Recognition And Employee Motivation

Published Date: 02 Nov 2017

Faisal Iftikhar Satti

Department of Management Sciences, Bahria University, Islamabad

Contents

Introduction

Every organization and business wants to be successful and have desire to get constant

progress. The current era is highly competitive and organizations regardless of size,

technology and market focus are facing employee retention challenges. To overcome these

restraints a strong and positive relationship and bonding should be created and maintained

between employees and their organizations. Human resource or employees of any

organizations are the most central part so they need to be influenced and persuaded towards

tasks fulfillment.

For achieving prosperity, organizations design different strategies to compete with the

competitors and for increasing the performance of the organizations. A very few

organizations believe that the human personnel and employees of any organization are its

main assets which can lead them to success or if not focused well, to decline. Unless and until,

the employees of any organization are satisfied with it, are motivated for the tasks fulfillment

and goals achievements and encouraged, none of the organization can progress or achieve

success.

The focus of this study is to enlighten that how an organization through its employees can

achieve success and effectiveness. The purpose of the study is to analyze the impact of

employees’ motivation on the performance of employees’. The study has two sub-objectives;

firstly the factors that increase motivation of employees are to be determined. Secondly the

relationship of employee motivation and employee performance is to be examined.

2. Literature Review

2.1 Motivation

Employee motivation is a process, which accounts for an individual’s intensity, direction and

persistence of effort towards attaining a goal (Robbins et al., 2007). Therefore, intensity relates

to how hard a person tries, while direction is the channel through, which a job is performed.

Persistence is a measure of how long persons can maintain their effort (Robbins et al., 2007).

Through employee motivation, an organization can achieve a competitive advantage through

higher productivity and improved customer service (Stone, 2005).

According to Webster’s New Collegiate Dictionary, a motive is "something a need or desire

that causes a person to act". "Motivate, in turn, means "to provide with a motive," and

motivation is defined as "the act or process of motivating". Consequently, motivation is the

performance or procedure of presenting an intention that origin a person to capture some

accomplishment (Shanks.N. H.). According to Butkus & Green (1999), motivation is derived

from the word "motivate", means to move, push or influence to proceed for fulfilling a want

(Kalimullah et al, 2010).

Motivation efforts will only work if feedback about performance is received in a timely manner

(McConnell, 2005).Bartol and Martin (1998) describe motivation as a power that strengthens

behavior, gives route to behavior, and triggers the tendency to continue (Farhad et al, 2011). This

explanation identifies that in order to attain assured targets; individuals must be satisfactorily

energetic and be clear about their destinations. In view of Bedeian, (1993) it is an internal drives

to satisfy an unsatisfied need and the will to accomplish. Motivation is a procedure that initiates

through a physiological or psychological want that stimulates a performance that is intended

at an objective. It is the concluding product of interface among personality behavior and

organizational distinctiveness (IRCO). It symbolizes those psychological procedures that

foundations the stimulation, route, and determination of deliberate actions that are target

oriented (Farhad et al, 2011). Also motivation is a progression of moving and supporting

goal-directed behavior (Chowdhury.M.S, 2007). It is an internal strength that drives

individuals to pull off personal and organizational goals (Reena et al, 2009).

Motivation is a set of courses concerned with a kid of strength that boosts performance and

directs towards accomplishing some definite targets (Kalimullah et al, 2010). According to

Barron (1983), it is an accrual of diverse routes which manipulate and express our activities

to attain some particular ambitions (Rizwan et al, 2010). Porter and miles (1974) proved that

the motivation boosts expresses and continues conduct (Khadim et al). The motivation of

an individual envelops all the motives for which he selects to operate in a definite approach

(Lefter et al). In fact motivation is "inside another person’s head and heart" (Khadim et al).

Motivation theories

When discussing motivation, some theories cannot be ignored, since they explain why people act

the way that they do and why others refrain from doing certain things (Swanepoel et al., 2003).

Regarding this research, theories of motivation will be explored in relation to work motivation in

the fast food industry, namely Maslow’s hierarchy of needs and Herzberg’s theory.

