Motivation Effects On Productivity Commerce Essay

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Fundashon pa Edukashon I Formashon di Fishi I Kapasitashon, was founded in 1980 thanks to the joint efforts of union organizations, employers organizations, school boards and the island government. Assuming the role of national carrier in 1994, which implied that the foundation gained the status of lawful and sole authority to organize / coordinate activities in the field of non- formal vocational education and training, FEFFIK actually committed its organization and employees to be at all times prepared (competent) to fulfill the task assigned. FEFFIK's strategic plan is to provide job training in the diverse areas for individuals, the so called school dropouts, to guide them (back) to employability, as well as upgrading/ retraining programs for employees on a commercial basis. For lack of public funds, however, the institute is obliged to operate; depending on a limited government funded budget. This study explores the strategic plan in use by FEFFIK's Human Resource Management (HRM). Specifically, it deals with the issue: how to develop an employee motivation plan in order to increase productivity. Developing a motivation plan for FEFFIK employees is an extremely important step towards accomplishing the organization objectives with a limited budget and a minimal size of work force. The motivation plan must trigger the employee's interest from his / her first day in "office"; outlining career prospects within the institute. The strategy role of the motivation plan has to focus on all employees, stimulating and promoting a culture of motivation in the working environment, in order to improve productivity and consequently establish a FEFFIK organization that will accomplish its main objectives, inclusive be partially self-supporting.

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The motivation plan has to serve the purposes of the research:

(1) explain why employees become unmotivated, (2) identify the consequences a company endures with unmotivated employees, (3) discuss strategies or techniques the FEFFIK organization can use to motivate its employees, and (4) show the positive consequences the company enjoys with motivated employees.

Based on the nature of the factors influencing employee attitude and behavior, the following distinction is made:

* Intrinsic motivation

* Extrinsic motivation

Both are very important aspects to determine the motivation level of the individual; influencing his /her attitude and behavior at work and in private life. The focus of this study is to highlight intrinsic and extrinsic motivation of FEFFIK employees. To accomplish the objectives of the study, it is necessary to investigate the administration and human resources of the FEFFIK organization. Therefore, it is imperative to extract sub factors from the intrinsic and extrinsic motivation of FEFFIK employees. By recognizing and understanding these sub factors, it is possible to develop a plan containing a priority list, describing what factors to stimulate, when and how to stimulate them positively, using the accurate and effective motivation plan for the employees in order to increase productivity. FEFFIK's motivation strategy must be based primarily on the well- being of employees to outperform others whose principal goal is to make money. If the strategy is to create a high-performing, value-based organization the first precedence is on securing the well-being of the entire personnel. The superior performance of value-based corporate strategy is strongly characterized by low rates of absenteeism and turnover, additional innovation, increasing productivity and return on investment.

To achieve the objectives described earlier, the FEFFIK organization should know and recognize what factors are motivating employees to perform to the best of their abilities. Knowing these factors it may be possible to create a desirable HRM strategic plan that sustains and supports the vision of well-being of employees as a priority and also the realization of competitive advantages.

Employees are one of the most important resources in a company. There should be no factors to stop them from reach their potentials; realizing profession objectives. Their collective efficiency propels the operations of the corporation. Their manners in general dictate a company overall performance, thus creating an attractive corporate culture of motivation.

Human resource productivity should be one of the main concerns of a company. It requires an effective human resource policy/strategy and due decision-making on the part of corporate management. This has always been applied by numerous and diverse entities, small, medium sized and large businesses all over the world to avoid employee de-motivation, which is a typical reaction to mismanagement.

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Human resource policies and due decision-making are very important aspects to foster shared development in the employer-employee relationship. Motivation on the other hand, definitely, increases productivity.

Motivation in today's workforce:

Surveys on this topic reveal that employees become unmotivated when communication breaks down between management and subordinates. Lack of motivation with employees tends to increase carelessness, absenteeism, resource waste, and turnover rates in an organization. Because employees possess different values, they are motivated by different things.

Communicating information, praising employees, and recognizing effective performance are key strategies a manager or supervisor can use to motivate employees. Production, sales rates, and morale; they all increase when employees become motivated.

The results of this research revealed surprising information: money alone is not enough to motivate employees nowadays.

One recommendation is: create an environment for employees to perform to their highest. Promotion of a culture of motivation and sharing of knowledge in the workplace is an essential process leading

to an effective and efficient structure for communication.

Another recommended is: develop and implement appropriate systems for measuring the factors that affect motivation and productivity. In other words, plans have to be developed. These plans must focus on promoting the factors that empower the constructive relationship between motivation and productivity.

Contents

List of tables

Table of figures

Introduction

1.1 Introduction

In 1994 Fundashon pa Edukashon I Formashon di Fishi I Kapasitashon(FEFFIK) was designated the function of national carrier by the then island government, which implied that the foundation gained the status of lawful and sole authority to organize / coordinate activities in the field of non- formal vocational education and training. This decision was a crucial one for the continuation and professionalization of the education and training institute FEFFIK, founded in 1980 thanks to the joint efforts of (local) union organizations, employers' organizations, school boards and the island government. Assuming the role of national carrier as already pointed out, FEFFIK actually committed its organization and employees to be at all times prepared (competent) to fulfill the task assigned to. FEFFIK's strategic plan is to provide job training in the diverse areas for individuals, the so called school dropouts, to guide them (back) to employability, as well as upgrading and retraining programs for employees on a commercial basis. For lack of public funds, however, the institute is obliged to operate, depending on a limited government funded budget. In the past decades FEFFIK has been assessed / audited by external professionals on several occasions. In their conclusions most of the assessment / audit reports made it clear that FEFFIK is not fulfilling its task to the satisfaction of all stakeholders (principals).A very important recommendation in one of these reports(SOAB, 2009, p.45)reads:

"Om de motivatie van het personeel te vergroten zou de communicatie met het personeel verbeterd dienen te worden en zou mogelijk het personeel een actievere rol kunnen krijgen in het verhelpen van knelpunten binnen de organisatie"

This study explores the strategic plan in use by FEFFIK's Human Resource Management (HRM). Specifically, it deals with the issue: how to develop an employee motivation plan in order to increase productivity.

