EFFECTS OF MOTIVATION ON EMPLOYEE PERFORMANCE IN COMMERCIAL BANKS BUSN20016: RESEARCH IN BUSINESS RESEARCH PROPOSAL A Research Proposal submitted to Central Queensland University, in the fulfillment of the requirements of BUSN20016 (RESEARCH IN BUSINESS) for the degree of Master of Professional Accounting Student Name: Pradeep Pandey Student ID: S0279442 October 2016 CONTENTS SECTION I INTRODUCTION 3 PROBLEM STATEMENT 4 RESEARCH OBJECTIVES/QUESTIONS 5 JUSTIFICATION OF THE PROJECT 6 EXPECTED RESEARCH OUTPUT/OUTCOME 7 SECTION II CONCEPTUAL FRAMEWORK AND RESEARCH HYPOTHESIS 8 METHODOLOGY 12 SECTION III ORGANISATION OF THE STUDY 13 GANTT CHART 14 PROJECT BUDGET AND BUDGET JUSTIFICATION 15 REFERENCES 16 SECTION I INTRODUCTION Motivation which can be defined by two factors: internal as well as external which generates desire and energy in an individual who are repeatedly interested and are also committed to a job, responsibility or focused towards achieving organizational goals. According to Ran (2009), it is an employer’s task to motivate employees and also creating high job satisfaction among their staff. Motivation refers to “the reasons underlying behaviour” (Guay, 2010). According to Kim & Lee (2008), motivation can be defined as the desire for doing something. Similarly, Herzberg (1959) defines motivation as doing a job related action because an individual wants to. Employee motivation can be broadly categorized into intrinsic and extrinsic motivation. Personal enjoyment, interest or pleasure comes under intrinsic motivation where individual involves in a behaviour that is personally rewarding. Essentially intrinsic motivation is performing an activity for its own sake rather than for external reward. Similarly, extrinsic motivation is driven by external rewards like grade, fame, money and praise. Extrinsic motivation occurs when an individual is motivated to perform a behaviour or engage in an activity to earn a reward or to avoid negative consequences. As we know that employee job performance depends upon number of factors like motivation, appraisals, job satisfaction, training and development and so on, but this research paper mainly focuses on employee motivation which has significant influence on organizational performance. There is a strong bond between motivation and employee performance. In course of providing services, numbers of people engaged or their work experience may not have great significance or value but remunerating them in correct way is of great importance. If an organization aims in achieving its goals and objectives than the employee must be motivated so that they can have the best result. Bateman and Snell (1996), believes that motivation can be defined as the factor that direct, energizes and sustain person’s effort in accomplishing organizational goal. This assignment focuses on a complete research proposal in areas of effect of motivation on employee performance in commercial banks. This research study focuses on how employee job performance has been affected by motivation and how different motivational packages and theories has influenced in the employee workplace which is directly connected with the organizational overall outcome. Organization part of this assignment is followed by four section. In the first section, there comes introduction with problem statement, research objectives, justification of research proposal and expected outcome. Similarly, section II consists of conceptual framework, research hypothesis and research methodology. Section III comprises of organization of the study, Gantt chart, and budget that is needed for doing the research. PROBLEM STATEMENT Employee motivation has always been able to catch attention of managers and researchers alike (Gautam, Mandal and Dalal, 2006). It is well known that an organizations cannot move on without their employees. It is only because of the employees that organization are able to keep their existence in the market for long time. Employees play the major roles and they make a great contribution to the organization in attaining goals. Therefore, only well motivated employees would be able to increase efficiency of the organization and can lead organization in achieving its goals and objectives (Hussin, 2011). Motivation is all about giving your employees good guidance, direction, resources and rewards so that they are inspired and willing to work in their way (Ludhans, 1992). Today due to competitive labour market and limited opportunities for betterment, most of the organization are facing the problem of retaining employees. This leads to significant economic impact and over cost to the organization due to loss of employees which finally constitute loss of knowledge, skill and experience. In context to commercial banks, they are facing many challenges regarding employee retention, training, high cost of recruitment, increased competition, increased rules and regulations implied by the government and different technological advancement offering different services to the customers. The major problem faced by the employees of the commercial banks is feeling demotivated and overworked which is the essence of the study. RESEARCH OBJECTIVES The overall aim of this project is to find out the effect of motivation on employee performance in banking industry. Similarly, the specific objective of this project could be: • To build an effect of monetary rewards on job performance of the employee. • To build an effect of job enrichment on job performance of the employee. • To find out the effect of