Maslow`s theory

Maslow proposed a theory, which he called the needs hierarchy. These needs are physiological,

safety, social fulfillment, satisfaction of the ego and self-actualization. People always have

needs, and as soon as one need is satisfied, another need takes its place (Nel et al., 2004).

Maslow stated that individuals move up the steps of a hierarchy and in order to be motivated, one

should know, which level of hierarchy that person is currently on and focus as on satisfying

those needs first(Robbins et al., 2007). Maslow distinguished between higher and lower order

needs, hence, physiological and esteem and self-actualization are referred to as higher order

needs. According to Maslow, when the lower order needs, namely physiological and safety, are

substantially satisfied, the next need becomes dominant (Robbins et al, 2007). Therefore, in

order to motivate someone, a person should understand what level of the hierarchy that particular

person is currently on and focus on satisfying those needs within the particular level.

Accordingly, higher order needs can be satisfied internally while lower order needs are satisfied

externally. Incentives such as pay, union contracts and tenure are examples of lower order needs.

Hence, if basic needs or lower order needs are not met, efforts to satisfy higher order needs will

be postponed, according to Maslow’s perspective (Prasad,2003).

Herzberg`s theory

Herzberg investigated the question: "what do people want from their jobs?" (Swanepoel et al.,

2003). There are different variables that can make people feel either good or bad about their jobs.

These factors were indicated by Herzberg, which he called the two-factor theory of motivation,

namely intrinsic and extrinsic factors. Intrinsic factors include advancement, recognition,

responsibility and achievement, while extrinsic factors comprises of status, security, company

policy, administration, remuneration, supervision and interpersonal relations, which are referred

to by Herzberg as "hygiene" factors. These latter factors do not motivate employees, although

they should be present in the workplace to placard employees. Employees are motivated by

internal values rather than external values. Hence, motivation should be internally known as

"motivators". Among many organizations that need to motivate their employees is the fast food

industry (Ukandu and Ukpere, 2011).

2.2 Employee Motivation

Among financial, economic and human resources, the latest are more essential and have the

capability to endow a company with competitive edge as compared to others (Rizwan et al,

2010). Employee Performance fundamentally depend on many factors like performance

appraisals, employee motivation, Employee satisfaction, compensation, Training and

development, job security, Organizational structure and other, but the area of study is focused

only on employee motivation as this factor highly influence the performance of employees.

Employee motivation is one of the policies of managers to increase effectual job management

amongst employees in organizations (Shadare et al, 2009). A motivated employee is

responsive of the definite goals and objectives he/she must achieve, therefore he/she directs

its efforts in that direction. Rutherford (1990) reported that motivation formulates an

organization more successful because provoked employees are constantly looking for

improved practices to do a work, so it is essential for organizations to persuade motivation of

their employees (Kalimullah et al, 2010).

Getting employees to do their best work even in strenuous circumstances, is one of the

employees most stable and greasy challenges and this can be made possible through

motivating them.

2.3 Factors affecting Employees’ Motivation

No one works for free, nor should they. Employees want to earn reasonable salary and

payment, and employees desire their workers to feel that is what they are getting (Houran. J).

Money is the fundamental inducement, no other incentive or motivational technique comes

even close to it with respect to its influential value (Sara et al, 2004). It has the supremacy to

magnetize, maintain and motivate individuals towards higher performance. Frederick Taylor

and his scientific management associate described money as the most fundamental factor in

motivating the industrial workers to attain greater productivity (Adeyinka et al, 2007).

Research has suggested that reward now cause satisfaction of the employee which directly

influences performance of the employee (Kalimullah et al, 2010). Rewards are management

tools that hopefully contribute to firm’s effectiveness by influencing individual or group

behavior. All businesses use pay, promotion, bonuses or other types of rewards to motivate

and encourage high level performances of employees (Reena et al, 2009). To use salaries as a

motivator effectively, managers must consider salary structures which should include

importance organization attach to each job, payment according to performance, personal or

special allowances, fringe benefits, pensions and so on (Adeyinka et al, 2007).