Developing a motivation plan for FEFFIK employees is an extremely important step towards accomplishing the organization objectives. The motivation plan must trigger an employee's interest from his / her first day in "office", outlining career prospects within the institute.

The strategy role of the motivation plan has to focus on all employees, stimulating and promoting a culture of motivation in the working environment, in order to improve productivity and consequently enable the institute to accomplish its main objectives, inclusive be partially self-supporting (report FEFFIK Si nos ke nos por,2001) .

The next paragraph, Background of the study, focuses on the latest information regarding the development of tools that are used for measuring motivation, performance / productivity as well as research on these variables. Furthermore it explains why it is imperative to measure and control these variables in their respective environments. The next paragraphs cover the problem statement, sub problems, the limitations and thesis setup, respectively.

1.2 Background of the study

To be a successful enterprise it is imperative for an organization to improve its performance and be number one in the sector. But at the same time be the best employer in the sector that suppresses annual turnover rates to a minimum in the organization. To comply with both strategies an organization has to inter-link theoretical perspectives; organizational culture theory and organizational aesthetics theory (Bjerke, Ind& De Paoli, 2007). Other studies on the topic suggest that human relationship between the management and employees, in all aspects, results in wellbeing at work amongst workers (Baptiste, 2008). There are a number of systems to measure productivity, performance and motivation. For this study it is important to mention the following systems;

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Data Envelopment Analysis (DEA); a non-parametric mathematical programming approach used to evaluate the efficiency of decision-making units (DMUs) with multiple inputs and multiple outputs (Wu & Ho, 2007).

The Genos Employee Motivational Assessment (GEMA); used to measure the degree of motivational alignment between employees and their role, management, team, and organization motivational characteristics (Gignac & Palmer, 2011)

The "Work Environment Diagnosis Instrument" (WODI) toolkit; another measurement instrument that is used to measure the effects of the work environment on the individual's productivity (Maarleveld et al., 2008).

Measuring is acquiring knowledge. Therefore, it is only when an organization uses the appropriate systems to measure the factors that affect motivation and consequently the individual's productivity, that organization may proceed to converting data into information for developing a HRM motivation plan, in order to trigger the individual's stimulation and motivation. It is also important to understand and determine the relation between motivation and productivity. This is necessary to establish which factors have to be addressed to improve the individual's productivity, based on the HRM motivation plan.

The motivation plan is not the solution or the answer to all factors that hold back productivity in an organization. It is any way a valuable tool that managers can use in order to influence their employees' motivation. Dew (2009) commented that a good understanding of how creative motivation varies during problem solving is useful for managing creativity.

If creative motivation varies systematically and predictably during problem solving, managers can trigger creative motivation and consequently creativity, by influencing employees' perceptions of problem solving progress (Wood, 2006).

Shadare and Hammed (2000) argued that a motivated employee is stimulated to produce more by pursuing that extra mile to the benefit of the organization, and also pointed out that the majority of the motivated people have been proved to be extremely efficient time managers. The efficiency of an organization is seen in its productivity.

The production capacity of an organization dependents on the following factors; the primary factor is the human capital, the production of an organization, is also dependent on individual efforts of the employees. Levoy (2009) said that employees should be understood and re-energized to stay creative and productive. Also employees who are efficient are those that have a highest output in spite of the situations surrounding them as measured within a given time period.

The second factor is the equipment/machine production capacity. When an organization acquires an equipment or machine that is meant to produce a certainty amount of a product per hour, then if the machine cannot deliver or produce to the expectation, then it is not efficient. There is a bunch of energy wasted as the machine expenditure is still equal but the production is less. The machine may require maintaining, this is comparable as motivation in the first factor human capital (Shadare & Hammed, 2000).

Motivated employees cover a superior control on the organization's performance. Once the leadership is capable and adequate, they should be able to control the organization performance (Shadare & Hammed, 2000). A leader in an organization should guide the employees in the direction to realize the purpose of the organization. An employee tends to follow the pads of their leader. Leaders with a kind, thoughtful and open-minded approach tends to give the employees more confidence to feel safe in their presence (Oosthuizen, 2009).

The response of the employees should display high opinion and confidence in their leader by performance improvement and consequently more production.

The increase in employees' motivation is visible and realizes when there is success of objectives and goals that are set, enhancing and identification of systems in place, a favorable working situation as well as understandable employee's development that is evident. Objectives that are set in a group are more liable to be evaluated and valued as the members are part of setting the target (Ordóez, Schweitzer, Galinsky & Bazerman, 2009). Participation of the members is imperative for a durable production (Levoy, 2009) and (Ordóez et al., 2009).

Dozier (2011) conclude that it is clear that motivation is inbuilt within oneself and all that is required is for persons to become conscious and to address it. No one can motivate another, but one can encourage another person to make the changes that are essential to become motivated. Motivation has an immense influence/ affects on productivity of the organization and for this reason, this ought to be taken with the significance importance it deserves.

Companies should time after time evaluate and improve productivity for them to stay alive in today's highly competitive industries. This can be achieved through effective employee motivation planning strategies that support the overall organization strategy.

The next paragraph deals with the research question and the related sub problems.

1.3 Research question and Sub problems

To which extent will motivation affect the productivity of FEFFIK employees?

Sub problems

What is the motivation level of FEFFIK employees?

How does FEFFIK measure employee productivity?

How does FEFFIK promote the relationship between employee motivation and productivity /performance?

1.4 Purpose of the study

The purpose of the study is to determine whether enhancing the motivation level of FEFFIK employees will improve FEFFIK's productivity.

