the higher-order needs in Maslow’s Theory of Needs. It can be stated that Herzberg’s Two-Factor Theory and Maslow’s Hierarchy of Needs are two related theories. And it seems that these two theories form the basis for later motivational theories, since they make a very clear
distinction between intrinsic and extrinsic motivation. Intrinsic and extrinsic motivation are explained in the next paragraph. Intrinsic and extrinsic motivation As described earlier, motivation can be separated in intrinsic and extrinsic motivation. It is explained as follows:
