Effect Of Motivation Hygiene Theory Commerce Essay

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As a result of the innovation of technology and use of it in most of businesses, we have seen various changes in the world's economic expansion. One of the changes that bring the most challenge is the emergence of a global market. Even though many advances in technology have changed the workplace in recent years, humans still play a vital role in the operation of a business. Thus, it can be said that the human factor is crucial to business success. Therefore any firm needs continuous development in all elements of business like use of modern technology, sales & marketing and of course Human resources. Human resource is one of factors of prime cost of a firm. Therefore human resource becomes more and more important factorto exist and develop in today's global market.

Hence, in order to maximize the benefit from the performance of the employees, the employer must develop strategies to manage and improve their human resources so that they can perform their best. To create an effective strategy, the employer needs to understand that there are many factors that affect the employee's behaviour within the organisation. One of the key factors that has an impact on the performance of an individual in the organisation is their motivation

MOTIVATION: The scope of term motivation is very wide and applies to various factors that affect the employee attitudes positively. There are some theories that relate to motivation like Herzberg's Motivation hygiene theory and Maslow theory. I have selected Herzberg's Motivation Hygiene theory for my research proposal and its effect on employee performance.

My aim in selecting this topic for research proposal is to highlight the importance of motivation factors, discussed in this theory, in an organization or in other words to prove how these factors play an important role in any organization's success.In this theory the factors that affects the motivation are, (1) quality of supervision (2) Pay (3) Company policies and Administration (4) Physical working condition (5) Employee relationship with others (6) Job security. This report will enable the employer to answer why it is their responsibility to motivate the employees and explain how it plays a vital and indispensable role, even in presence of modern technology. Similarly it will enable an employer to understand that investment in and factor of motivation yields success in business. The more motivated employee will work more efficiently. It will not only improve quality of work but will increase revenue. Similarly it will decrease cost as well to accomplish company goal in comparatively less time. We can say employee motivation is linked to company goal.

After discussing importance of motivation to some extent we should understand about motivation.We can simply say, by motivation we mean all managerial steps and measuresthat are taken in an organization to direct and sustain human behavior in order to attain the organizational goal. Motivation reflects the employee behavior or attitude towards his/her job. And by employee behavior we mean his mental approach towards his job that will ultimately affect the organization goal.

Motivation is a relative terminology that varies from person to person. After studying various theories of motivation like Maslow's Hierarchy theory of need, Herzberg Motivation theory and expectancy theory we can understand that motivation doesn't mean someparticular hard and fixed rules. And by applying such rules human resources managers can improve employees' performance. The steps taken to motivate employees in some organization will not yield same positive result in another organization. Or we can say the needs and requirement of an organization will differ from other.

Keeping in view the nature of motivation and its effect on business, the questionnaire for research designed for any kind of organization because motivation term is common in all kinds of businesses. It is designed to get data from different individuals, working in different environment so that we can know how and to what extent motivation does affect their work performance?

Performance: The act of performing the duty. It means doing something using his knowledge, skill and experience.

Efficiency: The ratio of the output to the input of any system. Economic efficiency is a

general term for the value assigned to a situation by some measure designed to capture the

amount of waste or "friction" or other undesirable and undesirable economic features present.

It can also be looked as a short run criterion of effectiveness that refers to the ability of the

Organization to produce outputs with minimum use of inputs.

As most of the employees' needs are covered in Motivation-hygiene-theory, therefore this research proposal will help HR manager or employer to know about the importance of any of the motivation factors that can affect employee efficiency. So they can take proper steps to attain the required result from employee.

Literature Review:

Motivational theories :

According to Maslow, employees have five levels of needs (Maslow, 1943) as follows1:

The 'physiological' needs

There are some basic needs that comes even from the birth of every human being. A human being can't live without that. A person who even doesn't render any service to other but needs this. It includes food, clothes, shelter, medicine, and air. Such need can be fulfilled by increase in income and by providing accommodation etc.

The safety needs:

Safety is also one of the basic need of a human being. Christopher D. Green (2000)expalains

Practically everything looks less important than safety, (even sometimes the physiological needs which being satisfied, are now underestimated)

The love needs

A man also needs love and affection of not only of his relatives but the people in his group. He will hunger for affectionate relations with people in general, namely, for a place in his group, and he will strive with great intensity to achieve this goal. Christopher D. Green (2000)

The esteem needs.

A person always needs respect, regards and admiration. 

respect - regard


The need for self-actualization

Even a person's all needs are fulfilled but we expect other will develop. 

