Employee motivation is an intrinsic and internal drive to put forth the necessary effort and action towards work-related activities. It has been broadly defined as the "psychological forces that determine the direction of a person's behavior in an organisation, a person's level of effort and a person's level of persistence". [1] Also, "Motivation can be thought of as the willingness to expend energy to achieve a goal or a reward. Motivation at work has been defined as 'the sum of the processes that influence the arousal, direction, and maintenance of behaviors relevant to work settings'." [2] Motivated employees are essential to the success of an organization as motivated employees are generally more productive at the work place. [3]
Motivation is the impulse that an individual has in a job or activity to reaching an end goal. There are multiple theories of how best to motivate workers, but all agree that a well-motivated work force means a more productive work force.
Fredrick Winslow Taylor was one of the first theorist to attempt to understand employee motivation. His theory of scientific management, also referred to as Taylorism, analyzes the productivity of the workforce. Taylor's basic theory of motivation, is that workers are motivated by money. He viewed employees not as individuals, but as pieces of a larger workforce; in doing so his theory stresses that giving employee's individual tasks, supplying them with the best tools and paying them based on their productivity was the best way to motivate them. Taylor's theory developed in the late 1890s and can still be seen today in industrial engineering and manufacturing industries. [4]
In the mid 1920s another theorist, Elton Mayo along with Fritz Roethlisberger and William Dickson from the Harvard Business School, began studying the workforce. His study of the Hawthorne Works, lead him to his discovery of the Hawthorne effect. The Hawthorne effect is the idea that people change their behavior as a reaction to being observed. Mayo found that employee's productivity increased when they knew they were being watched. He also found that employees were more motivated when they were allowed to give input on their working conditions and that input was valued. Mayo's research and motivational theories were the start of the Human Relations school of management.
However, today there are studies and systematic reviews are conducted to find out whether the Hawthorne effect exists, and the level of impact it can make under certain conditions. [5]
Thanking employees can help them, especially if done before they engage in difficult or distressing tasks. A study conducted in 2024 showed that gratitude can help increase employees’ sense of social worth regarding themselves, which helps them to persist challenges more effectively than if the gratitude is expressed after the task. [6]
The design of an employee's job can have a significant effect on their job motivation. Job design includes designing jobs that create both a challenging and interesting task for the employee and is effective and efficient for getting the job done. [7] Four approaches to job design are:
Several studies validate the effectiveness of using job design techniques to increase employee motivation. A study conducted by Campion and Thayer [9] used a job design questionnaire to determine how job designs fostering motivation affected employees. Campion and Thayer [9] found that jobs with more motivational features have lower effort requirements, a better well-being, and fewer health complaints. The study also found that jobs scoring high on the motivational subscale of the questionnaire contained employees who were more satisfied and motivated, had a higher rating pertaining to job performance, and had fewer absences. [9] Hackman. [10] conducted a study pertaining to work redesign and how redesigning work could improve productivity and motivation through job enlargement or enrichment. The study's results found that redesigning a job can improve the quality of the product or service that is provided, increase the quantity of work, and can increase work satisfaction and motivation. [10] The last study on job design was conducted by Dunham, [11] who wanted to determine if there was a relationship between job design characteristics and job ability and compensation requirements. Dunham [11] believed organizations were overlooking job ability requirements and compensation when they enlarged or enriched employee's jobs. The study found that organizations were not taking into account the increased job ability requirements that job enrichments or enlargements entail nor were the organizations increasing compensation for employees who were given extra tasks and/or more complex tasks. [11]
Using rewards as motivators divides employee motivation into two categories: intrinsic and extrinsic motivation. Intrinsic rewards are internal, psychological rewards such as a sense of accomplishment or doing something because it makes one feel good. Extrinsic rewards are rewards that other people give to you such as a money, compliments, bonuses, or trophies. This applies to Douglas McGregor's Scientific Theory that formed Theory X, [12] which applies to the extrinsic wants of employees. The basis for the motivation is supervision structure and money. Scientific Theory is based on the grounds that employees don't want to work so they have to be forced to do their job, and enticed with monetary compensation.Theory Y, also derived from McGregor's theory, says that employees are motivated by intrinsic or personal reward. [12] With this theory different factors can be used to heighten the intrinsic benefit that employees are receiving at their job."