1.5 Limitation

This study does not involve retired FEFFIK employees or personnel (paid by others) but placed at the disposal of the organization. Students as well are excluded from the research. Furthermore, the research will not inquire after information that concerns the employee's spare time. Also does not include part time and personnel not with permanent service.

1.6 Thesis setup

The rest of the thesis is structured as follows:

Chapter 2 cover motivational theories, motivational strategies and explores the literature reviews that describe the definition of motivation and productivity. Furthermore, it focuses on the different factors and effects on motivation and their influence on the productivity of a motivated employee. Chapter 3 describes the study methodology whereas; Chapter 4 presents details of the outcome of the study, explaining the relationship between the factors motivation and productivity on employees. Chapter 5 states the conclusions and recommendations of the study.

2. Literature Review

2.1 Introduction

A lot of research has been done concerning motivation of employees and the effects on productivity. These researches are the focus in this chapter. This shall cover motivational theories, motivational strategies and their effects on productivity. And also finally recommendations of the most accurate motivation strategies and theories that addresses FEFFIK situation.

There are a measureless amount of motivational theories that have been set forward to enlighten the motivational factors that have an effect on or control the performance and the perception of individuals and what this perception does to the organizational performance. In Lawrence & Jordan (2009), equity theory, the opinion that individuals have concerning their reimbursement (Levoy, 2009) for their labor, such that they distinguish that they are poorly paid as compared to the effort that they put in their job, the answer is more likely to be that the individuals will reduce their hard work in view of whether they have high internal (intrinsic) motivation (Fried & Slowik, 2004).

In another publication of theory in Lawrence & Jordan (2009) does approach up with a one - dimensional focal point on motivation that is implicit-related. In their theory, they come up with the MMG (Multi motive grid) which is a theoretical measure of the motivation that is in fact implicit - related. In their theory, they support their point of view on the use of pictorial stimuli which are intended to stimulate the concealed motives within one self. In this theoretical structure, there is a predestined reaction out of the questionnaire that is issued at that time of the interview.

In this approach of motivation, the theorists create story-based system as a way of measure to get the response from the individuals (Schmalt & Sokolowski, 2000). It is also destined to achieve access to what they regard to as the implicit sections, which are only accessed by highly privileged that requires undisturbed access, which is granted, to the schematic section of the memory (Lawrence & Jordan, 2009).

In a different approach that paying attention on the explicit emotional response as explained in Lawrence & Jordan (2009), the NAQ (Need Assessment Questionnaire) which is meant to stimulate emotional response is used to measure the motivation responses (Levoy, 2009).

According to NAQ theory, there is an access to a classified four types or motivations that are within the self (Lawrence & Jordan, 2009). The first is the inbuilt need that seeks to be identified with great and outstanding achievements and (Emery, 2009). Secondly, the need to be an affiliate / to be affiliated to a strong and powerful individual (s) (Levoy, 2009) has been identified in this theory. The third type of motivation that is prominent is the dire need to gain dominance or be seen as to be powerful (Lawrence & Jordan, 2009).

The last motivation type that is evident is one that demonstrates a need to be autonomous. This theory is highly inspired by the theory of needs as proposed in. However, the NAQ theory is inclined to work-content and hence does not explicit on the motivation aspect that is outside the working environment (Lawrence & Jordan, 2009).

As stated by Lawrence & Jordan (2009), explicit motivation is as an outcome of strongly built rule from the hassle of the social order as well as normative pressures therewith. It is fundamental that the decision-making distinguish and recognize the diverse motivations that motivate their employees (Levoy, 2009)

The incentive theory can be dividing in two definite approaches. One is paying attention on individuals who have tough implicit motivation inside themselves (Lawrence & Jordan, 2009). In the implicitly motivated employee it is imperative that such things as being given new and demanding jobs, which will be an incentive for superior accomplishment, recompense the employees (Rabey, 2001). Giving the employees more responsibility to one side and on the other hand ask for accountability. They can perceived it as more trust to them hence and the very fact as being more powerful that the rest of the employees consequently a higher motivation factor that such people are willing to pursue (Lawrence & Jordan, 2009).

The goal setting theory as stated by Fried &Slowik (2004), it is the most reliable tool in addition to the diversity that is established from results is high in the event that the goals which are set are complicated or tough, shared with the reality that the goals stay specific to the purpose and they are as well achievable.

In the goal setting theory, it is understandable that the goals should be extremely detailed as well as demanding goals that need additional effort and input. This has been found to be a foremost advance to the behavior as well as the productivity of the individuals within the organization this is a form of solution that can be used to improve the productivity of the employee. (Ordóez et al 2009)

There is various explanation of the incentive theory of motivation and the type of motivational strategies that a researcher uses in their investigation (Lawrence & Jordan, 2009). To mention one example, in a research of a security institute as highlighted by, the employers and other higher-ranking officials did make use of a slightly crude method of giving incentives to their workers. It is highlighted of their behaviors at the workplaces where employees were in reality spanked while at the workplaces in the name of Motivational purposes. This approach of stimulus that was adopted in the institute was referred to as Camaraderie building exercise (Houts, 2010).

To reward a person has some short - term effect on the motivation of the individual in the organization (Levoy, 2009). Adam Smith (1776) as quoted in Emery (2009) is recognized to have been on the forefront in popularizing the need to have division of labor so as to optimize production in the organizations. According to Emery (2009), there are two sources of the motivation drive. One of the drives is brought out by the fact that there is an internal need to gain resources as supported by the need theory (Lawrence & Jordan, 2009).

The second source of motivation is the commitment by an individual to external problems or might be the opportunities that are available elsewhere The most important of all the factors is the fact that the employees share the same goals as their management as this would be a true measure of the strength of the organization (Emery, 2009).

Inherent flexibility that is confirmed by the resources which are available in the organization has a great impact on the firms' performance as proposed by. The issue is not much of the availability of the resources in the firm as much of how applicable is the resources to the firm. The ability of a firm to put into use the different resources that are at the disposal of the organization is very important (Ketkar & Sett, 2009).