Leadership is about getting things done the right way, to do that you need people to follow

you, you need to have them trust you. And if you want them to trust you and do things for

you and the organization, they need to be motivated (Baldoni.J, 2005). Theories imply that

leader and followers raise one another to higher levels of morality and motivation

(Rukhmani.K, 2010).Motivation is purely and simply a leadership behavior. It stems from

wanting to do what is right for people as well as for the organization. Leadership and

motivation are active processes (Baldoni.J, 2005).

2.4 Theoretical Framework

From the literature gathered for the study, the factors that enhance employee motivation are

fair pay, incentives, special allowances, fringe benefits, leadership, encouragement, trust,

respect, joint decision making, quality of supervision, adequate working relationships,

appreciation, chances for growth, loyalty of organization, identification and fulfillment of

their needs, recognition, empowerment, inspiration, importance attached to their job, safe

working conditions, training and information availability and communication to perform

actions.

Main Objective

The main objective of the study is to analyze the impact of employees’ motivation on

Employees’ performance. The sub-objectives of the study are:

To determine the factors that increase employees motivation

To examine the relationship between employees motivation and Employees’

performance.

The objective of this research is to find out the various strategies on how employees can be

motivated in their workplace especially in the fast food industry. This study was conducted in

paradise complex banquet hall. This study also investigated the causes of low employee

motivation such as poor working conditions, poor managerial services and supervision, poor pay

and others.

3.1 Conceptual Framework

Employee Motivation is the independent variable and will be examined through two of its

factors, recognition and empowerment. The dependent variable is employee performance.

The conceptual framework of the study is:

Employee Performance

Employee Motivation

3.2 Model of the Study

The following is the model of the study which will be further discussed and justified.

Employee Motivation

Employee Performance

Recognitio

Empowerme

3.3 Hypotheses

Based on the literature and model the study is designed to test the following hypothesis:

H1: There is an effect of recognizing employees’ work on their motivation to work.

H2: There is an effect of empowering employees in tasks on their motivation to work.

H3: There is a relationship between employees’ motivation and employees’ performance.

Recognition and Employee Motivation

According to Maurer (2001) rewards and recognition are essential factors in enhancing employee

job satisfaction and work motivation which is directly associated to organizational achievement

(Jun et al., 2006). Kalimullah Khan conducted a study in which he examined the relationship

between rewards and employee motivation in commercial banks of Pakistan. The

study focused on four types of rewards of which one was recognition which he tested through

Pearson correlation. The results showed that recognition correlates significantly (0.65) with

employee work motivation (Kalimullah et al, 2010).An employee’s performance can be

recognized through promotion. Employee recognition consists of personal attention, expressing

interest, promotion, pay, approval and appreciation for a job well done (Robbins, 2003).

Generally, in the workplace, recognition is considered as the most powerful tool for employee

motivation (Robbins, 2003). Fast food workers want to be recognized. They want to know that

their superiors appreciate their work in the industry. Most of the fast food industries value

‘people principles’ and ‘social responsibility’. People principles refer to the relationship between

management, the workers and the treatment of workers (Harikripahai,2007). According to an

observer, the fast food industry holds five basic ideas: Respect and Recognition, Values and

Leadership, Pay, Learning and Developmental Growth, and Resources. He adds that four of

these five are questionable because management regards workers as passive people who can be

employed to work for ascertain period of time and duped with a false sense of employment

security and individuality.

According to Maurer (2001) rewards and recognition are essential factors in enhancing

employee job satisfaction and work motivation which is directly associated to organizational

achievement (Jun et al., 2006). Kalimullah Khan conducted a study in which he examined the

relationship between rewards and employee motivation in commercial banks of Pakistan. The

study focused on four types of rewards of which one was recognition which he tested through

Pearson correlation. The results showed that recognition correlates significantly (0.65) with

employee work motivation (Kalimullah et al, 2010).

An empirical study was conducted in Pakistan to measure the impact of reward and

recognition on job satisfaction and motivation. 220 questionnaires were distributed and filled

by employees of different sectors. The results showed that there exists a significant (r=0.13,

p<0.05) relationship between recognition and employee work motivation (Rizwan et al,

2010).

An empirical study was conducted by Reena Ali to examine the impact of reward and

recognition programs on employee motivation and satisfaction. A questionnaire was

distributed to 80 employees of Unilever and data was analyzed through SPSS version 16. The

results showed that there is a statistically significant (r=0.92, p<0.01) direct and positive

relation between recognition and employee work motivation (Reena et al, 2009).

