LITERATURE REVIEW

“Motivation as a tool for increasing the productivity

of employees in an Organization”

Submitted to:
Dr. Priya Dwivedi

Submitted by:
Anushi Mishra
PGDM (Marketing & HR)
(Examination Id: 20062)
 Title: Motivation as a tool for Increasing the Productivity of Employees in an
Organization.

1. M.A. Bawa (2019) (Article: Employee motivation and productivity: a review of

literature and implications for management practice)
A substantial body of theory and empirical evidence exists to attest to the fact that
motivation and productivity are concepts which have been subjects of immense interest
among researchers and managers. The objective of this paper is to conduct a literature
review and analysis on theories and empirical evidence on the relationship between
employee motivation and organizational productivity with a view to drawing important
lessons for managerial practice. To achieve this, the paper conducted a review of some of
the key theories and empirical studies on motivation and its impact on employee
productivity drawing experiences from diverse organizational settings in Nigeria and
several other countries. The study revealed that there are different factors to consider in
motivating employees: some monetary or financial such as pay and others are non-
financial like recognition and challenging jobs. Important implications are presented for
managerial practice.

2. Annu Tomar and Sanjeev Sharma (2013) (Article: Motivation as a tool for effective
staff productivity in the Public & Private Organization)
This paper aims to find out the relationship between motivation and productivity in an
organization. The paper studies the theory presented by the researchers in the field of
motivation and productivity. Our finding suggests that positive relationship occurs
between motivation and higher productivity. However, the data and research is usually
based on secondary source of data. The paper recommends that for creating good job
opportunities, job redesign and congenial atmosphere along with financial rewards
enhance productivity. Therefore, the null hypothesis (H0) is accepted and alternative
hypothesis (Ha) is rejected.

The study concluded that few current studies related to motivation and productivity is
mentioned here. Uwe and Hartwig (2000) have examined the effects of a psychologically
based management system on work motivation and productivity. It is concluded that PPM
(Participative Productivity Management) helps to increase productivity mainly by increasing
task and goal clarity, and that increases in productivity can only be reached reliably when no
competing system of performance appraisal exists besides PPM. Wright (2002) has examined
the role of work context in work motivation. Miao and Evans (2007) studied the impact of
sales person motivation on role perceptions and job performance. Empirical results from a
survey of sales people indicate that, compared to the global motivation constructs, the
cognitive and affective representation of I/E (intrinsic and extrinsic) motivation provides a
more robust description of the salesperson motivation. From this study, it is obvious that most
workers in the industry are not satisfied and motivated in their jobs, especially those in the
junior cadre. Significant relationship was found between motivation and job commitment on
one hand, and satisfaction with job and job commitment on the other hand. It is found that
individuals are motivated to perform well when the work is meaningful and individuals
believe they have responsibility for the outcomes of their assigned tasks. Finally, through this
study we find there is a positive relationship between motivation and productivity of
employees.

Certain recommendations under the study include: Pay-for-performance incentives are often
utilized in the private sector to encourage competition among and within team, but such a
model may not be directly applicable to the public sector, as resources are often tighter, and
money may not be the primary source of motivation for those with an ethos of public service.
Research suggests that individuals are motivated to perform well when the work is
meaningful and individuals believe they have responsibility for the outcomes of their
assigned tasks.

Following recommendation is offered:

