Muhammad Umair

Prague College/ Teeside University

MSc International Management
Factors affect employee motivation
Course title: Managing People in Organizations
Course instructors:
Dave Gannon
Stefano Cavagnetto

Abstract

This essay explains the major drives of motivation and elaborates what are the motivation factors
that affect the overall motivation of employee inside the organization? What intrinsic and
extrinsic factors those make an impact on employee motivation? Also discuss about the
motivation theories that exist in correlation with those motivation factors. In this essay it is
recommended that how to use those theories to keep employees motivated and if applied
properly it brings positive impact on employee performance.

What are factors affect employee motivation? And existence of theories that support
and explain how these factors effect on motivation.
Employees are considered the backbone and asset of organization because they play an
important role to achieve companys long term goals and implement its vision. It is important for
the organization that employees must enjoy doing their job and have a positive attitude toward
their job and should be satisfied with their position in organization. Motivation is the catalyst that
gives them the reason to achieve more and perform in a better way to achieve more and it makes
an impact on overall performance of the organization. Employee motivation in recent era has
been taken more seriously because of its importance in realization of companys goals; it lowers
employee turnover rates and better utilization of the resources as different motivation theories
exist to support this argument.
Motivational factors have two broader categories in general, extrinsic motivational
factors and intrinsic motivational factors. Understanding these two categories enables
organization management to apply appropriate type of motivational factors that are more
appropriate to its employees. Extrinsic motivational factors are stimulis that are coming from
the external environment that makes impact on employees performance and the employees
works hard to achieve goals because in the end he/she knows they will be rewarded. In contrast
Intrinsic motivational factors are the one in which stimulis comes from within the employee,
individual has desire to perform such task because he/she understands that the results coming
after are on the same page as his/her beliefs.
Employee compensation and benefit play an important role in the performance of
employee, in OECD and other developed countries employees are offered with several benefits

like medical and dental plan, health and dependent care, relocation assistance, long term care
insurance, pension etc along with the basic remuneration. Recently Samsung has introduced a
new program in the company to take feedback from the current employees about their healthcare
and wellbeing program, and they have given the options to employees that they can tell company
about what they want to be included in their benefit plan. The offer of this new program is to
give employee high proportion of value and keep them engaged. This step taken by Samsung
motivates employees as it is related with the Victor Vroom theory of expectancy, as this theory
states that employees must be provided by appropriate compensation and benefits according to
their job in organization. This is actually quite related that they can lose their motivation to work
in both cases of under salaried or over salaried.
Job security is another extrinsic motivational factor that effects on employee
performance. SAP is a huge multinational company which exists almost everywhere in the
world; it is known for work life balance and opportunity to work anywhere in the world and of
course free meals are also famous with the company. On the other hand Google is famous for its
laid back working environment and even one can work from home as well as some gym at the
workplace. These companies are making progress because they have given their employees sense
of security and belongingness so they love doing their work with motivation. It ensures them
health and safety at the work place. This corresponds to the Maslows need for security that is
the secondary need for human beings. Psychologically when security needs of human beings are
fulfilled they tend to be more productive with the fear of losing something it gives them
confidence to try new things to improve their performance. On other hand Tesco promotes team
building and group activities in the stores to engage employees in different team building
activities so they can stay close and work as a team. Tesco also offers them working home

opportunity. It all builds together a perfect environment to learn new things with people from
team and groups. When employees are socially connected with others they perform better in
work setting. Sense of belongingness makes them satisfied with the work. It corresponds to the
Herzberg two factor theory which elaborates how advancement, recognition and nature of work
itself plays role in the motivation on employee.
Working conditions at work place are very important and they impact directly on the
performance of workers. A day before the arrival of new IPhone 6, labor rights union found so
many human rights violations going on at the supplier factory of parts for Apple in China. The
company Catcher Technology Co. in Suqian, was found to be involved in serious health, safety,
environmental and human rights violations. This investigation has shown serious concerns over
the working conditions in the second tier supplier company of Apple. It was also reported that
due to lower performing factory labor they had to import extra workers from the sister factory in
another city that clearly indicate how important are the working conditions at workplace. If
working conditions are up to the mark then definitely it creates an environment for optimal
performance. In Herzberg's motivation-hygiene theory the expression "cleanliness" is utilized as
a part of the sense that these are support elements. These are extrinsic to the work itself, and
include factors like company policies, supervisory practices, or wages/salary. Herzberg refers to
cleanliness factors as "KITA" components, which is an acronym for "kick in the ass", the
procedure of giving motivators or danger of discipline to make somebody do something.
Interpersonal relations and communication devices a productive environment because it
allows interchanging the ideas and relationships builds trust. Roffey park a nonprofit
organization which focuses most on the interpersonal relationships and audit learning. They
believe by simple candid discussion they can rearrange the organization structure. Everyone