Many studies have been conducted concerning how motivation is affected by rewards resulting in conflicting and inconsistent outcomes. Pierce, Cameron, Banko, and So [13] conducted a study to examine how extrinsic rewards affect people's intrinsic motivation when the rewards are based on increasingly higher performance criteria. Pierce et al. [13] found that rewarding people for meeting a graded level of performance, which got increasingly more difficult, spent more time on the study's activities and experienced an increase in intrinsic motivation. Participants who were not rewarded at all or only rewarded for maintaining a constant level of performance experienced less intrinsic motivation. [13] Another study that examined the effects of extrinsic rewards on intrinsic motivation was conducted by Wiersma. [14] Wiersma [14] conducted a meta-analysis to summarize the inconsistent results of past studies. The meta-analysis by Wiersma [14] concluded that when extrinsic rewards are given by chance, they reduce intrinsic motivation. This result is supported when task behavior is measured during a free-time period. [14] However, it is not supported when task performance is measured when the extrinsic reward is in effect. [14] Wiersma [14] also found that these results cannot be generalized to all situations. A study conducted by Earn [15] also examined the effects of extrinsic rewards on intrinsic motivation. Earn [15] wanted to know if extrinsic rewards affected a person's intrinsic motivation based on the subject's locus of control. Earn [15] found that pay increases decreased intrinsic motivation for subjects with an external locus of control whereas pay increases increased intrinsic motivation for subjects with an internal locus of control. The study also found that when the controlling aspect of the extrinsic reward was made pertinent by making pay dependent on a certain amount of performance, higher pay undermined the intrinsic motivation of subjects and their locus of control was not relevant. [15]
The Job Characteristics Model (JCM), as designed by Hackman and Oldham attempts to use job design to improve employee intrinsic motivation. They show that any job can be described in terms of five key job characteristics: [16] [17]
The JCM links the core job dimensions listed above to critical psychological states which results in increased employee intrinsic motivation. This forms the basis of this "employee growth-need strength." The core dimensions listed above can be combined into a single predictive index, called the Motivating Potential Score .
1. Increase employee participation by implementing quality control "circles". Quality control circles involve a group of five to ten problem solving employees that come together to solve work-related problems such as reducing costs, solving quality problems, and improving production methods. [18] Other benefits from quality control circles include an improved employee-management relationship, increased individual commitment, and more opportunities for employee expression and self-development. [18]
A study by Marks et al. [18] focused on assessing the effect that quality circles had on participating employees and found that the attitudes of employees who participated in quality circles were influenced in the areas concerning participation, decision making, and group communication. Although group communication was influenced, communication through the organization as a whole was not and neither was employee's personal responsibility for their work. The results of this study suggest that quality circles can provide employees with informational and social support that can help increase their motivation.
2. Increase motivation through employee participation by using open-book management. Open-book management is when a company shares important financial data with employees. [19] Sharing the information empowers employees by putting trust into them. [19] Employees become personally and meaningfully involved with the organization beyond just doing their assigned tasks, which increases their motivation and production [19] Open book management is a four-step process. [19] The first step involves employers sharing financial data with their employees. Employees need to know how the company, as a whole, is doing financially. Next, employers must teach their employees how to read and interpret the financial data. Employees can look at all the data a company gives them; however, to understand the data, they must know how to interpret the numbers. Third, employees have to be empowered to make necessary changes and decisions for the success of the organization. Employers should treat their employees like partners to promote increased employee motivation. The last step involves employers paying their employees a fair share of profits through bonuses and incentives. Bonus numbers must be attached to numbers that employees see regularly and can influence the financial data. [19] With these steps in mind, the friction between employees and between employee/management can be drastically reduced.
Four factors must exist for any employee participation program to be successful: [20]
"Work motivation is a set of energetic forces that originate both within as well as beyond an individual’s being, to initiate work-related behavior and to determine its form, direction, intensity, and duration” (Pinder, 1998, p. 11). [21]
Work-life balance is an employee's perception of how a proper balance between personal time, family care, and work are maintained with minimal conflict. [22] Employers can use work-life balance as a motivational technique by implementing quality-of-work-life programs. Examples of such programs include flextime, workplace wellness, and family support. Flexible work schedules can allow an employee to work whenever they can as long as a certain number of hours are worked each week and some employers allow their employees to work from home. [23] Sometimes employers utilize flextime schedules that allow employees to arrive to work when they choose within specified limits. [24] A wellness program can involve having an exercise facility, offering counseling, or even having programs set up to help employees lose weight or stop smoking cigarettes. [23] Family support programs involve help with parenting, childcare, and some programs allow employees to leave for family purposes. [23]
One study found that men often identify themselves with their career and work roles while women often identified themselves with the roles of mother, wife, friend, and daughter. [22] The Sloan Foundation found that even though women enjoy working as much as men, women prefer to work nights and weekends if time needs to be made up instead of cutting their hours. [25] A study conducted by the Alliance for Work-Life Progress surveyed employees to find out the type of workplace flexibility employees say they would like to use in the following year. [26] Burrus et al. [26] found that 71 percent of people want an occasional opportunity to adjust their schedule, 57 percent want to work from a location other than their office, 73 percent want to make their work-life flexibility arrangement official, and 12 percent want to work fewer hours.
