CURRENT SITUATION OF EMPLOYEE MOTIVATION AT- 123docz.net

―Chapter 3: Recommendations for enhancing employee motivation at BIDV‖

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CHAPTER 1

THEORY BACKGROUND ON EMPLOYEE MOTIVATION

1.1. Overview of motivation

1.1.1. Motivation and employee motivation

In the process of working, the motivation of each individual makes the difference in working attitude of the employees. Many contemporary authors have also defined the concept of motivation.

Motivation has been defined as: the word motivation is derived from the word

―motivate‖ which means to move, to push or persuade to act to satisfy a need. It is the process of stimulating people to actions to accomplish the goals. (Butkus and Green, 1999); an internal drive to satisfy an unsatisfied need (Higgins, 1994); the reason why people do the things they do, and in a work setting, motivation is what makes people want to work (While Reece and Brandt, 1990).

Motivation is defined by Robbins (2013) as the process by which a person‘s efforts are energized, directed, and sustained toward attaining a goal. When someone is motivated, he or she will persistently exert high effort in a direction that benefits his or her organization in order to achieve goals. While, in the same manner claimed that in order to achieve goals, individuals must be sufficiently stimulated, have a clear picture on what to achieve, and have commitment to put utmost effort for a long enough period of time and never give up in realizing their aim quoted as Yudhir (2012) saying.

In the author‘s view, motivation is the processes that account for an individual‘s intensity, direction, and persistence of effort toward achieving a goal.

Hence to engage in the practice of motivating employees, employers must understand the unsatisfied needs of each of the employee groups. Bruce and Pepitone (1999) argued ―Helping employees attend to their own motivational needs is one of the most powerful interventions employees can make to increase their organization‘s potential for success‖. Motivating employees creates the double

benefit for encouraging the employees to get their goals and increasing the effective of organization.

1.1.2. Role of employee motivation

The importance of motivation is obvious and no needed to doubt about. People always need motivation in order to reach their goals. In fact, it is one of the most important and driving factor for reaching the goals. In other word, it is the reason why everybody attempted to reach the aim. In fact, the role of employee motivation‘s not only necessary for organization and themselves but also for society.‖

 For employees: People have always been existence of the needs to satisfy both physically and mentally. When employees feed, they are met their demand or another words, when they are highly motivated can greatly improve a business.

When employees are motivated, they are more likely to impact positive to productivity, working atmosphere and many other areas. Besides, motivation helps employee perfect themselves. When employees are motivated rightly, they tend to put more effort into the learning process, summarize the experience in the job, thereby improving knowledge and improve themselves.‖

 For organizations: The organizations have effective employee motivation strategy will get better productivity (amount produced per employee). This can lead to lower unit costs of production and so enable a firm to sell its product at a lower price. It also lower levels of absenteeism as the employees are content with their working lives as well as lower levels of employee turnover (the number of employees leaving the business) - this can lead to lower training and recruitment costs. Motivated employees are likely to improve product quality or the customer service, thence gaining the firm‘s reputation as prestigious business and good employers hence making it easier to recruit the best workers.‖

 For society: Individuals, families and organizations are the basic elements to form a society hence employee motivation highly impact to the success or failure of society. The most significant target of any society is enhancing the individual‘s life quality, employee motivation is basically meet it when

employees are satisfied their needs. Employee motivation also indirectly impact to the development of society through improving of individuals and organizations.‖

1.1.3. Types of motivation

Motivation at work can take place in two ways:

Extrinsic motivation: This refers to what is done to and for people to motivate them. It arises when management provides such rewards as increased pay, praise or promotions (Armstrong, 2006). Extrinsic motivation is a behavior that is influenced by external rewards. Praise or positive feedback, money, and the absence of punishment are examples of extrinsic motivation (Deci, 1980).

Intrinsic Motivation: This is derived from the content of the job. It can be described as the process of motivation by the work itself in so far as it satisfies people‘s needs or at least leads people to expect that their goals will be achieved.

Intrinsic motivation is self-generated in that people seek the type of work that satisfies them. The factors affecting intrinsic motivation include responsibility (feeling of the work is important and having control over one‘s own resources, freedom to act, scope to use and develop skills and abilities, interesting and challenging work and opportunities for advancement (Armstrong, 2006).

1.1.4. Motivation process

There are many studies did research about motivation process, and each of them had a different way to describe the motivation process which they did give out.

However, there are not many different between them. Hence, the researcher decided to choose the simplest motivation process to apply to this thesis which involves three elements: motives/need, behaviors/drivers, goals/rewards.‖

Figure 1.1: Motivation process

Source: Deci (1975); Deci & Ryan (1985) Summary:

1) Need is the origin of any motivated behavior.

2) Drives are directed at fulﬁllment of needs.

3) Once the goal is attained, the physiological or psychological balance is restored and the drive is cut off.

Needs set up drives/behaviors aimed at goals. Need is the origin of any motivated behavior. Need is a felt deprivation of physiological or psychological well-being.

Needs exist in each individual in varying degrees. When an individual recognizes a need, he is driven by a desire to fulﬁll the need. Drives are directed at fulﬁllment of needs. Drives are action-oriented and provide an energizing thrust toward reaching a goal. Incentives or goals are the instruments used to induce people to follow a desired course of action. Once the goal is attained, the physiological or

psychological balance is restored and the drive is cut off.