The human resources should be flexible enough especially in their relationship with the employees which can be translated into firm's performance if properly managed. This flexibility, especially in the human resources department does help to express the need for variety in information distribution and synthesis offers better situational (Ketkar & Sett, 2009).

In the event where downsizing an organization seems impossible. After all possible avenues have been considered, and then it is prudent enough for the management to look for the more opportunities that would enable for more flexibility within the organization. This approach, together with innovation and well - established and improved internal communication set in place, improves the level of trust between the employees and the management as things are not done in the dark.

Several factors are important that foster personal involvement. To start with, Innovation as well as creativity enhanced commitment by the organization's management does help in explaining the noticeable change in the organization.

Secondly, improved communication channel, which incorporates all the stakeholders, is also important as well as having developments that are more flexible to the organization's needs (Mishra, A., Mishra, K., & Spreitzer, G., 2009).

Workers who are allowed to set their own performance will generally try to meet their own expectations. It is important to have the employee make a verbal commitment to their expected performance levels. Also, individuals and groups are more likely to achieve when they make a public commitment to do so. This can be caused by such commitments are promises, and most people think of themselves as people who keep their word.

The main problem with this strategy results in workers who have low self esteem. At this stage, managers are faced with the problem of worker motivation to think positively about yourself and your self-esteem is correlated with high performance. In general, this strategy is effective, but may require an administrator to strengthen the assets of a first employee.http://latestinbusiness.blogspot.com/2011/10/7-motivational-strategies.html

To start an organization and keep it running is not just making things happen. It is planning, implementing, evaluating and adjusting the plan in order to fulfill the objectives and purposes of the organization and finally, the realization of its vision and mission.

According to De Nesiand Griffin (2010) it may take an organization many years of hard working and planning to accomplish the phases mentioned before. Doing business is a dynamic exercise which requires research and alignment of the different areas of an organization with the corporate strategy of that organization. For the purpose of this study the following areas are worth mentioning:

Management

Human resources

Accounting and finance

Marketing and operation.

In essence, developing a motivation plan for the a organization is addressing the components and the aspects related to them, listed below;

HRM department

Strategic plan

Motivation plan

Productivity and performance measurement plan

Compensation plan

Employees

Motivation

Intrinsic

Extrinsic

Productivity

Figure View of factors that affect motivation

According to Harness (2009), the recent trend is to approach strategic HRM as a key tool linking HRM actions for the realization of corporate objectives.

The strategic role of HRM cannot be excluded when an organization is making decisions concerning overall policies.

As Sripirabaa and Krishnaveni (2009) stated, the HRM is responsible for the philosophies, policies and practices that concern/involve the environment of employment affairs in organizations. It is important to address these issues to achieve the balance in the work place because HRM also bears responsibility for the organization overall performance. The aim of the organization strategy and the HRM strategy is to reach the balance between employee issues and organization goals in order to guarantee or maximize organization performance through the process of continuous improvement, using evaluation instruments / tools.

Organizations, whose corporate strategy is mainly based on the well- being of their employees, will outperform those whose principal goal is to make money. In high-performing, value-based organizations, the first precedence is on securing the well-being of the entire personnel. The superior performance of value-based management is strongly characterized by low rates of absenteeism and turnover, additional innovation, increasing profits and return on investment.

To achieve the objectives described before, organizations should know and understand what factors are motivating employees to perform to the best of their abilities. Knowing these factors it may be possible to create a HRM strategic plan that sustains and supports the vision of well-being of employees as a priority (Baptiste, 2008).

An imperative and basic step of the study involves understanding motivation and productivity and, more essentially, knowing how to measure these key factors.

Understanding motivation as cited in Goodman, Jaffer, Keresztesi, Mamdani, Mokgatle, Musariri, Pires and Schlechter (2011):

"Motivation can be defined as a force to realize a need (Aderman, 1999; Maslow, 1954; Murray, Poole, &Jones, 2006). According to Vinacke (as cited in Landy & Conte, 2004), motivation entails the conditions responsible for variations in intensity, quality and direction of ongoing behavior. Motivation may be driven by either intrinsic or extrinsic factors or the interplay of both (Maslow, 1954)".

Several researches established that the environment impact significantly the worker's motivation. Wiley (1997), Hartley (2002) and Roelofsen, (2002high light that the influence of environments and the interplay linking an individual personal motivation and his social environment. Hartley (2002) argues that further than a variety of changes in many organizational forms and processes, there has also been substantial restructuring in pay and conditions, and in the psychological contract between employees and their organizations.

Understanding productivity as cited in Phusavat, Anussornnitisarn, Sujitwanit and Kess (2009):

"It is the relationship between a company's output and input with the ability to utilize resources and time in the manner in which a company can achieve its policies and objectives"

It is the measure of the efficiency of a person, machine, factory, system, etc., that's converting input into useful output. Productivity is computed by dividing average output per period by the total costsincurred or resources (capital, energy, material, personnel) consumed in that period. Productivity is a critical determinant of cost efficiency.(HTTP://WWW.businessdictionary.com/defination/efficiency.html )

Figure View of productivity variable process

Based on the nature of the factors influencing employee attitude and behavior, the following distinction is made:

Intrinsic motivation

Extrinsic motivation

Both are very important aspects to determine the motivation level of the individual, influencing his /her attitude and behavior at work and in private life.

The focus of this study is to highlight intrinsic and extrinsic motivation of employees. To accomplish the objectives of this study it is necessary to investigate the administration and human resources of the organization. Therefore, it is imperative to extract sub factors from the intrinsic and extrinsic motivation of employees. By recognizing and understanding these sub factors, it is possible to develop a plan containing a priority list, describing what factors to stimulate, when and how to stimulate them positively, using the accurate and effective motivation plan for the employees in order to increase productivity.