Employee Engagement
A motivated employee becomes engaged in their workplace. Employee engagement is an important part of an organization's success. Research has found that organizations with engaged employees have three times higher profit margins compared to organizations with disengaged employees. [27] Shareholder returns, operating income, and revenue growth have also had higher financial performance in employee engaged organizations. [27] In addition, employee engagement is linked to lower absenteeism within an organization. [27] Employers who practice employee motivation and engagement techniques in their organization will likely see an increase in overall business performance.
Abraham Maslow viewed motivation as being based on a hierarchy of needs, of which a person cannot move to the next level of needs without satisfying the previous level. Maslow's hierarchy starts at the lowest level of needs, basic physiological needs. [28] Basic physiological needs include air, water, and food. Employers who pay at least a minimal living wage will meet these basic employee needs [29] The next level of needs is referred to as safety and security needs. [28] This level includes needs such as having a place to live and knowing one is safe. Employers can meet these needs by ensuring employees are safe from physical, verbal and/or emotional hazards and have a sense of job security. [29] The third level of needs is social affiliation and belonging. [28] This is the need to be social, have friends, and feel like one belongs and is loved. Implementing employee participation programs can help fulfill the need to belong. [29] Rewards such as acknowledging an employee's contributions can also satisfy these social and love needs. [29] The fourth level on the hierarchy is esteem needs. [28] This level is described as feeling good about one's self and knowing that their life is meaningful, valuable, and has a purpose. Employers should use the job design technique to create jobs that are important to and cherished by the employee. [29] These first four needs, Maslow called D-Needs (deficient).
The last level Maslow described is called self-actualization. [28] Maslow called this the B-Need (being). This level refers to people reaching their potential states of well-being. An employer who ensures that an employee is in the right job and has all other needs met will help the employee realize this highest need. [29] "Maslow further expanded self-actualization into four needs: cognitive, aesthetic, self-actualization, and self-transcendence." [30]
Frederick Herzberg developed the two-factor theory of motivation based on satisfiers and dissatisfiers. Satisfiers are motivators associated with job satisfaction while dissatisfiers are motivators associated with hygiene or maintenance. [28] Satisfiers include achievement, responsibility, advancement, and recognition. Satisfiers are all intrinsic motivators that are directly related to rewards attainable from work performance and even the nature of the work itself. [28] Dissatisfiers are extrinsic motivators based on the work environment, and include a company's policies and administration such as supervision, peers, working conditions, and salary. [28] Herzberg believed providing for hygiene and maintenance needs could prevent dissatisfaction but not contribute to satisfaction. [28] Herzberg also believed that satisfiers hold the greatest potential for increased work performance. [28] Work-life programs are a form of satisfier that recognizes the employee's life outside of work which, in turn, helps motivate the employee. Improving a job to make it more interesting can improve the overall satisfaction an employee is experiencing on the job. A dissatisfier looked at by employees is how relationships form with colleagues. [31] Colleagues play an important role of the workplace as they are all interacting daily. Forming high quality relationships with peers can extrinsically improve employee motivation. [31]
The expectancy theory of motivation was established by Victor Vroom with the belief that motivation is based on the expectation of desired outcomes. [28] The theory is based on four concepts: valence, expectancy, instrumentality and force. [28] Valence is the attractiveness of potential rewards, outcomes, or incentives. Expectancy is a person's belief that they will or will not be able to reach the desired outcome. Instrumentality is the belief that a strong performance will be well rewarded. Force is a person's motivation to perform. [28] In general, people will work hard when they think that it is likely to lead to desired organizational rewards. [32] Vroom thought that people are motivated to work toward a goal if they believe the goal is worthwhile and if they perceive that their efforts will contribute to the achievement of that goal. [2]
Force = Valence x Expectancy x Instrumentality
As Human Relations management took hold, increasing intrinsic motivation and attending to individuals became a larger concern for employers. Increasing intrinsic motivation could be achieved through the Goal Setting Theory by Edwin A. Locke. Employers that set realistic and challenging goals for their employees create employee motivation. [33] By allowing employees to engage in their job, and achieve satisfaction when reaching a goal it can entice them to want to keep setting new goals to reach new successes and yield superior performance. [33] The theory is logical because employees are going to set more difficult goals but the goals will be attainable with increased effort. Once in the pattern of setting goals, employees can also develop goal commitment, where they are more likely to stick to jobs until they are finished. [33]
Employees that work alongside their employers in the goal-setting process have the intrinsic benefit of participating in decisions, which can lead to higher motivation as they are empowered in their workplace. [34] As employees reach these personally set goals, management can reinforce those efforts by showing recognition toward their success.
