PROJECT ON IMPACT OF WORKPLACE

MOTIVATION ON EMPLOYEE’S
PERFORMANCE: A STUDY BASED ON
BANKS- SBI

Submitted To: Dr. Laxmi Submitted By: Navneet Kaur

Malodia (University (17) & Trannum Gupta (31)
Business School) (University Business School)

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 Chapter I:
INTRODUCTION

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ABSTRACT
An important role of management is to help make work more satisfying and rewarding for
employees and to make employees motivation consistent with the organisational objectives.
Most employees need motivation to feel good about their jobs and perform optimally. Some
are money motivated while the others find rewards and recognition personally motivating. This
study tries to evaluate motivation of employees in the organisation. Motivation levels within
the workplace have a direct impact on the employee productivity. It has always been a central
problem for managers. There has been a lot of research done on motivation by many scholars.
Employers need to get to know their employees well and use different tactics to motivate them
on the basis of their needs. Here, we would also present the theories and techniques of
motivation in the workplace.

INTRODUCTION
Employee motivation is considered as a force that drives the employees towards attaining
specific goals and objectives of the organisation. Every individual of an organisation is
motivated by some different way. The job of a manager at workplace is to get things done
through employees but that is easier said than done. In India the concept of human resource is
also flourishing day by day and employers as well as employees are getting awareness of their
rights and their demands.

The service sector in India’s economy has started to grow recently and among this, the banking
sector is one of the most growing service sectors in India. Employees are the bedrock of every
service organisation. To be successful, banks require the commitment and sacrifice of
employees. Employees are particularly important participant in the formulation of the image
that the customers get in relation to the service outcome. Employees’ satisfaction is there for
one of the primary requirements well run organisation and considered and imperative by all the
banks in this sector.

PROBLEM DEFINITION
Since the beginning of time, leaders have risen to take charge of societies and make decisions.
As society progressed there have been great technological advance which have brought
convenience to our lives. Despite of this the basic needs for humans remains the same. So the
question asked by the managers is “How do we motivate our employees and what impact can it
have on their performance?”

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CONCEPT OF MOTIVATION
Mullins (1999) says, “The underlying concept of motivation is some driving force within
individuals by which they attempt to achieve some goal in order to fulfill some need or
expectation.” There are various other definitions of motivation in various published works,
articles, texts and journals by reputed theorists while studying the concept of motivation.

EMPLOYEE PERFORMANCE
Performance of the employee is considered as what an employee does. It involves quality and
quantity of output, presence at work, accommodative and helpful nature and timeliness of
results. It has been observed in the previous research that organisations use various bonuses
and rewards based on individual performance if it is noticeable. Morale and productivity of
employees is highly influenced by the effectiveness of performance of an organisation and its
reward management system. Employee performance is actually influenced by motivation
because when they are motivated they will put more work effort, thereby improving their
performance.

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Chapter II: REVIEW
OF LITERATURE

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LITERATURE OVERVIEW
There has been a lot of research done on motivation by many scholars. Following are few of the
previous research findings on the topic of Motivation: Motivation theories, Ways to encourage
employee motivation, Measures of Motivation and Principles of Motivation.

Maslow’s theory holds that the human need form a hierarchy ranging from lowest order needs
(physiological needs) to the highest order needs (the needs for self actualization). According to
Herzberg’s two factor theory, there are two sets of motivating factors. In one set are
dissatisfiers which are related to the content of the job and the other set is that of motivators
relating to the workplace environment. Vroom’s expectancy theory of motivation suggests that
people are motivated to reach a goal if they think that the goal is worthwhile and can see that
their efforts will help them achieve the goal (Robbins, 1998; Robert and Hunt, 1991). The Porter
and Lawler’s model has many variables. Essentially performance is a function of ability,
perception of task required and effort. Effort is influenced by the value of rewards and the
perceived effort-reward probability. Performance accomplishment in turn is related to rewards
and satisfaction (Robbins, 1998).

The motivation involves rewards (Carsely, 2000). People who believe that they will receive
rewards for doing something are motivated to everything they can to reach a certain goal
(Carsely, 2000).

Babbie (2004) highlighted that recognition of a job well done is great way to inspire employees.
Recognition costs managers nothing and to employees that feel underappreciated, can mean
everything. Babbie (2004) added that praise doesn’t need to be lavish or excessive, but one
should keep track of employee achievement and publically recognize it.

Baker (2005) stated that if the employee did something good and expected in return and then
got less than what he expected, he may lose motivation. Baker (2005) added that, organisations
should make sure to access the expectations of their employees in order to satisfy them.

