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Motivation leads to the performance, author define from different books and theories the performance management also how motivation enhance the not only employee performance but also overall performance. To manage and organize people and management in an effective manner in an organization is the role of Human resource management. Human resource management is another name for balancing the human needs and meeting the strategic and financial needs of an organization. Meeting human needs is an important factor in every organization, if employee needs satisfy that gives the boost in performance. Motivation is factor uses in organization get the things done in a proper manner by utilizing the skills of employees. Effective managers motivate employees through defining company's goal in manner that will lead to a better performance. (Armstrong M. , 2006).
According to (Guest, 2000) , to generate positive impact of human resource by (i) enhance core competency of employees (ii) by motivation and commitment, and (iii) by designing work to encourage the fullest contribution from employees.).(Vroom, 1964); (Lawler, 1971), gives a model which clearly shows that the elements for producing best outcome would be positive employee behaviour' s low absence, quite rates, and high quality and productivity. (Armstrong, 2006). Getting a people and perused them to make things happen in a way that produce productive results so that the business prospers and people survive. As Human resource management gives a strong balance between the Human needs and the meeting the strategic and financial needs of the organization. The question arise at this point what measures should company use to power the human recourse output as workers are now considered as a vital resource needs a greater attention and development rather than a liability.
The role of Human resource management is to manage and organize the people and management in the organization. It involves human resource planning, talent management, knowledge management, recruiting and selection, awarding, managing performance appraisals, health and safety, employee relations, HR management issues, diversity issues, HR administration, and any other issue related to the employee relation. (Armstrong M. , 2006) .The aim of HRM is to recruit best employees through the process of interview, screening and selecting the suitable candidate. It is now become a difficult task as earlier it was done on the suggestion of employee working currently. (Sims, 2007). Recruiting the qualified candidates for the organization is now a big task for HRM, whom to select and who to reject on non-dicremantory basis as it depend upon the future of organization performance. The management of HRM not only develops the training process but also carries management process for the organization. HRM also responsible for the directing and guiding the employees and ensures that the task related to that person must be accomplished on time in an effective manner. (Reena Ali & Milligan, 1996). Also, HRM is also responsible for compensation plans, which includes wages and salaries. Bonus and increments will be accomplished on the performance of employees, which has been evaluated from the performance of employees .The HR functions play an important role in any organization for creating an environment for the employees, where people can cater their best capabilities and utilities their capabilities that are useful for the organization and themselves. (Armstrong M. , 2006). It also provides advice and services to the organization so that management get things done from the employees. The HR of MNC's plays a vital role as the best policies and practises of HR involves in it, which gives the strong relationship between the management and workforce.
According to Laurie motivation is 'the degree to which an individual wants and chooses to engage in certain specified behaviours. (Laurie, 2005). Motivations define as the degree of an individual driving force within him/her to engage in certain behaviour which fulfils person's need and desires.
Performance= functions (ability x motivation)
According to (Kreitner) although motivation is a necessary contributor for job performance but it is not the only one. Along with ability, motivation is also a combination of level skill; knowledge about how to complete the task; feelings and emotions; and facilitating and inhibiting conditions not under the individual's control (Laurie, 2005). The above equation shows that manager should motivates the employees directs their efforts towards attain the goals and objective of the organization. Motivating others is the way to the person you want to directs them to achieve a goal. On the other hand, motivating yourself is to keep going on the direction sets by you to ensure that goal will be achieved. (Laurie, 2005). According to Lincoln, Motivation is an internal driving force which could be conscious or subconscious need, which gives behaviour a direction toward a particular goal. It may also define; motivation is a personal trait in which willingness to put high effort on the assign task in order to achieve organizational goals to satisfy individual needs. (Biswatjeet, 2005).
In every organization employee's motivates through number of factors that leads them to perform the better job. People have different needs in order to satisfy their needs they established different goals. If the employees personal needs and desire linked with organization goals that gives the ease to motivate them better. In order to satisfy their needs different approaches are used. That's why it's not easy to fit motivation into one approach. Motivation can be categories in two types; first people can motivate themselves by finding work that satisfies their needs. Secondly people can be motivated by management through rewards, and incentives on get the job done. It is refers a psychological rewards determined by the actions and behaviour of individual managers. (Laurie, 2005). Also it is self generated factor where people move in a particular direction which include responsibility, act of freedom, scope to use of skill, abilities, and challenging work and opportunities. (Armstrong M. , 2006) (John, 2009). Intrinsic motivations are intangible rewards that come from inside, a feeling of pride and excitement of performing a task that satisfy their personal needs and growth. Intrinsic rewards are also called non financial rewards .i.e. Job satisfaction, delegation, employee empowerment etc. This Type of reward is more useful to motivate organization employees than financial rewards. (Biswatjeet, 2005)
It is done people to motivate them such as praise, salary, and promotions. (Armstrong M. , 2006). It is refer to be tangible rewards, such as salary and benefits, promotion, security. These rewards determined by the organizational level rather than individual managers. (Laurie, 2005). As these rewards are short term to satisfy the company's needs. Extrinsic rewards also refer as financial rewards, .i.e. salary, bonus, promotions comes in it. These rewards are useful when organization has stability in an environment, (Hamidi, 2010) (Biswatjeet, 2005). Motivating employees on the basis performance measures cannot place as an effective tool. Motivational tools should adopt to indicate the effectiveness of employees. Organization should keep eye on the motivational tools as it will be change some span of time. Intrinsic tool is the basic in the beginning but after some time organization should change the strategy by giving them extrinsic tool to motivate the employees. The foundation of motivating the employees laid on the extrinsic and intrinsic motivation. To evaluate what measure should we use to enhance the intrinsic motivation in employees of Multinational Corporation also the comparison of both i.e. intrinsic and extrinsic how both motivation sources enhance to get the higher performance from the employees in order to gain the competitive advantage.
