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Literature Review of Theories of Motivation in Employees

Paper Type: Free Essay Subject: Business
Wordcount: 5404 words Published: 1st Jan 2015

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Even though the research topic is fairly comprehensible and the nature of the chosen business is precise, still the problem is to some point ordinary in all other business as they are related with working place and employees. Thus enough literature concerning motivation has been gathered in this chapter as it is the significant facts in market that is powerfully important for organisations. Further more the gathered stuffs involving the associated theories is including articles, books, electronic journals and web resources. Motivation as mixture of wishes or desires and ideas which forces persons to do responsibility; on the other hand, it is the result of supports or encouragements and incentives (Wong, 2000).

The reason of literature review and it has been divided in three parts as follows

ƒ¼ structure or frame the issues under examination

ƒ¼ recognize applicable theories, processes/methods and ideas

ƒ¼ Place the research any research should add something new (Ghauri et al. 1995).

Staff / Employee Motivation

Incentive or motivation; it is very clear and simple word the satisfaction of needs, wants, desired of employees in the firms. For instance if we ask the employees any organization why are you working they would straight forward earn money to fulfill our needs and desire and other every day services. Inspiration is a remarkable aspects that directors occasionally have faceting up to describe it however management not at all have some sort of complexity to shape it not in while it is not in attendance in the place of work (Messmer, 2001).

What motivates employees-what makes them tick - subject of perennial fascination. it is particular significant for practical leaders in any industries, such as private sector, public sectors, to be sure to any employees who works with others to think above question.

What is motivation? A employees motivated, they could be men or women when they want to perform something. Motivation is not like an incentive while people could be encouraged or made enthusiastic by an incentive their main motive for performing some task might be fear of punishment motivation cover up all causes which motivate the way in which employee acts.

Some of US professors such as Abraham Maslow and Frederick Herzberg, they have discussed a lot and mad major contribution for knowing of motivation, our general phrase jab satisfaction( John ,2006).

In the current situation in the market place, where firms look for competitive edge, motivation is solution for retention and performance of employees. It doesn't matter the economic environment the aim is to make place of work which is attractive and motivating the workforce where the worker force want to stay grow and contribute the their experience,

Skill, and knowledge motivation is in general explained as the emotional forces which verify the route of a employee's persistence in the face of difficulties and obstacles,

The route of individual's actions shows to many possible behaviour which a individual could employ in while persistence shows when employees faced with any difficulties and obstacles, they keep trying or give up. Motivation is very important for working independently along with for working together and successful group work. The final focal point of the companies is effective retaining those employees who are talent and achieve the gaols and reach beyond expectation.

It is the responsibility of human resource management and the leader's organisations to promote environment superiority throughout base of Study, researches, theories and practical examples (HRMagazine, Jul2010).

Motivating the employees and giving them rewards are the most significant duty of the managers and the same time challenging duties which managers must perform at work place to get the staffs to strengthen them and exploit their effort for improved the performance . Supervisors along with managers have to recognize the fact which why and how their staffs need to be motivated. Motivation can be seen in two way of intrinsic or extrinsic. It involves individual fulfillment and generally concentrates on the liabilities of duty. The main goal is to persuade the staffs for better work. Intrinsic motivation normally is the most important sort of motivation or incentives in addition the efficiency place of work and their maintenance is straight linked to the encouragement of inspired and innovative opinion holders. At the same time extrinsic motivation which is not internally happiness, it is positioned in the norm of the payment; the combination of motivation could be preservative result. Thus HR subdivision could be able to raise the overall performance and the conservation of the raise in motivation (Armstrong, 2010).

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In order to know the motivational factors, primarily, it has to be known what motivation is. First have a look what motive is not and why? Some people look the motive vaguely as individual characteristic. Certainly people get motivated in different way, every one is can not motivated in the same approach, in addition motivational issues differ from one circumstances to another. For example in the college or universities in some classes students are more motivated than other classes as result of comprehensible reasons.

Therefore some times motivation misinterpreted as result of misreading whereas motivation shows to methods in which person's attempts are aimed at and continued towards achieving a objectives (Shapiro, 2004).

Fundamentally, motivation could be expressed by three key parts which are persistence, direction, and energy .the energy part is assessing of strong point. An individual who is motivated try to put more attempt and he/she work hard. However the superiority of the attempt should be measured. It is not needed that high stages of attempt take a individual to a positive duty until the attempt has been controlled in way that will advantage for the company. In addition companies search for attempts that are more dependable and aimed at towards a objectives and motivation involves determination capacity in order to achieve that particular objectives (Haslam, 2004).

