Role of employee
motivation on employee’s commitment in the context of banking sector
Introduction
In this era of globalization and competition
motivation is considered to be the key factors for success and excellence of
organizations. Organizations are facing many fluctuations and pressures in
today's world in order to carry on organizational life. They have taken
employee commitment into their development processes and with understanding the
effective changes that will give them desired results.
Commitment: Beckeri, Randal, and Riegel (1995) defined the employee
commitment in the three dimensions: the 1st one is a strong goal to
remain a member of a particular organization; the 2 nd one is a
willingness to utilize high levels of struggles on behalf of the organization;
and the 3rd one is a describe belief in and appropriateness of the
values and goals organization. Sajid (2016) quoted that organizational
commitment generally refers to the following, “It is the general experience of
employees with their institution in order to understand organizational goals as
well as objectives”.
Management should
understand the importance of job involvement because it is most important and
essential component of work behavior among the workforce as prior research
proved this phenomenon (Manojlovich, Laschinger & Heather, 2002; Soong,
2000). It was highlighted that by giving employees power over their work
content i.e. decision regarding swiftness of work, quality of product and job-related
abilities and resources can motivate the employees to enhance their job
involvement.
Also, there must be
consideration: demographic factors which are age, gender, marital status,
education level and work experience must find to be considerably related to
organizational commitment (Mannheim et. al 1997).
Pınar Güngör (2011) says “Motivation is the
competency or capability of a person to change behavior”.Motivation is a driven
force that leads and directed a person toward some specific goals. Employee
commitment can improve the performance of an organization but some time it is
not delivering the benefit in many cases like when organization not given them
the incentives and involve them in their jobs. That gap is fulfilled when
organization characterize employee work-place climate and trust between
colleagues (Care,2007). Meaning of job involvement, motivation and employee
commitment is clear. The consequences of work will be affected when employees
are motivated and committed (Lawler,1986). The more motivated employees are
typically placed additional exertions because they are more committed and
involve in their jobs (Blau, 1986; Blau & Boal, 1987).
(Iqbal et al, 2013) determined that there are the two
determinants of Motivation which are job involvement and Incentives as
illustrated in Figure 1.0
Figure 1.0: Two determinants of Motivation
(Iqbal et al 2013)
Job Involvement: Alliger and Stone-Romero (1994) defined the
job involvement as ‘‘The degree to which one is cognitively preoccupied with,
engaged in, and concerned with one’s present job’’ Reitz and Jewell
(1979) believed that the meaning of work in person’s predictable or day-to-day
existence is called as job involvement. That shows if an individual contributes
his attention towards his or her work efficiently then that person is become
trustworthy with his or her association.
Incentives: The National Commission of Labor defines
incentive as follows: ‘wage incentives are extra financial motivation. They are
designed to stimulate human effort by rewarding the person, over and above the
time rated remuneration, for improvements in the present and targeted results.
Additional amount other than the work which a worker does is known as
incentives: Different banks are offered different incentives
systems(Iqbal et al, 2013).
1. 1. Performance system definite objectives are allocating in the beginning of year checked periodical when employees are expressed where they stand and in what way they can develop themselves
2. 2. Career
planning is a fundamental incentive, for this determination different options,
workshops are planned and the bank also stand for educational expenditures of
employees if they have lack of education. When workers get more education, they
are encouraged according to their innovative knowledge.
3. 3. Job rotation is a different incentive system
offered at banks. It not only rises the talent and awareness of the employees
but also not to make them lazy.
4. 4.Certain insurance programs are also providing
to employees like lifetime insurance, health insurance. Loans on informal
payments are providing to employees for the car, home etc.
5. 5.The bank offers regular bonuses, that differs
permitting to the productivity of the bank and other two
6. 6.Certain
rewards are agreed on the performance of supervise these are economic as well
as non-monetary payments like diplomas, cell phones, small donations, feast
with officers etc.
The implications of Maslow’s Hierarchy of
needs: An incentive program should be directed at a person's psychological
income needs. Money can be inexplicable because it may drive to financial
needs. Select prizes that are exceptional and applicable to the sponsor, so they
may increase physical evidence of their success and achieve their requirement
for recognition, acknowledgement and individual or self-esteem.