A study was conducted in Pakistan to examine the job satisfaction among bank employees in

Punjab. A structured questionnaire survey was used and data was gathered from 4 bank’s

employees. The value of correlation coefficient for recognition was 0.251 which shows that

its relationship with job satisfaction is positive. Job satisfaction is directly associated with

internal work motivation of employees that enhances as the satisfaction of employees

increases (Salman et al, 2010). That is why a study says that deficiency of appropriate

recognition and rewarding reduces employees work motivation and job satisfaction. Hence,

administration of organizations and institutions should build up the arrangement for giving

that rewards and recognition to enhance employee job satisfaction and motivational level

(Reena et al, 2009).

The above literature, studies and discussion fully supports first hypothesis that recognizing

employees work increases their motivation to accomplish tasks and execute responsibilities

towards them by the organization.

4.1 Empowerment

According to (Bennis, 1989; Block, 1987; Kanter, 1977; Kanter, 1979; Kanter, 1989;

McClelland, 1975) empowerment is defined as an approach to leadership that empowers

subordinate as a main constituent of managerial and organizational effectiveness (Honold,L,

1997). Bowen & Lawler (1992) expressed empowerment as a site to permit employees to

formulate decisions (Amin et al, 2010). Empowering is giving authority and liberating

potential of employees.

The main driving force of empowerment is having larger control over ‘how’ jobs are done

and carried for more growth and productivity (Smith, B, 1997). According to Tannenbaum

(1968), it is the study of internal organization power and control which illustrated that the

distribution of power and control enhances organizational effectiveness (Honold,L, 1997).

Rappaport (1987) defined empowerment process as mastering on problems of organizations

by people, organizations and societies (Amin et al, 2010).

Empowering makes employees feel that they are appreciated and for making it possible

continuous and positive feedback on their performance is essential (Smith, B, 1997).

4.3 Empowerment and Employee Motivation

Employee empowerment and participation consists of contribution of employees in

administration and decision making associated to policies, objectives and strategies of the

organization. According to Chao et al. (1994), employees’ perceptive of the goals, standards

and political principles of their firms were positively and significantly related to employee

motivation and gratification towards work (Reena et al, 2009). Empowerment results in

motivating employees that leads to constant expansion and organizational growth (Smith, B,

1997).

Empowerment directs faster decision of customer troubles for the reason that employees did

not dissipate time referring customer objections to managers. Increased autonomy enhances

work productivity, amplifies employees’ wisdom of self-efficacy and their motivation to get

upon and complete certain tasks (Mani, V, 2010). According to Brewer et al. (2000),

managers should regard employees in decision-making procedures. Bhatti and Qureshi (2007)

propose that employee participation in organization measures develop motivation and

job-satisfaction level (Reena et al, 2009).

Sanderson (2003) believed that empowerment creates motivation and energy in workforce to

do their work efficiently and effectively (Amin. et al, 2010). Kuo et al. (2010) recommended

that together the job characteristics of career revamp and employee empowerment are

imperative characteristics in giving greater employee dedication and trustworthiness toward

the organization and increased level of motivation (Reena et al, 2009). More the loyalty

towards the organization and higher the motivation works best for the effectiveness and

growth of a business.

Neuman (1989) judges participative decision making as a set of planned procedures for

systematizing individual sovereignty and autonomy in the perspective of faction

accountability and associated to system-wide control. Employee participation and

empowerment not only direct to efficiency, effectiveness and innovation but they also boost

employee gratification, work motivation and trust in the organization (Constant.D, 2001).