Dr. Gary Latham collaborated with Edwin Locke to expand upon his goal setting theory of motivation with five key principles designed to motivate the accomplishment and completion of a particular objective. These five key principles align closely around the SMART goal setting strategy designed to define objectivity and achievability. The five key principles are:
Integration of Conventional with Islamic Theories
The integration of Western management theories with Islamic principles, specifically the Maqasid Shariah, for employee motivation involves harmonizing individual rights and dignity with Islamic values. This synergy emphasizes social justice, fair treatment, continuous learning, and ethical leadership. By aligning professional development, teamwork, intrinsic motivation, work-life balance, and recognition with Islamic objectives, organizations can cultivate a workplace that not only prioritizes individual well-being but also upholds broader societal and moral dimensions, fostering motivation in accordance with Islamic principles. [35] As a result, Abdullah et al. (2023) has developed a unique employee motivation index by fusing McClelland and Maqasid Shariah in their studies.
In general, incentives are anything that persuade a person or organization to alter their behavior to produce the desired outcome. The laws of economists and of behavior state that higher incentives amount to greater levels of effort and therefore higher levels of performance. For comparison, a disincentive is something that discourages from certain actions.
Expectancy theory proposes that an individual will behave or act in a certain way because they are motivated to select a specific behavior over others due to what they expect the result of that selected behavior will be. In essence, the motivation of the behavior selection is determined by the desirability of the outcome. However, at the core of the theory is the cognitive process of how an individual processes the different motivational elements. This is done before making the ultimate choice. The outcome is not the sole determining factor in making the decision of how to behave.
The two-factor theory states that there are certain factors in the workplace that cause job satisfaction while a separate set of factors cause dissatisfaction, all of which act independently of each other. It was developed by psychologist Frederick Herzberg.
Theory X and Theory Y are theories of human work motivation and management. They were created by Douglas McGregor while he was working at the MIT Sloan School of Management in the 1950s, and developed further in the 1960s. McGregor's work was rooted in motivation theory alongside the works of Abraham Maslow, who created the hierarchy of needs. The two theories proposed by McGregor describe contrasting models of workforce motivation applied by managers in human resource management, organizational behavior, organizational communication and organizational development. Theory X explains the importance of heightened supervision, external rewards, and penalties, while Theory Y highlights the motivating role of job satisfaction and encourages workers to approach tasks without direct supervision. Management use of Theory X and Theory Y can affect employee motivation and productivity in different ways, and managers may choose to implement strategies from both theories into their practices.
Content theory is a subset of motivational theories that try to define what motivates people. Content theories of motivation often describe a system of needs that motivate peoples' actions. While process theories of motivation attempt to explain how and why our motivations affect our behaviors, content theories of motivation attempt to define what those motives or needs are. Content theory includes the work of David McClelland, Abraham Maslow and other psychologists.
In industrial and organizational psychology, organizational citizenship behavior (OCB) is a person's voluntary commitment within an organization or company that is not part of his or her contractual tasks. Organizational citizenship behavior has been studied since the late 1970s. Over the past three decades, interest in these behaviors has increased substantially.
The overjustification effect occurs when an expected external incentive such as money or prizes decreases a person's intrinsic motivation to perform a task. Overjustification is an explanation for the phenomenon known as motivational "crowding out". The overall effect of offering a reward for a previously unrewarded activity is a shift to extrinsic motivation and the undermining of pre-existing intrinsic motivation. Once rewards are no longer offered, interest in the activity is lost; prior intrinsic motivation does not return, and extrinsic rewards must be continuously offered as motivation to sustain the activity.