The plan has to be in alignment with the strategic plan, guiding and sustaining the desirable employee attitude the institute wants to promote in the work place. Furthermore, the motivation plan must provide the management and all other employees, information on how to improve team work, communication skills, and innovativeness and employee participation in projects (report SOAB 2009).

In the end, strategy has created the type of employees that experiences personal development as a tool / instrument to achieve the highest performance with a view to improve productivity and service, beyond the expectations of students and clients. Scrutinizing main task is imperative to create a long life learning relationship with students in order to guarantee continuity of the organization. Organization long life training programs will represent the one and only alternative in the field of vocational education and training in Curacao (report FEFFIK "Si nos ke nos por 2003).

2.2 Relationship between motivation and productivity

According to Hanafizadeh and Osouli (2011), planned processes chosen from corporate processes are in alignment when they meet the strategic goals the corporation pursues. The motivation plan for any organization should be considered a strategy to create a culture inspiring motivation (Mussel and white, 2011).

Halkos and Bousinak (2009) agree with Herzberg (1966) that constructive stances towards labor lead to successful performance and that they are associated with labor conditions/components, such as: 1) Achievement, 2) Recognition,3) Responsibility, 4) growth potentials and 5) the nature of the work.

These factors, called motivators, are of influence on the individual's attitude and behavior towards superior performance and personal efforts. On the other hand, unconstructive stances that lead to dissatisfaction are related to organizational structures, such as management, supervision, remuneration and interpersonal relationships. There are also other factors, the so called hygiene factors; they suppress the process of work dissatisfaction, although their effect on creating a constructive mind-set is rather insignificant (Herzberg, 1966).

Magotsi, Boon and Fletcher (2011) stated that relationship between motivation and productivity is based on the following variables:

Organizational citizenship behavior

Knowledge sharing behavior

Job satisfaction

Organizational commitment

Knowledge management.

Motivation and productivity are twin concepts when it comes to organizational improvement. Primarily, motivation functions as the initial stage in the process to attain productivity as the closing stage. Secondly, motivation is the unsurpassed source to inspire productivity as a positive effect. Finally, motivation is the incentive to activate productivity as an answer. All these are tangible links between the two factors.

To comply with the theories mentioned before, it is of paramount importance to understand the variables and their relationship with productivity. Consequently, appropriate systems have to be developed to measure input and output. As a final point, comparing / evaluating the result of the process regularly and adjusting the plan, if necessary, are imperative exercises to achieve the target / purpose.

The modified version of the Biggs (1989) conceptual model used in this study is presented in the

figure below and shows the lines of relationship between the variables used in the research.

Intrinsic Motivation

Valued

Recognition

Progress

Competence

Extrinsic Motivation

Wages

Incentives

Training

Benefit plans

Environment

Organization culture

Communication

Working conditions

Leadership characteristics

Employee Motivation

Attitude

Behavior

Responsibility

Commitment

Organization

Overall performance

Productivity

D

B

A

C

Figure modified version of Bigg's conceptual model of relationship between variables

A: represents the relationship intrinsic motivation and employee motivation;

B: represents the relationship extrinsic motivation and employee motivation;

C: represents the relationship environment and employee motivation;

D: represents the relationship employee motivation and productivity.

2.3 Intrinsic motivation

Quigley and Tymon, (2006), stated that a development in career literature increased their focus on career self-management. In its earlier stage, literature on career management frequently focused on organizational initiatives, varying from staff workshops, job rotation, job improvement, career progression ladders, etc., to organizationally planned programs or developmental stage theories.

Some definitions:

"Intrinsic motivation is when a person is motivated to do something based on an internal reward, such as enjoyment of the activity itself and/or a desire to be engaged in it."http://www.ehow.com/list_7428372_intrinsic-extrinsic-motivation-methods.html#ixzz23em65Sn3 "

"Intrinsic motivation refers to motivation that comes from inside an individual rather than from any external or outside rewards, such as money or grades. "http://giftedkids.about.com/od/glossary/g/intrinsic.htm

According to Greenberg and Baron (2003, 2000) definition of motivation could be divided in to three main parts. The first part looks at arousal that deals with the drive, or energy behind individual (s) action. People turn to be guided by their interest in making a good impression on others, doing interesting work and being successful in what they do. The second part referring to the choice people make and the direction their behavior takes. The last part deals with maintaining behavior clearly defining how long people have to persist at attempting to meet their goals

Quigley and Tymon (2006), sub-divided intrinsic motivation into four components to be used for measuring motivation:

Figure Components for measuring intrinsic motivation

The components in the figure above illustrate the influence intrinsic motivation exercises on individuals that have control of their careers and also the relationship between intrinsic motivation and career self- management.

Purcell and Hutchinson, (2007), said that employee conduct is regularly subdivided into varieties, referring to affective or attitudinal outcomes like job satisfaction and organization commitment referred to as organizational citizenship behavior (OCB). Baptiste, (2008), pointed out that HRM practices development has brought about an important change to the employee's wellbeing at work; it has a tendency to be extra positive rather than negative. He also stated that organizations have the task to support and develop good management / employee relationship to promote well- being in the workplace.

Halkos and Bousinakis, (2009), said that literature in recent years has come to focus on stress and job satisfaction of employees in the workplace as well. Stress may affect an individual in his/her personal life; consequently the same may happen to him /her in the workplace. The amount of working hours, the relationship between the management and the individual as well as team work may affect his/her functioning.

It is also reasonable to believe that increased stress leads to less productivity and that increased satisfaction results in more productivity. That is why when work trespasses on a worker's family life, it tends to affect productivity negatively. Superfluous work is more interconnected to bluff and personal fulfillment than to work load. Vigorous and dynamic employees change productivity positively (Halkos &Bousinakis, 2009).