training on job performance of the employee. • To build an effect of team building on job performance of the employee. RESEARCH QUESTIONS • To what level employee job performance is affected by monetary rewards? • To what level employee job performance is affected by job enrichment? • To what level employee job performance is affected by training? • To what level employee job performance is affected by team building? JUSTIFICATION OF THE PROJECT The essence of this study was to record that employees are not entirely motivated only by monetary rewards but also through task they receive, goal they achieved, better opportunities for future development, working situation and people with whom they work. This study mainly focuses on effect of motivation on employee job performance. This research proposal has following benefits; they are: • It will help those who wish to understand how motivation directs an individual towards organization goal achievement. • This research proposal also helps to understand how motivation shapes an employee behaviour and performance on the workplace. • Managers of the commercial banks can make use of different strategies, theories and different goal. • The outcome received from this research proposal would be beneficial to management team, policy makers of the organization as well as to the researchers. • This proposal will be very useful to any organization as they can understand the importance of motivation on employee job performance. EXPECTED RESEARCH OUTCOMES The result of this research study will provide a basis to an employer in analysing different motivational tools that is suitable for an individual employee in the organization. Similarly, this study helps to understand different factors of motivation that are highly used in the organization and it also provides a wholesome picture about the effect of motivation on employee performance. Performance of an employee depends upon various motivational tools that an organization adopt to achieve organization goals. Based on the data collection, findings and analysis of various aspects, the identified objectives and question in the proposal will be answered below. Therefore, research output is considered important conceptual work for the problem that has been identified earlier in this research proposal. This research will be helpful for organization where employees are lacking motivation in the workplace. Section II CONCEPTUAL FRAMWORK Theoretical literature review Abraham Maslow’s hierarchy of needs theory Hierarchy of needs theory assume that every individual passes through five hierarchy needs and individual must satisfy each level of needs before moving to the next higher level of need (Maslow, 1943). Maslow five level of needs are: Physiological, Safety, Love/belonging, Esteem and Self-actualization. Maslow’s theory assume that level of self-actualization is obtained by only a certain percentage of population. In the long run, the organization can satisfy physiological needs of the employee by the person’s paycheck but attention should be given that other needs such as safety and esteem may be satisfied by pay. Different benefits such as health insurance and retirement plans as well as job security will help employee to satisfy safety needs. Similarly, providing friendly environment where employee can collaborate and communicate with others fulfil social needs of an employee. Employees are also motivated by fulfillment of other social needs like company picnics and other social get-togethers. Opportunities of promotion at work, giving recognition to person’s task accomplishments either verbally or through formal reward systems and different job titles can satisfy person’s esteem needs. And at the end, person’s own development and growth opportunities on or off the job, keen to face challenging and interesting job can only satisfy person’s self-actualization needs. ERG theory ERG theory, which is a modification of Maslow’s hierarchy of needs was developed by Clayton Alderfer. Alderfer divided human needs into three different categories instead of five hierarchy needs of Maslow, they are: - Existence, Relatedness, Growth. Existence is concerned with basic things like hunger, thirst, and safety. Relatedness is maintaining interpersonal relationships with our friends, family, co-workers and employer and growth comes under intrinsic desire like creativity, productive and desire for accomplishing challenging and meaningful tasks. The main implication of this theory is that only by recognizing various needs that may drive an individual at a certain given point to know their behaviour and appropriately motivate them. Fredrick Herzberg’s two factor theory Two factor theory of Fredrick Herzberg’s believes that individual is influenced by motivation and hygiene factors. Herzberg’s investigation relies on a particular question “what do people want from their jobs?” which was investigated among 200 accountants and engineers in the USA. Through his question Herzberg’s identified factors which lead to extreme satisfaction called motivators and factors which lead to extreme dissatisfaction called hygiene. Motivation factors covers achievement, recognition, responsibility, the work itself, growth and advancement which are also called intrinsic factors. Hygiene factor covers organization policy, administration, working environment, supervision, interpersonal relations which are also called extrinsic factors. Empirical Literature Review Money Money is important, that may be given to people for task accomplishment