Today the management in many organizations have accepted the models of motivation. Therefore managers are now drawn conclusions in different work situation on the basis of these different models or theories of motivation. (Laurie, 2005). Maslow's theory which defines the human needs and desire has to fulfil for the level of satisfaction, Motivation also leads to satisfy the needs. The Maslow's Hierarchy consist of a five block human need pyramid, includes psychological needs, social needs, safety needs, esteem needs and self actualization need. Maslow describe the needs of human into two levels, lower level and higher level, once the lower need level which are external .i.e. wages of human achieved than it motivate to achieve the higher need level that are internal .i.e. personal satisfaction. (Biswatjeet, 2005). Maslow starts with lower to top Psychological needs; it is a basic and most important human need comes at the lowest level, which has to satisfy. This includes pay, condition at work and benefits. Once these needs satisfy human behaviour move to other need level which is Safety needs, an important need after psychological need which includes, pensions, medical compensation, job stability and organization stability, these satisfy the employees safety needs. Furthermore, Social needs in a hierarchy includes, interaction with others, love, affection, and friendship. Manger ensures that these needs of employees satisfied by encourage them working in a team. Moreover the second last need is Esteem need, includes recognition with peers or colleagues, success and appreciation. The highest level of need in the hierarchy is Self-actualization need, which is the most complex need to be satisfied as it is a personal growth and fulfilment. Managers at higher level have challenging job opportunities it's easy for them to satisfy the higher level of needs i.e. esteem needs and self-actualization needs rather than lower needs. (Hellriegel, 2007). Managers must ensure to satisfy one need of an employee does not motivate them. It is essential to keep in mind the frustration dimension, once it will recognize managers easily develop strategies that overcome the frustrated need for the growth. (Ahmed & Gilkar, 2008).
Herzberg motivation theory also known as two factor theory based on motivational factor and hygiene factor. The theory has a notion that satisfaction factors are opposite to dissatisfaction factors. This theory varies person to person as every person have different needs. If employee intrinsic level meets to the satisfaction result the higher motivation. (Kondalkar, 2000). Hygiene factor prevents dissatisfaction while the motivation and growth factor creates job satisfaction that motivate employee to do effort for the better performance. (Laurie, 2005). Motivator factor are the instruct factor within the person, that gives the chance to carry responsibility of a task, interest, and achievement in a way that lead to a higher growth shows in figure 1.4 whereas hygiene factors leads to dissatisfaction, if a person at low pay scale in an organization results the dissatisfaction also some other factors influence dissatisfaction are, status, job position, job compatibility and condition on work. (Saiyadain, 2009). According to Herzberg, the elimination of dissatisfaction factor may effect on job satisfaction that give peace but not merely effect on motivation. He termed the motivation factors that create job satisfaction. Also he suggest that job enrichment, includes task identity, task fulfilling, feedback and autonomy. Increase in these skills may prevent the motivation. (Biswatjeet, 2005). Job enrichment involves a self management to the person, planning and controlling in supervision gives employee to motivate. (John). It is necessary to motivate the employees, managers ensure to motivate the employees they must look upon the hygiene factors before motivators, as the dissatisfied employee cannot be motivate. Managers ensure for high motivation there has to be a good link between the needs of the person and talent to perform a task.
The expected level of effort and the performance will leads to expected outcomes that how a person achieve an expected rewards. (Laurie, 2005).Performance is based on the perceived expectations of a person that motivates them to do achieve their goals. For example the desire for promotion will motivate a person to do better job, this will affect its performance and result he will got promotion. The theory suggested by Vroom's gives the wide explanation on the motivation. Based on the variables, Valence, instrumentality and expectancy. The idea of the theory is people have certain attractiveness of the outcome (result) to achieve accordingly. Vroom's theory suggests the idea that Valence is strength or behaviour of a person to achieve an outcome it may be negative or positive. Expectancy is a probability or a force to that leads a way to achieve outcome. (Coetsee, 2003). Motivation is a cognitive process of a person that leads behaviour of a person to achieve perceived rewards. (Spector, 2000). An employee will be motivated when they believe that their effort will lead them to desire outcome. Performance will be affected when the employees do not believe that their effort will lead them to a desire result. The identification to the objective of management by differentiate the link between goals of an organization and the effort employee put in to achieve the goals that gives high performance and lead them to rewards. Also clarify the difference between the organization and employee motivation. (Bose, 2004).
