The Impact Of Motivated Employees In Organisations Commerce Essay

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The aim of this research is to identify the impact of motivated employee in the progress of an organisation and to find out the level of motivation required among the employee of a banking sector. The study concerns with study of particularly 3 bank namely HSBC, Santander, and ICICI bank.

There is lot more has been written and studied in relation to motivation, to motivate the employee, to motivate the firm itself particularly in period of recession. According to many studied it has been suggested that money alone is not work as motivating factor among employees, and behaviour of them is related with their attitude towards a firm.(Dickson' 1973). In conflicting with that, a study conducted by James R. Linder (a research and extension associate at Ohio state university, 1998) revealed that Money and interesting work are the key factors in employee motivation. According to a journal ( "[email protected]"&HYPERLINK "[email protected]"hid=14HYPERLINK "[email protected]"&HYPERLINK "[email protected]"[email protected] ) where it is found out from the research that the employee motivation is also related to firms' productivity and employees' performance. There are lot of evidence and research that already conducted which proves motivation is related with employee performance, company's growth that I will explain in detail as I proceed to dissertation.

The motivated employees can work a lot more effectively and efficiently than non- motivated employee for the firm. The main concern of any organisation is to make more profit with least waste and more production capacity. The task is mainly concern with the managers of the firm to carry out research to find out the weakness of the firm, problem of employees relating to their work at organisation. In current situation of recession there are many sectors that are struggling to retain the market and the most affected one is banking sector. The employee of the bank feels in secured as the current situation causes incidences like bankruptcy. The popular example of this is temporary and permanent closing down of bank many American bank like Bank of America. (


Strategies of the mentioned firm to motivate their employees, how effective those strategies in line of increase production by mean increase business of those banks.

What is the need of employee motivation in a firm? What is the difference between earlier method of motivation and current methods?

The status of these banks in this recession market and how they differ in their service and staff motivation to their rivals.

Literature Review.

The literature review of this research is divided in to the primary data and secondary data. The secondary data is reviewed from the books, journals, magazine, net resources. The primary data will be collected from the interview of the person at the managerial position of the stated banks. The data will also be collected by receiving the answer of pre-given questionnaire. "[email protected]"&HYPERLINK "[email protected]"hid=119HYPERLINK "[email protected]"&HYPERLINK "[email protected]"[email protected] ""&HYPERLINK ""db=buhHYPERLINK ""&HYPERLINK ""AN=43808273HYPERLINK ""&HYPERLINK ""site=ehost-live

Bruno S. Frey, Margit Osterloh 2002, Management by motivation, Springer publication, Germany, pg.7-10.

The motivation can be described as, "a person's active participation in and commitment to achieving the prescribed results".

The motivation is defined by Robbins in 2006 as " th willingness to exert high levels of effort towards organisational goals".

There are many motivation theories that stated the importance of motivation of the employees. There are mainly two types of motivation namely extrinsic and intrinsic motivation. The extrinsic motivation is one where the employees are motivated by money and many companies have adopted a mantra called performance related pay which shows firms believe that employees get motivated by money as money fulfils all individual needs related to material things. The intrinsic motivation is one where the employees are motivated by their strong moral value, work. If any organisation wishes to be successful it must have employees that are self motivated, who enjoy their work, who have feeling that this is our organisation and I am a part of this corporate family. The strong motive towards work makes it interesting to do and this lead to completion of the task/job perfectly and employees will have a job-satisfaction. The intrinsic motivation is derived from a) work itself b) willingness to complete the goal c) enjoyable work d) at the end when goal is achieved. According to one research it is seen that in company where, that procedural fairness is not maintained which is related to team-spirit, the productivity of that firm falls and eventually it lead to failure of the firm. So, the motivation is a key factor in the management of the firms' human resource.

There are many theories in relation to motivation which describes the role of motivation in persons' life. They are as follows:



Abraham Maslow's hierarchy of needs theory: this theory is described by Maslow a psychologist in his book named motivation and personality in the year 1954 and it is till continue to be followed by many institutions and businessman though there are some changes done in the year 1970 and 1998. It is clearly stated in that theory that there are five different stage of human needs and these are to be fulfilled one by one infect the next need arises after first one is fulfilled. They are,

Psychological needs: these are described as the basic need of human being. They consist of food, water, shelter, sleep, medicine, education. According to Maslow, until these basic needs are satisfied no other motivating factor can work. In a business sense it means to pay salaries to employees to buy their basic needs which gives psychological motive.

Safety needs: it refers to an environment which is safe to live and provide services like medical insurance, financial reserve. In a business sense it means to give job-security and safe working environment to the employees.

Social needs: it also called as belonging and love needs by mean having friendship, sense of belonging to a group, giving and receiving love etc. In a business sense it mean to generate feeling of acceptance, belonging to team and firm's family.

Esteem needs: it refers to personal achievement, reputation, status that gives a sense of having value in the society and same in an organisation where he/she get a feeling of having value in the company, respect from the company and not just merely treated as company's workforce. For instance: the recognition, attention, social status work as external motivator while the feeling of Accomplishment and self-respect work as internal motivator.