 Promote Challenges and Accomplishments: Specific and challenging goals can lead to
higher levels of performance, productivity, and creativity which in turn is linked with an
overall stronger commitment to the organization (Perry, Mesch, & Paarlberg, 2006). We
propose developing challenging goals and timelines together with employees. By setting
goals, employees obtain a clear strategy for their own professional development, which
creates greater satisfaction and motivation (Ambrose & Kulik, 1999). Accomplishing
goals that challenge employee creativity and problem-solving skills can improve
performance, enhance employee self- confidence, and improve job satisfaction which can
outweigh a one-time monetary award (Perry, Mesch, & Paarlberg, 2006). Goal setting
should be followed by regular and thorough feedback given by supervisors on employee’s
goal achievements.
 Create Organizational Learning Opportunities: Goal setting should be challenging
and achievable, goals can also promote learning opportunities. Organizations can
integrate learning opportunities through setting goals that allow employees to engage in
problem- solving and knowledge acquisition.
 Utilize Group Incentives as Well as Individual Incentives: Organizational learning and
employee’s personal growth are impacted by the incentives offered in the work
environment. It is recommended to implement a variety of awards such as team awards,
individual recognition based on extraordinary performance, and rewards for all
employees for achieving their goals. In order to strengthen teamwork, appreciating
employees for performance that benefits the team is required. Awarding only a few
people with rewards might be counterproductive. According to Bob Behn, some hard
working employees might feel treated unfairly and lose their work spirit or develop
resentments to other employees and the team (Behn, 2000).
 Rethink Job Design: Incentives are just one method used to promote motivation in the
work environment, another method is job design. It is advised to implement a job design
in an organization in which employees rotate job positions, gain more responsibility over
their work and resources, and engage in trainings and organizational learning
 opportunities. Jobs designed with a sense of challenge and task significance can facilitate
a sense of meaningfulness, leading to better work performance and personal growth in the
work setting (Perry, Mesch, & Paarlberg, 2006).
 Promote a Healthy Work Environment: Organizational practices that motivate
employees and improve performance may be ineffective if little attention is paid to the
working environment. It is recommended to eliminate dissatisfactory work conditions.
There should be proper setting up of an environment in which employees feel fair
treatment and safe future. The employer can also install motivators such as
acknowledgment, responsibility, and learning opportunity to improve the employees’
performance. There are two elements crucial for motivated workers: the absence of
dissatisfaction about the work environment and salary, which creates a neutral attitude
towards work, followed by motivators to generate extrinsic and intrinsic motivation.
Contingent upon above suggestions, success requires a comprehensive strategy
implemented thoughtfully. The synergy is to be established to build a highly motivated
and empowered team of talented, top- performing professionals.

3. Aguinis et al. (2013) (Article: What monetary rewards can and cannot do: How to
show employees the money)
The study stated that monetary rewards can be a very powerful determinant of employee
motivation and achievement which, in turn, can advance to important returns in terms of
firm-level performance. Monetary rewards can be a very powerful determinant of
employee motivation and performance which, in turn, can lead to important returns in
terms of firm-level performance. However, monetary rewards do not always lead to these
desirable outcomes. We discuss in this installation of Human Performance what monetary
rewards can and cannot do, and reasons why, in terms of improving employee
performance.
Also, we offer research-based recommendations including the following five general
principles to guide the design of successful monetary reward systems:
 define and measure performance accurately,
 make rewards contingent on performance,
 reward employees in a timely manner,
 maintain justice in the reward system, and
 use monetary and nonmonetary rewards.
In addition, we offer specific research-based guidelines for implementing each of the five
principles. In short, our article summarizes research-based findings and offers
recommendations that will allow managers and other organizational decision makers to
understand when and why monetary reward systems are likely to be successful in terms of
enhancing employee motivation and performance.

4. Vuori and Okkonen (2012) (Article: Knowledge sharing motivational factors of

using an intra-organizational social media platform)
The study states that motivation helps to share knowledge through an intra-organizational
social media platform which can help the organization to reach its goals and objectives.
This paper aims to discuss the motivational factors affecting the knowledge sharing
through an intra-organizational social media platform and to answer the following
research questions: "What motivates employees to share their knowledge through an
intra-organizational social media platform?"; "What impedes them sharing knowledge
this way?"; and "Do these factors differ from those motivational factors regarding
 knowledge sharing in general?".Design/methodology/approach ‐ the paper approaches the
issue from both theoretical and empirical viewpoints. The motivational factors regarding
knowledge sharing in general are summed up from literature. The social media platform
perspective to the issue is studied by conducting a survey in two companies. Findings ‐
The results reveal that the motivation to share knowledge through an intra-organizational
social media platform is the desire to help the organization reach its goals and helping
colleagues, while financial rewards and advancing one's career were seen as least
motivating. The key issues enabling the success of using a collaborative intra-
organizational social media platform in knowledge sharing are in line with the general
knowledge sharing motivational factors, although supplemented with some additional
features: reciprocity in knowledge sharing, making every-day work easier and faster and
ease of use are the key factors that make or break the success. Originality/value ‐ the
empirical study reveals what motivates and impedes the employees of the companies to
share knowledge via an intra-organizational social media platform. The results are
discussed in the light of those from earlier research about general knowledge sharing
motivational factors.