On the research of different theories, identifies several factors that are important to motivate employees in a work environment. There are number of factors which can influence on the performance and motivation of employees like sexual harassment, racism on the basis of ethnic groups and controversial performance appraisals. Most of these issues are created by the mismanagement of human resources. It is better idea that performance of employees is measured by the technology or by the independent parties. These factors not only motivates employee but also has an impact on organization n term of performance and capital. Objective to identify these factors is to measure the importance and evaluate the motivation level in MNC's employees. Given below the factors through which the action will take to evaluate the tools of motivation in an MNC's and also to evaluate the performance accordingly.
Performance management is an organization essential tool which improves the employee motivation and leads them to high performance. (Cokins, 2009)
According to Mebay and Salaman (1995) essence of performance management is the framework that established by an organization in order to direct, monitor, motivated and rewarded employee performance. (Armstrong M. , 2006).
According to Aguinis (2009) a process of identifying, measure, develop and align the performance in order to achieve the organization goal. (James, 2009)
Performance management helps employees within and for the organization. Manger ensures that the effective performance measures will have a greater impact on an effective performance. Performance management is a connection between employees and organization that give chance to employees to enhance their performance in order to satisfy organization goal. (Charles, 2000).
Rather to keep eye on the decision given to the employee, Performance management gives freedom, allows managers to give the responsibilities to the employee to manage their own performance. It also helps employees to do continuous improvement for the betterment of their performance. Activity based management gives the clear understanding of in going process in the organization which gives the idea to generate activity in each hierarchy on the other hand Balance score card involves the performance measures use to measure the performance from top to bottom which includes customers services, process going internally, innovation and learning.
According to Armstrong and Baron Performance management is a strategic and integrated approach to deliver sustained success of organizations by improving the performance of people who work in them and developing the capabilities of teams and individual contributions. Performance management incorporates the review of past performance and the setting of objectives for the future. (McKenna & Beech).
The organization reward system defines as the policies, practises and procedure for rewarding its employees on the contribution of their skills and performance. Reward systems are built on the framework of organization philosophies, policies, and procedures providing and maintain the basic level of rewards i.e. pay benefits and other form of rewards to the employees. (Armstrong, 2002)
Reward system is very essential for high level performance. Consider to be a most important motivation factor that will enhance the motivation, job enlargement, positive behaviour towards job, and commitment. Managers must ensure that maintains the balance between the employees pay, benefits and other external rewards gives the performance level boost also achievement of organization goals. (Armstrong, 2007)
Managing employee motivation in the organization by reward system considers being the main important tool for organization through which employee performance define, evaluate and rewarded. Also it gives a great impact on enhancing actual performance and motivation (Ricky, 2011). Managers are always value their customers by encouraging them to perform better. As this learning beneficial for both employees and organization. It is important for every manager to promote the intrinsic need of employees by encouraging them to learn from different sources. They mainly emphasize the goals learning as well as the working on as team .i.e. team learning. Emphazing on learning gives command of what have to in the particular task. It is Manager duty to give understanding employee to take opportunities from the knowledge then they learn. By giving in house communication opportunities so those employees communicate freely with each other to build a strong relationship with one another.
Companies use reward systems by providing them a quick booster to complete a task or project. Immediate financial incentives are performance based bonuses that is set according to the budget of the company. Also cash incentives used as a reward in many companies which gives employee increment. (Ulrich, 1990)
(R.Brayton, 2000)Extrinsic reward are essential for business to motivate the employee but it is taken as motivation tool eventually, the results organization creates the best understanding in term of pay base, bonuses, incentives etc. According to Herzberg and Kohn, motivation is a driven force that motivates and encourage the individual to construct a empower relationship with work. It gives an employee a scene of pride and achievement. Giving authority and direct feedback expand the scope of individuals. Not only salaries and bonuses can increase the extrinsic need, to expand the need through feedback and recongnition enhance the satisfaction in work.
Herzberg says in this theory, it is not managers who motivate employees by giving them salary, bonuses and other incentives. Employees are motivated by own personal interest that develop after achieving challenging task. In every organization to get the task done in a proper way and has to be achieved in future depends upon the managers as they motivate the employees to provide opportunities and enhance their capabilities to get the job done. (Marchington & Wilkinson, 2005)
(R.Brayton). In every organization intrinsic rewards approaches are based on employee perspective and value perspective. Managers ensures that the un liking factor of intrinsic need from extrinsic form of incentives. Knowledge is very important for every employee; with respect to learning knowledge gives an individual a satisfaction to mastering learning. Managers ensure that intrinsic factor does not neglect in learning as negligence unlock the motivation. Moreover once the employee understands the intrinsic knowledge and skills are developing, they motivate easily. For example every manager motivates the intrinsic value that would be the training to employee in an organization that leads to extrinsic need express in the form of financial recognition. It is important to develop the intrinsic need that motivates the intrinsicity of employees at work.
High level of motivation could be accomplished in many organizations by providing non financial rewards. Non financial rewards refer as an opportunity, learning and development of an employee. Also a personal management skill plays an essential role in maintains their motivation skills towards best performance. (Michael, 2008).