EMPLOYEE PERFORMANCE

Arnold (2005) indicated that, an effective employee is a combination of a good skill set and a
productive work environment. To him, many factors affect employee performance that
managers need to be aware of and should work to improve at all times. To get the maximum
performance from employees, Arnold (2005) opined that, one needs to provide them with the
tools they need to succeed. Anderson (2004) added that, employees don’t perform in a
vacuum.

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Miller (2007) opined that to get the best performance from the employees there needs to be
some sort of motivation beyond the weekly paycheck. Miller (2007) added that motivation can
come in the form of financial incentives, the opportunity to get involved in company projects, a
carrier path that leads to management and direct involvement from management into the daily
tasks. Effective motivation according to Miller (2007) can create a productive workforce but a
lack of motivating factors can leave employees searching for reasons to give their maximum
effort.

Mazin (2007) indicated that employees are influenced by both internal and external forces, but
the impact of these forces depends a great deal on their own levels of internal and external
locus of control. According to Mazon (2007), those who have an external locus of control are
looking for people to tell them what to do. Those with an internal locus of control, to Mazin
(2007), to make decisions and act on their own. These employees may sometimes act too
independently and are not as concerned about the opinions and expectations of others.

IMPACT OF MOTIVATION ON EMPLOYEES’ PERFORMANCE

Work motivation is a function of employees interacting with their work environments (Amabile,
1993). With the same notion in the integrative theory of motivation-performance, Keller (2008)
proposed that a complete motivation implementation-performance cycle consists of several
stages: Motivational and Volitional processing, Motivational and Information processing
interfacing, Information and psychomotor processing and finally, the outcome processing.
Motivational processing help employees set up initial performance goals. First, employees
sufficient level of curiosity to explore the tasks and evaluate the possibility of attaining
successful performance to confirm the performance goal. The next stage is volitional processing
that converts employees’ intentions into executable actions. Employees enter into the interface
between motivation and information processing. Here, employees apply strategies to actively
manage their learning process. The next stage, information and psycho-motor processing
require employees to utilize a variety of mental activities to process information. Employees at
this stage carry out cognitive activities to create and automate transferable mental models.
Finally the outcome processing stage allows employees evaluate the discrepancy between
performance consequences and investment efforts.

The implication of motivation performance framework is manifold. First, since

motivation processing is crucial at the early stage of performance process, one must be
cautious to overwhelming employees’ processing capacities or distracting them with competing
stimuli. Their depleted affective and cognitive capacity can prevent employees from effectively
converting performance intentions to effective actions. The theory provides fruitful
opportunities for job task and work environment design to manage employees motivation and
performance with and integrative approach.

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Chudley (2004) opined that motivation leads to greater employee satisfaction. He added that
workers satisfaction is important for every company as this factor can lead to progress or
regress. Chudley (2004), again indicated that, in the absence of an effective plan, employees
will not feel ready to fulfill their objectives. They should be empowered through promotion
opportunities, monetary and non-monetary rewards, or dis-incentives in the case of inefficient
employees.

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 Chapter III:
RESEARCH
METHODOLGY

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NEED AND SIGNIFICANCE
The purpose of the study is to investigate the relationship between employee motivation and
employee performance. India is an ideal country for the study of motivation of employees.
Individuals working in B2B (Business to Business segments) affirm that they are motivated by
the autonomy and freedom they are given at work, by the responsibility they are given and by
the position or tasks they are provided by the management. The workforce being the most
important factor in any organisation helps it improve its effectiveness. Therefore, it becomes
imperative to motivate its employees for the organisation to adopt reward management
system. Job salary for employees’ job performance might result in low motivation level and job
dissatisfaction. For success of any organisation it should invest in making their employees skilful
for performing specific tasks.

RESEARCH DESIGN
The research design used for the study was a descriptive survey conducted through a
questionnaire. The reason for using such a design was to collect detailed and factual
information that described the existing phenomena. The population of the study consists of
managerial and non-managerial employees working in State bank of India (Banking Sector). The
questionnaire contained questions using 5 point Likert Scale rating to measure variables of the
study.

VARIABLES: The variables have been categorized as dependent and independent. The
demographic variables used are age, gender, marital status, salary and educational qualification

INDEPENDENT VARIABLE: Workplace motivation

DEPENDENT VARIABLE: Employees’ performance

OBJECTIVES OF THE STUDY

 To determine the impact of workplace motivation on employees performance.
 To identify the factors that motivates employees of the organization.
 To assess the effect of motivation on performance of employees.
 To give recommendation to management for improvement in motivation level of the
employees.
 To access the effect of demographic factors on the workplace motivation and employee
performance.