The results of research
conducted Wasito (2014) explains the influence of material incentives on
motivation has a significant influence, where the higher the incentive given
the company, the higher the motivation of his work. Material incentives are one
of the company's financial compensations beyond the basic salary that employees
receive on their performance. The Company believes that the system of
compensation in general and the material incentive system, in particular,
affects the motivation of employees in doing their work.
The research “Role of Employee Motivation on Employee’s
Commitment in the Context of Banking Sector of D.G. KHAN, Pakistan” emphases
on the relationship between Motivation and employee’s Commitment. The attained
results show the direct relation exist between Motivation and employee’s
Commitment and motivation have two determinants job involvement and incentives
both shows the direct and positive correlation with one another.
The study can provide advantage banks (both
public and private) for improving their employee’s motivation level through
incentives and job involvement. Divisional banks can use the motivation as
their key element to improve the performance of their employees.
Human resource
managers and organizational development practitioners should focus on the culture,
design and environmental factors which foster the job involvement of the
employees.
This study will also be useful for the HR
practitioners because motivation and employee’s commitment are the functions of
HR management. The citizens of any country who are interested to implement the
motivation this study can also be beneficial for them. Finally, the study will
help other researchers who might want to start research in the area of
employee’s commitment and motivation.
Becker, TE, Randal, DM and Riegel, CD 1995, "The multidimensional view of commitment and theory of reasoned action: A comparative evaluation.” Journal of Management, vol. 21, No 4, pp. 617-638.
Blau, GJBKB 1987, "Conceptualizing how job involvement and organizational commitment affect." Academy of Management Review, 12(2): 288-300.
Faisal, A 2017, The Impact of Employee Motivation on Organizational Commitmen European Journal of Business and Management.
Nadeem, I, Naveed, A, Muhammad, M, Muhammad, N, Komal, J, Afsheen, Z and Muhammad, A 2013, “Role of Employee Motivation on Employee’s Commitment in the Context of Banking Sector of D.G. KHAN, Pakistan”, Journal of Human Resource Management, Vol. 1, No. 1, pp. 1-8.
Reitz, HJ & Jewell, LN 1979,"Sex, locus of control, and job involvement a six-country investigation."Academy of Management Journal, 22(1): 72-88.
Wasito, E 2014, The effect of material incentives on work motivation and employee performance of STIE Ekuitas Bandung.
Janaka , I agree with your declarations . While monetary incentive programmes are not stated as creative as some other ideas ,it suits many employees.Some reasons that companies give monetary incentives are for recognition of employee milestones. Moreover higher wages and holiday bonuses are also some popular incentive initiatives.
ReplyDeleteIncentive pay, based on the quantity of work delivered rather than on the time spent on the job, is particularly beneficial for increasing worker productivity. Merit and hard work must be rewarded adequately. Rewards based on personal influences demoralize the workforce. Include both non-financial and financial mechanisms for rewarding employees’ performance and contributions. Promotions and lateral moves may be long term rewards that recognize employees’ professional growth, expertise, and capacity to contribute to the institution in new roles (Muluka 2014).
DeleteEmployees have shown that monetary rewards (i.e. Good Wages) were the preferred factor for motivation in banking and sales environments(Jenica, 2007). In 1980, 1986, 1992, 2000 and 2015 studies were conducted in employee motivation. Employees ranked monetary reward at first place, followed by job security and promotion.
ReplyDeleteReward and recognition directly affect the performance of employees. Organizations should implement promotion, bonus, increment and appreciation method to retain high performance employees (Ali and ahmed, 2009).
DeleteMotivational factors such as fair wages and promotion, health and other services, work environment, job specification, prestige and request, management policies and style, non-cash benefits, sports and finally setting and defining goals play a significant role in employee commitment in banking sector (Ahmad et. al, 2014).
ReplyDeleteRecognition help employees to feel valued, it boost desire for more recognition and built loyalty (Crampton, 2016).
DeleteMotivation has been one of those fields since the 1930s that has gained a lot of attention from organizational psychologists and many academics. Nevertheless, a comprehensive understanding of motivation has been seen as a challenging task (Locke and Latham, 2004). This research work is therefore aimed at identifying what motivates Bank of Kathmandu workers by applying the notion of established theories.