4.4Employee Performance

It was stated earlier that jobs in the fast food industry are highly routinized and capital intensive,

which results in employees living their job. Reduced work output, increased accidents,

absenteeism, employee turnover and poor employee performances are examples of detrimental

employee behavior that have a significant affection profitability (Spector, 2003, cited in Lo and

Lamm, 2005).About sixty two percent of first-time employees in the fast food industry usually

engage in theft and misconduct in their workplace such as giving away goods, falsely claiming to

be sick, stealing, damaging the organizations `property, or work while intoxicated during their

first nine months of employment (Reischman, 2003). Turnover is high for non-management fast

food employees at three hundred percent per year, and vacancies are reported to be eighty one

percent (Bureau of National Affairs (BNA), 1985, cited in Reischman, 2003). It is the amount of

training that is provided to fast food employees that enhances their performance rather than the

quality or quantity of education achieved prior to employment (Sheridan et al., 1997). As

mentioned previously, employee job performance is a result of motivation and ability.

Motivation influences performance, but performance if followed by rewards, can influence

motivation.

Since the subject of motivation has become increasingly important in the fast food industry

recently, there is need for total quality management and a flatter management structure, which

will initiate an employee reward management system. Deeprose (1994) postulates that effective

reward management can help the management of a fast food outlet to achieve their business

objectives by attracting and retaining competent workers.

Methodology

This is a basic and an explanatory study. The researcher aims to examine effects of motivation on employees’ performance in service sector and then specifically in Paradise Complex Banquet Hall situated at Islamabad Pakistan. It is not easy to cater the entire service sector of Pakistan, therefore only the Paradise Complex and its chain is examined in the study. Paradise Complex is the only banquet hall in Rawalpindi and Islamabad which caters more than 1200 people under one roof and more importantly it is a pillar less hall. The sample size of this study is 100. This is a survey and a cross-sectional research. For the purpose of data gathering, a questionnaire is specifically designed comprising of 17questions. Majority of the questions uses even point Lickert scale to ask the respondents to indicate how strongly they agree or disagree with the statements. However, few questions also use the nominal scale. The IBM SPSS software is used for the descriptive analysis of the data collected through questionnaires.

Results

The results of this study are presented below. Overall, the results showcase a very significant effect of motivation on employees’ performance. In the service sector motivation effects employees’ performance positively and enhances their performances.

Statistics

What factors effects your level of motivation towards work?

Consequently what factors demotivate you in doing your work?

What is your level of satisfaction in your work?

What are things that you like best in your workplace?

N

Valid

100

100

100

100

Missing

1

1

1

1

Mean

2.3700

2.1400

2.1500

2.3600

Std. Error of Mean

.11070

.10638

.10672

.11328

Median

2.0000

2.0000

2.0000

2.0000

Mode

1.00

1.00

1.00

1.00

Std. Deviation

1.10696

1.06382

1.06719

1.13280

Variance

1.225

1.132

1.139

1.283

Skewness

.131

.434

.457

.185

Std. Error of Skewness

.241

.241

.241

.241

Kurtosis

-1.321

-1.079

-1.046

-1.360

Std. Error of Kurtosis

.478

.478

.478

.478

Range

3.00

3.00

3.00

3.00

Minimum

1.00

1.00

1.00

1.00

Maximum

4.00

4.00

4.00

4.00

Sum

237.00

214.00

215.00

236.00

Statistics

Accordingly what are the things that you think need improvement in your workplace?

Do you feel well compensated for your services?

Does the company provide opportunities to further develop its employees, both professionally and personally?

Does the management maintain an open communication with its employees?

N

Valid

99

100

100

100

Missing

2

1

1

1

Mean

2.3939

2.3400

2.2000

2.4700

Std. Error of Mean

.11380

.12327

.12309

.18987

Median

2.0000

2.0000

2.0000

2.0000

Mode

1.00

1.00

1.00

1.00

Std. Deviation

1.13226

1.23272

1.23091

1.89872

Variance

1.282

1.520

1.515

3.605

Skewness

.161

.279

.471

3.562

Std. Error of Skewness

.243

.241

.241

.241

Kurtosis

-1.363

-1.422

-1.402

18.540

Std. Error of Kurtosis

.481

.478

.478

.478

Range

3.00

4.00

3.00

13.00

Minimum

1.00

1.00

1.00

1.00

Maximum

4.00

5.00

4.00

14.00

Sum

237.00

234.00

220.00

247.00

Statistics

Do you have a good professional relationship with your superiors?

How is an employee selected for a reward? is through

Are the employees suggestions considered while reviewing the reward program?