Motivating the staffs for better performance is a main concern for companies and the directors who have duty for motivating the employees. For example in European countries according investigation it is found Belgian and German staffs are the majority committed employees as the least committed employees are found in Franc (Coulter, 2009).

The significance of motivation:

The reading of motivation is focused, fundamentally, with why people act in a certain way or why people shows their reaction in a certain way in common expression motivation can be explain as way and perseverance of action. Motivation described in four common characteristics. Motivation is illustrated as a person trend. Every people are distinctive which means every individual has unique behavior and characteristics. The major theories of motivation permit for this exclusivity to be expressed in one way or another (Ryan, 2004).

Motivation is explained usually as on purpose, motivation is understood to be under staff's manage and actions which are pressured by motives. Motives involved two things of most significant are; in which factor people gets activated (arousal), the second in which the strength of an individual to hold in preferred actions. Motivation is not behavior and performance itself motives concerns action and the internal, external factors which have influenced on people choices (Mullins, 2008).

Need for motivation:

A connection between the firm and its employees is influenced by what motivates the employees to work, the payment and achievement they obtain from it. The occupation in firm and the work design have importance impact on the happiness of employees and their rank performance. The management needs to understand how best to elicit the co- operation of employee and associated their attempts to abating the goals and objectives the firms.

Motivation is a hypothetical construct utilized to describe the beginning, direction strength, perseverance, and quality of performance, particularly objective guided behavior Motives are theoretical concepts exploited to describe why do people do what they do? Motives are differentiated from associated ideas for instance, aims and strategies, (the process which is used to obtain the goal and therefore to persuade motives).for instance a person take actions to hunger (motives) by departing to restaurant or food shop (strategy) to obtain the food (goal). A motivation is normally interpreted as quite general requirements, or wants which boost the people to begin purposeful action (Brophy, 2004).

Employee engagement:

in the past few years, companies have adopted different phrase, one of them is employee engagement" to capture the sort of motivation necessary in today's work environment. It is the rational successor to prior term in the development of work, work development has begun in 1970s, empowering the employees has begun In 1980s and 1990s.

At the current situation now the work is more demanding and there is failure management at the work place, companies are doing their best to enhance the work place to make sure that employees are psychologically engaged in doing their duty. in some times employees engagements have been employed in quite different approaches (Thomas, 2009)

Moving beyond employee's engagement and motivation:

At the present many companies are concentrating on improving the level of workforce engagement with good motive, in the fast changing the market situation most organization now challenge, where the responsibilities and rules are frequently evolving, companies should depend on workers to perform In their own in approaches consistent with organizational cultures, values and objective, and faced with the a issues global economic environment, many companies requiring to do more with less , they are trying their best. How ever some companies that taking a lot of advantages in high levels of employees engagement on the other hand struggle with performance problems at present situation workers are energized by objectives and goals and are enthusiastic to assist their companies do well. But they themselves regularly refer which they do not feel optimally creative.

To obtain the most from engaged workers, companies must position them to direct their extra efforts efficiency. That is motivation to contribute have to be matched with ability to contribute. It can be seen this is quite understandable opinion has some significant implications for people management practices and the strategic use of workers Support .

Support for accomplishment, impact the capability of engaged team to make maximum input, it has two key components, the initial, personal utilization are needed that workers are effectively matched their duties. Such as their abilities and skills are efficiently put to good use, In organizing the talent in the organisations the managers need to consider not only the need of jab And worker's capabilities to meet them .

The second part an enabling the environment, includes the configuration of work arrangement, such that the mangers facilitate, rather than hold back. In enabling environment, workers have the vital resources to get the duty. For example (information, technology tools and financial support )and the employees able to concentrate the most significant responsibilities with out having to work around obstructions in the form non important duty.

Above figure shows the staffs efficiency that include employees engagement in addition to organization behavior to helps for staffs to be successful (Thomas, 2009)

Employees' engagement benefit

Engaging the workforces is more vital now than ever. Firms have remained concentrated on staffs in the recent economic down turn have do well in maintaining and even raising the motivation stages employee engagements is also delivering better financial out comes employee performance , and customer satisfaction according global research by Hay, they surveyed 41 client firms across industries and one million workers in the world comparing, the research which have been conducted late 2008 with the outcomes of surveys, these same customers carried out previous down turn, to place firms for victory in the down turn of economic and beyond, though staff engagement alone is not adequate.