ReplyDeleteThank You, to find the right reward for each performance level, the performance management system, compensation & benefits and personnel development should go hand in hand and all together support the overall business strategy. Performance management should comprise at least the following components: goal setting, performance evaluation, performance appreciation and development measures (Kuba, 2011)
DeleteStrong bonds can encourage the development of a more positive work environment, this enhances productivity and the overall well-being within the company, to benefit both business and the employees. Team bonding activities should take place outside of working hours in an informal setting. Encouraging team bonding will increase employee commitment and loyalty (Helen Sabell,2016).
ReplyDeleteThank you, But in reality You cannot have only the high performers in an organization. You hire people to perform certain function in the organization after thoroughly evaluating their back ground. You always have a mix in your team for specific roles. Those who are not performing upto a certain level, need training, opportunity, motivation, skill improvement and an enabling environment. With respect to rewarding, pay is the reward and they should be treated with empathy (Riaz, 2017).
DeleteWell. I agree with you on having the right mix to perform certain function in the organization. However, my comment was on building strong bonding within the right mix, not have only the high performers in an organization. Hope this clarifies.
DeleteAccording to Hoffman-Miller (2013), job satisfaction is the extent to which an employee is happy with their job roles, resulting in the willingness to perform at a top- notch level (Wakida and Lawther, 2014). Armstrong (2014) posits, that an employee’s job satisfaction level is visible from their attitude towards the work. Highly satisfied employees have a positive and favorable attitude towards their job role while those unsatisfied have a negative attitude (Abdallah et al., 2017). Schermerhorn, J (2008) model for Integrated relationship of Motivation to Job satisfaction and Commitment clearly manifest the complimentary roles of each component. It is evident that Motivation plays a key role when it comes to enhancing performance and job satisfaction in any organization. An appropriate Leadership’s contribution is imperial to cultivate motivation as depicted in the diagram by Schermerhorn, J (2008).
ReplyDeleteThank You, Culture is the character and personality of your organization. It's what makes your business unique and is the sum of its values, traditions, beliefs, interactions, behaviors, and attitudes. Positive workplace culture attracts talent, drives engagement, impacts happiness and satisfaction, and affects performance. The personality of your business is influenced by everything. Leadership, management, workplace practices, policies, people, and more impact culture significantly (Reddi, 2016). Same is applicable to bankt industry as well.
DeleteAdding to that motivation is a main factor that drives productivity and performance and a motivated employee will have the desire to achieve a certain performance level, leading to goal-directed behavior and a role model to subordinates (Mitchell 1982). To motivate employees, the organization leaders must focus on identifying the drives and necessities of the employee seeking to satisfy in terms of personal and working environment. The core factor, which will inspire employees to, to achieve corporate goals, provide better service, innovation, or to increases productivity is to keep the subordinates happy and motivated and it will boost the company performance in overall aspects (Varma 2017).
ReplyDeleteMotivation is the word used to discuss the intention why people work and explain how individuals direct their effort over time to achieving a shared, structural objective (Darrington and Howell, 2011).
DeleteEmployee commitment can improve the performance of an organization but some time it is not delivering the benefit in many cases like when organization not given them the incentives and involve them in their jobs. That gap is fulfilled when organization characterize employee work-place climate and trust between colleagues (Care 2007).
ReplyDeleteIn a research it was observed that the satisfied employees show higher level of motivation and commitment ultimately positive impact on the performance and behavior of employees reflected
Deletein their productivity. Today’s business environment is such that more or less most of the resource are available and could be acquired but the talented human resource is not easily available and if found takes time to develop and effectively perform for which human resource management activities play a critically important role in developing such employee base and optimal
utilization. It is the key factor to create a competitive edge (Chen et al, 2012).
According to Herzberg, the factors leading to job satisfaction are separate and distinct from those that lead to job dissatisfaction. Therefore, managers who seek to eliminate factors that create job dissatisfaction can bring about peace, but not necessarily motivation. They will be placating their workforce rather than motivation them (Robbins, 1993). Kreitner & Kinicki (1998) highlight one of Herzberg’s findings, where managers rather than giving employees additional tasks of similar difficulty (horizontal loading), “vertical loading” consists of giving workers more responsibility. This is where employees take on tasks normally performed by their supervisors. Herzberg (1968) in his article “One More Time: How do You Motivate Employees” advised to follow seven principles when vertically loading jobs.
ReplyDelete