Chapter 1: The Problem and its Background

1.1 Introduction

As years passed by, there have been drastic changes, developments and

innovations in the business industry. Before the industrial revolution, work was

done in home or on farms and most industries were operated as cottage

industries. However, during the 19th century, the need for management became

evident as there had been a shift from skilled to unskilled laborers working in

large factories, operating machineries and engaging in large standardized mass

production (Williams, 2011). These occurrences manifested the need for

managerial skills to govern a large number of laborers.

Since the production of goods or rendering of services depend on the

work of laborers, managers find it vital to look for methods to increase the

productivity among the employees. Efficiency alone is not enough to produce

organizational success, it also depends on treating workers well (Williams, 2011).

In order to do so, laborers must be motivated to do their jobs. Since the

emergence of jobs, motivation prevails as one of the most vital factors affecting

the performance of employees (Hussein, et.al., 2016).

It is important for managers to know that they cannot motivate employees

but they can influence them through methods that would increase the employees’

motivation (David &Newstrom, 1989). However, bringing out the best in the

employees as they work is one of the most challenging aspects on the part of the
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manager. Indeed, knowing what motivated the people is a centuries-old puzzle

(Nohria, et.al.,2008).

In line with this, various studies are made to identify the factors or

methods to influence worker’s productivity in work. One of which is the

Hawthorne Studies of Elton Mayo (1927) as noted by Ryan and Smith (1954),

pertains to the effect of freedom or autonomy given to workers as they do their

jobs and giving or setting goals for them to achieve, increases their productivity in

work. There are also the Needs Hierarchy Theory of Abraham Maslow (1943)

and Frederick Herzberg’s Motivation-Hygiene Factor Theory (1959) which are

two of the most used, known and widely respected theories for explaining

motivation and job satisfaction (DeShields, Kara, & Kaynak, 2005). Common

among these three theories is the idea that it is not the extrinsic factors (money,

bonus, etc.) that influence the motivation of employees but it is the intrinsic

factors for motivation of the employees (recognition, personal growth, etc.) that

give them job satisfaction and make them productive in their work.

With regard to these theories, it is of utmost importance for managers or

employers to know these factors because it would be very beneficial for the

company particularly in the 21st century where competition in the business

industry becomes tougher and more challenging due to rise of competitors in the

industry and also of the external factors such as political, economy, technological

and sociocultural trends (Williams, 2011). Instead of focusing in these factors

which are external in nature and not within the control of the companies, they

should focus instead on their internal strengths, their competitive advantage such
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as their employees or their human resources because other factors like the

technology they possess can be acquired by their competitors but the

knowledge, ideas and creativity of their employees will never be possessed by

the latter (Williams, 2011).

In our fast-paced changing corporate world, the need for motivated

employees become more evident as motivated employees help organizations to

survive. It is also stated that motivated employees are more productive (Lindner,

1998).However, problem arises in the motivation of workers as there has been a

lot of changes in the industry as the years passed by and the industry is now

filled with Millennial workers with different needs, wants and interests. In the

present, the corporate world is being filled with Millennial employees which are

the largest age group and is said to grow to a significant proportion of the

workforce over the next 20 years (Gilbert, 2011).

These Millennial employees have different perspectives from what they

expect on their employment and they are also well-educated, skilled in

technology, very self-confident, able to multi-task and have a lot of energy

(Gilbert, 2011). As the millennial employees grow in the industry and the baby

boomers retire, it is the task of managers and human resources personnel to

assess what motivation schemes can be utilized to motivate or increase the job

satisfaction of Millennial employees.

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Whereas, this study aims to figure out whether the theories of motivation

employed in the past are still applicable to Millennial employees particularly the

theories on intrinsic motivation.

1.2 Objectives of the Study

This study aims to determine the effect of intrinsic factors on the motivation of

employees. Specifically, the researchers aim:

 To determine if extrinsic factors affect the motivation of the Millennial employees.

 To know if millennial employees prefer intrinsic motivators over extrinsic

motivators.

 To establish which factors of intrinsic motivation stated by Hackman and Oldham

are present in the working conditions of the respondent Millennial employees.

 To determine which of such factors is primarily present and to rank such factors

according to the most preferred and least preferred of Millennial employees.

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1.3 Theoretical Framework

1.3.1 Abraham Maslow’s Hierarchy of Need Theory

Self-
actualization

Self-esteem
Confidence, Respect,
Achievement

Love and Belonging

Friendship, Family, Intimacy

Safety and Security

Health, Employment, Property, Social stability

Physiological Needs
Breathing, Food, Water, Shelter, Clothing, Sleep

Figure 1.3.1 Maslow’s Hierarchy of Needs Theory

Through Maslow’s Hiearchy of Needs theory, it shows that employment could satisfy

physiological and safety needs, love/belonging (relationships with coworkers,

relationship with supervisors), esteem (opportunity to advance, empowerment) and

eventually self-actualization (belief in mission, meaningful work) of employees. Hence,

self-actualization become more important.