So many companies are concentrated on employee engagement with good reason, but the manager plays good rule. They have to do extra efforts to deliver superior outcome

I an enables employee, workforces are efficiently to place such that their abilities and skills are put optimal exercise, in also engaged work forces have the important resources, information technology tools, financial support and equipment to get the duty done, the employees also focus on their key accountability with out wasting the time, the following benefits come from the employees engagement


1: organization performance: firms engage the their employees to increase the out performance on both revenue, and growth, profitability.

2: Customer satisfaction:

firms which have high levels of workforce engagement shows customer satisfaction shows scores 22% higher than firms which low levels employees engagement

3: Employee retention

Organizations with high level of employees engagement shows the turn over rates 40 percent less than firms with low engagement well engaged gives a lot of improvements and create considerably great business results , financial performance, and more loyal customer , during good times and bad of the business, companies retain these workers and sustain these employees (Bob, 2010).

How to Improve Employee Motivation, Commitment, and Productivity?

People are our most valuable asset, yet it is accurate, there is evidence exits which companies put a lot of effort and struggling to meet service and production demands recognizing that these results are linked the skills and abilities of the employees, companies must consider the nature of the employees engagement in order to achieve the high productivity, profitability and better customer service, workers join in a organization because of kind pay scale, benefits package, but how long they say how effectiveness they are, the research shows employees are engaged when .

They understand from the managers what is expected from them

Employees have the right resources and equipment to do their duty correctly

In the past week employees received recognition or praise for doing good perform

The managers at workplace who encourage the their development and care about them as person

employees have the opportunity, to perform the best very day

employee's ideas appear to count

the mission of the organization makes the employees feel like their work is very significant ,

Employees have best friend at work place, some one totally rely upon.

Employees have the opportunity to grow.

The Impact of Employees with Low Engagement:

Manager should considered regarding the devastating costs of low staffs engagement, research shows, the cost those companies with low employee engagement was very high, according from one research in 2004 in USA the cost was around $350 billion per year In lost of profitability and productivity,

Involving illness, absence, and other issues occurred when the employees are not engaged, and also it has impacts the psychological, and physical well being employees, the cost to improve the employee engagement can create a large pay off, more significant for those involved in the worrying work of corrections.

The approach to encourage the workers has become part companies is through relationship worker who feel disengaged psychologically from their managers or supervisors do not perform well in such situation for corrections of the employees who tend to hang back and perform minimum, because the employees do not trust any one cares.

How to keep the employees engaged:

the first step managers need to proof a truthful sense of caring the employees and what is significant for them, mangers can help workers transfer of their rules and knowledge, skill that they bring to their duty. The managers have to discuss workers power and how these can make diverse forges significant ties and links that guide worker commitment, employees engagement stay with the company longer and more loyal to quality and growth, the managers have to consider the following things for employing engagement

The employees must strong relationship with their employees

There should clear communication with their managers

There should strong co-workers connection

There should be apparent lane set for focusing on what they do best

Colleagues, so they will take risk for excellence (Nink, 2004).

Motivation and leadership

At the current turbulent environment increase competition and volatile technological change more and more mangers are coming to recognize that they should persuade their staffs to be innovative and creative, the research shows that employees innovator can basically contribute the to organizational effectiveness and survival, for creativity to happen in the companies the managers need to help and promote it as they are the person who are most educated about the staffs work result should be creative and they have significant influence over the framework within that creativity can happen.

In other companies have different management style some management style does not support the motivation some management dose support, in order to understand the management style; w e need go through different management style

The rule of managers in enhancing motivation :( management styles)

Managers deal with their staffs in different approaches, some are strict with their staff and like to be control in complete task, as others more relaxed and permit the workers to perform their own working lives, employees motivations are depend the how the organization are managed, and also it is depend the personality of the managers

Some are autocratic, democratic and etc these styles has a lot impact on employees motivations in order to know we need explain some of them.

Autocratic: These types of managers prefer to make the decisions by them selves and they closely supervise the employees, they do not trust employees and simply give orders, there is one way communication.

Paternalistic: this type of mangers give more attention to social needs and ideas of their employees, they are interested in how pleased employees feel and in many approach, managers act as a father figure, managers consult the staffs over problems and listen to their feed back or ideas, the managers make decisions in the best of the employees interest, as the managers believe the staffs need direction in this way this style can be autocratic style.