5. Onyishi Jude Chidi (2010) (Article: The effect of motivation as a tool for increasing
employee efficiency and productivity (a study of selected banks in Nigeria) The study
states that the majority of organizations are competing to survive in this volatile and
fierce market environment. Motivation and performance of the employees are essential
tools for the success of any organization in the long run. On the one hand, measuring
performance is critical to organization’s management, as it highlights the evolution and
achievement of the organization. On the other hand, there is a positive relationship
between employee motivation and organizational effectiveness, reflected in numerous
studies. This paper aims to analyze the drivers of employee motivation to high levels of
organizational performance. The literature shows that factors such as empowerment and
recognition increase employee motivation. If the empowerment and recognition of
employees is increased, their motivation to work will also improve, as well as their
accomplishments and the organizational performance. Nevertheless, employee
dissatisfactions caused by monotonous jobs and pressure from clients, might weaken the
organizational performance. Therefore, jobs absenteeism rates may increase and
employees might leave the organization to joint competitors that offer better work
conditions and higher incentives. Not all individuals are the same, so each one should be
motivated using different strategies. For example, one employee may be motivated by
higher commission, while another might be motivated by job satisfaction or a better work
environment. The study took reference of McGregor’s Theory X and Theory Y to study
the behavior of employees and to understand the relationship between productivity and
motivation.

The research paper concludes, people seek security and the underlying needs are
fundamental to people’s existence. After these needs are satisfied, people will focus more
on job performance. People also see social systems, so the sociability aspect of effective
organizations cannot be neglected. Last but not least, personal growth is also important to
people, as self-actualization and the need for achievement and growth are vet powerful
needs that influence the development of effective organizations. Management should
evaluate employee suggestion scheme and use the feedback from the workforce to
 improve the organizational environment and fulfill their needs and skills. People are
different and they are motivated by diverse needs, such as physiological needs, safety
requirements and self-actualization needs. Thus, focusing on employees at every level of
the workforce and analyzing each department of the organization will provide detailed
accurate information regarding the needs of employees. A motivated and qualified
workforce is essential for any company that wants to increase productivity and customer
satisfaction. In this context, motivation means the willingness of an individual to do
efforts and take action towards organizational goals. The challenge for any manager is to
find the means to create and sustain employee motivation. On one hand, managers should
focus on reducing job dissatisfaction (working conditions, salary, supervision,
relationship with colleagues), while on the other hand should use motivating factors such
as achievement, recognition, responsibility and the work itself. Employee participation
and empowerment do not only enhance efficiency, growth and innovation but they also
increase employee motivation and trust in the organization. If employees feel appreciated
for their work and are involved in decision-making, their enhanced enthusiasm and
motivation will lead to better productivity and loyalty.

6. Mohammed Javed Kalburgi and Dinesh.G.P (2010) (Article: Motivation as a tool

for productivity in Public sector unit), In this research the researchers have concluded
that the success of any organization depends on its employees. If employees are taken
good care, the performance & efficiency & productivity level increase. The main
objective of this paper is to  analyze  the  motivational level of the  executives in the 
organization & elicit information  regarding the various methods used by the personal
managers to motivate the executives Primary  data as well as secondary data  provided for
the  basis of the study. Primary data was collected from the employees working in the
factory, by administering the questionnaire, while using discussion & interview method.
The major finding for the paper was that the employees were highly motivated due to
good working environment & highly supported by supervisors to perform the task. This
paper in total has six sections, including this introductory section. The review of
literature is presented in the second section and the methodology followed is given in the
third section. A brief note on motivation & tools are presented in the fourth section. The
motivational factors are discussed in fifth section and the summary of findings
and suggestions is presented in the sixth section & conclusion is presented in the last
section.

The study summarized the findings and suggested:

 Most of the employees like their organization very much.

 Employees feel that their wages & salary are quite attractive.
 They are highly committed to their work & their organization which is very
much important.
 Most of the employees feel that they are sent for training & development regularly.
 The  employees working  in  the  PSU  are  highly motivated  due  to good  working 
environment & High salary.
 Company’s policy & superiors support highly motivates for job interest & involvement.
 The facilities provided by company like medical & educational facilities motivate  the 
employee for higher productivity.
 Employees should be sent for training & development to improve their skills & upgrade
to new technology.
 New technology should be adopted very soon to improve the efficiency of the job &
in turn motivate employees.
 Under  performers & non performers should  be  given more  responsibility & different 
roles & responsibility should  be  given to  them to make them perform well, & the 
consequence of non performance should be highlighted.
 Communication & feedback if encouraged will help to understand  employees better & 
solve their problems on time.