Self-Actualization: it means having self-motivators like truth, justice, wisdom, meaning etc. this is described as the summit of Maslow's theory. It refers to a person having unquenchable thirst for personal goals. In business sense, it means to give challenging roles which promote creativity, innovation, helps to fulfil the long term goals along with employee's personal growth.

Alderfer's ERG theory: This Alderfer's theory is different from the maslow in three aspects as it also describes human needs. These aspects are there are five steps in maslow theory and they are quite like progression but in this theory there is only 3 steps. Alderfer believes that there may be involvement of two kind of need at the same time and person can continue to grow even when the first stage need remains unsatisfied.

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David C.McCelland's Needs Theory of motivation: McClelland has done lot of research on achievement motive. He has divided the needs of human being in three parts called need for power, need for affiliation, and need for achievement. The people has got special characteristics like moderate risks, immediate feedback, indifference to reward and task orientation whosoever want to have highest achievement quest. so, McCelland emphasis more on satisfaction of personal achievement quest.

The theory popularly known as Theory X & Y given by Douglas McGregor. In this theory two separate kind of individuals are assumed like X & Y. The X person is lazy, have no ambition, hates work, have no initiative to take responsibilities, wanting security and willing to do what they want and they expect that they must be rewarded. If this type of people are there in the firm then manager has to police his/her staff constantly, make people to work and cooperate. These kind of people very bad environment or non-creative environment to work. The Y person is one who is willing to work, to learn new things, have got self-discipline and self-development. They want to do difficult task, challenging work and they do not want to be rewarded by money. So the managerial duty is to convert persons' self-development in to organisations need for the maximum productivity. This people requires motivation to work when they feel depress about the completion of the goal.

There are many research has been done on motivation to understand the human psychology and to retain the employee for a long time for a firm. The motivated employee has got direct relation with the production capacity of the firm. It is supported by many on line survey one of which is as follows. According to one online survey conducted by a human resources consultancy named chiumento about happiness at work suggest that people with good working relationship, friends at work, and who can describes himself as happy are more productive and generate more revenue for the business. The difficulty for many businesses is to make their employee happy by rewarding and motivate them in a proper way. The study has undertaken the consideration of 10 factors for happiness and unhappiness. The happiness factors which are taken in the research are ,friendly, supportive colleagues, enjoyable work, good boss or line ,manager, good work/life balance, varied work, belief that what we are doing something worthwhile, feeling that what we do makes a difference, being part of a successful team, recognition for our achievements, competitive salary. The factors for unhappiness at work are lack of communication from the top, uncompetitive salary, no recognition for achievements, poor boss/line manager, little personal development, ideas being ignored, lack of opportunity for good performers, lack of benefits, work not enjoyable, not feeling that what I do make a difference. They have found out that poor communication is major factor for unhappiness, senior managers are more happier than shop floor worker, woman have got more job satisfaction than man, part time workers are more happier than full-time worker, workers aged 55 and more are the happiest group of worker.

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In today world, as described by Timm, Jordan in his book, the motivation of the employee is considerably different as the jobs are outsourcing form the developed world to developing world like India, china. The jobs are becoming more interesting and challenging than previous years.



There are ten simple steps to be followed by a leader or employer to motivate employees. The steps are as follows: 1) use simple and powerful words for motivation 2) make sure employee should know what you expect 3) regular feedback for employee motivation 4) employee need positive and not so positive consequences 5) discipline not magic 6) continue learning and trying new ideas for employee motivation 7) make time for people for employee motivation 8) share the goals and the context, make communication for employee motivation 9) best attitude towards work and employee 10) focus on development of people for employee motivation. The popular theory of Taylor named scientific management also describes that the main motive for the employee is money nothing else but now a days this theory proves no longer as effective as in previous years.

The banks are implementing new innovative ideas to motivate their employee. This is to be supported by a case study of RBS(ROYAL BANK OF SCOTLAND). The royal bank of Scotland is one of the popular banks in UK. They have separate kind of reward-system which is very flexible for employee. As there are two kind of staffs in any bank by mean newly graduated and joined, and the experienced one in the same sector. The newly recruited staffs are fresher and they have got separate kind of their needs, for these persons their education-spent burden of money is more important rather than retirement plan. so, these persons have separate plan than the older staff. There are many other features which makes RBS different from their competitors and motivate their employee to become a family member of RBS, are, flexible pension funding, health and medical benefits, a confidential advice service, flexible working hours as per choice of a employee with desired security as well, holiday allowance for full time staff is about 25 to 30 days with an option of buying or even selling days, and many life-style benefits like discounted vouchers, child care facilities and RBS financial products such as mortgages, currency exchange, personal loans and banking at special staff discounted rates.

Now, the financial incentive alone is not sufficient as every bank is giving but this RBS also giving non-financial rewards like to motivate their staff to develop their skills and ability by mean RBS is not only focusing on its own profits they are taking career prospective approach towards employee.

I will explain in detail about the different ways which are adopted by different banks and how these named HSBC, Santander, and ICICI are differ from other in dissertation.


The qualitative approach will be taken to collect the primary data partly supported by prepared questionnaire where ever the interviewing of the related person is not permitted by that person and time as well.