Impact of Motivation on Employees Performance in Pakistan

Danish Ahmed Siddiqui,Noor Ul Rida

doi:10.5296/bms.v10i1.14448

Abstract

This paper aims to study the effects of intrinsic and extrinsic motivation on employee’s performance. Employees obviously work for the organization for monetary benefits but these monetary compensations and rewards are not the sole requirement of all employees. Some of them need salary increment and bonuses to get themselves motivated while others need recognition and non-monetary benefits. The study was aimed to discuss how the extrinsic and intrinsic motivation can hinder or increase the motivation level of employees. Several motivational theories have also been discussed in this paper that helps in better understanding of why and how employees are motivated. Intrinsic and extrinsic motivation is said to have significant impact on employee’s performance. Our study examined 60 female and 143 male respondents (n=203) of banking sector to study the effects of intrinsic and extrinsic motivation on employee’s performance. There was a positive relationship of intrinsic and extrinsic motivation of employees with their performance. With the increase in intrinsic and extrinsic motivation, employee’s performance tends to increase as well. We also have discussed some of the future directions and recommendations so that it can help future researchers to study the other constructs that can affect employee’s performance.

Highlights

Whenever we talk about the organizational performance it’s the capital and financial resources that contributes in goal achievement but the human resource as well that makes a distinction
This paper aims to study the effects of intrinsic and extrinsic motivation on employee’s performance
Our results show that employees need recognition and intrinsic motivation to perform better

Summary

Introduction

Whenever we talk about the organizational performance it’s the capital and financial resources that contributes in goal achievement but the human resource as well that makes a distinction. Researches have shown that highly motivated employees are more productive and perform better (Waiyaki 2017). Motivation is known as the process through which the behavior of an individual gets a direction and purpose (Kreitner and Kinicki 1995). It is the most important concept of Psychology. All the social theorists and philosophers used term “will” or motivated human behaviors (Forgas, Williams et al 2005). Motivation is the interpretation of the human and infrahuman behavior (Bunch 1958). When there is a maintaining stimulus that drives the series of actions, this is known as motivation (Smith and Guthrie 1923). When there is a gathering of perceptions, beliefs, actions, values and interests, this is known as motivation and it is domain specific (Lai 2011)

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