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Democratic style: this of managers trust In their staffs and they encourage then to make decisions, managers delegate them authority to do and listen their advice, there is two communication way, this is only style of management that enhance the employee's motivation because employees have freedom there is no any gab between the top level and bottom level, the employees make decisions and they are involved in all issues in the organization as compare with other styles, this is only style management that can improve the level of motivation in the companies .

EMPLOYEE EMPOWERMENT: it is another style of management which puts in managers in the rule give motivation, coach sponsor and decision is being pushed down to the lowest stages of the firms. The ways organization structured and designed are changing.

Empowerment includes delegating the decision regarding the task, the managers and employees have both of responsible, the purpose of empower is to provide growth opportunity, enhance the motivation, productivity and satisfying the employees , employee empowerment is the most efficient when the manager has clear achievable aims, in this style the employees got well motivated, the organization's management work with employees, they encourage them, by giving promotion,

empower the employees and providing resources such as money, time to offer help by way legality and managers accessing the information so staffs can make educated decisions,

Lists the rules applied to improve workplace motivation in the United States. Development of self-respect; Provision of precise vision and systems for safety and health activities; Evaluation of ideas within the organization.( Roxanne. ,2002)

Two factors theory by Hertzberg

Frederick Hertzberg expressed another good theory of employee's motivation called two factors theory, he found out which factors are motivated the staffs at work places, he interviewed a group professionals management, accountants to tell him about their experiences and the incident which occurred at work, and also those factors which motivated them and those one did not motivate them, basically it means the employees either pleased nor displeased from work place,

Hertzberg believed two factors have separate measurement contribution at work place.

He said there are some certain factors which are linked with environments and surrounding the job they de motivate the employees. The first factors called hygienic factors which involves the existence or nonexistence of duty dissatisfiers such as

interpersonal relation, pay, company policy, and working condition, when the hygiene factors are weak in the organistion the employees are dissatisfied at work, having strong good hygiene easily eliminate the dissatisfactions from the employees, the second factors have impact on job satisfactions, the managers concentrate high level requirements and involve such opportunity for growth, responsibility, recognition and achievement,

Hertzberg believed when the motivators are not present employees are neutral work, if the motivators are present employees are highly motivated and pleased. Therefore hygiene factors and motivators characterize tow unique factors which have impact on motivation.

All above motivational factors are different with their distinct impact on the workers, as I mentioned above as well if the company wants to remove or eliminate the dissatisfactions from the employees then it must enhance the hygiene which can enhance employee motivations. Working situation cause employees to be displeased but their alteration does not direct to high stage satisfaction and motivation, motivations factors such as challenge of accountability, and recognition should be in place previous to workers will be highly motivated. The implications of this theory for the managers are more obvious on one hand implanting the hygiene factors are remove the dissatisfaction from the workers but it cant motivate the employees in high level of satisfactions on the other hand opportunity for personal growth, responsibility , and recognition and it develops high achievements, the management rules is to eliminate dissatisfactions which is give hygienic factors to meet basic requirements (arcimc, 2008).

Motivational Factors


Employees are motivated when their accountabilities are significant and they engage their values and abilities, the most motivating accountabilities are those that develop experiences, responsibilities are important when the employees fit a person's values

. Caring individual is motivated by duty which helps others. Such as teaching, managers are motivated by the accountability to create the procedures necessary to implement the strategy,

When the people take responsibility, they accept the consequences of the options which they make, thus they must be accountable for the results in their own selections. If any employees make mistake, they have confess, if not will doubt in their credibility in the future, the indvidividal responsibility will encourage others to be similarly responsible, thus no body can doubt other people . in side of the companies very employees is devoted for general success of the companies, so struggle to obtain the goal in other hand the employees realize the factors which how their determine duty fit in bigger image of the company, they are able to make decision naturally and they become accountable for all their behaviors ( Maccoby,2010).


Widely understanding excellent performance by employees and teams is very important of human resource program. Recognition is key motivating the employees and producing on going responsibility to continues improvement, the managers have got responsibility for coaching and monitoring, sitting training and development goals reviewing the performance for example (case study) company Granite rock has got recognition day per year in every branch the senior managers be present at and take part in face to face award ceremonies.