2.4 Extrinsic motivation

Some definitions:

"Extrinsic motivation is when a person is motivated to do something based on external factors, such as the expectation of reward or fear of punishment."

http://www.ehow.com/list_7428372_intrinsic-extrinsic-motivation-methods.html#ixzz23enpJ8Zh

"Extrinsic Motivation refers to external incentives (such as money, grades, or prizes) for a person to perform a given task".http://k6educators.about.com/od/educationglossary/g/gextrinsic.htm

Cruz, Perez and Cantero (2009) pointed out that extrinsic motivation is measured as the variable of financial rewards.

Figure Variables for measuring extrinsic motivation

Furthermore, these external incentives motivate employees to perform valuable tasks for the organization. Workers are extrinsically stimulated if they are able to satisfy their needs in a roundabout way, particularly when it comes to financial compensation.

Extrinsic reward systems have been met with much controversy, and are generally thought of as less motivating than intrinsic rewards. Extrinsic rewards are even thought of as possibly causing harm. For instance, creating an extreme power dynamic in a relationship that may result in subversion, conflict and resentment that ignore an individual's ability to choose freely and express self-determination.

However, literature SDT's also shows that extrinsic motivation is not considered the main aspect triggering productivity (Deci and Ryan, 2000).

On the other hand, Boselie, Brewster & Paauwe, (2009), for instance, pointed out that it is not recommendable to ignore such variables because they are important aspects concerning employees.

Although these variables are used in motivation studies and theories, in reality, the variables intrinsic and extrinsic motivation are not easy to be defined. One individual's intrinsic motivation may be another individual's extrinsic motivation or vice versa. Be that as it may, intrinsic motivation should at all times be promoted.

These views reflect the characteristic nature of dualism and balance issues in the field of HRM practices.

A new and important issue in the workplace environment is the effects of green buildings on employee health and productivity

2.5. Conclusion

Understanding an organization and developing a plan, considering all factors and their relationships in order to meet the corporate strategy, is a very difficult task to fulfill. That is why, it is important to split the organization into manageable segments (Zikmund 2003). In order to gain competitive advantage the majority of organizations do their outmost to be productive, employing the smallest number of workers possible for a minimum amount of work hours. http://www.ehow.com/time-management-at-work

On the other hand, an important segment involves the strategy (to be) applied by the HRM department because it has to focus on the organization corporate strategy but at the same time concentrate on the human resource capital on the other hand. Both approaches are important for the positive development of the company.

The organization/leadership must undertake the important task to pursue a successful employee motivation strategy. Its role is encouraging high employee self-esteem and optimistic employee inspiration.

Understanding the variable "Motivation" helps the organization to understand the needs of an employee and may influence him/her to work more efficiently. Many motivation theories "pioneers", similar to Herzberg (1966), McClelland (1987), and Maslow (1968) have explained the idea of motivation through diverse models and theories.

Psychological and managerial approaches represent two models of motivation theories that throw some light on the reality that it is possible for an organization to develop a strategy to extract the best from workers, no matter the complexity of their work environment.

Employees are one of the most important resources in a company. There should not be anything to prevent them from reaching their potentials; realizing career objectives. Their summative productivity propels the operations of the company and their behavior in general dictates the company overall performance, thus creating an attractive corporate culture of motivation (Takash, 2008).

Employee Motivation

3. Methodology

3.1 Introduction

This chapter provides full details of the methodology used in the study. The procedures with a view to research design, data collection method, census method and data analysis are explained. To conduct the survey in an effective way and, far more important, to reach the objective of determining the intrinsic and extrinsic factors affecting employee motivation, consequently improving productivity to the highest level, the quantitative research method is the best.

3.2 Procedures

The surveys based on the quantitative research method. The FEFFIK organization numbers approximately one hundred and four (104) employees, sub- divided into personnel(66%) in permanent service and personnel (34 %)contracted for a limited amount of time. The employees in permanent service can be divided into teaching personnel(44 %)and education support personnel (56%),and as to gender, male (51 %) and female (49% )employees (HRM department, 2012).

The factors and change measurement indicators have to be analyzed and the outcomes utilized to develop a HRM motivation plan for the FEFFIK organization in the first place. Secondly, the motivation plan must address the factors that may affect the individual's motivation, resolving the individual's problems, if any.

The solution has to approach the aspects from both sides, addressing employee concerns as well as overall organization concerns, to improve and foster organization performance.

3.3 Participants

To guarantee a reliable survey outcome, it is important to obtain information from all levels of the FEFFIK organization. Hence, the focus on gender, male (51 %) and female (49%)employees and on diverse areas covered by the two main categories of employees, teaching personnel (44 %) and education support personnel(56%), as submitted by the HRM department (2012). The teaching personnel include teachers / instructors who have been employed by the foundation for 1 to 25 years, whereas the education support personnel covers the areas listed in the table below:

Areas

Length of Employment (experience)

Cleaning/maintenance

5 or more years

(Financial) Administration

10 or more years

Human Resource Management

2 years

Public relations

18 years

Executive Management

1 to 10 years

Security

5 or more years

Social welfare / vocational counseling

1 to 5 years

Financial control

1or more years

Sector coordination

13 and 20 years

Table : View of functions / positions and length of employment

The organization is governed /supervised by a board of administration that has the following constellation:

4 members designated by the government

4 members designated by the private sector

4 members designated by union organizations

2 members designated by school boards.

3.4 Instruments

For an effective and solid outcome to be the result of the study, a combination of the available instruments is used in order to accomplish the purpose of the research.

To that end a survey is presented to employees, managers inclusive.

The questionnaire consists of 53questions (items), distributed as follows:

Question 1: Likert scale weight 5(very dissatisfied to very satisfied),

Questions 2 through 12(43 items in total): Likert scale weight 5 ( strongly disagree to strongly agree),

Question 13: yes or no answer,

Questions 14, 17, and 25: open-ended,

Questions 15,16,18,19 and 23: interval - level.