without can participate in the healthy argument without any hieratical hindrance and can
contribute their beliefs and then they take feedback from coworkers, manager and subordinates
to evaluate it. They motivate the employees by having a feeling that there presence matter in the
company it doesnt matter how small or big is their position in organization. This makes them
socially more connected with the work place and the people around there. Social needs are
secondary human need on Maslows hierarchy needs scale, in organization if social factor is
missing or lagging than it can adversely affect the performance of organization as it is also one
of the drives in motivational factors.
Boeing introduces the Employee Assistance Program that is a confidential service to help
its employees to solve their problems in their personal lives. This program basically connects
Boeing employees and their families with the counseling professionals so they can discuss
problems with them. This Program also helps in legal and financial problems to some extent. All
Boeing employees and their families can use this program free of cost. A question may arise in
minds of us that, why Boeing is so interested in personal lives of its employees? Because Boeing
knows if it tells its employees to leave their problems at the door then probably employees will
also leave their motivations too at the door. Coca Cola also has similar Employee Assistance
Program. Maslows need of social bounding or affiliation works behind this kind of programs
and it keeps stress levels low among employees and that concludes higher productivity plus
enhances belongingness with the organization. This corresponds to Maslows theory of basic
needs as we all being human beings feel need of belongingness if this factor of belongingness is
missing in the organization than it will be very challenging to work for employees and there will
be no or very small amount of motivation toward work.

According to Forbes Qualcomm is the top company with the highest employee development
and growth rate. It has more defined career ladder for all of its departments and employees have
a higher chance to grow in relation to their performance. Employees put their full potential to
work hard to go further on their career path and get the higher position. This is also a motivating
factor that triggers employees to work hard. As McClelland's acquired needs theory states there
are three acquired human needs as follows:

Need for achievement

Need for power

Need for affiliation

If in organization employee is being rewarded well and achievements are recognized by the
organization it fulfills the need of achievement and recognition. Accordingly if employee get
promoted to better position his need for power also gets fulfilled and he/she stays motivated and
feel being important part of organization.
Responsibility includes both the responsibility and authority in relation to the job.
Responsibility refers to the employees control over his or her own job or being given the
responsibility for the work of others. Gaps between responsibility and authority are considered
under the company policies and administration factor. Lack of effort as a cause of achievement
failure is more punishing than lack of ability. But at the same time being as human being we
want to grow up on the career ladder and have more responsibilities and achieve better position
in organization it corresponds to the Herzbergs Motivation-Hygiene Theory. As in one of part it
discusses about growth and responsibility.

Employees are looking to have some challenge or learning at work place so organization
need to have a look on high achievers and to keep them with it is duty of manager or seniors to
find something challenging and interesting. If high achievers do not get feedback for a long time
they get frustrated and probably quit their job. Supervisor and managers can make a positive
impact on employees motivation by recognition of employee efforts and accomplishments.
Recognition is an important aspect to keep employees motivated. It is cost effective and simple
so often it is often over looked by managers for solving retention problems. Because employees
want to feel that they are important part of organization and share the success of it. Employers
often look on monetary benefits they can offer to their employees to keep them motivated,
however this solution is shortsighted. In contrast employees find intangible aspects of their job as
more important and motivating. Most of them they just do not work with the company for the
future earning or the pension plan but they want recognition buy manager to be part of the
success of company. It can be done in many ways like employee of the month program, point
program or advancement opportunity. Employee recognition refers to the Herzbergs two factor
Theory.
Autonomy is another factor which is focused by many organizations in this era.
Autonomy is basically giving them more room to make decision by themselves without have it
approved from the top managers. It gives them more independence to do things. This way they
work more and take initiatives by themselves. It also allows them to find new ways of getting the
things done inside and outside the department. It brings innovation in processes and builds trust
of employees on organization and they engage themselves more and are ready to go extra mile
for the company. This phenomenon corresponds to the Maslows hierarchy of needs at the top
stage of self-actualization.

Conclusion
As discussed these intrinsic and extrinsic factors affect the employee motivation is a
positive way. Sometimes intrinsic factors are more important than extrinsic and sometimes vice
versa but it depends on the type of organization and type of employee and their personal
preferences and situation. To understand the importance of those factors it better to analyze the
situation of employees on the pyramid of Maslows hierarchy of needs because the benefit
company is going to offer for an employee. A business organization with motivated work force
can achieve its goal and keep itself align with the long term strategy. And can also keep
employees motivated by using the right blend of these motivational factors.

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