Recognitions are meant that in the companies where staffs are working for

Ending any duty, employees are being realized by their managers, when the staffs complete their duties within determined time, the managers give some good feeling for their employees (John, 2008).


some persons are driven by the need to do extremely well to obtain in relative to a set of standards and to struggle to succeed, achievement is getting done what ever the goals In which employees set them self that is not important to earn money, the achievement is the final level of what a persons is performing within the limits of law. it is a goals and mission in which persons can obtain their dream. It is the realized and the reality of a pleased dream. Though it is essential to understand that achievement of person' mission is done in the way of the fire (Maillet, 2003').


Job enrichment:

Job enrichment purpose to introduce more interest, variety and important to work place , this methods has come first by the IBM and then it spread out in every where, MacDonald follow does follow this approached. It is basically gives the employees motivation and degrees of freedom and control over how to achieve the goals . so many duty in which they to be done by the staffs, thus job is distributed among the employees, all employees must do nearly all the duties( Miner, 2007 ).

Company policy:

Every thing the employees do should be in accord to the firm's policy, the style of leadership feature of the firm has influence on motivation, if the philosophy of the management is strict and high control, the employees have hard time to participate or make suggestions, it will affect on the managers who motivate the employees

Company policy is a outline that is made by the top level of management for all staffs to pursue it, procedures or policies are different in companies as the culture are distinctive and dissimilar based upon their objective(Miller , 2009)


Hierarchy of Needs by Maslow:

Perhaps the greatest recognized theory of motivation. Abram Maslow expressed the humanist view within emotional and such he gives actually .Individualistic methods to the subject of motivation. Before looking at inside biological issues while driving the procedures for actions he is concerned in the cognitive issues which push the employees towards positive structures of actions, he was concerned to recognise the needs which pushed the employees in to actions beyond the mainly fundamental achievement of endurance needs at the base and other emotional needs in the direction of the top.

Human have go forward beyond necessities of simple endurance and are now for driven in direction better attainment, the maximum of these self actualisation. This is the wish to obtain all that it is likely for person to obtain that is present in all humans (Gorman, 2003).

Abraham Maslow was emotional expressed that there is hierarchy of 5 needs in each individual as follows

Physiological needs

Safety needs

Social needs

Esteem needs

Self-actualization needs

He expressed that in each stage of the need hierarchy should be fulfilled until the subsequently needs takes over and turn into dominant. Every person moves up to the hierarchy of requirements from one stage to other. He divided the hierarchy requirements of upper than lower stages. Maslow put emotional and safety requirements in the inferior and on other side Maslow measured social, esteem and self actualization requirements in the upper order requirements. The lower stages are being fulfilled on the outside where as the upper stages of requirements are fulfilled within (Koontz & Weihrich, 2006).

The company's managers are applying the Maslow's theory to motivate the workforces in performing the work to please their requirements. The theory shows towards a level where it expressed once the requirement is significantly pleased, the person is no more motivated to please that requirement.

That is why if there is need to motivate the employee, it is suggested that it will be better if we understand which what stage of requirement of need is the individual is on in the hierarchy and then focus on pleasing that need or above the stage of that n requirement (Jamal, (2007).

Maslow's hierarchy of needs theory, source taken (Kreitner, 2009).

In order to explain and understand the difference between the lower and stage requirements and higher levels requirement the Maslow's hierarchy needs (5 level of model) we have go in each step in order to be in suitable position to apply it on the selected topic.

The 5 levels, begins from the base of the hierarchy

Physiological needs:

these involves water, food, oxygen, and food, the requirements any thing which could survive, the basic needs of the life (Pandey, 2006).and also it has been described and highlighted by two other school of psychology. The behaviourists have challenged which individual's basic force is physiological. Maslow comments that could stem from the detail which more behaviouristic study has been carried out with rats and it seems that have few motivations other than physiological .that means by describing the fundamental human needs are planned, he expressed through out his life all human being have got desire, they are practically always desiring some thing (Goble,2004)

it is normally in western countries that employees or individuals are motivated due to satisfaction, of their basic or physiological requirements, that is clear if some is hungry then food should be given food for them food is the number of main concern for them, the rest of requirements are less significant for them. Thus it can be concluded once they got the food which basic needs have given for them, then they can easily start their duty, they will able to complete their work, with proper concentration (Dessler, 2005)


This is the next stage of the Mallows theory that is safety and security requirements. The employees should work in very peaceful place where they needs to be feel that the environment is has very good situation in terms of security, they are needs to be free of the physical hurt and scarcity of fundamental physiological requirements. The aim is of the this level providing a good security and safety for the employees which includes , self protection, law permanent area , safe atmosphere, to survive pea


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