The 53 questions (items) making up the questionnaire cover a set of variables and their related factors as listed in the table below:

Intrinsic Motivation

Extrinsic Motivation

Environment

Motivation in relation to Productivity

choices

Wages

Organization culture

Organizational citizenship behavior

Recognition

Incentives

Communication structure

Knowledge sharing behavior

Progress

Training

Working conditions

Working to a shared goal

Competence

Employee benefit plans

Leadership characteristics

Organizational commitment and knowledge management

Table : Variables and factors used in questionnaire

The questionnaire focuses on gender, age, job experience, functions, the areas in which the employee is functioning and his/her annual gross salary. The most important questions in the questionnaire are those asking the employee for his / her opinion on the research and what he/she thinks may be added to improve his/ her job satisfaction in the work place. http://www.employeesurveys.com/evalue2/eValue2.htm

For testing the nominal scales frequency tables were used whereas to verify the results of the interval scales and ratio scales the mean and Chi-square were used, respectively.

3.5 Validation and reliability

The modified questionnaire used in this study is a product of Employee surveys.com and is owned and operated by The Business Research Lab.

3.6 Representativeness

The selection of participants in this research was based on the legal status of the employees, as they are registered by the HRM department. The status of personnel in permanent service implies that the employee has a full time job with the FEFFIK organization and has been contracted to work for an unlimited period. A census strategy was to select all employees while the target remains, selecting only participants that are in permanent service, sub divided, as to gender,

into male (51 %) and female (49%) employees and, as to job type, into teaching staff (44%) and education support staff (56%).In view of the fact that the target group must reflect FEFFIK employees in permanent service only, the Chi-Square test (X2 test) had to be applied to guarantee research representativeness. The result can be viewed in the table below.

Category

X2

Employees

0,015

Female

0,035

Male

0,048

Teaching staff

 0.05

 Education support staff

 0.18

Table : Result of Chi- Square test for representativeness

X2= Chi-square test.

The required information and the method of evaluating the desired factors are dealt with as follows: questionnaires will be used as tools for data collection and the Statistical Package for the Social Sciences (SPSS) program for final determination of the factors and to change measurement indicators.

3.7 Conclusion

To realize the research on a descriptive study and a quantitative data basis, a well thought questionnaire containing open-end questions was used as the investigation method. The census strategy had been applied. Only employees that were in permanent service constituted the target group. As the group numbered 65employeesa total of 65 questionnaires were distributed among the participants of whom98.5 % responded, filling the questionnaires. The respondents were made of male (51%) and female (49 %) employees. For the sake of representativeness the Chi- square test was applied, the result being smaller than 0.05 (X2<0.05).

Taking into account that 98.5% of the target group (FEFFIK employees in permanent service) participated in the survey, the outcome of the investigation is convincingly representative for the target group because the chi-square test was< 0, 05.The questionnaire totals 53 questions (items) divided into variables and their related factors.

In order to meet the purpose and arrive at a rational conclusion to solve the problem statement, a combination of statistical data interpretation, employees survey investigating motivation effects on productivity and the factors influencing their relationship, has been used. The statistical data were obtained from FEFFIK's HRM department.

To provide the study with additional depth, the survey questions included nominal, ordinal, ratio and interval scales.

In the following chapter the results of the several tests are presented and analyzed.

4. General analysis of motivation effects on productivity

4.1 Introduction

This chapter analyzes data collected, using the Social Package for Statistical Social Sciences (SPSS) with a view to determine the motivation level of FEFFIK employees. Furthermore, it establishes the factors that affect motivation in the workplace and also exposes the relationship between the variables motivation, productivity, environment and the factors that influence them respectively. The conclusion of this chapter highlights the variables that are useful for the process of enhancing employee motivation in order to improve employee productivity within the FEFFIK organization.

4.2 Effects on employees motivation

In order to evaluate the effects of the intrinsic, extrinsic motivation and working environment on employee's motivation as a consequence of improving or declining, the research will first outline the improving / declining in the employee's motivation. After that the consequences of those changes in employee's motivation will be translated to consequences on the productivity of the organization. The researcher clarifies this approach in the following manner:

Intrinsic motivation

Extrinsic motivation

Environment

Employee motivation

Employee productivity

Figure Relation between intrinsic, extrinsic, environment and employee motivation

4.3 Respondents' Profile

With regard to general information, the respondents were asked information about their departments, functions, gender, age, and level of income. The figure below shows the result with regard to gender; 45.5% of the respondents were male and 47.0% female employees.

Figure : View of respondents, percentage of female and male employees

Age Group relations

Figure : Illustration of age groupsThe figure below illustrates that the majority of the total respondents were in the age group of 44-54 (46%) and 55 and older(23.3%).These two age groups totaled

69.3 % of all respondents.

Relation

Gender age group

The next figure illustrates the relation between gender and age groups. It reveals that the statistics related to the group 44-55 and the group 55 and older are 58% (male employees) and 21%(female employees), respectively. These two groups total 79% of the respondents.

Figure : Relation between gender and age groups

Relation age group and function

The next figure is the illustration of respondents' age groups in relation tothe main categories in the organization, teaching staff and education support staff.

Figure : Percentage of age groups in relation to function

This information reveals that both teaching personnel and education support personnel are constituted by employees that have a lot of experience. Making the proper decisions and adopting efficient management strategy, it is up to FEFFIK to have the job experience manifested by its employees translated into competitive advantage.

4.4 Intrinsic motivation relation with employee motivation

In the next table the "Pearson Correlation Coefficient" between the variables employee choices, meaningfulness, progress and competence in relation with employee attitude, behavior, responsibility and competence is found.