1.2. Motivation theories

There are a number of approaches to the study of motivation, each containing a number of specific related theories. The motivational theories answer the question that why one kind of job is motivating & satisfactory for the employees as compared to any other job. The managers must comprehend the motivational factors of the employees because motivated employees perform quite well than non- motivated ones. Following are the theories of motivation that are helpful to understand the motivation of employees.

1.2.1. Maslow's hierarchy of needs theory

Maslow hierarchy of need as a theory in psychology proposed by Abraham Maslow in his 1954 book Motivation and personality.

Maslow hierarchy of need is often portrayed in a shape of pyramid (Maslow, 1954) with the largest and most fundamental level of needs at the bottom, and the need for self-actualization at the top. In ascending order, beginning with the most basic need, the needs are psychological, safety, social, esteem and self-actualization needs.

According to Maslow, people are motivated to satisfy the lower needs before they try to satisfy the higher need.

Figure 1.2: Maslow's Hierarchy of Needs

Source: Maslow, A.H. (1943)

 Psychological Need

Psychological needs are literal requirements for human survival. Air, food and water are metabolic requirements for survival for all humans. An individual to satisfy these psychological needs is greater than the drive to satisfy any other type of need. These needs are satisfied through the wages and salaries paid by an organization (Maslow, 1954).

 Safety Need

With their physical needs relatively satisfied, the individual's safety needs take precedence and dominate behavior. In the absence of physical safety – due to war, natural disaster, family violence, childhood abuse, etc. – people may (re-)experience post-traumatic stress disorder or trans generational trauma. In the absence of economic safety – due to economic crisis and lack of work opportunities – these safety needs manifest themselves in ways such as a preference for job security, grievance procedures for protecting the individual from unilateral authority, savings accounts, insurance policies, reasonable disability accommodations, etc. Safety and Security needs include: Personal security, financial security, Health and well-being, Safety net against accidents.

 Social needs

Maslow believes that humans are social animals, so human cannot live and work alone and they must work in a certain social environment, social relationships in particular. That means that the human desire to be accepted, attention, attention, love and sympathy, etc.‖

 Esteem Need

According to (Maslow, 1954), all humans have a need to be respected and to have self-esteem and self-respect. Esteem presents the normal humans desire to be accepted and valued by others. People need to engage themselves to gain recognition and have an activity or activities that give the person a sense of contribution, to feel self-valued, be it in a profession or hobby.

 Self-Actualization Need

(Maslow, 1954), describe that what a man can be, he must be. This form the basis of the perceived need for self-actualization. Maslow describes this desire to become more and more what one is, to become everything that one is capable of becoming.

One can achieve this not through promotions but by mastering his/her environment and setting and achieving goals (Maslow, 1945).

Maslow theory makes three important contributions. Firstly, he identifies important need categories which can help managers to create effective positive reinforces.

Second contribution is that, the theory is helpful to think of two general levels of

needs, in which lower level needs must be satisfied before higher level needs become important. Third, Maslow sensitizes managers to the importance of personal growth and self-actualization. However, Maslow theory has some problems. Maslow's theory is often criticized for not applicable in cases such as the military, police, fireman, etc. who are willing to risk their safety to health others or parents who are sacrificing their basic needs for their kids.

1.2.2 Two-factor theory of Herzberg

In 1959, Frederick Herzberg, a behavioral scientist proposed a two-factor theory or the motivator-hygiene theory. According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg, the opposite of ―Satisfaction‖ is ―No satisfaction‖ and the opposite of ―Dissatisfaction‖ is ―No Dissatisfaction‖.

Figure 1.3: Two factor - theory

Source: Herzberg (1959) Herzberg classified these job factors into two categories: Hygiene factors and Motivation factors.

Hygiene factors: Hygiene factors are those job factors which are essential for existence of motivation at workplace. These do not lead to positive satisfaction for long-term. But if these factors are absent / if these factors are non-existent at workplace, then they lead to dissatisfaction. In other words, hygiene factors are those factors which when adequate/reasonable in a job, pacify the employees and do not make them dissatisfied. These factors are extrinsic to work. Hygiene factors are also called as dissatisfiers or maintenance factors as they are required to avoid dissatisfaction. These factors describe the job environment/scenario. The hygiene factors symbolized the physiological needs which the individuals wanted and expected to be fulfilled. Hygiene factors include:

 Salary: Salary structure should be appropriate and reasonable. It must be equal and competitive to those in the same industry in the same domain.

 Company Policies and administrative policies: The company policies should not be too rigid. They should be fair and clear. It should include flexible working hours, dress code, breaks, vacation, etc.

 Supervision: Herzberg (1959) stated, ―Supervision is second in the order of frequency of factors leading to low job attitudes‖. It means the competency or ability of the supervisor. This includes the supervisor‘s willingness to teach or delegate authority, fairness, and job knowledge.‖

 Working conditions: Herzberg et al. (1959) noted that the physical condition of the workplace could be considered relevant to the hygiene needs of the worker.

Factors that involve the physical environment of the job: amount of work, facilities for performing work, light, tools, temperature, space, ventilation, and general appearance of the work place. (F. Herzberg, 1959, P.48)‖

 Interpersonal relations: The relationship of the employees with his peers, superiors and subordinates should be appropriate and acceptable. There should be no conflict or humiliation element present.

 Job Security: It may be the employee‘s job tenure and/or the company‘s stability or instability – objective signs of the presence or absence of job security, not the feelings of security.

CURRENT SITUATION OF EMPLOYEE MOTIVATION AT

Providing promotion opportunities to employees‖