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HYPOTHESIS
H0 – There is an insignificant correlation between workplace motivation and employees
performance.

H1- There is a significant correlation between workplace motivation and employees performance.

H0 – There is insignificant relationship between demographic variables and workplace motivation.

H2 - There is a significant impact of age on employee motivation.

H3 - There is a significant impact of gender on employees’ motivation.

H4 – There is significant impact of qualification on employees’ motivation.

H5 – There is significant impact of marital status on employees’ motivation.

H6 – There is significant impact of age on employees’ motivation.

CONCEPTUAL MODEL OF THE STUDY

WORKPLACE MOTIVATION EMPLOYEES’

PERFORMANCE

 Age
 Gender
 Qualification
 Salary

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DATA COLLECTION
DATA COLLECTION TOOLS: Standardized questionnaire has been used to collect data along
with 5 point Likert scale.

Independent Variable- Workplace Motivation

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

Dependent Variable- Employees’ Performance

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

DATA COLLECTION PROCEDURE: Data has been collected through the primary source using the
standardized questionnaire which was filled by the employees and on the basis of these
responses the study has been conducted.

SAMPLING PROCEDURE:
Unit of Population – Individuals

Sampling Unit- State Bank of India

Sample Size- 90-100 responses

Extent-Punjab

Data Collection Method- Questionnaire

Tools of Analysis:
The following tools have been used for data analysis-

1. Descriptive analysis
2. Correlation analysis
3. Regression analysis

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4. Parametric & Non-Parametric tests

CHAPTER IV:
RESULTS AND
FINDINGS

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The collected data was put to statistical analysis using spss to arrive at the pertinent results.
The tools employed to test the drafted hypothesis included the various descriptive statistical
tools, test of normality, correlation, regression, Anova and Independent sample T-test.

DESCRIPTIVE STATISTICS:

Descriptives

Statistic Std. Error

Mean 1.78 .057

95% Confidence Interval for Lower Bound 1.66

Mean Upper Bound 1.89

5% Trimmed Mean 1.76

Median 1.64

Variance .289

EP_MEAN Std. Deviation .538

Minimum 1

Maximum 3

Range 2

Interquartile Range 1

Skewness .530 .254

Kurtosis -.823 .503

Mean 3.67 .055

95% Confidence Interval for Lower Bound 3.56

Mean Upper Bound 3.78

5% Trimmed Mean 3.68

Median 3.68

Variance .272

WM_MEAN Std. Deviation .521

Minimum 2

Maximum 5

Range 3

Interquartile Range 1

Skewness -.193 .254

Kurtosis .470 .503

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NORMALITY TEST:

Tests of Normality

Kolmogorov-Smirnova Shapiro-Wilk

Statistic df Sig. Statistic df Sig.

EP_MEAN .144 90 .000 .933 90 .000

WM_MEAN .100 90 .027 .980 90 .187
a. Lilliefors Significance Correction

INTERPRETATION:
The above normality test shows that according to
Kolmogorov-Smirnov-The Significance value of employee performance is less than 0.05
which means that the data of employee performance is not normal.
The Sig value of workplace motivation is 0.0027 which is less than 0.05. Therefore it is
not normal.
Shapiro-Wilk- The Sig value employee performance is 0.000 which is less than 0.05, so
the data is not normal.
The Sig value of workplace motivation is 0.187 which is more than 0.05, so the data is
normal.

Since the data of workplace motivation is not normal according to Kolmogorov-Smirnov

test but normal in case of Shapiro Wilk test.
But since the K.S. test has been proved invalid therefore we rely on the second test.
This implies the parametric tests should be used to get significant results.

Also since Employee Performance is not normally distributed as per both the tests, we
have applied Spearman’s Correlation which has no assumptions regarding the normality
of the data , for the purpose of finding relationship between the dependent and
independent variable.

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 CORRELATION

Correlations

WM_MEAN EP_MEAN

Correlation Coefficient 1.000 .570**

WM_MEAN Sig. (2-tailed) . .000

N 90 90
Spearman's rho
Correlation Coefficient .570** 1.000

EP_MEAN Sig. (2-tailed) .000 .

N 90 90

**. Correlation is significant at the 0.01 level (2-tailed).

INTERPRETETION

For the purpose of determination of Correlation between workplace motivation and employee
performance , spearman correlation has been used . From the above table we can see that
correlation is 0.570 which is positive , hence there is some relationship between the two
variables.