The study concluded that there are many factors that play into the concept of employee

motivation. The first necessary step is to determine what motivational tools will actually
be effective in each particular situation. Some tools may work for some companies, but
not for others and vice versa. It is important to note that the decisions dealing with motivation
are based upon several theories. The workers were positively affected toward
higher productivity with the provision of regular promotion, assurance of adequate job
security and bonus for excellent performance. Nevertheless monetary incentives and rewards
do not exert stronger influence on workers than any form of motivational factor.
The organization should encourage initiative and creativity by allowing for some flexibility
in application of rules and regulation. Too much rigidity in applying the rules may
constitute a setback in the modern growth of the organization and dampen
initiative and creativity. If the worker does not understand his duty, how can he perform?
Understanding his task will increase the likelihood of improving his performance eventually
lead to high productivity.

7. Shah and Pathan (2009), explores the changes in productivity with major supposition of
quantifying the relationships in terms of changes in the production caused by motivation
among workers in maintaining secrecy and security of confidential data. The study
concludes that changes in productivity as gains in profitability are significantly related to
motivation levels at all three tiers of organization structures.

8. Anka L. M. (2006), examines the essential skills needed by managers to work efficiently
and effectively in an organization. At lower level, the major need is for technical and
human skills and at higher level manager’s effectiveness depends largely on human and
conceptual skills. At top level, conceptual skill becomes important for successful
administration. These three skills play an important role in enhancing efficiency of
employees.

9. Decoene and Bruggeman (2006) in their study developed and illustrated a model of the
relationship between strategic alignment, motivation and organizational performance in a
BSC context and find that effective strategic alignment empowers and motivates working
executives. Leaders motivate people to follow a participative design of work in which
they are responsible and get it together, which make them responsible for their
performance.

10. Garg and Rastogi (2006) (Article: New model of Job Design: Motivating Employees’
performance)
 The study identifies the key issues of job design research and practice to motivate
employees’ performance and concluded that a dynamic managerial learning framework is
required to enhance employees’ performance to meet global challenges. The paper aims
to identify the key issues of job design research and practice to motivate employees'
performance. Design/methodology/approach – The conceptual model of Hackman and
Oldham's job characteristics has been adopted to motivate employees' performance.
Findings – The paper finds that a dynamic managerial learning framework is required in
order to enhance employees' performance to meet global challenges. Practical
implications – Traditional outcomes will certainly remain central to the agenda. But some
wider developments are to be incorporated within organizational systems so as to
motivate employees for better performance. Originality/value – The paper may be of
value to researchers and practitioners in the management development field for offering
enhanced jobs to employees leading to improved performance.

11. Chenhall (2005) (Article: Integrative Strategic Performance measurement systems,

strategic alignment of manufacturing, learning and strategic outcomes: an
exploratory study)
There is considerable interest in the role of strategic performance measurement systems
(SPMS), such as balanced scorecards; in assisting managers develop competitive
strategies. A distinctive feature of SPMS is that they are designed to present managers
with financial and non-financial measures covering different perspectives which, in
combination, provide a way of translating strategy into a coherent set of performance
measures. There appears to be wide variation in how these systems are configured.
However, as yet, there has been little consideration given to identifying underlying
information characteristics that might help explain how the systems have beneficial
effects. This study identifies a key dimension of SPMS, integrative information, as being
instrumental in assisting managers deliver positive strategic outcomes. Three interrelated
dimensions of integrative SPMS were identified in this study. The first, strategic and
operational linkages, was a generic factor that captures the overall extent to which the
systems provide for integration between strategy and operations, and integration across
elements of the value chain. The second attribute, customer orientation, focuses on
customer linkages and includes financial and customer measures. The third dimension,
supplier orientation, is based on linkages to suppliers and includes business process and
innovation measures. A model is developed that predicts that integrative SPMS will
enhance the strategic competitiveness of organizations. It is proposed that the influence of
integrative SPMS on strategic outcomes is indirect through the mediating roles of
alignment of manufacturing with strategy and organizational learning. Data from a survey
of 80 strategic business units provide varying support for the proposed relationships. The
establishment of operations-based targets will help the provision of strategic feedback by
allowing the evaluation of actual performance against the operations-based targets. Goal-
directed behavior and strategic feedback are expected to enhance organizational
performance.