or for performance in different form like wages, incentive pay, bonuses, stock options, company paid insurance or any of the other things. Money has meaning and it can be ensured, giving reward for task accomplishment and as a medium of giving pleasure to people from task accomplishment, providing compensation as a base on performance as much as possible (Koontz and Weihrich,1990; Edwin,1993). Job enrichment According to Koontz and Weihrich (1990), this is making an effort to build greater challenge and achievement into jobs. Job enrichment can be done in different ways like more freedom to worker on deciding work methods, work sequence, acceptance or rejection of the materials used in; providing workers personal feeling of responsibility on their job; let the workers to know how their tasks contribute to the final product; similarly involving workers in the inspection and making alterations of their working environment, such as cleanliness, lightening, plant temperature, and office layout. Training Presenting the way to deconstruct tasks and challenges, and feel less intimidated by their job responsibility, people can be taught to become more motivated towards job. Worker can be demonstrated how to cope in the workplace which ultimately lead to upgrade motivation (Daniel, 2001). The company may take a decision to support employees at the expense of its own for further training which ultimately motivates and helps to retain qualified employees. Team building Team building can be fruitful for both the company and the employee. There will be a healthy competition and each staff gets an opportunity to be on the winning team. Improved team relationships can result greater productivity and morale and lead to better working environment. Pre-existing issues within the team can be easily solved through such exercises. The Conceptual Frame Work Monetary Rewards Performance of employees Job enrichment Training Team building Independent Variable Dependent Variable Figure 1: Conceptual Framework (source: http://www.macrothink.org/journal/index.php/ijhrs/article/viewFile/7504/6270) In above figure employee performance is dependent variable whereas monetary rewards, job enrichment, training, team building are independent variables. Therefore, performance of employee relies on independent variables. Following the above problem statement and objectives, two research hypothesis’s can be drawn that would be tested in this study: • H (1): Null Hypothesis: Motivation does not have any effect on employee performance. • H (2): Alternate Hypothesis: Motivation does have an effect on employee performance. Research Methodology Literature Review Under literature review, there will be in-depth study of relevant literature, and various information that are available from various sources like Google scholar, articles, journals, case study by various authors. A particular analysis of these documents will be done to examine the range to which the repercussions have/have not affected employee performance. (Sharples, 2011). Data Collection Method Cooper and Schindler (2011) defines data collection methods as a process of collecting data only after researcher has identified the information type that is needed which is; questions that are of investigative nature and also identified the type of desired date (nominal, ordinal, interval, or ratio) for each of the questions. Primary data is focused on this study which is collected from the target sample where a structured questionnaire was used to collect data. The researcher divided questionnaire into four parts: the first part was developed to study demographic data which focuses on respondent’s personality characteristics which likely to come up with factors influencing employee motivation and its impact on performance of the employee. Similarly, second part examine extrinsic factors influencing level of employee motivation where questions are based on extrinsic factors that we have already discussed in literature review. Respondents are provided with five multiple choice options representing preferences like strongly disagree, disagree, neutral, agree and strongly agree. Third part focuses on intrinsic factors that influence employee job satisfaction where five multiple choice options are provided representing preferences like strongly disagree, disagree, neutral, agree, and strongly agree. Fourth part of questionnaire shows the effect to motivation on employee job performance where questions with multiple choice options representing preferences like strongly disagree, disagree, neutral, agree and strongly agree. Data Analysis Method Under data analysis methods qualitative and quantitative methods are used as research methodology. Online forums and surveys are used as qualitative analysis whereas figures, pie charts, excel sheets, mathematical and statistical modelling which are available online and via various scholarly articles are used as quantitative analysis. Descriptive statistics technique is used for analysing quantitative data and hypothesis testing can be another technique considering likelihood of type I and type II (relating the data assist in accepting or rejecting the hypothesis). Also, motivation analysis will be used to check to what extent does motivation affect employee job performance. Similarly, concepts from literature will be used as a reference in establishing the findings in analysing qualitative data. Qualitative and quantitative methods are used as research methodology under data analysis method. Population and Sampling Design A