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1.3.2 MarylèneGagné& Edward L. Deci’s Self-determination Theory

Figure 1.3.2 Gagnè& Deci’s Self-determination Theory

Self-determination theory states that the distinction between autonomous

motivation and controlled motivation makes up the difference between the intrinsic

motivation and extrinsic motivation. Autonomy involves acting with a sense of

volition and having the experience of choice. According to Dworkin (1988),

autonomy means endorsing one’s actions at the highest level of reflection. Intrinsic

motivation is an example of autonomous motivation. When people engage an

activity because they find it interesting, they are doing the activity wholly volitionally
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(e.g., I work because it is fun). On the other hand, being controlled involves acting

with a sense of pressure, a sense of having to engage in the actions. The use of

extrinsic rewards in the early experiments was found to induce controlled motivation

(e.g., Deci, 1971). This theory postulates that autonomous and controlled

motivations differ in terms of both their underlying regulatory processes and their

accompanying experiences, and it further suggests that behaviors can be

characterized in terms of the degree to which they are autonomous versus

controlled. Autonomous motivation and controlled motivation are both intentional,

and together they stand in contrast to amotivation, which involves a lack of intention

and motivation. Extrinsic motivation and the autonomy continuum Intrinsically

motivated behavior, which is propelled by people’s interest in the activity itself, is

prototypically autonomous. When a behavior is so motivated it is said to be

externally regulated—that is, initiated and maintained by contingencies external to

the person. This is the classic type of extrinsic motivation and is a prototype of

controlled motivation. When externally regulated, people act with the intention of

obtaining a desired consequence or avoiding an undesired one, so they are

energized into action only when the action is instrumental to those ends (e.g., when

the boss is watching). External regulation is the type of extrinsic motivation that was

considered when extrinsic motivation was contrasted with intrinsic motivation.

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1.3.3 Motivation-Hygiene Factor Theory of Frederick Herzberg

Achievement Company policy

Dissatisfaction
Recognition Supervision
Satisfaction Work itself Relationship with the
employer
Responsibility Work Conditions
Advancement Salary
Growth Relationship with
peers

Figure 1.3.3 Motivation-Hygiene Factor Theory of Herzberg

Herzberg (1966) asserts that “the primary function of any organization, whether

religious, political, or industrial, should be to implement the needs for man to enjoy a

meaningful existence”. In his study, he concluded that job content factors are the

primary source of motivation and satisfaction, while hygiene factors are the sources

of dissatisfaction, thus, the label two-factor theory or motivation-hygiene theory.

Focusing on the work itself (job content), recognition, responsibility, achievement,

and opportunities for advancement would possibly enrich a job. Hygiene factors (i.e.

working conditions, company policy, supervision, and pay) should only be given

attention only to reduce dissatisfaction, was also stated in the theory. He

emphasizes that the job must be enriched to allow employees to be motivated and

to perform effectively.
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1.3.4 J. Richard Hackman and Gregory R. Oldham’s Job Characteristics Model

Figure 1.3.4 Hackman & Oldham’s Job Characteristics Model

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According to the study conducted by Hackman and Oldham in 1970, through the

core job dimensions, three critical psychological states were created which may result to

the personal and work outcomes as illustrated above. Using the Job Diagnostic Survey

they developed, it could be possible the motivation potential of a job that may help

employer redesign the job in terms of the core job dimensions. Experienced

meaningfulness of the work is enhanced by skill variety, task significance and task

identity. Autonomy increases the experienced responsibility for outcome of the work. On

the other hand, knowledge of the actual results of the work activities was increased if

the job is high on autonomy. The employees’ growth, need, strength could affect their

motivation thus was used as a moderator in the study.

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1.4 Conceptual Framework

Figure 1.6 Conceptual Framework

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This conceptual framework made use of the Motivation-Hygiene Factor Theory of

Frederick Herzberg and J. Richard Hackman and Gregory R. Oldham’s Job

Characteristics Model to determine if millennial employees were motivated by intrinsic

factors. The intrinsic factors namely: achievement, recognition, the work itself,

responsibility, advancement and growth affects the motivation of millennial employees.

The presence of core job dimensions further establishes that they are intrinsically

motivated which results in meaningfulness of the work, responsible for outcomes of the

work, and knowledgeable of the results of the work.

1.5 Statement of the Problem

This study aims to answer the query regarding the effect of intrinsic factors on

the motivation of Millennial employees. The researchers specifically aim to answer the

following questions:

1. Do Extrinsic factors affect the motivation of the Millennial employees?

2. Do Millennial employees prefer intrinsic motivators over extrinsic motivators?

3. Does the preference of Millennial employees about which they prefer, intrinsic

or extrinsic factors affect their extrinsic motivation?

4. Which of the core job dimensions established by Hackman and Oldham are

present in the working conditions of the respondent Millennial employees?

5. Which of the following core job dimensions are the most preferred and least

preferred by respondent Millennial employees?

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1.4 Hypothesis

1. H0: There is no relationship between the extrinsic motivation of Millennial

employees and their preference for either intrinsic or extrinsic motivators.