From a motivational perspective, people will be motivated to execute at a higher level when given a chance to do challenging, pleasant work and would put their fullest abilities to perform such enjoyable work. Challenging jobs which require skills and abilities would promise intrinsic benefits to the workers (Appelbaum et al., 2000).2

As each of these becomes substantially satisfied, the next need becomes dominant. Malsow separated the five needs into higher and lower orders, Physiological and safety needs were described as lower-order needs and social, esteem and self-actualization as higer-order needs. The differentiation between the two orders was made on the premise that higher-order needs are satisfied internally (within the person), whereas lower-order needs are satisfied externally , by things like pays, union contracts and tenure.

Motivation-hygiene-theory :

It is also two factor theory. It was propose by psychologist Frederick Herzberg. According to Herzberg " the opposite of satisfaction is not dissatisfaction, as was traditionally believed ." He furthermore explained that " the factors leading to job satisfaction are separate and distinct from those that lead to job satisfaction. Therefore, managers who seek to eliminate factors that can create job dissatisfaction may bring about peace but not motivating them. As a result, conditions surrounding the job such as quality of supervision, pay, company policies, physical working conditions, relations with others and job security were characterized by Herzberg as hygiene factors " Robbins, Judge and SeemaSanghi. (2007), P.218,

"Motivation is the process that account for an individual's intensity, direction and persistence of effort toward attaining a goal." Robbins et al (2007) explains that we have to consider the quality of effort as well as its intensity and persistence along with his direction towards the organization goal. Level of motivation varies both between individuals and within individuals at different times. And by intensity they mean how hard a person tries.

Lawler (1973) in his theory of motivation, claims that job satisfaction depends on the perception of what is invested in work (job input), the characteristics of the work and what will employee get from the job, compared to other people.

In other theory, theory of values, Locke (Locke 1976) argues that satisfaction comes from the fact that, a person can works to achieve goals that have value for him, which he valued.


The main aim of managers' interest in motivation is actually to assess its impact on work. "Organization with satisfied employees are usually more effective than organization with less satisfied employees." Ashtalkosi, Savo, and Irena Ashtalkoska. (2012).

Ashtalkosi et al (2012) explains that "The development of human resources that finds an important practical application in enterprises from the developed world, account facts which refer to the conclusion that satisfaction of employee can greatly contribute to increasing productivity in enterprises and in states from whole world."


The dependent variable is employee performance. We have to see how it is affected by different factors shown in hygiene-factors theory. As we know employee performance increases and decreases by different factors. It doesn't remain same, that means performance of an employee is not a constant factor. If an employee is more satisfied he will show good performance and if he is less or not satisfied his performance will be at minimum level or in some cases he will decide to cancel his job. Our independent variables are the factors that are mentioned in Herzberg's motivation-hygiene-theory or two-factors theory. These factors are:

Quality of supervision


Company policies and administration

Physical working conditions

Employee relationship with others

Job security

We attempt to explain the variance in dependent variable (employee) performance by six independent variables. (1) Quality of supervision. Supervisors are the direct representative of management who deal with employees directly. Therefore his relation with employee will affect their performance accordingly. If employees are satisfied so they will be motivated well and vise versa. Similarly supervisor manages the employees activities to attain organizational goal. Our second IV (2) is pay. Pay means the remuneration for his services that an employee gets from organization. If he feels that he is well paid for his services so he will be motivate to do his job efficiently. But if he finds that as compare to market he is not getting sufficient amount for his job so he will not perform his job at his maximum capacity level. Our third Independent Variable (IV) is Company policies and administration. By company policies we mean the rules and regulation regarding employee matters. Like rules for End Of Service Benefits (EOSB), annual and casual leave, policies regarding working hours etc. Such policies do affect the employee performance. Like if in a company EOSB is not paid to employees and they work on daily wages system, so employee's performance will not at maximum level. Our fourth Independent Variable is - Physical working condition. By physical working condition means the environment of the place where the employee perform his duty. If the working place is not tidy, hygienic or suitable for that job, it will affect the employee performance negatively. Suppose if lighting system in accounts office is not upto standard so accountant will definitely face problem in maintaining records because it deals with reading and writing figures. Our fifth Independent Variable is -employee relationship with others. Employees' relation with their colleagues plays a significant role in performing duty. In a tense situation with others will effect employees performance. Sometime it affects adversely coordination which is very important factor in any organization. Our sixth Independent Variable is -Job security. It means does an employee feel his job secure? If employee is not sure about his job and he thinks that he can be terminated any time from his job without reason so he will not be satisfied. He will even prefer to join an other organization even at low pay but with job security. Therefore job security also plays a vital role in employee performance.

Conceptual Model:


Quality of Supervision


Company Policies &



Physical Working Conditions

Employee relationship with others

Job Security


With the help of above we can form the following hypothesis

H1= Quality of supervision effects the employee performance

H2= Payeffects the employee performance

H3= Company Policies and administrationeffects the employee performance

H4= Physical working conditionseffects the employee performance

H5= Employee interpersonal relation with otherseffects the employee performance

H6= Job securityeffects the employee performance