total of 412 employees of a certain bank from various departments were used as a study population. The study population can be defined as total collection of elements which researcher would like to study and make speculation. Population refers to individual participants where researcher make a measurement and is a unit of study (Cooper and Schindler, 2011). From the part of population which are selected as a sample, conclusion is made about the whole population (Cooper and Schindler, 2001). Sampling gives the opportunity of better interviewing (testing), depth investigation of wrong, missing or doubtful information. Similarly, there is better supervision and processing with complete presentation (Deming, 1990). This research proposal considers all above methodologies in solving the problem stated as above. Understanding of different literature review and the responses that has been obtained through questionnaires in finding a better solution, data will be placed systematically first, then the arranged data will be grouped together on the basis of common factors or are categorised which will then be presented or analysed for better solution or findings. Section III ORGANISATION OF THE STUDY The organization of the research is as follows: • Research proposal will come under chapter one as mentioned in the assignment. • Case study of motivation will come under chapter two. • Different methodology like literature review, data collection method, data analysis method, population and sample design will come under chapter three. • Analysis of research and findings will come under chapter four. • Major findings will be summarized and discussion of their implications will be done on chapter five. GANTT CHART The following table shows the time timeline for whole project to be completed. START DATE END DATE DESCRIPTION DUARNATION (days) 09/25/16 10/07/16 Project Proposal 12 10/08/16 12/08/16 Literature Review 60 12/10/16 01/30/17 Data Collection 54 01/022017 31/02/2017 Data Analysis 31 03/01/17 03/30/17 Final Report Submission 29 MILESTONES AND DELIVERABLES PROJECT BUDGET AND BUDGET JUSTIFICATION The budget that is needed for the proposed research study is around $3500, completing within the timeframe (30th March 2017) as stated in the above Gantt chart. Above mentioned budget has been drawn up for the following reasons: • The depth study of literature review requires use of different journal articles, textbooks and other online resource and they need to be paid for its use. It will cost around $800. • Similarly, different cost associated with printing, travelling and posting, mailing in course of data collection in the form of questionnaires and surveys. It will cost nearly $1800. • Cost associated with easy access to charts, tables and different government figures for data analysis. Budget should be made available for this purpose too and it will cost around $900. In summary, Purpose Estimated Amount to be Spent Literature Review $800 Data Collection $1800 Data analysis $900 Total Budget Estimated $3500 References Omollo, P.A (2015). Effect of motivation on employee performance of Commercial bank in Kenya: A case study of Kenya Commercial Bank in Migori Country. International Journals of Human Resources Studies. 5(2).2162-3058. Shields. J., Brown, M., Karine, S., Dolle, C., Samardzic, A., Mclean, p., Johns, R., O’leary P. (2016). Managing Employee Performance and Reward (2nd ed.). Australia, Cambridge University Press. Carleton, k. (2011). How to motivate and retain knowledge workers in Organization: A review of the literature. International Journals of Management. 28(2).469-470. Allen, R. & Helms, M., (Fall 2002). Employee perceptions of relationships between strategy rewards and organizational performance. Journal of Business Strategies, 19 (2). 115-139. Luthans, F. (1995). Organizational behaviour. (7th ed.). McGraw-Hill, Inc. Guay, F (2010). Intrinsic, identified, and controlled types of motivation for school subjects in young elementary school children. British Journal of Educational Psychology, 80(4), 711-735. Gautam, M., Mandal, k., & Dalal, R.S. (2006). Job satisfaction of faculty members of Veterinary sciences: an analysis. Livestock Research for Rural Development 18 (7). Maslow, A.H. (1943). A Theory of Human Motivation. Psychological Review, 50(4), 370-96. Herzberg, F., Mausner & B. Snyderman, B. (1959) The motivation to work, New York: John Orodho A. J. (2005). Elements of Motivation and Social Science Research Methods. Chintaloo, J. & Mahadeo D. (2013) Effect of Motivation on Employees” Work Performance at Ireland Blyth Limited. Proceedings of 8th Annual London Business Research Conference Imperial College, London, UK, 8-9 July ISBN:978-1-922069-28-3 Khan, K. U (2010). The Relationship between Rewards and Employee Motivation in Commercial Banks of Pakistan. Research Journal of International Studies, 14,37-52. Lai, H-H (2011), ‘The influence of compensation system design on employee satisfaction’, African Journal of Business Management, vol 5, no. 26, pp.1078-10723. Jibowo, A.A (2007). “Effect of motivators and hygiene factors on job performance among extension workers in the former Western State of Nigeria”. The Quarterly Journal of Administration, 12 (1):45-54. Assam, A.P. (2002). Motivation and Job Satisfaction. Unpublished MSc Dissertation University of Lagos, Nigeria. Ali, R., & Ahmad, M. s., (2009). The Impact of Reward and Recognition Programs on Employee’s Motivation and Satisfaction: An Empirical Study. International Review of Business Research Papers, 5(4), 270-279.