Self-determination theory (SDT) is a macro theory of human motivation and personality that concerns people's innate growth tendencies and innate psychological needs. It pertains to the motivation behind people's choices in the absence of external influences and distractions. SDT focuses on the degree to which human behavior is self-motivated and self-determined.
Motivation crowding theory is the theory from psychology and microeconomics suggesting that providing extrinsic incentives for certain kinds of behavior—such as promising monetary rewards for accomplishing some task—can sometimes undermine intrinsic motivation for performing that behavior. The result of lowered motivation, in contrast with the predictions of neoclassical economics, can be an overall decrease in the total performance.
Transactional leadership is a type of leadership style that focuses on the exchange of skills, knowledge, resources, or effort between leaders and their subordinates. This leadership style prioritizes individual interests and extrinsic motivation as means to obtain a desired outcome. It relies on a system of penalties and rewards to achieve short-term goals.
Managerial psychology is a sub-discipline of industrial and organizational psychology that focuses on the effectiveness of individuals and groups in the workplace, using behavioral science.
Organizational ethics is the ethics of an organization, and it is how an organization responds to an internal or external stimulus. Organizational ethics is interdependent with the organizational culture. Although it is to both organizational behavior and industrial and organizational psychology as well as business ethics on the micro and macro levels, organizational ethics is neither organizational behavior nor industrial and organizational psychology, nor is it solely business ethics. Organizational ethics express the values of an organization to its employees and/or other entities irrespective of governmental and/or regulatory laws.
Compensation and benefits refer to remuneration to employees from employers. Which is the payments or rewards provided to an individual for the work that has been completed.
Positive psychology is defined as a method of building on what is good and what is already working instead of attempting to stimulate improvement by focusing on the weak links in an individual, a group, or in this case, a company. Implementing positive psychology in the workplace means creating an environment that is more enjoyable, productive, and values individual employees. This also means creating a work schedule that does not lead to emotional and physical distress.
Pay-for-Performance is a method of employee motivation meant to improve performance in the United States federal government by offering incentives such as salary increases, bonuses, and benefits. It is a similar concept to Merit Pay for public teachers and it follows basic models from Performance-related Pay in the private sector. According to recent studies, however, there are key differences in how pay-for-performance models influence federal employees in public service roles. James Perry is one scholar who has conducted such studies. His research reveals that public servants tend to be more intrinsically motivated, and thus, are prone to have a negative reaction to monetary incentives. There is still debate, however, on what exactly makes the public sector different.
Work motivation is a person's internal disposition toward work. To further this, an incentive is the anticipated reward or aversive event available in the environment. While motivation can often be used as a tool to help predict behavior, it varies greatly among individuals and must often be combined with ability and environmental factors to actually influence behavior and performance. Results from a 2012 study, which examined age-related differences in work motivation, suggest a "shift in people's motives" rather than a general decline in motivation with age. That is, it seemed that older employees were less motivated by extrinsically related features of a job, but more by intrinsically rewarding job features. Work motivation is strongly influenced by certain cultural characteristics. Between countries with comparable levels of economic development, collectivist countries tend to have higher levels of work motivation than do countries that tend toward individualism. Similarly measured, higher levels of work motivation can be found in countries that exhibit a long versus a short-term orientation. Also, while national income is not itself a strong predictor of work motivation, indicators that describe a nation's economic strength and stability, such as life expectancy, are. Work motivation decreases as a nation's long-term economic strength increases. Currently work motivation research has explored motivation that may not be consciously driven. This method goal setting is referred to as goal priming.
Reward management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization.
Public Service Motivation (PSM) is an attribute of government and non-governmental organization (NGO) employment that explains why individuals have a desire to serve the public and link their personal actions with the overall public interest. Understanding the theory and practice of PSM is important in determining the motivations of individuals who choose careers in the government and non-profit sectors despite the potential for more financially lucrative careers in the private sector.
Job characteristics theory is a theory of work design. It provides “a set of implementing principles for enriching jobs in organizational settings”. The original version of job characteristics theory proposed a model of five “core” job characteristics that affect five work-related outcomes through three psychological states.
Employee recognition is the timely, informal or formal acknowledgement of a person's behavior, effort, or business result that supports the organization's goals and values, and exceeds their superior's normal expectations. Recognition has been held to be a constructive response and a judgment made about a person's contribution, reflecting not just work performance but also personal dedication and engagement on a regular or ad hoc basis, and expressed formally or informally, individually or collectively, privately or publicly, and monetarily or non-monetarily.
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