H1:There is a relationship between the extrinsic motivation of Millennial

employees and their preference for either intrinsic or extrinsic motivators.

2. H0: There is no relationship between intrinsic factors and motivation of Millennial

employees.

H1: There is positive relationship between intrinsic factors and motivation of

Millennial employees.

1.5 Significance of the Study

Many studies have been conducted regarding the motivation of employees but

few studies are made regarding the Intrinsic motivation of Millennial employees

whereas the researchers believe that this study would be significant or would be a

great help to many like:

To the Business Community:

Talent, skills and expertise are things that are things solely sourced from

people. This is the same in every industry. They all need good workers. While

this has been always considered in management principles, a new era of young

professionals may pose difficulty in the part of administrators in both small and

giant businesses. Modern times call for different methods than that of traditional

ones when it comes to job satisfaction. This study serves as a reliable measure
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on the standards of employee motivation leading them to satisfaction. It serves

as a guide for employers especially for Human Relations Managers on how to

deal with the motivation and job satisfaction of Millennial employees.

To the Millennial Workers:

Millennials must know their peculiarities when it comes to job satisfaction.

This research projects the modern way of thinking of the new generation of

workers. It allows them to ponder upon their values. This study provides for an

opportunity for their thoughts and perspective be heard on account of their

working conditions.

To the Academe:

This study is avenue of incoming perspective when it comes to millennial

employees’ motivation. As a benefactor of new information and insight, this

research forms part of the body of knowledge consisting of management theories

and business principles. This study may also contribute to different fields of study

such as: Psychology, Sociology, and Behavioral Science among others.

To Future Researcher:

This study may be found as a viable source of facts and insight for

whoever wishes to conduct research in the same area. They may find this useful

as a reference to which theoretical framework is applicable and what textual

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materials are in existence and are available. This research also makes room for

further studies.

1.6 Scope and Limitation

This study aims to determine the relationship between Intrinsic factors and

motivation of Millennial employees whereas the effect of Intrinsic factors is the

independent variable while the motivation of Millennial employees is the

dependent variable.

In this study, the motivation referred to by the researchers pertains to the

factors that stimulate desire and energy in people to be continually interested

and committed to a job, role or subject or to make an effort to attain a goal. The

motivation of employees will be determined and measured by means of

employing Motivation Potential Score device established by Hackman and

Oldham.

On the other hand, the intrinsic factors referred in this study refer to the

factors established by Hackman and Oldham such as Skill Variety, Task Identity,

Task Significance, Autonomy and Feedback.

Since there are a lot of Millennial employees, the researchers limited the

study to 100 respondents. Various sources state different age ranges of

Millennial employees so the researchers set the age not beyond 37 years old

referring to the age range of Millennial employees. The respondentsare limited to

100 Millennial employees from different sectors such as education, engineering,

finance and others from white collar and pink collar jobs. This study is a
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quantitative one and the researchers used quota and purposive sampling in

choosing the number of respondents.

1.7 Definition of Terms

 Autonomy-degree to which the job provides substantial freedom, independence

and discretion of the employees in scheduling the work and in determining the

procedures to be used in carrying it out.

 Extrinsic motivation–this refer to work conditions of employees such as their

pay, co-workers, supervisor, place of work, bonus or additional compensation

and other factors which are outside the job itself of the employees that motivate

them to work better or boost their motivation to perform their jobs well.

 Feedback-the degree to which carrying out the work activities required by the

job results in the employee obtaining direct and clear information about the

effectiveness of his or her performance.

 Intrinsic motivation-this refer to work conditions of employees such as their

perception about their jobs, the feeling of self-accomplishment and personal

growth that they feel when accomplishing the task assigned to them, worth and

value of their job and other factors which affect the motivation of the employees

to perform better coming from the job itself.

 Job Satisfaction-positive feeling about a job resulting from an evaluation of its

characteristics.

 Millennial-this refers to the generation born from 1980.

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 MPS( Motivating Potential Score )- the computed potential score through the

Job Diagnostic Survey (Hackman &Oldham, 2002)

 Motivation-set of forces that initiates, directs and makes people persist in their

efforts in accomplishing a goal.

 Pink Collar Job-this refers to jobs such as nursing, teaching and waitressing as

the occupations referred to by economists which are professions long

dominated by women.

 Skill Variety-degree to which a job requires a variety of different activities in

carrying out the work which involve the use of several different skills and

talents of the employee.

 Task Identity-degree to which the job requires completion of a whole or

identifiable piece of work like doing a job from beginning to end with visible

outcome.

 Task Significance-degree to which the job has a substantial impact on the lives

or work of other people, whether co-workers or within the organization.

 Test Scores-measures each respondent’s perceived motivation towards

extrinsic factors, their preference for either intrinsic motivators or extrinsic

motivators and their motivating potential score as patterned with Hackman’s

theory

 White Collar Job-refers to employees whose job entails, largely or entirely,

mental or clerical work such as in office. This term is used to characterized

non-manual workers but now it refers to employees or professionals whose

work is knowledge intensive, non-routine and unstructured.