How would you rate your overall satisfaction with current reward and recognition programs offered by the organization?

N

Valid

100

100

99

100

Missing

1

1

2

1

Mean

2.2400

2.1700

2.1717

2.4900

Std. Error of Mean

.11557

.11725

.11668

.42080

Median

2.0000

2.0000

2.0000

2.0000

Mode

1.00

1.00

1.00

1.00

Std. Deviation

1.15575

1.17254

1.16093

4.20797

Variance

1.336

1.375

1.348

17.707

Skewness

.397

.391

.456

8.096

Std. Error of Skewness

.241

.241

.243

.241

Kurtosis

-1.295

-1.380

-1.275

72.800

Std. Error of Kurtosis

.478

.478

.481

.478

Range

3.00

3.00

3.00

40.00

Minimum

1.00

1.00

1.00

1.00

Maximum

4.00

4.00

4.00

41.00

Sum

224.00

217.00

215.00

249.00

Statistics

Have you ever received an award from organization?

Have you ever nominated someone for an award?

N

Valid

100

100

Missing

1

1

Mean

2.2900

2.4000

Std. Error of Mean

.31150

.22293

Median

2.0000

2.0000

Mode

1.00

1.00

Std. Deviation

3.11495

2.22928

Variance

9.703

4.970

Skewness

8.064

5.968

Std. Error of Skewness

.241

.241

Kurtosis

74.387

49.048

Std. Error of Kurtosis

.478

.478

Range

30.00

20.00

Minimum

1.00

1.00

Maximum

31.00

21.00

Sum

229.00

240.00

Discussion and Analysis

The Results shown in the above tables shows a positive effect of motivation on employees’ performance and consequently it increases the effectiveness of the organization as well. organizational development, human resource management, and sociology. By drawing attention to this broad range of influences, this paper aims to help policy makers view worker motivation in a more holistic manner. This broader view will enable them to structure reform programs to more effectively promote worker motivation, and hence, improve their

performance.

It is critical that policy makers consider a broad range of motivational determinants that they initiate incentives which all work in the same direction (organizational goals), and that the potential negative effects of new incentives are considered and counteracted with balancing measures. By ‘‘unpackaging’’ the various channels through which worker motivation can be affected, this framework can be used both to assess already implemented reforms, as well as assist policy makers seeking to evaluate how proposed reforms might affect worker motivation. At the core of the motivation question is how well individual worker goals are in alignment with the goals of the employing organization. Policy makers need to assess how well organizational structures and processes facilitate clear communication of organizational goals, provide timely feedback on performance to workers, and ensure that higher levels of desired performance are met with greater reward.

Each country must analyze its own particular constellation of organizational structures, culture, and broader societal culture to determine how best to approach the design and implementation of their particular job reform. Often, reform programs have focused on a very limited number of channels (e.g. financial incentives) to influence worker behavior, and neglected other less tangible incentives, such as the work itself, achievement, and recognition. Many of these reforms have resulted in little improvement in worker motivation, or even in reductions in motivation due to unanticipated influences.

Worker motivation is an individual and a transactional process. Different cadres may have differing determinants of motivation. In addition, the organizational context in which the worker is situated will mediate the impact of reforms. In the context of employees’ motivation, there is a complex combination of factors which has individual, organizational, and societal components. Consequently, effective programs will depend, not only on country level analysis, but also on regional, local and facility level efforts.

Conclusion

Recognition and empowerment play an essential part in enhancing employee motivation

towards organizational tasks. By appreciating the employees for their work done and giving

them participation in decision making, internally satisfies them with their job, organization

and organizational environment. Thus their enthusiasm and motivation towards accomplishment

of tasks increases.

Motivation is a very complex process that directly impacts the development of all members of the organization, regardless of position and authority. As the hospitality industry becomes more sophisticated, so do the needs of those who work within it. Management holds the key in developing an environment conducive to the type of motivation that will enable both front-line employees and managers to perform to the best of their ability. Thus all members of the organization should be exposed to an environment that offers both meaningful intrinsic and extrinsic incentives. In order to gain a broader perspective of motivation in the hospitality industry, future studies should investigate the motivational commonalities and/or differences between employees.

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