Since significant value is .000 which is less than .05 , hence there is positive and significant
relationship between workplace motivation and employee performance.

REGRESSION
Regression analysis has been used to establish relationship between dependent and
independent variable i.e. the impact of workplace motivation on employee’s performance.

Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate

1 .533a .284 .276 .458

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a. Predictors: (Constant), WM_MEAN

Coefficients

Model Unstandardized Coefficients Standardized t Sig.

Coefficients

B Std. Error Beta

(Constant) 3.797 .345 10.994 .000

1
WM_MEAN .550 .093 .533 5.908 .000

a. Dependent Variable: EP_MEAN

ANOVAa

Model Sum of Squares df Mean Square F Sig.

Regression 7.314 1 7.314 34.902 .000b

1 Residual 18.441 88 .210

Total 25.755 89

a. Dependent Variable: EP_MEAN

b. Predictors: (Constant), WM_MEAN

INTERPRETETION

In the first table R2 is .284, hence there is some impact of Motivation

Since the significant value is .000 which is less than .05, hence there is an significant impact of
workplace motivation on job performance.

Since the significant value is less than .05 thus model exists. There is .284 explained variance .

Y=

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DEMOGRAPHIC VARIABLES

1. GENDER

INTERPRETETION

Independent Samples Test

Levene's Test for t-test for Equality of Means

Equality of Variances

F Sig. t df Sig. Mean Std. 95%

(2- Differ Error Confidence
tailed) ence Differ Interval of the
ence Difference

Lower Upper

Equal variances
2.846 .095 -1.274 88 .206 -.148 .116 -.379 .083
assumed
WM_MEAN
Equal variances not 77.75
-1.426 .158 -.148 .104 -.355 .059
assumed 0

INTERPRETETION
Workplace motivation is not influenced by gender , since the significance value is greater than .
05 , thus we have failed to reject the null hypothesis .

2. AGE
ANOVA
WM_MEAN

Sum of Squares df Mean Square F Sig.

Between Groups 3.825 4 .956 3.994 .005

Within Groups 20.352 85 .239

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Total 24.177 89
INTERPRETETION

Workplace motivation is influenced by age as the significant value is less than .05, therefore rejecting
the null hypothesis.

3. MARITAL STATUS
ANOVA
WM_MEAN

Sum of Squares df Mean Square F Sig.

Between Groups 1.008 2 .504 1.894 .157

Within Groups 23.168 87 .266
Total 24.177 89

INTERPRETETION

Workplace motivation is not influenced by marital status as the significance value is more than .05 i.e.
we fail to reject the null hypothesis.

5. SALARY

ANOVA
WM_MEAN

Sum of Squares df Mean Square F Sig.

Between Groups 1.051 4 .263 .966 .431

Within Groups 23.126 85 .272
Total 24.177 89

INTERPRETETION

Workplace Motivation is not influenced by salary because the significance value is more than .05
therefore we fail to reject the null hypothesis.

6. EDUCATIONAL QUALIFICATION
ANOVA
WM_MEAN

Sum of Squares df Mean Square F Sig.

Between Groups .023 1 .023 .085 .772

Within Groups 24.154 88 .274
Total 24.177 89

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INTERPRETETION

Workplace motivation is not influenced by educational qualification as the significance value is more
than .05 and therefore we fail to reject the null hypothesis.

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 CHAPTER 5:
FINDINGS AND
CONCLUSION

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LIMITATIONS OF THE STUDY
Some of the limitations of the present study are being delineated below which have affected the
present study.
 The study suffers from the regional bias since it covers only one IT company i.e.
“Hindustan computer limited” in Delhi in view of time and resource constraint. Thus the
findings may not be representative as a whole.
 There are chances of a biased opinion from the employees in the light of performance
being a sensitive issue.
 Some of the respondents might have provided inaccurate information because of paucity
of time.

With these limitations the study can be looked upon as only an exploratory attempt to have an
insight on employee’s performance. Nevertheless, the study has great significance for the IT
sector as the study is based on that only.

SCOPE FOR FUTURE RESEARCH

The following areas can be identified for further research.
 The study can be conducted on more IT companies to have a comparative study.
 The research can be made to know the factors of motivation on the workplace.
 The research can also be conducted to know the efforts of organization to motivate their
personnel.
 The study can also be conducted on other industry to know the differences of other
sector.
 The various motivational factors can be studied individually to understand their
individual impact on employee’s performance.

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REFERENCES AND BIBLIOGRAPHY

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