Attitude

Behavior

Responsibility

Commitment

Choices,

r2 = 0,248

sig 0.048

Correlation is significant at the level 0.05

r2 = 0.383

sig 0.002

Correlation is significant at the level 0.01

r2 =0.340

sig 0.006

Correlation is significant at the level 0.01

r2 = -0.017

sig 0.895

Correlation is significant at the level 0.01

Meaningfulness

r2 = 0.229

sig 0.016

Correlation is significant at the level 0.05

r2 = 0.374

sig 0.02

Correlation is significant at the level 0.01

r2 =0.404

sig 0.001

Correlation is significant at the level 0.01

r2 = 0.086

sig 0.505

Progress

r2 =0.396

sig 0.001

Correlation is significant at the level 0.01

r2 =0.319

sig 0.10

Correlation is significant at the level 0.05

r2 =0.221

sig 0.081

Correlation is significant at the level 0.05

r2 =0.046

sig 0.722

Correlation is significant at the level 0.01

Competence

r2 = -0.336

sig 0.007

Correlation is significant at the level 0.01

r2 =0.494

sig 0.00

Correlation is significant at the level 0.01

r2 =0.409

sig 0.001

Correlation is significant at the level 0.01

r2 = -0.54

sig 0.674

Correlation is significant at the level 0.01

Table : Intrinsic motivation relation with employees' motivation

Choices and Attitude:

We reject the H0 of no relationship. This means that there is a positive low relation, and is significant at level 0.05.

Choices and Behavior:

We reject the H0 of no relationship. This means that there is a positive moderate relation, and is significant at level 0.01.

Choices and Responsibility:

We reject the H0 of no relationship. This means that there is a positive moderate relation, and is significant at level 0.006.

Choices and Commitment:

We fail to reject the H0 of no relationship. This means that there is a negative relation, and is significant at level 0.895.

Meaningfulness and Attitude:

We reject the H0 of no relationship. This means that there is a positive moderate relation, and is significant at level 0.05.

Meaningfulness and Behavior:

We reject the H0 of no relationship. This means that there is a positive moderate to strong relation, and is significant at level 0.01.

Meaningfulness and Responsibility:

We reject the H0 of no relationship. This means that there is a positive moderate to strong relation, and is significant at level 0.01.

Meaningfulness and Commitment:

We fail to reject the H0 of no relationship. This means that there is a negative relation, and is significant at level 0.505.

Progress and Attitude:

We reject the H0 of no relationship. This means that there is a positive moderate to strong relation, and is significant at level 0.001.

Progress and Responsibility:

We reject the H0 of no relationship. This means that there is a positive moderate to strong relation, and is significant at level 0.10.

Progress and Commitment

We fail to reject the H0 of no relationship. This means that there is a very low positive relation, and is significant at level 0.895.

In the next figure specific information showing that results with a very low percentage towards motivation. These results represent 66 % of respondents experience low motivation towards the variables choice, meaningfulness, progress and competence.

Figure : Relation variables intrinsic and employee's motivation in the work place

4.5Extrinsic motivation relation with employee motivation

In order to realize the validity of variables is imperative that the researcher analyzes the correlation of the dependent variables and the independent. In these paragraph the analyses of correlations between variables extrinsic motivation (wages, incentives, training and employee benefits) and employees' motivation (attitude, behavior, commitment and responsibility).

Wages

Incentives

Training

Employee benefits

Employee's motivation

Attitude

Behavior

Commitment

Responsibility

Figure : Variables used to measure employees motivation

Table : View of correlation between wages and employees motivation

Attitude

Behavior

Responsibility

Commitment

Wages

r2 = 0,194

sig = 0.124 > 0.05

Correlation is significant at the level 0.01

N= 64

Fail to reject H0

r2 = 0,337

sig = 0.006 < 0.05

Correlation is significant at the level 0.01

N= 64

Reject H0

r2 = 0,335

sig = 0.07 > 0.05

Correlation is significant at the level 0.01

N= 64

Fail to reject H0

r2 = 0,108

sig 0.400

N= 64

Fail to reject H0

In the next table a view of the "Correlation Coefficient "between wages versus attitude, behavior, commitment and responsibility.

Attitude

Behavior

Responsibility

Commitment

Incentives

r2 = 0,160

sig = 0.207 > 005

Correlation is significant at the level 0.05

N= 64

Fail to reject H0

r2 = 0,375

sig 0.002

Correlation is significant at the level 0.01

N= 64

Reject H0

r2 = 0,044

sig = 0.734> 0.05

N= 63

Fail to reject H0

r2 = 0,068

sig = 0.595> 0.05

N= 63

Fail to reject H0

In the next table a view of the "Correlation Coefficient" of incentives with attitude, behavior, commitment and responsibility.

Table : correlation between incentives and employees motivationIn the next table a view of the "Correlation Coefficient "of training with attitude, behavior, commitment and responsibility.

Attitude

Behavior

Responsibility

Commitment

Training

r2 = 0,137

sig 0.279

N= 64

Fail to reject H0

r2 = 0,212

sig 0.093

N= 64

Fail to reject H0

r2 = 0,371

sig 0.003

Correlation is significant at the level 0.01

N= 63

Reject H0

r2 = - 0,022

sig 0.867

N= 63

Fail to reject H0

Table : Correlation between training and employees motivation

In the next table a view of "Correlation Coefficient "of employee's benefits with attitude, behavior, responsibility and commitment

Attitude

Behavior

Responsibility

Commitment

Benefits

r2 = 0,097

sig 0.443

N= 64

Fail to reject H0

r2 = 0,236

sig 0.060

N= 64

Fail to reject H0

r2 = 0,072

sig 0.575

N= 63

Fail to reject H0

r2 = 0,061

sig 0.635

N= 63

Fail to reject H0

Table : Correlation between employees benefits plans and employees motivation

4.6 Environment relation with employees motivation

In the figure below the relation between environment and the employees motivation variables

Leadership characteristics

Organization culture

Communication structure

Working conditions

Employee's motivation

Attitude

Behavior

Commitment

Responsibility

Figure : Relation between environment and employees motivation

Leadership characteri