12. Den and Verburg (2004) (Article: High Performance work syste, organizational
culture and firm effectiveness)
They found the impact of high performing work systems, also called human resource
practices, on perceptual measures of firm performance. The HRM literature emphasises
the importance of people in enhancing firm performance or even creating competitive
advantage. This study provides further evidence on the link between so‐called high
performance work systems and firm performance and relates these to organisational
 culture. In total 175 organisations from different sectors in the Netherlands participated.
Senior HR managers were questioned on HRM practices and chief executives on
organisational culture. Three different groups of personnel are distinguished in the
measures: core employees, managers and specialist professional staff. One high
performance work system could be distinguished, consisting of a combination of practices
with an emphasis on employee development, strict selection and providing an overarching
goal or direction. Results of regression analyses controlling for sector, firm size and age
show a significant impact of this system on several performance outcomes (perceived
economic outcomes, beyond contract and absenteeism), as well as positive relationships
with three organisational culture orientations. Practices that are not part of this
combination also show some positive (but limited) links with culture and outcomes.

13. Kunz and Pfaff (2002) (Article: Agency Theory, performance evaluation and the
hypothetical construct of intrinsic motivation)
The study stated no substantive reason to fear an undermining effect of extrinsic rewards
on intrinsic motivation. This study explores the ways in which information about other
individual's action affects one's own behaviour in a dictator game. The experimental
design discriminates behaviourally between three possible effects of recipient's within-
game reputation on the dictator's decision: Reputation causing indirect reciprocity, social
influence, and identification. The separation of motives is an important step in trying to
understand how impulses towards selfish or generous behavior arise. The statistical
analysis of experimental data reveals that the reputation effects have a stronger impact on
dictators' actions than the social influence and identification.

14. Malinaand Selto (2001) (Article: Communicating and Controlling Strategy: An

Empirical study of the Effectiveness of the Balanced Scorecard)
This paper reports evidence on the effectiveness of the Balanced Scorecard (BSC) as a
strategy communication and management-control device. This study first reviews
communication and management control literatures that identify attributes of effective
communication and control of strategy. Second, the study offers a model of
communication and control applicable to the BSC. The study then analyzes empirical
interview and archival data to model the use and assess the communication and control
effectiveness of the BSC. The study includes data from multiple divisions of a large,
international manufacturing company. Data are from BSC designers, administrators, and
North American managers whose divisions are objects of the BSC. The study
accumulates evidence regarding the challenges of designing and implementing the BSC
faced by even a large, well-funded company. These findings may be generalizable to
other companies adopting or considering adopting the BSC as a strategic and
management control device. Data indicate that this specific BSC, as designed and
implemented, is an effective device for controlling corporate strategy. Results also
indicate disagreement and tension between top and middle management regarding the
appropriateness of specific aspects of the BSC as a communication, control and
evaluation mechanism. Specific results include evidence of causal relations between
effective management control, motivation, strategic alignment and beneficial effects of
the BSC. These beneficial effects include changes in processes and improvements in both
the BSC and customer-oriented services. In contrast, ineffective communication and
management control cause poor motivation and conflict over the use of the BSC as an
evaluation device. So, in short it conducted a case study in one corporate setting by using
 balance score card (BSC) method and found out that organizational outcomes would be
greater if employees are provided with positive motivation.

15. A Shmos and Duchon (2000) (Article: Workplace Spirituality in Indian

Organisations: Construction of Reliable and Valid Measurement Scale)
The study recognizes that employees have both a mind and a spirit and seek to find
meaning and purpose in their work, and an aspiration to be part of a community, hence
making their jobs worthwhile and motivating them to do at a high level with a view to
personal and social development. The purpose of the paper was to develop and validate a
comprehensive tool for measuring workplace spirituality. On the basis of literature,
feedback from academic and industry professionals, a heuristic framework along with a
scale on workplace spirituality was proposed and a questionnaire was developed. The
instrument obtained empirical views from experts on its dimensions and statements.
Content validity ratio (CVR) of the instrument was carried out and the retained items
were taken for field survey. Three hundred and sixty one executive respondents employed
in manufacturing and service organisations in Indian subcontinent responded to the 44
items scale assessing different facets of spirituality at workplace. This helped to validate
the factors of workplace spirituality and optimize the contents of the proposed instrument
with the help of structural equation modelling. Exploratory factor analysis revealed four
distinct factors that constitute the new instrument of workplace spirituality: spiritual
orientation, compassion, meaningful work, and alignment of values. Reliability analysis
reported high level of internal consistency of the total scale (α = .78) and the five sub
scales (α’s ranging from .75 to .87). Finally, 30 items were retained with four important
factors of Workplace Spirituality Scale.